Professional Documents
Culture Documents
• As per the Travel and Tourism Competitiveness Report 2009 by the World
Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd
• overall, moving up three places on the list of the world's attractive destinations.
• It is ranked the 14th best tourist destination for its natural resources and 24th
for its cultural resources, with many World Heritage sites, both natural and
cultural, rich fauna, and strong creative industries in the country.
• India also bagged 37th rank for its air transport network. The India travel and
tourism industry ranked 5th in the long-term (10-year) growth and is expected to
be the second largest employer in the world by 2019.
• India has been ranked the “best country brand for value-for-money” in the
Country Brand Index (CBI) survey conducted by Future Brand, a leading global
brand consultancy.
• India also claimed the second place in CBI’s “best country brand for history”, as
well as appears among the top 5 in the best country brand for authenticity and
art & culture, and the fourth best new country for business.
• India made it to the list of "rising stars" or the countries that are likely to
become major tourist destinations in the next five years, led by the United Arab
Emirates, China, and Vietnam.
Contribution to the economy
HIMACHAL PRADESH - The Himachal govt has introduced a scheme – Himachal Pradesh
Home Stay Scheme 2008 under which tourists are given the opportunity see the rural areas.
GUJARAT – Through the ‘Vibrant Gujarat’ programme plans to actively market the tourism
sector.
MP – The govt of MP is keen to initiate the development of an artificial beach in the state.
The concept is based on ‘Ocean Dome’ artificial beach in Japan.
KERALA - Kerala has introduced innovative tourism initiatives. Two of its villages,
Aranmula and Kumbalangi, are being promoted as tourist destinations in a big way as part of
the ‘Endogenous Tourism Project’ of United Nations Development Programme and Govt of
India.
Tourist Circuits in India
RAJASTHAN - Rajasthan has a developed tourism infrastructure, with
close to 6,000 hotel rooms spread over more than 150 hotels.
• RAIL TOURISM – The Indian Railways has introduces several new services to
promote rail tourism – luxury tourist trains, exclusive steam and hill charters, tour
packages.
• HELIPOT TOURISM - With a view to promote tourism in hilly and remote areas,
guidelines would be framed to provide central financial assistance to States and
Union Territories for constructions of helipads/heliports at selected destinations
which have tourism potential but lack good connectivity's
Travelers analysis
9% 7% SE Asia
2% W Asia
28% W Europe
0%
Africa
2% Australia
5% C & S America
E Asia Share of Outbound
12%
E Europe
N America
Travelers, 2006-2008
20% S Asia
30
25
20
15
Number of
10 Travellers
(Mn)
umber of Outbound Indian Travelers5
0
1998 2004 2006 2008 2018
Foreign Tourist Arrivals
The number of domestic and foreign tourists has almost doubled in 2003 and
2008.
Indian Tourism Industry-Market Size
300
Market Size in Bn
250
79%
200 78%
78 International Touri
77%
150 Spends
74%
Domestic Tourist Sp
100
22 164
50
11 73
15 32
0 4
The most important growth is the robust economic growth that has
been witnessed in the country.
India’s GDP has been growing at the rate of 6% since the
liberalization of economy in 1991 and has grown over 8% in the past
few years.
At 8% CAGR, India’s GDP would almost triple from US$ 1200 Bn to
US$ 3500 Bn by 2023
Growth in GDP per Capita
India’s strong economic growth has caused the GDP per Capita to
increase rapidly over the past 5 to 10 years. At current rate, the GDP
per capita in 2013 would be double of what it was in 2003
Distribution of Households Across Income Brackets
More and more families are expected to leave the deprived or aspirers category and
join India’s burgeoning middle class.
By 2025, the Indian middle class is expected to constitute 46% of the Indian population.
Subsequently, discretionary spends would be going up and this bodes well for the
tourism sector.
Share of LCCs In Airlines
80
70
60
50 53%
40 47%
30 Fsc: Full Service Carriers
%
inS
h
re
a
The above graphs indicates the increasing share of LCC from 33% to 47%
between 2006 and 2008.
The advent of LCC has spurred domestic air travel to grow from 11 Mn
travelers to 36 Mn travels in the last decade.
