1. Information contained within this package is proprietary and confidential Marvin Hough, Telfer School of Management Montreal - Oct 25, 2012 Assessing Your Company’s Readiness for India

2. Information contained within this package is proprietary and confidential My Experience B. Comm – MBA – University of Alberta AIESEC Traineeships – Denmark, Belgium EDC Career – 30 years – Assignments in Credits Insurance, Financing, Risk Analysis, National Business Development and International Business Development - Business Development in Canada - Ottawa, Toronto and Vancouver - International Business Development assignments: India ( DFAIT assignment), China –( establishment of EDC’s first representation ) Mexico ( EDC Chief Rep) Regional Vice President, IBD for both Asia Pacific and Latin America Telfer School of Management – 2008 - Present EMBA/Undergrad Teaching and EMBA International Consulting Trips ( China, South Africa, Brazil) Executive Programs – India Forum, Focus India Program

3. Information contained within this package is proprietary and confidential Source: Goldman Sachs Economic Paper # 99; BCG analysis Bubble size corresponds to GDP size GDP USD trillion GDP per capita 000 USD Japan UK Germany Italy France Brazil Russia US 2002 GDP USD trillion GDP per capita 000 USD US Japan China India UK Germany Italy France Brazil Russia 2050 Slide Source: Alan Rosling of Tata Sons India’s Growth on the World Stage China India

4. Information contained within this package is proprietary and confidential As a partner in the global knowledge economy  Indian objective to obtain access to proprietary S&T As a collaborator in infrastructure development  Indian objective to invest heavily in domestic infrastructure investment over the next 10 years As a market for Canadian commodities & value added products and services  Indian objective to obtain long-term access to natural resources and energy security As an investor and receiver of investment As an outsourcing center and link to global supply chains Canada Needs to Focus on India

5. Information contained within this package is proprietary and confidential Achieve the signing of the Comprehensive Economic Partnership Agreement Increase bilateral trade to $ 15 billion within 5 years Increase investment flows, focusing on Infrastructure and Capital Projects, Science and Technology, Energy and Education Make Canada an attractive trading partner and establish a “ Canada Brand” Double Indian students in Canada within 5 years Continue to promote Canada as a science and technology partner Expand multilateral engagement with India in forums such as the WTO and G 20 Canadas Trade Strategy for India

6. Information contained within this package is proprietary and confidential Canada – India Bilateral Trade Most Promising Business Sectors: – Agriculture, Food and Beverages – Service Industries and Capital Projects – Information and Communication Technology (ICT) – Oil and Gas Equipment and Services – Electric Power Equipment and Services – Aerospace and Defence Source: Global Commerce Strategy and DFAIT Office of the Chief Economist, based on statistics from Statistics Canada

7. Information contained within this package is proprietary and confidential Indian Business Environment Accelerators English language Liberalization and market reforms Strong private sector Intellectual Power and Innovation  Cost-competitiveness of labor for services  Cost of operations  Common law legal system  Developed banking sector & capital markets  Offshore outsourcing center  Increasingly attractive foreign investment destination  Increased integration into the global economy Decelerators Inadequate Infrastructure Distance to market Knowledge barriers Price sensitivity – buyer’s market Up-front cost to develop relationships Red tape ( India ranks 122 out of 181 countries in ease of doing business) Onerous labour regulation Bureaucracy and corruption in public sector High tariffs, non-tariff barriers, custom processing delays Tax rates and regulations Security Issues * As per Price Water House Coopers (2003)

8. Information contained within this package is proprietary and confidential India - What are the challenges?

9. Information contained within this package is proprietary and confidential Time as rigid and exact Focused, concentration on Task Sequence talking, turn taking Achieved Status Earned Accomplishment Shared Authority Consultation and Teamwork Tradition is interesting Time as soft and elastic Subject to distractions, interruptions Overlap talk Ascribed Status Special privilege Clear Authority figures Direction and Relationships Tradition is critical and valued Business Culture

10. Information contained within this package is proprietary and confidential 10 World Bank Report Sub-national Doing Business in India Report 2009 7 topics measured in India: Starting a business Dealing with construction permits Registering property Enforcing contracts Trading across borders Paying taxes Closing a business Data were collected with the help of 280 private sector contributors and 230 public sector officials

