1 FASTEST GROWING FREE MARKET DEMOCRACY IN A GLOBAL ECONOMY INDIA Presentation by: Kamal Meattle, CEO, PBC-STIP, New Delhi, India www.pbcnet.com [email protected]
Transcript
Slide 1
1 FASTEST GROWING FREE MARKET DEMOCRACY IN A GLOBAL ECONOMY
INDIA Presentation by: Kamal Meattle, CEO, PBC-STIP, New Delhi,
India www.pbcnet.com [email protected]
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2 THE INDIA STORY INDIAN SUCCESS STORIES INTERNATIONAL SUCCESS
STORIES INDIA ADVANTAGE BUSINESS OPPORTUNITIES BUSINESS
OPPORTUNITES FOR PHILIPPINES SME : ADDING VALUE WINNING ATTITUDE
ACKNOWLEDGEMENT CONTENTS
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3 THE INDIA STORY
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4 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 to 2050 ) states that, among Brazil,
Russia, India and China, India will grow the fastest over the next
30 to 50 years by leveraging its demographic advantages and through
continued development Indias GDP will exceed Italys in 2016,
Frances in 2019, Germanys in 2023 and Japans in 2032 INDIA TO
BECOME THE 3 RD LARGEST ECONOMY IN THE WORLD BY 2032 AND THE STORY
BEGAN IN 1947
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5 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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6 Liberalization of Industrial Licensing De-licensing
De-control De-regulation Broad banding Abolition of registration
FERA Liberalization Liberalization of foreign investment
Liberalization of Technology Import The New Industrial Policy for
liberalization-1991
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7 MRTP Liberalization Abolition of threshold assets limit No
MRTP clearance needed for expansions, mergers Curtailment of Public
Sector Several industries hitherto reserved for public sector
opened up to private sector Only eight core industries remain
reserved for the public sector Purview of Board for Industrial and
Financial Reconstruction ( BIFR) extended to Public sector The New
Industrial Policy for liberalization - 1991
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8 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 of Resources with Minimum
State Intervention Reducing and rationalising foreign trade
barriers India Liberalization Stage - Strategies Developed
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9 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 in 2004-05 Economic Scenario : Post
Liberalisation
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10 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
last five 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 economic growth in the future The Indian Government is
working in close co-operation with industry and trade to mitigate
the remaining problems and constraints Broad consensus across the
political spectrum on the need for and direction of the reforms.
Some issues still need to be resolved Economic Scenario : Post
Liberalization
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11 Share Of Services Sector In GDP On The Rise (%)
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12 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 1 st Tea, Milk 2 nd Rice,
wheat, sugar Agriculture
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13 Rate of growth 2003-047 % 2004-059.2 % 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
15 Average GDP Growth (1990-2001) 9.4 6.2 5.5 4.9 4.7 3.3 2.9
2.0 1.5 2.5 3.5 4.5 5.5 6.5 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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16 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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17 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)
20 Number of foreign firms acquired 120 by Indian companies
during 2001 - 03 Total worthUS $ 1.6 b India - 8th largest investor
in the UK No of investments 440 No of Indian companies with 1,441
operations in Singapore Indian MNCs - On a global buying spree
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21 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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22 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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23 Some Indian Examples Benchmarked with the Best In The
World
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24 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 and over 6% of India's exports Today, the Reliance Group
has one of the largest family of shareholders in the world
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25 Success Story of WIPRO Wipro was set up in the backdrop of
the small town of Amalner in Maharashtra in 1945 An SME and
primarily an oil factory, the chief products were Sunflower
Vanaspati and 787 laundry soap It was in the early eighties that
