The footprint of the Copernicus network has now expanded in to over 40 countries, and with the addition of various corporate financial services you are now able to obtain all the professional support that you need to fulfil your international ambitions.
If you have plans to expand internationally we can help, share your thoughts with us via [email protected], and we will share the ideas and methodology that may be able to fast track your growth.
Turkey & MENA
Turkey, Iran and neighbouring countries are undoubtedly in a region facing numerous challenges and undergoing major developments, but at the same time represent new opportunities in many business segments, such as energy, industry, construction, tourism and infrastructure. The same reasons that Copernicus selected Turkey as the centre of excellence for the region could equally apply to many businesses with international ambitions.
Working from Ankara and Istanbul, Copernicus Turkish experts will assist clients in this strategic and rapidly developing region. Our team speak the local languages, understand the local cultures and have an extensive contact network that clients can tap in to.
Why you should consider exporting to or sourcing from Turkey
A natural bridge between both East-West and North-South axis, Turkey is an efficient and cost-effective outlet to major markets providing easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa.
Facts about Turkey today
Turkey has a large domestic market and population:
• 39.9 million broadband internet
• 71.9 million mobile phone subscribers
• 57 million credit card users
• 166,5 million airline passengers including 35.9 million international tourists
• A population of 77.7 million
• Half the population under the age of 30.7 (2014, TurkStat)
• Young, dynamic, well-educated and multi-cultural population
• Increasing labour productivity
Turkey has a successful economy and internalized business environment
• Booming economy; more than tripling its GDP, reaching USD 800 billion in 2014
• Stable economic growth with an average annual real GDP growth rate of 4.7 percent between 2002 and 2014
• Promising economy with a bright future, an average annual real GDP growth rate of 3.6 percent
• 16th largest economy in the world
• Institutionalized economy with 144 billion USD of FDI in the last decade
• A dynamic and mature private sector with USD 158 billion worth of exports
• The second biggest reformer among OECD countries in terms of its restrictions on FDI since 1997
Turkey has had a customs union with EU since 1996:
• Highly competitive investment conditions
• Strong industrial and service culture
• Around 41,397 companies with international capital in 2014
• Customs Union with the EU since 1996 and Free Trade Agreements (FTA) with 20 countries
• Accession negotiations with the EU
• Corporate Income Tax reduced from 33 percent to 20 percent
• Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones, including total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation
• R&D and Innovation Support Law
• Incentives for strategic investments, large-scale investments and regional investments
Turkey has an advanced infrastructure and strategic energy corridor:
• Well-developed and low-cost sea transport facilities connected with EU, US, Far East and Middle East
• Railway transport advantage to Central and Eastern Europe, Levant Countries and Caspian Region
• Well-established transportation routes and direct delivery mechanism to most of the EU countries, CIS countries, North Africa, Caspian, Levant and Middle East Regions
• Development of free zones with their friendly regulations that have the potential to change the way international companies operate in Turkey
Turkey has a number of promising business segments and industry sectors:
• During 2015, Turkey represented the second highest country of origin for contractors in a list of the “World’s Greatest 250 International Contractors”, with 43 companies, second only to China.
• Turkish real estate developers are now seeking to make large scale developments more attractive and environmentally friendly. Inevitably there will be a demand for expertise in areas such as master planning, architectural design, property management, green building technology, interior design; design for leisure and aged care, hospital and hotel business.
• Turkey will have a demand for 21 million units of passenger cars in 2020. Turkish automotive part1 exports have passed 3 USD billion. Turkish suppliers export to more than 150 countries, including USA and major Latin American countries.
• Strong demand in energy consumption with an annual growth rate of 6%.
The Copernicus team in Turkey know the region and will provide high level strategic consulting services that will enable organizations to build a distinct competitive advantage. Clients that will benefit from the market entry services available will include all manner of investors, firms, private sector companies, non-profits, and governments. Our comprehensive, client focused portfolio offers project and business development, market entry, and strategic advisory services to organizations in a broad spectrum of industries, including, the construction, industry, tourism, finance, energy, automotive, infrastructure, healthcare, luxury goods and power generation business segments`.
