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ALTIOS Australia: your trusted advisor in navigating India's complex mining sector

Picture - India mining

February 2024

With a team of 270+ India-based experts, ALTIOS International stands as a trusted advisor who can help you navigate India’s burgeoning mining sector and reap the many benefits of.

India boasts the production of nearly 95 minerals across fuel, metallic, non-metallic, and minor categories and holds a significant position in the global mining landscape. This, coupled with the recently established Free Trade Agreement between India and Australia paves the way for a host of opportunities.

ALTIOS Australia has been a proud member of Austmine for 5 years, – Australia’s leading association in the global mining industry.

Most recently, ALTIOS was privileged to take part in Austmine’s first training program of the year 2024: “Australian METS India Growth Program”. This provided the most innovative businesses in the Australian METS sector with a detailed introduction to the Indian Mining Market and an overview of the key networks and events in the industry.

ALTIOS’s experts delivered insights on:

  • Successful Market Entry Strategies for India
  • How to do business in the Indian business environment (clue: it is not a single market)
  • Step-by-step overview of the export plan essentials and the considerations in the Indian market
  • Advice on how to refine a marketing and value proposition, and Pitch Preparation
Picture - India Flag

India’s markets are exciting and growing and we find more companies asking us how to best enter and succeed  in India. Having helped 100s of companies from all types of industry including many machinery manufacturers for mining and associated industries, we know that preparation is key to success. Understanding your market potential and the best way for you to tap it can help you save a lot of time and money down the line” says our Head of Advisory in India Vipulansh Sharma.   “One case study is the journey of Ammann in India: here is our MD interviewing their Director”

“The insights provided by ALTIOS have been critical to preparing our members for entry into the Indian market. This will no doubt lead to increased sales and business growth for the Australian METS sector, and will help participating companies manage the complexities and risks of operating in international markets.” Sheldon Varcoe, Manager – International Projects, Austmine.

Why India?

Picture - India
  • One of the fastest-growing major economies
  • Unprecedented opportunities for advanced technological tools and solutions.
  • Socio-political and economic stability.
  • Ever-increasing demand, and
  • Favourable demographics.

The mining sector in India is a multifaceted contributor to the economy, accounting for 2.2% to 2.5% of the gross domestic product (GDP) and approximately 10% to 11% of the total industrial sector’s GDP. 

More than just economic figures, the sector provides employment opportunities for approximately 700,000 individuals, further emphasizing its socio-economic significance.

The Metals and Mining sector in India is expected to witness a major reform in the next few years, owing to reforms such as Make in India Campaign, Smart Cities, Rural Electrification, and a focus on building renewable energy projects under the National Electricity Policy as well as the rise in infrastructure development.

A major segment or iron & steel industry is the segment of secondary producers which contributes more than 40% to the production of crude steel. The role of secondary steel sector in infrastructure development is immense. 

As the third-largest energy-consuming nation globally, India’s perpetual demand for power and electricity drives a surge in the need for coal, a crucial component in meeting the energy requirements of the nation.

According to the Indian Brand Equity Foundation (IBEF), the mining sector is poised for substantial growth, with an expected compound annual growth rate (CAGR) of 7.5% from 2020 to 2025, reaching a staggering value of US$ 36.2 billion by 2025.

India’s claim as the world’s second-largest crude steel producer further solidifies its position in the global market. With the government’s intensified focus on infrastructural development, including the construction of roads, railways, airports, and more, the demand for steel is projected to grow by approximately 10%. India also holds a competitive edge in steel and alumina production and conversion costs, facilitated by its strategic location, which opens doors for export opportunities to fast-developing Asian markets.

Despite the sector’s significant strides, there exists substantial room for improvement. Acknowledging this, industry experts underscore the imperative for embracing technological advancements to unlock the industry’s full potential. For regular updates on India’s mining industry see our Indian subsidiaries updates here.

“The use of new technology and digitalisation is the need of the hour for the Indian steel and minerals industry to achieve its expansion targets and goals,” emphasizes industry experts.

As India navigates its mining landscape, the synergy between governmental initiatives and private sector innovation will be pivotal in shaping a sustainable and prosperous future for the nation’s mining sector.

Want to learn more?

Contact our team for more information on market entry strategies and insights on conducting business in India and fostering networking opportunities.

/ Daniela TOUZEBusiness Development Manager, Australia email: d.touze@altios.com

/ Vipulansh Sharma, Head of Advisory, India email: v.sharma@mv-altios.com

Australian wine industry resilience over China's tariffs

Australian wine - Illustration
January 2024

In recent years, the Australian wine industry faced an unprecedented challenge with the imposition of tariffs by China, a once-thriving market that accounted for a substantial 40% of total exports. This abrupt shift dealt a severe blow, causing the market value to drop from an impressive $1.28 billion to a mere $8.1 million. The root of this issue can be traced back to strained diplomatic relations between Australia and China, further exacerbated by export bottlenecks during the COVID-19 pandemic.

