Tractus in India

Tractus has been undertaking consulting engagements in India since 1995. We established our India office in Pondicherry in the southeastern state of Tamil Nadu in 2008 when India’s investment attractiveness was still heavily dependent on business process outsourcing (BPO) and call centers.

While these and other more knowledge-process outsourcing and IT-related businesses (IT/BPO/KPO) generate over US$146 billion, manufacturing in India is finally starting to take off.

Narendra Modi’s high profile Make in India campaign, combined with his focus on deregulating and streamlining India’s notoriously sclerotic bureaucracy, has boosted India’s overall attractiveness as an investment destination. From an also-ran only a decade ago, India overtook China as the leading foreign investment (FDI) destination and the country with the highest GDP growth rate in Asia as of 2015.

India’s enormous population, second only to China in size, and demographically one of the youngest in the world, is finally coming into its own as an investment and trade destination after years of relative stagnation. When it comes to outbound investment, India is the second largest source country in Asia for (OFDI) to the US and EU. Its outbound investors are almost exclusively corporates who understand Western business practices and need significantly less hand holding than their China counterparts who are largely state-owned enterprises (SoEs) with much less experience in international business.

Tractus India has a proven track record of assisting companies to make informed decisions about where to invest and how to structure their business operations in India’s highly complex and challenging business environment. Our office, located in Pondicherry, a satellite city of Chennai, is staffed with a team of Indian and multinational staff supporting our clients’ needs as India’s investment environment improves along with its political, economic and social outlook.

Strategy & Execution

Tractus advises and assists our clients to make informed decisions about where to invest in India’s dynamic economy, determine the best market entry strategy and decide how best to structure their investment from an operational, legal and tax perspective. While India is attracting greater attention from investors because of its enormous market, high rates of growth and the English language facility of its workforce, it is still a challenging market in which to operate.

These challenges require well considered investment strategies based on a clear understanding of client objectives and thorough analysis. Companies rely on us to undertake market research, market opportunity and business case assessments, and advise them on the most appropriate market entry strategy for their business, which could include:

  • exporting into the country through a dedicated representative or agent
  • establishing a start-up greenfield investment requiring the identification of a new site and construction of facilities
  • entering into an equity joint venture or acquiring an existing business; or
  • entering the market utilizing Tractus’ business Inc.ubator services

As India’s IT/KPO/BPO sector has grown to become world class, concentrations of investment activity have created labor market hot spots where wages are rising faster than productivity is able to compensate and certain specialized skills and language capabilities are becoming harder to find.

Determining the optimal location for shared service, software development and IT support centers requires a thorough understanding of the labor market situation and disciplined analysis. India’s infrastructure and internal trade regulations and bureaucracy, make it especially important to evaluate manufacturing site location options using a systematic, objective and disciplined approach.

Tractus’ business Inc.ubator was conceived as a cost effective and low risk way for companies to evaluate the market without having to formally establish a subsidiary or business entity. Our business Inc.ubator clients utilize Tractus services such as:

  • legal entity to employ dedicated India staff
  • office space as a place to do business
  • HR, administration and accounting shared services team for back-office support
  • senior management and Directors for experienced oversight

to establish a presence in the market before making a formal commitment to establish a legal entity and start-up operation in India. Tractus’ business Inc.ubator has proven to be an effective vehicle for companies such as

  • NovaTech Engineering to provide innovative beak treatment services for the poultry industry; and
  • Lutheran Partners in Global Ministry (LPGM), an American non-profit, to oversee its funding activities at schools and boarding homes for the poor in rural India

to build their business in India. They have all experienced exponential sales growth and substantial market penetration by leveraging the Tractus Inc.ubator to accelerate their India market entry execution.

Regardless of the investment strategy chosen, Tractus’ India team has the expertise and experience to support our clients with their investment strategy execution from registration of the legal entity, recruiting key management personnel, selection of professional service vendors to managing the design, engineering and construction project management of a new or existing facility.

Strategy

  • Market Opportunity Analysis
  • Regulatory Analysis
  • Business Case Assessments
  • Feasibility Studies

Execution

  • Site Selection
  • Real Estate Acquisition
  • Incentives Negotiations
  • Government Approvals
  • Start-up Management
  • PM & Client Rep

Business Inc.ubator

  • Recruiting Assistance
  • Office Space, Admin & Management Oversight
  • Operations Management

Corporate Finance

As markets in Asia mature and become more competitive, oftentimes the best strategy for accelerating market entry is to enter into a joint venture or acquire an established firm.

Narendra Modi’s efforts to liberalize India’s investment environment has opened up new sectors to wholly foreign-owned investment making mergers and acquisitions (M&A) a viable option for market entry.
The Tractus corporate finance team has years of experience negotiating joint ventures, acquisitions and dispositions in Asia and in India.