Our experienced Turkish team has worked successfully on a wide range of strategic initiatives in Turkey. We can organise and promote trade events, exhibitions or assist with acquisitions. There are clear opportunities in construction, energy, industry, power generation, automotive, finance, infrastructure, healthcare, hotels & resorts, mining, etc. The list goes on. However, this region is challenging & tough with its complex cultural, social; legal & business environments that needs the support, advisory and guidance of the experts. Thanks to the services now offered by Copernicus, there is now a cost effective, commercial solution available to assist companies to break in to Turkey and neighbourhood countries
Opening doors in China
Copernicus reports that it has brought on top China experts to assist its clients in China. “We know the market and provide high level strategic consulting to private sector companies, non-profits, and governments. Our comprehensive, client focused portfolio offers project and business development, market entry, and strategic advisory services to investors, and companies in a broad spectrum of industries, including, the financial, clean tech, and entertainment sectors. We help international companies to develop, launch, and grow U.S. - China ventures ranging from identifying strategic investments and partners to television and film co-production projects.
“Our China team has more than 25 years’ experience and has worked successfully on a wide range of strategic marketing initiatives in China, including everything from developing and leading business and cross-cultural training programs for China’s ministries as they were transformed into key state-owned national corporate enterprises, to assisting with the launch of a U.S. clean technology center in Tianjin, China.”
Despite much of what has been written in recent times, if you have the right products or services China remains a true opportunity for western exporters. The results of a recent survey of Chinese business leaders across a variety of industry sectors confirmed that demand from a wide spectrum of industries showed little or no sign of abating. While luxury goods, financial, professional and business services were to the fore, taking a quick overview of a number of industry sectors looks equally promising.
China is the world’s largest energy consumer using over 20% of world energy. Demand is expected to grow 72% by 2030 China’s offshore reserves are in marginal fields. These require deep-water surveying, more sophisticated geological modelling and the expertise to drill in high-pressure and high temperature environments. This will lead to opportunities in China’s oil and gas production and supply including safety, subsea engineering, high pressure, high temperature (HPHT) field developments, oil and gas process machinery, equipment and technology.
Chinese real estate developers are now seeking to make large scale developments more attractive and environmentally friendly. Inevitably there will be a demand for expertise in areas such as master planning, architectural design, property management, green building technology, interior design, design for leisure and aged care, air monitoring technology and more.
As the world’s largest car market with sales of 30 million domestic cars forecast by 2020.The majority of which are produced in China through wholly Chinese owned manufacturers or Joint Ventures (JV) with leading Western automotive manufacturers. We can envisage profitable business opportunities within the sector, in areas such as local supply chain investment to modernize vehicle design and manufacture, low carbon vehicle technology, including electric vehicles, fuel efficiency improvement methodology, luxury imports, motorsport, construction equipment and the aftermarket industry.
All in all, China is a market that cannot be ignored by any business with international aspirations. Aerospace, renewable energy, power generation and marine (China is the world’s leading ship building nation with 45% of all orders by gross tonnage), life sciences, healthcare and culture. The list goes on. China is a different and complex market. When Apple looks to turn around its first ever decline in iphone orders it doesn’t look to the saturated western market, it looks East, where it must compete with Samsung, Huawei and the dynamic Xiaomi who sold 70M phones last year.
The development of Free Trade Zones in Shanghai, Fujian, Tianjin and Guangzhou, along with the new pilot Shanghai FTZ has the potential to change the way international companies operate in China. Despite all the positives, China is still a tough market to break in to. Business culture, knowing who to speak to, where and about what, securing payment and many more issues can deter many businesses from even attempting to enter the market. Thanks to the services now offered by Copernicus, there is now a cost effective, commercial solution available to assist companies to break in to the Chinese market.
COPERNICUS CHINA STRATEGIC CONSULTING SERVICES
For further information on how Copernicus can guide your business to success in China, mail us with an outline of your business, your ambitions for China and the challenges that you are currently facing. contact us today
As the world's fastest growing, free market democracy paces itself for a healthy growth, can your business afford to be left behind ?
