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FASTEST GROWING
FREE MARKET DEMOCRACYIN A GLOBAL ECONOMY
INDIA
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Presentation
Kushal Chaturvedi
Prerna Khare
Ashish Katiyar
Ritesh Chauhan
Ashwini Goyal
Anshul Gupta
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THE INDIA STORY
INDIAN SUCCESS STORIES
INTERNATIONAL SUCCESS STORIES
INDIA ADVANTAGE
BUSINESS OPPORTUNITIES
WINNING ATTITUDE
CONTENTS
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THE INDIA STORY
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1947 : Year of Indian Independence
Todays India is one of the fastest growing Democratic Market Economy,well on its way to be integrated with the world economy
The famous Goldman Sachs report ( Dreaming with BRICs: The Path to2050 ) states that, among Brazil, Russia, India and China, India will grow
the fastest over the next 30 to 50 years by leveraging its demographicadvantages and through continued development
Indias GDP will exceed Italys in 2016, Frances in 2019, Germanys in 2023and Japans in 2032
INDIA TO BECOME THE 3RD LARGEST ECONOMY IN THE WORLD BY 2032
ANDTHE STORY BEGAN IN 1947
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Planned Industrial Development
Industry Licensing and Quotas
Dominance of Public Sector
Restriction on Private Investment
Socialism
Mixed Economy
India Pre - Liberalization
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MRTP Liberalization
Abolition of threshold assets limit
No MRTP clearance needed forexpansions, mergers
Curtailment of PublicSector
Several industries hitherto reservedfor public sector opened up to privatesector
Only eight core industries remainreserved for the public sector
Purview of Board for Industrial andFinancial Reconstruction (BIFR) extended toPublic sector
The New Industrial Policy for liberalization - 1991
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Governments role changed to Regulator from Licensor
All Licenses Rationalized
Active participation of private sector
FDI being Welcomed (100%) - Automatic Route
Barriers Dismantled & Procedures Simplified
Indian Industries Actively Investing Abroad
Bureaucracy - Less Government is Good Governance
Allowing Market Forces to Govern the Efficient Allocation ofResources with Minimum State Intervention
Reducing and rationalising foreign trade barriers
India Liberalization Stage - Strategies Developed
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India - One of the fastest growing economies in the world
Average GDP growth (1995 -2005) : 6.2 % per annum
Average annual growth (1995 - 2005)
Agriculture & Allied : + 2.1 % per annum
Industry : + 6.6 % per annum
Services : + 7.8 % per annum
Average Per Capita Income growth (1995 - 2005): 3.8 % per annum
Inflation down to a single digit level continuously for the last ten years
Foreign exchange reserves increased from US $ 2 b (March 1991)
to US $ 145 b (September 2005)
Merchandise Exports : +20 % average rate of growth in last three years
Booming Services Exports from US $ 4.6 b in 1990-91 to US $ 51.3 b in2004-05
Economic Scenario : Post Liberalisation
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Balance of Payments surplus (US $ 26 b in 2004 - 05)
External Debt Service Ratio down from 26.2 % in 1995 to 6.2 % in 2005
Foreign Direct Investment (FDI) : Average +US $ 5 b pa in the lastfive years.
