HOME EXAMINATION

EMERGING MARKETS

MOHAMMAD MASHUKUL ISLAM

28/10/2022

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 A BUSINESS EXPANSION PROPOSAL

Figure 00: A glass with drinking water

This proposal is created for ClearWater NORDIC's India expansion. Clear Water Nordic features
drinking-water filtration and lake/river restoration technologies. This report used this expertise to
create ClearWater Nordic's Indian business plan.

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1.00 ABSTRACT
This paper aims to determine if ClearWater Nordic is a good fit for the Indian market for
sustainable water treatment solutions like drinking water filters and lake and waterway restoration.
Using recent research and data from the real world, I've concluded that India could be a good place
to do business because there is a lot of demand for clean drinking water there; the market is big, it
is in a good place politically, and lower cost of production. This article investigates the potential
offered by the scarcity of pure drinking water in India and the fact of water pollution in ordinary
water courses. Furthermore, the magnitude of India's population is a significant component for
ClearWater Nordic's faster and more sustainable business return.

2.00 EMPIRICAL ANALYSIS:

Figure 01: Drinking and open water in India

Humans, trees, and animals need clean water. Accepting this idea, I think the pictures show where
the crisis/demand is. What's better than earning money and contributing to a moral cause at the
same time? However, further knowledge and analysis are required to succeed on the global
platform. In the following section, I'll look at facts and academic studies that back up ClearWater
Nordic's choice to launch in India.

Let's examine India's prospects. After COVID-19, India is doing well, while some companies
are leaving China to do business somewhere else. Jaswal, Narayanan G, and Jain (2022) reported

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that Japanese companies exporting goods from China were considering shifting to Southeast Asian
countries, including India. Livemint (2019) also says that 200 US companies want to move their
manufacturing from China to India. Now, I will briefly evaluate the empirical evidence in India
for the feasibility analysis of the business.

2.01 ECONOMY

World Bank Country Report, India (2022)

• Population 1,417,173,173 • GDP per capita
• GDP o $2,466 (nominal; 2022
o $3.469 trillion (nominal; 2022 est.) est.)
o $11.665 trillion (PPP; 2022 est.) o $8,293 (PPP; 2022 est.)
• GDP rank • GDP by sector
o 5th (nominal; 2022) o Agriculture: 16.38%
o 3rd (PPP; 2022) o Industry: 29.34%
• GDP growth o Services: 54.27%
o 8.7% (2021) • Unemployment
o 6.8% (2022f) o 6.43%
o 6.1% (2023)
Figure 02: Economic Indicator World Bank Country Report (2022) India https://data.worldbank.org/country/IN

Subsequent economic growth, a vast domestic market, higher GDP, strong service and industrial
sector & affordable workforce strengthen India's economic potential (Jaswal et al., 2022). Other
than the pandemic years, India’s GDP has experienced substantial growth in last few years.

2.02 LEGISLATION
India is the world's largest democracy (Mehdiratta and Rahi, 2021). Since 2014, India's stable
government has focused on easing business. The initiatives have moved India to 63rd among 190
nations in ease of doing business (World Bank Report, 2021). In 7 of 10 categories, India is closer
to global best practices (World Bank Report, 2021). Goods and Services Tax (GST) law affects
the transportation of products across the country, and to make the process easier Indian government
enables foreigners to create a business in India using the Direct Taxes Code Bill, Land Acquisition
Bill (Rao, 2022).

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2.03 CULTURE

Figure 03: Dynamic culture of India

From a cultural standpoint, India is complex. In India socioeconomic status, education, social
class, and religion influence residents’ conduct (Jayantilal, Palacios & Jorge, 2015). People loves
to talk about current affairs, cricket, entertainment, and Indian economic reforms (Umadevi, 2020).
Indians frequently express gratitude and appreciation. Since it is disrespectful as per culture,
Indians do not communicate disagreements immediately (Umadevi, 2020).