Seventh-largest country by area in the world + the second-most populous nation with over 1.25 billion people ~ primarily comprising the youth, is a strong driver for demand, with an ample source of manpower, discretionary purchasing power, and looking forward to enhance their quality of life
Attracting many global organisations for growth oriented investments owing to the presence of vast range of industries and a supportive government
Strategic location - a large domestic consumer market with access to neighbouring international markets (8 nations) through regional integration frameworks (SAARC)
Skilled manpower and professional talent available at competitive cost
Policy environment provides for freedom of entry, investment, location, choice of technology, production, import and export
Investor friendly policies by the Federal and State Govt. agencies for certain industry sectors offer investment and tax incentives
Increasing incomes, generally low labour costs, simplified business procedures, willingness to collaborate for mutual benefit, are some major attractors for business growth
English is widely spoken and is the language of business
The GDP is estimated to be $US 2+ trillion (FY 2014 – 15); expected to reach $US 4–5 trillion in a decade, becoming the third largest economy in the world, in absolute terms
GDP Composition by Sector (FY 2015) ~ Services: 65 per cent; Industry / Manufacturing: 18 per cent; Agriculture: 17 per cent
Will continue to be the fastest growing economy in the world amidst volatile global market conditions; Expected to grow at 7.5 per cent in 2015-16, followed by further acceleration to 7.8 per cent in 2016-17 and 7.9 per cent in 2017-18, powered by greater access to banking, technology adoption, urbanisation and other structural reforms
Is fundamentally sound, liberalised, with strong growth potential and is emerging as a salient business destination. The on-going reforms are creating interesting trade and investment opportunities for organisations from around the world
Why India – Why Now !!!
Business opportunities in a range of industry sectors spanning ~ Education; Agri-Business; Clean Energy and Green Technology; Consumer Goods; Food & Beverage; Tourism; Aerospace; Defence; Infrastructure; Manufacturing; Information and Communication Technology (ICT); Digital Media, Film and Entertainment; Life Sciences (Biotechnology; Nanotechnology; Healthcare & Wellness) and Natural Resources. Some of them are highlighted below;
Infrastructure ~ requires over $US 1 trillion of investments over the next 5 years. Significant push towards building big infrastructure corridors (e.g. Delhi-Mumbai, Delhi-Kolkata) and new cities (100 Smart Cities). Renewed impetus to 24x7 water supply, drainage and sanitation, river cleanup (notably the Ganga) and inter-linking of rivers. Roads, ports, power generation, transmission and oil and gas are attractive sub-sectors to bring technical expertise and project delivery capabilities. Supply of products, services and technologies to the 100 Smart Cities development project as well as Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for 500 cities, with an outlay of US$ 7.47 billion and US$ 7.78 billion respectively. Integrated urban planning, land use planning, transport, urban design and architecture in a holistic manner are some key elements, of these initiatives.
Food and Agri-Business ~ being the largest consumer of dairy, pulses, sugar and spices, the food retail market is expected to reach $US 900 billion by 2020 (currently ~ US$ 369 billion) accounting close to 65 per cent of India’s total retail market pie. Food consumption to increase by 4 per cent
annually with food expenditure reaching to potentially $US 510 billion by 2030. Food processing output is also likely to triple from $US 20 billion to $US 120 billion by 2030 (growing at 9.5 per cent annually).
Retail ~ the sector is expected to double to approx. $US 1.2 trillion by 2020 (currently $US 630 billion)
~ driven by income growth, increase in the middle class population, rapid urbanization, and more nuclear families, leading to higher per capita consumption.
Automotive and heavy equipment ~ passenger + commercial vehicles + 2/3 wheelers, is set to be amongst the top 3 global markets with 10 to 12 per cent growth forecast over the next 5 years (investments estimated at $US 7.5 billion).
Defence ~ substantial domestic demand, with potential spending estimated at $US 150 Billion through 2017. The offset potential is expected to be at $US 10 to 20 Billion from setting up India- based defence manufacturing.
Renewable Energy ~ approx. 12% of a total of 243 GW of overall installed power generation capacity, as on date ~ target of achieving a renewable energy installed capacity of 41.4 GW by 2017, with a proposed investment to the tune of $US 80+ billion, over the next 7 years. The renewable energy potential ~ about half in the form of small hydro power, biomass, and wind & half in solar, co- generation, and waste-to-energy, will help enhance its energy security.
