Spending Patterns across SECs

Essay: Understanding Consumer India by Rama Bijapurkar ..................................................45

Consumer India in Terms of Income Quintiles ............................................................................46

The Urban vs. Rural Income Index....................................................................................................48

Urban Consumers ......................................................................................................51

SECs in the Total Urban Population..................................................................................................52

Average Monthly Household Incomes of Urban SECs ..............................................................52

Distribution of Monthly Household Incomes of Urban SECs ................................................53

The New Urban Indian Consumer Pyramid ..................................................................................53

Ownership of Asset Categories at the Household Level ..........................................................54

Ownership of Various Vehicles at the Household Level ..........................................................55

Ownership of Popular Physical Assets/Durables at the Household Level ........................55

Ownership of Popular Financial Assets at the Household Level ..........................................56

House Ownership Levels and Type of House ..............................................................................56

Average Allocation of Household Expenditure among Major Spends* ............................56

District/Town Class by Population Size ..........................................................................................58

Educational Level and Occupation ..................................................................................................59

Gender of Chief Wage Earner ............................................................................................................60

Age of Chief Wage Earner ....................................................................................................................60

Preferred Language of Chief Wage Earner ....................................................................................61

Marital Status of Chief Wage Earner ..............................................................................................61

Top 5 Priorities across SECs ................................................................................................................61

Top 5 Luxuries across SECs ..................................................................................................................62

Top 10 Necessities across SECs1 ........................................................................................................63

Top 5 Attributes Defining Social Status..........................................................................................64

Personality Orientation across SECs ................................................................................................65

Active Members of Professional Associations/Community Clubs/

Religious Groups ........................................................................................................................67

Technology Orientation across SECs ..............................................................................................69

Indoor Entertainment Activities/Pastimes ....................................................................................70

Top 5 Hobbies and Interests ..............................................................................................................71

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CONTENTS

Contents

Businessworld Marketing Whitebook 2010-201116

Top 10 Preferred Attributes While Buying Products/Services ................................................73

Usage of Various Media at Home......................................................................................................74

Most Trusted Medium for Information on Products/Services ................................................74

Top 5 Lifestyle Diseases ........................................................................................................................75

Media Overview - All Metros........................................................................................................76-78

Ownership of Consumer Durables - All Metros ....................................................................79-81

Rural Consumers ......................................................................................................82

Educational Level of the Homemaker vs. Product Penetration (%) ....................................82

Exposure to TV & Cable & Satellite (C&S) vs. Consumer Durables Penetration (%)........83

Exposure to TV & Cable & Satellite (C&S) vs. FMCG Penetration (%)....................................83

Gender Literacy among 12 Years + Individuals (%)....................................................................84

Highest Educational Level in a Household - 10th Grade & Above (%)................................84

Homemaker Literacy (%)......................................................................................................................85

TV Ownership (%) ..................................................................................................................................85

Cable & Satellite (C&S) Availability (%)............................................................................................86

Penetration of Consumer Durables (%) ..........................................................................................87

Penetration of Food and Beverages (%) ........................................................................................87

Penetration of Personal and Household Products (%)..............................................................88

Global Outlook ..........................................................................................................89

Consumer Confidence Index ........................................................................................................... ..90

Actions in June 09 vs Predicted Actions in March 09 (%) ........................................................91

% Utilising Spare Cash after Covering Essential Expenses ......................................................91

Analyst's View: Striving for a Better Life by Santosh Desai......................................................92

Growth in the Consumer Markets

Essay: The Resurgent Tiger by Ramesh Srinivas ..........................................................................97

The Food and Beverages Industry ................................................................................102

Food Consumption in India..............................................................................................................102

Share in Total Consumption across Product Categories ........................................................104

Change in Overall Consumption Spends across Product Categories

(USD billions) ............................................................................................................................104

Expected Growth of Food Private Final Consumption Expenditure

(PFCE) ..........................................................................................................................................105

India's Rank Relative to the World in Various Agri-products ................................................106

Contents

Businessworld Marketing Whitebook 2010-2011 17

Market Size and Composition of Fruits and Vegetables ........................................................106

