Market Feasibility Study
Feasibility study is the formal understanding and study of the scope and changes of success of the product in the market. Hence it is important for any company to carry out the feasibility study before the launch of the product in any market. Especially in a very new market, the product feasibility study is carried out keeping in view the product, its characters, features, pricing and the nature of Industry. Following are some of the very important aspect and areas covered in the feasibility study for any product.
Current Market Environment
- Market size of the product (Volume and Value)
- Competition – Major Players and Market Share
- Pricing structure
- Distribution Channel
- Packaging
Customer Behavior
- Customer Profiling
- Demography/ Physiography of Customer
- Understanding Customer Behaviors
Supply Chain
- Product import Country
- Domestic Sourcing option
- Nearest ports for Imports
Strategy / Launch Plan
- Type of Distribution Agreement
- Proposed Product Pricing
- Channel of distribution
- Promotion & Marketing
- Sales Plan
- Organization & Manpower
Business Plan Projection
- Tentative Profit & Loss Account
- Tentative Cash Flow
Feasibility Study – Location
Geographically India is very wide and versatile, it has 35 States and 4 Metro Cities, handles majority of business of India. In the previous 15 years India has developed multifold and there has been lot of work done in the Real Estate & Infrastructure sector. The governments have become friendly and now the states are providing best of facility to attract the Investment in India. Every state has its unique benefits with respect to the sector they attract.
It is really very important for the foreign company to understand the location of its business before deciding on the location of its business. Some states specialize in IT Sector and some are into manufacturing and Oil etc.
If the foreign Company plans to enter at a trading Company in India then it is important to understand their sourcing hub in India or the import country for India and this leads to finalizing proper location to import at a port that can help the proper distribution of their product across the market in India.
For the companies looking to setup manufacturing facility in India it becomes more important to assess the location w.r.t understanding the various types of infrastructure they would be requiring to setup the manufacturing facility.
Our report on the feasibility study helps the foreign company to know the following important information on the location search:-
- Availability of Land
- Easy of Sourcing
- Customer Reachability
- Availability of Infrastructure
- Government friendliness
- Taxes & Financing structure
- State Incentive & Scheme
- Availability of Manpower skilled & Semi skilled
- Regional Attributes
- Transportation features of Location
The above given are some of the important factors Company should know, The scope can be mutually decided with the client and accordingly the study can be made to understand the client requirement.
Feasibility Study – Taxation
Indian tax structure is not really very easy to understand, there are many types of taxation applicable in India to business running in India. Sometimes it is difficult to understand by the Indian business community. So understanding the same by foreign Company become more complex after comparing these structure with that of the developed economies in the world.
In order to take decision on the India Entry, it is really very important for the foreign company to understand the complete structure of Taxation applicable to them once they are operating in India. This is where they these company need to have proper consultant to understand the implication of these structure in India.
We carry out the feasibility report of the complete tax structure that would be applicable to these foreign Companies once they are established and registered in India. Ideally the report on the taxation covers the following taxes applicable on the trading, manufacturing and import export Companies.
DIRECT TAXATION
- Taxation on Income
- Tax Deduction at Source Withholding Tax
- Dividend Distribution Tax
- Advance Tax
INDIRECT TAXATION
- Goods and Service Tax - GST
- Professional Tax
- Custom Duty on Imports
Consolidated report providing you information on each and every aspect of various taxes applicable to your business including the details on the dates of payment and filling of return by the Company. Various details relating to exemption, Government Notification or special benefits from government of India. Option to avail the setup of taxes paid on the input of raw material etc.
Report along with our consultation plays very vital role in the clients decision making for its product placement in India and helps them to take decision to enter the Indian market.