raman pbc kamalmeattle 11sep. 2011 9782900600

8/3/2019 Raman PBC KamalMeattle 11Sep. 2011 9782900600

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FASTEST GROWING

FREE MARKET DEMOCRACYIN A GLOBAL ECONOMY

INDIAN

Presentation by:Raman kumar jha Jaipur Rajasthan, India

[email protected]/yahoo.in


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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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THE INDIA STORY


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1947 : Year of Indian Independence

Todays India is one of the fastest growing Democratic Market Economy,well on its way to be integrated with the world economy

The famous Goldman Sachs report ( Dreaming with BRICs: The Path to2050 ) states that, among Brazil, Russia, India and China, India will growthe fastest over the next 30 to 50 years by leveraging its demographicadvantages and through continued development

Indias GDP will exceed Italys in 2016, Frances in 2019, Germanys in 2023and Japans in 2032

INDIA TO BECOME THE 3RD LARGEST ECONOMY IN THE WORLD BY 2032

ANDTHE STORY BEGAN IN 1947


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Planned Industrial Development

Industry Licensing and Quotas

Dominance of Public Sector

Restriction on Private Investment

Socialism

Mixed Economy

India Pre - Liberalization


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Liberalization ofIndustrial 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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MRTP Liberalization

Abolition of threshold assets limit

No MRTP clearance needed forexpansions, mergers

Curtailment of PublicSector

Several industries hitherto reservedfor public sector opened up to privatesector

Only eight core industries remainreserved for the public sector

Purview of Board for Industrial andFinancial Reconstruction (BIFR)

extended to Public sector

The New Industrial Policy for liberalization - 1991


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Governments role changed to Regulator from Licensor

All Licenses Rationalized

Active participation of private sector

FDI being Welcomed (100%) - Automatic Route

Barriers Dismantled & Procedures Simplified

Indian Industries Actively Investing Abroad

Bureaucracy - Less Government is Good Governance

Allowing Market Forces to Govern the Efficient Allocation ofResources with Minimum State Intervention

Reducing and rationalising foreign trade barriers

India Liberalization Stage - Strategies Developed


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India - One of the fastest growing economies in the world

Average GDP growth (1995 -2005) : 6.2 % per annum

Average annual growth (1995 - 2005)

Agriculture & Allied : + 2.1 % per annum

Industry : + 6.6 % per annum

Services : + 7.8 % per annum

Average Per Capita Income growth (1995 - 2005): 3.8 % per annum

Inflation down to a single digit level continuously for the last ten years

Foreign exchange reserves increased from US $ 2 b (March 1991)

to US $ 145 b (September 2005)

Merchandise Exports : +20 % average rate of growth in last three years

Booming Services Exports from US $ 4.6 b in 1990-91 to US $ 51.3 b in2004-05

Economic Scenario : Post Liberalisation


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Balance of Payments surplus (US $ 26 b in 2004 - 05)

External Debt Service Ratio down from 26.2 % in 1995 to 6.2 % in 2005

Foreign Direct Investment (FDI) : Average +US $ 5 b pa in the lastfive years.

Foreign Portfolio Investment : US $

11.4 b in 2003-04 andUS $ 8.9 b in 2004-05

Reforms continuing and have unleashed dynamic forces putting the economy on a trajectory of unparalleled economicgrowth in the future

The Indian Government is working in close co-operation withindustry and trade to mitigate the remaining problems andconstraints

Broad consensus across the political spectrum on the need forand direction of the reforms. Some issues still need to be resolved

Economic Scenario : Post Liberalization


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28.023.8 20.5

27.2

40.6 43.948.9

52.4

32.2 28.127.2 27.1

0

10

20

30

40

50

60

1990-91 1995-96 2000-01 2004-05

Agriculture Industry Services

Share Of Services Sector In GDP On The Rise (%)


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India

the worlds most irrigated land mass

worlds 2nd largest exporter of rice & 5th largest exporter of wheat

Food production: Indias Ranking in the World

1st Tea, Milk

2nd Rice, wheat, sugar

Agriculture


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Rate of growth

2003-04 7 %

2004-05 9.2 %

Diversified base of world class capabilities

State-of-the-art technologies

TQM,TPM, Six Sigma & Lean Manufacturing - part of

everyday practice

Diversified industrial base with supporting ancillary industries

Overseas acquisitions worth US$ 500 m

Manufacturing


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Consistent growth

2003-04 9.1 %

2004-05 8.9 %

Sectors Driving Growth

- ITES

- Healthcare

- Financial Services

- Education

Source:Economic survey, 2004 - 05

Services


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Average GDP Growth (1990-2001)