Spends on Agri-products (USD millons) ......................................................................................107

Market Size and Composition of Dairy Products......................................................................107

Milk and Milk Products Production in India ..............................................................................108

Spends on Milk and Milk Products (USD millions) ..................................................................108

Milk and Milk Products Processing Statistics, India ................................................................109

Total Meat Statistics in India ............................................................................................................110

Market Size and Composition of Buffalo Meat and Poultry Products ..............................111

Broiler Meat and Beef Production vs. Consumption in India ..............................................111

Fish and Fisheries Products Processing Statistics, India ........................................................112

Market Size and Composition of Fish and Marine Products ................................................113

Spends on Meat and Marine Products (USD millions)............................................................113

Awareness of 'New Food' Types ......................................................................................................114

Meals Consumed Over a Week........................................................................................................114

Most Important Meal to Stay in Good Health............................................................................115

Incidence of Consuming Egg in any form in the Course of a Month................................115

Indian Food Industry (USD billions) ..............................................................................................116

Incidence of 'Ordering in'/ 'Eating out' Chaat Items -in the Course of a Month ..........116

Indian Food Processing Industry ....................................................................................................117

Processed Food Output......................................................................................................................118

Packaged Food Industry ....................................................................................................................118

Market Size and Composition of Packaged Foods ..................................................................119

Segments Contributing to the Growth of the Packaged Food Industry (%)..................119

Growth Trend of the Packaged Food Industry ..........................................................................119

Market Segmentation in Confectionery ......................................................................................120

Confectionery Market Size (by Volume) ......................................................................................120

Confectionery Market Size (by Value) ..........................................................................................120

Indian Soft Drink Market by Volume (litres billion)..................................................................121

Forecast Off-trade vs. On-trade Sales of Soft Drinks (as Sold) by Channel:

% Volume Growth 2008-2013 ............................................................................................121

Forecast Off-trade Sales of Soft Drinks (as Sold) by Region: Volume 2008-2013 ........122

Forecast Off-trade Sales of Soft Drinks (as Sold) by Sector: Volume 2008-2013 ..........122

SWOT Analysis ......................................................................................................................................123

Contents

Businessworld Marketing Whitebook 2010-201118

Indian Alcoholic Drinks Market ......................................................................................................124

Indian Spirits Market Value ..............................................................................................................124

Indian Beer Market Value ..................................................................................................................124

Indian Wine Market Value..................................................................................................................124

Wine Consumption - Volume and Growth..................................................................................124

Wine Consumption Across Cities and Segments......................................................................125

Domestic Production of Wine - Volume and Growth..............................................................125

Imported Wines - Volume and Growth ........................................................................................126

Forecast Sales of Health and Wellness Food and Beverages by Sector:

Value 2008-2012 ......................................................................................................................128

India's Food and Drink Trade............................................................................................................129

Forecast Units, Transactions and Value Sales in Consumer Food

Service - 2008-2013 ................................................................................................................130

Market Size and Growth in Warehousing Space (USD billions) ..........................................130

The Automobile Industry ........................................................131Domestic Sales Trend of Automobiles (FY09) ............................................................................132

Share of the Various Automotives..................................................................................................135

Passenger Vehicles (PVs): Domestic Sales Trend (FY09) ........................................................136

Passenger Cars: Segment-wise Y-o-Y Domestic Sales Growth (FY09)...............................136

PVs: Domestic Sales by Manufacturers ........................................................................................137

PVs: Manufacturer's Exports Share (FY09) ..................................................................................138

PV Industry Growth Drivers ..............................................................................................................138

Share in New Passenger Car Sale by Fuel Type ......................................................................139

Growth of Commercial Vehicles......................................................................................................140

Demand Potential of Buses ..............................................................................................................140

Goods Carrier: Segment-wise Domestic Sales Trend (FY09) ................................................141

Light Commercial Vehicle (LCV) Goods Carrier: Segment-wise Y-o-Y

Domestic Sales Growth (FY09) ..........................................................................................142

Medium and Heavy Commercial Vehicle (MHCV) Goods Carrier:

