Sez PPT For Assocham

SEZ Exploring the Trillion $ Opportunity

“ India has a potential to lead the world in 2022 with its predicted largest pool of manpower consisting of 200 million college graduates and 500 million trained and skilled workforce. It could be home for at least 30 of the Fortune 100 companies of the world and generate over 10% of the world trade. …….. This is possible in next fifteen years provided leaders focus on this goal as a priority. ” C.K.Prahlad In his vision of India @ 75

The Chinese Experience ,[object Object],[object Object],Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances.” - The Art of War, Sun Tzu

SEZs ,[object Object],Indian Model for SEZ is different from China but it is capable of being as effective. As against one large SEZ, India has numerous relatively small sized SEZ. This causes anxiety amongst certain factions in India about the potential benefits and advantages of SEZ that will accrue to India. However the fears are unwarranted. Firstly, our key focus is not just on manufacturing sector. Services sector holds immense potential and SEZ policy is also devised to cater to this sector. Services SEZ do not require large parcels of land. In fact small SEZs close to the city is advantageous. Further, multiplicity of SEZ ensures competition amongst developers. Competition is virtuous and is ultimately beneficial to exporters. The advantages of competition will accrue in the medium to long run. In contrast to certain other countries, MSME sector is one of a predominant contributors to GDP and employment. Using this analogy, small may indeed be beautiful and the large number of small sized SEZ can help India achieve the a greater share in the pie of world trade.

Competing with China ,[object Object],[object Object],[object Object],[object Object],[object Object]

Weaknesses of China ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Our Strengths against Their Weaknesses

Strengths of India ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Our Strengths against Their Weaknesses

“Win Without Fighting” India can use its competency, experience, good will and expertise in grabbing a major share in the increasing pie of service exports Service Sector holds immense potential

Service Sector constitutes a major portion in the GDP of Developed Countries. Its share in the GDP of developing countries is steadily increasing. This opens a wealth of opportunities for India “ Win Without Fighting”

Providing Complete Solutions ,[object Object],Providing a slightly expensive product with great service is the key

SEZ A Potent Tool To Compete With China

SEZs …. Giving exporters the Competitive Edge Export Competitiveness Spill over effect of benefits to Third Party Suppliers Direct Benefits to Exporters Trickle down effect of benefits to SEZ developers 20% savings in constructions Tax exempt earning Faster clearances Low cost finance Local tax and duties exempt Exempt earning Indirect tax exemptions Local taxes exempt Export Obligations Manageable and flexible Faster clearances Lesser legal formalities More funding options More flexibility Reliable and cost competitive utilities better infrastructure better logistics The process streamlines More activities permitted to be sourced and outsourced Indirect tax exemption Deemed exporter status

Development Strategies: Key Takeaways " Strategy rests on choosing a unique position by offering a different mix of value than competitors “ Prof. Michael E. Porter

Theme Based Development ,[object Object],[object Object],[object Object]

Leveraging Flexibilities in SEZ Development ** ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Key Learnings Key strategies evolved from the experiences of successful SEZ Developers in India Alternate Business Structures Henzberg’s Strategy Optimum Land Use Business Models Client Mining Right Client Mix Cross- Subsidization Redefine Profit Centres Development Strategies

Business Model For SEZ ,[object Object]

Steps to Devising a Great Business Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Example

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Sez PPT For Assocham

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