Amid this challenging landscape, a glimmer of hope emerged during the China International Import Expo (CIIE) in November 2023. It was announced that Australian wine tariffs are expected to decrease within the next five months. This announcement sparked optimism within the Australian wine industry, especially among winemakers who had previously faced substantial losses.

Now is the time for Australian wineries to adjust and thrive in a transformed and complex market.

To reconquer the Chinese market, Australian wineries must ask themselves:

     / What unique value proposition can they offer to stand out in the competitive Chinese market?

     / How can they tailor their products to meet the changing preferences of Chinese consumers

     / What strategic decisions around marketing, distribution channels, and partnerships need careful consideration?

Australian wineries need to understand the importance of formulating effective strategies and not overlook the importance of a robust business plan. Beyond simply welcoming the potential reduction in tariffs, wineries need to be proactive in shaping their future by understanding the nuances of consumer behaviour and market trends.

The Australian wine industry, having weathered the storm of Chinese tariffs, now stands at a critical juncture. The expected decrease on tariffs not only signifies the potential for a revival of exports to China but also marks the beginning of a new chapter—one where resilience and adaptability are the keys to unlocking the industry’s full potential.

Bottle with a glass of Australian wine

Are you an Australian company looking to expand or re-enter in China?

ALTIOS strengthens its FDI offering for Government Agencies by Acquiring Frenger Consulting Services Ltd, a Leading FDI Advisory Firm Headquartered in the UK

Press Release – November 2nd, 2023

Attracting international investment from Mid-Cap companies expanding globally to accelerate business growth in cities, regions, provinces, states and countries.

ALTIOS International (750+ people, 37 global offices in 22 countries) announces the acquisition of Frenger Consulting Services Ltd (a leading foreign direct investment advisory firm with 40 years’ experience, HQ in London) to strengthen their team of FDI experts, data analytics and networks.

Together, ALTIOS and Frenger Consulting Services Ltd will provide strong FDI expertise, corporate networks and results to Economic Development Organizations looking for new investors on a global scale.

With synergies across both organizations, the two firms will leverage their respective international footprint and in-country delivery capabilities in 22 countries, tools and teams of FDI experts, to create an integrated global FDI offer to Government Agencies, Economic Development Organizations (EDOs) and Investment Promotion Agencies (IPAs).

Your Trusted Partner for International Investment

Together, the alliance of Altios International and Frenger Consulting Services creates a leading international FDI services firm supporting Government Agencies to attract and retain international investors in different geographical locations: 

/ Over 55 years of combined experience in FDI promotion for EDOs and IPAs;

/ A unique and powerful international network of over 750 professionals in 37 global offices : USA, Canada, Mexico, Brazil, UK, France, Italy, Spain, Germany, Poland & Eastern Europe, UAE, India, China, Hong-Kong, Singapore & Southeast Asia, Vietnam, Malaysia, New Zealand and Australia;

/ A local presence in the world’s key hubs: LATAM, APAC, Middle East; 

/ Over 12,000 fast-growing companies worldwide supported through their international journey;

/ Over 350 international FDI missions for institutions in Europe, the Americas and Asia Pacific.

We know what it takes to succeed internationally and our clients benefit as a result

This acquisition aims to create long-term value for our corporate clients who believe that internationalization is a key asset for their growth strategy. Altios’ 12,000 corporate clients all over the world will benefit from an increased network and extended expertise for their international investment projects.

EDOs and IPAs will benefit from Frenger Consulting Services’ expertise and from Altios’ local presence in 22 countries to instantly access all major markets and boost their inward investment growth worldwide.

Altios has been supporting businesses expand internationally for 30 years, with a considerable increase in interest in our business model in the past few years” says Patrick Ferron, Co-Founding Partner of Altios International. “Altios and Frenger Consulting Services Ltd have a shared vision and our partnership enables us to take a big step towards achieving this. Our combined platform will add tremendous value to Government Agencies to gain access to our networks and customer base to facilitate international inward investment into their local ecosystem” says Patrick Ferron.

Joining Altios is a natural fit for Frenger Consulting Services Ltd. We specialize in supporting EDOs and IPAs who are looking for new investors in key growing international markets. Altios’ international presence, with local offices in Europe, the Americas and Asia Pacific expands our footprint and direct access to the corporate clientele targeted by our customers. This merger is also a key advantage for international companies assisted by Altios to facilitate their international expansion thanks to our introductions with local authorities and government agencies” say Pauline Bourcet and Marie-Laure Decotignie, Managing Partners at Frenger Consulting Services Ltd. 

About ALTIOS: Founded in 1991, ALTIOS is a leading global advisory firm focused on Small and Mid-Cap companies’ international expansion and cross-border investment. We help companies with a unique presence of 750 multi-cultural specialists in 37 global offices spanning the 22 global largest markets. ALTIOS has been supporting 12,000 ambitious companies, from global growth strategy to international business expansion, incorporation and accounting with everyday compliance administration – HR, payroll, accounting, tax … – to strategic cross-border acquisition and direct investment, acting as an international trusted partner. 