Y-o-Y Segment-wise Domestic Sales Growth (FY09) ..................................................142

Commercial Vehicle (CV): Segment-wise Y-o-Y Exports Growth (FY09) ..........................142

(CV): Tonnage-wise Y-o-Y Exports Growth (FY09) ....................................................................143

Domestic Sales Y-o-Y% Growth ......................................................................................................143

Domestic Annual CV Sales Outlook ..............................................................................................144

Contents

Businessworld Marketing Whitebook 2010-2011 19

Percentage Share of Each Sub-segment within Two-Wheelers (FY09) ..........................145

Two-Wheeler Sales Declined in 2007 but the Industry is Recovering Since 2008 ......145

Motorcycles: Segment-wise Y-o-Y Domestic Sales Growth (FY09) ....................................146

Domestic Market Share by Volume: (FY09) ................................................................................147

Three-Wheelers: Domestic Sales Trend (FY09) ..........................................................................147

Sale of Auto Components ................................................................................................................148

Auto Component Exports ................................................................................................................148

Geographic Distribution Spanning a Huge Customer Base in Rural Areas.................... 149

Percentage of Households in Each Income Category.............................................................150

Rural vs. Urban Penetration of Selected Products ..................................................................151

Examples of Companies Sourcing Components Either from Local

Suppliers or One’s Own Manufacturing Facilities ....................................................................152

Companies Sourcing/Planning to Source Completely Built Units (CBUs) from India 152

Expected Growth Rates in FY2010 ................................................................................................154

FMCG and Consumer Durables ................................................155FMCG Industry is Expected to Triple in Size by 2018 ..............................................................155

FMCG Industry Category Breakup..................................................................................................156

FMCG Sector Growth ..........................................................................................................................156

Category Penetration in India..........................................................................................................158

Growth Drivers ......................................................................................................................................158

Share of Wallet ......................................................................................................................................159

Rising Urbanisation..............................................................................................................................160

Growth of Retail (US$ billions) ........................................................................................................160

Investments by Retail Format - 2007-2014 ................................................................................161

FMCG Share in Modern Retail ..........................................................................................................161

LCD TV Demand in the World ..........................................................................................................162

Projected Scenarios in the FMCG Industry, 2008-2013 ..........................................................162

Ownership of Consumer Durables by Households - Urban India ............................166-169

Ownership of Consumer Durables by Households - Rural India ..............................170-173

Ownership of Consumer Durables by Households - All India ....................................174-177

Forecast Sales of Consumer Electronics by Sector - Volume 2008-2013 ........................178

Forecast Sales of Consumer Electronics by Sector: % Volume

Breakdown - 2008-2013 ........................................................................................................178

Contents

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Personal Care and Accessories ................................................179Forecast for the Colour Cosmetics Market (Million US$), 2009-2012................................179

Forecast Sales of Cosmetics and Toiletries by Sector: Value 2008-2013 ..........................180

Forecast Sales of Cosmetics and Toiletries by Region: Value 2008-2013 ........................181

Percentage-wise Consumption of Skin Creams/anti-creams/liquids by

Urban Households ..................................................................................................................181

Percentage-wise Consumption of Skin Creams/anti-creams/liquids by

Rural Households, 2007-09 ..................................................................................................182

Usage of Hair Oils/Dressings in Urban India: % of Volumes, 2007-09 ..............................183

Percentage-wise Usage of Hair Oils/Dressings by Rural Households, 2007-09 ............184

Usage of Hair-wash Products in Urban India: % of Volumes, 2007-09 ............................185

Percentage-wise Usage of Hair-wash Products by Rural Households, 2007-09............186

Forecast for Toothpaste Market (Million US$), 2009-2012 ....................................................186

Usage of Dentifrices in Urban India: % of Volumes, 2007-2009..........................................187

Percentage-wise Usage of Dentifrices by Rural Households, 2007-2009 ........................187

Usage of Toothbrushes in Urban India: % of Volumes, 2007-2009 ....................................188

Percentage-wise Usage of Toothbrushes by Rural Households, 2007-2009 ..................189

Forecast for Toothbrush Market (Million US$), 2009-2012....................................................189

