1. India Market Trends
Rajabahadur V Arcot
b h d
Vice President & GN
ARC Advisory Group
raja@ARCweb.com
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2. Agenda
 Overview
 Growth Indicators
 High Growth Industries
 Growth Opportunities
 Recommendations
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3. Overview
India
•OOne among th few countries which has emerged
the f t i hi h h d
largely unscathed from the economic crisis
• Expected to achieve a growth rate of 7.4 percent
during 2009-2010 (India’s fiscal year is from
April to March)
• Manufacturing Growth – 10.8 percent
• Projected growth rate for 2010 – 9.4 percent
(IMF)
India Offers Growth Opportunities for
Automation S
A t ti Suppliers
li
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4. Other Growth Indicators
 The Central Bank and the State have already
initiated actions to withdraw economic stimulus
packages
 PMI has been above 50 since April 2009
60.0
58.0
56.0
54.0
52.0
50.0
48.0
46.0
44.0
Aug 09 Sept 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 March 10 April 10 May 10 June 10 July 10
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5. High Growth Industries
 Automotive and Auto component
 Cement and Glass
 Electric Power – Generation and Distribution
 Food and Beverage
g
 Metal Industries – Particularly Steel
 Oil and Gas, Chemicals
 Pharmaceuticals and Biotech
 High tech (Consumer Electronics, Medical
Equipments, and Telecom)
i d l )
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6. Automotive
 Expected to contribute 10 percent of India’s
GDP in the next 5-6 years
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 Emerging as manufacturing and engineering
hub for compact cars
p
• Tata Motor’s Nano
 On the radar screen global players pursuing
small car strategy
• Examples: Suzuki, Hyundai, Renault-Nissan, and
GM
 Emerging as an exporter of automobiles and
p
auto components
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7. Cement
 World's second largest producer of cement
after China
 Installed production capacity by end
September 2009– 231 million tons (MT)
 Capacity addition during April-September 2009
April September
- nearly 11 MT
 Capacity addition next y
p y year – 25 MT
 Both domestic and global Players are active in
the market
• Four of the top five global players are in India
(Lafarge, Holcim, Italicementi, and Heidelberg)
 Technology adoption and energy management
gaining importance
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8. Electric Power
 Demand for electric power outstrips supply
 Manufacturing companies constructing ‘captive’
power plants to meet in-house demand and sell
the available excess power
 Present generating capacity – around 150 GW
 According to ARC analysis, India needs to add
another 450-550 GW in the next ten years
 Some projections for the next decade:
• Wind power - 20,000 MW
• Solar power – 20,000 MW
• Nuclear Power – 20,000 MW
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9. Food and Beverage
 Indian food and beverage market: Around $200
billion
 Agricultural product exports: Around $20 billion
 Processed Food industry: Less than $15 billion
and growing at a CAGR of around 14-15 percent
 Investment in the pipeline: More than 20
billion in the next three years
Changing lifestyles and increasing
disposable incomes spur
food processing industry’s g o th
p ocessing ind st ’s growth
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10. Pharmaceuticals
 $20.0 billion industry
 Ranks 3rd by volume and 14th in terms of value
 Meets 70 percent demand of country’s bulk drug
requirements and nearly all of formulations
requirements
 Growth: 13 percent CAGR
 Highest number o the US Food and Drug
g est u be of t e ood a d ug
Administration (FDA) approved GMP
manufacturing plants outside the US
 Account for almost one out of four abbreviated
new drug applications (ANDA) filed in the US
 Files almost half of the DMFs in the US.
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11. Steel
 Fourth largest producer of steel in the world
 India accounts for 5 percent of global steel
consumption
 Last year steel consumption grew by 6.8
percent
 Projected growth of Steel consumption: more
than 10 percent per annum over the next
decade
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12. Growth Opportunities
 New investments in greenfield projects
• Process, batch, and discrete industries
 Renovation and modernization
 Increasing competitive pressures compel
companies to seek productivity and efficiency
i t k d ti it d ffi i
improvements
 Increasing a a e ess t at automation is a
c eas g awareness that auto at o s
business enabler and a strategic asset
 Automation moving beyond basic level
• MES, EAM, Safety (process and Machine) Systems,
Digital Manufacturing
 Energy management imperatives
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13. Recommendations
• Looking for growth oriented market? India is the
answer
• Increase marketing and sales resources – market
will reward especially in growing segments in
emerging technologies (solar wind biomass & others)
(solar,
• Invest in concept & value marketing, awareness
creation, and solution selling
• Focus on growing industry verticals and develop
appropriate strategies
• Examples:
• Electric Power Industry - conventional and
renewal generation and distribution,
g ,
Pharmaceutical, and others
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14. Thank You!
For more information, contact
raja@ARCweb.com
or visit ARC Advisory Group at
www.arcweb.com

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