Wipro made its foray into the Infotech arena With this began the
Wipro Infotech story Today, Wipro stands at the firmament, as a
trusted and experienced provider of a comprehensive range of IT
services, solutions and products, worldwide
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26 Success Story of BHARTI Bharti Enterprises has successfully
focused its strategy on telecom while straddling diverse fields of
business It all began as a Small Industry Bharti Tele-Ventures is
today acknowledged as one of India's finest companies, and its
flagship brand 'Airtel', has over 12 million customers across India
Recently, Bharti has successfully launched an international venture
with EL Rothschild Group owned ELRO Holdings India Ltd., to export
fresh Agri- products exclusively to markets in Europe and USA
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27 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 become what it is
today Today, the company with revenues of US $446 m, in fiscal year
2005, is Indias second largest pharmaceutical company and the
youngest among its peer group Dr. Reddys started its drug discovery
programme in 1993 and within three years it achieved its first
breakthrough by out licensing an anti-diabetes molecule to Novo
Nordisk 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 India Today, the company
manufactures and markets API (Bulk Actives), Finished Dosages and
Biologics in over 100 countries worldwide, in addition to having a
very promising Drug Discovery Pipeline
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28 Success Story of BIOCON Biocon is India's leading
biotechnology enterprise Over the past 25 years, they have evolved
from an small enzyme manufacturing company to a fully integrated
biopharmaceutical enterprise, focused on healthcare At Biocon,
success has been their ability to develop innovative technologies
and products and to rapidly leverage them to adjacent domains This
unique "integrated innovation" approach has yielded a host of
patented products and technologies that have enabled multi-level
relationships with their global clientele As India's first and
leading biotechnology company, Biocon extends its support to
numerous community outreach and corporate citizenship initiatives
with special concentration in the areas of healthcare, education
and environment The Biocon Foundation, set up in 2004 has recently
launched Arogya Raksha Yojana, a unique health initiative for rural
India
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29 Success Story of Paharpur Cooling Towers In its over four
decades of existence, Paharpur has come to be acknowledged as the
pioneer 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 265 million liters of water every minute or 382 b
liters in 24 hours The Paharpur team consists of highly qualified
engineers & professionals with over 1,000 man 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 and has
emerged as one of the largest cooling tower manufacturers in the
world, with exports to more than 40 countries
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30 Success Story of Standipack A successful SSI unit set up in
1980, in NCR, Delhi It is the largest lube oil flexible packaging
company in India producing packaging materials, machinery and
systems and doing contract packaging Produces /contract packages
over 300 m packages a year, for the oil majors in Delhi, Kolkata,
Chennai and Mumbai Patents in most countries of the World
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31 Success Story of Paharpur Business Centre & Software
Technology Incubator Park Began operations in 1990 in New Delhi,
with an equity capital of Less than US $ 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, OHSAS
18001 and HACCP Commitment to UN Global Compact
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32 Publishes its annual Sustainability Report following the GRI
system Reports its triple bottom line - relating to profit,
environment and sustainability Now providing technical support to
setting up of a 1.7 m ft2 Software Park near 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 Mountain
Quality Air using biotechnology developed by NASA, USA to clean air
Success Story of Paharpur Business Centre & Software Technology
Incubator Park
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33 INTERNATIONAL SUCCESS STORIES
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34 India attracts second highest private equity 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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35 MNCs leveraging the India Advantage
Slide 36
36 * FDI INFLOWS TO INDIA
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37 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 3 rd largest in the world Texas Instruments Digital Signal
