Entry strategies of Indian firms

India’s economic integration with the rest of the world was very limited because of the restrictive economic policies followed until 1991. With the new economic policy ushered in 1991 there has, however, been a change. Globalization has a buzz-word with Indian firms now and many are expanding their overseas business by different strategies.

1. Indian Exporting

 Exporting is, by far, the most important entry route employed by Indian firms. Several Indian companies have entered foreign markets targeting their exports at the ethnic population. West Asia, with a large expatriate Indian population, naturally is the first target in many of these cases.

2. Indian Foreign Investment

 Foreign investment by Indian companies has so far been very limited. With the economic liberalization and growing global orientation, many Indian companies are setting up manufacturing/assembling/trading bases aboard, either wholly or in partnership with foreign firms. A number of large and small Indian companies are investing abroad as part of their globalization strategy.

3. Indian Mergers and acquisition 

 Vijay Mallya’s U.B. group acquired a small British company, Wiltshire Brewery. A number of other Indian companies have also resorted to acquisition of companies abroad to gain a foothold in the foreign market and to increase the overseas business. 

4. Indian Joint Ventures 

 Joint venturing is a very important foreign market entry and growth strategy in the context of the Indian firms in resources, technology and marketing. The Essel packaging has taken the joint venture route to expand its business aboard.

5. Indian Licensing and Franchising

 Many Indian firms can use licensing or franchising for the overseas market; particularly the developing countries. Ranbaxy has licensing arrangement in countries like Indonesia and Jordan.