Services Energy Sector Report November 2017

For updated information, please visit www.ibef.org November 2017
SERVICES

Table of Content
Executive Summary……………….….…….3
Advantage India…………………..….……..4
Market Overview and Trends……….……..6
Strategies Adopted………….……..………15
Growth Drivers and Opportunities…..……17
Case Studies………...……………...……...26
Industry Associations……….......…………30
Useful Information……….......…………….32

For updated information, please visit www.ibef.orgServices3
 The services sector of India remains the engine of growth for India’s economy and contributed 53.8 per cent
of India’s Gross Value Added in 2016-17.
 The sector registered 7.7 per cent growth in 2016-17
 India had net service exports of US$ 67.5 billion in 2016-17.
 India had 28.6 per cent of its population employed in the services sector in 2016-17.
EXECUTIVE SUMMARY
Key Driver of Economic
Growth
 A large pool of skilled IT manpower has made India into a global outsourcing hub. It now commands a 55 per
cent share in the global sourcing market.
 India achieved the second highest growth rate in services exports in the world in 2016 at 3.6 per cent year-
on-year.
Global Technology Hub
 The government’s move to launch ‘Startup India’ aims to create an inclusive ecosystem for entrepreneurs
and push for innovation. Services are a big part of this system. The technology infrastructure required for
such an ecosystem has increased the potential for the sector in India.
 Low setup costs make this sector an attractive investment destination and the 60.7 per cent share in India’s
FDI inflows in 2016-17 is a sign of the same.
 India also has reasonably well developed financial markets.
 All these factors make Indian services sector an attractive ecosystem for both the entrepreneurs and the
investors.
Attractive Ecosystem
Source: Economic Survey of India, DIPP

ADVANTAGE INDIA
 India is the export hub for software
services. It has a 55 per cent share in the
US$ 178 billion global sourcing market.
 India is also becoming a destination for
medical tourism as a result of cheaper but
quality healthcare services.
 India has immense potential in tourism
services and earned US$ 23.2 billion from
exports of travel services in 2016-17.
 Services sector has received the most FDI
inflows between April 2000 and
September 2017 reaching US$ 62.39
billion.
 The sector received 60.7 per cent of the
total FDI inflows to India in 2016-17.
 100 per cent FDI for any regulated
financial sector activity under the
automatic route.
 An already established technology base
and infrastructure that will help in the
creation of an ecosystem for other
services.
 Large pool of skilled manpower, especially
in the areas of IT & ITeS available at a
relatively low cost and and a rapidly
increasing youth population looking to
migrate from agriculture to other sectors.
 Government of India is working to remove
many trade barriers to services and tabled a
draft legal text on Trade Facilitation in
Services to the WTO in 2017.
 Government is promoting necessary
services and will charge zero tax for
education and health services under the
GST regime.
 Skill India, a multi skill development
programme has been started to equip the
workforce with the necessary skills required
by the sector.
ADVANTAGE
INDIA
Source: Economic Survey of India 2016-17, DIPP, NASSCOM
Source: WTO- World Trade Organisation

Services
MARKET OVERVIEW
AND TRENDS

SERVICES SECTOR CLASSIFICATION
Source: Indiabudget
Services sector
Road transport
Trade and repair
services
Hotels and
restaurants
Railways Air transport
Financial
services
Real estate,
ownership of
dwelling and
professional
services
Transport,
storage,
communication
and
services related
to broadcasting
Public
administration
and defence
and others
Trade, repair,
hotels and
restaurants

SHARE OF SERVICES SECTOR GROWS AT THE
FASTEST CAGR
50.0
50.9
51.8
52.9
53.8
8%
8%
10%
10%
8%
0%
2%
4%
6%
8%
10%
12%
48
49
50
51
52
53
54
55
FY13
FY14
FY15
FY16
FY17*
Growth of India's Services Sector (GVA at basic price)
GVA (%)
Source: Indiabudget
Note: *GVA - Gross Value Added at constant (2011-12) basic prices; CAGR - Compound Annual Growth Rate
 India achieved Compound Annual Growth Rate (CAGR) of 13.20 per
cent between 2011-12 and 2016-17 in services share to GVA.
 In terms of overall GDP India ranks 5th in 2017 and in terms of and
services GVA India ranked 13th respectively as of 2015.
 Services sector GVA* as a percentage of total GVA reached 53.8 in
FY17.
 An acceleration in the growth rate of Public Administration and other
services (11.3 per cent in FY17 from 6.9 per cent in FY16) supported
the increase in FY17, which was in turn supported by the
implementation of the recommendations of the 7th Pay commission.
Visakhapatnam port traffic (million tonnes)India's Services Sector GVA (at basic price and % of total)

