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Indore Hot Destination For Business Investment In India

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Indore is a central Indian state that can best be described as the commercial capital of the Indian state of Madhya Pradesh. It’s also the largest city in Madhya Pradesh.
Economic State

Indore has a diverse population that makes it a favored region when it comes to products which are tested as a fresh concept. It is one of the fastest growing tier-II cities in India and is considered as a center for commerce in the central parts of the country. Indore is also becoming an IT hub with many IT industries flourishing in the state.

The immense growth of Indore has made it the highest contributor of tax revenues in the state. To efficiently harness the potential that is held by the exports in software industry, the government is setting up many Special Economic Zone (SEZ) projects in Indore.

Indore is also characterized by more conventional production and manufacturing industries. The textile industry is a major industry of Indore. Modern shopping and trading areas have come up as a result of the economic growth of the city and many shopping centers and malls are popping up across the city.

Investment

With numerous land development projects on the way, Indore is rapidly becoming the real estate hub of the country. Quite obviously, Indore has the highest real estate values in the state of Madhya Pradesh and after the completion of some major development projects; the real estate value is expected to soar further.

To encourage the participation of IT companies, the state government is planning to set up technology parks and SEZs to accommodate the IT industry in a dedicated zone within Indore. Urban development project is also underway to meet the requirements of individuals moving into the city for work purposes.

In recent years, the state government has also introduced many policies to encourage the development of Indore. The MP State Industrial Policy, 2004, provides specialized packages for loss making units. It also offers many efficient incentive schemes and aims at developing industries in Indore through a ‘cluster’ approach. The state government has acknowledged Textile, Pharmaceutical, IT, Auto Components and Food Processing as the priority sectors for the city.

With the constitution of industrial clusters around Indore, its economic geography has expanded rapidly in the recent years. The major economic clusters around Indore are located in Kheda, Sanwer, Pithampur and Dewas.

Due to all these reasons, Indore has become a hot destination for the investors.

Foreign Direct Investment Trends In India

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India is the third most attractive foreign direct investment destination in the world, behind China as number one and the United States as number two. In 2008, India was ranked number two but slipped to the number three spot given the economic downturn and the surge of investments by Chinese and Indian firms acquiring American companies.

According to Indias Department of Industrial Policy and Promotion, despite the global recession and liquidity crunch, the Indian economy recorded an 11 percent increase in FDI in 2008-09, with sectors like chemicals and telecommunication experiencing robust growth of 227 percent and 103 percent respectively.

India received approximately US$25 billion worth of FDI in 2007-2008; that number increased to US$27 billion in 2008-2009, highlighting Indias ability to remain resilient and attract investment despite the global slowdown. While no target has been fixed for the financial year 2009-10, so far FDI inflows for April and May 2009 have surpassed US$4.4 billion.

FDI policy and regulations
The Department of Industrial Policy and Promotion provides official information about Indias FDI policy and procedures. Overall, among the emerging economies, India has one of the most liberal and transparent policies on foreign investment. Foreign investment up to 100 percent is allowed under the automatic route in all activities and sectors except the following, which require prior approval of the government:

Sectors prohibited for FDI
Activities and items that require an industrial license
Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field
Proposals for acquisitions of shares in an existing Indian company in the financial service sector and where Securities and Exchange Board of India (substantial acquisition of shares and takeovers) regulations, 1997 is attracted
All proposals falling outside notified sectoral policy/CAPS under sectors in which FDI is not permitted

According to the International Trade and Development Division of the Indian government, the countrys foreign trade policies have been formulated with a view to invite and encourage FDI. The Reserve Bank of India (RBI) manages the administrative and compliance aspects of FDI. Foreign investment can be divided into two broad categories: investment under the automatic route and investment through prior approval of government.

Commercial Real Estate An Ideal And Limitless Investment Idea

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When it comes to the best investment ideas, the commercial real estate can count for a great idea and especially if you have enough money to invest. The venture normally comes with numerous benefits which every investor will find ideal and worth considering. The commercial real estate idea is ideal in that it goes beyond the residential and single family properties and the demand is always on the rise no matter where the property is situated. With many people looking for office space and apartment buildings, the idea has been found to be lucrative and always rewarding for many investors.

