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Angmo companies buay tahan doing business with ah neh... all packing up and going

Rogue Trader

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Asset
Walmart divorce highlights pitfalls of business in India

20121123.150832_reuters_walmart.jpg


AFP

Sunday, Oct 13, 2013
NEW DELHI - The divorce between US giant Walmart and its Indian partner, the latest in a string of foreign corporate alliances to founder, will have a further "chill effect" on vitally needed foreign investment, analysts say.

Citing restrictive foreign investment rules, the world's biggest retailer scrapped a partnership last week with Indian telecom heavyweight Bharti Enterprises and suspended plans to open supermarkets which could have tapped a potential market of 1.2 billion shoppers.


Foreign investors are already spooked by worries over a number of issues: pervasive corruption, red tape, stop-start efforts to open up Asia's third-largest economy, tax battles, decade-low growth and a weak currency, analysts say.


Strict regulations for outside firms include a requirement to source 30 per cent of goods from small industry - a deal-breaker for Walmart, which said the goal was impossible to meet.


"This will have more of a chill effect," Saloni Nangia, president of management consultancy firm Technopak, told AFP.


"From a destination perspective, foreign firms want to be in India. But from a policy and doing-business perspective, it's different," she said.


"The government needs to make this country investment-friendly. So far it's been pure posturing."


The Walmart-Bharti break up is one of a long saga of unhappy endings to marriages between foreign and Indian partners, Nangia noted.


"It can be mismatched expectations to blame, disappointing returns, government vacillation on implementing policies, legal and regulatory concerns, ambiguities about what can be achieved - sometimes a mix of elements," she said.


Walmart president Scott Price said the company would "continue to advocate for investment conditions" that would allow it to invest in multi-brand retail while it focused on its wholesale operations in India.


Many foreign firms had high hopes of India's liberalisation drive and voiced strong interest in entering the country.


But those plans have soured in the face of failure to improve infrastructure, long approval delays, bureaucratic hurdles and graft - which has its tentacles in all sectors of the economy.


"No company can operate without greasing a palm here or shelling out unaccounted amounts there," said The Economic Times in an editorial.


That issue has become increasingly crucial, especially in the United States, where laws like the Foreign Corrupt Practices Act are making it tougher for India to absorb foreign direct investment (FDI).

"Corruption is one of the most significant challenges adversely affecting the Indian economy," Toby Latta, head of Control Risks in Asia-Pacific, told AFP.


Walmart's woes in India go beyond sourcing troubles, with Indian authorities probing whether a loan by the retailer to Bharti broke foreign investment rules. Both firms deny wrongdoing.


Walmart is also under US scrutiny over its overseas operations amid bribery allegations - which it rejects - in Mexico, Brazil, China and India.


"This scrutiny by their home countries is a big deal for foreign companies," Alina Arora, a partner at Luthra and Luthra Law Offices, told AFP. Alleged corruption led to Norway's phone giant Telenor snapping ties last year with Indian partner Unitech after India's Supreme Court revoked 122 mobile licences following charges they were illegally issued.


UAE mobile operator Etisalat closed its India business and split from local ally, DB Group in a decision also stemming from the ruling, and accused its ex-partner of "fraud" - a charge DB rejects.


While Telenor, which took a $720-million writedown, has pursued its operations in India, Etisalat said it would only reconsider re-entry when there is "greater legal and regulatory certainty".


Also last year Italian carmaker Fiat ended a distribution pact with Indian vehicle giant Tata Motors which said the joint venture was not generating expected sales.


Automotive major Mahindra & Mahindra has seen three global vehicle partnerships go sour - with Ford, Renault and most recently in January with US engine maker Navistar International.


"The Indian market has not expanded as we originally expected," Navistar president Troy Clarke said at the time.


Now, with elections to be held by May 2014, analysts say there is scant hope the scam-tainted and unpopular Congress-led government will take significant steps to make India more appealing to foreign investors.


The government says it has no plans to relax its sourcing rule on foreign supermarkets.


Even though India aims to attract $1 trillion in FDI by 2017 to upgrade shabby infrastructure in order to boost growth, foreign investment faces hostility from many politicians who say it threatens jobs, especially in the retail sphere, which is dominated by small family-run stores.


"We're going to be in wait-and-watch mode at least until after the elections" in the first half of next year, said Technopak's Nangia. "It's only India which is losing out in the meantime."