SERVICE SECTOR PMI
50.6
51.6
50
52.6
51.1
52.4
53.9
53
52.4
49.6
47.7
50.8
51.8
51.30
53.20
50.10
53.60
54.30
51.40
54.30
53.70
51.00
50.30
51.90
54.70
52.00
54.50
46.70
46.80
48.70
50.30
51.50
50.20
52.20
53.10
45.90
47.50
50.70
51.70
40
42
44
46
48
50
52
54
56
Source: Indiabudget, Bloomberg
Nikkei India Services PMI (Monthly)
 The services sector is the key driver of India’s economic growth
 The Nikkei India Services Purchasing Managers' Index (PMI) increased to 51.7 in October 2017 from 50.7 in September 2017.

TELECOM, IT-BPM SHOWCASE WORTHY
PERFORMANCE IN FY17
Performance of India's Services Sector FY17 (Share of total
Services sector GVA)
 The segment Trade, repair, hotels and restaurants remains the
largest contributing subsector to services sector GVA.
 Few sectors have shown reasonably good performance in FY17,
including,
• Telecom - with increase in telecom connections reflecting the Jio
effect,
• Aviation - particularly domestic travel; aggregate number of
passengers increased 17.3 per cent YoY in FY17
• Tourism related services - particularly in terms of foreign
exchange earnings as international tourist arrivals rose 11.93 per
cent and reached a total of 9.2 million in FY 2017.
• Information technology-business process management (IT-BPM)
sector also exhibited sound growth.
18.4%
21.1%
14.2%
Trade,hotels,transport,communication and services related to
broadcasting
Financial, real estate & professional services
Public Administration, defence and other services
Source: Indiabudget

India’s Services Trade
Source: Economic Survey 2016- 17
 Till the global financial crisis of 2008, India’s services exports was
registering a good growth for almost a decade.
 Services export growth reduced to 11.9 per cent CAGR during 2005-
06 to 2014-15 from 21.6 per cent CAGR during 1994-95 to 2004-05.
 As a result of pick up in some sectors such as transportation and
business services, services exports grew by 5.7 per cent in 2016-17.
 Business services exports and financial services exports, which
account for 20.2 and 3.1 per cent of the total services, recorded a
growth of 13.6 and 3.1 per cent in the year 2016-17 respectively.
 Travel accounts for 14.2 per cent of the total services exports, and it
recorded a growth of 9.3 per cent due to a significant rise in foreign
tourist travels.
 Transportation services exports increased by 13.2 per cent in 2016-
17 as compared to -19.9 per cent in 2015-16 which reflects
improving merchandise trade activity.
 Due to higher payments in two major service categories- travel and
miscellaneous (mainly software and financial services), India’s
service imports recorded a growth of 13.0 per cent in 2016-17.
 Despite a growth of 5.7 per cent in services exports, growth in
services imports led to a decline in net services receipts by 3.2 per
cent.
Visakhapatnam port traffic (million tonnes)
Trade Performance of India’s Major Services in 2016-17
(US$ billion)
23.2
15.9
121.2
73.7
32.9
5.1
163.1
16.4
14.1
63.0
3.6
32.3
5.9
95.7
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
Service Exports Service Imports