9.4

6.25.5

4.9 4.7

3.32.9 2.9

2.0

1.5

2.5

3.5

4.5

5.56.5

7.5

8.5

9.5

China

S.Korea

India

Thailand

Indonesia

Mexico

Philippines

USA

Brazil

Growth(%

)

Source: WDI, World Bank, 2003

Average GDP growth - India & the World


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Share of external trade in GDP

18.123.1 25.5

26.930.3 28.9 31.6 32

0

1 0

2 0

3 0

4 0

1 9 9 1 - 9 2 1 9 9 4 - 9 5 1 9 9 7 - 9 8 1 9 9 9 -

2 0 0 0

2 0 0 0 - 0 1 2 0 0 1 - 0 2 2 0 0 2 - 0 3 2 0 0 3 - 0 4

Rising share of Indias external trade in GDP

Target :To double share of exports from 0.7 % to 1.5 % of world trade


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Land Area: 3.29 m sq. km.

Population: 1.09 b

GDP: US $ 630 b

Real GDP Growth: 6.9 %

Gross Domestic Savings: 28.1 % (2003 - 04)

Gross Domestic Investment: 26.3% (2003 - 04)

Per Capita Income: US $ 580

Inflation Rate: 6.4 %

Macro Economic Indicators (2004 - 05)


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Exchange Rate: US $ 1 = 43.75

Merchandise Exports: US $ 80b

Merchandise Imports: US $ 106b

Services Exports: US $ 51b

Foreign Direct Investment: US $ 5.5b

Foreign Portfolio Investment: US $ 8.9b

Direct Investment Abroad: US $ 1.5b

Macro Economic Indicators (2004-05)


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INDIAN SUCCESS STORIES


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Number of foreign firms acquired 120by Indian companies during2001 - 03

Total worth US $ 1.6 b

India - 8th largest investor in the UK

No of investments 440

No of Indian companies with 1,441operations in Singapore

Indian MNCs - On a global buying spree


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Hero Honda - Largest producer of motorbikes in the world

Moser Baer - Worlds 3rd largest producer of optical media

Hero Cycles - Worlds largest bicycle producer

Bharat Forge - Amongst the worlds top 3 forgings manufacturers

UB Group - Worlds 2nd largest producer of alcoholic beverages

Paharpur Cooling Towers - Worlds 2nd largest manufacturer of

Cooling Towers

India Leading The World


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India Leading The World

Apollo Hospitals - Single largest hospital chain in South Asia

TISCO - worlds cheapest producer of steel

Reliance Industries - Worlds largest producer of PTA, a chemical

used in textile production

Mahindra & Mahindra - Amongst top 3 tractor manufacturers in the

world

Telco - Amongst top 3 truck manufacturers in the world

Welspun - Worlds largest producer of terry-towels

Gujarat Ambuja - Amongst top 5 cement producers in the world


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Some Indian Examples Benchmarked with theBest In The World


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Success Story of RELIANCE

The Reliance Group founded in1

932, is India's largest business house withtotal 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, refiningand marketing, petrochemicals, textiles, financial services, insurance, power,telecom and infocom initiatives

The Group exports its products to more than 100 countries the world over

Reliance Group revenue is equivalent to about 3.5 % of India's GDP

The Group contributes nearly 10 % of the country's indirect tax revenues andover 6% of India's exports

Today, the Reliance Group has one of the largest family of shareholders in theworld


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Success Story of WIPRO

Wipro was set up in the backdrop of the small town of Amalner inMaharashtra in 1945

An SME and primarily an oil factory, the chief products wereSunflower Vanaspati and 787 laundry soap

It was in the early eighties that Wipro made its foray into the Infotecharena

With this began the Wipro Infotech story

Today, Wipro stands at the firmament, as a trusted and experiencedprovider of a comprehensive range of IT services, solutions andproducts, worldwide


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Success Story of BHARTI

Bharti Enterprises has successfully focused its strategy on telecomwhile straddling diverse fields of business

It all began as a Small Industry

Bharti Tele-Ventures is today acknowledged as one of India's finestcompanies, and its flagship brand 'Airtel', has over12 million customersacross India

Recently, Bharti has successfully launched an international venture with

EL Rothschild Group owned ELRO Holdings India Ltd., to export freshAgri- products exclusively to markets in Europe and USA


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Success Story of DR.REDDYS

Dr.Reddys Laboratories was founded in 1984, with a capital of US $40,000 in cash andUS $120,000 in bank loan

In fact, it is this spirit of entrepreneurship that has shaped the company to becomewhat it is today

Today, the company with revenues of US $446 m, in fiscal year 2005, is Indias second

largest pharmaceutical company and the youngest among its peer group

Dr. Reddys started its drug discovery programme in 1993 and within three years itachieved its first breakthrough by out licensing an anti-diabetes molecule to NovoNordisk in March 1997

With this very small but significant step, the Indian industry went through a paradigm

shift in its image from being known as just copycats to innovators!

