Business Plan to launch VALTEC AUTOMATION in India

disdain Plan to launch VALTEC AUTOMATION in IndiaIntroductionThe main nonsubjective of this report is to propose a stock Plan to distribute and advance Automation Solutions for conglome invest changes of Valves in Indian mart. The main motive quarter lurch into this foodstuff is to tap the unending need for valves in various cover industries, steel, chemical Oil and Gas industries.The report be gloomy has been shape out by considering the food commercialise conditions, intrinsic and extrinsic factors, environmental conditions and uniformwise the various traffic parameters. Based on the above and along with that basing my B.E. in Electronics Instrumentation Engineering and trine years of experience in a similar industry, a clear press cutting strategy has been jotted big bucks to plan, organize, launch, oversee and agree the business of Valtec-Automation in Indian commercialise.Insight into ValvesValves form a very integral comp mavennt in s squading systems . The primary manner of regulating and operate onling pressure, direction and flow of fluids is accomplished with compliancyive control valves.Depending on the scenario, a valve may be operated continuously e.g. control valves, or very r arly e.g. Safety Valves, or intermittently e.g. isolation valves. A valve plunder be very simple, low cost item or it may be very much complicated, costly item.In piping design the valves probably require more engineering effort than virtu whollyy(pre tokenish) other piping componentThe forecasts convey that the demand for industrial valves glob completelyy would increase annually by 4.4 percent through 2011, driven by an encouraging indicator of growing in developing nations and a bollix up towards much more expensive automated valves and actuators in developed countries. India is one among the nations which would experience the fastest market tallys.Market AnalysisTarget MarketThe Indian market offers tremendous opportunities to foreign investors with one billion populations in hand. The investors could view massive growth and expansion here. Indian economy is evolution at a faster rate compargond to other nations. the major sectors interchangeable energy, environment, infrastructure, transportation with their increasing demand forces foreign investors to enter Indian market. India gross domestic product has registered 6.7% growth in the period 2008-09 but it has the capacity to sustain the growth rate of 8 to 10% in the nearing years. The current growth rate is apt for the investors.Valve Market in IndiaThe valve industry is improving day by day. Manufacturers are using new technologies such as latest examination and manufacturing equipment. So demand for valves is seen in almost all areas, especially in core sectors of metal and mining, oil and gas, pharmaceuticals, drugs, food and beverages etc for de-bottlenecking , expansion of capacities and maintenance purposes. By using these technologies there is awesome improvement in the finishing of the valves and they are of effective accuracy. the valves distributed by Valtec has smart positioners as control system. Moreover, it is make of low noise and low emission exotic stuff and nonsenses.The valve market is epic full to offer a wide variety of opportunities to all manufacturers irrespective of the kind of operations. The market, by and large, is shared by variant manufacturers based on scar name, technology, manufacturing capacities and price competitiveness. Today India is a large producer of valves and it as headspring as plays a procedure in producing top class products of the world. The quality of valves produced in India is utilise by domestic users based on the service and application. However the large organisations present in key sectors opt for only best brands after(prenominal) a scrutiny of offers based on the application. The country also has diminished manufacturers who require their own niche markets. The growt h in the valve industry is anticipate to continue at 7-8 per cent per annum. Due to India becoming competitive the growth in exports is expected to be 10-12 per cent per annum. Grabbing all these advantages of this market, Valtec would be pitching in to the valve market of India along with Valve Automation solutions. This is observed to be the undecomposed(a) while to sweep away a large portion of this market segment.VALVE EXPORTS OF INDIASource Exim averMARKET SHARE OF DIFFERENT TYPES OF VALVES (Globally)Source Exim BankBenefits of establishing in Indian marketFor companies established in special stinting zone several tax exemptions are made forthcomingIT companies have tax incentivesMany countries are in double taxation treaties with IndiaA private lodge in India can be made with a minimum capital of INR 100,000Skilled employees are available at nominal rate.Obstacles in Indian MarketRigid and complex social poserIndian Bureaucracy base of operations issuesIndia is a nati on with varied cultures and thusly major changes in social structure are tedious to implement. However, the arithmetic mean is slowly changing and government is trying their level best to hold up effective changes. More Efforts are made to cut down on the red-tape. Poor road conditions and shortage of power supply are some of the infrastructural problems in India that needs to be resolved as quickly as achievable. However, useful measures are adopted by the government in these areas as tumefy to attract foreign investors to the country. Eight highways projects has been finalised that pull up stakes need an investment of Rs 10k crore.Hence, with the steps taken up to improve the situations, entry into the Indian market will no longer be a tedious routine.Business AnalysisType of Business entities in IndiaPrivate Limited partyPublic Limited connectionUnlimited CompanyLimited financial obligation Partnership (LLP)PartnershipSole Proprietorship social function potency/ congr essman government agencyProject percentageBranch OfficeJoint game CompanyPrivate Limited CompanyLimitations of a private play alongThe shareholders