India’s importance as the world’s second fastest growing economy has seen the trend of “Look East” pick up momentum among companies from the developed western economies.  India’s GDP growth rate of 8.1% at the end of the first quarter of 2005–2006 and target set of achieving a growth rate of 10% by the Indian Prime Minster Manmohan Singh, the country offers immense potential across industry sectors to invest.

“Confidence in the Indian economy is reflected in the flow of foreign direct investments (FDI) into India. As the fastest growing economy, global companies do not want to miss out on the opportunities of growth offered by India. We have seen the likes of Microsoft Corpn., world’s largest software company, Oracle Corpn., the second largest enterprise software company, International Business Machines (IBM), world’s largest computer-services provider, General Electric (GE), world's second-biggest company by market value, realize this potential and make significant investment here.” explains Bundeep Singh Rangar, Chairman, IndusView Advisors.

Take for instance the telecommunication sector. Total FDI inflows into the telecom sector were $2.6 billion between August 1991 and July 2004. The quantum of investments required in the sector in the next four years is about $20 billion, according to Industry estimates. A substantial portion of this investment is to come from FDI.

Then, the infrastructure sector offers the biggest opportunity in India with an investment of $150 billion required in the next few years, according to the Economic Survey of India 2005-06.
The retail sector in India is also witnessing a huge revamp as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and smaller cities alike introducing the Indian consumer to a shopping experience like never before.
India’s total retail market at $202.6 billion is expected to grow at a compounded rate of 30% in the next five years. With the organised retail segment growing at the rate of 25-30% per annum, revenues from the sector are expected to triple from the current $7.7 billion to $24 billion by 2010.

The share of modern retail is likely to grow from its current 2% to 15-20% in the next decade. India’s vast middle class and its almost untapped retail industry are key attractions for global retail players wanting to enter newer markets.

IndusView is uniquely placed in realising the India focused growth strategies of companies across such industry verticals. The founders and the management collectively have more than five decades of cumulative investment banking and operational experience in large financial institutions while the team has senior resources dedicated to chosen sectors so as to offer customized industry focused services.

There is an emerging class of new consultancy firms advising Multi-National companies in their India entry strategy. IndusView, an India-focused financial advisory firm features among the prominent names that have established themselves in this category. Rishi Sahai, Board Director, IndusView Advisors comments on what is it that makes such consultancies successful.

Treading new ground
 As the country increasingly becomes a sought after business destination for global companies, it’s also witnessing the emergence of a new crop of advisory firms specialising in an India-entry strategy. Boutique outfits such as India Market and Business (IMB), Indusview, Avista Advisory, Tecnova, and Go Fish Retail Solutions, among others, are invading this space and nudging out larger consulting firms.

Their proposition — advising new companies in extracting the ‘India advantage’ and helping them crack the tough Indian market. Most of these firms are startups founded by senior professionals with a proven track record in diverse sectors. Sudarshan Banerjee, ex-CEO of Hutch’s Delhi circle who was also Amway’s former CEO, founded IMB, which advises new players with India aspirations. Similarly, Indusview, jointly promoted by Bundeep Singh Rangar, ex-Ariadne Capital, Rishi Sahai, ex-Infinity Ventures, and Manish Gupta, ex-Microsoft, is advising U.K. and U.S. clients on India….

… While the big consulting firms like McKinsey, BCG and Accenture are also active in this segment, more clients appear to prefer boutique advisories . And it’s not without reason. Apart from being cost-effective, these firms offer services that larger firms often cannot. For example, they could focus on one part of a whole bundle of services that a company requires. “Companies entering India seek specialised services, which they needn’t necessarily get from the large consulting firms,” says Rajiv Kochar, CEO, Avista Advisory, which has built expertise in the telecom vertical. “Especially in the technology space, overseas clients who want to enter India, look for specialised services and domain expertise from their advisors.”

Clients also see larger firms with their hierarchies and diverse portfolios, unable to match the attention and focus that a boutique firm can provide — partners in big firms often conduct client meetings while the younger consultants are assigned do the implementation. Rishi Sahai, director, Indusview Advisors, agrees, “Boutiques give partner-level access, something that big firms cannot afford to.” ….

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