11. Information contained within this package is proprietary and confidential Rank City, State 1Ludhiana, Punjab (easiest)10Mumbai, Maharashtra 2Hyderabad, Andhra Pradesh11Indore, Madhya Pradesh 3Bhubaneshwar, Orissa12Noida, Uttar Pradesh 4Gurgaon, Haryana13Bengaluru, Karnataka 5Ahmedabad, Gujarat14Patna, Bihar 6New Delhi, Delhi15Chennai, Tamil Nadu 7Jaipur, Rajasthan16Kochi, Kerala 8Guwahati, Assam17Kolkata, West Bengal 9Ranchi, Jharkhand Source : Doing Business database. 11 Doing Business in India – Where is it easiest?

12. Information contained within this package is proprietary and confidential The Need for Innovative Thinking $2500.00 $35.00

13. Information contained within this package is proprietary and confidential Top 10 - Considerations for Doing Business in India 1.Local presence is very important - To help you through the challenges including getting through the significant number of government permits and licenses – even now after liberalization. 2.A strong relationship network is key – Relationships are important to verify information, understand government policies, identify tomorrow’s opportunities, resolve issues 3.Timelines – Understand that things just take longer to transact even if approvals are in place. Indians act on their own time schedule. 4.Scope of the market – The sheer size and enormity of India’s social challenges should not deter you. 5.Willingness to provide technology and knowledge transfer will increase your attractiveness as a business partner.

14. Information contained within this package is proprietary and confidential Top 10 - Considerations for Doing Business in India 6. Important to be mindful of local sensitivities (e.g. religion, caste, and Indian pride - Indians do not like to be spoken down to by the West) 7. Power/Infrastructure bottlenecks – Pay special attention to ensuring that you have reliable sources of power and back-up plans 8. Corruption remains an issue that can slow down approval processes 9. Labor issues can be a serious challenge 10. Competition is already tough – Remember that India has a very competitive offering including from domestic suppliers in most sectors of the economy

15. Information contained within this package is proprietary and confidential Tactics - Doing Business in India Focus on Indian culture and draw on cultural training and the Indo-Canadian community in Canada. Realize that in Indian culture face to face meetings are crucial in developing long term business relationships and trust. No decision can be more important than the selection of your local partner(s)/agent(s) – due diligence is critical – make sure claims are checked out. Don’t assume that one agent can be effective on a national basis. Western concepts and off-the-shelf solutions do not work in India, targeted and client specific proposals and solutions do. Be particularly mindful of pricing considerations and realize that Indians are very price conscious – know what your competitors are offering and their approach to pricing Doing business with the public and private sectors need different approaches. Developing a proposal for the public sector requires careful consideration of specifications, local content requirements, the approval process etc. Multi-point lobbying often required

16. Information contained within this package is proprietary and confidential Tactics - Doing Business in India Show the commitment of your CEO to India, the proposal and your counterpart and realize that the decision making process is usually very hierarchical Prepare your proposal to meet local challenges and marketing needs. Price, quality and the overall advantages of your product over the present products in the markets should be part of your project proposal. Leverage relationships of others including Canadian agencies and associations, Indo-Canadian community – eg EDC relationships Training and Transfer of Technology will be important parts of a business proposal and should be carefully considered and appropriately highlighted. Be mindful of the potential to work with your buyer or partner on other projects and that “relationships” are broader than transactions.

17. Information contained within this package is proprietary and confidential Negotiation People may tell you what you want to hear. Don’t assume a smiling face means acceptance. Stress your common aims Indians are inclined to say yes to anything ( It’s up to you to figure out if they can actually deliver on their promises) The most senior person will make the decisions. If he is not at the meeting, you are at the early stage of negotiation. Don’t lose your temper as that means you lose face and are seen as untrustworthy. Concessions are expected in price and terms. Expect them in return. Politeness, praise and respect are important Don't assume anything - find ways of checking progress without causing the other party to 'lose face'.