Processor developed in India controls 50% of the world market AVL,
Austria India as base to do R&D for the companys Japan centre
International Brands Utilizing The Indian Knowledge Base
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38 Beiersdorf Problems at beginning: Existence of rival company
(Nivea) in the market (personal hygiene 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
German Companies in India
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39 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 German Companies in India
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40 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, CNN 2004 "India has the potential
to deliver the fastest growth 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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41 INDIA ADVANTAGE
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42 Trained manpower and knowledge base Rich biodiversity
Extensive clinical trial opportunities Excellent network of
research laboratories Well-developed base industries Pro active
policy framework Proficiency in English Low manpower costs The
India Advantage
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43 Demographics: A strong demand driver
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44 Source: IMD Competitiveness Yearbook 2003Source: UN, Morgan
Stanley Growing Knowledge Pool
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45 Costs for offshore work 30 - 50 % lower than in USA / Europe
The Cost Advantage
48 10th largest economy in the world - 4th in terms of PPP Will
overtake Japan in PPP terms by 2010, to be 3 rd 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 population having substantial purchasing power Largest
democratic set - up A broad based and transparent legal framework
including arbitration India - Economic Enablers
Slide 49
49 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 business language Strong and vibrant small scale sector
that is keen to establish strategic alliances with their foreign
counterparts India - Economic Enablers
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50 Supportive infrastructure base Strategic location for third
country markets, particularly in the rapidly growing 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 Asia and Asia-Pacific
countries places it in a unique position as a sourcing ground for
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 foreign investment
Liberalized industrial and foreign investment policies India -
Economic Enablers
Slide 51
51 Recognising the need and the potential in certain areas, the
Government has also come out with specialised packages of
incentives for setting up projects 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 direct investment 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 several times to match the projected economic
growth of around 8 % per annum in the next ten years India -
Economic Enablers
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52 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
Slide 53
53 Road length2.5 m km Second largest road network in the world
Railway routes63,000 km Cargo handled 298 m tonnes Electricity
installed capacity126,000 MW Sixth in world electricity generation
Telephone Connections77 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
Slide 54
54 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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55 BUSINESS OPPORTUNITIES
Slide 56
56 Opportunity in various Industry Sectors Software
Biotechnology Outsourcing Retailing Real Estate Auto Components
Telecommunication Media & Entertainment
Slide 57
57 The Software industry in India is witnessing an explosive
growth and expects to generate US $ 87 b including US $ 50 b from
exports by 2008 More than 150 global business giants have set up
research and development facilities in India Some of these firms
are GE, Microsoft, TI, HP, IBM, Daimler Chrysler and Motorola
Bangalore has over 150,000 software engineers and a concentration
of hi-tech companies Delhi and NCR is the 3 rd 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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58 Opportunities in Software The China Connection China has a
worker base equal to India's in terms of cost, quality and scale In
future, the Indian software Industry will use China as a base to
cater to the local markets including Japan Indian firms such as
HCL, TCS, Infosys and Wipro have already opened centers in China to
outsource technology talent
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59 Size (2002 - 03) US $ 24 b Growth rate 28 % Share of IT and
BPO1.4 % of GDP 2008 projection7 % Exports (2003 - 04) + US $ 12 b
Growing at+ 30 % pa CAGR (since 1999)46 % EmploymentOver 650,000
Second largest employer in IT services sector Growing IT
Market
