The Indian market is essential for European Union (EU) companies

• Large and growing domestic market; increasing purchasing power and consumerism.
• Provides opportunities for competitive advantage (low cost sourcing of products and services; exceptional quality; intellectual skills; etc).

EU companies are already taking advantage of India

• The EU is one of India's largest sources of FDI and trade.
• EU companies comprise 50% of all Multi National Corporations (MNCs) in India.
• Many see India as key to their long-term global growth and competitive advantage.

Investments in India are yielding returns

• Companies have begun to capture local market opportunities (especially in niches).
• Many are also sourcing from India (resulting in lower costs and higher productivity).
• Some are even more successful than their global operations.

But the road hasn't been easy, and companies faced several challenges

• Bureaucratic hurdles and government processes resulting in a difficult operating environment.
• Low average disposable income, a highly dispersed population and distinct tastes from the rest of the world.
• Weak infrastructure in terms of roads, power, telecom, and port facilities.

To guide your company, this report presents 10 factors that companies have used to become successful in India. These have been identified based on benchmarking successful EU MNCs operating in India

Success factors fall under three categories:

1. Commitment at the global level; provide global support and technology;
2. Empowered local management; develop local team autonomy and capability;
3. Localized Product/Market Business Models: create customized products and services in response to the unique environment in India.

Most companies have implemented the majority of the success factors, and not just one or two.

Successful companies differ from less successful players in their ability to rapidly adapt their business models for India

• Most companies recognize the need for local adaptation.
• However, implementation is more difficult than it seems - it requires a deep customer understanding and building scale in India while managing complexity.
• Three key areas require adaptation (in additional to several others) - a strong product value proposition, "smart" localization of manufacturing, and robust supply chains.

Successful companies view India as a long-term play, not a short-term turn

• Success in India did not happen overnight.
• Success requires commitment, management drive, and focus on long-term objectives for India in the global portfolio.