Foreign Portfolio Investment : US $ 11.4 b in 2003-04 and
US $ 8.9 b in 2004-05
Reforms continuing and have unleashed dynamic forces putting the economy on a trajectory of unparalleled economicgrowth in the future
The Indian Government is working in close co-operation withindustry and trade to mitigate the remaining problems andconstraints
Broad consensus across the political spectrum on the need forand direction of the reforms. Some issues still need to be resolved
Economic Scenario : Post Liberalization
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28.0
23.8 20.5
27.2
40.6 43.948.9
52.4
32.2 28.127.2 27.1
0
10
2030
40
50
60
1990-91 1995-96 2000-01 2004-05
Agriculture Industry Services
Share Of Services Sector In GDP On The Rise (%)
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India
the worlds most irrigated land mass
worlds 2nd largest exporter of rice & 5th largest exporter of wheat
Food production: Indias Ranking in the World
1st Tea, Milk
2nd Rice, wheat, sugar
Agriculture
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Rate of growth
2003-04 7 %
2004-05 9.2 %
Diversified base of world class capabilities
State-of-the-art technologies
TQM,TPM, Six Sigma & Lean Manufacturing - part of
everyday practice
Diversified industrial base with supporting ancillary industries
Overseas acquisitions worth US$ 500 m
Manufacturing
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Consistent growth
2003-04 9.1 %
2004-05 8.9 % Sectors Driving Growth
- ITES
- Healthcare
- Financial Services
- Education
Source:Economic survey, 2004 - 05
Services
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Average GDP Growth (1990-2001)
9.4
6.2
5.5 4.9 4.7
3.32.9 2.9
2.0
1.5
2.5
3.5
4.5
5.56.5
7.5
8.5
9.5
China
S.Korea
India
Thailand
Indonesia
Mexico
Philippines
USA
Brazil
Growth(%)
Source: WDI, World Bank, 2003
Average GDP growth - India & the World
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Share of external trade in GDP
18.123.1 25.5
26.930.3 28.9 31.6 32
0
10
20
30
40
1991-92 1994-95 1997-98 1999-
2000
2000-01 2001-02 2002-03 2003-04
Rising share of Indias external trade in GDP
Target :To double share of exports from 0.7 % to 1.5 % of world trade
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Land Area: 3.29 m sq. km.
Population: 1.09 b
GDP: US $ 630 b
Real GDP Growth: 6.9 %
Gross Domestic Savings: 28.1 % (2003 - 04)
Gross Domestic Investment: 26.3% (2003 - 04)
Per Capita Income: US $ 580
Inflation Rate: 6.4 %
Macro Economic Indicators (2004 - 05)
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Exchange Rate: US $ 1 = 43.75
Merchandise Exports: US $ 80b
Merchandise Imports: US $ 106b
Services Exports: US $ 51b
Foreign Direct Investment: US $ 5.5b
Foreign Portfolio Investment: US $ 8.9b
Direct Investment Abroad: US $ 1.5b
Macro Economic Indicators (2004-05)
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INDIAN SUCCESS STORIES
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Number of foreign firms acquired 120by Indian companies during2001 - 03
Total worth US $ 1.6 b
India - 8th largest investor in the UK
No of investments 440
No of Indian companies with 1,441operations in Singapore
Indian MNCs - On a global buying spree
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Hero Honda - Largest producer of motorbikes in the world
Moser Baer - Worlds 3rd largest producer of optical media
Hero Cycles - Worlds largest bicycle producer
Bharat Forge - Amongst the worlds top 3 forgings manufacturers
UB Group - Worlds 2nd largest producer of alcoholic beverages
Paharpur Cooling Towers - Worlds 2
nd
largest manufacturer of
Cooling Towers
India Leading The World
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India Leading The World
Apollo Hospitals - Single largest hospital chain in South Asia
TISCO - worlds cheapest producer of steel
Reliance Industries - Worlds largest producer of PTA, a chemical
used in textile production
Mahindra & Mahindra - Amongst top 3 tractor manufacturers in the
world
Telco - Amongst top 3 truck manufacturers in the world
Welspun - Worlds largest producer of terry-towels
Gujarat Ambuja - Amongst top 5 cement producers in the world
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Some Indian Examples Benchmarked with theBest In The World
http://www.drreddys.com/index.htmhttp://www.wipro.com/index.htm8/14/2019 Global Economy1
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Success Story of RELIANCE
The Reliance Group founded in 1932, is India's largest business house with
total revenues of over US $ 22.6 b and exports of US $ 3.6 b
It began as a an SME
The Group's activities span exploration and production of oil and gas,refining and marketing, petrochemicals, textiles, financial services, insurance,
power, telecom and infocom initiatives
The Group exports its products to more than 100 countries the world over
Reliance Group revenue is equivalent to about 3.5 % of India's GDP