18. Information contained within this package is proprietary and confidential India Readiness Assessment Management Commitment/ India Champion Researched the Opportunity and Completed the Environmental and Target Market Scan Consulted with key specialists in Canada and India – Trade Commissioners, EDC, Legal and Tax experts, Financing, Consultants Financial Commitment for Market Research and Travel next 2 – 3 years Indian Cultural Training or Exposure

19. Information contained within this package is proprietary and confidential India Readiness Assessment Completed Skills Audit – including India cultural and market expertise Plan for securing and maintaining local agent, distributor or partner Decided on degree of technology transfer Risk Management Strategy – including credit risks, political risks, security risks Draft India Business Plan

20. Information contained within this package is proprietary and confidential Drafting the Business Plan Table of Contents Executive Summary Corporate Profile and Nature of the Business Management and Human Resources Environmental and Target Market Scan Market Entry and Marketing Strategy Operations Overview Financial and Risk Management Strategy India Readiness Assessment Conclusion and Recommendation Bibliography Appendices

21. Information contained within this package is proprietary and confidential Environmental Scan 1.Market Size, Composition and Growth 2.Political Characteristics and Stability 3.Cultural and Linguistic Issues 4.Government Policies Affecting Business 5.Legal Issues 6.Costs and Resource Availability 7.Commercial Infrastructure 8.Geographic Factors Target Market Scan 1.Customer Profiles: wealth and ability to pay 2.Product /Service Fit with Customer Preferences 3.Strength of Demand for Product/Service 4.Competitive Barriers to Entry TFIP Environmental and Target Market Scan

22. Information contained within this package is proprietary and confidential Sources – Canadian Government Sites Department of Foreign Affairs and International Trade www.tradecommissioner.gc.ca www.tradecommissioner.gc.ca Export Development Canada www.edc.cawww.edc.ca Industry Canada www.ic.gc.cawww.ic.gc.ca Canadian Commercial Corporation www.ccc.cawww.ccc.ca Canadian International Development Agency www.acdi-cida.gc.cawww.acdi-cida.gc.ca Business Development Bank of Canada www.bdc.cawww.bdc.ca Statistics Canada www.statcan.cawww.statcan.ca Trade Team Canada www.exportsource.cawww.exportsource.ca

23. Information contained within this package is proprietary and confidential DFAIT – www.tradecommissioner.gc.ca Select - Country Info –Market Reports, Asia Pacific, India Aerospace Sector Profile - IndiaAerospace Sector Profile - India 2011/01/04 Defence and Security Sector Profile - IndiaDefence and Security Sector Profile - India 2011/01/04 Agriculture, Food and Beverage Sector Profile - IndiaAgriculture, Food and Beverage Sector Profile - India 2011/01/05 Automotive Sector Profile - IndiaAutomotive Sector Profile - India 2010/12/29 Life Sciences Sector Profile - IndiaLife Sciences Sector Profile - India 2010/12/30 The International Education Market in IndiaThe International Education Market in India 2012/06/04 Studying in Canada - Frequently Asked Questions and Answers from the High Commission of Canada, New DelhiStudying in Canada - Frequently Asked Questions and Answers from the High Commission of Canada, New Delhi 2011/11/02 Guidance on the Submission of Study Permit ApplicationsGuidance on the Submission of Study Permit Applications 2011/10/25 Canadian Universities: Generating Science and Technology Opportunities with Indian Companies and UniversitiesCanadian Universities: Generating Science and Technology Opportunities with Indian Companies and Universities 2011/10/12 Education Sector Profile - IndiaEducation Sector Profile - India 2010/12/30 Electric Power Equipment and Services Sector Profile - IndiaElectric Power Equipment and Services Sector Profile - India 2011/01/04 Environmental Industries Sector Profile - IndeEnvironmental Industries Sector Profile - Inde 2010/12/15 Life Sciences Sector Profile - IndiaLife Sciences Sector Profile - India 2010/12/30 Information and Communications Technologies - Software and Services Sector Profile - IndiaInformation and Communications Technologies - Software and Services Sector Profile - India 2011/01/04 Telecommunication Sector Profile - IndiaTelecommunication Sector Profile - India 2011/01/04 Metals, Minerals and Related Equipment, Services and Technology Sector Profile - IndiaMetals, Minerals and Related Equipment, Services and Technology Sector Profile - India 2010/12/30 Oil & Gas Equipment & Services Sector Profile - IndiaOil & Gas Equipment & Services Sector Profile - India 2010/12/28 Transport Infrastructure Sector Profile - IndiaTransport Infrastructure Sector Profile - India 2011/01/04 Financial Services Market Sector Profile - IndiaFinancial Services Market Sector Profile - India 2010/12/29