Through its success, Dr. Reddys pioneered drug discovery in India

Today, the company manufactures and markets API (Bulk Actives), Finished Dosagesand Biologics in over100 countries worldwide, in addition to having a very promisingDrug Discovery Pipeline


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Success Story of BIOCON

Biocon is India's leading biotechnology enterprise

Over the past 25 years, they have evolved from an small enzyme manufacturingcompany to a fully integrated biopharmaceutical enterprise, focused on healthcare

At Biocon, success has been their ability to develop innovative technologies andproducts and to rapidly leverage them to adjacent domains

This unique "integrated innovation" approach has yielded a host of patentedproducts and technologies that have enabled multi-level relationships with theirglobal clientele

As India's first and leading biotechnology company, Biocon extends its support tonumerous community outreach and corporate citizenship initiatives with specialconcentration in the areas of healthcare, education and environment

The Biocon Foundation, set up in 2004 has recently launched Arogya RakshaYojana, a unique health initiative for rural India


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Success Story of Paharpur Cooling Towers

In its over four decades of existence, Paharpur has come to be acknowledged as thepioneer in the Indian cooling tower industry

It all began as a small industry with a capital of US $ 11,000

At today's selling prices, Paharpur has sold cooling towers valued at over US$ 1 b

If these cooling towers were all working together, they would be able to cool more than 265million liters of water every minute or 382 b liters in 24 hours

The Paharpur team consists of highly qualified engineers & professionals with over1,000man years of experience in the field of cooling tower application engineering, designing,

erection and trouble shooting

Paharpur has pioneered several improvements in cooling tower design and operation andhas emerged as one of the largest cooling tower manufacturers in the world, with exportsto more than 40 countries


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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 oilmajors in Delhi, Kolkata, Chennai and Mumbai

Patents in most countries of the World


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Success Story of Paharpur Business Centre &Software Technology Incubator Park

Began operations in 1990 in New Delhi, with an equity capital of Less thanUS $ 15,000

Current net worth of US $ 10 m

Provides a suite of 28 services, employing 450 persons

Has Fortune 500 companies, MNC's and corporate, as clients

Has five international certifications, ISO 9001, ISO 14001, SA 8000, OHSAS18001 and HACCP

Commitment to UN Global Compact


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Publishes its annual Sustainability Report following the GRI system

Reports its triple bottom line - relating to profit, environment andsustainability

Now providing technical support to setting up of a 1.7 m ft2 Software Parknear Delhi that has been given the SEZ status by the GOI The Haryana Technology Park

Company showcased by CII at the World Summit on Sustainable

Development in Johannesburg in 2002 for its sustainability initiatives

Its USP is the Clean Indoor Air in its Center in Delhi - Certified MountainQuality Air using biotechnology developed by NASA, USA to clean air

Success Story of Paharpur Business Centre &Software Technology Incubator Park


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INTERNATIONAL SUCCESS STORIES


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1,858

1,1051,054

965

548393

263172

36 2217 8 7

0

200

400

600800

1,000

1,200

1,400

1,600

1,8002,000

1

Japan

India

South Korea

Singapore

Australia

China

Hong Kong

Taiwan

Malaysia

Sri Lanka

New Zealand

Philippines

India attracts second highest privateequity investment in Asia

Total equity flow to India between 1999 and 2004 doubled

from US $ 5.12 b to US $ 11.50 b

Preferred Destination For Foreign Equity Investors

Source: NASSCOM


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MNCs leveraging the India Advantage


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*

FDI INFLOWS TO INDIA

4029

6125

50364674

5526

0

1000

2000

3000

4000

5000

6000

7000

2000-01 2001-02 2002-03 2003-04 2004-05

FDI Inflows ($ million)


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More than 100 global companies outsource R&D facilities from India

GE John F Welch Technology Centre Companys largest research outfit outside the USA

GE Medical Systems India as sole sourcing base for its portable ultrasound scanner

Monsanto First non-US research facility

Eli Lilly largest research facility inAsia and 3rd largest in the world

Texas Instruments Digital Signal Processor developed in India controls 50% of the worldmarket

AVL, Austria India as base to do R&D for the companys Japan centre

International Brands Utilizing The IndianKnowledge Base


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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 Companiesin India


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Daimler Benz

Decentralized research was quite essential Achievement of local representation to assess market

specified interests

Why India?