The Group contributes nearly 10 % of the country's indirect tax revenues andover 6% of India's exports
Today, the Reliance Group has one of the largest family of shareholders in theworld
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Success Story of WIPRO
Wipro was set up in the backdrop of the small town of Amalner inMaharashtra in 1945
An SME and primarily an oil factory, the chief products wereSunflower Vanaspati and 787 laundry soap
It was in the early eighties that Wipro made its foray into the Infotecharena
With this began the Wipro Infotech story
Today, Wipro stands at the firmament, as a trusted and experiencedprovider of a comprehensive range of IT services, solutions andproducts, worldwide
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Success Story of BHARTI
Bharti Enterprises has successfully focused its strategy on telecomwhile straddling diverse fields of business
It all began as a Small Industry
Bharti Tele-Ventures is today acknowledged as one of India's finestcompanies, and its flagship brand 'Airtel', has over 12 million customersacross India
Recently, Bharti has successfully launched an international venture with
EL Rothschild Group owned ELRO Holdings India Ltd., to export freshAgri- products exclusively to markets in Europe and USA
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Success Story of DR.REDDYS
Dr.Reddys Laboratories was founded in 1984, with a capital of US $40,000 in cash and
US $120,000 in bank loan
In fact, it is this spirit of entrepreneurship that has shaped the company to becomewhat it is today
Today, the company with revenues of US $446 m, in fiscal year 2005, is Indias secondlargest pharmaceutical company and the youngest among its peer group
Dr. Reddys started its drug discovery programme in 1993 and within three years itachieved its first breakthrough by out licensing an anti-diabetes molecule to NovoNordisk in March 1997
With this very small but significant step, the Indian industry went through a paradigm
shift in its image from being known as just copycats to innovators!
Through its success, Dr. Reddys pioneered drug discovery in IndiaToday, the company manufactures and markets API (Bulk Actives), Finished Dosagesand Biologics in over 100 countries worldwide, in addition to having a very promisingDrug Discovery Pipeline
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Success Story of BIOCON
Biocon is India's leading biotechnology enterprise
Over the past 25 years, they have evolved from an small enzyme manufacturingcompany to a fully integrated biopharmaceutical enterprise, focused on healthcare
At Biocon, success has been their ability to develop innovative technologies andproducts and to rapidly leverage them to adjacent domains
This unique "integrated innovation" approach has yielded a host of patentedproducts and technologies that have enabled multi-level relationships with theirglobal clientele
As India's first and leading biotechnology company, Biocon extends its support tonumerous community outreach and corporate citizenship initiatives with specialconcentration in the areas of healthcare, education and environment
The Biocon Foundation, set up in 2004 has recently launched Arogya RakshaYojana, a unique health initiative for rural India
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Success Story of Paharpur Cooling Towers
In its over four decades of existence, Paharpur has come to be acknowledged as thepioneer in the Indian cooling tower industry
It all began as a small industry with a capital of US $ 11,000
At today's selling prices, Paharpur has sold cooling towers valued at over US$ 1 b
If these cooling towers were all working together, they would be able to cool more than 265million liters of water every minute or 382 b liters in 24 hours
The Paharpur team consists of highly qualified engineers & professionals with over 1,000man years of experience in the field of cooling tower application engineering, designing,
erection and trouble shooting
Paharpur has pioneered several improvements in cooling tower design and operation andhas emerged as one of the largest cooling tower manufacturers in the world, with exports tomore than 40 countries
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Success Story of Paharpur Business Centre &Software Technology Incubator Park
Began operations in 1990 in New Delhi, with an equity capital of Less thanUS $ 15,000
Current net worth of US $ 10 m
Provides a suite of 28 services, employing 450 persons
Has Fortune 500 companies, MNC's and corporate, as clients
Has five international certifications, ISO 9001, ISO 14001, SA 8000, OHSAS18001 and HACCP
Commitment to UN Global Compact
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Publishes its annual Sustainability Report following the GRI system
Reports its triple bottom line - relating to profit, environment andsustainability
