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Doing business with India: Dos and Donts 5 replies,2311 views

#1

Good day,

I am a director with a company called QED Partners - a company that helps companies transact business with India (right from acquisitions, setting up JVs, 100% subsidiary or to make India a sourcing hub). Our objective is simple - use our networks to ensure long term success for our clients.

Having done this work for sometime now, I thought it would be a good idea to share with you the top 5 things that I always tell my international clients to follow while doing business in India, through us or directly:

1. Due Diligence, Due Diligence, Due Diligence: Nothing comes above this. Please ensure that the people you are talking to are credible, have the right level of finances, the capabilities, certification and the type of products you want before you start discussing price.

2. Engage a local partner of repute: With 22 established languages, over 3000 dialects - and many many different ways of doing business - its best not to try and learn the best way of doing business with your particular partner. Indians know Indians best - and can deal with them across geography, language and cultures. There are companies which can help you source - use them.

3. Hire reputable local advisory firms: Dont think that your international advisor will be able to help you with your legal elements in India.. even if they can, its best not take the chance in business. There are neumerous reputable law and Chartered accounting firms - use their services to draft agreements etc.

4. Build the base - before looking at the fruit: Clients come to me regularly asking us to sort out a mess that they have gotten into with some local partner because they approached them through a 'B2B website' / 'Advertisement' / 'Word of mouth' and now they are in a bit of a soup. Almost 75% of business collaborations that I have seen fail due to this lackadisical approach. Please put in some time before you start business dealings / ask your local partner to give you a proper DD report before you start doing any business. Take some time - understand them. Iron out the finer points, visit them, meet them, quality test their products.. do what it takes to build the base. Once the base is strong - the tree WILL yeild good fruits.

5. Follow a process: We often find our clients jumping to price discussions with their potential partners. PLEASE dont do that. Pricing discussions are a stage in a long drawn out sourcing project. Please follow the process. a. Lay down the ground rules of what you want in your partner>> b. Shortlist companies based on the criteria >> c. Conduct on the ground due diligence on the partners >> d. Shortlist potential partners >> e. Enter discussions around possibilities >>. f. Discuss pricing.

Hope this helps in your ventures. Please feel free to ask for more information should you so desire.

regards,

Mrigank Tripathi

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#2
Re: Doing business with India: Dos and Donts
Thank you
Quoting from [Mrigank]:

Good day,

I am a director with a company called QED Partners - a company that helps companies transact business with India (right from acquisitions, setting up JVs, 100% subsidiary or to make India a sourcing hub). Our objective is simple - use our networks to ensure long term success for our clients.

Having done this work for sometime now, I thought it would be a good idea to share with you the top 5 things that I always tell my international clients to follow while doing business in India, through us or directly:

1. Due Diligence, Due Diligence, Due Diligence: Nothing comes above this. Please ensure that the people you are talking to are credible, have the right level of finances, the capabilities, certification and the type of products you want before you start discussing price.

2. Engage a local partner of repute: With 22 established languages, over 3000 dialects - and many many different ways of doing business - its best not to try and learn the best way of doing business with your particular partner. Indians know Indians best - and can deal with them across geography, language and cultures. There are companies which can help you source - use them.

3. Hire reputable local advisory firms: Dont think that your international advisor will be able to help you with your legal elements in India.. even if they can, its best not take the chance in business. There are neumerous reputable law and Chartered accounting firms - use their services to draft agreements etc.

4. Build the base - before looking at the fruit: Clients come to me regularly asking us to sort out a mess that they have gotten into with some local partner because they approached them through a 'B2B website' / 'Advertisement' / 'Word of mouth' and now they are in a bit of a soup. Almost 75% of business collaborations that I have seen fail due to this lackadisical approach. Please put in some time before you start business dealings / ask your local partner to give you a proper DD report before you start doing any business. Take some time - understand them. Iron out the finer points, visit them, meet them, quality test their products.. do what it takes to build the base. Once the base is strong - the tree WILL yeild good fruits.