2.04 MARKET
According to the WEF (2022), India is the world's largest market for manufactured goods and
services. While we look at the Indian consumer market, we see a diverse demographic with a
versatile age group dominated by youth, with equal gender distribution, a service-driven economy,
and a strong racial presence (Conway and Herd, 2009) as market characteristics. Muecke et al.
(2015) argued that the tropical climate, diversified territory, and dense population are geographical
features of Indian market. In India, psychographic characteristics include price-sensitive consumer
attitudes, ritual-influenced beliefs, and interests influenced by family and society (Umadevi, 2020).
In a nutshell, we can argue that India is a dynamic market with enormous potential

SECTION 3.01: ADVANTAGES OF DOING BUSINESS IN INDIA

ClearWater Nordic can benefit from India's increasing GDP, enormous working population,
simple tax systems, and business-friendly administration and legislation. Most people think
investing in India is the best method to make money and receive a high return. Let us see why?

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3.01(A) URBANIZATION
With 1.4 billion people, India is a substantial market for pure drinking water. India is a good place
to start water purification business because of its large population and water pollution. By 2025,
each of India's 69 cities would have one million residents (Dobbs and Sankhe, 2010). Meanwhile,
the Indian population, particularly the youth, is leaving the countryside for the cities & cities are
getting bigger and more crowded (Dobbs and Sankhe, 2010). Consequently, the rising demand
for pure drinking water is both a concern in cities and a scope of enormous business opportunities.
India is also among the worst offenders when it comes to water pollution, a problem that has only
gotten worse as the country has become more urbanized. The rivers, lakes, ponds, and other natural
sources of water are very polluted, and act quickly to fix the problem (Gary Lai, 2022) is vital.
ClearWater Nordic can use this insight to its advantage by rapidly expanding into India.

3.01(B) INVESTMENT FRIENDLY LEGISLATION

India's investment law was changed in 2015 to make it easier for foreign investors (Jaswal,
Narayanan, and Jain, 2022). Besides, the "Startup India Movement" of the Indian government
encourages foreign investment and economic cooperation. Foreigners don't need to live in India to
start a business and can do so in a variety of ways (Company Act, 2013). All these steps have
improved India's World Bank "Doing Business" ranking.

3.01(C) AFFORDABLE SKILLED LABOR

Starting a business in a new country requires employability. India has about 530 million worker
(World Bank, 2021) & 125 million Indians speak English well and know other Indian languages,
communication is easy (Khan, Pal, and Ghosh, 2020). The minimum wage in India is INR 178
(US$2.16) per day or INR 5340 (about. US$65) per month (Dezan Shira, 2022) which is a clear
advantage in any comparison.

3.01(D) COST-EFFECTIVE OPERATION

India's internet, phones, infrastructure, transportation, and labor costs are reasonably low & this
makes investing in India rewarding for ClearWater Nordic. Depending on share capital and
professional fees, starting a corporation in India costs only between INR 6,000 and INR 30,000.
(Jaswal, Narayanan, and Jain, 2022).

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3.01.(E) STRATEGIC LOCATION

Figure 04: India’s connectivity by land and water

Through the trans-Indian Ocean, Europe and East Asia are linked (Global Trade Atlas,2021). The
western coast of India connected to West Asia, Africa, and Europe, while the eastern coast
connected to Southeast Asia and East Asia. India also has land borders with Bangladesh, Pakistan,
Nepal, Myanmar, China, and Bhutan (Jaishankar, 2018). By using SAFTA, ClearWater Nordic
will have simple access to the market of Bangladesh, Nepal, Sri Lanka, Bhutan, Afghanistan, etc.,
which could aid the project in the long run.

3.02 DISADVANTAGES OF DOING BUSINESS IN INDIA

3.02(A) CULTURE
India is a country with a lot of different cultural traits, people who come from a different culture
than the polychronic culture may find it hard to adapt (Gersem, 2019). Before making an
investment in India, it is important to do cultural research.
Score Interpretation
Power Distance (PDI) – 77 Power and wealth disparity are high. In this society, managers expect
team members to obey them and employees expect to be told their roles
and responsibilities.
Individualism versus Collectivism (IDV) This shows a strong demand for social belonging. The employer-
– 48 employee relationship is founded on loyalty and familial protection.
Masculinity versus Femininity (MAS) India's visual demonstrations of accomplishment and power are
– 56 masculine despite its low score. Indians emphasize aggressiveness,
competition, and ambition.
Uncertainty Avoidance (UAI) – 40 This score shows Indians prefer avoiding uncertainty
moderately. People in India don't feel obligated to take action-
initiatives and are happy falling into routines. Medium to low