Now providing technical support to setting up of a 1.7 m ft2 Software Parknear Delhi that has been given the SEZ status by the GOI The Haryana Technology Park
Company showcased by CII at the World Summit on Sustainable
Development in Johannesburg in 2002 for its sustainability initiatives
Its USP is the Clean Indoor Air in its Center in Delhi - Certified MountainQuality Air using biotechnology developed by NASA, USA to clean air
Success Story of Paharpur Business Centre &Software Technology Incubator Park
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INTERNATIONAL SUCCESS STORIES
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1,858
1,1051,054
965
548393
263172
36 22 17 8 7
0
200
400
600
800
1,000
1,200
1,400
1,6001,800
2,000
1
Japan
India
South Korea
Singapore
Australia
China
Hong Kong
Taiwan
Malaysia
Sri Lanka
New Zealand
Philippines
India attracts second highest privateequity investment in Asia
Total equity flow to India between 1999 and 2004 doubled
from US $ 5.12 b to US $ 11.50 b
Preferred Destination For Foreign Equity Investors
Source: NASSCOM
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MNCs leveraging the India Advantage
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FDI INFLOWS TO INDIA
4029
6125
50364674
5526
0
1000
2000
3000
4000
5000
6000
7000
2000-01 2001-02 2002-03 2003-04 2004-05
FDI Inflows ($ million)
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More than 100 global companies outsource R&D facilities from India
GE John F Welch Technology Centre Companys largest research outfit outside the USA
GE Medical Systems India as sole sourcing base for its portable ultrasound scanner
Monsanto First non-US research facility
Eli Lilly largest research facility in Asia and 3rd largest in the world
Texas Instruments Digital Signal Processor developed in India controls 50% of the worldmarket
AVL, Austria India as base to do R&D for the companys Japan centre
International Brands Utilizing The IndianKnowledge Base
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BeiersdorfProblems at beginning:
Existence of rival company (Nivea) in the market (personalhygiene market)
Reason for success: Relative name recognition Adaptable Indian staff Suppliers who are willing to cooperate Immense support in form of technology and know-how transfer
from side of Germans
Great market potential
What is important for business-collaboration with India?
Patience and endurance Local manager who knows mother company
Collection of experience through business connections
Case Study of Selected Companies in India
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Daimler Benz
Decentralized research was quite essential Achievement of local representation to assess market
specified interests
Why India?
Great resources of highly qualified scientists as staff Availability of human capital with low labor costs
Internationality:English language and understanding of European culture(due to British history, existence of numerous institutions,administrations, school etc)
Economic Policy
Case Study of Selected Companies in India
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Quite simply, I was blown away by what I
saw on my first trip to India
Stephen Roach, Managing Director &
Global Chief Economist, Morgan
Stanley 2004
India's highly educated workforce,management talent, rule of law,
transparency, cultural affinity and regulator
environment are more favorable than
China's.
A T Kearney, FDI Index 2004
"We want to bring to the world various
facets of this extraordinary country, its
people and progress"
Chris Cramer, International Managing
Director, CNN2004
"India has the potential to deliver the fastestgrowth over the next 50 years with an
average rate of more than 5 per cent a
year for the entire period
Dominic Wilson, Senior Global
Economist and Vice President,Goldman Sachs 2005
India A Preferred Destination
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INDIA ADVANTAGE
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Trained manpowerand knowledge base
Rich biodiversity
Extensive clinical trialopportunities
Excellent network
of research laboratories Well-developedbase industries
Pro active
policy framework
Proficiency in
English
Low manpowercosts
The India Advantage
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Working
age
population
to rise
to 65%
Urban
population
to riseto 40%
30-40 mn
people
joining
middleclass
every
year
By 2020
Demographics: A strong demand driver
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Source:IMD Competitiveness Yearbook 2003Source: UN, Morgan Stanley
ISO:9001:2000
Partnership Driver - Skilled Manpower
Global Growth in Working-Age
Population (15~64) Over the NextSix Years (Mln)
375
83
73
56
41
38
20
13
0.04
-3
Availability of Skilled
Manpower, 2003
7.4
7.3
7.2
7.1
7.1
7.0
6.6
5.7
5.3
4.3
Availability of Qua lifiedEngineers, 2003
10 = High
1 = Low
8.
