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The india sme potential

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Some facts and figures on India SME

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The india sme potential

  1. 1. I N D I A The land of endless opportunities Duleep Sahadevan Co-founder / Director - Software Associates Information Technologies P.Ltd
  2. 2. Small and Medium Businesses ● Home to about 4.88 crore SMB units ● Set to become the largest SME nation globally ● 55 per cent in urban areas ● There are around 1,200 SMB clusters across India
  3. 3. SMB - Which vertical ? ● Retail is the single largest - 2Mn ● Professional Services firms - 1.9 Mn ● Manufacturing enterprises - 1.2 Mn ● Hotels & Restaurants - 1 Mn
  4. 4. IT spend and growth ● Domestic IT spending is to grow at a CAGR of 12% ● To hit USD 36 Bn by the year 2015 ● Five lakh SMBs in India have websites ● Two million SMBs are accessing the Internet
  5. 5. SME - Is there money ? ● Contributes over 50% to Microsoft's India business ● Xerox derives about 55% of its business revenues ● Cisco "Network On Wheels" mobile van visits strategic industrial locations across key tier I, II and III cities ● Peutronics has 6000 plus dealers across the country
  6. 6. NASSCOM AWSME survey ● Young owners in business for at least 7 years ● There is an almost equal balance of in B2B and B2C ● A large percentage of businesses use direct sales to reach their customers ● SMEs rely on newspaper editorials
  7. 7. NASSCOM AWSME survey ● 48% - business software would make their company more efficient ● 83% - 5 - 30% increase in revenue over last 2 years ● 82% - expect similar growth pattern for 2 - 3 years ● 83% believe in personal training for software adoption
  8. 8. NASSCOM AWSME survey ● SMEs communicate in the local language plus English for purposes of business ● Decisions to adopt software are mostly taken by the owners’ family/friends ● A large % of respondents were never contacted by a Software Vendor
  9. 9. NASSCOM AWSME survey
  10. 10. NASSCOM AWSME survey
  11. 11. Don't think EVIL ● India has 27 million smartphone users ● Search queries in India grew 62 percent year-on-year ● 25 million active online buyers in the country ● Online trade worth $9 billion
  12. 12. Don't think EVIL ● 8% of population of 1.2 billion online ● Next 150-180 mn will access the Internet through a mobile device ● 65% of car buyers turn to the Internet as their first source of research ● Google Plus has 3 million users in India
  13. 13. Don't think EVIL - Internet users Maharashtra - 6860,000 Tamil Nadu - 2690,000 Karnataka - 5220,000 Kerala - 760,000 Delhi - 4900,000 Coimbatore -193,000 Ernakulam - 303,000 Madurai - 38,000 Mysore - 50,000 Mangalore - 45,000
  14. 14. ZINNOV SMB - Where to focus ● Tier I cities: demonstrate high awareness and adoption of technology. Direct,online and channel partners. ● Tier II cities: High Affordability and awareness. Availability of solutions does not match. Build a strong channel sales structure with skilled feet-on-street, and leverage influencers ● Tier III cities/ towns: Very low awareness and adoption. partner with telecom operators, device OEMs and technology resellers
  15. 15. The THIRD wave ● The number of product firms from tier-2/tier-3 cities has almost doubled in the last three years. ● Over 330 product companies are based in tier-2/tier-3 as of 2011 as per NASSCOM statistics ● Service companies will find it hard to scale further - need to adopt non linear model
  16. 16. The THIRD wave ● Strong and growing demand for local products in the domestic market today. ● All make use of high-tech software to reach their customers (Meru / Redbus) ● MNCs rub off on product eco system ● Funding ecosystem has seen improved considerably
  17. 17. The Goenka Mantra ● Stubbornness – in the absence of which a company is bound to diversify to offer services. ● Intolerance – first to market, encash early opportunity ● Mindset - building a company for next 10-15 years is different than for the next 2-3 years.
  18. 18. THANK YOU SLOW DOWN == BIG OPPORTUNITY Tweet @duleepsahadevan www.linkedin.com/in/duleep duleep.sahadevan AT gmail.com

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