have only limited rights to transfer sharesThe maximum possible itemize of share holders is fiftyThe public is refrained from buying the shares.Public Limited CompanyPublic company cannot be called a private company. The public company has its own limitationsThe minimum number of share holders should be at to the lowest degree seven.A public company is not permitted to start business at once the certificate of internalisation is approved. In order to start business as a corporation, trading certificate is a must.The company must file away a statement in lieu of a prospectus out front it can start transacting business.It should have minimum of at least three directors.Statutory meetings should be held and the forethought should be appointed based on approval from government.Liaison Office/Representative OfficeA Liaison Office n eeds approval from the government of India. It plays an important role in collection of information, promotion of imports and exports and facilitate financial and technical collaborations.Project OfficeForeign companies can establish a temporary site or project offices to execute special(prenominal) projects and activities related to it in India.Branch OfficeForeign companies who have involved themselves in activities related to manufacturing and trading goods foreign are allowed to open a branch office in India for more purposes such as import and export of goods, rendering consultancy decease, to perform inquiry work etcLimited Liability Partnership (LLP)LLP is another corporate business element which delivers the advantages of limited liability of a company but allows its members to drum their internal management as is the racing shell of a partnership theater on the foothold of a mutually-arrived agreement.Valtec As Sole ProprietorshipThe bushel proprietorship is th e oldest, simplest, and very common form of business entity. It implies that the business is amply owned by a single person. The owner and the business is considered as a single entity for all liabilities, taxation and legal liability. Taxation happens at individual level for business earnings and there is no meat of escaping. Thus, legal claimants are eligible for personal property of the proprietor and not simply the assets used in the business.Advantages of a Sole Proprietorship transparent and low costNo filing or legal take in with the Government is required.Owner enjoys fullest control on decision making.Income goes directly into the poke of the owner.Business profits are not taxed.Owner enjoys the privilege of fade out the business at his/her discretion.Disadvantages of the Sole ProprietorshipThe total capital available is limited which in turn limits the size of the business.Product liability shell by a customer is not applicable against business replace in legal form of business is necessary in case of sharing of benefits of ownership other than profitBenefits of employees is not deducted or partially deducted from taxable income.the assets of the business go to his or her estate upon loss of emotional stateRegulationsRegistration is not required for sole proprietorship. Just an account in bank should be opened with the name and style that the owner wishes to work. vat or Service tax registration needs to be use as Chennai has its state VAT and service tax registration regulations. The pan out of the owner will be the firms PAN and the income tax returns will be filed in the personal name.Typical Procedure to Establish Business in IndiaEstablishing a business in India requires certain period of time. This is because besides incorporation there are certain other formalities in establishing a business in India.(Source Types of Business Entities in India, http//madaan.com/incorporate.htm )Business regulatorsBusiness instauration FactorsThere ar e legion(predicate) foreign companies who keep a anticipate on various opportunities in India. To enter the Indian market and to touch something big they need to be careful regarding certain points. These include finding good partners who knows the in and out of local market as surface with the procedural issuesSmart planningIdentifying the cross marketPromotion of products and servicesContacting the appropriate agents and distributorsIn addition to these, the foreign investors need to explore different market options available in India and frame a joint imperil with an India-based company. It also includes establishment of a branch office.Actual Plan deal Mission Statement To evolve as a successful market leader in providing the cutting edge fluid flow control and automation solutions and maximize the growth and tax income in all possible ways.AgendaThe new born Valtec Automation India Private Limited will hit the market by procuring different type of valves from a specific list of valve manufacturers interchangeable RFLExports, Peco Valves, Tyco, etc .., special actuators from Bettis and several automation equipments from local market on needs basis. Depending upon the customer and answer requirements, a clear cut valve automation solution will be engineered by implementing the above mentioned components. apart(predicate) from these activities, Installation commissioning of valves and accessories and maintenance service jobs would also be rendered.The target market would initially be Southern region of India and venturing into various process industries like steel, paper pulp, sugar, cement, chemical, waste water treatment plants, petroleum refineries and others.Valtec would be strategically Head Quartered in Chennai Tamil Nadu, which would be a very apt place for carrying out business as it is very well equipped with a fantastic port, air freight, road ways and railways network. belatedly our footprints would be made in other parts of India as well. wide Term Plans The material cost has a direct relation with respect to the cost of the valves. If the cost of any input increases then the cost of the valve also automatically increases. Almost 60% of total cost of the valve depends on the material price. India has adequate foundries and the closure of foundries in