50
43.35%35.79%
40
30 7.56%
To tal
20 Domest
A
xisT
tle
Internat
10
0
1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005-
97 98 99 00 01 02 03 04 05 06
Steps taken by Government to Promote Tourism in
Country.
Reduce the charges which airport operator charges from the oil
companies, leading to enhanced performance.
Indian Textile and Apparel Industry
Indian textile and apparel industry is one of the oldest and most
significant industries in the country and one of the largest in the world.
Apart from China, no other country can match the size, spread, depth and
competitiveness of the Indian textile and apparel industry.
It accounts for about 15% to the country’s exports and is, in sum, an
important economic engine for the nation.
Textiles Clothing
US$ 12 Bn US$ 10 Bn
The present size of the Indian textile and apparel market is US$ 62 Bn
of which 22 US$ Bn is exports while rest US$ 40 Bn is the domestic
market.
The Indian domestic textiles and apparel market is one of the fastest
growing market in the world. It is expected to become one of the major
consumption bases in near future.
FDI in India : Current Scenario
Vertically Integrated :
Indian industry is amongst the
very few in the world that is
vertically integrated from raw
material to finished products.
Cotton Other Natural Fibres MMF ( from fiber to retail).
Broad range of Products
Indian Industry has over the
years steadily diversified its
Ginning Spinning Extrusion raw material base t include
man made fibers such as
Small
Players Small polyester, viscose, acrylic,
Garment Players polypropylene etc.
Production Capacity : The
capacity in spindles in the mill
Weaving / Knitting Processing sector increased from 35.9
Mn in 2007 to 38.4 Mn in
2008.
Domestic Retail / Big players constitute mainly
Fabrics: The Indian
Distribution Channel the composite units or
Exports Buyers garment exporters weaving and knitting has
today includes products as
diverse as fine dress fabrics,
worsted suiting, denim,
International Outlet Centers
Hospital
Documentati Mode of Public Quality Financial Human Customization
on Payment Relations Operations Resources
Revenue Active
Electronic
Third - Marketing / Accreditatio Cycle Employee Personalize
Medical
Party CRM n Managemen engagemen d Care
Records
t t
Changing Healthcare The Toyota Way
Surgeon
Assistant
Machine
Support
OT Nurse
Anesthesio
logist
Japanese Process Improvement Traid.
Eliminate ‘Muda’ : Waste Reduction
» Patient monitoring.
» Patient flow.
» Nurse travel distances .
» Standardization.
Facility Planning
Waiting
Patient Flow
Typical Patient Flow for Outpatient OPD Consultation
Services
Billing
Pharmacy Diagnostics
Customer Relationship Management
• Customer Relationship Management (CRM) is a method for an organization to track,
maintain and organize a database of its current and prospective customers.
• In the healthcare sector, there is a wide difference between the customer and
consumer.
• Hence there is a series of relationships that need to be nurtured and managed to
enhance patient retention.
• CRM is increasingly applied in the healthcare industry in the following way:
CRM goes long way in building patient confidence and goodwill, and hence it
becomes a deciding factor for patient while choosing a hospital again. Hence
customer service is one of the major drivers of repeat business.
In a active CRM programme it is necessary to train every member of the hospital in
providing quality care and service to the patient . It plays important role in retaining
the patient.
The cost of efforts undertaken to retain a customer is ten times lesser than that of
acquiring a new one.
Today health care has become global. India has growing number of international
patients and more and more hospitals are rushing to upgrade their services.
Application of CRM
Application of CRM
CRM has now evolved into a science which has been used very
Collection
effectively and productively to enhance the efficiency of various sectors &
such as the banking industry. Integration of
Customer
data
Multi-channel
Integration
Customer
Marketing
Customer
Credit Cards, Delight
Insurance Schemes &
Retention
Customer
Analysis
Customer profitability,
Propensity to busy,
Attrition behaviors
Analysis
Customer &
Care Application
Of this date to
provide quality
Service to
customers
Hospital Revenue Cycle Management
Standard Revenue Cycle with Activity Analysis
Front - end
Appointments Scheduling Registration
•Registration •Computing the deductibles
•Patient information collection and co-payments
•Information verification •Public health insurance
•Insurance validation program counselling
Back-end Core
•Billing and collection •Charge capture into Hospital
•Follow up for outstanding
•Claims review, approval and information System (HIS)
payments/accounts receivable
denial along with insurance •Diagnosis and procedure
•Denial management company coding
Less than 10% of the Indians are estimated to be covered under some sort of health
insurance. Most patients pay for their hospital expenses directly. Today in most hospitals in
metro cities, over 50% of patients have some form of third-party reimbursement plan.