Forecast for the Spa Market (Million US$), 2009-2012 ..........................................................190

Forecast for Gold Jewellery Sales (Billion US$), 2009-10 to 2011-12 ................................190

Forecast for Share in World Gold Consumption (2012).........................................................192

Forecast for Diamond Jewellery Market (Billion US$), 2009-10 & 2010-11 ....................192

Baby Care and Products ..........................................................193Forecast Sales of Baby Care by Sub-sector: Value (2008-2013) ..........................................193

Forecast Baby Care Premium Versus Mass % Analysis (2008-2013) ..................................194

Diapers Market (Rs. Crore), 2008 and 2009 ................................................................................195

Share of Brands in Diapers Market (2008) ..................................................................................195

Forecast for Diapers Market (Rs. Crore), 2008 & 2009 ............................................................196

Skin Care Market (Rs. Crore), 2008 & 2009 ..................................................................................196

Forecast for Skin Care Market (Rs. Crore), 2010-2013 ............................................................196

Baby Skin Care Brand Shares by Retail Value, 2007-2008 (% Retail Value RSP) ............197

Forecast Sales of Baby Care by Sub-sector: % Value Growth (2008-2013)......................197

Forecast Sales of Toys and Games by Sector: Value (2008-2013)........................................198

Contents

Businessworld Marketing Whitebook 2010-2011 21

Sales of Toys and Games by Distribution Format: % Analysis 2004-2009 ......................198

Forecast Sales of Toys and Games by Sector: % Value Growth (2008-2013) ..................199

Toys and Games Company Shares by Value 2004-2008................................................201-202

Forecast Sales of Toys and Games by Sector: Value 2009-2014 ..........................................204

Analyst's View: Golden Geese, Steel Safes - The Evolving Consumer Market

by Devangshu Dutta ..........................................................................................................................206

Consumption Patterns and Trends in the Services Sector

Essay: The Emerging Breed of Service Brands by Swapan Seth..........................................211

The Media and Entertainment Industry ..................................214Size of the Indian Media & Entertainment (M & E) Industry ................................................216

Share of Channel Genres at All India Level ................................................................................217

Pay Direct to Home (DTH) Subscriber Base ................................................................................218

Cable Households in India ................................................................................................................218

Internet Protocol Television (IPTV) Subscribers ........................................................................219

Average Time Spent Watching Television....................................................................................219

Distribution of TV Households ........................................................................................................222

Size of Indian Television Industry ..................................................................................................222

Projected Growth of Television Distribution, Advertising and

Content - 2009-2013............................................................................................................................223

Projected Growth of TV, Pay TV, Cable TV and DTH Households - 2009-2013 ..............224

Projected Size of Indian Print Media Industry ..........................................................................225

Print Advertising Sectors by Volumes ..........................................................................................226

Print Media Break-up by Segments ..............................................................................................226

Projected Growth of Newspaper and Magazine Publishing - 2009-2013 ......................227

Projected Growth of Print Industry Advertising and Circulation - 2009-2013 ..............227

Ratio of Local to National Advertisements on Radio ..............................................................228

Size of Indian Radio Industry ..........................................................................................................228

Projected Growth of Indian Radio Industry................................................................................229

Size of Indian Music Industry ..........................................................................................................230

Projected Growth of Indian Music Industry - 2009-13 ..........................................................230

Size of Indian Animation Industry..................................................................................................231

Size of Indian Gaming Industry ......................................................................................................232

Contents

Businessworld Marketing Whitebook 2010-201122

Projected Growth of Indian Animation and Gaming Industry 2009-13 ..........................234

Size of Indian Film Industry ..............................................................................................................235

Number of Multiplex Screens ..........................................................................................................236

Composition of Film Revenues........................................................................................................237

Projected Growth of Indian Filmed Entertainment Industry-2009-13..............................238

Projected growth of Indian Internet Advertising Industry-2009-13 ................................240

Projections for Major Sectors in the M & E Industry - 2009-2013 ......................................240

Outlook for the Indian M & E Industry 2009-2013 ..................................................................241

