emerging opportunities for indian entrepreneurs

8/7/2019 EMERGING OPPORTUNITIES FOR INDIAN ENTREPRENEURS

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EMERGING OPPORTUNITIES FOR INDIAN ENTREPRENEURS

It is high time out entrepreneurs realize the importance of being choosy in project identification.Till recently, we in India kept on exploring the possibilities of manufacturing almost everything,right from pins to planes and screws to sub-marines. Just as companies and individuals carry out

SWOT analysis for identifying business opportunities for our entrepreneurs. The completingdemands for our limited and meager resources are many and unless we apply a degree of selectivity in our approach in resource allocation, we will continue to be a nation of foundationstones. Given below are a few areas where we can think of concentrating more.

Tourism and Hospitality

India is a country of many countries. Our diverse culture, religions, languages, rich heritage andvast geographical area make the country a place of tourist attraction. Hills and beaches, templesand palaces, the deserts and the jungles are all these. There are not many countries in the worldwhere you can surf the sand and the sea. Privatization of airports and aviation sector could

further give boost to tourism industry. Tourism should therefore receive topmost priority.

Auto Ancillaries

India may not be the best car-manufacturing base, but we can certainly be the best ancillaries tothe automobile industry world over. Our entrepreneurs are capable to developing global scaleauto ancillaries. By all means, we should also continue car manufacturing, but we must do it at ascale and quality at which the world community takes us seriously.

Two Wheelers

As a nation we have excelled in production of two wheelers – be they cycles, scooters or motorcycles. We have the technology, the skills, and most of all, the critical mass to affect abreakthrough. We should aim at capturing the world’s two-wheelers markets.

Garments

India has the potential of becoming a leading supplier of garments, apparels, silk, hosiery andtextiles. Indian textiles are well known world over. Our Ludhiana and Tirupur entrepreneurshave done proud to the country in the area of woolen and cotton industry. By understandingcustomer needs through extensive and systematic market research we can capture more marketsworld over.

Software

India has already made a strong dent in world’s software market. For us the most natural thing isto be number one software and consultancy services suppliers. Our country has the rightresources in the form of vast population of educated youth. Other developed and developingcountries with vast resources can perhaps continue making advances in manufacturing of

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computers, computer hardware and computer chips year after year. Software exports from Indiaare growing more than 50 per cent per annum.

Light and Medium Engineering Industry

Many countries of the world are far ahead of India in manufacturing aircraft, ship and productsof similar nature. Unfortunately, we in India try to manufacture everything and finally end updoing nothing well. Our strength lies in the light and medium engineering industry. We are in aposition to provide a leading edge in this industry. India also has the capability of becomingworld’s best foundry products maker. We should concentrate more areas where we have an edgerather than thinly spreading our limited resources and expertize in areas like manufacture of aircraft and flexible machine systems.

Trading/Supplies

Among India’s vast population there are communities like Marwaris, Punjabis, Gujaratis,

Tamilians, etc., with acumen for trading and acting as suppliers. It is, therefore, logical on part of such communities to become global players in trading and operate at international levels. Bydoing so we will be doing something that we are good at.

Education and Training

India has some of the world’s best universities and educational institutes, i.e., JNU, IIMS, IITS,IISc, etc. The cost of education and training in India is nominal in comparison to developedcountries. There is vast reservoir of talented people in the country. By pooling resources andnetworking with resource organizations we can create education and training facilities not onlyfor Indians but also for scholars from abroad. Indian educational institutions, both government

and privately managed, have the capacity and expertise to offer affordable education to personsfrom other countries.

Poultry

India holds lot of potential for developing its poultry and poultry – based industries. A vastpopulation and export potential make this industry a lucrative activity for those who want to bein poultry allied industry.

Food Processing

India has emerged as one of the topmost food producing countries in the world. Indian climate issuitable for growing vast varieties of food grain. At present, most of the food grain is sold in rawform. In food habits the world over is undergoing change. As a matter of convenience, people,especially youngsters, prefer fast food or ready to eat food. Indian food is well known worldover. We need to exploit this potential by processing our food grains. Processed food will havegood market in India as well as abroad. Food processing would also help us earn must-neededforeign exchange.



