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Business Intend to kick off VALTEC AUTOMATION in India


The main purpose of this survey is to propose a Business Plan to spread and offer Automation Alternatives for various varieties of Valves in Indian Market. The main purpose behind pitching into the forex market is to tap the unending dependence on valves in various process industries, metal, chemical & Oil and Gas industries.

The record below has been sculpted out by considering the market conditions, intrinsic and extrinsic factors, environmental conditions as well as the various business variables. Based on these and along your basing my B. E. in Consumer electronics & Instrumentation Executive and 3 years of experience in an identical industry, a specific slice strategy has been jotted right down to plan, organize, kick off, monitor and control the business of "Valtec-Automation" in Indian market.

Insight into Valves

Valves form an extremely integral element in piping systems. The primary method of regulating and controlling pressure, direction and stream of fluids is accomplished with particular control valves. Depending on the circumstance, a valve may be handled consistently e. g. control valves, or very seldom e. g. Safety Valves, or intermittently e. g. isolation valves. A valve can be very simple, low priced item or it might be quite definitely complicated, costly item. In piping design the valves probably require more executive effort than any other piping component

The forecasts present that the demand for industrial valves globally would increase yearly by 4. 4 percent through 2011, powered by an encouraging indicator of growth in developing countries and a drift towards a lot more expensive automated valves and actuators in developed countries. India is one of the countries which would experience the fastest market profits.

Market Analysis

Target Market

The Indian market offers great opportunities to foreign traders with one billion populations in hand. The buyers could view significant growth and growth here. Indian current economic climate is growing quicker in comparison to other countries. the major industries like energy, environment, infrastructure, travelling with their increasing demand forces foreign shareholders to enter into Indian market. India GDP has signed up 6. 7% expansion in the time 2008-09 but it can sustain the progress rate of 8 to 10% in the nearing years. The existing expansion rate is apt for the traders.

Valve Market in India

The valve industry is improving daily. Manufacturers are employing new technologies such as latest testing and production equipment. So demand for valves is seen in virtually all areas, especially in core sectors of metallic and mining, oil and gas, pharmaceuticals, drugs, food and drinks etc for de-bottlenecking, development of capacities and maintenance purposes. By using these technologies there rocks ! improvement in the finishing of the valves and they're of good accuracy. the valves distributed by Valtec has smart positioners as control system. Furthermore, it is constructed of low noises and low emission incredible materials.

The valve market is large enough to provide a wide variety of opportunities to all manufacturers irrespective of the type of operations. The market, more often than not, is distributed by different manufacturers based on brand, technology, manufacturing capacities and price competitiveness. Today India is a sizable manufacturer of valves looked after plays a role in producing top quality products of the world. The grade of valves stated in India is used by domestic users based on the service and application. However the large organisations within key sectors opt for only best brands following a scrutiny of offers predicated on the application. The united states also offers small manufacturers who've their own market markets. The growth in the valve industry is expected to continue at 7-8 % per annum. Due to India becoming competitive the growth in exports is expected to be 10-12 % per annum. Getting all these features of this market, Valtec would be pitching in to the valve market of India along with Valve Automation alternatives. This is discovered to be the right time to sweep away a huge portion of this market segment.


Source : Exim Bank


Source: Exim Bank

Benefits of establishing in Indian market

  • For companies established in special economic zone several duty exemptions are created available
  • IT companies have taxes incentives
  • Many countries are in double taxation treaties with India;
  • A private company in India can be produced with a minimum capital of INR 100, 000;
  • Skilled employees can be found at nominal rate.

Obstacles in Indian Market

  • Rigid and complicated social framework
  • Indian Bureaucracy
  • Infrastructure issues

India is a region with varied cultures and hence major changes in interpersonal structure are wearisome to put into action. However, the perspective is slowly but surely changing and authorities is wanting their level better to make effective changes. More Work are created to cut down on the red-tape. Poor street conditions and scarcity of power supply are a few of the infrastructural problems in India that should be resolved as fast as possible. However, useful methods are implemented by the government in these areas as well to entice foreign buyers to the country. Eight highways tasks has been finalised that will need an investment of Rs 10k crore.

Hence, with the steps taken up to improve the situations, entry in to the Indian market won't be a wearisome process.

Business Analysis

Type of Business entities in India

Private Limited Company

  • Limitations of a private company
  • The shareholders have only limited privileges to transfer shares
  • The maximum possible amount of talk about holders is fifty
  • The open public is refrained from purchasing the shares.