HIGH FDI INFLOWS INTO THE SECTOR
8,684
3,652
1,966
2,338
916
5,564
1,517
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Services
Sector
Computer
Software&
Hardware
Construction
Trading
Hotels&
Tourism
Telecommunic
ations
Information&
Broadcasting
 The share of the services sector is 60.7 per cent of the FDI equity
inflows during 2016-17
 In 2016-17, growth rate of FDI inflows reduced to 8.7 per cent (US$
43.5 billion) due to negative growth in trading, computer hardware
and software, construction and hotels and tourism
 To ensure that India remains an attractive investment, the
Government has brought about a number of reforms such as the
abolition of the Foreign Investment Promotion Board (FIPB) and the
introduction of composite caps in the FDI policy which permits 100
per cent FDI under automatic route for any financial sector activity
which is regulated by any financial sector regulator
FDI Equity Inflows to the Services Sector in 2016-17
(US$ million)

PERFORMANCE OF INDIA’S SERVICES SECTOR:
SOME INDICATORS
Sector Indicators Unit
Period
2009-10 2013-14 2014-15 2015-16 2016-17
IT- BPM
IT- BPM service revenues US$ billion 64 106 119 143 154
Exports US$ billion 50 87 98 108 116
Domestic US$ billion 14 19 21 35 38
Aviation
Airline Passengers (Total) Million 77.4 103.8 115.8 135.0 158.4
Domestic Million 45.3 60.7 70.1 85.2 103.7
International Million 32.1 43.1 45.7 49.8 54.7
Telecom
Telecom Connections
(wireline and wireless)
Million 621.3 933.0 996.1 1058.9 1194.6
Tourism
Foreign Tourist Arrivals Million 5.2 7.0 7.7 8.0 8.8
Foreign Exchange earnings from
tourism
US$ billion 11.1 18.4 20.2 21.1 22.9
Shipping
Gross tonnage of Indian shipping Million GT 9.7 10.5 10.5 10.5 12.0
No. of ships Numbers 998 1209 1210 1251 1338
Ports Port Traffic
Million
tonnes
850.0 972.5 1052.5 1072.5 1135.6

Banking and Financial
Services
Tourism and
Hospitality Services
Telecommunication
Services
Healthcare Services
IT and ITeS Services
Aviation Services
KEY PLAYERS
Source: Company websites, Aranca Research

 Players are trying to ensure convenience for their customers by providing all services available on a single
portal. For example, makemytrip.com and a host of other websites provide a comprehensive basket of
offerings which include outbound and inbound travel for leisure and business trips, hotels and car booking,
holiday packages within India or abroad, etc
 Players are opting for many channels to maximise sales and ensure convenience for their customers. For
example, Thomas Cook and Kuoni India launched their online portals to compete with others. On the other
hand, makemytrip.com is planning to go for the offline channel to complement its existing portal and has
already launched mobile apps for maximising sales.
 Indian LCC’S are looking forward to increase their ancillary services, without tampering their business
models. This includes services like lounge access, priority boarding, customer loyalty memberships and
customer meals
 In May 2017, financial services company JM Financial Ltd. voiced plans to extend its real estate lending
business and set up an affordable housing finance unit - JM Financial Home Loans Ltd. The company is
expected to secure the licence for the new unit from National Housing Bank (NHB) in a period of six months.
 In April 2017, IFFCO has invested 26 per cent stake in a start-up firm Gramin Health Care (GHC), an
affordable and easily accessible service for farmers to educate them about basic health
 General Atlantic Partners and TPG voiced intentions to bid jointly for acquiring the healthcare assets of Fortis
for US$ 1.80 billion
 As the Indian education industry opens up to new innovative ways of learning, Educomp has decided to
explore this opportunity by offering its various online and supplemental solutions to help institutions to
leverage the most of technology
STRATEGIES ADOPTED
Banking and Financial
Services
Healthcare Services
Education and Training
Services
Source: Company websites, Media sources, Aranca Research
Tourism and Hospitality
Services