Information & Communication Technology ~ comprises of IT services, business process management (BPM), software products and engineering services, and hardware. The growth is primarily dominated by IT software and services such as custom application development and maintenance, system integration, IT consulting, software testing, and web services. The industry is expected to reach $US 300 billion in revenues by 2020.
Approx. 1.03 billion mobile phone subscribers, and 375 million internet users, poised for strong growth in the e-commerce space.
Biotechnology ~ market is estimated to reach USD 11.6 billion by 2017 (from $US 7 billion in FY15). Biopharma (comprises vaccines, therapeutics and diagnostics) is the largest sector contributing about
62 per cent of the total revenue followed by Bioservices (18 per cent), Bioagri (15 per cent), Bioindustry (four per cent), while Bioinformatics is still at a nascent stage contributing just about 1 per cent of the total revenue. India has emerged as a leading destination for clinical trials, contract research and manufacturing activities.
Entertainment ~ Comprises of Films, Print, TV, Gaming, Animation & VFX, Music, Digital Advertising, and Radio. The overall market size is expected to reach $US 29 billion by 2018.
• Largest producer of films globally (1000+ movies each year) with 400+ production & corporate houses involved in film production
• 3rd largest TV market in the world with 800+ TV channels ~ TV penetration in India is expected to reach 72% by 2017 (currently at 65%)
• The Gaming sector comprises of PC gaming, Wireless and mobile gaming, Console gaming and Online gaming. With 3G & 4G platforms coming through, the potential is growing at a never before speed, propelled by a large young population, increasing wireless device users and proliferation of game developers and publishers.
• Gaming and television are expected to register a CAGR of 16.2 per cent each, followed by growth rates of animation and VFX (15.9 per cent), music (13.2 per cent) and films (11.9 per cent).
Potential for export to India or source from India
India is the destination of choice for many companies seeking new growth market opportunities. It has a huge potential and an explosive growth trajectory over the next few years. The rapid rise of a huge middle class population with the purchasing power and an appetite to consume, is attracting the attention of companies, from around the world.
India’s position as a supplier and consumer of high quality, competitively priced, niche products, technologies and services is received favourably around the world ~ exports stood at $US 20+ billion as at November 2015
Key trading partners (export markets) - USA, Germany, UAE, China, Japan, Thailand, Indonesia and European Union. Also tapping newer markets in Africa and Latin America.
FDI Inflows (as at September 2015) - Services Sector (17 per cent), Construction Development (9 per cent), Telecommunications (7 per cent), Computer Software and Hardware (7 per cent), Drugs and Pharmaceuticals (5 per cent), Automobile (5 per cent), Chemicals (4 per cent), and Trading (4 per cent). Received private equity (PE) inflow worth $US 21 billion in 2015 (67 per cent growth from 2014). With the government relaxing FDI norms in many sectors including defence, single brand retail, construction and civil aviation, the foreign investment into India can be envisaged to continue to rise.
Who would benefit ?
Any business enterprise from around the world with a long term business commitment in India will realise the benefits as time progresses, from an expanded market and not just an export market.
Organisations from outside of India, need to “Reach the market, Understand the market, Give it what it wants”, and possibly customise to address the specific needs. The focus on India is to be addressed with enthusiasm and interest commensurate with its new global standing. Patience and perseverance are the key factors for business growth, and local presence / representation is recommended for pursuing business opportunities.
We will promote the business interests of the organisations, saving enormous time, cost & resources, benefiting the companies keen on;
• Commencing exports to India
• Expanding their existing business in India
• Investing in India to pursue business growth, or
• Leveraging India's acknowledged strengths in product design, reconfiguration and customisation with creativity, assured quality and value addition - factors that outweigh mere cost considerations, utilising India as a regional hub to address the needs in multiple markets.
The Road to India ~ Partner with us !!!
Every market is unique and the team in India is well positioned to add value through providing in- market intelligence, assistance, advice and on-ground support in India, for a business entity’s market entry / business expansion. Within this environment, we will help you navigate the market through sharing holistic insights on the nuances of doing business, cultural aspects, etc..
