Benefits of manufacturing in India

Discussion in 'Press Releases' started by fispl, Jul 17, 2006.

  1. fispl
    Joined: Jul 2006
    Posts: 9
    Likes: 1, Points: 0, Legacy Rep: 17
    Location: Goa India

    fispl GRP BOAT SOLUTIONS

    For any large scale manufacturer or broker the benefits of manufacturing in India are many. The foremost would definitely be access to a market which is likely to grow manifold in the near future. A society which is progressing economically by leaps and bounds every day is sure to be the next big destination for a luxury industry market. However present projections give India until about 2010 till sale of recreational vehicles pick up. Marinas are already well under construction and the affluent have started wondering what is to be done with the excess money. It is only a matter of time before the thunder strikes.

    Apart from the future scenario to say the very least India is well placed to be an excellent outsourcing hub for the present. The prices of machinery, equipment as well as GRP raw materials for boats like resins and glass fibres are almost the same as the rest of the world. However the composite boat industry being a labour intensive one, the cost benefits in labour is still huge (although probably not for an extended period of time). Also the prices of fabricated or casted fittings are way more competitive than in the western world. These factors alone return a huge benefit in cost and the same may be passed on to the end consumer. Detailed Cost Benefit Analysis has shown even with the added cost of transportation this saving is enormous.

    India has a distinct advantage with regards to geographical location. Its place right in between the far east and the middle east makes it a natural hub for the business of supply for the region. This is also an avenue which is probably not yet fully exploited. Overall it seems a pretty encouraging picture of things to come.

    For more details on the subject please visit http://www.fispl.com/boatsfaq_companies.html

    Your feedback on the above thread is solicited.
     
  2. Frosty

    Frosty Previous Member

    You Know I think most people will already be aware of this. The problem is and I dont know about Goa, is can foriegners own land or even work there. I am used to being a second class citizen in foriegn countries. I would love to be able to do something with out making up micky mouse companies or using trustess name who are not very trustworthy to get around this problem.
    Most coutries round here any way are mostly similar in that atitude. There is also ways of buisness the local way, "Oh you are making lots of money, you are going to sell your buisness to me for this much"( pionting gun at head)

    Sorry to be a realist but Ive lived out here in the East a long time. They say never bring in more money than you are prepaired to loose.

    Now if you going to invest with government backing and you are say goint to make Ford trucks under license then thats different.

    Openeing a small boat yard with a trustee wife and dealing with the locals yourself. Keep your money in the bank.

    Now if Goa says you can own land and work and open bank accounts own cheque books, driving licenses, register a vehicle in your name ( All difficult in Thailand) then that would be different. Untill then its the same as every where else.
     
  3. fispl
    Joined: Jul 2006
    Posts: 9
    Likes: 1, Points: 0, Legacy Rep: 17
    Location: Goa India

    fispl GRP BOAT SOLUTIONS

    Doing business in India

    Thanks for your excellent remarks Jack.

    Here are few of your concerns elucidated. I am not a lawyer, nor am I an expert in international business. However I saw your post & did some basic digging which laymen (from the legal standpoint) can figure out & build upon.

    As for owning land in India. From what I understand there is some kind of law which prohibits foreign nationals from owning residential land in Goa, only until they secure a residency permit. However we are talking business here. There is absolutely no problem with a registered company owning land in Goa for legitimate business purposes. It could be an Indian company or the subsidiary of a foreign company registered in India. Now this I think makes sense. We are talking about outsourcing opportunities in this thread. As a means to this end there has to be a company which wants to do business themselves in India (by registering a subsidiary in India which isn't too much hassle) or get their job done by an Indian company, either individually or through a joint venture with an Indian company which again is pretty simple to register. For this kind of a concern there are no legal hindrances of owning land & doing business here. Yes as the owner or employee of this kind of organisation you are automatically entitled to credit cards, driving licences etc etc.

    Having said the above I see no reason why any mickey mouse business has to be resorted to, to carry out a legitimate business venture. One of the reasons India is on the "hot business destinations" map is because things do work here & the advantages are many as I pointed out earlier. I am not saying that there is no corruption & hanky panky going on in the government, but these are at managable levels. I have not heard of "locals pointing a gun at foreigners heads & taking over their businesses". Sure there might be an isolated case or two of theiving or mugging - point is isn't it everywhere? Obviously people are doing a hell of a lot of profitable business & the fantastic growth over the last few years has become economic folklore. Well except China I don't see such stupendous success stories with any other economy in the region.

