1. Alliances Around the World
Cultural Roundtables - India
Subhojit Roye, CSAP
Principal, Strategic Alliances
Tradeshift, Inc.
3rd March 2016

2. 1. Relevant Basics
2. Implica3ons of Partnering
3. Business Rela3onships
4. Case Study
5. Key take aways
Agenda

3. India: The last BRIC standing
India is set to become one of the fastest-growing economies in the next few years.
GDP in 2016 is expected to grow 8%, significantly stronger than China - though, from
a lower base.
http://www.worldbank.org/content/dam/Worldbank/GEP/GEP2015b/Global-Economic-Prospects-June-2015-Table1.pdf

4. India: A matchless business partner
http://www.nasscom.in/india-value-proposition

5. 1. Value-to-weight ra3o
2. High value-added or IP driven business
3. Type of partner company:
– Global, Local, and Glocal
– Western vs Indian
Relevant Basics

6. • There could be radical changes to assump3ons and ini3al business case:
– Your collaborator has poten3al to become a compe3tor.
– Your prospec3ve acquisi3on target may even buy you out!
• Poten3al to impact:
– IP: Patents, copyright, licensing and franchising
– Physical Assets, Know-how, Brands, Talent
– Long-term business plans
Implica3ons of Partnering

7. General:
• India is a vast country, and while it is easy to generalize, there is immense
diversity
• But the more things seem different, the more they remain the same
– India is the “services back-office for the world” for IT, BPO, R&D, Engineering
– Concerns about language/ culture are no longer relevant. (People
understand you)
• Be aware of differences across 3me zones and in currencies (Rupees/ Paise) and
numbering (Lakhs/ Crores).
Business Rela3onships

8. Social e-que0e
● Understand levels within a company. Respect seniority. (Be aware of hidden or informal influencers)
● Be gentle. Never loud, arrogant or false. (Better to be trusting)
● Meeting start times and durations are not always followed. (But you should remain punctual)
Commitments
● A “nod” can mean a “yes”, but also a “no”? (Always confirm your understanding).
● Ask whether "I can do it" means "best intentions" or "I WILL make it happen”
● Define “success”, “failure” and what is “acceptable”. (Plan contingencies, and escalations)
Business Rela3onships

9. Laws, IP, Taxes and compliance
● Laws are complex – vary by state, sometimes by city and can change suddenly
● IP/ Patents: There are a lot of safeguards, but do take care to protect yourself
● Foreign currency: Assume exchange rate fluctuations, explore locking-in rates
● Taxes are complex– understand implications to your business model.
● Be aware of Double Taxation Avoidance Agreements (DTAA) that can impact transfer
pricing, royalties, margins.
● Take care about repatriation of funds and profits
● There is increased pressure from government and from social media to be
transparent
Business Rela3onships

10. Ini-al driver for Tesco to enter India:
● Low cost sourcing for its supermarkets worldwide
Current situa-on:
● Bangalore is now their single global technology and retail opera3ons center
● 50-50 JV with a Tata company to enter India's $500bn retail sector with 12 stores
Case Study
Ques-ons for our breakout session:
1. What points about IP should one consider with partners in India?
2. What level of support should one expect from government?
3. What are “unexpected” benefits one can get through partnering in India?

11. 1. The more things seem different, the more they are the same
2. There can be radical changes to assump3ons and ini3al business case
3. Be prepared to be surprised
4. Rela3onships can run deep, personal and very long
5. India is incredible, enjoy the ride!
Key take-aways
Dhanyawad!
Thank you!