Services
GROWTH DRIVERS
AND OPPORTUNITIES

INDIAN BANKING SECTOR DRIVING GROWTH IN THE
SERVICES SECTOR
325
403
501
611
714
842
958
1,094
1,246
1,380
1,499
1,669
1,669
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Source: Reserve Bank of India (RBI), Aranca Research;
Note: CAGR - Compounded Annual Growth Rate, *At US$ 1 = Rs 64.4273, 1FY 18 – For Q1 (April-June), 2CAGR is up to FY17
 During FY06–17, deposits grew at a CAGR of 16.04 per cent from
US$ 325 billion in FY06 to US$ 1,669 billion in FY17.
 Strong growth in savings amid rising disposable income levels are
the major factors influencing deposit growth.
 Access to banking system has also improved over the years due to
persistent government efforts to promote banking-technology and
promote expansion in unbanked and non-metropolitan regions.
 At the same time India’s banking sector has remained stable despite
global upheavals, thereby retaining public confidence over the years.
 Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY), have
also increased. As of 22 November, 2017, US$ 10,736.77 million
were deposited, while 306.7 million accounts were opened.
Visakhapatnam port traffic (million tonnes)Growth in deposits over the past few years (US$ billion)*
2CAGR 16.04%
1

AVIATION DRIVING GROWTH IN SERVICES WITH
INCREASING PASSENGER AND FREIGHT TRAFFIC
73
96
117
109
124
143
162
159
169
190
224
242
145
0
50
100
150
200
250
300
FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18
Source: Association of Private Airport Operator, Airports Authority of India
 Witnessing a growth of 8.23 per cent over the previous year, total
passenger traffic stood at a 242 million in FY17, which was recorded
at 224 million in FY16 in India.
 Growth in passenger traffic has been strong since the new
millennium, especially with rising incomes and low-cost aviation;
during FY06-17, passenger traffic grew at a CAGR of 11.46 per cent
in the country.
 Freight traffic on airports in India is expected to cross 11.4 million
tonnes by 2032.
 Growth in import and export in India will be the key driver for growth
in freight traffic as 30 per cent of total trade is undertaken via
airways.
 Airports across the globe are planning on increasing their spending
on new technology to keep up with surging passenger traffic, which
is expected to double to 370 million by 2020. The anticipated double
digit growth would make India as the world’s 3rd largest aviation
market by 2020.
 Fliers would soon be able to use biometric details for security checks
at airports after good feedback from a pilot project.
Notes: CAGR – Compound Annual Growth Rate, FY – Indian Financial Year (April – March), 1From April to September 2017
1.40
1.55
1.72
1.70
1.96
2.35
2.28
2.19
2.28
2.53
2.70
2.68
1.68
0
1
1
2
2
3
3
FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18
Passenger traffic in in India (million)
1
Freight traffic in India (million tonnes)
1

INCREASING EXPENDITURE ON TRAVEL AND
TOURISM IS A MAJOR DRIVER FOR THE SECTOR
22.1
24.4
18.8
22.3
25.5
26.4
20.8
17.8
19.1
19.1
10.3
42.1
46.2
48.7
60.9
69.3
68.7
77.9
90.2
96.0
96.2
181.7
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
E
Business Travel and Tourism Spending (in USD Bn)
Leisure Travel & Tourism Spending (in USD Bn)
Source: World Travel and Tourism Council, Make in India, Global Business Travel Association
 The travel and tourism sector forms a major part of the services
industry; thereby increasing expenditure for obtaining this service is
expected to drive growth in the overall services sector.
 The share of travel and tourism in India’s GDP was 9.6 per cent in
2017; and is expected to grow at a CAGR of 7.2 per cent per annum
between 2017E-2027
 Overall, leisure travel and tourism spending inclined at a CAGR of
15.74 per cent between 2007-17E.
 Emergence of business hubs like Mumbai (Finance), Bengaluru (IT),
Chennai (IT), Delhi (Manufacturing, IT) is likely to boost business
travel as well.
 Leisure travel spending grew to US$ 181.65 billion in 2017E from
US$ 96.20 billion in 2016.
Visakhapatnam port traffic (million tonnes)Travel and tourism spending (US$ billion)
Notes: IT – Information Technology, E – Estimated