We generate new revenue and streamline international operations in the world’s major growing economies.

ALTIOS works with global companies, investment funds, banks, trade associations and government agencies.

Our values: Listening, Team Spirit, Agility, Passion, Entrepreneurship

Contact: www.altios.com, Linkedin

Press contact: Patrick Ferron, Co-Founding Partner, p.ferron@altios.com

About Frenger Consulting Services Ltd: Founded in 1983, Frenger Consulting Services Ltd is a leading international FDI advisory firm providing services to Economic Development Organizations and Investment Promotion Agencies looking to attract international investors into their territory. Headquartered in London, we provide FDI lead generation services to agencies from Europe, the Americas and Asia. Our strengths are our team of experts, our proprietary CRM with more than 130,000 companies researched on the basis of their international growth potential. We act as an extension of our clients’ team on the ground. 

Contact: www.frenger.com, Tel: +44 208 202 4111

Press contact: Pauline Bourcet, Managing Partner, pbourcet@frenger.com

Why Payroll Outsourcing is a Game-Changer for Foreign Companies in India?

Picture - Payroll

August 2023

Managing payroll administration in a foreign jurisdiction can be a surprisingly difficult task, as each country has its unique laws and regulations about social security, taxes, and employee payrolls.

As a foreign company operating in India, you may be struggling to keep up with the complex and constantly changing payroll regulations and requirements and may find yourself devoting significant time and resources to interpreting and complying with this legislation. Spending countless hours on tedious administrative tasks can take your focus away from growing your business in India. This is where outsourcing your payroll can be a game-changer for you.

Given the complexity of payroll management, which involves both human resources and accounting aspects, outsourcing payroll services can be a viable option for foreign companies in India looking to streamline their operations and reduce the burden of managing payroll on their own.

In this blog post, we will delve deeper into why outsourcing your payroll can be beneficial for your foreign business in India. So, sit back, relax, and let us guide you through the benefits of outsourcing your payroll.

Outsourcing payroll services

Running a business in a foreign country can be a challenging task, especially when it comes to managing complex activities like payroll. In-house payroll management can quickly become overwhelming, with multiple factors to consider right from calculating taxes to issuing paychecks on time, especially when you have limited resources. Additionally, keeping up with the varying laws and regulations in India can further add to your agony.

Outsourcing payroll services to trained professionals can help international companies operating in India streamline their payroll and HR processes, freeing up valuable time and resources for their core business operations.

Who should outsource payroll processing?

Outsourcing payroll processing is recommended for various types of businesses, including:

  • Foreign market entrants: Companies entering a new foreign market who are unfamiliar with local regulations should consider outsourcing payroll processing to avoid compliance issues and minimise the risk of errors.

 

  • Small and medium-sized enterprises (SMEs) with limited budgets: SMEs may have limited resources and budgets for an independent in-house payroll department. Outsourcing complex and tedious payroll tasks to trained professionals can help them save significant costs and time.

 

  • SMEs looking for advanced payroll automation software: Outsourcing payroll processing can provide access to advanced payroll automation software, which SMEs may not have the budget to purchase and implement in-house.

 

  • Rapidly expanding companies: Companies experiencing rapid growth may have limited time and resources to devote to payroll processing. Outsourcing can allow them to concentrate on core business goals while ensuring payroll is handled accurately and efficiently.

Key benefits of outsourcing payroll services for foreign companies operating in India

  • Improve compliance with local employment and tax laws

Every country has unique payroll requirements, and staying compliant requires payroll administration teams to have an in-depth understanding of country-specific regulations. It requires them to stay current with the latest payroll-related regulations including contribution rates, minimum wage increases, and more. Errors in payroll processing can put companies at risk of non-compliance.

To ensure compliance and mitigate risk, outsourcing payroll to a third-party expert is a wise decision. By doing so, companies can leverage the expertise of a local payroll partner, who is dedicated to ensuring all payroll processes adhere to local laws and regulations. This allows companies to stay up-to-date with changes in regulations at the state, federal, local, and industry levels, without having to invest significant resources.

  • Streamline HR function

Outsourcing payroll services can simplify the human resources department’s workload and allow them to focus on employee relations and strategic issues. This approach can reduce costs and address burdensome administrative tasks.

By transferring payroll responsibilities to a third-party provider, businesses can avoid hiring and training additional staff, saving resources and enabling them to concentrate on their core activities. Ultimately, outsourcing payroll services can help streamline operations and reduce the overall cost of managing this function in-house.

  • Overcome cultural and communication barriers

Foreign companies operating in India face challenges such as team-building, oversight, and communication due to language and cultural differences. Assuming what works at home will work abroad often leads to frustration and failure. To connect with other cultures and maintain relationships with international employees, companies must pay careful attention to different cultural values, holidays, and communication patterns.