Great resources of highly qualified scientists as staff Availability of human capital with low labor costs

Internationality:English language and understanding ofEuropean culture(due to British history, existence of numerous institutions,administrations, school etc)

Economic Policy

Case Study of Selected German Companiesin India


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Quite simply, I was blown away by what I

saw on my first trip to India

Stephen Roach, Managing Director &

Global Chief Economist, Morgan

Stanley 2004

India's highly educated workforce,

management talent, rule of law,

transparency, cultural affinity and regulator

environment are more favorable than

China's.

A T Kearney, FDI Index 2004

"We want to bring to the world various

facets of this extraordinary country, its

people and progress"

Chris Cramer, International Managing

Director, 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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INDIA ADVANTAGE


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Trained manpowerand knowledge base

Rich biodiversity

Extensive clinical trialopportunities

Excellent networkof research laboratories

Well-developedbase industries

Pro active

policy framework

Proficiency in

English

Low manpowercosts

The India Advantage


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Working

age

population

to rise

to 65%

Urban

population

to rise

to 40%

30-40 mn

people

joining

middleclass

every

year

By 2020

Demographics: A strong demand driver


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Source: IMD Competitiveness Yearbook 2003Source: UN, Morgan Stanley

ISO:9001:2000

Partnership Driver - Skilled Manpower

Global Growth in W orking-Age

Population (15~64) Over the NextSix Years (Mln)

375

83

73

56

41

38

20

13

0.04

-3

Availability of Skilled

Manpower, 2003

7.4

7.3

7.2

7.1

7.1

7.0

6.6

5.7

5.3

4.3

Availability of QualifiedEngineers, 2003

10 = High

1 = Low

8.9

7.9

7.3

6.9

6.4

5.8

3.9

6.7

6.7

World

India

Africa

China

S E Asia

L America

W Asia

USA

W Europe

Japan

4,087

675

477

921

355

352

127

197

123

85

StockPosition 2004

Addl workingage population

by 2010

Singapore

USA

India

Germany

Hong Kong

Japan

Taiwan

Korea

Mexico

China

10 = H igh

1 = Low

India

Singapore

USA

Hong Kong

Germany

Taiwan

Mexico

Korea

China

Growing Knowledge Pool


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2.4

5.88 6.46.5 7.2 7.2

8 8.9

25 28

6

0

5

10

15

20

25

30

Average wage / year (in thousand US dollars)

Source: NASSCOM

Costs for offshore work30 - 50 % lower than in USA / Europe

The Cost Advantage


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Total Compensation for Workers in HeavyManufacturing (US$ per Hour)

20.32

8.35

2.270.75 0.43 0.35

0

5

10

15

20

25

USA Korea Mexico China India Indonesia

Source: IMD Competitiveness yearbook, 2003

Low Wages


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Reduction in Peak Customs Duties on Manufactured items

150

110

50 38.5 30 25 2042

0

20

40

60

80

100

120

140

160

1991 Mar-92 Mar-95 Mar-97 Mar-00 Mar-02 Mar-03 w.e.f March

2004

i

n

p

e

r

c

en

t

Import duty Reductions


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10th largest economy in the world - 4th in terms of PPP

Will overtake Japan in PPP terms by 2010, to be 3rd largest in the world

Large entrepreneurial base and diversified manufacturing structure

Large reservoir of skilled labour at internationally competitive cost

Vast pool of scientifically and technically qualified manpower of 20m

A large domestic market - 300 m + strong middle class populationhaving substantial purchasing power

Largest democratic set - up

A broad based and transparent legal framework including arbitration

India - Economic Enablers


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Vast network of bank branches, financial institutions and well-organized

capital and money markets

A network of technical and management institutes of highest

international standards for development of human resources

India has a record of meeting its international financial obligations as

per schedule and has never been a defaulter

No communication barrier, as English is the most prevalent businesslanguage

Strong and vibrant small scale sector that is keen to establishstrategic alliances with their foreign counterparts



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Supportive infrastructure base

Strategic location for third country markets, particularly in the rapidlygrowing south and south-east Asian countries