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60 Opportunities in Biotechnology Biotechnology is a fast
emerging sector in India The consumption of biotech products in
India was US $ 1.8 b in 1999 and is expected to cross US $ 4.2 b by
2010 It is estimated that 10 % of the researchers and 15% of the
scientists in pharmaceuticals and biotech R&D in USA are of
Indian origin India is churning out 2 m graduates, 300,000 post
graduates and 1,500 PhD's, every year Biocon, the first biotech
company was launched in 1978 Indian Firms such as Shantha Biotech,
Bharat Biotech, Dr. Reddy's Lab and Biocon are all very successful
firms
Slide 61
61 2002- 03 2010 25 % growth in investment 70 % growth in
employment 74 % growth in R&D manpower 10 % of global industry
1 m skilled jobs US $ 5 b annual revenues Source: Confederation of
Indian Industry (CII) Size 2003 - 04 US $ 705 m Biotech Market - A
consistent Uptrend
Slide 62
62 Volume wise8 % of global market 4 th largest in the world
CAGR(1995 - 2002)16.6 % Exports 23 % CAGR(1995 - 2002) Size (2002-
03)US$ 7 b Share of formulations80 % Size 2010 (estimated)US$ 25 b
Pharma Market
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63 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 Process
Outsourcing (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 global KPO,FPO and the LPO hub It is
estimated to capture 71 % of the world market by 2010 against 56 %
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
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64 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
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65 - ITES exports projected to touch US$ 24 b by 2008 - India
offers combination of cost-quality-scale advantage ITES - BPO
Sector
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66 The ongoing buoyancy in Indias spending, arising from the
changing demographics and the resultant rise in income levels, has
resulted in a distinct consumer preference for value-added products
across the retail spectrum, providing a platform for the rapid
growth of the retailing sector which could emerge as one of the
fastest growing sector in coming years Organized retailing industry
to rise from US $ 4b to US $ 15b by 2010 The 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 by 2010 Close to
50m sq. ft. of retail space is expected to be developed over the
next 5 years Opportunities in Retail Sector
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67 Opportunities in Real Estate The US $ 50 b Indian real
estate market is booming and expected to grow at 25 per cent
annually The boom owing to the consumption powered growth of the
country's economy has seen investors planning nearly 250 new
shopping malls by 2008, as against just three that existed till
2002 The central government adopted a regulation in 2005 allowing
foreigners to bid for Indian construction projects with local
partners and also reducing their minimum land - holding limit from
100 acres to 25 acres Enthused by the liberalized investment
guidelines, a slew of foreign builders are rushing to launch
projects in Asia's third largest economy Expected annual shortfall
of 20 m housing units by 2011 Mumbai alone would need more than
180,000 housing units An opportunity for developing large- scale
commercial and residential townships in six cities Kolkata,
Bangalore, Mumbai, Chennai, Hyderabad and New Delhi
Slide 68
68 The Indian automotive industry has grown at a staggering
pace over the last few years The US$ 6.8 b industry has registered
a CAGR of 17 % between 1998 - 2003 and is projected by ACMA to grow
at a 15 % CAGR till fiscal 2012 The opening up of the sector over
the last decade has caught the attention of global auto majors In
the 1990s, economic liberalization allowed foreign automakers such
as Hyundai, Ford, Toyota and GM set up base in India They also
persuaded their overseas components suppliers to set up local
manufacturing bases in India For example, Delphi followed General
Motors and opened their plant in the state of Gujarat in 1995 and
Visteon followed Ford in 1998 Opportunities in Auto Components
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69 Opportunities in Auto Components Present Industry size US $
6.8b By 2012US $ 17b Total Exports By 2010US $ 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
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70 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
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71 The Indian media and entertainment industry, with the
prominent segments 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 television broadcasting The present size
of this segment is estimated to be US $ 1b The penetration of cable
TV, in the rural segment is expected to grow by 12 % pa The music
industry in India is expected grow at 20 % pa FM radio broadcasting