Healthcare and Wellness Services............................................243Average Annual Growth Rate in Healthcare Infrastructure

Expenditure (2009-2013) ......................................................................................................244

Cumulative Expenditure on Healthcare Infrastructure ..........................................................245

Ratio of Forecast Cumulative Expenditure on Healthcare to the Forecast

Average for All States (2009-2013)....................................................................................246

Individual Needs are Influenced by Changing Lifestyle Trends..........................................247

Changes in Needs and Consumption Patterns ..........................................................................248

Expected Double Digit Growth Potential for Most of the Core

Segments and Sub-segments in the Wellness Space ............................................................249

Growth to be Aided by the Large Base of Addressable Retail Consumer Class............250

Non-Compensation Expenses (NCE)* ..........................................................................................251

Growth is Being Augmented by Strategic Alliances across the Value Chain ................252

The Wellness Economy in India ......................................................................................................253

Key Challenges in the Wellness Space .........................................................................................255

Sales of OTC Healthcare by Sector: Value 2008-2013..............................................................257

Sales of OTC Healthcare by Region: Value 2008-2013 ............................................................258

Sales of OTC Healthcare by Region: %Value Growth (2008-2013) ....................................259

Hospitality and Tourism Services ............................................261Indian Hospitality Industry Outlook..............................................................................................261

Market Size and Projections* ..........................................................................................................262

Market Size and Projections of the Restaurant Sector* ........................................................262

Quick Service Restaurants (QSRs) in India ..................................................................................263

Growth of Retail vs Retail and Healthcare ..................................................................................263

Contents

Businessworld Marketing Whitebook 2010-2011 23

Investment Needs ................................................................................................................................264

Incentives at Central and State Level ............................................................................................265

Contribution of the Hospitality Sector to GDP..........................................................................266

Changing Consumer Dynamics and Ease of Finance ............................................................266

FDI Inflow Break-up ............................................................................................................................267

Credit Card Base in 2008....................................................................................................................267

Domestic Tourist Arrivals ..................................................................................................................268

International Tourist Arrivals ............................................................................................................268

Current Supply of Hotel Rooms ......................................................................................................269

Gap in the Number of Hotel Rooms ............................................................................................269

India's Share in the Global Medical Tourism Market (2008)..................................................271

Hospital Market in India (billion US$), 2008 and 2012 ..........................................................271

Forecast for India's Share in the Global Medical Tourism Market ......................................272

Key Operating Characteristics by Major City - Occupancy ..................................................272

Key Operating Characteristics by Major City - Average Rate ..............................................273

Growth of Room Supply - India (1998/99-2013/14) ..............................................................274

Reasons for Eating Out ......................................................................................................................275

Online Market Share by Channel....................................................................................................276

Market Size and Growth ....................................................................................................................276

Online Travel ..........................................................................................................................................276

Growing Internet Users ......................................................................................................................277

Urban vs. Rural Split ............................................................................................................................277

Package Resellers Commission ......................................................................................................277

Online Ticket Booking - From Air to Non-air Segments ........................................................279

Revenues of Major OTAs (March 2008) ........................................................................................280

Global Distribution Systems (GDS) Market Share - India ......................................................280

Barriers to OTA Usage Amongst Non-users of the Category................................................281

Drivers of Brand Equity ......................................................................................................................282

Retail Services ........................................................................283Organized Retail Penetration - Gap Created by Slowdown..................................................283

Year-on-Year Net Sales Growth........................................................................................................284

Operating Profit Margin ....................................................................................................................284

Net Profit Margin ..................................................................................................................................285

Contents

Businessworld Marketing Whitebook 2010-201124

Rentals Eating into Profit Margins of Retailers ..........................................................................288

Classification of Cities and Towns ..................................................................................................289

Buying Power is Concentrated in 8 Tier-1 Cities Today ..........................................................290

KPMG Research on Consumer Markets ........................................................................................291

Retailers will Need to be 'Famous for' Something ..................................................................292

Share of Wallet in India is Shifting from Food to More Discretionary Spending..........293

Fresh Food, Ethnic Apparel and Mobile Electronics will be Key Categories

for Organized Retail ................................................................................................................294