5. Follow a process: We often find our clients jumping to price discussions with their potential partners. PLEASE dont do that. Pricing discussions are a stage in a long drawn out sourcing project. Please follow the process. a. Lay down the ground rules of what you want in your partner>> b. Shortlist companies based on the criteria >> c. Conduct on the ground due diligence on the partners >> d. Shortlist potential partners >> e. Enter discussions around possibilities >>. f. Discuss pricing.

Hope this helps in your ventures. Please feel free to ask for more information should you so desire.

regards,

Mrigank Tripathi


Thank you your information has helped me a lot and I will now know for the future.

I recently purchased a large quantity of baby prams from Indonesia contact was great until I handed over the money via T/T.I have not heard from the company for 6 days they are not replying e-mails and not answering the phone.

This is very hard for me as I am a stay at home Mum of 2 and I was trying to start a small business putting everything I had and more in to it.

I am now stuck and do not know where to go from here and I’m finding it hard to get information from Indonesia here in Australia.

nicole

#3
Re: Re: Doing business with India: Dos and Donts
Quoting from [Nick AUS]:


Thank you

Sorry to hear that. Send me some details about the company etc - and let me see if I can help. Though I work in India - not Indonesia, let me see if there are any partners I can tap into.

Mrigank

#4
Re: Doing business with India: Dos and Donts
Quoting from [Mrigank]:

Good day,

I am a director with a company called QED Partners - a company that helps companies transact business with India (right from acquisitions, setting up JVs, 100% subsidiary or to make India a sourcing hub). Our objective is simple - use our networks to ensure long term success for our clients.

Having done this work for sometime now, I thought it would be a good idea to share with you the top 5 things that I always tell my international clients to follow while doing business in India, through us or directly:

1. Due Diligence, Due Diligence, Due Diligence: Nothing comes above this. Please ensure that the people you are talking to are credible, have the right level of finances, the capabilities, certification and the type of products you want before you start discussing price.

2. Engage a local partner of repute: With 22 established languages, over 3000 dialects - and many many different ways of doing business - its best not to try and learn the best way of doing business with your particular partner. Indians know Indians best - and can deal with them across geography, language and cultures. There are companies which can help you source - use them.

3. Hire reputable local advisory firms: Dont think that your international advisor will be able to help you with your legal elements in India.. even if they can, its best not take the chance in business. There are neumerous reputable law and Chartered accounting firms - use their services to draft agreements etc.

4. Build the base - before looking at the fruit: Clients come to me regularly asking us to sort out a mess that they have gotten into with some local partner because they approached them through a 'B2B website' / 'Advertisement' / 'Word of mouth' and now they are in a bit of a soup. Almost 75% of business collaborations that I have seen fail due to this lackadisical approach. Please put in some time before you start business dealings / ask your local partner to give you a proper DD report before you start doing any business. Take some time - understand them. Iron out the finer points, visit them, meet them, quality test their products.. do what it takes to build the base. Once the base is strong - the tree WILL yeild good fruits.

5. Follow a process: We often find our clients jumping to price discussions with their potential partners. PLEASE dont do that. Pricing discussions are a stage in a long drawn out sourcing project. Please follow the process. a. Lay down the ground rules of what you want in your partner>> b. Shortlist companies based on the criteria >> c. Conduct on the ground due diligence on the partners >> d. Shortlist potential partners >> e. Enter discussions around possibilities >>. f. Discuss pricing.

Hope this helps in your ventures. Please feel free to ask for more information should you so desire.

regards,

Mrigank Tripathi



The article is worth reading. Go ahead and post more thoughts on the same.
#5
Re: Re: Doing business with India: Dos and Donts

The article is worth reading. [em19]

#6
Re: Re: Doing business with India: Dos and Donts

The article is worth reading. [em19]

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