DARE - Because Entrepreneurs Do

Fresh labor reforms, tax incentives for R&D, and world-class infrastructure offers lucrative opportunities for Indian entrepreneurs in the world’s fifth largest economy

It was with an eye on the $2 billion French generics market that Wockhardt, the Indian pharmaceutical major, acquired France-based Negma Laboratories last year in an all-cash deal worth $265 million.

Negma was a strategic buy for Wockhardt as it gave the latter a unique opportunity to extend its patented portfolio to other markets in Europe. The French company had 172 patents to its credit at the time of its acquisition.

Not just in the pharmaceutical sector, Indian companies in sectors as diverse as IT, telecom, electrical equipment, and manufacturing have entered France in a big way. In mid-2008 OnMobile, the telecom VAS provider, lapped up Telisma, the France-based speech recognition software provider. With Telisma in its kitty, OnMobile aimed at underlining its presence in the European market by launching new speech recognition language modules. Other Indian companies such as electrical equipment major Crompton Greaves, CNC machine manufacturing company, Jyoti, and IT majors like TCS and Wipro are already present in France. TCS entered the country in 1992 and maintains its head office in Paris and a regional office in Toulouse. It serves over 20 French companies, including the likes of Airbus.

Why France?
The world’s fifth largest economy has always remained an attractive destination for investors seeking to benefit from top-class infrastructure, a highly productive workforce, superb R&D facilities, and the opportunity to reach out to the lucrative European market. Although the UK and Germany have slipped into recession, France continues to hold fort. Its economy reportedly grew by 0.4% in the third quarter of this year.

France’s hallmark in infrastructure is marked by around 10,500 kilometers of motorway, one million kilometers of roads, six international airports and around 20,000 kilometers of high-speed trains.

According to the Invest in France Agency, over 2.5 million companies operate in France, and there are 20,000 subsidiaries of international firms in diverse sectors. These subsidiaries provide employment to around two million people, double of what it was ten years ago.

France treats foreign and native companies at par when it comes to rules and regulations and public financial support. This makes it easier for foreign companies to buy property or take it on rent. According to the Invest in France Agency, the country is the third least expensive industrialized nation, next only to Canada and Singapore. It cites a KPMG study that puts France as the leading country in Europe with regard to the cost of setting up a business. According to the World Bank’s Doing Business Report 2009, it takes five procedures and seven days to start a business in France. This is below the OECD level of 5.8 procedures and 13.4 days.

France has worked extensively over the past one year on labor reforms. This is part of its government’s efforts to bring in more companies, and make itself more competitive vis-à-vis its neighbors. The reforms have a multi-pronged strategy aimed at giving greater freedom to people to work more, more autonomy for companies for work week arrangements, and enough flexibility to negotiate with trade unions. Although the legal duration for a working week is thirty-five hours, companies can now negotiate with trade unions on this front.

Serge Boscher Managing Director, Invest in France Agency In view of the global financial crisis, do you believe it would be difficult for France to attract fresh investments into the country? Yes, it is true that business is slow. Our agency that helps foreign companies invest in France needs to be more professional and competitive. It is an opportunity for us to improve our processes. Our economy has been resilient compared to those of the UK and Germany. It is a good signal for Indian companies. They come to Europe because of its market’s highest purchasing power. If Indian companies want to take a pie of the market, they need to be present there. Thus, we want France to be their preferred destination. The country’s workforce is very competitive. France’s infrastructure is also world-class. The mode of transport is very fast. And 80% of France’s power comes from nuclear sources. This is the reason why a lot of companies enter France. What makes France an attractive destination for Indian entrepreneurs? France is on the move. It is more attractive today like never before. The French government has brought about several reforms in labor laws. During my interaction with CEOs of Indian companies, I found that their main priority is labor when it comes to choosing France as a business destination. They want flexibility in employing people. These reforms are an interesting response to their need. There is a gap between how France is perceived and the reality of business. Many Indian businessmen who have invested in France want to acquire companies. Unfortunately, we only have fifty Indian companies in France. India ranks 14 when it comes to foreign direct investment in France. The French government wants to double the Indo-France trade in five years. We want to attract more Indian companies. Which sectors would prove lucrative for Indian businesses? I am amazed to see the quality of entrepreneurship in India. They are quick to grasp opportunities. Renewable energy is one area where I am seeing interest from Indian entrepreneurs. The industrial sector in France is very lucrative. Information technology is also an interesting area. India is very good in the IT sector.

To promote research and development, the French government provides tax incentives in the form of research tax credit. It is a corporate tax incentive based on R&D expenses incurred by a company based in France. This incentive is available to firms of all sizes and from diverse sectors. Companies applying for tax credit for the first time or those that have not availed of this facility for the last five years are eligible for an ‘introductory bonus’. This gives a research tax credit rate of 50% in the first year and 40% in the second. The budget for research tax credit has doubled over the past two years. In 2008, the amount was pegged at 3 billion, up from 1.4 billion in 2006.

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world important invention
written by radhakrishnan, December 26, 2009

G.K.O. Ratha Krishnan, Machinist, >
18, Renganatha Puram,
Srivilliputtur – 626 125,
Virudhunagar Dist,
Tamil Nadu,
India

Ph: 914563 – 262893
Cell NO : 98421 – 39959.www.olimuthueng.webs.com
E-mail Id olimuthu2003@rediffmail.com
Emai –ojr123456789@gmail.com
To,
Respected Sir,
GRAVITY FORCE ELECTRIC CURRENT MACHINE
SUB : We have invented the machine to produce the electric
current.
We have invented the gravity force electric current machine. This
machine is running by gravity force. We have not any fuels and chemical
things for the machine running. It is only an engineering product
machine. We are produce the electric current by using this machine.
Because of the gravity force electric current machine the pollution is
not affect any ware.
This machine is produce the electric current in their houses or
factories for the necessity.
No dangerous by this machine. It is a low cost machine. First time
investment only for this machine. There is no expenditure often.
WORLD IMPORTANT INVENTION.
We want finance help to finish this invention. The invention is the most
important for the all over the world. If you will help us for Finance
for this invention, we will accept your terms and conditions. Please
help us. Please contact immediately.
I am anxiously waiting for your earliest reply.
Thanking you,
Yours faithfully,
G K O Radhakrishnan

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