The strategic location of India and its easy and efficient access to theMiddle East, East European countries, CIS countries, Africa, South East Asiaand Asia-Pacific countries places it in a unique position as a sourcing groundfor entering into strategic alliances in export-oriented industries

Foreign companies can take advantage of Indias strategic location and tap

the markets of these countries.India is slowly but surely emerging as an attractive destination for foreigninvestment

Liberalized industrial and foreign investment policies



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Recognising the need and the potential in certain areas, the Governmenthas also come out with specialised packages of incentives for setting upprojects in the fields of power, roads and highways, telecommunications,mining, drugs and pharmaceuticals,hydrocarbons, shipping and ports,tourism, electronics, food processing, etc

The Government is vigorously promoting and approving foreign directinvestment keeping in view the objective of attracting at least US $ 10 bper annum

The Government is very keen to attract sizeable foreign investment into

infrastructural projects like roads, power, ports, telecommunications, etc.as the demand for infrastructural services is expected to rise severaltimes to match the projected economic growth of around 8 % per annumin the next ten years



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Sector FDI Limits

Defence up to 26 %

Telecom up to 74 %

Civil Aviation up to 49 %

Real estate & construction sector up to 100 %

Integrated township development up to 100 %

Tea plantation up to 100 %



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Road length 2.5 m km

Second largest road network in the world

Railway routes 63,000 km

Cargo handled 298 m tonnes

Electricity installed capacity 126,000 MW

Sixth in world electricity generation

Telephone Connections 77 m lines

Fixed lines (Dec, 2004) 44.76 m

8th largest telecom network in the world

Source: Department of Economics & Statistics, Tata Services Ltd

The India Advantage: Infrastructure


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Indian Brains Abroad

Though foreign multinational have dominated the research agenda in India

to date, a growing number of Indians who have worked abroad are

returning home with cash, contacts and confidence to set up companies

of their own

These are people who have the experience and exposure to best practices

abroad

For the first time, Indians who have been exposed to the world, realize they

can do something just as good and they can be world-class

They have an attitude to meet challenges and succeed and also give back

something to their country

35 % of Doctors in USA

36 % of NASA Scientists in USA

35 % of Silicon Valley Start-Ups are by Indians

India emerging as outsourcing hub


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Opportunity in various Industry Sectors

Software

Biotechnology

Outsourcing

Retailing

Real Estate

Auto Components

Telecommunication

Media & Entertainment


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The Software industry in India is witnessing an explosive growth and expectsto generate US $ 87 b including US $ 50 b from exports by 2008

More than 150 global business giants have set up research and developmentfacilities in India

Some of these firms are GE, Microsoft, TI, HP, IBM, Daimler Chrysler andMotorola

Bangalore has over150,000 software engineers and a concentration ofhi-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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Opportunities in Software The ChinaConnection

China has a worker base equal to India's in terms of cost, qualityand scale

In future, the Indian software Industry will use China as a base tocater to the local markets including Japan

Indian firms such as HCL, TCS, Infosys and Wipro have alreadyopened centers in China to outsource technology talent


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Size (2002 - 03) US $ 24 b

Growth rate 28 %

Share of IT and BPO 1.4 % of GDP2008 projection 7 %

Exports (2003 - 04) + US $ 12 bGrowing at + 30 % pa

CAGR (since 1999) 46 %

Employment Over 650,000Second largest employer in IT services sector

Growing IT Market


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Opportunities in Biotechnology

Biotechnology is a fast emerging sector in India

The consumption of biotech products in India was US $ 1.8 bin 1999 and is expected to cross US $ 4.2 b by 2010

It is estimated that 10 % of the researchers and 15% of the

scientists in pharmaceuticals and biotech R&D in USA are ofIndian origin

India is churning out 2 m graduates, 300,000 postgraduates 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


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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 annualrevenues

Source: Confederation of Indian Industry (CII)

Size 2003 - 04 US $ 705 m

Biotech Market - A consistent Uptrend


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Volume wise 8 % of global market4th largest in the world

CAGR (1995 - 2002) 16.6 %

Exports 23 %

CAGR(1995 - 2002)

Size (2002- 03) US$ 7 b

Share of formulations 80 %

Size 2010 (estimated) US$ 25 b

Pharma Market


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The Indian Outsourcing industry is moving up the value chain

It is BPO today but the future is for Knowledge Process Outsourcing(KPO), Financial Process Outsourcing (FPO) and Legal ProcessOutsourcing (LPO)

It is providing value through domain expertise rather than processexpertise

India, in the new knowledge economy, is all set to emerge as a globalKPO,FPO and the LPO hub