has been privatized Opportunities in Media & Entertainment
Slide 72
72 FOR PHILIPPINES BUSINESS OPPORTUNITIES
Slide 73
73 YearExportImportTotal TradeBalance of Trade 1997-
98239.0127.77266.78211.24 1998 - 99118.7137.25155.9681.46 1999 -
00143.6856.31199.9987.37 2000 - 01201.6362.97264.60138.66 2001-
02248.6395.17343.80153.46 2002 - 03473.23123.98597.21349.25 2003 -
04321.54122.11443.65199.43 2004 - 05393.90181.87575.77212.03
Bilateral Trade Value in US $ m Source: Ministry of Commerce,
India
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74 Meat & preparation Drugs, Pharmaceuticals & fine
Chemicals Rubber manufactured products except footwear Plastic
& Linoleum Products Primary & semi finished iron steel
Major Indian Exports To Philippines Major Indian Imports From
Philippines Metal ores & scrap News print Non - ferrous metals
Gold Electronic goods
Slide 75
75 IT & ITES Sharing information & technology for clean
environment Gems and Jewelry Natural and Herbal Products Renewable
Energy Sources Dairy Drugs and Pharmaceuticals Construction and
Material and services Mining Oil and Gas Potential for
Business
Slide 76
76 The major sources of air pollutants Motor vehicles
Industrial plants Burning and construction work The continuing
increase in motor vehicles and population, the inadequate mass
transit system, worsening traffic conditions, the establishment of
pollutive industries, the widespread practice of open burning, and
inadequate enforcement, if not adequately addressed, are bound to
contribute to increasing air pollution in the surrounding areas The
most effective approach in improving air quality is to stop the
generation of pollutants at their source This involves replacing a
highly pollutive technology or energy source with a non- polluting
or a less polluting one, including shifting to cleaner fuels
Deteriorating Air Quality
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77 The worlds best practices in preventing air pollution and
maintaining ambient air quality reflect the creative use of
technology and fuel options, which range from Use of cleaner
vehicle fuels - CNG, Gasohol, Biodiesel, Fuel cell, Electricity
Solar energy Wind energy Mass transportation systems Underground,
Monorail Usage of Appropriate technologies for Green Buildings
Innovative urban planning incorporating walkways and bike lanes Air
Quality Management
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78 * American Society for Heating, Refrigeration, Air
Conditioning Engineers 62-1999 (revised) ** American Society for
Heating, Refrigeration, Air Conditioning Engineers 62-2001
(revised) # Below Detectable Level Any presence of Benzene is
carcinogenic ^ Data validated to August 2005 Improvement Of Ambient
Air - Nehru Place Greens, New Delhi 1996 - 2005
Slide 79
79 American Society for Heating, Refrigeration, Air
Conditioning Engineers 62-1999 (revised) American Society for
Heating, Refrigeration, Air Conditioning Engineers 62-2001
(revised) Below Detectable Level any presence of Benzene is
carcinogenic IAQ Results After IAQ Program At PBC TM - STIP 1996 -
2005
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80 Areca Palm (Living Room Plant) Sansevieria Trifasciata (Bed
Room Plant) Using toxin removing plants to clean the air
Biotechnology originally developed by NASA, USA and research done
by PBC - STIP on plants suitable for the Delhi climate Air Quality
Management Grow Fresh Air
Slide 81
81 SME: ADDING VALUE
Slide 82
82 SMEs IN EU CategoryMax.# EmployeesMax. Turnover Euro m
Medium24950 Small4910 Smallest92 Wef. January 2005
Slide 83
83 The definition of small-scale industries (SSI), is given
below Norms for Definition of SSI in India Maximum Limit of
Investment in plant and machinery in INR m YearSSIAncillary 1985
3.5 4.5 1991 6 7.5 1997 3030 1999 10 10 Source: Ministry of SSI,
Govt. of India SMEs IN INDIA INR 10 m = US $ 227,000
Slide 84
84 Contribution Of SMEs Across Diverse Economies
Slide 85
85 To say it in Sam Pitrodas words Technology is for problem
solving at personal, community and national levels It is about
doing things differently It is about change in mindset, processes,
products and preferences Technology is about opportunities and
experiences This is where the SSI is creating a successful niche
for itself. Technology is empowering people at all levels cutting
across sectors This has helped India graduate from being a
promising economy to one of the fastest growing economies
Technology & SSI
Slide 86
86 Textiles, Knitwear, Garments, Woolen and Hosiery Leather and
Leather products including footwear and garments Food Processing
Drugs, Pharmaceuticals and Biotech Auto parts and components
Chemicals, Dyes and intermediaries Hand Tools Electronic Industry
particularly relating to design and measuring SSI Dominant Sectors
In India Glass and Ceramic items including tiles Information