    Goa is a very cosmopolitan place & there is a huge number of foreigners who have made it their home here - for business or for pleasure. It is an ideal destination for doing business as the govt also gives a lot of breaks to business ventures. We have been based here since 1979 & are still running a very successful business which is growing manifolds lately.

    Lest this post become too long & boring I'll stop here & please people let's have some more posts on here on this very interesting & important issue. I hope to clear a few misgivings on this forum. On a lighter note whats the icy crispy chilly elf doing in warm Thailand??
     
  4. Frosty

    Frosty Previous Member

    Icy crispy chilly elf???? you got me there!!!

    Yes you probably can own land after obtaining residency but what does that entail/
    Yes you can own land after reg a company, a mickey mouse one set up for the sole purpose of getting around foriegn land ownership laws. I think you will find that 49% will be the max amount of foriegners allowed to hold shares of the company. The other 51% being that of the lawer his driver , gardener, cleaner etc

    All this trouble in a language that is not your own, laws, contracts all in a forign language.
    Unless you are a National this is not a very nice atmosphere on which to have bounding enthusiasm.
    Would it not be therefore better to open companies in your own country. I cant help thinking therfore why so many Indians come to England to prosper if they could go to Goa.

    Might I suggest you tell us who you are and what you call successfull, how did you do it , how many employees etc.
     
  5. fispl
    Joined: Jul 2006
    Posts: 9
    Likes: 1, Points: 0, Legacy Rep: 17
    Location: Goa India

    fispl GRP BOAT SOLUTIONS

    FDI Confidence Index 2005 figures

    What I am having a wee bit trouble understanding here is how Mickey mouse is coming into the picture. We’re talking about a legitimate business venture. Mickey mouse really doesn’t have any place here.

    I have only tried to enumerate a few benefits of doing legitimate business in India. Of course every country have their own rules & fortunately or unfortunately you have to play by them. The point is how badly do the rules affect you? Are the benefits at the end of the day worth the rules you’re playing by? Here is a page below which everyone might find very helpful in understanding the nature & scope of this discussion. Let’s not forget we’re talking about the macro aspects here. Once you are convinced of the macro elements the micro issues usually sort themselves out.

    Here is the promised page – the international FDI confidence index of 2005. Please do take a look as it quantifies most of what I have been saying.

    http://www.atkearney.com/main.taf?p=5,3,1,140,1

    http://www.atkearney.com/main.taf?p=5,3,1,140,10

    No doubt India is still weak especially on its infrastructural strength. However seeing the rapid pace of development around me, it only leads me to believe that there is much more growth potential in a behemoth which is already the 2nd most attractive investment destination in the world.

    Now back again to your concerns.
    A residency permit for India is just like any other country, you fill out the forms, submit the supporting documentation & then you wait. It normally doesn’t take a very long time (about 2-3 months I think).
    Indian laws have increased FDI caps on most industries to 74% from the existing 49%, so you can in fact own most of the shares in the company (also mentioned in the above report that I have cited).
    There is no question of understanding a foreign language as all paperwork here is done in english. This is also cited as one of the biggest plusses of India.
    As for so many Indians going to England – there is no doubt people will seek a better life. India offered a very limited & protected business environment for a long time. Hence lots of people did move away to England. However if you look at very recent trends those same people of Indian origin are doubling back to invest in India as these are the people who probably smell an opportunity better than any of us. I cannot cite exact figures but I’m quite convinced that the mad rush to leave has dwindled due to the excellent opportunities back here at home. There’s no place like home is there?
    As for investing in your own country – why not? This was just an opportunity which has been highlighted. It is a fact that you cannot have as much security anywhere else except your own home country. I agree with you on that.
    What we do etc.? Please visit our website below & you can get an idea. However this discussion was not about you or me, but of a more macro scale.

    And hey Jack keep the comments coming. You’re the best when it comes to a healthy debate. :)
     
    1 person likes this.
  6. SeaSpark
    Joined: Mar 2006
    Posts: 593
    Likes: 17, Points: 0, Legacy Rep: 96
    Location: Holland

    SeaSpark -

    Samples of your work

    Hoi Fispl,

    Could you post some more sample pictures of pleasure craft you have build?
    I looked on your website but could not find good high resolution pictures. Some images of construction details on the craft also would be very welcome.