Public Limited Company

  • Public company cannot be called a private company. The public company has its limitations:
  • The minimum variety of show holders should be at least seven.
  • A public company is not allowed to start out business once the certificate of incorporation is approved. To be able to start business as a firm, trading certificate is a must.
  • The company must file a statement instead of a prospectus before it can begin transacting business.
  • It should have minimum of at least three directors.
  • Statutory meetings should be performed and the management should be appointed based on approval from federal.

Liaison Office/Consultant Office

A Liaison Office needs endorsement from the federal government of India. It performs an important role in collection of information, campaign of imports and exports and help in financial and technological collaborations.

Project Office

Foreign companies can establish a momentary site or task offices to execute specific tasks and activities related to it in India.

Branch Office

Foreign companies who have engaged themselves in activities related to manufacturing and trading goods overseas are allowed to start a branch office in India for most purposes such as import and export of goods, rendering consultancy services, to perform research work etc

Limited Liability Relationship (LLP)

LLP is another corporate and business business element which provides the features of limited liability of the company but allows its people to organise their internal management as is the situation of a relationship firm based on a mutually-arrived contract.

Valtec - As Single Proprietorship

The singular proprietorship is the oldest, simplest, and incredibly common form of business entity. It means that the business enterprise is fully managed by a single person. The dog owner and the business is considered as a single entity for any liabilities, taxation and legal responsibility. Taxation happens at individual level for business profits and there is no method of escaping. Thus, legal claimants meet the criteria for personal property of the proprietor and not simply the assets found in the business enterprise.

Advantages of the Sole Proprietorship:

  • Simple and low cost
  • No processing or legal charter with the Government is required.
  • Owner likes fullest control on decision making.
  • Income goes directly into the pocket of the dog owner.
  • Business profits are not taxed.
  • Owner enjoys the privilege of dissolving the business at his/her discretion.

Disadvantages of the only real Proprietorship:

  • The total capital available is limited which limits the size of the business enterprise.
  • Product liability lawsuit by a customer is not appropriate against business
  • Change in legal form of business is necessary in case there is sharing of benefits associated with ownership apart from profit
  • Benefits of employees is not deducted or partly deducted from taxable income.
  • the possessions of the business enterprise go to his / her estate upon loss of life


Registration is not needed for lone proprietorship. Just a merchant account in bank or investment company should be opened up with the name and style that the dog owner wishes to work. VAT or Service duty registration must be applied as Chennai has its express VAT and service taxes registration legislation. The PAN of the owner would be the firm's PAN and the income tax dividends will be filed in the personal name.

Typical Procedure to determine Business in India

Establishing a business in India requires certain time frame. It is because besides incorporation there are specific other formalities in building a business in India.

(Source: Types of Business Entities in India, http://madaan. com/incorporate. htm )

Business regulators

Business Accessibility Factors

There are many foreign companies who keep a wrist watch on various opportunities in India. To go into the Indian market and also to achieve something big they have to be cautious regarding certain things. These include:

  • Finding good lovers who understands the in and out of local market as well with the procedural issues
  • Smart planning
  • Identifying the target market
  • Promotion of products and services
  • Contacting the appropriate providers and distributors

In addition to these, the overseas buyers need to explore different market possibilities in India and frame a jv with an India-based company. In addition, it includes establishment of your branch office.

Actual Plan

Vision & Objective Statement: To develop as a successful market head in providing the leading edge fluid stream control and automation alternatives and improve the development and revenue in every possible ways.


The new delivered "Valtec Automation India Private Limited" will hit the market by procuring different type of valves from a specific list of valve manufacturers like RFLExports, Peco Valves, Tyco, etc. . , special actuators from Bettis and several automation equipments from local market on needs basis. Depending after the customer and process requirements, a clear chop valve automation solution will be built by implementing the above mentioned components. Apart from these activities, Assembly & commissioning of valves and accessories and maintenance & service careers would also be rendered.

The marketplace would at first be Southern region of India and venturing into various process establishments like steel, paper & pulp, sugar, cement, chemical, waste water treatment vegetation, petroleum refineries as well as others.

Valtec would be strategically Head Quartered in Chennai - Tamil Nadu, which will be a very apt place for carrying out business as it is very well equipped with a fantastic port, air freight, highway ways and railways network.

Slowly our footprints would be produced in other parts of India as well.

Long Term Programs - The materials cost has a direct relation regarding the price tag on the valves. If the expense of any input boosts then the price of the valve also automatically rises. Almost 60% of total cost of the valve depends upon the material price. India has sufficient foundries and the closure of foundries in western led to export demand. So Indian foundries are adding more capacity. This paves a clear avenue for Valtec to project into foreign market segments.