Fruit and Vegetable Processing

Fruit and vegetables are grown in plenty in India. The country has emerged as a leading producer of fruit and vegetables. Because of poor transportation facilities, inefficient infrastructure,bumper crops and lack of marketing facilities, many a time, lots of vegetables and fruit simply go

waste. We need to create fruit and vegetable processing facilities all over the country so as toharness the potential for their production. Fruit and vegetable processing offers potential for highvalue addition and potential entrepreneurs can earn a lot from such products. By processing of fruit and vegetables, our producers will get proper price for their products, entrepreneurs willhave good business opportunities, masses will get employment and export of processed fruit andvegetables will increase. While processing fruit and vegetables, our entrepreneurs need to takeall possible care so as to ensure quality and standard of their products.

Manufacture of Business Attires

Manufacture of business attires, especially for Indian women, is going to be a rewarding business

in days to come. Women’s participation in white-collar jobs is on the increase. With the influx of multinational companies in India, workplace outlook and environment are improving. Wellmanaged companies, whether MNCs or of Indian origin, expect their employees to look smartand dress well. Some of the organizations also prescribe a dress code. Increasing presence of women in various workplaces has given a boost to business attire market. Till recently, businessattires, especially for women used to originate from developed countries and women used to payhefty price for such dresses. The growing business attire market offers good businessopportunities in this sector. Our potential entrepreneurs can think of getting into this businessboth for Indian and overseas clients.

Corporate Gifting

Corporate gifting has picked up in India in the recent years. Indian companies and businessorganizations spend crores of rupees on giving gifts to their employees, shareholders andbusiness associates on occasions like Diwali, New Year and Annual General Meetings. As per rough estimates, corporate India spends approximately Rs.1000 crore every year on corporategifting and the culture is on the rise. Potential entrepreneurs, especially those good in publicrelations, can easily get into such business. Other associated businesses in this line could bemanufacture of greeting cards (Diwali, New Year, Christmas, Valentine day, Birthday, etc.) for various occasions.

Herbal Medicines and Skincare Products

India has the distinction of growing vast variety of herbs. Indian population of more than abillion ensures a sufficiently large market for herbal medicines and skincare products. People,world over, in general and in developed countries, in particular, are becoming increasingly awareof after-effects of allopathic medicines and synthetic skincare products. Women, in particular,are slowly switching over from synthetic skincare products to herbal-based products. India hasan established tradition of growing and using variety of herbs. We need to go in for commercialization of herbal-based medicines and skincare products in a big way.



Mineral Water

Even though mineral water manufacturing was started in India during the 1960s, but the marketdid not pick up till 1985. During late 1980s and 1990s mineral water market in India increasedby an impressive rate of 30-40 per cent annum. Market for mineral water in India is spreading

very fast. People are becoming health conscious. We are going to enter in an era when potablebottled water would find place in almost all general stores and it will become an unavoidableexpenditure for people at large. Statistics reveal that size of Indian Mineral water market during1999 was of the order of approximately Rs.800 crore. Many small-scale entrepreneurs can findbusiness opportunities in this fast growing market.

Paints, Enamels and Varnishes

India is presently experiencing an automobile revolution. Standard of living of the sizeableIndian middle class is also improving at a rapid pace. Both these trends indicate an increasingmarket for paints, enamels and varnishing. Industrial and household use of these products is quite

promising and much better than many other products. Manufacture of these products in small-scale sector should therefore need to be considered as a viable business proposition.

Organic Farming

The concept of organic farming is of very recent origin in India, Many developed countries growfood organically. Health conscious persons prefer organically grown food. In India also, peopleare becoming increasingly health conscious. They are well aware of after effects of food andvegetables, which are grown by making excessive use of chemical fertilizers, pesticides andinsecticides. Some companies and individual farmers have started organic farming in India. Toensure better health for our people we need to promote organic farming in a big way. Our

potential entrepreneurs with interest in agricultural related activities would perhaps find goodbusiness opportunities in this area.

Music and Entertainment

Music and entertainment are required the world over. With a large number of channels inoperation and a revolution in satellite technology the music and entertainment industry hasthrown open numerous opportunities. Potential entrepreneurs should grab opportunities in thefast developing music and entertainment industry.

Writing Instruments

Literacy rate in India is slowly improving. Some of the conventional writing and learningmaterials are fast becoming obsolete. Also because of economies of scale and cheap labor availability, we as a nation are in a position to manufacture writing instruments at affordableprices. Now with access to better technologies and huge Indian and overseas markets, our entrepreneurs have an opportunity to exploit this market.

Plastics



Per capita consumption of plastics in India is hardly 2-5 per cent of per capita consumption indeveloped countries like the US. Use of plastics in India, both in Industries and households, isgoing to pick up in coming years. In spite of ill effects of use of plastics, it is rather impossible tomanage without it. The Indian plastic market is presently experiencing a growth rate of morethan 10 per cent per annum. It provides scope for setting up small-scale plastic processing

enterprises for manufacture of variety of plastic products.