 

AktifSingh

Alfrescian
Loyal
Bhai, it's not our fault. All foreign businesses have to totally integrate with our business culture and best practices. Nevertheless, we are eternally grateful for the FTA with Singapore and her integration efforts of all things foreign. May the Lord Brahma bless our unique relationship for eternity. Namaste.
 

rushifa666

Alfrescian
Loyal
thailand is the better place to do that. average of 5% gdp even with the protests, even with the disasters. cheaper never means better. look at the india clothes factory which burned down
 

cunnosieur

Alfrescian
Loyal
<iframe width="640" height="360" src="//www.youtube.com/embed/xU1Zj-UIEBw?feature=player_embedded" frameborder="0" allowfullscreen></iframe>

5 Ds of Indian FTrash PUNDEKS...

DRINKS
DRANK
DRUNK
DRAMA
DETENTION
 

wMulew

Alfrescian
Loyal
India like the US is being pulled back by Democracy. Every time the government wants to do something right for the country the opposition will stop them.
 

tonychat

Alfrescian (InfP)
Generous Asset
India like the US is being pulled back by Democracy. Every time the government wants to do something right for the country the opposition will stop them.

what kind of bullshit is that.

democracy will prevent a sinkieland from using 1 billion to invest in a Thai telecom and later protest out by Thai and lose the 1 billion. Stupid sinkies cause this by waiting for 2011 and now 2016.
 

B Man

Alfrescian
Loyal
Honestly, the only people that have good things to say about working with Indians are Indians themselves and people that have never been to India nor worked with Indian companies.

Any companies who have had such working experience would never want to work with them "ever again". Ang mos included.

Usual complaints:
- Poor working attitude (late/slow/cannot understand simple english)
- Over commit, under deliver
- Money goes into a bottomless pit
- Incredible amount of govt red tape
- Over declared workforce (100man team declare 1000 man team)
- 1 man work, 3 man supervise...
- Corruption rampant and is necessary to get anything done
- workforce divided by caste and social divides (some will flatly refuse to work with another coz of caste differences)


Walmart divorce highlights pitfalls of business in India
 
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borom

Alfrescian (Inf)
Asset
HSBC to exit India retail broking......

MUMBAI, Oct 17 (Reuters) - London-based HSBC said on Thursday it will exit its retail broking business in India, the latest global bank to scale back operations in the country.
About 300 jobs will be cut .......... the bank decided to exit the business due to stiff competition in retail broking and low earnings potential...............

HSBC, Europe's biggest bank, has exited about 50 businesses globally since Chief Executive Stuart Gulliver took over at the start of 2011, including recent profitable sales of a $9.4 billion stake in Ping An Insurance and its $2.1 billion Panama business.

HSBC, one of the three biggest foreign banks in India, was also said by sources to be in talks to sell a stake in its life insurance joint venture in India.

Global banks have scaled back non-core operations, including in India, where the economy grew last year at its slowest in a decade. Royal Bank of Scotland recently sold its Indian commercial and retail operations, and Morgan Stanley sold its private wealth management business in the country.

India's brokerage industry is fragmented and competitive, with low commissions and sluggish business, and several smaller brokerages have closed up shop in recent months.

"Thousands of small brokers have exited and many are exiting everyday," said Sudip Bandyopadhyay, CEO of Mumbai-based brokerage Destimoney Securities.
http://uk.reuters.com/article/2013/10/17/hsbc-india-idUKL3N0I72Y320131017

Another episode of why more and more Ah Neh ponding here-welcome with open arms and given special treatment by the pappy.
Cannot survive in own country is called talent here-uniquely sillipore.
Thanks again to the 60%-they better get ready for their kids to lose their jobs to the ah neh 'talent'.

Will Tummysick be living up to its reputation of buying when others are jumping ship -using our hard earned reserves and public monies to support ah neh companies/economy!
 
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Scrooball (clone)

Alfrescian
Loyal
Honestly, the only people that have good things to say about working with Indians are Indians themselves and people that have never been to India nor worked with Indian companies.

That's not true. Even ah neh colleague of mine complains about doing biz with companies from India. Own kind discriminate themselves. Like this got hope? You say lor.
 

congo9

Alfrescian
Loyal
Even ANG mo WALMART also cannot stand working with these Indian. What make we think HO CHING and their brain dead scholars can ?
 
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