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India Today
Prof. Atul TandanDirector, MICA
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Population
Ownership & Consumption
Media Industry
Entertainment Industry
Know India
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Population
2.5% of the worlds land mass
16% of the worlds population
Every sixth person in the world is an Indian and
every fourth person in Asia is an Indian
India adds an Australia to its population every year
Population projection for 2011
For under 15 years: 370 million For 15-64 years: 747 million
For 65+ years: 58 million
15% in the age group of 0-6 years
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Population
Male and female literacy of 75.85% and 54.16%
respectively
Male and female life expectancies of 62.3 years and
65.3 years respectively Overall literacy rate 65%
Current middle class of around 600 million people
Nearly 40% of the population (402 million) are in the
working age Indians urban working population is as much as the
total working population of France and Italy
Thus India represents a young country full of opportunities
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Ownership & Consumption
A market that grows by 30 million consumers
every year
75 million Indian families own a television
35 million households own two wheelers
Second largest producer of two wheelers, market
size valued at $1200 million
Every second urban house hold has a bank
account
Consumer finance market grown to $20 billion
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Indian Readers have a choice of 30000 odd
magazines and newspapers
Tele-density (cellular and fixed) 11 and growingat an annual rate of 40% against the world
average of 15%
75 million cellular subscribers and still growing at
a rate of 35% per annum
5 personal computers for every 1000 people
Largest producer of Cigarettes
Ownership & Consumption
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Rural Wallet
26.5, 26%
4, 4%
8, 8%
6, 6%
3, 3%
5, 5%
6, 6%3, 3%
13, 13%
2, 2%
1, 1%
6, 6%
5, 5%
0.5, 1%
7, 7%4, 4% Groceries
Personal care
Medicines/Healthcare
Fuel
Entertainment/Music
Savings/Investment
Interest repayment
Jewellery
Agricultural inputs
Household maintainence
Home textiles
VehicleConsumer durables
Home appliances
Apparel/Footware
Hard liquor/Tobacco
A fourth of the expense is on Groceries
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Media Industry
Cable Television industry $1.2 billion currently in revenue terms
Growing at approximately 15-20% p.a.
Likely to be $3 billion by year 2010
Share of print media in ad expenditure Globally: 45%
India: 55%
Ad. Expenditure to GDP ratio expected to increase to
0.65%, comparable to other developing andemerging countries like Brazil, Indonesia andThailand.
Television software industry likely to be $3 billion by
2008
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Projected size of entertainment
industry: $11 billion by 2010
Exports market size of $700
million; exhibiting a stronggrowth
Film market
Expected to grow at 25% p.a.
in the next three years
Projected size of $4 billion
Music industry will be $500
million in size by 2010
Entertainment Industry
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Entertainment Industry
Radio (which receives only 2% of total
advertising)
Expected to grow to the international
average of 30% by 2010 Size of market in revenue terms projected to
be around $200 million
Live entertainment and event management
industry
Growing at a rate of 50% p.a.
Expected to be $300 million by 2010
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India: A Statistical View
Macro Economic Indicators
Engines of Economic Growth
Major Market Trends
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Indicators 1980s 1990s 2005-06 Likely 2010
Read GDP (% change) 5.8 6.2 7 10
Share of Agriculture in GDP 38 31 22 20
Food grain production (Mn tonnes) 146 195 212 220
Share of Industry in GDP (%) 26 29 26 25
Share of Services sector in GDP (%) 36 40 52 55
Per Capita Income (US$) 230 395 550 790
Savings rate(% of GDP) 19.4 23.2 30 35
Investment rate(% of GDP) 21.2 24.5 30 35
Exports (In $ Bn) 9.5 27 47 100
Growth in exports 8.1 9.7 30 50
Selected Macro Economic andFinancial Indicators 1980 2010
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Macro Economic Indicators
Current growth in Real GDP around
7% and expected to grow by 8% by
2007, double digit by 2010
Industry growth of 12%
Service sector constitutes nearly
52% of GDP
Average Annual Growth potential of
service sector in providing
employment is 11% oftotal labor
force
Rate of Investment is 30% of GDP
Rate of Savings is 30% of GDP
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Lowest ever bank rate of 6%
Low rate of inflation of 4% offers higher return on
investment
Relatively stable exchange rate
Relatively stable stock market offering high return
to most Foreign Institutional Investors in the long-
run
Foreign Direct Investment of around $45 billion
constituting 1% of GDP
Foreign exchange reserve in excess of $160 billion
Macro Economic Indicators
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Low growth of 5% in consumer price index offers wide range
of choice for purchasing
Per capita income
Currently PPP $ 3300
Growing at nearly 6% p.a.