We shall make highly regarded business introductions, towards fructifying the organisation’s business endeavours ~ through delivering customised services to suit specific business needs and objectives – from accessing demand chains to partnering with innovative technology companies.
We are focused on accelerating our clients’ growing commercial engagement with India, and can readily connect companies (large, medium or small) interested to source or promote goods, services and technology with appropriate suppliers and marketers ~ including product manufacturers, business partners, service providers, distributors, institutions, statutory agencies, and others as required.
As is so often the case in India, its potential is enormous and so are its challenges. With the current government and its decisive mandate, India is at the cusp of its next economic renaissance, and we welcome you to partner with us, to harness the business opportunities.
xport Pre Shipment Finance: a method in the export payments landscape.
In trade finance there are many instruments available for each and every transaction. The major exporters are able to access trade financing to suit their export sales transaction cycle. Meanwhile the SME exporter is usually at the mercy of the buyer and his local bank manager, unable to get access to anything like the support the larger exporters receive, until now;
Export Pre-shipment Funding Facility; eXPFF ®©
This programme has been created by TradeTeamglobal and designed to address some of the most talked about issues facing an SME exporter, today;
• Collateral; to satisfy the facility provider.
• Risk mitigation; ensuring that the exporter is paid through his buyer's Letter of Credit.
• Liquidity management; providing financing so the goods are exported to the buyer.
This is done by isolating the transaction into a single cash event; an export sales transaction which, subject to performance, has a defined start and end date as well as predictable cash flows in the Documentary Letter of Credit presented by the buyer. We obtain the right to monitor the transaction documents and processes thereby allowing the exporter to acquire an eXPFF position for the export sale where he can use “his buyer’s” Documentary Letter of Credit as collateral for the funds advanced. Exporting is in our blood and our exporters’ talk to the world every day. Why? Well, it is really very simple! Exporting can mean increased sales and profit, especially to a small business.
But for all the opportunities exporting provides, it can present as many challenges;
I. Access to finance to suit the transaction cycle,
II. Fear of not being paid by the buyer through a Letter of Credit, and,
III. Running a trade finance position to support the export transaction execution.
For years now, banks have been complaining that Basel III would discriminate against trade finance. They claimed that the new regulation does not take into account the characteristics of trade instruments, treating them as riskier than they really are. That is true, trade instruments are less risky. And we agree with the banks! However, it is the SME exporter that looses the most. There are significant benefits for exporters including the SME exporters using trade finance to enhance their export sale transaction cycles.
The Export Pre-Shipment Funding Facility (eXPFF) provides an export trade transaction facility to small and medium size companies that export against Documentary Letters of Credit. The exporting company can use their buyer’s letter of credit as collateral to support the trade transaction facility. TTg has created a trade transaction facility fund for exporters which is supported by accredited trade transaction investor’s working through our unique fund to support SME exporter sales transaction and growth.
All facilities are independent of any commercial bank collateral or line of credit. Facilities stand on their own and are self liquidating. As a trade financing technique based on performance, it is particularly well-suited for new, young and fast growing exporters who see the facility offer as a cost of goods sold which will strengthen their exports sales growth.
The eXPFF (Export Pre-Shipment Finance) provides an export funding to small and medium size companies that export against documentary letters of credit. The exporting company can use their buyer's letter of credit as collateral to support the eXPFF and also as the reimbursement mechanism. The eXPFF is put in place for not less than 30 days and not more than 90 days. A Funding Facility Fee is charged for its use from the time the funds are drawn down until they are returned from the letter of credit proceeds. The Funding Facility fee for 30 days is prorated per day for each day over the minimum 30 days up to the maximum 90 days; at which time the eXPFF matures and must be repaid. The eXPF is independent of any commercial bank collateral or line of credit, it stands on its' own and is self liquidating when the proceeds from the letter of credit are paid. The eXPFF is directly linked to the LC’s shipment.
SME............... small and medium enterprises (SMEs) are typical export clients.
