India is seen by UK CFOs as the third most popular destination for market entry or increased investment, according to the 2012 Global Ambitions report from accountancy and business advisory firm BDO Southampton. Almost a quarter (24%) of UK CFOs are planning to increase their existing investment into India and one in ten is planning to enter the Indian market for the first time next year.
However, UK CFOs have admitted there are risks involved in expanding into India for which they need to prepare. The Global Ambitions report reveals they are concerned about finding the right local management and staff (36%), corruption or ethics (35%), cultural or language barriers (32%) and red tape (30%). To help firms considering expansion into India to navigate through these challenges, BDO LLP – the UK member firm of BDO’s international network, the largest international accounting organisation focused on the mid-market – has launched a new alliance with one of India’s leading turnkey market entry specialist, Sannam S4.
The alliance will provide a comprehensive support service to help companies explore expansion and investment opportunities and establish their businesses in India. A team of experts in India will provide on-the-ground support to UK businesses from Sannam S4’s key support centres (including New Delhi, Mumbai, Bangalore and Chennai) and BDO India’s ten offices, whilst also benefitting from the support available through BDO’s 14 regional UK-based offices.
India has complex tax and regulatory frameworks, high levels of government regulation, distinct cultural norms and diverse regional differences. While Sannam S4 has built a thriving business supporting UK companies of all sizes from a multitude of sectors entering the complex Indian marketplace, the alliance with BDO raises the stakes yet further.
Delhi-based CEO and founder of Sannam S4, Adrian Mutton, said: “Today’s business environment means many companies must become global businesses. India’s economy is still growing at a rapid rate and the opportunities for overseas companies here are vast. This alliance will broaden the portfolio of services available and help UK companies deal with the multitude of local compliance requirements, labour laws and differences in cultural communication.”
Kim Hayward, International Liaison Partner, BDO LLP, Southampton, added: “After talking to many UK companies who have struggled to expand into India, we can see that there is a major need to help them get established faster, more effectively and therefore more profitably. There are many factors driving India’s appeal, including market size, access to new customers, higher growth rates and lower labour rates. Our Global Ambitions survey shows that CFOs from Saudi Arabia, France, the Netherlands and China are all planning to enter the Indian market, so UK firms can’t afford to get left behind.”
Arbinder Chatwal, Head of India Advisory Services, BDO LLP, Southampton, commented: “Our alliance with Sannam S4 will help businesses throughout the various stages of their journey in India and frees them to focus on doing what they do best: building their business. Indian CFOs have told us that UK businesses need to do thorough research to improve their knowledge of the market, political systems and regulatory differences; we can help them with this.”
Services offered by the alliance include:
· A unique LaunchPad™ business incubation platform to establish new entrants in the market
· Market research/business case validation from sector experts
· Distributor and partner search, selection and due diligence
· Local business clinics in the UK which deal with real business issues in India
· Company structuring and the incorporation of a local subsidiary
· Staff recruitment and HR advisory
· The provision of serviced offices
· Payroll, expense management, bookkeeping, accounting
· Corporate finance and M&A advisory services
· Taxation and audit compliance
· Business planning
· Expatriate management
· Ongoing support and advice from Indian specialists
The alliance will host regular, regional and sector-specific workshops across the UK to provide detailed practical advice and guidance on India market entry, as well as addressing any challenges UK companies already established in India are facing.