Instability - lowest as compared to most Asian economies
Total External Commercial Borrowing approvals during 2005-
06 - $40billion
Growth of exports 30% and 12% of GDP
Growth of imports 48% and 18% of GDP
Macro Economic Indicators
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Macro Economic Indicators
FDI Inflows August 91 Jan 06Top 10 Sectors
Cement & Gypsum
3%
Metallurgical 3%
Drugs & Pharma 4%
Food Processing 5%
Chemicals 10%
Telecom 13%
Services 13%
Transportation 14%
Electrical Equipments
22%
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Engines of Economic Growth
A thoroughly professional PM
Increased presence in geo-politics
Rapidly rising education levels
Accelerating rates of technological innovation and
application
Cheaper and faster communication dissolving physical and
social barriers, both within the country and internationally
Information made available in greater quantity and quality
than ever before
Opening up of new markets because of globalization
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Segmentation of Household(in mln)
Consumer Group Annual Income (Rs.) 1994-95 2006-07
Very Rich > 1250001 1 6.8
Consuming Class 45000-215000 28.6 90.9
Climbers 22000-45000 48 74.1
Aspirants 16000-22000 48 15.3
Destitute
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New Consumer Shifts
From functional to convenience goods
From unbranded to branded products
From need-based buying to joy buying
From physical products to concept selling From low price to high-end products
Spending leisure time on whatever is
available in high fashioned entertainment Increasing consumer awareness on products
and product value
Leap-frogging sunrise areas
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Telecommunication
8th largest network in the world & 3rd largest
among the emerging economies (after China
and Korea)
250 million line basic telephone network
75 million cellular mobile network
Average annual growth rate
30% for basic services
More than 100% for cellular and internet
services
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Telecommunication
Projections for number of connections
175 million connection by 2008
Investment opportunity of
Approximately $80 billion by 2008
$120 billion by 2010
Move towards Value Added Services
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Entertainment Industry
Milestones and Achievements
From two state run channel in 1990 to close to
340 channels currently 54 million cable and satellite homes which
translates to 270 million viewers
More than 1000 movies produced in a year
Granted an Industry status
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Entertainment industry
Requirement of at least 20000 screens in
India as against 12548 currently
1500 new multiplexes screens expected
to be set up in the next 2-3 years 100% FDI in the film industry permitted
Industry raised $40 billion from capital
market during the year 2005
Accounts for 20% of worldwide $40 billionanimation business due to inherent
advantages like IT skills and cost
competitiveness
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Banking Insurance and FinancialMarkets
290 commercial banks including 40 odd foreign banks
Over 70000 branches throughout the country
Roughly 40 million shareholders
India has the third largest investor base in the world next toUSA and Japan
Assets under management with the Indian Mutual Fund
Industry in excess of $70 billion
Cumulative net investment by FIIs in Indian securities morethan $30 billion
Size of Life Insurance Business $350 billion
Size of Non life insurance $175 billion
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Electronics and InformationTechnology
Software sector growing at a rate of 58% p.a.
Software exports expected to grow to $100 billion by 2010.
Around 200 out of the Fortune 500 companies outsource
their software requirements to Indian software companies
Expected to generate revenue to the tune of $130 billion by
2010
IT enabled services sector will generate $25 billion by 2010
Leading companies like GE, American Express, HSBC Royal
and Sun Alliance, Le Meridian have set up their call centres
in India
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Brands in India
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Brands in India
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Brands in India
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Indias Largest Brands
Rank Brand Company
6 LIC LIC : India7 VICKS P & G : International8 Britannia Dannon:International9 Rin HLL: Unilever10 Bata Bata : India
http://www.bataindia.com/http://images.google.co.in/imgres?imgurl=http://www.indiaabundance.com/productimages/Vicks%2520vaporab_s.JPG&imgrefurl=http://www.indiaabundance.com/frontend/category/oils_and_balms_ah_ob.asp&h=240&w=240&sz=11&tbnid=95FFG9ottW7eyM:&tbnh=104&tbnw=104&hl=en&start=11&prev=/images%3Fq%3DVICKS%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DGhttp://images.google.co.in/imgres?imgurl=http://members.tripod.com/lic_india/index.2.jpg&imgrefurl=http://members.tripod.com/lic_india/&h=276&w=200&sz=14&tbnid=YlrT3t5vlpv6cM:&tbnh=109&tbnw=78&hl=en&start=1&prev=/images%3Fq%3DLIC,%2BIndia%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DG7/30/2019 Session3 India Today
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Indian Retail Industry
Type 2001 ($ Mn) 2007* ($ Mn)
Large 1770 4621.8
Others 1210 2433.8Non Store 220 387.8
Total Organized Retail 3200 7443.4* Projected Figures
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Fashion and Lifestyle
Apparel 2005 ($ Mn) 2013* ($Mn)
Branded 800 6000
Designer 36.6 2000* Projected Figures
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Some Examples..
Moser-Baer: World's third largestoptical media manufacturer & the
lowest-cost CD-Recorder producer Hero Honda: Largest motorcycle
manufacturer in the world.
Component Suppliers to 15 leadingautomobile giants
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Even Automobiles
Rover is marketing 0.5 mln. Indica cars ofTata in Europe
Aston Martin contracted prototyping latest
luxury sports car to an Indian-baseddesigner.
Suzuki & Hyundai India set to make Indiaglobal small car hub
Ford presented Gold World ExcellenceAward to India's Cooper Tyres.
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Success is Infectious
World Largest:
Bharat Forge - single-location forgingfacility
Hindustan Inks - single stream fullyintegrated ink plant
Essel Propack - laminated tube
manufacturer
And many more..
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India Everywhere!!