STRONG GROWTH IN HEALTHCARE SERVICE
SECTOR
Source: Frost and Sullivan, LSI Financial Services, Deloitte, Aranca Research
45
51.7
59.5
68.4
72.8
81.3
104.0
110.0
160.0
280.0
0
50
100
150
200
250
300
2008 2009 2010 2011 2012 2014 2015 2016 2017F2020F
 Healthcare has become one of India's largest sectors both in terms
of revenue and employment. The industry is growing at a
tremendous pace owing to its strengthening coverage, services and
increasing expenditure by public as well private players
 During 2008-20, the market is expected to record a CAGR of 16.5
per cent
 The total industry size is expected to touch US$ 160 billion by 2017
and US$ 280 billion by 2020
 The Ministry of Health is focusing on development of technologies for
the treatment of diseases like Cancer and TB.
 Government is emphasising on the eHealth initiatives such as
Mother and Child Tracking System (MCTS) and Facilitation Centre
(MCTFC)
 Indian companies are entering into merger and acquisitions with
domestic and foreign companies to drive growth and gain new
markets.
Visakhapatnam port traffic (million tonnes)Healthcare Sector Growth Trend (US$ Billion)
CAGR: 16.5%
Note: F - Forecast

EXPANDING TELECOM SUBSCRIBER BASE
205.86
300.49
429.72
621.28
846.32
951.34
898.02
846.32
996
1058.86
1194.58
1206.71
18.3
26.2
37
52.7
70.9
78.7
74.02
77.5879.38
83.36
92.98
93.4
0
10
20
30
40
50
60
70
80
90
100
0
200
400
600
800
1,000
1,200
1,400
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Telephone Subscriber (in million) Teledensity
Source: Telecom Regulatory Authority of India, Aranca Research
Note: CAGR - Compound Annual Growth Rate, 1As of September 2017
 India is currently the second largest telecommunication market and
has the 3rd highest number of internet users in the world
 India’s telephone subscriber base expanded at a CAGR of 19.22 per
cent, reaching 1194.58 million during FY07–17
 Tele-density (defined as the number of telephone connections for
every 100 individuals) in India, increased from 17.9 in FY07 to 93.4
as of September 2017.
Visakhapatnam port traffic (million tonnes)Growth in total subscribers
1

GROWING IT and IT-ENABLED SERVICES SECTOR
Source: NASSCOM, Aranca Research
24
29 32 32 32
48
35 38
50
59
69
76
86
98.5
108
116
0
20
40
60
80
100
120
140
160
180
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Domestic Export
 IT and ITeS sector is the major driver of India’s service sector.
 IT BPM industry revenues increased to US$ 154 billion in FY17 from
US$ 143 billion in FY16.
 The contribution of the IT sector to India’s GDP stood at 7.7 per cent
in 2016.
 TCS is the market leader, accounting for about 10.4 per cent of
India’s total IT & ITeS sector revenue in FY16
 The top 5 IT firms contribute over 25 per cent to the total industry
revenue INR 8.4 lakh crore (US$ 131.11 billion) as of 2017,
indicating the market is fairly competitive.
 The domestic revenue of the IT industry is estimated at US$ 38
billion and export revenue is estimated at US$ 117 billion in FY 17.
Visakhapatnam port traffic (million tonnes)Market size of IT industry in India (US$ billion)
Note: E – estimate, IT – Information Technology

GOVERNMENT POLICIES AND INITIATIVES
 SEIS is aimed at promoting export of services from India by providing duty scrip credit for eligible exports.
 Under this scheme, a reward of 3 to 5 per cent of net foreign exchange earned is given for Mode 1 and Mode
2 services.
Services Exports from
India Scheme (SEIS)
Source : Economic Survey 2017, Media sources
 Formulation of National Tourism Policy 2015 that would encourage the citizens of India to explore their own
country as well as position the country as a ‘Must See’ destination for global travellers
 Under Union Budget 2017, US$ 14.87 million was allocated for promotion and publicity of various
programmes and schemes of the Tourism Ministry.
National Tourism Policy
2015
 The new 2016 National Education Policy (NEP) considers education as an utmost important parameter in the
country. The 2016 NEP majorly focuses on quality of education as well as innovation and research in the
sector.
National Education
Policy, 2016
 The Union Cabinet, Government of India, has approved the National Health Policy 2017, which will provide
the policy framework for achieving universal health coverage and delivering quality health care services to all
at an affordable cost.
National Health Policy
2017
 Aims at a ‘One Nation-One license’ regime with no roaming charges and nation wide number portability
 ‘Broadband for all’ with a minimum download speed of 2Mbps
 Liberalisation of spectrum and convergence of network, services and devices
 Unified licensing, delinking of spectrum from license, online real-time submission and processing
National Telecom Policy
2012