To overcome this, companies can rely on a payroll partner with local expertise who works with in-country professionals to ensure compliance with country requirements and provide local, real-time support to talent.

  • Maintain confidentiality and transparency

In-house payroll accounting carries the potential risk of losing sensitive employee personal data. This is why it is advisable to consider outsourcing payroll accounting. This approach helps maintain confidentiality while limiting access to payroll details to key decision-makers and senior staff. To ensure data security compliance, it is essential to partner with a reliable payroll provider that offers secure solutions, including data encryption, storage, and reporting.

Choose the right payroll partner for your business in India

Managing payroll for local employees is critical for foreign companies expanding operations in the Indian market. By partnering with a local payroll expert like M+V Altios, foreign companies can navigate every challenge of running a hassle-free payroll function.

From ensuring compliance with local laws and regulations to providing expert guidance, M+V Altios’ innovative and fully customized payroll solutions can help you streamline your payroll process and improve your overall business operations in India.

We help you to effectively manage payroll and address payroll-related challenges such as hiring the right talent pool, preparing employee contracts, paying employees in local currencies, safeguarding sensitive employee data, and staying up-to-date with evolving compliance requirements.

Get in touch with us to know how our payroll services can help you maximize cost efficiency and accuracy and streamline the payroll process.

How to choose a manufacturing site in Vietnam

Picture - How to choose your manufacturing site in Vietnam

June 2023

Vietnam ended 2022 with a GDP growth rate of 8%, placing the country at the top World GDP growth rate. With its dynamic economy, and as one of the major ASEAN countries in China + 1 Strategy, the demand for having a manufacturing site in Vietnam has skyrocketed. Now more than ever, companies should seize the opportunity to expand in the country. But how to pick location that meets your business’ needs?

In this article, ALTIOS’ experts will share with you 3 key steps for a mistake-free choice.

1. Secure your manufacturing site in Vietnam's location

This is the key bottleneck for site selection. Many projects were denied after the site check because the government had not approved of the location or park.

In fact, each park has a previously admitted sector list: light and heavy industries can locate in it, as well as sectors whose wastewater reaches National Type B. In other cases, certain parks accept safer industries.

To maximize your and your investor’s time, make sure to secure your business’ location approval and feasibility.

2. Consider these 6 factors for optimal selection

Location:

A well-connected location will become a unique value for a manufacturing site in Vietnam. In fact, the country is divided into 3 main zones: North, Middle, and South, and each one contains different regions with unique advantages. In addition, the presence of possible and future clients, as well as the proximity with local suppliers, also plays a huge role in your factory’s success. Choosing where to set up your business will have a major in pact on its profits.

Manufacturing site legal conditions:

Vietnam has the overall rule for IRC, ERC, environmental, and fire certificates. Certain regions are more preoccupied with investment quality and environmental security, so further documentation may be required, along with evidence for the investors.

These aspects should be well-defined and clarified before the final decision. Moreover, an expert operator can strategically guide the investors to complete processes.
Our international expansion specialists can support you through these crucial steps.

Infrastructure:

Logistics supports:

Every manufacturing site in Vietnam is legally obliged to include:
an internal traffic system, electricity and water systems, a drainage system, a wastewater treatment system, fire prevention and fighting systems, and telecommunications systems.

Since not all locations meet the legal infrastructure standards, ensuring that is the case for your factory will make a huge difference.

Pay close attention to wastewater treatment systems. International investors need good wastewater treatment support to ensure the commitment to the cross-country compliance and ESG values of the global group.

An incidence in a subsidiary can diminish the stock price of the whole group on the Nasdaq or Euronext.

When choosing the right location for your manufacturing site in Vietnam, it is important to consider logistics availability in its varied aspects.

Transportation (road, highway, inland waterway, seaports), high-quality transport supplier–forwarder, as well as the cost for the distance between the different locations.

Abunding with logistical options can positively impact your business’ adaptability to variation.

Keep in mind that the logistics cost in Vietnam is still higher than neighbor countries Thailand and Singapore. For this reason, a fine decision needs to be made to insure an optimal cost

Human resources:

Nowadays, general workers have a fluctuating supply in Vietnam. In some periods, it’s very easy to hire. Sometimes, it’s extremely rare to find general workers. Finding a location that can provide
a stable supply of workforce
is important if your business needs
a high quantity of workers.

As for hiring skilled workers, it is another story. Skilled workers’ availability depends on the current businesses on the site and the existing training and formation in the region. Some training is rare in Vietnam, like die-casting or dyeing. Some training is only concentrated in big cities like IT, and finance.

A good scan of human resources availability needs to be made before choosing your manufacturing site in Vietnam to facilitate recruitment in the future.

Facilities for staff relocation:

When developing abroad, numerous businesses relocate experts and managers from other countries. To ensure international standard lifestyles, the new factory must be well connected to a modern city with international education and healthcare systems.