Toys

Toy manufacturing (especially stuffed toys) is a low technology based less capital intensive andhighly labor intensive industry. Superstores abroad usually source toys from China, Korea andHong Kong. Consumption of toys in India and abroad is increasing. In India, the toy marketgrew 10-12 per cent per annum during the late 1990s. It is estimated to touch an annual growthrate of 15 per cent soon. India has potential to manufacture cost effective toys largely for Indianmarket and also for world toy market. If China and Korea can do it why cannot we? Our entrepreneurs need to consider toy manufacturing as a rewarding business.

Floriculture

Indian flowers are becoming increasingly popular in the world market. Flower market, especiallyexports, is becoming favorable to Indian florists. Improvements in infrastructure and transportfacilities would further brighten the prospects of Indian flowers abroad. At the same time, floristsneed to concentrate on domestic flower market as well.

Health-care Sector

India’s population to hospital bed ratio is a very poor compared to World Health Organization’s

standards. (India’s population to hospital bed ratio is 1300: 1 against the WHO recommendedratio of 250: 1). With the funds receding in government kitty, private sector will be required toplay major role in the health-care sector. Health-care, both in corporatized sector (Organizedsector) and also in informal sector, has potential for high growth in India.

Biotechnology

It is believed that early twenty-first century will belong to biotechnology and software in India.In India biotechnology has just started picking up. Application of biotechnology especially in theareas of agriculture, horticulture, sericulture, poultry, dairy and production of fruit andvegetables will pay an important role in future. We should go for commercial application of

biotechnology in various sectors of economy wherever it is found feasible. Biotechnology wouldtherefore throw open many opportunities for entrepreneurs in future.

Information Technology (IT) Enabled Services

Business to Business Portal Solution (B2BPS) Services would be needed in a big way to addressthe emerging needs of IT enabled services sector. IT enabled services is a US$ 180 billionbusiness. The sector includes services like GIS digitization, medical and legal transcription,



medical billion, and insurance claim processing and archival and indexing of records. All these,and many more services, could be provided by Indian entrepreneurs. The pool of smaller serviceproviders from India can meet the needs of outsourcing from US, and other developed countries.

The InfoTech industry is the fastest growing sector in India. Indian IT industry is of the size of

US $5 billion at present and it is slated to grow to 20 times its current size of $100 billion by2010. Prof. Michael Dertouzos, Director, Computer Science Laboratory at MIT (USA), visitedIndia in February 2000 in connection with IT Asia 2000 conference. He was highly impressed bynumber of English literate people in India and spread of IT enabled services. He said that Indiacan funnel a majority of new $3 trillion business opportunity being generated in the area of IT-enabled services – outsourcing basic white collar office work – by harnessing its 50 millionEnglish literate populations. Mr. Dertouzos feels that after call centres and medical transcription,a new business opportunity of outsourcing office work – accounting, legal, finance, marketing,claim forms – to developing countries is gaining popularity and Indian stands a good chance,right away, to grab a major share of this business. “Office work is estimated to be around $3trillion annually and can fetch a decent $20,000 per annum to individuals in this business.

Education Portals

Application of information technology to education sector has started revolutionizing the processof education in the country. MNCs and Indian Internet companies have started setting upeducation portals in the country. In days to come professional education like management,medicines, engineering, law etc., would be taught by making extensive use of internet. Under thenew innovative and emerging concept students would study and learn educational courses both atschool and college level online, i.e., through internet. Some companies have already set up their web-sites, which offer various courses for school level students. IT-friendly potentialentrepreneurs can look forward to getting franchise of major players in providing IT based

educational courses.

Organized Retailing

As per industry estimates, total consumer spending in India is of the order of Rs.3, 80,000 crore.Current volume of organized retailing in India is about Rs.5, 000 crore. The organized retailindustry business in India is expected to grow between 50-60 per cent each year during the nextfew years. Organized retail industry is likely to achieve sales volume of Rs.30,000 crore by 2005and would move into smaller cities in India, given that there is beginning to be some comb lanceof competition among organized retailers in the big cities. Retailing as a business, till recently,was confined to small-scale shopkeepers but now even large business houses have startedconsidering it a potential opportunity. Venture capital and bank finance is also now available for prospective retailers. Experts in retail industry feel that retail business is truly globalization, andcommon patterns are emerging. Electronic retailing is yet another emerging area. Electronicretailing is happening more in business to business space than in the business to consumer space.