GOVERNMENT POLICIES AND INITIATIVES
 100 per cent FDI is allowed under automatic route in scheduled air transport service, regional air transport
service and domestic scheduled passenger airline. FDI over 49 per cent would require government approval.
 Approval of 49 per cent FDI in aviation for foreign carriers.
 100 per cent FDI is allowed under the automatic route in tourism and hospitality, subject to applicable
regulations and laws.
 The Government of India allowed 100 per cent FDI in the education sector through the automatic route since
2002.
 For the healthcare sector, 100 per cent FDI is allowed under the automatic route for greenfield projects and for
brownfield project investments, up to 100 per cent FDI is permitted under the government route.
 FDI cap in the telecom sector has been increased to 100 per cent from 74 per cent; out of 100 per cent, 49 per
cent will be done through automatic route and the rest will be done through the FIPB approval route.
 Government has allowed 100 per cent FDI in the railway sector for approved list of projects.
 FDI limit for insurance companies has been raised from 26 per cent to 49 per cent.
FDI Policy
Source : Economic Survey 2017, Media sources
 The GST rates are nil for education and healthcare services; 5 per cent for air transport of passengers in
economy class, transport of goods by rail and vessel, supply of tour operator services (without ITC); 12 per cent
for food and drinks at restaurants without air conditioner, heating system or license to serve liquor, while it is 18
per cent for those having them; 12 per cent for accommodation in hotels, inns, etc for rooms with tariff between
INR 1000-2500, while it is 18 per cent for those between INR 2500-7500; 12 per cent for air transport of
passengers in other thane economy class; 28 per cent for entertainment events, cinematograph films, theme
parks, water parks, etc, hotels and inns with room tariff above INR 7,500.
Goods and Services
Tax (GST)

HDFC BANK
486.6
621.8
860.7
1,102.2
1,238.5
1,406.5
1,775.1
1,878.4
2,255.3
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
 HDFC Bank
• Established in 1994, HDFC Bank is the 2nd largest private sector
bank in India. HDFC was amongst the 1st to receive an 'in
principle' approval from the RBI to set up a bank in the private
sector
• Divisions – Retail banking, Wholesale banking and Treasury
operations
• Size – Number of branches and extensions (FY17): 4,715
• Number of ATMs: (FY17) 12,260
• Number of Employees (FY17): 84,325
• Total Assets (FY17): US$ 133.89. billion
 Recognition:
• In 2017, HDFC bank received ‘India’s Best Bank’ award by
Euromoney Awards for Excellence 2017.
• In 2017, HDFC bank was awarded the ‘Best Domestic Bank in
India’ award by Asiamoney India Banking Awards 2017.
• In 2016, HDFC bank was awarded “ India’s Most Valuable Brand”
for the third consecutive year.
• In 2016, HDFC received “Bank of the Year” award by Outlook
Money.
Visakhapatnam port traffic (million tonnes)Net profit US$ (millions)
CAGR 21.13%
Source: Annual report, company website

PRIVATE SECTOR PIONEERS: IHCL
459.90
550.94
595.46
647.47
672.90
738.67
638.06
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
FY11 FY12 FY13 FY14 FY15 FY16 FY17
Source: IHCL’s website
 The company was incorporated in 1902 and launched the first hotel
in India, The Taj Mahal Palace and Tower, in Mumbai in 1903
 Taj Hotels Resorts and Palaces has 66 hotels in 42 locations across
India and 16 hotels worldwide
 IHCL operates in the luxury, premium, mid-market and value market
segments through various brands such as Taj, Taj Exotica, Taj
Safari, Vivanta, Gateway Hotel and Ginger
 IHCL operates Taj Air, a luxury private jet service
 The company operates Taj Sats Air Catering Ltd, the largest airline
catering service in South Asia
 IHCL’s revenues stood at US$ 638.06 million in FY17.
Visakhapatnam port traffic (million tonnes)Revenues (US$ million)

