ValueNotes Connect

Welcome to the August issue of ValueNotes Connect.

One nation, one tax read several newspaper headlines in India last week. With over a decade in the making, many commentators have proclaimed that the new goods and services tax (GST) is the Modi government’s most important reform to date. Businesses are currently plagued by differing tax rates when goods are moved across state borders. When the new tax regime is enforced (in April 2017, an ambitious deadline), a single GST rate will apply, turning the country into a truly single market.

However, the benefits of GST are unlikely to come in a hurry. The liberalization efforts of Narasimha Rao were initially met by euphoria, but post 1995, we had several extremely difficult years. Industry had to deal with a previously unknown level of competition from cheaper imports and new domestic capacity. The GST journey will not be as arduous as the adjustment to de-licensing and lower tariffs in the nineties, but don’t expect it to be a cakewalk either.

As we’ve pointed out in the past, India is too large a country to ignore. While it isn’t easy for multinational corporations to do business in, it offers enormous opportunities. India is not a market that will yield quick returns; it is complex, difficult and diverse. Corporations can (and must) take a longer term view.

Much has been written about India’s booming e-commerce sector and start-ups. The likes of Flipkart and other “Unicorns” are now finding it difficult to raise fresh funds at ever-higher valuations. Essentially, the big deals we saw a couple of years ago have dried up. But does this imply a decline in the future for start-ups, or their prospects?

Do read our case study on how we helped a private equity investor identify investment opportunities in the knowledge process outsourcing sector.

As always, we hope you enjoy reading our newsletter, and we look forward to your comments.

Best regards.

GST bill: A long hard road ahead

by Arun Jethmalani

medical-equipment Finally, after a decade of politicking and delays, the GST bill was finally passed in Parliament. Many commentators have proclaimed this as the biggest reform move by the Modi government. While that may or may not be true, it has definitely restored our belief that Parliament can work if it chooses to.


Seven reasons why companies should (must?) invest in India

by Arun Jethmalani

medical-equipment For multinational corporations, India has not been an easy market to do business in. What with laws changing frequently, aggressive and unpredictable tax demands, resource constraints (especially land), infrastructure bottlenecks, business unfriendly bureaucracy and rules – many foreigners (and even Indians) are frustrated and discouraged from investing in India. In recent months, there has been renewed hope…


Indian Start-ups: Look beyond Flipkart and e-commerce

by Arun Jethmalani

medical-equipment The likes of Flipkart and other “Unicorns” are now finding it difficult to raise fresh funds at ever-higher valuations. Numerous start-ups with copycat e-commerce or hyper-local offerings are shutting down and laying off hundreds of workers. Essentially, the big deals we saw a couple of years ago have dried up.



  • Case study: Acquisition target for a PE investor in the KPO sector


Some client problems we have solved:

  • Pharma company acquisition study
  • White paper on publishing outsourcing for a global PE firm
  • Pitch document for potential investors in a start-up
  • Feasibility study for an e-commerce platform for home-chefs
  • Partner selection study in the banking & card payment segment


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