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 uncertainty avoidance cultures embrace risk-taking, desire change, and
tolerate difference or error wel
Orientation (LTO) – 61 In India, the truth relies on the seeker. India's strong long-term
orientation score suggests its members forgive tardiness, modifying
plans based on reality, and discovering the fated path as they go rather
than following an exact plan.
Indulgence – 26 India gets a low score of 26 in this area, which means that it has a
culture of moderation.
Figure 05: Hofstede score Analysis (https://incredible-india-cayla.weebly.com/hofstedes-cultural-dimensions.html)

Cultural Dimensions score by Geert Hofstede (2011) indicates that India's culture and resources
could be tricky. So, ClearWater Nordic if decide to operate there, it should have a clear plan to
deal with consumer & employee culture.

3.02(B) RED TAPE AND DELAYED PROCEDURES

An average company license in India takes 196 days (Sankhe, 2010). Registration is costly and
time-consuming. Even getting a power connection requires multiple procedures (Sankhe, 2010).
Hence, starting a business in India is bureaucratic and time-consuming.

3.02(C) COMPETITION
Key players in the Indian water purifier market include Hindustan Unilever, Kent, Ion, Tata
Chemicals, Godrej. and Whirlpool (Statista, 2021). Though, India is the most promising water
purifier market, both local and multinational players face fierce competition.

3.02(D) CORRUPTION
India's one of major business hazards are corruption. Theft of physical assets, financial crimes, and
information theft are prevalent in India, thus businesses considering India should be aware of this.
Before beginning a business in India, a thorough risk analysis is essential be conducted.

3.02(E) CYBERSECURITY
Cybercrime was India's biggest threat in the previous decade. Since then, India's IT industries are
more security-conscious. Miss use of social media and dissemination of information must be
monitored. Online rumors about the 2013 Muzaffarnagar riots and 2012 Bangalore cyber terror
strikes spurred massive evacuations and relocations (Bepari, 2020). I would suggest keep this in
the priority list.

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SECTION 4. RECOMMENDATIONS
To respond to outlined disadvantages, Clearwater Nordic could follow the below
recommendations.
4.01I recommend a contractual form of entry (Wild and Wild, 2020) for ClearWater Nordic; in
this instance, a Joint Venture could be less risky and more profitable. Here, the lessons from the
Uppsala model could be advantageous for ClearWater Nordic, particularly Vahlne and Johansson's
(2013 & 2017) analysis of the progression from early international steps. ClearWater Nordic could
exploit the local partner's market expertise, which is essential in a culturally varied nation, through
a joint venture (Wild and Wild, 2020).

4.02Secondly, I suggest Ethnocentric Human Resource Management (HRM) practices (Wild and
Wild, 2020). With this strategy, the home culture and host culture can coexist to establish the
company's culture. According to Hyder and Abraha (2021), p.62, experience learning influences
the technical and market competence of subsidiary managers, which impacts the performance of
the company. In a country as culturally diverse as India, ethnocentric HRM methods are strongly
advised for corporate success.

4.03For the India market, I feel defining product price (website/app) in INR will be instrumental.
This could potentially increase sale since users will be able to anticipate their costs. No longer
having to perform calculations will encourage them to purchase more (Philip D. Curtin, 1984). In
addition, the corporation should localize payments by accepting local payment methods, such as
Paysafecard, iDeal, Web money, Poli, Alipay, and others, so that users can pay in their local
currency. Accepting local payment methods can help ClearWater Nordic businesses attract clients.
Furthermore, changes in exchange rates might have a negative effect on your profit. If ClearWater
Nordic intends to transfer funds from India to its home country account, the local currency
exchange rate must be favorable to the company (Segal, 2022).

4.04Sweden and India have contrasting cultural and occupational norms. I highlighted India's
inexpensive labor force and lower production costs, but ClearWater Nordic must transfer
knowledge and establish a knowledge-based organizational culture there. Hippel (1988) defined
knowledge as practical abilities or aptitudes that enable an individual to perform a task

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competently. According to Gupta et al. (2008), businesses entering a new market should take a
global perspective, especially if there are significant cultural variances. In a foreign setting, global
thinking requires integration and differentiation. So, a well-articulated knowledge transfer process
is a must (Nonaka et al., 2000) for business expansion.