Processing, Refrigeration and Transportation of Food, Vegetables and Fruits



India has long suffered the lack of a comprehensive cold chain. A large Purdon of agriculturaland other products produced in the country perish due to the lack of a serviceable refrigeratedstorage and distribution network. A detailed study conducted by the government on theagricultural and food industry has revealed that one-third of the products are ruined due to thelack of adequate storage and preservation facilities. Meat, poultry, fresh produce and dairy can

only be distributed within limited geography and need to be consumed in a short period. Also,sensitive medical requisition like vaccine and pharmaceuticals are suffering due to the lack of refrigerated distribution. This state of affairs needs to be changed. Food and other preciousresources in our country must be preserved at all costs. The refrigeration industry would berequired to come through providing a wide range of industrial and commercial refrigerationservices that can serve the entire gamut of cold storage and refrigerated transport to retail displayand preservation units.

Cruising Business

The cruising business is gradually picking up in India. The Rich and the Famous has led to

immense popularity of cruises in last four years (1996-1999) with numbers increasing to 15,000in 1999 from practically zero in 1996. The business of cruising represents enjoying the luxury of dining in fine restaurants, casinos, excursions to golden beaches and exotic islands. Theperception of Indians about cruising business is changing. People no more consider cruising asmeant for elderly and retirees alone. The concept of a cruise holiday is becoming immenselypopular in India. The number of Indians holidaying on cruising trips in increasing due toenhanced awareness through better marketing and advertising by our operators, fatter paypackets, and a growing tendency to splurge.

To site an example of what kind of services cruises offer, Mr. Gautam Chadha, Chief ExecutiveOfficer of Discover the World Marketing (this company owns two famous cruise lines, Royal

Caribbean Cruises and Celebrity Cruises) said P “You will never, ever be bored. You simply finda corner on ship’s library, relax in a deck chair or lounge on private veranda. For fun lovingpeople, ships organize various activities such as flower arrangements, art auctions, cabarets,casino – Las Vegas style, guest singers, live bands, and the like”. He expects a growth rate of 25-30 per cent per annum in cruising business. At present, India does not represent even a fractionof the total world market for cruises. There are more than four million passengers onboardvarious cruise lines worldwide every year, he added. Recently developments in cruising businessclearly indicate good opportunities in this sector.

Courier Services

E-commerce related business is poised for exponential growth in the early 21st century.Expansion of E-commerce in India and world over has given a boost to courier business. Recentincrease in share prices of leading courier companies (1400 per cent increase in share price of Elbee Services in just six months and 400 per cent increase in share price of Blue Dart) is a clear indication of growth potential of courier related businesses. The logic is very simple. The serviceindustry is expected to grow in leaps and bounds in the near future for the simple reason thatphysical delivery of goods will be primarily handled by courier services companies. Corporate inNet business will not be in a position to support a massive network of distribution, whose job in



future will be reduced to just delivering the goods manufactured from the manufacturer’sdoorsteps to the consumers. Besides maintaining a large network of distributors is expensivewhen even the big wigs in the industry are cutting costs. Due to these difficulties courier companies with an elaborate network would have enough business to transact. Their network isgoing to be particularly beneficial to Fast Moving Consumer Goods (FMCG) companies who, at

present, depend on a network of sales persons to make their product reach the retail levels. If recent trends serve any indication, courier services, both in organized and unorganized sectorsensure a promising future.

Summer Solution Related Business Opportunities

Summer and power cuts are synonymous in India. Gone are the days when standby solutions topower cuts in the form of ‘Hat and Pankha’, ‘Khas ki Chik’, ‘Surahi’, etc. used to be kept handy.With the advent of technology solutions to frequent power cuts are immense. And for the timeswhen power is regular life can be bliss with a variety of cooling devices in the form of high techair conditioner and coolers. With latest state of the art technology being imbibed in these

gadgets, healthy air and healthy food are a de rigueur in today’s AC and refrigerators. Silentinvertors and one-pull generators are another lot becoming an essential buys for almost everyhousehold. Depending on the demand a variety of invertors and generators can be manufacturedby small-scale entrepreneurs. Servo voltage stabilizers online UPS, line interactive UPS,automatic voltage stabilizers, constant voltage transformers, manual voltage regulators, isolationtransformers, high voltage regulators, high voltage break down testers, electronic air conditioner protectors, spike suppressors and busters are the other products related to summer solutionswhich can easily be manufactured in small scale units.

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emerging opportunities for indian entrepreneurs

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