TCS: AN EMERGING GLOBAL IT MAMMOTH
Achievements:
 2017: Pega 2017 wins Partner Excellence Award
 2016: Won 3 Silver Stevies at 14th Annual American Business
Awards
 2015: Gold, Silver and Bronze Stevie® Winner at the American
Business Awards
 2014: Gold and Silver Stevie® Winner at the American Business
Awards
 2013: Won Best Performing Consultancy Brand Award in Europe
 2013: Received Red Hat North America Awards for System
Integrator Partner of the Year
38.0%
17.6%
16.1%
11.7%
9.0%
4.9%2.9%
Application development and
maintenance (ADM)
Enterprise solutions (ES) and
consulting
Infrastructure services (IS)
Business process and
services (BPS)
Assurance services
Engineering and industrial
services (EIS)
Asset leveraged solutions
Segment-wise revenue breakdown (FY17)
Financial performance (US$ Billion)
6.0
6.3
8.2
10.0
12.0
13.0
15.0
16.6
18.3
1.4
1.7
2.3
2.8
3.1
3.9
4.1
4.4
4.72
0.0
5.0
10.0
15.0
20.0
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Revenue Operating Profit
Source: TCS Website, Annual Report
 Established in 1968, Tata Consultancy Services (TCS) is an
Information Technology (IT) services, consulting and business
solution company. The company provides end-to-end technology and
technology-related services to global enterprises. The company’s
business is spread across the Americas, Europe, Asia-Pacific and
Middle East and Africa (MEA).
 TCS accounts for nearly half of the Indian IT industry’s combined
market capitalisation
 In April 2017, TCS has approved a buyback plan for US$2.38 billion.
The shares represent 2.85 per cent in the buyback of the total equity
capital at US$42.39 per share.
CAGR 21.6 %

Services
INDUSTRY
ASSOCIATIONS

KEY INDUSTRY ASSOCIATIONS
Indian Banks' Association
Address: Aurobindo Marg, Opp. Safdarjung Airport,
New Delhi –110 003
Phone: 91 11 24622495
Fax: 91 11 24629221
E-mail: dri@dgca.nic.in, dfa@dgca.nic.in
World Trade Centre, 6th Floor
Centre 1 Building,
World Trade Centre Complex,
Cuff Parade, Mumbai - 400 005, India
E-mail: webmaster@iba.org.in
Directorate General of Civil Aviation (DGCA)
Hotel Association of India (HAI)
Address: B-601, Gauri Sadan 5, Hailey Road, New Delhi – 110 001,
India
Tel: 91 11 23358585
Fax: 91 11 23327397
Website: http://www.auspi.in/
Address: B 212–214
Som Dutt Chamber-I,
Bhikaji Cama Place,
New Delhi – 110 066
Phone: 91-11-2617 1110/14
Fax: 91-11-2617 1115
Association of Unified Telecom Service Providers of India
(AUSPI)
National Association of Software and Services Companies
(NASSCOM)
Address: International Youth Centre Teen Murti Marg, Chanakyapuri,
New Delhi – 110 021
Phone: 91 11 2301 0199
Fax: 91 11 2301 5452
E-mail: info@nasscom.in.
Services Export Promotion Council (SEPC)
Address: 3rd Floor, 6A/6, NCHF Building, Siri Fort Institutional Area,
August Kranti Marg
New Delhi-110049
Phone: +91 11-41046327-28-29, +91 11-41734632
E-mail: services.epc@gmail.com
Website: www.servicesepc.org

GLOSSARY
 CAGR: Compound Annual Growth Rate
 FDI: Foreign Direct Investment
 FY: Indian Financial Year (April to March)
 GOI: Government of India
 INR: Indian Rupee
 US$: US Dollar
 Wherever applicable, numbers have been rounded off to the nearest whole number

EXCHANGE RATES
Year INR Equivalent of one US$
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-17 67.09
Q1 2017-18 64,46
Q2 2017-18 54.29
Year INR Equivalent of one US$
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 67.22
H1 2017 65.73
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Source: Reserve bank of India, Average for the year

DISCLAIMER
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation
with IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
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of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.
Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any
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Services Energy Sector Report November 2017

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