west resulted in export demand. So Indian foundries are adding more capacity. This paves a clear path for Valtec to game into foreign markets.Valtec An OrganizationPrincipal Management Carry a consentaneous expertise, skills and training in Designing and Automation of Valve based solutions.Possess a broad spectrum of know-how about the global valvse automation market. Leadership Possess straightforward experience in key role such as managerial and Decision Making, Strategic Planning, Financial Planning, Controlling and other managerial roles. custody To start with, we would be operating with 10 staffs on board and later(prenominal) to triple the strength by the commencement of the next financial year.Facilities Infrastructure entirely necessary tools and equipments that are required of carrying out this business would be brought in.Inventory Just in time principle would be adopted. fig out AnalysisCompetitor AnalysisWith the development of petrochemical and chemical industries, the Valve Market in India is also experiencing a tremendous growth. Restructuring of power plants are under process in order to improve the efficiency in saving energy. future day investments in nuclear power generation are likely to generate substantial revenues for the total industrial valves and actuators market, creating numerous growth opportunities for market participants.With close to thousands of players, the competition in Industrial valve automation sector is very high. push-down storage of small domestic firms serves the niche market by manufacturing push back-intensive valves with less technicalities. These companies gain edge over other s with its lower pricing. On the contrary, special valves and sophisticated actuators are beingness produced by many MNCs that generate majority of the revenue in market as they cater the high-end market. To have a good presence, participants in the industry are likely to go for acquisitions and mergers.Steps to gain competitive advantageAs Indian Market is full of many players in Valves and Valve Automation sector, aUnderstanding the increasing demand for iron valves that offer a great scope for automation and stable motion and catering these needs in a timely and technologically operose manner.Also, the solution provided should be the best value for the funds.Investing time and money in research and development of new techniques in automation.Pitching well into application of intelligent valves which can perform data processing, networking with computer-based control systems that can aid in optimization of the valve system management, perform self diagnosis, have with embed ded system, fieldbus, and computer-based controls.Proper understanding of the customer base in the market and also a clear cut analysis of the demand in different kind of process industries is very much vital to provide the best solution and also to stand out in the race.By providing labour intensive valves with fewer technicalities, the niche market can be captured.Also, after market service plays a very polar role in gaining a competitive advantage.Keeping abreast with the growing technology and constant innovation of the process.Resources, Infrastructure ManpowerManpowerThe workforce right from the bottom to the top in the hierarchical order will be absorbed from the Chennai market itself. Apart from the permanent payroll employees, separate squad would be formed now and then on needs basis in order to carry out the on site activities like installation and commissioning activities. A first level technical team will comprise of 2 automation and design engineers with relevant wo rk experience and skills. Under them a team of technicians, fitters and other skilled labour force to a maximum of 5 members would be recruited. Apart from these, a middle level management staff and a sales and marketing executive will also be recruited. Support staff like administration, accounts and human resource to be recruited on limited requirement. Sales and finance department would initially come under the control of top management and in later expansion phases would be restructured.Raw MaterialsThe raw materials will be procured depending on the project specification and design. And just in time procedure would be adopted for all the raw materials that are being procured. The basic myth behind this policy is that the requirement will be varying from client to client and project to project.InfrastructureA store cum shop floor for carrying out the automation activities and to stock gillyflower will be rented. All instruments, tools and basic amenities for carrying out all technical and assembling activities will be procured and listed as fixed assets. Office premises are all rented out in Dubai. The business sponsors are generally involved in the infrastructure to utilize the local experience and influence.Financial PlanFinancial Planning is a very crucial aspect that needs to be carried out well in advance. Its a process of meeting the goals via a proper management and control of the finance. The process of financial planning comprises few important steps which help pickings a Big Picture look at the present position. These steps would help us figure out the current financial position, the bullion flow or financial support required for a project period of time and the position that needs to be achieved in a stipulated time period. Also, attention needs to be paid towards the Working hood that is required for the day to day operations. name down your GoalsList down Your Cash Flows and Cash InflowUnderstand and figure out your Risk-appetiteList dow n the financial goals. constrain sure your Goals are realisticMake the PlanReview and Take adviceTake Action and keep ReviewingThe tackValtec Automation, the newly born company will is duly licensed and adhered to all sort of legal and business regulations of India. A deep, strong and rigid insane asylum gas been laid down in all possible spheres. All the basic business activities have been jotted down, an initial setup team has been made and the company is all set for kicking off.