Business Foundations advises foreign companies and investment guarantors on evaluation
and management of industry-specific political and economic risks in India.
Many foreign investors find that, frequently, they have little or no control over external
events which can adversely affect the commercial viability of their investments and future
business plans in India. These developments include:
slow-down in government
decisions due to political instability
adverse changes or
unpredictability on foreign investment, import, ownership, pricing or tax issues
cultural problems, delays or
legal disputes due to local partners and suppliers
labour unrest and industrial
action
disruption of normal business
due to social and political unrest
corruption and bureaucratic
inefficiency
unexpected delays and
cost-overruns due to overlapping governmental jurisdiction
fluctuation in interest,
inflation and currency rates
Political Risk Analysis involves the study of these and
other external sources of risks, and to evaluate their likely impact on specific
businesses and projects. The purpose of Political Risk Analysis is to identify, analyze
and predict major risks before actual investment or commitment, and to offer
risk-minimization strategies and options. Political Risk Analysis provides senior company
executives with a comprehensive set of determinants -- political, economic, cultural or
market related -- that may influence their business, both in the short and long term, and
gives them an advance look at how existing trends will likely interplay and result in
positive or negative outcomes.
Business Foundations has successfully advised many
foreign investors in this area, including:
1) Large Consumer Products Company (USA): With
worldwide sales in excess of $ 7 billion, this company is the undisputed global leader in
direct-selling. Business Foundations evaluated potential political opposition to its entry
in India, and studied local social and cultural barriers to direct selling.
2) Multi-Client Pharmaceutical Group (USA):
Business Foundations has assisted this group, the largest and most active of its kind in
the world, in closely monitoring, analyzing and predicting changes in government policy
and political attitude towards multinational pharmaceutical companies in India, and has
advised it on political aspects of the national debate over new product patent laws.
3) Mid-Sized Medical Products Company (Denmark):
Business Foundations has evaluated long-term potential business risks in this sector
arising out of developments in healthcare policy and NGO activism.
4) Large Industrial Conglomerate (Japan):
Business Foundations has briefed top-level executives on near-term political scenarios,
policy forecasts and overall country risks.
5) Business Foundations also publishes India Focus, a bi-monthly political risk report (covering
Indian politics, policy, business, diplomacy and social issues) which goes out to over 150
subscribers and readers. |
