What do Indian companies look for while expanding their business abroad?

Why is having a branch in USA is better than exporting the manufactured goods to the US?

 Time Zone: When you are operating in the US you are required to interact with US clients,
customers, etc. Doing so over the phone is challenging because of the time zone difference.
Having a local presence means that you can match working hours with your clients – making
for much more seamless value exchange.
 Perception: Having a local US office will signal that you’re a global company. It shows that
you’re not just a fly-by-night operation, but rather than you’re a multi-national company
seeking to make a dent in overseas markets.
 Local Context: When you’re selling into an unfamiliar environment, it is very easy to miss the
cultural and economic context that is at play in those communities. Having a local office
means that you have feet on the ground and you can learn about the people that you’re
selling to.
 More opportunities: Having a local presence in the USA will also help you to spot additional
opportunities that you might be able to capitalize on.

 TurningIdeas Survey: Considering India is now becoming a hub of globally relevant

products, startups are now looking to go global. The survey revealed that over 42% of
startups are looking to expand and tap into global markets in 2022 and over 64% of
these start-ups are in the enterprise SaaS space.
Value Propositions of Arkansas:

 4th Lowest cost of doing business: Centered between Canada and Mexico, and located in
the middle of the United States, Arkansas is strategically placed to reach tens of millions
of people easily and cost-efficiently, also they have a good transportation facilities.
 300 fortune 500 companies operating in Arkansas.

 Arkansas Ranks 2nd for Most Pandemic-Proof Small Businesses

 Arkansas Ranked #3 for Food Processing in the United States: In Arkansas, there were
372 food and beverage companies in Arkansas, employing 55,043 people, as of 2020
 3rd lowest cost of doing business: affordable houses, utilities and other necessities

Some of the sites available in Arkansas:

Disadvantages:

Arkansas’s tax system ranks 44th overall on our 2022 State Business Tax Climate Index.

the most prominent challenge is the “franchise tax”, which is a little on the higher side. Limited
Liability Companies and Corporations have to pay franchise tax annually in accordance to Arkansas
Code 26-54-104

Potential companies who can set up operations in USA

1. Marico Limited: Home-grown fast moving consumer goods (FMCG) business Marico is
eyeing 10 percent growth in business volume over the next three years on the back of
domestic and international expansion, coupled with strategic investments.
2. Dabur Limited: Dabur expands global footprint with Amazon’s Global Selling Program. nder
this collaboration, Amazon will help Dabur take around 30 products from its popular range
such as, Vatika hair oil, Meswak toothpaste, Red toothpaste, Chyawanprash to name a few,
to consumers in the US.
3. Mindtree Limited: In September 2021, they have expanded to Europe and Asia Pacific
regions, Maybe their USA expansion is on the cards, also they have clients in 18 countries,
having an office in USA will be helpful for them to connect them to the clients.
4. Mphasis ltd: Mphasis aims to be a $10 billion company in the next 3-5 years — that's twice
its current size. Many of their clients are near Arkansas like Adobe, Google, Microsoft, SAP,
etc. Also there are many IT companies in Arkansas which means they means they can try to
improve their client base and improve its market share
5. Hexaware Technologies: Hexaware acquires US-based Mobiquity in $182 million cash deal in
2019. Exult, IBM, Citibank, Axa Financial Group, and Royal Sun Alliance are the key clients in
US.
6. 3i Infotech Ltd: On July 2021, it announced a series of leadership appointments to fuel its
expansion plans. “These strategic level hires would be integral to 3i Infotech's aim of
achieving a growth of $1 billion by 2030," the company said in a statement. As chief growth
officer, Krishna will be responsible for driving new business growth in North America and
Europe, Middle East, and Africa markets. They have 1000+ clients in more than 50 countries
across 4 continents.
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