A prior scan before the final decision can help not only in location selection but also in cost estimation.

3. Build your Business Plan

A check of your manufacturing site in Vietnam will give you many details, including land price, legal consultancy cost for the administrative procedure, current local salary, relocation costs, etc. With this information, the investors can estimate the P&L project.

In many cases, land price is much higher in an adequate location than it is in a less appropriate one, in addition to the logistics costs.
In other cases, every other condition is good, but the lack of international facilities limits the foreign expert relocation.

An optimal decision always needs local insights, that’s the reason why third-party consultation does a great contribution to the expansion’s success.
Reach out to one our experts for more information.

Want to learn more?

If you are interested setting up in Vietnam, read our article How to ensure effective interultural communication for doing business in Vietnam

5 key steps to succeed your international recruitment

Picture - 5 key steps to succeed your international recruitment

In the context of a very tense job market with a war for talent, successfully recruiting has become a real obstacle course. Defining your project and the profile you are looking for, finding and recruiting the right person who will be able to integrate and lead the company to success, and then building loyalty are all challenges that must be met when recruiting… especially internationally! 

To maximize your chances of success, we share with you 5 key steps to succeed in your international recruitment!

1. Defining the position and its challenges

Before starting your international recruitment, it is essential to clearly define your vision and your project internally. It is very common to find yourself held back in a recruitment process because the challenges of the position have not been completely understood by all the decision-makers, or because there are differences of opinion.

To avoid this pitfall, it is essential to bring together all the key people in the project and define :

  • The vision: Why do we choose to recruit? What need(s) are we addressing?
  • Job objectives: What are the 3 main objectives assigned to the new talent during their first year (e.g. to enter a new foreign market)?
  • The position’s missions: What are the main missions? What are the secondary missions? To help you, you can break down the major objectives mentioned above into concrete tasks
  • The future of the position: What are the prospects for development? What are the challenges ahead?

You need to ensure that everyone involved in the recruitment process is aligned with the position’s challenges and opportunities. This will maximize the chances of success, but it will also allow you to present candidates with a clear vision of the challenge and the issues related to the position.

Finally, it is essential to define the international recruitment process beforehand: recruitment stages, people involved, etc.

Once the position and its stakes are clearly defined, you will be able to establish the recruitment specifications to maximize your chances of integrating the right person.

2. Identifying soft skills with a well-established set of specifications

As we have seen, the labor market is under pressure at the European and international level. The scarcity of talent and skills, especially for international profiles, makes recruitment more complex. The responsibility of recruiters is therefore twofold: to carry out the recruitment process, but also to find the talents whose values are aligned with those of the company they are joining.

For example, today in France 46% of employees are no longer with the company within 18 months of joining and in 36% of cases the failures are due to a mismatch of cultures and values. The problem is often not technical skills, but the misidentification of soft skills (behavioral competencies) of talents.

Before starting your international recruitment, it is therefore necessary to identify the soft skills that are essential to integrate into your organization. We recommend that you associate a precise description to each of the identified soft skills: for example, you need a talent with an entrepreneurial spirit because the person will be the first representative of your company who is still unknown in the target market.

In the context of international recruitment, the important soft skills may be commercial temperament, the adaptability, multicultural openness, the quick decision-making, etc.

When creating your specifications, it is obviously necessary to complete the soft skills required with technical skills (language skills, specific training, experience in a specific sector, etc.).

Drawing up your specifications and paying particular attention to identifying the required soft skills will allow you to maximize your chances of success and to integrate the right talent!

3. Focusing on a neat and attractive job ad

In order to attract the best profiles, you must also refine your job ad and communicate your company’s values. In the context of a tight job market, you must ask yourself why a candidate would want to join your company rather than another. It is necessary to offer attractive perspectives and a stimulating work environment.

Since the global pandemic and with the arrival of generation Z on the job market, expectations have changed. It is therefore necessary to offer more than just a salary: what will motivate candidates to apply goes far beyond the simple financial aspect (project, challenge, work environment and team cohesion, teleworking, work/life balance, etc.).

Concerning the writing of the ad, we advise you to articulate it according to the format :

  • A short but precise title
  • Context of the position and quick explanation of the issues
  • Presentation of the missions
    Presentation of the profile sought
  • Sharing the company’s values in a “Why join us?”: this section is essential to attract candidates to your company!

Finally, making your proposal appealing and sharing an attractive ad will allow you to attract the best profiles and put all the chances on your side for your international recruitment… but we will see, it is not the only way to find good profiles!

4. Finding candidates with a proactive approach

In the current context, it is estimated that more than 70% of recruitments for Sales, Management, Marketing or Export Management positions are finalized through direct approach. In other words, as there are very few candidates on the market, most of the people recruited are approached while they are still in the job!

If you want to recruit the right person, you need to take a proactive approach and reach out to the best talent directly.

