Business Plan to launch VALTEC AUTOMATION in India Essay


The chief aim of this study is to suggest a Business Plan to administer and offer Automation Solutions for assorted sorts of Valves in Indian Market. The chief motivation behind fliping into this market is to tap the ageless demand for valves in assorted procedure industries, steel, chemical & A ; Oil and Gas industries.

The study below has been sculpted out by sing the market conditions, intrinsic and extrinsic factors, environmental conditions and besides the assorted concern parametric quantities. Based on the above and along with that establishing my B.E. in Electronics & A ; Instrumentation Engineering and three old ages of experience in a similar industry, a clear cut scheme has been jotted down to be after, form, launch, proctor and command the concern of “ Valtec-Automation ” in Indian market.

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Insight into Valves

Valves form a really built-in constituent in shrieking systems. The primary method of regulation and controlling force per unit area, way and flow of fluids is accomplished with several control valves.A Depending on the scenario, a valve may be operated continuously e.g. control valves, or really seldom e.g. Safety Valves, or intermittently e.g. isolation valves. A valve can be really simple, low cost point or it may be really much complicated, dearly-won item.A In shrieking design the valves likely require more technology attempt than any other piping constituent


The prognosiss convey that the demand for industrial valves globally would increase yearly by 4.4 per centum through 2011, driven by an encouraging index of growing in developing states and a impetus towards much more expensive automated valves and actuators in developed states. India is one among the states which would see the fastest market additions.

Market Analysis

Target Market

The Indian market offers enormous chances to foreign investors with one billion populations in manus. The investors could see monolithic growing and enlargement here. Indian economic system is turning at a faster rate compared to other states. the major sectors like energy, environment, substructure, transit with their increasing demand forces foreign investors to come in Indian market. India GDP has registered 6.7 % growing in the period 2008-09 but it has the capacity to prolong the growing rate of 8 to 10 % in the nearing old ages. The current growing rate is disposed for the investors.

Valve Market in India

The valve industry is bettering twenty-four hours by twenty-four hours. Manufacturers are utilizing new engineerings such as latest proving and fabricating equipment. So demand for valves is seen in about all countries, particularly in nucleus sectors of metal and excavation, oil and gas, pharmaceuticals, drugs, nutrient and drinks etc for de-bottlenecking, enlargement of capacities and care intents. By utilizing these engineerings there is amazing betterment in the coating of the valves and they are of good truth. the valves distributed by Valtec has smart rotary actuators as control system. Furthermore, it is made of low noise and low emanation alien stuffs.

The valve market is big plenty to offer a broad assortment of chances to all makers irrespective of the sort of operations. The market, by and big, is shared by different makers based on trade name name, engineering, fabricating capacities and monetary value fight. Today India is a big manufacturer of valves and it besides plays a function in bring forthing top category merchandises of the universe. The quality of valves produced in India is used by domestic users based on the service and application. However the big administrations present in cardinal sectors opt for merely best trade names after a examination of offers based on the application. The state besides has little makers who have their ain niche markets. The growing in the valve industry is expected to go on at 7-8 per cent per annum. Due to India going competitory the growing in exports is expected to be 10-12 per cent per annum. Catching all these advantages of this market, Valtec would be fliping in to the valve market of India along with Valve Automation solutions. This is observed to be the right clip to brush away a big part of this market section.


Beginning: Exim Bank


Beginning: Exim Bank

Benefits of set uping in Indian market

aˆ? For companies established in particular economic zone several revenue enhancement freedoms are made available

aˆ? IT companies have revenue enhancement inducements

aˆ? Many states are in dual revenue enhancement pacts with India ;

aˆ? A private company in India can be made with a minimal capital of INR 100,000 ;

aˆ? Skilled employees are available at nominal rate.

Obstacles in Indian Market

Rigid and complex societal model

Indian Bureaucracy

Infrastructure issues

India is a state with varied civilizations and therefore major alterations in societal construction are boring to implement. However, the mentality is easy altering and authorities is seeking their degree best to do effectual alterations. More Attempts are made to cut down on the red-tape. Poor route conditions and deficit of power supply are some of the infrastructural jobs in India that needs to be resolved every bit rapidly as possible. However, utile steps are adopted by the authorities in these countries every bit good to pull foreign investors to the state. Eight highways undertakings has been finalised that will necessitate an investing of Rs 10k crore.

Hence, with the stairss taken up to better the state of affairss, entry into the Indian market will no longer be a boring procedure.

Business Analysis

Type of Business entities in India

aˆ? Private Limited Company

aˆ? Public Limited Company

aˆ? Unlimited Company

aˆ? Limited Liability Partnership ( LLP )

aˆ? Partnership

aˆ? Sole Proprietorship

aˆ? Liaison Office/Representative Office

aˆ? Project Office

aˆ? Branch Office

aˆ? Joint Venture Company

Private Limited Company

Restrictions of a private company

The stockholders have merely limited rights to reassign portions

The maximal possible figure of portion holders is 50

The populace is refrained from purchasing the portions.

