The document discusses opportunities for small and medium businesses (SMBs) in India. It notes that India is home to over 4.88 crore SMB units, representing over 50% of Microsoft's business in India. A NASSCOM survey found that over 80% of SMBs expect revenue growth of 5-30% over the next 2-3 years and over 80% believe in training to adopt new software. The document also discusses the growing internet and smartphone usage in India, representing opportunities for SMBs to reach more customers online. It provides recommendations for technology companies to focus on tier 1, 2, and 3 cities by developing strong channel partnerships and raising awareness of solutions.

1. I N D I A
The land of endless
opportunities
Duleep Sahadevan
Co-founder / Director - Software Associates Information Technologies P.Ltd

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. 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. 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. 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. 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. 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. 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. NASSCOM AWSME survey

10. NASSCOM AWSME survey

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. 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. 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. 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. 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. 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. 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. THANK YOU
SLOW DOWN
==
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