This new way of recruiting can take time, which is why we advise you to:

  • Invest in the right tools (access to online CV libraries for example)
  • To outsource your recruitment if the direct approach is too time consuming
  •  

In all cases, you should not rely solely on posting ads to finalize your recruitment. The direct approach will allow you to maximize your chances of success!

5. Understanding of international recruitment issues

Finally, whether you are recruiting a person in a foreign market or in your country for an export function, you must anticipate international HR issues.

It is essential to secure various aspects before you even begin your recruitment:

  • The multicultural aspect: business practices abroad are often very different from those in our own country and it is therefore necessary to understand them to be sure to recruit a talent that can adapt (to local practices if the talent joins the parent company and to your own practices if the talent is foreign and works locally)
  • The legal aspect: for example, during international mobility, it is necessary to declare your employee as soon as he/she leaves for a foreign country
  • Hiring: when recruiting in a foreign market, make sure that you have studied the possible hiring options and that you will be able to recruit in full compliance (labor law, remuneration, charges, health, immigration if necessary, etc.)

We advise you to get in touch with experts who will be able to assist you in securing your international recruitment project and will be able to enlighten you on the different issues to anticipate.

In conclusion, international recruitment for export functions or local markets is a strategic decision, often necessary for companies to accelerate their international deployment.

A recruitment error can cost, in terms of productivity gains, up to 15 times the base salary of the employee you hired! It is therefore necessary to prepare the project in advance, in order to secure it and maximize your chances of success, in a context of a tense labor market.

Our ALTIOS HR experts can assist you in your recruitment project, do not hesitate to contact us!

What about Global HR?

As an SME or medium-sized company, you are certainly looking for solutions for your international HR strategy.

Morgane Pinault, Head of the Global HR Solutions Practice by ALTIOS, answers 3 key questions regarding the role of human resources in the internationalization of a company.

Morgane Pinault

What advice and solutions for a company wishing to expand into a new market?

In their internationalization process, most companies will focus on their strategy or finance to get the project done. However, all business starts once you have invested in people.

In fact, 80% of French SMEs and SMIs believe that Human Resources are an obstacle in their internationalization strategy.

It is therefore essential to address this issue and place the employee at the center of the international project.

Global HR by ALTIOS: what are the concrete solutions we can bring you?

Two years ago, we worked with our clients in Open Innovation mode to determine the best HR solution to meet the HR challenges of our clients.

With them, we have designed an HR compass that allows you to always find the solution to your problem in France and internationally.

Our ADVISE offer

Our RECRUIT offer

We intervene at different levels. Upstream :

  • How do I organize my human resources to develop internationally?
  • How do I align my HR strategy with my international strategy?
  • Which talents are already in my company?
  • How do I evaluate them, and how do I develop them?
  • Which talents do I need to equip myself with?

We also intervene in the HR transformation of companies, through assessment, through reorganization, through post-acquisition projects.

  • How do I integrate a new company or a new activity into my company?

Human resources being a key issue for our clients, we are involved in recruitment.

  • We recruit for you international profiles specialized in Business Development, International Strategy, Marketing or Management. And this, in France and abroad.
  • When you are facing a crisis or a particular situation that requires temporary recruitment, we can work with you on interim management.

Have you finally identified the right talent for the right project in the right place in the world? We will secure your project by providing all our technical, administrative, social and salary support, but also by providing you with a solution dedicated to the performance of your employees.

A fulfilled employee who succeeds in his or her mission in his or her country is a success for him or her, and a success for your company.

What is the added value of Global HR Solutions by ALTIOS?

It’s about our international presence through our dedicated HR experts.

You can count on us to be your trusted partner for all the HR issues you face today.

Moreover, you can rely on us at your headquarters to coordinate all your international projects, but also locally. Indeed, we will do our best to support your local teams in their performance.

Put people back at the heart of your international project and count on us to support you.

Watch the full video:

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What can ASEAN offer the international manufacturers?

Picture - Local Insight ASEAN preview

November 2022

Is ASEAN the new global Manufacturing Hub?

The markets of the Southeast Asian countries offer very interesting prospects. 60 % of the region’s population is expected to be middle class by 2030. ASEAN is also preparing its members for the Fourth Industrial Revolution.

The Association of Southeast Asian Nations (ASEAN) is one of the most successful inter-governmental organisations in the world today. The ASEAN Free Trade Area (AFTA), which includes its ten member states, has increased Intra-Asia trade fourfold from 2000 to 2017, while global trade grew only 2.8 times in the same period. A key driver of this growth is the manufacturing sector of the ASEAN economies, contributing more than 20% of gross domestic products in markets like Singapore, Indonesia, Malaysia, and Thailand. The sector has shown an annual growth rate of 6.6% between 2016 and 2021 and is attracting more and more foreign investments because of its low operating and transaction costs. 