Technology and ITES Rubber and Plastic Products, Parts &
Components Bicycle and Bicycle parts Foundries Ferrous and Cast
Iron Lubricant Manufacturing Gems and Jewelry Paper and Paper
products, Corrugated Boxes
Slide 87
87 350 SSI and 2,000 artisans clusters Panipat (Haryana)
accounts for 75 % of the total blankets produced in India Tirupur
(Tamilnadu) contributes 80 % of the countrys hosiery exports Agra
(Uttar Pradesh) produces 150,000 shoes per day valued at US $ 1.3 m
Ludhiana (Punjab) produces 95 % of the countrys woolen knitwear, 85
per cent of countrys sewing machines and 60 per cent of bicycle and
bicycle parts SSI Enablers - CLUSTERS
Slide 88
88 Dedicated Ministry and allied organisations offer Policy
Support - Reservation, Priority Sector Lending, SEZ, Labor
Institutional support - Through testing centres, tool rooms,
entrepreneurship development institutes, training, warehousing
Partnership support - Sub-contracting, ancillarisation & vendor
development Marketing Support - Through Trading Houses, Subsidizing
the participation at international Trade Fairs, sales promotion and
business travel SUPPORT FOR SSI
Slide 89
89 Credit Guarantee Fund Trust Scheme Collateral free loans of
lenders to SSIs up to US $ 58,000 Payment to SSI suppliers should
be made within 120 days Reimbursement scheme in respect of ISO 9000
Quality Certification Instituting marketing development assistance
scheme Additional Government Initiatives
Slide 90
90 Reservation of items for exclusive purchase from SSI 358
items reserved for preferential purchase from SSI Price preference
up to 15 % on Government purchase Development of Industrial Estates
In selected towns Technology : Adoption of new technology
Technology up gradation of existing units POLICY FRAMEWORK:
Important Features
Slide 91
91 Networking of SSI for Globalization The promotion of
inter-firm linkages Use of Internet: Web Portals like eBay have
opened a new avenue, which the SSI are using as a tool, for
marketing The increasing presence of Multinational corporations
have opened new opportunities for subcontracting
93 An Engine of Growth 95% of Industrial Units 7% of GDP 35% of
National Exports > 8,000 Products Over 11 m Units Over 27 m
Employed SSI Contribution Of SSI In India
Slide 94
94 YearTotal SSI Units (million) Registered SSI Units (million)
Unregistered SSI Units (million) Employment (million) Employment
per Unit Exports US $ (billion) 1998- 999.31.28.1222.411 2002-
03111.59.5262.420 2004- 05 (P) 12210282.324 Source: Ministry of SSI
Growing Competitiveness of SSI The Average Export per unit is US $
2,000
Slide 95
95 Growing Productivity & Quality Controls YearAverage
Capital US $ Employment Per UnitProduction US $
1993-942,1006.317,000 1999-003,7003.671,000 Source: Second Census
& Sample Survey of 1999-2000 by DC(SSI) 50 % of the total
number of ISO 9001 / 14001 certified units are from the SSI
Sector
Slide 96
96 WINNING ATTITUDE
Slide 97
97 Differentiating themselves through the products and services
they provide Standing out by creating special interfaces with their
customers and building unique 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 the organization Developing systems to nurture
innovation making full use of the availability of information and
by rightful dissemination of knowledge to foster goal driven
innovation Building efficient processes to cut time - to- market
Providing opportunities to their people to do roles that go beyond
their existing work profiles Providing continuing education It Is
All About Attitude - Management
Slide 98
98 Need to hone their skills More adaptive thinking Greater
entrepreneurial drive to find new horizons of growth with a
competitive spirit Foresight with a fierce unrelenting passion to
execute and act today to improve the future Bring change more
aggressively and lead the organization to implement sustainable
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
Slide 99
99 Ability to reach out to a wide international network for
ideas and problem solving Understanding on how things get decided
and done Using customized strategies to influence specific
stakeholders Executive maturity and emotional wisdom to respond to
others and embody 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 It Is All About Attitude Business Person
Slide 100
100 Acknow ledgement PHDCCI PHD Chamber of Commerce and
Industry CII Confederation of Indian Industry FICCI Federation of
Indian Chamber of Commerce and Industry Assocham Associated Chamber
of Commerce and Industry of India IGCC Indo German Chamber of
Commerce IACC Indo American Chamber of Commerce ICRIER Indian
Council for Research in International Economic Relations NASSCOM
National Association of Software and Service Companies USCAN
Uniting Services Consulting Advocacy and Networking Paharpur
Business Centre The International Division