Public Limited Company

A Public company can non be called a private company. The public company has its ain restrictions:

The minimal figure of portion holders should be at least seven.

A public company is non permitted to get down concern one time the certification of incorporation is approved. In order to get down concern as a corporation, trading certification is a must.

The company must register a statement in stead of a prospectus before it can get down transacting concern.

It should hold lower limit of at least three managers.

Statutory meetings should be held and the direction should be appointed based on blessing from authorities.

Liaison Office/Representative Office

A Liaison Office needs blessing from the authorities of India. It plays an of import function in aggregation of information, publicity of imports and exports and ease fiscal and proficient collaborations.A

Undertaking Office

Foreign companies can set up a impermanent site or undertaking offices to put to death specific undertakings and activities related to it in India.

Branch Office

Foreign companies who have involved themselves in activities related to fabrication and trading goods abroad are allowed to open a subdivision office in India for many intents such as import and export of goods, rendering consultancy services, to execute research work etc

Limited Liability Partnership ( LLP )

LLP is another corporate concern component which provides the advantages of limited liability of a company but allows its members to organize their internal direction as is the instance of a partnership house on the footing of a mutually-arrived understanding.

Valtec – As Sole Proprietorship

The exclusive proprietary is the oldest, simplest, and really common signifier of concern entity. It implies that the concern is to the full owned by a individual individual. The proprietor and the concern is considered as a individual entity for all liabilities, revenue enhancement and legal liability. Tax happens at single degree for concern net incomes and there is no agency of get awaying. Therefore, legal claimants are eligible for personal belongings of the owner and non merely the assets used in the concern.

Advantages of a Exclusive Proprietorship:

Simple and low cost

No filing or legal charter with the Government is required.

Owner enjoys fullest control on determination devising.

Income goes straight into the pocket of the proprietor.

Business net incomes are non taxed.

Owner enjoys the privilege of fade outing the concern at his/her discretion.

Disadvantages of the Sole Proprietorship:

The entire capital available is limited which in bend bounds the size of the concern.

Product liability case by a client is non applicable against concern

Change in legal signifier of concern is necessary in instance of sharing of benefits of ownership other than net income

Benefits of employees is non deducted or partially deducted from nonexempt income.

the assets of the concern go to his or her estate upon loss of life


Registration is non required for exclusive proprietary. Just an history in bank should be opened with the name and manner that the proprietor wants to work. VAT or Service revenue enhancement enrollment needs to be applied as Chennai has its province VAT and service revenue enhancement enrollment ordinances. The PAN of the proprietor will be the house ‘s PAN and the income revenue enhancement returns will be filed in the personal name.

Typical Procedure to Establish Business in India

Establishing a concern in India requires certain period of clip. This is because besides incorporation there are certain other formalities in set uping a concern in India.

( Beginning: Types of Business Entities in India, hypertext transfer protocol: // )

Business regulators

Business Entry Factors

There are many foreign companies who keep a ticker on assorted chances in India. To come in the Indian market and to accomplish something large they need to be careful sing certain points. These include:

aˆ? Finding good spouses who knows the in and out of local market every bit good with the procedural issues

aˆ? Smart planning

aˆ? Identifying the mark market

aˆ? Promotion of merchandises and services

aˆ? Reaching the appropriate agents and distributers

In add-on to these, the foreign investors need to research different market options available in India and border a joint venture with an India-based company. It besides includes constitution of a subdivision office.

Actual Plan

Vision & A ; Mission Statement: To germinate as a successful market leader in supplying the cutting border fluid flow control and mechanization solutions and maximise the growing and gross in all possible ways.

a-? Agenda:

The new born “ Valtec Automation India Private Limited ” will hit the market by securing different type of valves from a specific list of valve makers like RFLExports, Peco Valves, Tyco, etc.. , particular actuators from Bettis and several mechanization equipments from local market on needs footing. Depending upon the client and procedure demands, a clear cut valve mechanization solution will be engineered by implementing the above mentioned constituents. Apart from these activities, Installation & A ; commissioning of valves and accoutrements and care & A ; service occupations would besides be rendered.

The mark market would ab initio be Southern part of India and embarking into assorted procedure industries like steel, paper & A ; mush, sugar, cement, chemical, waste H2O intervention workss, crude oil refineries and others.

Valtec would be strategically Head Quartered in Chennai – Tamil Nadu, which would be a really disposed topographic point for transporting out concern as it is really good equipped with a antic port, air cargo, route ways and railroads web.

Slowly our footmarks would be made in other parts of India every bit good.