Failure to realise this could seriously affect the working capital of a hospital.
Many companies like Google, have innovated and taken technology a step
further by coming up with a whole range of medical technological
applications such as predicting epidemic trends and also making healthcare
advice available on cell phones
Impact of Warehousing
1000 Kms
Plant Customer 2
Customer 1
Illustrative freight distance (and hence cost0 saving of 400 Kms for Cutomers1
Case 2 : GST State Border
Old Warehouse
Customer 1 Customer 2
New Warehouse
In Case I, the source is State A (left) and the customer is in State B(right). Due to CST barriers,
the customer can only be served from a warehouse in State B but by back-tracking in the direction
of the source.
In Case2, after the introduction of GST, the network linkage is re-defined and the back tracking is
saved substantially by serving the customer directly from the factory, or a warehouse “on the way”
in State A itself. The freight distance saving translates directly into freight cost saving.
Impact on Service Level
The key fallout of GST aligned networks is fewer warehouses but this also has
two implications on customer service:
Extended Central GST• At present, service tax on logistics servicesThis will boost outsourcing in supply
Chain consumed during distribution and retail are not chains and provide greater impetus
off-settable against CENVAT to 3PL's
Affected Inventory ● Post GST, inventory will also carry Central GST &Organisations need to study GST's final
inter-state GST input credit, the tax rates may mechanisms and plan inventory
also get changed for many products transition very carefully for
themselves, suppliers and
customers
● Unless the GST rates go up for its product, the
firms would be encouraged to minimise pre-GST
inventory which has less input credits
Organisations will be encouraged ● There are two possible scenarios through Organizations can and should
to locate warehouses and which tax barriers would be removed: design their networks purely
hubs in entry tax and Octroi supply chain considerations
zones and stock more and not tax considerations
inventory there
• Table 1 : Suppose a firm currently does a stock transfer from State A to State B,
before selling in State B to avoid paying CST . It thus gets a margin to US$0.50 per
unit and incurs local VAT only when it sells in State B to its distributor through its
depot. The distributor charges a margin of US$ 0.14 per unit and charges the final
price by adjusting the input credit ( Which is available since the sale from depot was
intra-Stat). In this case, Price to Retailer = (Distributor landed cost + Distributor
Margin – Distributor Input Credit)* (1+VAT Rate).
• Table 2 : In today’s 2% CST scenario, the firm incurs US$ 0.08/unit loss in margin. If
it were to do a cross-border sale to the distributor, without going through transfer at
the depot. The calculations are based on the premise that the US$/unit retailer
margin, distributor and MRP are maintained at the same level.
• Table 3: If CST rates were to become zero then the firm can do cross border sale (at
0% rate) directly to the distributor without any loss of margin to itself, the distributor
or the retailer and yet charge the same MRP to the consumer.
• Table 4: If CST is abolished and inter state sales or stock transfers are taxed with
input credit allowed at the destination then also the margin and MRP remain intact for
everyone
Detailed Impact of Removed Tax Barriers on Cross-
border Sales
Table1: Current - Stock Transfer Sale (All figures except VAT and CST are in
US$/unit)
Stock Landed Margin Input VAT Price VAT CST Tax Net Tax Final Price
Transfer Cost Credit Before
Sale Tax
Stock Landed Margin Input VAT Price VAT CST Tax Net Tax Final Price
Transfer Cost Credit Before
Sale Tax
Stock Landed Margin Input VAT Price VAT CST Tax Net Tax Final Price
Transfer Cost Credit Before
Sale Tax
Introductory Reforms
Sales VAT MODVAT
Network Re-engineering for GST
• People are now spending significant part of their internet time on social
networking/ blogging sites.
• The balance power is shifting towards the consumer with their voice
becoming more powerful than marketers.