It is estimated to capture 71 % of the world market by 2010 against

56 % today giving it a market of US $1

2 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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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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Contribution of IT Enabled Services in total IT

1999-200020%

2000-2001

20%

2002-2003

33%

2001-200227%

- ITES exports projected to touch US$ 24 b by 2008

- India offers combination of cost-quality-scale advantage

ITES - BPO Sector


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The ongoing buoyancy in Indias spending, arising from the changing demographics

and the resultant rise in income levels, has resulted in a distinct consumerpreference for value-added products across the retail spectrum, providing a platformfor the rapid growth of the retailing sector which could emerge as one of the fastestgrowing sector in coming years

Organized retailing industry to rise from US $ 4b to US $ 15b by 2010The total retailing industry, estimated at US $ 200b is largely in the unorganized

sector with organized retailing accounting for less than 2 % (US $ 4b)

The organized retailing segment to grow fourfold in 5 years

According to NCAER, the Indian middle class (household income betweenUS $ 4,500 23,000) currently at 92m, is expected to cross 153m by 2010

Substantial mall construction:The number of malls is expected to rise from the current 40 to around 250 by2010

Close to 50m sq. ft. of retail space is expected to be developed over the next 5years

Opportunities in Retail Sector


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Opportunities in Real Estate

The US $ 50 b Indian real estate market is booming and expected to grow at25 per cent annually

The boom owing to the consumption powered growth of the country'seconomy has seen investors planning nearly 250 new shopping mallsby 2008, as against just three that existed till 2002

The central government adopted a regulation in 2005 allowingforeigners to bid for Indian construction projects with local partnersand also reducing their minimum land - holding limit from 100 acres to25 acres

Enthused by the liberalized investment guidelines, a slew of foreignbuilders are rushing to launch projects in Asia's third largest economy

Expected annual shortfall of 20 m housing units by 2011Mumbai alone would need more than 180,000 housing units

An opportunity for developing large- scale commercial and residentialtownships in six cities Kolkata, Bangalore, Mumbai, Chennai, Hyderabadand New Delhi


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The Indian automotive industry has grown at a staggering pace over the last fewyears

The US$ 6.8 b industry has registered a CAGR of17 % between 1998 - 2003 andis 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 ofglobal auto majors

In the 1990s, economic liberalization allowed foreign automakers such asHyundai, Ford, Toyota and GM set up base in India

They also persuaded their overseas components suppliers to set up localmanufacturing bases in India

For example, Delphi followed General Motors and opened their plant in the stateof Gujarat in 1995 and Visteon followed Ford in 1998

Opportunities in Auto Components


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Opportunities in Auto Components

Present Industry size US $ 6.8b

By 2012 US $ 17b

Total Exports By 2010 US $ 5b

Key Features

- Suitability as a low cost manufacturing base for MNCs

- Costs 20 - 30 % lower, compared to USA

- High product quality, superior design & engineeringcapabilities

*Source:ACMA


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Opportunities in Telecommunication

Until 1995, during the more than forty years of government monopoly, there

were 9.4 m telephone connections

There are 46.2 m fixed line subscribers and 52.2 m mobile phones

The mobile phone market is growing at 2 m per month

Estimated rise in Cellular by 100 m subscribers by 2007

Basic telephone connections 175 m by 2010

100 % FDI in telecom equipment manufacturing

Almost 2 m wireless subscribers getting added every month

Unlike many developed countries, the GSM and CDMA technologies co - exist

The outsourcing boom would not have occurred without the private telecomsector


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The Indian media and entertainment industry, with the prominentsegments being films, television, and music has grown in recent times

The entertainment industry is currently generating revenue of US $ 7.2b

The average growth budget for films has been increasing by 15 % p.a

Another high growth segment of the entertainment industry is televisionbroadcasting

The present size of this segment is estimated to be US $ 1b

The penetration of cable TV, in the rural segment is expected togrow by 12 % p a

The music industry in India is expected grow at 20 % pa

FM radio broadcasting has been privatized

Opportunities in Media & Entertainment


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FOR PHILIPPINES



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Year Export Import Total Trade Balance of Trade

1997- 98 239.01 27.77 266.78 211.24

1998 - 99 118.71 37.25 155.96 81.46

1999 - 00 143.68 56.31 199.99 87.37

2000 - 01 201.63 62.97 264.60 138.66

2001- 02 248.63 95.17 343.80 153.46

2002 - 03 473.23 123.98 597.21 349.25

2003 - 04 321.54 122.11 443.65 199.43

2004 - 05 393.90 181.87 575.77 212.03

Bilateral Trade

Value in US $ m

Source: Ministry of Commerce, India

M j I di E t T Phili i


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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


