Experienced | Insightful | Strategic

Emerging Markets & India Entry Business Advisory

India Market Strategy

India is one of the leading consumption based emerging markets and offers enormous potential for foreign companies who would like to leverage the growth in the middle class.

A critical step in entering a BRIC market is to determine whether there is sufficient opportunity to make the effort worthwhile. For this to happen properly, it takes an intimate knowledge of the marketplace, consumers, the competition and the regulations and financial aspects of the venture. Because CIBC has extensive experience in helping companies, both American & European, to set up and expand into the Indian Market; we are well qualified to execute the preferred strategy, which emanates from meaningful insights derived from the following:

  • Determining addressable market size & potential
  • Competitive intelligence
  • Determining regulations, duties and taxes
  • Getting end customer feedback on needs gaps
  • Determining price, positioning and branding
  • Developing a proposed India market strategy
  • Hosting client India "experience" visit

Emerging Market Strategy

Why India, and not Brazil or another BRIC market? To answer this, it is vitally important for our clients to understand the marketplace and possibilities for expansion into other emerging markets. To make this happen, we build thorough market strategies for India by determining size of market, the competition, pricing, regulations, and taxes. The product adaptation and customization which happens as per need gaps, helps the client to replicate the success into other meaningful emerging markets.

Global Expansion Strategy

In a flat world, economies that have traditionally been at the fringe of the World Economy are now becoming global players. Companies that sit on the sidelines during times of great global economic changes are sacrificing their own global potential. What's more, you don't have to go overseas to experience international competition. Sooner than later the world will come to you.

The global marketplace is fast paced and information driven. Learning quickly and moving at the speed of business are critical skills for companies moving into new emerging markets.

For smaller companies we have a value proposition structured around a low cost, light asset startup model to test the market they intend to go to before making any substantive investments. We help our clients mitigate not just the risks of setting up in a new market but also help save costs & time to set up. Today local markets are thronged with global competition, which drives us to help companies to leverage their low cost advantages to better serve global markets.

Mergers & Acquisitions

Acquiring or merging with a company across borders involves a significant level of complexity. Our Transaction Services Practice has highly experienced professionals with a successful track record for closing cross border deals in Pharma, Industrial, Engineering, Auto Components, Consumer Durables and many other business sectors.

Our transaction process includes:

  • Understanding the drivers & business objectives of the proposed transaction
  • Defining acquisition / JV Criteria & short listing potential targets
  • Initial discussions with potential targets to understand willingness to transact
  • Preparing IM/investor documents
  • Business valuation
  • Signing term sheet
  • Representing Client interest in dealing with Intermediaries
  • Coordinating due diligence – legal, financial, cultural, Environmental etc.
  • Facilitating financing arrangements (if any)
  • Negotiations between parties & signing SPA / SHA
  • Closing
  • Post closing integration issues

Performance Improvement

Most multinationals in India struggle to go past the 1% contribution to global revenues. Over the last decade many foreign companies have come into India, not all have been successful. Under performing subsidiaries have begun to be relooked into for improving overall business results at the corporate level.

Companies live and die by their ability to improve performance at all levels of business. They compete on price, quality, innovation and many other factors that are well understood in a company's home market. When expanding into another market, it is paramount that benchmarks be established that define performance improvement in a new market. To do this, we perform a diagnostic assessment of the India business and find strategic need gaps to help achieve accelerated growth. We have a multi disciplinary approach to a mix of the following, which helps us deliver in this area.

  • Business Operations
    • Product line alignment and enhancement
    • Relook at the sales and distribution model
    • Human resources
    • Process and costs
  • Governance & Compliances
  • Finance Structure

Cultural Adaptation

Being able to bridge cultural gaps quickly is of utmost importance when expanding into any new market. We have decades of experience in mating cultures quickly and seamlessly. The results are capabilities, efficiency and productivity that reach international standards.

We achieve cultural parity through:

  • Understanding the key local cultural issues & differences
  • Bridging cultural gaps by training and adaptation to local markets
  • Strategic performance management in line with business objectives
  • Change management orientation at different intervals
  • Creating a culture of harmony across the leadership

Localization & Innovation

An important factor for success in India is establishing a local presence not just for sales activities but also for product localization and adaptation to emerging markets. Investments in local assembly and manufacturing activities is necessary in most cases to be competitive. Understanding the needs of the middle-income group and developing products around them is key.

Creating and building products for local markets is challenging in any country. Doing so in a new expanding market is especially difficult. We help clients understand local needs and offer a different value proposition for emerging market consumers. This puts companies on the right path towards innovating, testing and manufacturing the right products for the right people in the right markets by:

  • Understanding product need gaps
  • Defining products and problems
  • Determining how to adapt to local market needs
  • Initiating ideation
  • Developing solutions
  • Conducting market testing
  • Continuing improvement and testing
  • Implementing and scaling solutions through localization