The pandemic has proven to be a golden opportunity for the ASEAN nations to move up the manufacturing value chain. Worldwide political and economic trends, especially the increasing wages and tightening regulations in China and its ongoing trade war with the United States, have prompted international companies to rethink where they make and source their products. As Boston Consulting Group concludes in its latest analysis of the ASEAN manufacturing sector: “Companies seek to make their supply chains more resilient against disruption, those in sectors ranging from medical technology to consumer electronics have made a shift to Southeast Asia as a leading alternative location, to diversify their manufacturing footprints and to produce goods closer to end markets.” 

Picture - ASEAN medical technology

What can ASEAN offer your company?

ASEAN is working hard to resolve internal hurdles for international manufacturers in the region. In November 2020 a free trade agreement, The Regional Comprehensive Economic Partnership (RCEP), was signed by fifteen East Asian and Pacific Nations, which is expected to significantly accelerate the flow of finished goods and investment between the Southeast Asian countries and its trade partners such as China, Japan, South Korea and Australia.

Currently international companies that manufacture in ASEAN for the regional market are still facing challenges when it comes to exporting their products from country to country”, says Arnoul d’Arschot, Head of Advisory & Business Development at ALTIOS International. “But the RCEP will create greater access to Asia’s biggest and most developed markets, which will lower the costs of importing manufacturing inputs, and make it easier for companies to build supply chains that leverage different advantages and skills across the region.”

The Southeast Asian countries that make up ASEAN are no longer just a low cost destination where international companies manufacture their goods at competitive prices to then export them back to Europe or the U.S. The markets of the member countries offer very interesting prospects. For example, sixty-five per cent of the region’s population is expected to be middle class by 2030. In fact, one of the region’s rising stars, Vietnam, took just 10 years, from 2010 to 2019, to double its GDP per capita from 1629 dollar to
3419 dollar.

ASEAN is also preparing its members for the Fourth Industrial Revolution, by setting up structures that give manufacturers in less developed countries, like Indonesia and the Philippines, to work with solution providers from Singapore to adapt to this development faster. “If ASEAN can take full advantage of these trends, it is estimated that by 2030 the region can generate up to 600 billion dollars a year in additional manufacturing output, increase annual foreign-direct investment in manufacturing by up to 22 billion dollars, and create up to 140,000 new jobs a year”, says Arnoul d’Arschot. 

Infographic ASEAN

Softbox: Manufacturing innovative and award winning packaging systems in ASEAN

Packaging innovator Softbox is based in Singapore, where it works with multiple manufacturers to produce its award-winning temperature controlled packaging solutions. “Our systems offer a great solution for sectors that need to strictly control the temperature of their products while shipping, like the pharmaceutical industry”, explains Christophe Guillot, Regional Manager Asia for Softbox. “For example, we designed a special, ultra-low temperature system for COVID-19 vaccines in 2020. Creating and manufacturing specific packaging systems requires us to work with manufacturers that are both innovative and detail-oriented.”

Softbox is benefitting a lot from the fast adaptation of industry 4.0 solutions in the manufacturing sector of Singapore. “Our solutions initially were only suitable for one time use, but we’re currently focusing on the sustainability and the reusability of our products, so we are working on a new range that can be reused several times or refurbished”, says Christophe Guillot. “Besides this, the newly available technologies allow us to improve the tracking and control options our clients have with our packaging. For example, customers get better insights in the temperature regulation and the location of the products, which are solutions the market is asking for currently due to the big challenges in global distribution. Our technology makes sure our clients’ products will reach their destination with complete integrity.” 

How to set up manufacturing in ASEAN

If you are interested in setting up a manufacturing location in one of the ASEAN countries, it is important to have a very clear idea of the goal you want to achieve in the region and then select the country that best fits that scenario. “Every country in ASEAN asks for its own approach. They are very different, different economies, they are at different moments in their growth”, says Arnoul d’Arschot. “For example, Singapore is a very mature economy, but Indonesia and Vietnam are still developing. You can’t approach ASEAN as a whole or with one strategy. It’s therefore important to establish your objective and then find a partner with good knowledge on the region to help you find the country that is the right fit for your company and can help you get started there quick and effortless. ” 

For more information, please contact:

Arnoul d’Arschot
Head of Advisory & Business Development / SEA & ANZ
T. +65 6352 7714
M. +65 9349 6781

Visit our website:
www.altios.com

Other website to visit:
www.asean.org
www.softboxsystems.com

This article was written from a webinar “Is Asean the new Global Manufacturing Hub?”

Insights & Promising Trends » organised in October 2021, with:
• Speakers Arnoul d’Arschot, Head of Advisory and Business Development for ALTIOS Southeast Asia / Bruno Mascart, Group Managing Partner, from ALTIOS,
• Special guests Christophe Guillot, Asia Regional Manager, Softbox Systems Ltd. / Stéphane Livet, VP Sales Asia, SPS INGROUPE

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India Trade Pact

India on 2nd April 2022 signed a historic free trade agreement with Australia that will make Australian exports and imports to India cheaper which will create huge new opportunities for workers and businesses. 