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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


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The major sources of air pollutants

Motor vehicles

Industrial plants

Burning and construction work

The continuing increase in motor vehicles and population, the inadequate masstransit system, worsening traffic conditions, the establishment of pollutiveindustries, the widespread practice of open burning, and inadequate enforcement, ifnot adequately addressed, are bound to contribute to increasing air pollution in thesurrounding areas

The most effective approach in improving air quality is to stop the generation ofpollutants 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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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

Improvement Of Ambient Air Nehru Place Greens


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* American Society for Heating, Refrigeration, Air Conditioning Engineers 62-1999 (revised)** American Society for Heating , Refrigeration, Air Conditioning Engineers 62-2001 (revised)# Below Detectable Levelc Any presence of Benzene is carcinogenic^ Data validated to August 2005

ASHRAE*

Standard

ASHRAE**

Standard

(maximum ) (m aximum )

CO2

1000 PPM 455 350 339 300-500 ppm 331 341 345

Carbon

monoxide

0.055 ug / m3 BDL# BDL# BDL# 10 mg / m3 BDL# BDL# BDL#

O z one 100 ug / m3 BDL# BDL# BDL# 0.005 mg / m3 BDL# N.A. N.A.

Formaldehyde 0.4 mg / m3

0 .27 8 B DL#

BDL#

0.012 mg / m3

BDL#

N.A. N.A.

Lead 1.5 mg / m 3 2 0.003 BDL# 1.5 ug / m3 BDL# N.A. N.A.

Nitrogen

dioxide

100 ug / m3 67 38 34 100 ug / m3 32 33 35

Sulphur

dioxide

365 ug / m3 69 40 32 365 ug / m3 31 32 32

SPM 260 ug / m3 1047 593 390 260 ug / m3 389 399 404

RSP 75 ug / m3

672 502 355 - 349 356 354

Benz ene 10 ug / m 3 45 18.5 10 Carcinogenicc 10 N.A. N.A.

Parameter 1996 1999 2001 2002 2004 2005^

Improvement Of Ambient Air - Nehru Place Greens,New Delhi 1996 - 2005

IAQ Results After IAQ Program At PBCTM STIP


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American Society for Heating, Refrigeration, Air Conditioning Engineers 62-1999 (revised)American Society for Heating , Refrigeration, Air Conditioning Engineers 62-2001 (revised)Below Detectable Levelc any presence of Benzene is carcinogenic

ASHRAE*

Standard

ASHRAE**

Standard

(maximum ) (m aximum )

CO2

1000 PPM818 369 358

700 ppm

excess of

351 357 362

Carbon

monoxide

0.055 ug / m3

BDL#

BDL#

BDL#

10 mg / m3 BDL# 0 .07 2 0.0 70

O zone 100 ug / m3

BDL#

BDL#

BDL#

100 ug / m3 BDL# N.A. N.A.

Formaldehyde 0.4 mg / m3

0.156 0.013 BDL#

0.5 mg / m3 BDL# N.A. N.A.

Lead 1.5 mg / m3 0.08 7 B DL# BDL# 1.5 ug / m3 BDL# N.A. N.A.

Nitrogen

dioxide

100 ug / m3

30 22 22

100 ug / m3 20 21 22

Sulphur

dioxide

365 ug / m3

20 28 23

365 ug / m3 23 19 19

SPM 260 ug / m3 606 118 94 260 ug / m3 92 90 82

RS

P75

ug / m

3218 55 47

- 46 39 37

Benzene 10 ug / m3

18.5 B DL#

BDL#

Carcinogenicc BDL#

N.A. N.A.

2002 2004 2005^Parameter 1996 1999 2001

IAQ Results After IAQ Program At PBCTM - STIP1996 - 2005


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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


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SME: ADDING VALUE


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SMEs IN EU

Category Max.# Employees Max. Turnover Eurom

Medium 249 50

Small 49 10

Smallest 9 2

Wef. January 2005


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The definition of small-scale industries (SSI), is given below

Norms for Definition of SSI in IndiaMaximum Limit of Investment in plant and machinery in INR m

Year SSI Ancillary

1985 3.5 4.5

1991 6 7.5

1997 30 30

1999 10 10

Source: Ministry of SSI, Govt. of India

SMEs IN INDIA

INR 10 m =US $ 227,000


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CountryShare of total

establishments

Share of

output

Share of

employment

Share of

exports

India 95% 40% 45% 35%

Japan 99% 52% 72% 13%

Taiwan 97% 81% 79% 48%

Singapore 97% 32% 58% 16%

U.S.A 98% n.a. 53% n.a.