7.9
7.3
6.9
6.4
5.8
3.9
6.7
6.7
World
India
Africa
China
S E Asia
L America
W Asia
USA
W Europe
Japan
4,087
675
477
921
355
352
127
197
123
85
StockPosition 2004
Addl workingage population
by 2010
Singapore
USA
India
Germany
Hong Kong
Japan
Taiwan
Korea
Mexico
China
10 = High
1 = Low
India
Singapore
USA
Hong Kong
Germany
Taiwan
Mexico
Korea
China
Growing Knowledge Pool
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2.4
5.88 6.4 6.5 7.2 7.2 8
8.9
25 28
6
0
5
10
15
20
25
30
Average wage / year (in thousand US dollars)
Source: NASSCOM
Costs for offshore work30 - 50 % lower than in USA / Europe
The Cost Advantage
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Total Compensation for Workers in HeavyManufacturing (US$ per Hour)
20.32
8.35
2.270.75 0.43 0.35
0
5
10
15
20
25
USA Korea Mexico China India Indonesia
Low Wages
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Reduction in Peak Customs Duties on Manufactured items
150
110
50 38.5 30 25 2042
0
20
40
60
80
100
120
140
160
1991 Mar-92 Mar-95 Mar-97 Mar-00 Mar-02 Mar-03 w.e.f March
2004
inp
ercent
Import duty Reductions
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10th largest economy in the world - 4th in terms of PPP
Will overtake Japan in PPP terms by 2010, to be 3rd largest in the world
Large entrepreneurial base and diversified manufacturing structure
Large reservoir of skilled labour at internationally competitive cost
Vast pool of scientifically and technically qualified manpower of 20m
A large domestic market - 300 m + strong middle class populationhaving substantial purchasing power
Largest democratic set - up
A broad based and transparent legal framework including arbitration
India - Economic Enablers
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Vast network of bank branches, financial institutions and well-organized
capital and money markets
A network of technical and management institutes of highest
international standards for development of human resources
India has a record of meeting its international financial obligations as
per schedule and has never been a defaulter
No communication barrier, as English is the most prevalent businesslanguage
Strong and vibrant small scale sector that is keen to establishstrategic alliances with their foreign counterparts
India - Economic Enablers
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Supportive infrastructure base
Strategic location for third country markets, particularly in the rapidlygrowing south and south-east Asian countries
The strategic location of India and its easy and efficient access to the
Middle East, East European countries, CIS countries, Africa, South East Asiaand Asia-Pacific countries places it in a unique position as a sourcing groundfor entering into strategic alliances in export-oriented industries
Foreign companies can take advantage of Indias strategic location and tap
the markets of these countries.India is slowly but surely emerging as an attractive destination for foreigninvestment
Liberalized industrial and foreign investment policies
India - Economic Enablers
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Recognising the need and the potential in certain areas, the Governmenthas also come out with specialised packages of incentives for setting upprojects in the fields of power, roads and highways, telecommunications,mining, drugs and pharmaceuticals,hydrocarbons, shipping and ports,tourism, electronics, food processing, etc
The Government is vigorously promoting and approving foreign directinvestment keeping in view the objective of attracting at least US $ 10 b
per annum
The Government is very keen to attract sizeable foreign investment into
infrastructural projects like roads, power, ports, telecommunications, etc.as the demand for infrastructural services is expected to rise severaltimes to match the projected economic growth of around 8 % per annumin the next ten years
India - Economic Enablers
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Sector FDI Limits
Defence up to 26 %
Telecom up to 74 %
Civil Aviation up to 49 %
Real estate & construction sector up to 100 %
Integrated township development up to 100 %
Tea plantation up to 100 %
India - Economic Enablers
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Road length 2.5 m km
Second largest road network in the world
Railway routes 63,000 km
Cargo handled 298 m tonnes
Electricity installed capacity 126,000 MW
Sixth in world electricity generation
Telephone Connections 77 m lines
Fixed lines (Dec, 2004) 44.76 m
8th largest telecom network in the world
Source: Department of Economics & Statistics, Tata Services Ltd
The India Advantage: Infrastructure
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Indian Brains Abroad
Though foreign multinational have dominated the research agenda in India
to date, a growing number of Indians who have worked abroad are
returning home with cash, contacts and confidence to set up companies
of their own
These are people who have the experience and exposure to best practices
abroad For the first time, Indians who have been exposed to the world, realize they
can do something just as good and they can be world-class
They have an attitude to meet challenges and succeed and also give back
something to their country
35 % of Doctors in USA
36 % of NASA Scientists in USA
35 % of Silicon Valley Start-Ups are by Indians
India emerging as outsourcing hub
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BUSINESS OPPORTUNITIES
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Opportunity in various Industry Sectors
Software
Biotechnology
Outsourcing
Retailing
Real Estate
Auto Components
Telecommunication
Media & Entertainment
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The Software industry in India is witnessing an explosive growth and expectsto generate US $ 87 b including US $ 50 b from exports by 2008
More than 150 global business giants have set up research and developmentfacilities in India
Some of these firms are GE, Microsoft, TI, HP, IBM, Daimler Chrysler andMotorola
Bangalore has over 150,000 software engineers and a concentration ofhi-tech companies
Delhi and NCR is the 3rd largest exporter of Software services from India
More than 70,000 software professionals enter the Indian market each year
Opportunities in Software
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Size (2002 - 03) US $ 24 b
Growth rate 28 %
Share of IT and BPO 1.4 % of GDP2008 projection 7 %
Exports (2003 - 04) + US $ 12 bGrowing at + 30 % pa
CAGR (since 1999) 46 %
Employment Over 650,000Second largest employer in IT services sector
Growing IT Market
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Opportunities in Pharmaceutical Industry
It is rapidly growing industries with revenue of US $ 2.6 b.