In 2020, India was Australia’s seventh-largest trading partner, with two-way trade valued at $24.3 billion, and the sixth-largest goods and services export market, valued at $16.9 billion. The free trade agreement between Australia and India would benefit both countries.

“Annual bilateral trade is expected to almost double from $27.5 billion in 2021 to about $45 billion or $50 billion in the next five years.”

Australia will offer zero-duty access to India for about 96.4 percent of exports (by value) from day one. The free trade agreement will cover many products which currently attract 4-5 percent customs duty in Australia. Labor-intensive sectors which would gain immensely include textiles and apparel, few agricultural and fish products, leather, footwear, furniture, sports goods, jewelry, machinery, electrical goods, and railway wagons.

Are you an Australian company looking to enter or expand in India? Contact Us.

Australian companies that are looking to do business in India should have a very clear idea of the goal they want to achieve in the Indian region. To properly reap the benefits of the free trade agreement, you should always engage a consultant who can better help you with the entry or expansion in the Indian market.

Trade Pact Benefits for India – Sector Wise

  • Pharmaceuticals: Fast track approval for patented, generic, and biosimilar medicines using the Comparable
    Overseas Regulator pathway, and fast track quality assessment/inspections of manufacturing facilities.
  • Textiles:  70% textile products and 90% apparel products attract 5% duty in Australia. This tariff will be
    eliminated, and India’s exports of textiles and apparel are expected to go up from US$ 392 million to US$ 1100 million in the next 3 years.
  • Engineering Products: Elimination of 5% customs tariff in Australia on Export of Iron and steel products, scientific
    and medical instruments, parts, transport equipment, and non-electrical and electrical machinery.
  • Gems and Jewellery: Elimination of current 5%custom duty on Jewellery items in Australia.
  • Leather & Footwear: Around 94% of India’s exports of leather products to Australia attract a duty of 5%. With to reach US$ 100 million in the next 2 years.

Trade Pact Benefits for Australia – Sector wise

Australia will benefit a great deal from India’s enormous market size of more than one and a half billion. The free trade
agreement is great news for lobster fishers in Tasmania, wine producers in South Australia, macadamia farmers in Queensland, critical minerals miners in Western Australia, lamb farmers from New South Wales, and wool producers from
Victoria, and metallic ore producers from the Northern Territory.

Preferential tariffs for Australian goods exports to India

  • Sheep Meat – Elimination of tariffs on entry into force (EIF).
  • Wool – Elimination of tariffs on EIF.
  • Seafood – Elimination of tariffs on entry into force for fresh rock lobster and elimination of tariffs over 7 years for other fresh, frozen, and processed seafood products.
  • Infant formula – Elimination of tariffs over 7 years.
  • Barley, oats, and lentils – Locked-in duty-free entry for barley and oats and immediate 50% reduction for in-quota exports of lentils.
  • Nuts – Elimination of tariffs over 7 years on cashews, macadamias, shelled pistachios, and
    hazelnuts. For almonds, immediate 50% tariff reduction on in-quota exports.
  • Fruit and vegetables – Elimination of tariffs over 7 years for avocados, onions, cherries, and berries.
    Reduction of tariffs over 7 years for apricots and strawberries. For oranges, mandarins, and pears, immediate 50% tariff reduction for in-quota exports.
  • Wine – Tariff reductions over 10 years for bottles over import prices of US$5 and US$15 and guaranteed best market access by India in any future FTA.
  • Resources – Elimination of tariffs on entry into force for coal, alumina, metallic ores such as copper, manganese and zirconium, titanium dioxide, and certain non-ferrous metals.

The two sides hope to conclude negotiations on a broader, comprehensive economic cooperation agreement by the end of this year.

If you are an Australian company looking to avail the benefits of this ambitious trade pact but are not sure whom to approach, you can consult a partner like Maier Vidorno Altios who can help your business to enter or expand in India.

Maier Vidorno Altios provides a full range of professional services including global growth strategy, partner search,
and venture validation, local sales and business development, accounting, payroll and tax services, and HR solutions including recruitment, outsourced employment, and HR advisory services, cross-border acquisition, and site location.

 

/ Thomas Breitinger, VP Development, Germany Cologne, email: t.breitinger@mv-altios.de

Source : DFAT Australian Government

For the first time
since the start of the pandemic, Australia is reopening its borders. The
roadmap announced by the prime minister Scott Morrison is gradual and country
specific for fully vaccinated travellers. Interstate travel has been granted
from the 1st of November between New South Wales and Victoria whilst
fully vaccinated travellers from New Zealand are now able to enter Australia.

From November 21st a travel bubble with Singapore will come into effect and allow quarantine-free travel between the two countries. Other countries will be addressed during the coming months.

Access the full article: https://www.cnbc.com/2021/11/01/australia-reopens-its-borders-to-new-zealand-and-singapore.html