Business Opportunities in India By Roll Nos.: 8206 to 8210
India-Strategic Overview• Rich human and industrial resource.• Fourth largest economy in the world.• Second largest GDP among developing countries.• Large consumer market.• Growing middle class with substantial purchasing power.
…Continued• English is widely spoken in India• Since English is widespread in business and commerce globally, very less communication barriers in India.• Vast stretch of the land rich in natural resources.• one of the richest countries in the world in terms of human resource.• India is a great country for investment.
Why invest in India• India is a large and rapidly growing consumer market constituting up to 300 million people for branded consumer goods.• This market is estimated to be growing at 8% per annum.• Demand for several consumer products is growing at over 12% per annum.
Indicators of viable investments.• Rich base of mineral and agricultural resources.• Well developed and sophisticated financial sector.• India has long history of stable parliamentary democracy and is not really affected by political turmoil.
FMCG• The FMCG sector comprises of a market size of 13.1 billion US$ and is the forth largest in the economy.• Expected to grow by over 60% by 2010• Urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%.• 50 per cent growth in rural and semi-urban India by 2010(Analysis by Associated Chambers of Commerce and Industry of India).• Growing penchant of rural and semi-urban folks for FMCG products.
PHARMA• A US$ 8.2 Billion pharmaceutical market.• Between 2007-08 and 2011-12, the Indian domestic market is expected to grow at a CAGR of nearly 16%.• The export market is growing much faster than the domestic market.• Drugs for diabetes and cardiovascular diseases expected to see the fastest growth.• Future will see strong growth in the specialty branded generics and patented drug segments
RETAIL• Growth at 13 percent annually to reach $590 billion in 2011-12.(Indian Council for Research on International Economic Relations ICRIER).• The organized retail likely to grow at a much faster pace of 45-50 percent per annum.• Unorganized retail sector is expected to grow at about 10 percent per annum.• According to Year 2009’s Global Retail Development Index India is positioned as the leading destination for retail investment.
AGRICULTURE• Population expected to be 1.4 billion by 2020• This, coupled with growing income will generate increased demand for food grains and non-food grain crops.• Expected growth rate 4 p.c.p.a• Well adopted tech. for growing and processing of fruits, vegetables, traditional herbs, spices and plant extracts for the pharmaceutical industry.• Also tech. for production of organic horticultural produce for the export markets.• The opportunity lies in Production of basic raw materials such as : improved seeds, new plant material, Agricultural equipments such as small tractors, harvesters and specific custom built equipment to manage tropical fruit trees and plants.
REAL ESTATE• The development is attributed to the off-shoring and outsourcing businesses.• Several MNCs continue to move their organisational operations to India to take advantage of low manpower and other costs.• The real estate market in India remains unorganised, fairly fragmented• And mostly characterised by small players with a local presence.• The opportunities lie in affordable, low cost housing• In India there is tremendous shortfall of middle class housing as majority of the developers are involved in developing high class housing.
TELECOM• Telecom sector, clocked a 42.2% growth in the quarter ended this September.• “The telecom sectors potential in India remains under- tapped and growth rate especially in rural India, will remain robust” –Sanjay Kapoor, President Bharti Airtel.• The rural circle, where penetration is 12.72%, will drive the growth in the coming years.• It is projected that subscriber addition in rural areas would exceed additions in metros by 2012.• Statistically in the first nine months of 2008, the four metros together added 10.3 million subscribers, while the rural circles added over 11.3 million, - TRAI.
CEMENT• In last ten years, cement sector has recorded a compound annual growth rate (CAGR) of 8%• Second largest cement producer in the world after China.• Govt. support for infrastructure development has opened tremendous opportunities for the cement industry.• With demand surpassing supply, 50 Kg bag of cement is currently costing Rs. 210-215.• Per Capita production of cement: India – 115 Kg World avg. – 250 Kg China – 450 Kg
References• Websites:• India Business Information and consulting services.• RNCOS E- services Pvt. Ltd.• Reports:• Opportunities in the Indian Agricultural Sector for new generation of Entrepreneurs, Leaders and Managers by Mr Shriram Thosar Retired Deputy Director - Department of Agriculture Soil Testing and Soil Survey of India, Akola.• Articles:• An article by Anto Antony & Durba Ghosh, ET Bureau on “Telecom beats slowdown blues, contributes big to GDP growth” dated 20 December 2008.• Is the Fix In? India’s Cement Industry Faces Cartel Pressures WRITTEN BY PARAS VERMA