Indian Pharmaceutical industry is about US $ 16 b and isexpected to reach US $ 25 b by 2010.
The consumption of biotech products in India was US $ 1.8 bin 1999 and is expected to cross US $ 4.2 b by 2010
It is estimated that 10 % of the researchers and 15% of thescientists in pharmaceuticals and biotech R&D in USA are ofIndian origin
India is churning out 20,00,000 graduates, 300,000 postgraduates and 1,500 PhD's, every year
Biocon, the first biotech company was launched in 1978
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Famous Indian Firms are Ranbaxy, Shantha Biotech, BharatBiotech, Cipla, Dr. Reddy s Lab and Biocon.
Foreign players such as Aventis, Monsanto are present in India.
India pharma industries are expected to grow at 24% p.a till 2010.
O
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Opportunities in Real Estate
Indian real estate market is booming and expected to grow to US $
60 bn by 2010 at CAGR of 40 %.
Investment opportunities exist in almost every segment of the business-
Housing: about 25 million new units expected to be built in 7 years
Office space for IT/ITES: 150 million sq. ft. across urban India by 2010
Commercial space for organised retailing: 220 million sq. ft. by 2010
Hotels and Hospitality: Over 100,000 new rooms in the next 5 years
250 new shopping mall by 2010
O t iti i O t i
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The Indian Outsourcing industry is moving up the value chain
It is BPO today but the future is for Knowledge Process Outsourcing(KPO), Financial Process Outsourcing (FPO) and Legal ProcessOutsourcing (LPO)
It is providing value through domain expertise rather than process
expertise
India, in the new knowledge economy, is all set to emerge as a globalKPO,FPO and the LPO hub
It is estimated to capture 71 % of the world market by 2010 against56 % today giving it a market of US $12 b
There are new opportunities, given that there is a serious shortage of
quality teachers, in the USA
Opportunities in Outsourcing
O t iti i O t i
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The remote education market is expected to be US $ 15 b by 2008
The current leaders are Engineering design US $ 400 m, basic
data search, integration and management US $300 m and Biotech and
Pharma US $ 280 m
The Compounded estimated annual growth of KPO for India is 50 %
whereas BPO will grow at about 30 %
KPO is expected to engage 250,000 people by 2010
It will be in areas such as biotechnology,animation and graphics,design
in aerospace & automotive, health care, pharma research, learning
solutions, data management, customer analytics and entertainment
FPO will include insurance underwriting, risk assessment, equity
research and corporate market research
Opportunities in Outsourcing
ITES BPO S t
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Contribution of IT Enabled Services in total IT
1999-200020%
2000-200120%
2002-2003
33%
2001-200227%
- ITES exports projected to touch US$ 24 b by 2008
- India offers combination of cost-quality-scale advantage
ITES - BPO Sector
O t iti i R t il S t
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The ongoing buoyancy in Indias spending, arising from the changing demographicsand the resultant rise in income levels, has resulted in a distinct consumer preferencefor value-added products across the retail spectrum, providing a platform for therapid growth of the retailing sector which could emerge as one of the fastest growingsector in coming years
Organized retailing industry to rise from US $ 4b to US $ 15b by 2010The total retailing industry, estimated at US $ 200b is largely in the unorganized
sector with organized retailing accounting for less than 2 % (US $ 4b)
The organized retailing segment to grow fourfold in 5 years
According to NCAER, the Indian middle class (household income between US$ 4,500 23,000) currently at 92m, is expected to cross 153m by 2010
Substantial mall construction:The number of malls is expected to rise from the current 40 to around 250 by2010
Close to 50m sq. ft. of retail space is expected to be developed over the next 5years
Opportunities in Retail Sector
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The Indian automobile industry witnessed very high growth rate i.eapprox 14% CAGR in vehicle production in last 3 years.
