Business Model Feasibility

Foreign Investors Business Model studies in India

With its large population, expanding middle-income segment, swift uptake of technology and emerging manufacturing exuberance; India is one of the most appealing destinations to foreign investors. But success in India entry demands more than the enthusiasm, the entry demands the sound knowledge of regulatory, cultural, economical, and sector dynamics determining the feasibility.
At CERTILIZE, we have our extensive Business Model Feasibility Studies particularly on the side on the foreign investors to make well informed decisions on the way to enter, operate and expand in India. We assess legal regulations, economic feasibility, business suitability, operational risks, and scaleability to the business needs of various business entry modes such as liaison offices, wholly-owned subsidiaries, joint joint venture, and manufacturing units.

What is Business Model Feasibility?

Business Model Feasibility is an inter-disciplinary study in which the business setup and the operating model that you propose to use, is evaluated on its ability to work effectively and be profitable within the Indian market.

The following is involved in this service:

• Legal and regulatory controls in the FDI policy and FEMA along with specific laws governing the sector
• •Capital cost such as financial modeling to find CAPEX, OPEX, breakeven, ROI
• •Alignment of market such as pricing and distribution and consumer behaviors
• •Structural match-how to get in through JV, branch office or subsidiary
• It is an essential pre investment activity by any foreign company that intends to set up or increase operations in India.

Our Business Model Feasibility Approach

Business model feasibility reports provided by the CERTILIZE are up to a definite methodology:

Evaluation on the Entry Route

We put in a comparative manner the pros and limitations of various entry modes:

• Liaison Office (LO): No activity which generates income is permitted
• Branch Office (BO): It is taxed like a foreign company and can only perform activities that RBI allows
• Project Office (PO): Project specific in execution
• Wholly-Owned Subsidiary (WOS): Full control and status of domestic company
• Joint Venture (JV): Availability of local market, shared risk.
• LLP/Partnership: Restricted sectors of FDI, transparent tax system

Feasibility Legal & Regulatory

We assess:

• Relevant FDI limits, operative limitations
• RBI, MCA and FEMA compliant
• Taxation, labour laws and repatriation rules
• Licenses: FSSAI, BIS, DGFT, Environmental Clearances etc.

Modeling of Financial Viability

In our reports we have:

• Estimation of capital expenditure
• Industry trend revenue forecasts
• Cost structure of operation in various states
• ROI projections, breakeven graph analysis and profitability graphs

Demand & Consumer fit

We make sure that your business model appeals to:

• Indian sensitivity to price
• Local tastes and product use behaviour
• Culturally induced factors of adoption
• Possibility of localization

Comparison of Partner and Control

We assist to evaluate:

• Whether a JV will be able to increase the time of entry to the market
• Threats of losing IP, control or brand equity
• Potential of franchise and licensing vs. establishment of full-fledged operations

Risk Assessment

We identify:

• Regulatory red flags
• The currency risk, the protection gap of IP
• Access to talent and training expense
• Bottlenecks related to supply chains

Sample Comparison: Entry Route Feasibility

Advantages of Business Model Feasibility Study

• Informed Decision- Making Prevent strategic pitfalls by comprehending regulatory, market and financial implications.
• Personalized Entrance – Pathway Pick the most optimal legal and tax framework that suits your objectives.
• Cost optimization – Cost optimization Avert any hidden costs, and make sure financial sustainability is a priori.
• Compliance Clarity- Be compliant to RBI, SEBI, and FSSAI as well as local licensing standards.
• Risk Mitigation -Determine possible legal, operational and financial issues as early as possible.
• Investor Confidence -Disclose feasibility reports to your board or other sources of funds.
• Market Readiness Value-Confirm whether your product or service requires localizing or repositioning.
• Scalable Framework -formulate a model that would enable scaling in the future horizontally or vertically.
• Operational Blueprint – Before entry, be familiar with the licensing, staffing and infra requirements.
• Sector Specific Insight- Insight tailored to the sector will be presented in our reports according to your industry.

Who is the Need of This Service?

• Manufacturers located in other countries intent to entering Indian market
• Retailers with international expansion on store plans
• The introduction of tech, SaaS, and fintech into the picture of Indian digital expansion
• Biotech, pharma and medtech companies conducting clinical and commercial assessments
• Indian projects bidders by infrastructure companies
• Exporters who want to set up domestic assembly plants or packages

What Our Feasibility Report Buys You?

• Executive Summary and Go / No-Go Decision
• Comparison of the Legal Structure
• Financial Model (Income, CAPEX and ROI)
• Licensing Compliance matrix
• Risk Map (SWOT + Action escape)
• The Recommended Entry Model
• Sector Trends Case Examples

Time Line and Process

• Week 1: Requirement Briefing and Document Review
• Week 2: Legal and Market research, Stakeholder Interviews
• Week 3: Drafting reports and financial model 3
• Week 4: Client wrap up presentation and report

Optional Add-Ons:

• Board Presentation deck
• Feasibility Summary Investor Pitch
• Licensing Support On-Ground

Just Start In India With Confidence

CERTILIZE enables foreign investors to make risk-reduced, data-irradiated and lucrative decisions with regard to the entry into India. Starting with selecting the most optimal business model to after setup services- we are your company in Indienscape.