Exporter... ......exporting companies that export from the UK
Margin............gross sales margin of a least 20% in the transaction.
Cycle...............goods are within 30 days of being able to be shipped.
WIP............. ...eXPFF is not used for work in process (WIP) financing.
Shipment... ....eXPFF can be directly linked to a set of negotiable documents representing title.
First Position..applicant has no outstanding liens that could replace the eXPFF position.
Taxes... ..........applicant has no outstanding taxes due.
Principle........applicant takes possession of goods and does not simply "trade" the bill of lading.
Frequency.....company ships at least four times a year under a letter of credit.
Value.............average shipment is at least £50,000.
Letter of Credit is a Documentary Letter of Credit which conforms to UCP 600 Article 4.b.
Terms of an eXPF facility:
Application Fee: £2,500 paid with the application for an eXPFF and once off.
eXPFF: A maximum of up to 80% of the value of the export letter of credit.
Facility Fee: Four percent (4.00%) per 30 days; prorated on Cost of Goods; COGS
Terms of Facility: Minimum of 30 days up to 90 days, at which time it is due and payable.
Reimbursement: TTg as beneficiary or through an assignment of proceeds.
Collateral: Documentary Letter of Credit supported by a promissory note for principal and fees.
The manner of the structure and way it is deployed means that liquidity is driven to an exact point in the export sales cycle. It accelerates the cash into the exporter and help pay and prepay for the next export sale. It allows the exporter to use non standard, non banking lines to bridge a gap in the export cash flow cycle. However, the service does not compete with exporter’s local banking credit lines. More importantly it delivers unique elements not currently available with traditional banking products that attempt to fill this gap;
Facilities offered by TTg overcomes many of the problems encountered in accessing second tier finance whilst at the same time enhancing the primary source of finance....HOW &WHY?
An eXPFF does not conflict with existing bank lines as we do not compete for the same collateral.
Improves P/L and Balance Sheet which in time enhances opportunity with existing local bank lines.
Not like new equity finance, therefore no stake / shareholding required.
Can be used even if customer has discounting and outside equity finding.
Use when necessary unlike say factoring...have to use.
Simple to structure and use.
For further information on the services we offer to the exporting sector please contact [email protected]
Smart Foreign Exchange
Your bank must giving you the best deal on your international transfers, right? And if you take your foreign exchange needs elsewhere they won't be happy, right?
Unfortunately, the banks rarely have your best interests at heart. With their chronically short-term thinking, the banks’ interest in your company, and what financial products would actually benefit it, only extends as far as what currency you are trading in and how much. Banks don't make their money in FX - they rely on credit interest. Foreign exchange is just a side business for them, so the banks don’t have a real reason to give you the best deal and keep you as a FX customer.
Independent foreign exchange brokers, like Currency UK [https://www.currencyuk.co.uk/for-businesses/], are the polar opposite. As they live and breathe FX, brokers are in an infinitely better position to give strategic advice on your foreign exchange needs. FX dealers aren't just interested in what currency and how much, they always strive to have a complete understanding of your business. This allows them to give you the best recommendations on how to manage your finances in the short and long term.
The ever-present spectre of Brexit is a prime example of a situation where companies like Currency UK really come into their own. For all the pundits may talk, not one of them has a crystal ball that can see the result of June 23rd. Businesses need to be able to plan for any and all eventualities; international trade could get very difficult come summer.
Brokers have a wide range of tools at their disposal to protect businesses from the risk that events like Brexit pose. Forward contracts allow you to fix an exchange rate up to a year in advance, consequently UK exporters have been protecting themselves from Euro profits depreciating should the UK decide to stay with Europe. Similarly, UK importers have been protecting against supplier costs rocketing if the UK votes to leave Europe. If you don’t mitigate your company’s risk ahead of Brexit’s potential chaos, you’re taking a huge gamble.
With Brexit on the horizon, it’s more important than ever for companies to have a clear FX strategy in place. Thankfully, Currency UK offer a free consultation service where they review your business’ current currency handling procedures and propose bespoke risk management strategies. They also highlight cost savings that we can deliver. Simply give them a call on +44 (0) 20 7738 0777, refer to Copernicus, and they do the rest.