Valtec - An Organization:

Principal Management - Carry a solid know-how, skills and training in Designing and Automation of Valve structured solutions.

Possess a broad spectral range of know-how about the global valvse automation market. Leadership - Possess substantial experience in key role such as managerial and Decision Making, Strategic Planning, Financial Planning, Controlling and other managerial functions.

Manpower - To start with, we would be operating with 10 staffs on board and later to triple the strength by the commencement of another financial calendar year.

Facilities & Infrastructure - All necessary tools and gadgets that are essential of undertaking this business would be brought in.

Inventory - Just with time principle would be adopted.

SWOT Analysis

Competitor Analysis

With the introduction of petrochemical and chemical market sectors, the Valve Market in India is also experiencing a tremendous development. Restructuring of power plants are under process to be able to increase the efficiency in conserving energy. Future opportunities in nuclear electricity generation will probably generate substantial revenues for the full total professional valves and actuators market, creating numerous growth opportunities for market individuals.

With around a large number of players, the competition in Industrial valve automation sector is very high. Lot of small domestic companies serves the market by making labour-intensive valves with fewer technicalities. These businesses gain border over others using its lower pricing. On the contrary, special valves and sophisticated actuators are being made by many MNCs that generate most the income in market as they accommodate the high-end market. To truly have a good presence, individuals on the market will probably go for acquisitions and mergers.

Steps to gain competitive gain:

As Indian Market is packed with many players in Valves and Valve Automation sector, a

Understanding the increasing demand for powerful valves that give a great opportunity for automation and steady performance and providing these needs in a timely and technologically acoustics manner.

Also, the perfect solution is provided ought to be the best value your money can buy.

Investing time and money in research and development of new techniques in automation.

Pitching well into request of brilliant valves which is capable of doing data processing, marketing with computer-based control systems that can aid in optimization of the valve system management, perform home diagnosis, combined with embedded system, fieldbus, and computer-based adjustments.

Proper understanding of the customer bottom part in the market in addition to a clear cut evaluation of the demand in several kind of process companies is very much indeed vital to provide the best solution and to stick out in the competition.

By providing labour intensive valves with fewer technicalities, the market can be captured.

Also, after market service plays a very crucial role in gaining a competitive edge.

Keeping abreast with the growing technology and regular innovation of the process.


The workforce from the bottom to the very best in the hierarchical order will be utilized from the Chennai market itself. Apart from the permanent payroll employees, distinct team would be created occasionally on needs basis in order to handle the on site pursuits like unit installation and commissioning activities. A first level specialized team will include 2 automation and design engineers with relevant work experience and skills. Under them a team of technicians, fitters and other skilled labour drive to no more than 5 customers would be recruited. Apart from these, a middle level management personnel and a sales and marketing exec will also be recruited. Support staff like supervision, accounts and individuals resource to be recruited on limited need. Sales and Financing department would initially come under the control of top management and in later growth phases would be restructured.

Raw Materials

The raw materials will be procured with regards to the project standards and design. And just in time technique would be adopted for all your raw materials that are being procured. The basic myth behind this plan is that the necessity will be varying from client to consumer and task to task.


A warehouse cum shop floor to carry out the automation activities and to stock inventory will be rented. All musical instruments, tools and basic amenities for carrying out all technical and assembling activities will be procured and stated as fixed possessions. Office premises are all rented out in Dubai. The business sponsors are usually mixed up in infrastructure to utilize the neighborhood knowledge and affect.

Financial Plan

Financial Planning is an extremely crucial aspect that should be completed well beforehand. It's a process of interacting with the goals via a proper management and control of the fund. The procedure of financial planning comprises few important steps which help going for a Big Picture go through the present position. These steps would help us find out the current budget, the cash flow or financial support required for a projected time frame and the positioning that should be achieved in a stipulated time period. Also, attention needs to be paid towards the Working Capital that's needed is for the day to day procedures.

  1. List down your Goals
  2. List down Your Cash Moves and Cash Inflow
  3. Understand and figure out your Risk-appetite
  4. List down the financial goals.
  5. Make sure your targets are realistic
  6. Make the Plan
  7. Review and Take advice
  8. Take Action and keep Reviewing

The Launch

"Valtec Automation", the newly born company will is duly certified and honored all sort of legal and business rules of India. A deep, strong and rigid groundwork gas been laid down in every possible spheres. All the basic business activities have been jotted down, a short installation team has been made and the company is ready for kicking off.

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