Korea 90% 33% 51% 40%

Malaysia 92% 13% 17% 15%

Indonesia 99% 36% 45% 11%

Contribution Of SMEs Across Diverse Economies


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To say it in Sam Pitrodas words

Technology is for problem solving at personal, community and national levelsIt is about doing things differentlyIt is about change in mindset, processes, products and preferencesTechnology 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 thefastest growing economies

Technology & SSI

SSI D i S I I di


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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 tilesInformation Technology and ITESRubber and Plastic Products, Parts & ComponentsBicycle and Bicycle parts

Foundries Ferrous and Cast IronLubricant ManufacturingGems and JewelryPaper and Paper products, Corrugated Boxes

SSI E bl CLUSTERS


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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

SUPPORT FOR SSI


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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

Additi l G t I iti ti


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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

POLICY FRAMEWORK I t t F t


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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

N t ki f SSI f Gl b li ti


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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 haveopened new opportunities for subcontracting

SSI Sector Facilitating Instit tions


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SSI Sector Facilitating Institutions

SSISector

Technical TrainingSIDO, SISIs, EDIs, TCOs, PPDCs, DICss, CFTIs

IndustrialInfrastructure

SIDCs, SSIDCs,HUDCO

Entrepreneurship DevelopmentSIDO, EDI, NIESBUD, SISIs

Specialized Institutions

Technology Support

NSIC, SIDO,SISIs,RTCs,PPDCs, TBSE

Funding InstitutionsBanks, SIDBI, SFCs,SIDCs, NSIC

Marketing SIDO,NSIC,SSIDCs, EPCs

Contribution Of SSI In India


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An Engine of Growth

95% of Industrial Units

7% of GDP

35% of NationalExports

> 8,000 Products

Over11 mUnits

Over 27 mEmployed

SSI

Contribution Of SSI In India


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Year Total

SSI Units(million)

RegisteredSSI Units(million)

UnregisteredSSI Units

(million)

Employment(million)

Employmentper Unit

Exports

US $(billion)

1998- 99 9.3 1.2 8.1 22 2.4 11

2002- 03 11 1.5 9.5 26 2.4 20

2004- 05(P)

12 2 10 28 2.3 24

Source: Ministry of SSI

Growing Competitiveness of SSI

The Average Export per unit is US $ 2,000


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Growing Productivity & Quality Controls

Year Average Capital

US $

Employment Per Unit Production

US $

1993-94 2,100 6.3 17,000

1999-00 3,700 3.6 71,000

Source: Second Census & Sample Survey of1999-2000 by DC(SSI)

50 % of the total number of ISO 9001 / 14001 certifiedunits are from the SSI Sector


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WINNINGATTITUDE

It Is All About Attitude Management


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Differentiating themselves through the products and services they provide

Standing out by creating special interfaces with their customers and buildingunique ways by which they can be held accountable by them

Building a very strong quality story

Benchmarking innovations against well set, globally accepted standards andaim for targets, creating an environment and culture of innovation within theorganization

Developing systems to nurture innovation making full use of the availability ofinformation and by rightful dissemination of knowledge to foster goal driveninnovation

Building efficient processes to cut time - to- market

Providing opportunities to their people to do roles that go beyond theirexisting work profiles

Providing continuing education

It Is All About Attitude - Management

It Is All About Attitude Business Person


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Need to hone their skills

More adaptive thinking

Greater entrepreneurial drive to find new horizons of growth with a competitivespirit

Foresight with a fierce unrelenting passion to execute and act today to improve thefuture

Bring change more aggressively and lead the organization to implementsustainable changes

Energizing their team and inspiring them for excellent team performance

Delegating authority to allow people to perform




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Ability to reach out to a wide international network for ideas and problemsolving

Understanding on how things get decided and done

Using customized strategies to influence specific stakeholders

Executive maturity and emotional wisdom to respond to others andembody the aspirations of ones organization

Inner strength to do the right thing at the right time

Courageous dedication to super ordinate goals, doing what is right and

what will make India great

To keep learning and be abreast of new technology


Acknow ledgement


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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


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THANK YOUTHANK YOU

raman pbc kamalmeattle 11sep. 2011 9782900600

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