2. 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.
3. …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.
4. 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.
5. 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.
7. 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.
8. 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
9. 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.
10. 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.
11. 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.
12. TELECOM
• Telecom sector, clocked a 42.2% growth in the quarter
ended this September.
• “The telecom sector's 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.
13. 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
14. 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
