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					                 India: Bird of Gold or Fool’s Gold
                 Tips on How to Profit from India

                               Gunjan Bagla
                             “The India Expert”
                          Managing Director, Amritt
                              www.amritt.com


© Amritt Ventures, 2007
                          About Amritt
                           • Experts in Globalization
                              – Advisors/management
                                consultants
                           • Our Clients are
                             Global 2000 companies
                              – Also selected
                                emerging companies
                           • Helps American companies to profit from India
                           • Market Access
                              – market evaluation, distribution planning, partner
                                identification selection, sales calls, hiring
                           • Sourcing of Services and Manufactured Products
                              – R&D, High Tech, much more
                           • Teach seminars on Doing Business in India
                           • Cross-Border M&A
                                              PROPRIETARY & CONFIDENTIAL
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© Amritt Ventures, 2007
                          “The Bird of Gold”

                          • Name for India in ancient times.
                             – The Golden Bird enabled the seafaring merchant
                               of the first millennium to take on wings of wealth
                               and fly to untold heights in his community.
                          • Magnet for traders, entrepreneurs and more
                             –   Alexander the Great to Christopher Columbus
                             –   To East India Co. (the world’s most powerful corp.)
                             –   Yale University, started with India money
                             –   Ice Exports from Boston to Calcutta
                          • India controlled 20% of the world’s GDP
                            ~1700.

                                           PROPRIETARY & CONFIDENTIAL                  3
© Amritt Ventures, 2007
                          “Fools Gold”


                          • A name for the mineral, Ferrous Sulphide
                            – which has a distinct golden hue and was mistaken
                              by novice miners to be gold.
                            – also known as Iron Pyrites


                          • A metaphor for pursuits which are far less
                            valuable than they seem to be at first,
                            – and are influenced by the gullibility of the seeker.




                                         PROPRIETARY & CONFIDENTIAL                  4
© Amritt Ventures, 2007
                          India: Fourth Largest Economy

                          • GDP crossed $1 trillion in 2007
                          • Only USA, Japan and China are bigger
                            – By Purchasing Power Parity
                          • Economic Growth at ~8 percent in 2010
                          • Top 15 trading partner to the USA in 2010
                            – Amritt prediction: will rise to Top 10 by 2014
                          • India companies invest in America
                            – Hindalco: Novelis (Alcan) - $5.9 bn
                            – Essar Steel: MN Steel ($1.6 bn), Trinity Coal ($0.6 bn)




                                          PROPRIETARY & CONFIDENTIAL                    5
© Amritt Ventures, 2007
                          India’s incomes will accelerate




                                            (Derived from Morgan Stanley report “India and China: New Tigers of Asia, Part
                                            II)”
                                       PROPRIETARY & CONFIDENTIAL
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© Amritt Ventures, 2007
                          Indians love the U.S.A.




                                      PROPRIETARY & CONFIDENTIAL
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© Amritt Ventures, 2007
                          Consumer Sales


                          • Fool’s Gold!
                             – 1 bn consumers (but 700 million earn $2/day)
                             – 52 billionaires in 2010, up from 24 in 2009
                             – 300 million middle class, not really
                                • No white picket fences, no Chevy Malibu!
                          • Birds of Gold
                             –   Whirlpool USA washing machines lead Haier
                             –   California-grown Pistachios, Paramount Farms
                             –   Levi Strauss and their Spykar brand
                             –   Ford Motor trebles sales with Figo launch

                                           PROPRIETARY & CONFIDENTIAL           8
© Amritt Ventures, 2007
                          Business Sales

                          • Fallacies
                            –   Do they have enough money?
                            –   Why are they pushing back so hard on price?
                            –   “They don’t understand how we do business!”
                            –   “They are not as mature as us”
                          • Birds of Gold
                            – Boeing (Civil)sales to India exceed $15 bn
                            – General Electric revenue >$3 bn, IBM >$1 bn
                            – Warburg Pincus profits $1 billion in Airtel stock sale
                          • Some Keys to Success
                            – Product Configuration, Pay as you go, Onsite
                              service.
                                          PROPRIETARY & CONFIDENTIAL                   9
© Amritt Ventures, 2007
                          Selling to Govt. Entities

                          • Fool’s Gold?
                             – Nuclear energy to go from 4GWe to 30GWe
                                • “$150 billion, 250,000 US jobs??
                             – Defense expansion of $50 billion and more
                             – $1 trillion in infrastructure (roads, airports, water, power)
                          • Bird of Gold
                             – Hercules C130J , $1 billion order, more in the works
                             – P8i Orion, $2.1 billion, India is the first customer
                          • Some keys to success
                             – Patience (90 day targets not productive)
                             – Persistence (Israel success story)
                             – Respect for the Indian way
                                            PROPRIETARY & CONFIDENTIAL                         10
© Amritt Ventures, 2007
                          How to Succeed in India

                          • Forget what you learned in China
                             – Noisy democracy, free press, floating currency
                             – Free capital flow, no censorship of US media
                          • Be ready for confusion and ambiguity
                             – India is diverse, complex, there is no “one answer”
                          • Don’t venture without expert third-party help
                             – Indian American employees may not be sufficient
                             – Nor are Indian American community members
                          • Much of India is changing, fast
                             – But much of it is still in 19th Century


                                           PROPRIETARY & CONFIDENTIAL                11
© Amritt Ventures, 2007
                          Take-Away

                          • There is a bird of gold for you in India today
                          • BUT, if you are not careful
                             – All you may find is bird droppings
                          • Success or failure is dependent upon you,
                             – more than upon India.




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© Amritt Ventures, 2007
                          Contact Information
                                          Gunjan Bagla
                                          Amritt, Inc.
                                          usa@amritt.com
                                          (562) 402 4435
                                          http://www.amritt.com
                          •   Send email to request email newsletter
                               – “Globalization is Great”
                          •   Register on amritt.com .
                               – Download white papers on Selling to India, Apollo Hospitals,,
                                 Outsourcing, Global Collaboration
                          •   Contact us for
                               – customized advice and execution on business with India
                               – private one-day executive seminars, help with hiring and more

                                                   PROPRIETARY & CONFIDENTIAL
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© Amritt Ventures, 2007

				
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posted:4/28/2010
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