The team can assist foreign companies to:

  • identify and screen acquisition targets and joint venture partners
  • formulate optimal corporate/deal structures
  • undertake financial modeling and analysis
  • undertake financial and operational due diligence and support negotiations and deal documentation through closing on both acquisitions and dispositions

The Tractus corporate finance team also has significant experience structuring private placements and raising funds for innovative technology companies, particularly in the medtech space.

While markets for growth capital are highly developed in North America and to a lesser extent Europe, India is a relative newcomer to the venture capital and private equity scene. But there is significant interest on the part of Indian family offices and private funds to capitalize on the opportunities for matching Indian and Asian capital and market opportunities with cutting edge technology firms from the US.

Tractus has been able to successfully secure growth capital in Asia for several early and mid-stage technology firms at valuations significantly higher than might be expected from the more competitive markets in North America and Europe.

As markets in Asia mature and become more competitive, oftentimes the best strategy for accelerating market entry is to enter into a joint venture or acquire an established firm.

Narendra Modi’s efforts to liberalize India’s investment environment has opened up new sectors to wholly foreign-owned investment making mergers and acquisitions (M&A) a viable option for market entry.
The Tractus corporate finance team has years of experience negotiating joint ventures, acquisitions and dispositions in Asia and in India.

Theteamcan assist foreign companies to:

  • identify and screen acquisition targets and joint venture partners
  • formulate optimal corporate/deal structures
  • undertake financial modeling and analysis
  • undertake financial and operational due diligence and support negotiations and deal documentation through closing on both acquisitions and dispositions

The Tractuscorporate finance team also has significant experience structuring private placements and raising funds for innovative technology companies, particularly in the medtech space.

While markets for growth capital are highly developed in North America and to a lesser extent Europe, India is a relative newcomer to the venture capital and private equity scene. But there is significant interest on the part of Indian family offices and private funds to capitalize on the opportunities for matching Indian and Asian capital and market opportunities with cutting edge technology firms from the US.

Tractus has been able to successfully secure growth capital in Asia for several early and mid-stage technology firms at valuations significantly higher than might be expected from the more competitive markets in North America and Europe.

Investment Attraction

  • Strategy Development
  • Targeted Marketing
  • Lead Generation
  • FDI Missions

Trade Promotion

  • Market Research
  • Distributor Searches
  • Background Checks
  • Trade Show Representation

Technical Assistance

  • FDI & Trade Attractiveness Benchmarking
  • FDI & Trade Strategy Development
  • Economic Research & Analysis
  • Government Advocacy

Economic Development

For economic development organizations, private developers, government agencies and industry trade associations seeking to promote exports and attract outbound foreign direct investment (FDI) from India, Tractus leverages its investment advisory experience to provide unique insights to EDOs and IPAs on how best to promote exports to India and attract investment from this huge market.

Tractus represents US, EU and Asian EDOs and IPAs of regions, states and provinces, and municipalities to promote exports as well as identify outbound Indian investors with an interest in entering these markets. The India team undertakes service requests to identify agents and distributors, makemarket surveys and industry sector analyses to support economic development, trade promotion activities and to develop as well as implement targeted investment attraction strategies to generate high potential leads for outbound investment into the US, EU and Asia.

The India team has also conducted and is well versed in organizing and supporting in-bound and out-bound trade and government missions to support these activities. Tractus India has a wide network of contact with government officials, multilateral organizations and industry sector associations. We also have a database of Indian industry contacts to react fast to trade promotion and FDI attraction activities.

Our Clients

What People Say About us

  • So grateful for your partnership. We are stronger together. Tractus India makes us more vital and culturally aware. Tractus has been instrumental in putting structure and accountability to our India office and staff. We have found a tremendous value in having the Tractus staff walk shoulder to shoulder with us as we work in the non-profit sector of India.

    Lutheran Partners in Global Ministry
  • Tractus handled the project with total professionalism and efficiency in difficult circumstances and we will continue to employ their services with confidence.

    Aydon Consultants– Supplier Identification
  • We are very pleased with Tractus. The price/result relationship has been excellent and Tractus has performed to and above our expectations. We were extremely pleased with the performance of Tractus. We had a very challenging project and the breadth and expertise of the Tractus organization across Asia was the difference between success and failure. We can definitely recommend Tractus as a business development partner.

    Humanetics Corporation

For more information about the business strategy and execution capabilities of Tractus India and how we can assist you to make informed decisions about how to invest in India contact below

Strategy & Execution

Economic Development

Nalin Patel

Country Manager

 

Corporate Finance

Richard J. Smith

Head of Corporate Finance

Download our FREE Tractus Economic Development RAMP for 2016

Contact Tractus India

Tractus Asia India Pvt. Ltd.
60 Kamatchi Amman Koil Street,
Pondicherry 605001,
INDIA