Long Term Plans – The stuff cost has a direct relation with regard to the cost of the valves. If the cost of any input additions so the cost of the valve besides automatically increases. Almost 60 % of entire cost of the valve depends on the material monetary value. India has equal metalworkss and the closing of metalworkss in West resulted in export demand. So Indian metalworkss are adding more capacity. This paves a clear way for Valtec to venture into foreign markets.

a-? Valtec – An Organization:

Principal Management – Transport a solid expertness, accomplishments and preparation in Designing and Automation of Valve based solutions.

Possess a wide spectrum of know-how about the planetary valvse mechanization market. Leadership – Possess significant experience in cardinal function such as managerial and Decision Making, Strategic Planning, Financial Planning, Controlling and other managerial functions.

Manpower – To get down with, we would be runing with 10 staffs on board and subsequently to treble the strength by the beginning of the following fiscal twelvemonth.

Facilities & A ; Infrastructure – All necessary tools and equipments that are required of transporting out this concern would be brought in.

Inventory – Just in clip rule would be adopted.

SWOT Analysis

Rival Analysis

With the development of petrochemical and chemical industries, the Valve Market in India is besides sing a enormous growing. Restructuring of power workss are under procedure in order to better the efficiency in salvaging energy. Future investings in atomic power coevals are likely to bring forth significant grosss for the entire industrial valves and actuators market, making legion growing chances for market participants.

With around 1000s of participants, the competition in Industrial valve mechanization sector is really high. Lot of little domestic houses serves the niche market by fabricating labor-intensive valves with fewer trifles. These companies gain border over others with its lower pricing. On the contrary, particular valves and sophisticated actuators are being produced by many MNCs that generate bulk of the gross in market as they cater the high-end market. To hold a good presence, participants in the industry are likely to travel for acquisitions and amalgamations.

Stairss to derive competitory advantage:

As Indian Market is full of many participants in Valves and Valve Automation sector, a

Understanding the increasing demand for robust valves that offer a great range for mechanization and stable public presentation and providing these demands in a timely and technologically sound mode.

Besides, the solution provided should be the best value for the money.

Investing clip and money in research and development of new techniques in mechanization.

Fliping good into application of intelligent valves which can execute informations processing, networking with computer-based control systems that can help in optimisation of the valve system direction, execute self diagnosing, combined with embedded system, fieldbus, and computer-based controls.

Proper apprehension of the client base in the market and besides a clear cut analysis of the demand in different sort of procedure industries is really much vital to supply the best solution and besides to stand out in the race.

By supplying labour intensive valves with fewer trifles, the niche market can be captured.

Besides, after market service plays a really important function in deriving a competitory advantage.

Keeping abreast with the turning engineering and changeless invention of the procedure.

Resources, Infrastructure & A ; Manpower

Work force

The work force right from the underside to the top in the hierarchal order will be absorbed from the Chennai market itself. Apart from the lasting paysheet employees, separate squad would be formed now and so on demands footing in order to transport out the on site activities like installing and commissioning activities. A first degree proficient squad will consist of 2 mechanization and design applied scientists with relevant work experience and accomplishments. Under them a squad of technicians, fitters and other skilled labour force to a upper limit of 5 members would be recruited. Apart from these, a in-between degree direction staff and a gross revenues and selling executive will besides be recruited. Support staff like disposal, histories and human resource to be recruited on limited demand. Gross saless and Finance section would ab initio come under the control of top direction and in ulterior enlargement stages would be restructured.

Natural Materials

The natural stuffs will be procured depending on the undertaking specification and design. And merely in clip process would be adopted for all the natural stuffs that are being procured. The basic myth behind this policy is that the demand will be changing from client to client and undertaking to project.



A warehouse semen store floor for transporting out the mechanization activities and to stock stock list will be rented. All instruments, tools and basic comfortss for transporting out all proficient and piecing activities will be procured and listed as fixed assets. Office premises are all rented out in Dubai. The concern patrons are by and large involved in the substructure to use the local cognition and influence.

Fiscal Plan

Fiscal Planning is a really important facet that needs to be carried out good in progress. It ‘s a procedure of run intoing the ends via a proper direction and control of the finance. The procedure of fiscal planning comprises few of import stairss which help taking a Large Picture expression at the present place. These stairss would assist us calculate out the current fiscal place, the hard currency flow or fiscal support required for a jutting period of clip and the place that needs to be achieved in a stipulated clip period. Besides, attending demands to be paid towards the Working Capital that is required for the twenty-four hours to twenty-four hours operations.

1. List down your Goals

2. List down Your Cash Flows and Cash Inflow

3. Understand and figure out your Risk-appetite

4. List down the fiscal ends.

5. Make certain your Goals are realistic

6. Make the Plan

7. Review and Take advice

8. Take Action and maintain Reviewing

The Launch

“ Valtec Automation ” , the freshly born company will is punctually accredited and adhered to all kind of legal and concern ordinances of India. A deep, strong and stiff foundation gas been laid down in all possible domains. All the basic concern activities have been jotted down, an initial apparatus squad has been made and the company is all set for kicking off.


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