    I strongly believe the labour intensive boating industry deserves a place in countries where labour is still affordable.
     
  7. Frosty

    Frosty Previous Member

    As you had to make enquiries into a residency permit, I then assume therfore that you are a National. I would be interested to know what the criteria is for this residency. I ask because here in Thailand it is a bit more involved than filling in some forms and waiting.
    For instance one of those forms would be a marrage certificate of yourself to a local, and how many kids you are supporting. Rather a drastic procedure when you just wanted to make some boats. You will need to have been here for a number of years and take a language test. Then you pay about 4000 dollars. Then you sit and wait---and wait.
    It is quite likely that Goa will be similar.

    I appreciate that you input is meant to be for larger investors with government assistance than your average 'Joe Bloggs', as your opening statement of your original thread starter immplies. However from acorns do oak trees grow. So we agree? Goa is no place for acorns.
     
  8. Ari
    Joined: Jan 2006
    Posts: 421
    Likes: 15, Points: 0, Legacy Rep: 94
    Location: Port Dickson, Malaysia

    Ari Patience s/o Genius

    Red tapes..

    Ahh..I face the same problem in Indonesia..eventhough I don't mind much about having another wife there..but..the two very sweet dragon that I have do really team up and convinced me that it is too risky to pay a visit there without their escort..!
    Before I'am granted the work permit to work in Singapore..I had to sign a form of commitment that I will not make pregnant any Singapore lady during my stay there..he..he..
     
  9. bhabanism
    Joined: Feb 2006
    Posts: 23
    Likes: 0, Points: 0, Legacy Rep: -6
    Location: www.yahoo.com

    bhabanism Junior Member

    You dont need to be a citizen to own land in India - Has Bill Gates taken Indian citizenship? Miscrosoft is manufacturing in India.
     
  10. Frosty

    Frosty Previous Member

    India is a filthy disgusting place. A horrifying experience to the visitor, the only way to not get sick is to eat canned food or take your own. A place where cows wander the cities. A place where people sell there children. A place where children purposley have there limbs amputated or distorted (against there will) so they may have the blessing of a sound income -begging.

    Would a place such as this refuse the richest man in the world buisness rights?

    Bill and his new found philantropy probably doesnt care about profit ,--just a legitimate way of directing some money to the poor with out bothering the government.
     
  11. Figgy
    Joined: Feb 2006
    Posts: 315
    Likes: 12, Points: 0, Legacy Rep: 88
    Location: Boot Key

    Figgy Senior Member

    uhhh, wow Jack, very......enlightening.
     
  12. hansp77
    Joined: Mar 2006
    Posts: 690
    Likes: 34, Points: 0, Legacy Rep: 200
    Location: Melbourne Australia

    hansp77

    If boats don't work out for you- you could always try for a job writing travel guides:D
    Frosty Planet guides...



    lets just say india is not for everyone.
    But neither is any place.
    I have many freinds who call India their favorite place,
    yet my father and his partner recently got drugged and completely robbed from within their hotel room in Ko Samui.
    each to their own.
    there aint anything horrible happening in India that isn't happening in numerouse places over the world.
     
  13. Frosty

    Frosty Previous Member

    I think you might have left a little bit out of your Ko Samui storey. To be drugged and robbed is frequent if you take a girl from the street home with you. Some one must have been there to drug them!!!! A forced entry into a occupied hotel room I have never heard of.


    Frosty planet guide,---Mmm--it does have a ring to it.
     
  14. hansp77
    Joined: Mar 2006
    Posts: 690
    Likes: 34, Points: 0, Legacy Rep: 200
    Location: Melbourne Australia

    hansp77

    I certainly left out a lot of the story. Personal details I guess.
    Short story, someone gained access to their locked hotel room (not a cheap one and nothing dodgey involved) and sprayed them in face with anaesthetic spray. Robbed them clean. Probably inside job. The spray could have killed my dads aestmetic partner. Their faces were swolen for months.
    It happens.
     

  15. Frosty

    Frosty Previous Member

    sorry to hear that. Ive never heard of any thing like that before.
     
Forum posts represent the experience, opinion, and view of individual users. Boat Design Net does not necessarily endorse nor share the view of each individual post.
When making potentially dangerous or financial decisions, always employ and consult appropriate professionals. Your circumstances or experience may be different.