India's Apparel Market is Dominated by Men's Wear ............................................................295

Non-food Categories will Lead the Shift to Organized Retail ..............................................296

Organized Retail Penetration ..........................................................................................................296

Share in Retail ........................................................................................................................................297

Modern Retailing to Touch $170 Billion by 2018......................................................................298

Domestic BPO Services ............................................................299The New Economies of the Indian BPO Industry......................................................................300

Vertical Sector-wise Analysis of Domestic BPOs ......................................................................301

Manpower Employed by Vertical....................................................................................................301

Market Share of Third-party Service Providers ..........................................................................303

Current and Projected Cost Structure of the Domestic Market (% of Revenue) ..........304

Key Industry Metrics............................................................................................................................305

Projected EBITDA Margins for Domestic BPOs ........................................................................306

Domestic BPO Revenues from Telecom ......................................................................................306

Manpower Employed by Telecom BPO ........................................................................................307

Domestic BPO Revenues from Banking ......................................................................................307

Manpower Employed by Banking BPO ........................................................................................308

Insurance Industry Growth by Premiums Collected................................................................308

Domestic BPO Revenue from the Insurance Sector ................................................................309

Manpower Employed by BPOs in the Travel Sector ................................................................309

Domestic BPO Revenue from the Travel Sector ........................................................................310

Projected Domestic BPO Revenue from Customer Care ......................................................310

Projected Domestic BPO Revenue from Sales and Marketing ............................................311

Projected Domestic BPO Revenue from Finance and Accounting ....................................311

Analyst's View: Everything as a Service by Premjeet Sodhi ................................................312

Contents

Businessworld Marketing Whitebook 2010-2011 25

Youth Spends in India

Essay: Emerging Youth Trends by Neerja Wable and Radhika Shapoorjee ....................317

Weekly Spends by Teens ........................................................................................324

Average Weekly Money Received and Money Spent..............................................................325

Division of Money Received Range-wise ....................................................................................325

Amount Spent on Key Categories by Boys ................................................................................326

Amount Spent on Key Categories by Girls..................................................................................327

Cell Phone Usage ....................................................................................................327

Cellphone Ownership (%) ................................................................................................................328

Cellphone Activities in Past 30 Days (Number of Times a Month) ....................................328

Top Cell Phone Brands (%) ................................................................................................................328

Means of Transport..................................................................................................329

Driving License Ownership - Motorcycle ....................................................................................329

Means of Transportation....................................................................................................................329

Eating Habits............................................................................................................330

Views on Fast Food ..............................................................................................................................330

Preferred Food when Eating Out - Zone-wise ..........................................................................331

While Watching the Internet ............................................................................................................332

While Watching the TV ......................................................................................................................332

Online Spending ......................................................................................................332

Online Spending Incidence (%) ......................................................................................................333

Things Purchased Online (%) ..........................................................................................................333

Media and the Youth Market ..................................................................................333

Media-wise Characteristics (%)........................................................................................................334

Incidence of Media Usage - Gender-wise....................................................................................334

Favourite Magazines by Gender (%)..............................................................................................335

Favourite Magazines by Zone (%) ..................................................................................................336

Favourite Magazine Sections (%)....................................................................................................336

Newspaper Readership ..........................................................................................336

Newspaper Readership: Town-wise ..............................................................................................337

Time Spent Reading Newspapers (Traditional vs Online) (%) ............................................337

Sections Most Read in a Newspaper (%) ....................................................................................338

Contents

Businessworld Marketing Whitebook 2010-201126

TV Viewership ..........................................................................................................338

Favourite TV Channels (%) ................................................................................................................339

Favourite TV Show (%) ........................................................................................................................340

Favourite TV Channels Zone-wise (%) ........................................................................................340

Favourite TV Commercials (%) ........................................................................................................341

Entertainment Online ............................................................................................341

Favourite Online Activities (Number of Times a Month) ...................................................... 342

Exercises and Sports................................................................................................342

Kind of Exercise Done (Gender-wise across SEC A and SEC B) ............................................343