24. Information contained within this package is proprietary and confidential Canadian Representation in India 24 High Commission, New Delhi Consulate General, Chandigarh Consulate General, Mumbai Trade Office, Kolkata Trade Office, Hyderabad Consulate, Chennai Trade Office, Bangalore Trade Office in Ahmedabad

25. Information contained within this package is proprietary and confidential Sources – Canadian Trade Associations Canada-India Business Council www.canada-indiabusiness.cacanada-indiabusiness.ca Indo-Canada Ottawa Business Chamber www.icobc.orgwww.icobc.org Indo-Canadian Chamber of Commerce www.iccc.org Canadian Society of Customs Brokers www.cscb.cawww.cscb.ca Canadian Chamber of Commerce www.chamber.cawww.chamber.ca Canadian Manufacturers and Exporters ( CME) www.cme-mec.cawww.cme-mec.ca Canadian Association of Importers and Exporters www.importers.ca or www.caie.cawww.importers.ca www.caie.ca Canadian International Freight Forwarders Association www.ciffa.comwww.ciffa.com Asia Pacific Foundation of Canada www.asiapacific.cawww.asiapacific.ca

26. Information contained within this package is proprietary and confidential Sources – Indian Government Sites High Commission of India, Ottawa www.hciottawa.cawww.hciottawa.ca Directory of official Indian Government websites www.goidirectory.nic.inwww.goidirectory.nic.in The Directorate General of Commercial Intelligence and Statistics www.dgciskol.nic.in www.dgciskol.nic.in Directorate General of Foreign Trade www.dgft.delhi.nic.inwww.dgft.delhi.nic.in India Brand Equity Foundation (IBEF) www.ibef.orgwww.ibef.org India Finance and Investment Guide www.finance.indiamart.comwww.finance.indiamart.com Ministry of Commerce and Industry – www.commerce.nic.inwww.commerce.nic.in

27. Information contained within this package is proprietary and confidential Sources – Indian Trade Associations Federation of Indian Chambers of Commerce and Industry www.ficci.com www.ficci.com All India Association of Industries www.aiaionline.orgwww.aiaionline.org Associated Chambers of Commerce and Industry of India www.assocham.org www.assocham.org Confederation of Indian Industry www.ciionline.orgwww.ciionline.org

28. Information contained within this package is proprietary and confidential Sources – International Organizations Dun and Bradstreet www.dnb.comwww.dnb.com International Monetary Fund www.imf.orgwww.imf.org Economist Intelligence Unit www.eiu.comwww.eiu.com International Chamber of Commerce – www.iccwbo.orgwww.iccwbo.org Multilateral Investment Guarantee Agency ( MIGA) www.miga.orgwww.miga.org OECD www.oecd.orgwww.oecd.org CIA – www.cia.govwww.cia.gov World Bank www.worldbank.orgwww.worldbank.org World Trade Centres www.wtca.orgwww.wtca.org

29. Information contained within this package is proprietary and confidential Telfer Focus India Online Program The Telfer Focus India Online Program is a comprehensive web-based program for business executives offered by the Telfer School of Management at the University of Ottawa. It is comprised of three parts: Session 1 provides an introduction to business opportunities and challenges in India; Session 2 offers a comprehensive review of business intelligence and guidance on key aspects of doing business in India and Session 3 engages you in developing a Strategic Business Plan with advice and feedback from the program experts hough@telfer.uottawa.ca

30. Information contained within this package is proprietary and confidential National Capital India Forum – Feb 21/2013 “Adapting your Business to India” The Telfer School of Management at the University of Ottawa and the Sprott School of Business at Carleton University in collaboration with Sponsoring Organizations presents the 2013 National Capital India Forum. Topics of the Conference will include: The current economic and political situation in India and the implications for Canadian companies. The state of Indo-Canadian commercial relations and the significance of the proposed Comprehensive Economic Partnership Agreement (CEPA). The need for adapting your Business Plan and approach to India from the perspective of the 4 P’s -product, price, promotion and place. Who can help Canadian firms succeed in the Indian market. For more information contact: (613) 562-5800 ext 2396 nationalcapitalindiaforum@telfer.uOttawa.ca

31. Information contained within this package is proprietary and confidential Are you ready for India? Marine Drive, Mumbai, India