Business Plan for Hollister's India entry strategy and manufacturing setup

Hollister was planning to set up its first new manufacturing facility in over 30 years in north India. The company wanted to ensure they did their due diligence before going ahead with the proposed venture, and were seeking key inputs for their decision making process. In addition to advisory, they were looking for an Indian partner to assist in the implementation of their overall India entry strategy.

Hollister was planning to set up a manufacturing facility in north India. The company had existing facilities in the US and Europe and was looking to establish its first new manufacturing facility in over 30 years. The company wanted to ensure they did their due diligence before going ahead with the proposed venture, and were seeking key inputs for their decision making process. In addition to advisory, they were looking for an Indian partner to assist in the implementation of their overall India entry strategy.

We provided complete business and regulatory advisory and setup support for Hollister's Greenfield manufacturing plans in India. As the implementation partner for the overall project, Nexdigm (SKP) assisted in the planning and execution phases on the following key aspects:

Phase 1: Business Plan and Capital Structuring

We worked closely with Hollister's management team for a period of four months and provided a detailed business plan. The level of detail and insights presented in this document served as a useful reference to the client for budgeting and monitoring expenses throughout the project lifecycle. We also made recommendations on capital structuring and potential project funding options. This extensive background preparation enabled Hollister to firm up their India entry strategy, with the assurance that the venture had good potential for success.

Phase 2: Project Support

In the project phase, Our initial role was providing project management support in key aspects of the proposed manufacturing setup. The role included project planning, vendor onboarding and management, contractual obligations tracking, obtaining registrations and approvals, human resources support, treasury, information technology, drafting of policies and several other areas. We reviewed all prospective vendor contracts, andprovided feedback from a commercial perspective as well as potential tax planning possibilities.The role included dealing with contractors for the release of funds, cost and time overruns, vendor payments and invoice management.

Tax Advisory: We provided crucial advisory with respect to tax implications and compliances during various stages of the project. It including setting up Hollister's inter-company transfer pricing, preparing detailed manuals to comply with complexity related to indirect tax provisions and availing various exemptions and benefits.

Other activities included managing project cash flow and providing feedback w from an accounting and tax standpoint for capitalization and development of a fixed asset register per Indian and US Generally Accepted Accounting Principles (GAAP).

Phase 3: Ongoing Support

Although the project was completed in 2009, Nexdigm (SKP) continued to be a vital partner to Hollister by providing advisory and assessment services in the areas of direct tax, indirect tax, and transfer pricing. Our services also include tax approvals for duty-free export/import, obtaining incentives, refunds, tax scrutiny and assessment. We assisted Hollister in some tax litigation matters with the Tax Appellate Tribunal. We also provides ongoing support to Hollister for GAAP conversion and payroll management.

Nexdigm (SKP) provided complete business and regulatory advisory and setup support for Hollister's Greenfield manufacturing plans in India. We worked closely with Hollister's management team to provide a detailed business plan. We also made recommendations on capital structuring and potential project funding options. This enabled Hollister to firm up their India entry strategy, with the assurance that the venture had a significant potential for success.

In the project phase, Nexdigm (SKP) provided project management support including project planning, vendor onboarding and management, contractual obligations tracking, human resources support, drafting of policies, etc. We reviewed all prospective vendor contracts, and provided feedback from a commercial perspective taking into account potential tax planning possibilities.

Although the project was completed in 2009, Nexdigm (SKP) continued to be a vital partner to Hollister by providing advisory and assessment services in the areas of direct tax, indirect tax, and transfer pricing.