One of the greatest benefits of the commercial real estate idea is that it provides you with a number of options and enhanced range on your ventures not to mention that it also comes with an enhanced possibility of great returns. It is however important to look at this kind of an investment as a major task that will definitely require a huge chunk of money and therefore do your calculations well for the realization of the desired results. There are many benefits that every commercial real estate investor will be able to enjoy and these always make the investment a worth risk to take.

Benefits of commercial real estate investment
One of the most notable benefits of investing in the commercial real estate is in the lucrative rental rates that are associated with the venture. This is especially the case when the building is located in an area where there is high rate of business. It is therefore easy to enjoy huge monthly returns and especially if you are in an area where the construction of such a building in regulated by the law or the land.

Unlike the other types of real estate investments, the commercial real estate normally involves space measurements that are done in square foot and the price for this is normally high. Commercial space all over the world and especially in the up market places is normally rented at a rate of more than $70 USD per square foot. This therefore translates into a huge amount of money at the end of the day.

In many areas, the commercial real estate also benefit the investors in that they come with prolonged lease agreements which allows for continuous occupancy. Unlike their residential counterparts which might not work the same way, the commercial units have an assured cash flow every month for the number of years under which the agreement is made.

Due to the fact that many tenants would want to establish a continuous link with their clients without destabilizing their businesses, the long agreements normally work to the benefit of the investors.

Additionally, commercial real estate is always on demand and especially if they are strategically situated. Hardly will you here of an unoccupied space especially in the busy streets of any given area. The benefits associated with the commercial real estate can be broken down into various categories but there is no doubting that this is one of the best avenues for any serious investor.

Stock Market Investment Strategy

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Strategic Moves on Stock Market Investment
Stock market investment is a risky stance, but it should not stop any aspiring investor from taking the first step. The choice to make the stock market endeavor succeed lies upon the investor.
1. Knowledge
A wise investor would only delve into stock market investment upon being apprised with the necessary and crucial information. It is a must to invest on companies only upon learning everything about it, from its past records, current performance and future plans.
Stock market investment advice should be sought considering the difficulty of locating that right stock that will give big returns. The investor must fully know the fundamental value of the stock he or she will buy.
Invest in a company which belongs to a familiar industry. The stock market investor must have a good understanding of the business in order to realize more the value of the stocks. This will also make the investor less dependent to analysts and advisers.

The sources of information to rely upon must be carefully chosen too. Tips offered in the market should be avoided as much as possible. These are usually given by people with vested interests.
2. Long-term goal
An important consideration in stock market investment is setting a long-term goal. The long-term goal would determine the approaches to be taken and influence the decisions to be made.
The adherence to that goal would ensure regularity in instances of indecision when the stock market gyration comes to play. It would avoid whimsical decisions adversely disturbing the finances. A long-term goal could result to a more stable financial future through steady purchases investments. The key word here is consistency.
3. Calculated Risks
There are risks in any business endeavors. However, this must be calculated to minimize the probability of loss and to increase the expectation of profits. Speculating is not an option.

Never gamble and risk losing big money in the stock market. Investments should not rake in huge losses. It is easy to buy stocks, but money lost would be difficult to gain back. One cannot afford costly mistakes.
The established system in realizing the long-term goal must be strictly followed then. This will reduce the probability of putting too much money just to incur big losses.
5. Discipline
To make the most of the stock market investment, the investor himself must possess the proper determination and discipline to continually persevere in realizing the long-term goals set.
Stock market investment today requires passion and courage to come out as a winner. The stock market gives the opportunities; all that is required of the investor is being prudent.

Is Direct To Garment Worth The Investment

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In these economic times it is even more important to make prudent investments. Over the past 6 years the direct to garment industry has exploded and with it screen printers, embroiders, and entrepreneurs have asked is Direct to Garment worth the investment? And the answer is it depends. Like most investments it is not ideally suited for every investor. Most see it as a shiny new toy and are taken by its technology. This may be all well and good but that shinny new investment may be nothing more than 200lb paper weight if not utilized. Before we consider which model or manufacturer might be right for you lets first consider if you should even be looking at one.

