gaurish dhareshwar haris siddiq helley rao henal mehta hrushikesh vartak

8/14/2019 Gaurish Dhareshwar Haris Siddiq Helley Rao Henal Mehta Hrushikesh Vartak

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Gaurish Dhareshwar 16Haris Siddiq 17Helley Rao 18Henal Mehta 19Hrushikesh Vartak 20Rohit Raghuvanshi 39Romin Vaghasia 40Ronak Shah 41

Sandeep Jain 42SandhyaYadav 43


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Any form of investment that earns interest in

enterprises

Function outside of the domestic territory ofthe investor.

Criteria For Company to be considered FDI:

10% or more ordinary shares in foreign enterprise

Voting rights in the foreign enterprise.


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By Direction

Inward

Outward

Horizontal

Vertical

Backward Forward

By Target

GreenfieldInvestment

Mergers &Acquisitions

By Motive

Resourceseeking

Marketseeking

Efficiencyseeking

Strategic Asset seeking


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Inward When foreign capital is invested in local resources.

Outward When local capital is invested in foreign resources.

Horizontal enters a foreign country to produce the same

products product at home.

Vertical Forward

Backward


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Greenfeild FDIs

Mergers and Acquisitions

Cross-border Acquisitions


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Resource seeking Factors of production.

Market seeking Aims at penetrating new markets

Maintaining existing markets

Efficiency seeking

Increase efficiency by exploiting benefits of largeScale and Scope.

Strategic Asset seeking Tactical investment to prevent future loss.


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Automatic Routes

New Ventures

Existing Companies

Government Routes

FIPB


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FIPB Quickly approve

Look over the implementation

Encourage FDI

Identify sectors that require FDI

Establish transparency


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FIPB Territories

Petroleum sector

Existing Airport Projects

Atomic Minerals

Broadcasting

Defense Print Media

Satellite Establishment


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Forbidden Territories

Retail

Atomic Energy

Lottery Business

Gambling and Betting


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Economic reforms


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Fuels (Power & Oil Ref.) (35.93%)

Telecommunications (radio paging, cellular mobile & basictelephone services (10.56%)

Electrical Equipment (including Computer Software & Electronics)(9.50%)

Food Processing Industries (Food products & marine products)(9.43%)

Service Sector (Fin. & Non-Fin. Services) (8.28%)

Foreign direct investment (FDI) from the United States is expectedto exceed $1 billion


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Data dissemination Debt securities

Direct Investment Direct investment Enterprise Direct investment income

Direct Investor Inward/ Outward flow Non voting stocks


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The FDI in India in telecom has been hiked upfrom 49% to 74%.

This move is positive , as it require investmentsof Rs 700 900 million over the next 5 years.

Countries like Europe, Korea, and Japan telecomare likely to enter India, as India is seen as fastest

growing telecom market in world. FDI inflow in India in this sector was nearly

9950.94 crores.


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Tele communication facility at reasonable price, affordableto many.

FDI inflows will allow multiple benefits such as technology

transfer, market access and organizational skills.

In India where 70% of population still resides in rural areas,there is a dire need of infrastructure in telecom, which FDI

can provide.

Foreign currency flowing in the country.

There will be increase in competition with local players,which will benefit consumers.


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Majority Directors on the board have to be ResidentIndian citizen(CEO,MD) etc.

Telecom firms "must provide traceable identity oftheir subscribers".

Companies cannot provide any accounting

information relating to subscribers to anyone outsidethe country.

Telecom network cannot be managed from the

overseas and the network should be in India.


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Virgin Mobile TataTelecom


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Richard Bransons Virgin Mobile tried to enter

Indian market through a 50:50 joint venture with

the Tatas.

Virgin will exclusively license the Virgin Mobile

brand and technology expertise in the area ofvalue-added services (VAS) and handsets to TTSL

and they largely targeted at the youth segment.


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They also started for recruiting people fordifferent positions.

The company is the worlds first mobilevirtual network operator (MVNO).

It does not maintain its own network andinstead has contracts to use the existingnetworks of other providers, on which itoffers services under the Virgin brand.


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MVNOs are not yet permitted in India, though

telecom regulator TRAI.

Instead, it will be an agent of TTSL and Virgin

Mobile-branded services will be available over

TTSLs network.


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Now in India the Virgin Group has a technical

and consultancy services agreement with

Essar Telecom Retail, the retail venture of theRuias.

Under this agreement, the Virgin group is

providing its expertise in the areas of

branding, marketing, customer care, store

operations and staff training to Essar stores.


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Franchising (Nike, addidas)

Whole selling (Wal-Mart)

Licensing

Setting manufacturing base


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The unorganized retail sector as has been mentionedearlier occupies 98% of the retail sector and the rest2% is contributed by the organized sector

Hence one reason why the government was fearingthe surge of the Foreign Direct Investments in Indiawas the displacement of labour.

The unorganized retail sector contributes about 14%to the GDP and absorbs about 7% of our labour force


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Fastest growing industry.

Expected to be the next boom after IT sector.

100% FDI in cash-and-carry wholesale

51% FDI is permitted in single brand retailing


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Total retail market in India - $35.3 billion in

2008.

Organised retail sector 7% is projected to

grow at 40% p.a.

Largest sector 10% GDP and 8% of

employment.


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Corporate houses

Tatas : TATA Trent,

RPG group : Food world, Health and glow

ITC : Wills LifestyleGroup

Rahejas: Shoppers stop

Hiranandani : Haiko

Dedicated brandoutlets

Nike, Reebok, Zodiac,etc

Multi brand outlets

Vijay Sales , Viveks, etc.

Manufactures/exporters

Pantaloons, Bata,Weekender.


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FDI brings competition in organized sector of retail market andcompetition bring low cost product for consumers. But as the coinhas two sides FDI also has a bad impact on unorganized sectors

The 97% of total retail market of India is unorganized, millions ofpeople livelihood depends on that and more and more number ofFDI will generate more and more unemployment in India.

Because of FDI and major players entering infrastructure, real-estate and entertainment sector has been boomed providingmillions of jobs.


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BhartiWal-Mart Private Limited, a joint venture for wholesalecash- and-carry and back-end supply chain managementoperations in India

Under the agreement, Bharti and Wal-Mart will hold a 50:50 stakein Bharti Wal-Mart Private Limited.

The Bharti Wal-Mart business-to-business (B2B) wholesale cash-and-carry joint venture will serve kirana stores, fruit and vegetable

resellers, restaurants.

It also will serve other retailers such as Bharti Retail, which issetting up a chain of stores in India that are 100 percent ownedand operated by Bharti.


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The supply chain will link farmers and retailers directly who have limitedinfrastructure and distribution strength.

And the supply chain will enable minimum wastage, particularly of fresh

foods and vegetables. The venture is expected to open 10 to 15 wholesale cash-and-carry

facilities and employ approximately 5,000

A typical facility will stand between 50,000 and 100,000 square feet andsell a wide range of fruits and vegetables, groceries and staples,

stationery, footwear, clothing, consumer durables and other generalmerchandise items.

Wal-Mart joint venture face the problems due to the opposition by theLeft parties


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They insisted that the government should look intothe matter to stop the "backdoor entry" of Wal-Martinto India.

These parties opposed the joint venture stating thatforeign direct investment in retail trade was notallowed under the existing policy.

And that it would impact the vast number ofunorganized retailers, domestic manufacturers, andfarmers in India and unemployment.


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gaurish dhareshwar haris siddiq helley rao henal mehta hrushikesh vartak

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