Sports Played by them - Gender and Occupation-wise across SECs ..............................343

Outdoor Sports Played ...................................................................................................................... 344

Favourite Sports - Top 5 ....................................................................................................................344

Preferred Ways of Spending Free Time..................................................................345

Preferred Ways of Spending Time ..................................................................................................345

Top 3 hangouts ....................................................................................................................................346

Saving and Investing ..............................................................................................346

Effect on Category Purchase when Money is Tight (%) ........................................................346

Average Monthly Saving....................................................................................................................347

Brand Building ........................................................................................................348

Top 3 Brands (Categorised by Gender, Age,

Socio-economic Class, Town Class)................................................................................................348

Top 5 Brands and Reasons for Choosing Them ........................................................................349

Analyst's View: The ‘Generation Next’ in India by Sanjay Tiwari..........................................350

The Education Market

Essay: Freeing up Education by Bibek Debroy ..........................................................................355

Industry Overview ..................................................................................................363

The Education Industry has been Growing Strongly (USD 50bn) ......................................363

Indian Education System ..................................................................................................................364

Education Market Segmentation....................................................................................................365

Total Education Market -Size and Growth ..................................................................................365

Favourable Demographics is a Key Factor Influencing the Higher

Education Story ........................................................................................................................367

Demographics Data ............................................................................................................................368

Contents

Businessworld Marketing Whitebook 2010-2011 27

Demand Supply ....................................................................................................................................368

Type of Institutions across Schools................................................................................................369

Enrolment by Grade Level ................................................................................................................369

Schooling: Enrolment in Grades 1 to 12 ......................................................................................370

Percentage Break-up of Sectorwise Public Expenditure on Education............................370

Projected Growth ................................................................................................................................371

Aggregate Annual Disposable Income (INR tn) ........................................................................371

Distribution of Income Among the Middle Class ....................................................................372

A Public Private Partnership Model ..............................................................................................373

Higher Education ....................................................................................................373

Higher Education Institutes..............................................................................................................374

Import of Education ............................................................................................................................374

Indian Higher Education Segment ................................................................................................375

The Leaders in this Segment............................................................................................................376

Higher Education and Skill Development: Projected Growth ............................................376

Higher Education Market Size and Growth ................................................................................377

Market Segmentation (Higher Education) ..................................................................................377

Skill Development and Vocational Training................................................................................377

Enrolment in Higher Education ......................................................................................................378

Enrolment Levels Across Countries................................................................................................378

Low Public Spending on Higher Education................................................................................379

Annual Public Expenditure on Higher Education per Student ..........................................379

Lack of Co-operation between Government and Private Sector Entities

has Hampered Public Private Partnerships....................................................................380

Privatization in India has Emerged in Various Forms ..............................................................381

Distribution of Population Opting for Higher Education ......................................................381

Revenue Generation by Private Players ......................................................................................382

India Lacks Large Players in the Higher Education Market ..................................................382

India: One of the most Promising Global Destinations for Higher Education ..............383

Introduction of an Independent National Commission for Higher Education

and Research (NCHER) as the Apex Body in Education ............................................384

Vocational Education ..............................................................................................384

Break-up of Vocational Education by Market Segment ........................................................385

Student Intake Restrictions in First Year of Operations..........................................................386

Contents

Businessworld Marketing Whitebook 2010-201128

Share of Labour Force Receiving Vocational Training ............................................................386

Student Intake Restrictions in First Year of Operation ..........................................................387

Norms for Subsequent Years of Operation ................................................................................387

The E-learning Market in India ..............................................................................386

E-learning Market in India (2008-2012e) ....................................................................................387

Online Education ..................................................................................................................................388

Multimedia and ICT in Schools........................................................................................................388

Low Penetration in Schools and Government Initiatives to Promote

Computer Education Driving the E-learning Market ................................................388

Government Spends on Sarva Siksha Abhiyan ........................................................................389

Analyst's View: Educating India by Sangeeta Goyal ..............................................................390

Telecom in India

Essay: A Global Telecom Market by Prashant Singhal ............................................................395

Access Services ........................................................................................................399