It is a US $ 34 b industry and reach US $ 145 by 2016- export constitutes5% of revenue.
The opening up of the sector over the last decade has caught theattention of global auto majors
In the 1990s, economic liberalization allowed foreign automakers suchas Hyundai, Ford, Toyota and GM set up base in India
They also persuaded their overseas components suppliers to set uplocal manufacturing bases in India
For example, Delphi followed General Motors and opened their plant inthe state of Gujarat in 1995 and Visteon followed Ford in 1998
Opportunities in Automobiles industry
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Opportunities in Automobile industry
About 12 million vehicles are produced in India in2007-2008.
Total Exports By 2010 US $ 5b
Key Features
- Suitability as a low cost manufacturing base for MNCs
- Costs 20 - 30 % lower, compared to USA
- High product quality, superior design & engineering
capabilities
* Source: ACMA
Opportunities in Telecommunication
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Opportunities in Telecommunication
Until 1995, during the more than forty years of government monopoly, there
were 9.4 m telephone connections
There are 46.2 m fixed line subscribers and 52.2 m mobile phones
The mobile phone market is growing at 2 m per month
Estimated rise in Cellular by 100 m subscribers by 2007
Basic telephone connections 175 m by 2010
100 % FDI in telecom equipment manufacturing
Almost 2 m wireless subscribers getting added every month
Unlike many developed countries, the GSM and CDMA technologies co - exist
The outsourcing boom would not have occurred without the private telecom
sector
Opportunities in Media & Entertainment
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The Indian media and entertainment industry, with the prominentsegments being films, television, and music has grown in recent times
The entertainment industry is currently generating revenue of US $ 7.2b
The average growth budget for films has been increasing by 15 % p.a
Another high growth segment of the entertainment industry is televisionbroadcasting
The present size of this segment is estimated to be US $ 1b
The penetration of cable TV, in the rural segment is expected togrow by 12 % pa
The music industry in India is expected grow at 20 % pa
FM radio broadcasting has been privatized
Opportunities in Media & Entertainment
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WINNINGATTITUDE
It Is All About Attitude Management
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Differentiating themselves through the products and services they provide
Standing out by creating special interfaces with their customers and buildingunique ways by which they can be held accountable by them
Building a very strong quality story
Benchmarking innovations against well set, globally accepted standards and
aim for targets, creating an environment and culture of innovation within theorganization
Developing systems to nurture innovation making full use of the availability ofinformation and by rightful dissemination of knowledge to foster goal driveninnovation
Building efficient processes to cut time - to- market
Providing opportunities to their people to do roles that go beyond theirexisting work profiles
Providing continuing education
It Is All About Attitude - Management
It Is All About Attitude Business Person
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Need to tone up their skills More adaptive thinking
Greater entrepreneurial drive to find new horizons of growth with a competitivespirit
Foresight with a fierce unrelenting passion to execute and act today to improve thefuture
Bring change more aggressively and lead the organization to implementsustainable changes
Energizing their team and inspiring them for excellent team performance
Delegating authority to allow people to perform
It Is All About Attitude Business Person
It Is All About Attitude Business Person
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Ability to reach out to a wide international network for ideas and problemsolving
Understanding on how things get decided and done
Using customized strategies to influence specific stakeholders
Executive maturity and emotional wisdom to respond to others andembody the aspirations of ones organization
Inner strength to do the right thing at the right time
Courageous dedication to super ordinate goals, doing what is right and
what will make India great
To keep learning and be abreast of new technology
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THANK YOU