4.05Finally, I suggest conducting a feasibility study of India's consumer market and infrastructure,
particularly for ClearWater Nordic Filter Technology. Determine if ClearWater Nordic's solution
is suitable for Indian households. Sheth et al. (2016) suggest developing international expansion
plans based on acceptance, affordability, accessibility, and awareness. ClearWater Nordic should
implement this concept and tailor its strategies in India to local conditions. In addition, these
strategies must continually evolve and adapt in order to be effective and assist ClearWater Nordic
and its stakeholders in achieving their objectives.

Further, this study also suggests, ClearWater Nordic should keep the focus on Sustainability
Development Goals, particularly on the below three for the India project -
GOAL 3: Good Health and Well-being;
GOAL 6: Clean Water and Sanitation;
GOAL 7: Affordable and Clean Energy.

5.00 CONCLUSION
India, although having the fifth-largest GDP in the world and being one of the fastest-growing
nations of the decade, maybe a challenging country to establish a business. This report analyzed
the advantages and disadvantages of conducting business in India. The good part shows that India
is desirable because it has a big market, cheap labor, good laws, etc. On the other hand, the
disadvantages include a dynamic culture, corruption, and fierce rivalry. This proposal included
ideas for how these obstacles can be addressed and how ClearWater Nordic could capitalize on its
advantages. In addition, this report also says that India's consumer behavior and infrastructure
should be carefully looked at. If ClearWater Nordic takes a strategic, well-planned approach in
India, will undoubtedly win the game.

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6.00 REFERENCES
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700b818be35a
4. Company Act, 2013, The Companies Bill, Parliament of India
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reas%20and%20other%20criteria.
clean-water
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13. Ilker Koksal,2019,Why Businesses Need Diverse Payment Options, Forbes,
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 of Indian family firms impact on successor selection, Problems and Perspectives in
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LIST OF FIGURES:
a) Figure 00: A glass with drinking water;
https://www.google.com/search?q=A+glass+with+drinking+water&rlz=1C1CHBF_enSE
990SE990&sxsrf=ALiCzsbf5Ch5SHPswIvKxaoCayY2wKHjgw:1666916241147&sourc
e=lnms&tbm=isch&sa=X&ved=2ahUKEwim3bHz0oH7AhVP_SoKHd2bB2UQ_AUoA
XoECAIQAw&biw=1422&bih=641&dpr=1.35#imgrc=rpfk8BufP9JvKM
b) Figure 01: Drinking and open water in India,
https://www.google.com/search?q=Drinking+and+open+water+in+India&tbm=isch&ved
=2ahUKEwj79dH00oH7AhXLs4sKHZPUB18Q2-
cCegQIABAA&oq=Drinking+and+open+water+in+India&gs_lcp=CgNpbWcQAzoECC
MQJ1DYDljYDmD5EWgAcAB4AIABPYgBdpIBATKYAQCgAQGqAQtnd3Mtd2l6L
WltZ8ABAQ&sclient=img&ei=kx9bY7vgLsvnrgSTqZ_4BQ&bih=641&biw=1422&rlz
=1C1CHBF_enSE990SE990#imgrc=xzzlA6UJAFyGaM

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 c) Figure 02: Economice Indicator World Bank Country Report (2022) India
https://data.worldbank.org/country/IN
d) Figure 03: Dynamic culture of India;
https://www.google.com/search?q=indian+culture&tbm=isch&ved=2ahUKEwizvL_bv4
H7AhWOxosKHbH2C6YQ2-
cCegQIABAA&oq=indian+culture&gs_lcp=CgNpbWcQAzIECCMQJzIFCAAQgAQyB
QgAEIAEMgUIABCABDIFCAAQgAQyBQgAEIAEMgUIABCABDIFCAAQgAQyB
QgAEIAEMgUIABCABFCNEFi3FGC_F2gAcAB4AIABQYgBrwGSAQEzmAEAoAE
BqgELZ3dzLXdpei1pbWfAAQE&sclient=img&ei=cgtbY7O7Lo6NrwSx7a-
wCg&bih=641&biw=1422&rlz=1C1CHBF_enSE990SE990#imgrc=vf5kOhsyi1dIoM
e) Figure 04: India’s connectivity by land and water,
https://en.wikipedia.org/wiki/Spice_trade
f) Figure 05: Hofstede score Analysis (https://incredible-india-cayla.weebly.com/hofstedes-
cultural-dimensions.html)

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