Subscriber Base and Teledensity - Rural and Urban................................................................399

Market Share - Rural and Urban......................................................................................................400

Composition of Access Subscription - Wireline and Wireless ............................................400

Gross Revenue (GR), Adjusted Gross Revenue (AGR), License Fee (LF)

and Spectrum Charges..........................................................................................................401

Access Services - Service Provider-wise Gross Revenue ........................................................401

Category-wise Growth Rate in Access Services ........................................................................402

Category-wise Share in Access Revenue ....................................................................................402

Wireline Services ....................................................................................................402

Wireline Subscriber Base and Teledensity - Rural and Urban ..............................................402

Wireline Market Share - Rural and Urban ....................................................................................403

Number of (PCOs) ................................................................................................................................403

Growth in Wireline Subscribers ......................................................................................................403

Growth in Village Public ....................................................................................................................404

Telephones (VPTs) ................................................................................................................................404

Wireless Services ....................................................................................................404

Wireless on a Roll..................................................................................................................................404

Projected Circle-wise Wireless Subscribers (in millions) ........................................................405

Growth in Wireless Subscribers ......................................................................................................406

Contents

Businessworld Marketing Whitebook 2010-2011 29

Wireless Subscriber Base and Teledensity ..................................................................................406

Wireless Service: Service Provider-wise Net Additions during the Month......................406

Wireless Market Share - Rural and Urban ....................................................................................407

Rural Subscribers and Market Share..............................................................................................407

Wireless Subscription: GSM vs. CDMA ..........................................................................................408

Wireless Operators Market Share (March 2009)........................................................................408

Internet/Broadband Services ................................................................................408

Penetration of Broadband in Homes and Enterprises ............................................................409

Growth in Internet Users....................................................................................................................410

Trend in Growth of ‘Regular’ Urban Internet Users ..................................................................410

Years of Experience in Using Internet ..........................................................................................411

Growth in ‘Daily’ Internet Users ......................................................................................................412

Current Landscape of Internet Users in India ............................................................................412

Penetration Levels of Internet Users in India ............................................................................413

Ownership of Popular Assets Among Online Indians at the Household level ..............414

Top 10 Most Popular Online Brands (Most Used Websites)..................................................415

Broadband Access -Technologies and Market Share ..............................................................416

Internet Subscriber Base and Market Share of Top 10 ISPs ..................................................417

Wireless Internet Use on the Rise ..................................................................................................418

Broadband Growth to Pick up in India ........................................................................................418

Broadband Connections in 2014 ....................................................................................................419

Expected Number of Users by 2014..............................................................................................419

Broadband Roadmap for Inclusive Growth, 2009-2014 ........................................................420

Mobile Value-Added Services ................................................................................420

All India Mobile Subscriber Base ....................................................................................................420

Market Segmentation ........................................................................................................................421

MVAS Market Size and Growth........................................................................................................421

Mobile Advertising Market ..............................................................................................................422

Rural Mobile Subscribers ..................................................................................................................422

Mobile Teledensity ..............................................................................................................................422

Mobile Music Market ..........................................................................................................................423

Mobile Gaming Market ......................................................................................................................423

Forecast for Number of 3G Mobile Subscribers (million units), 2009-2012....................424

Contents

Businessworld Marketing Whitebook 2010-201130

Forecast for 3G-enabled Handset Sales (million units), 2009-2012 ..................................424

Average Revenue Per User (ARPUs) and Minutes of Usage (MOU) to Stabilise ............425

Socio-economic Characteristics that Enable Mobile Banking ............................................426

Key Drivers for Adoption of 3G and WinMax in India ............................................................426

The Telecom Tower Industry ..................................................................................427

Tower Requirement Estimates ........................................................................................................427

Majority of Telecom Operators are Using Shared Telecom Infrastructure ......................428

Major Tower Companies in India ....................................................................................................429

Growth in Subscribers(%)..................................................................................................................429

Analyst’s View: Telecom : Where is the Growth Going to Come From?

by Anjan Ghosh ........................................................................................................................430

Time Spent by Salesmen/Clerks on the Print Media............................................................... 432