Most Direct to Garment Printers are not designed to print large volume jobs. A print on a dark colored garment will take most Direct to Garment Printers 2-10 minutes to produce depending on printer speed and image size. This does not include pretreatment or heat pressing. You can probable count on doing between 6-15 dark colored garments per hour. This is not a lot when you consider a manual screen printer could do a similar job and produce between 30-60 per hour and an automatic printer could produce upwards of 300 shirts per hour. So if you are doing larger jobs on average then screen printing may be a better investment. Also, screen printing is better for special effects printing such as high density, glow in the dark, puff, special bases, glitters, and shimmers. With Direct to Garment you are dealing with usually five colors (white, black, cyan, magenta, and yellow). The white is used to underbase and the other colors are used to render a process image. This is the good and the bad. The image comes out just like the image on your home ink jet printer. However, you can’t hit some colors because they are beyond the color gamut of process printing. So make sure your clients are not incredibly picky about getting exact Pantone matches. If they are picky then you may not be able to satisfy them.

So if it is so limited then why would you invest in one. You should invest in one if you have the right type of market for one. If you are printing smaller runs that include multiple colors you may be ideal for this type of equipment. Screen Printers have a larger set-up cost and smaller runs are not as advantageous for them. A 5 or 10 shirt run is going to cost them the same as 100 or 200 shirt run to set-up. Also, a Direct to Garment machine costs virtually the same to run whether it is a one color or four color job. Screen Printers have to compensate for more colors as each color will add time to the run. Smaller run reprints are also cost effective on a Direct to Garment Machine.

The other part of the equation is you need to have a business plan for what you are doing. Too many companies and individuals enter the Direct to Garment business without an understanding of their own customers. Customer base is a large factor in whether or not it is worth investing in a Direct to Garment Machine. If you don’t know who your customers are then you need to create a business plan and envision exactly who your customers are and how they are going to get to you. If you are unsure then you might want to invest in a heat press and do transfers to start with. It will be more cost effective in the short term. If you know that you are going to do smaller runs with photo quality images than Direct to Garment may be right for you.

The other part of the equation is that people under estimate how they are going to get customers. In order to make your investment pay off you need a plan to get customers. Direct to Garment Machines are expensive 12 to 250 thousand dollars. Most run in the range of 15-25 thousand dollars. A manual Screen Printing set-up is around 8-16 thousand dollars and a Sublimation set-up is 2-5 thousand dollars. So if you are going to go with a Direct to Garment set-up make sure this is your market or you will be spending unnecessary funds.

The other thing to consider about Direct to Garment is how comfortable you are with technology and fixing things. The reason I say this is because you will better off having a graphics background. Familiarity with Photoshop, Corel Draw, Illustrator will increase your likelihood of success. It will also make it easier to understand the RIP and any other graphic software that may come with the machine. Some of the people that have struggled with the Direct to Garment Technology have struggled on the software side. I bring up being comfortable with fixing things is because if you are handy it will help you avoid expensive service calls. Which brings up one of the big reasons people give for giving up on Direct to Garment ‘ mechanical trouble with the machines. Now there are definitely some machines that are more problematic then others but that doesn’t excuse you from taking care of your investment. Some machines require a lot of maintenance others just some but they all do require some preventative maintenance. Understanding this is one the keys to being successful in Direct to Garment. Another thing to consider is environment. Keeping a clean environment with the proper humidity is essential. When we began dealing with Direct to Garment machines we used to have to replace print heads every 2-3 months. Once we added a humidifier to our room to keep the proper humidity we never lost another print head. It was night and day and the prints came out better and more vibrant with a properly maintained print head. So make sure wherever you are putting your Direct to Garment Machine you have the proper environment.

So if you are going into the Direct to Garment market please make sure you have your business plan ready. Make sure you have the right customers and you know how you are going to reach them. Also, make sure you have the right environment and you feel comfortable with the technology. Direct to Garment is worth the investment for those with the right business plan.