Product &
Brand Awareness Customer Service
Service Promotion
Promotion of Knowledge
Brand Building
Social Causes Sharing
Customers Support
Seeking Feedback Hiring New
Kingfisher Airlines,
- Titan Talent – E & Y
PVR Cinemas
Infosys, TCS, Rediff, HCL, Cleartrip, Fritolay and Naukri and India arms
of MNCs like Microsoft, IBM, and Hindustan Unilever are few names that
launched their social media presence with corporate blogging.
Successful Use of Social Media
Company Activity Undertaken Impact
Area
Increasing Brand Adobe Activity holding consumer The game was played more than
Awareness interest through engagement 14,000 times during the 1 month
ads on social networks - set up campaign.
of an online game Rise in page view by over 48,000
a week
Product promotion MTV India Capitalizing on social media to • Over 40000 fans on facebook
keep the show buzz alive -
creation of an online and highly
interactive model of the real
game show
Maturity Index
Identify the Target Consumer : Examine the ‘socio-technographic’
profile of target customer.
Set Objectives: Decide what the company wants to accomplish with
social media and how the results would be measured.
Make a Plan: Plan for how relationships with customers will change
and build a strategy around changing relationship with customers.
Adopt Technology: Pick the appropriate platforms, tools and
technologies to implement.
The Social Media Influencer Model
Shopping
Garden City
Phase 1 Center
(1920-1950)
Development
Of shopping
center Retail Development Development of
Operational process
Regional Center
Focus on
Lifestyle Centers Community Participation
Entertainment
Changing dynamics of retail Real-Estate business
Liquidity Crunch
Organised retail’s
Lower than Shortfall in Correction in rentals
Anticipated growth supply of mall
Uneven distribution
Of mall space
Unsatisfactory
performance of Growing trend towards
Showdown in mall space revenue sharing
consumer spending
Commoditization of
Mall space
The Outlook for Indian retail looks quite promising in the near
future and the current turmoil should be over in 2 to 3 quarters.
The retail center of the future-whether it is enclosed or open-air,
big or small, themed or general – would also be designed to resemble
a community, not just a place to shop and entertainment would
emerged as vital component in the development of new malls.
Education Industry
The cost per seat in a regular higher education institution is UD%$ 8300.
Therefore, the total investment that India required for higher education alone
would be US$100 Bn.
Total Current and Projected Growth in K-12
Enrollment
Currently, the total number of
students enrolled in K-12
Total Current and Projected
schools in the country is 317 400 Growth in K-12 Enrollment
Mn and expected to grow to (Mn)
Age
328 Mn by 2013 and further to 300 10
Group
97 0
351 Mn by year 2018. 97
1 4-1 8
200 74 80
Clearly, India will need to add 72 1 1-1 4
at least 34 Mn additional seats
6 -11
in K-12 segment in the next 10 100 14 15 17
7 8 1
years to cater to the education
needs of its continuously 0
growing population, as shown 2008 2013 2018
in the Exhibit 1.
The cost per additional seat, at a conservative estimate is US$ 2400
(cost of land included at US$ 1 Mn per acre). This translates into a
minimum investment requirement of US$ 80 Bn of investment over the
nest 10 years to establish these 34 Mn seats.
Vocational Streams of Education
Parameters Health & Counseling English
Speaking
Beauty
No. of Students 1380 560 1180
Capex- 1 Centre (US$) 195,800 133,333 100,000
Cost Per Seat (US$) 145 240 84
Cost per Seat Estimation in Few Vocational Streams of Education
The vocational education and training landscape of India is extremely
underdeveloped. India currently has 5,500 industrial training institutes and
1,745 polytechnics as compared to 500,000 similar institutes in China. This
infrastructure cater to only 2.5 Mn people annually. There are 175 trade training
programs in India as compared to 1,500 in the USA. Clearly there is a
pronounced skill gap in terms of both quality and quality in the
country.
Cost per seat will very vary significantly in this segment depending on the
location, scale, positioning of training service and investment by private players
Ayurveda Marvel
• The demand for travel and tourism in India is expected to grow by 8.2 per cent
between 2010 and 2019 and will place India at the third position in the world.
• India’s travel and tourism sector is expected to be the second largest employer in
the world, employing 40,037,000 by 2019.
• Capital investment in India's travel and tourism sector is expected to grow at 8.8
per cent between 2010 and 2019.
• The report forecasts India to get capital investment worth US$ 94.5 billion in the
travel and tourism sector in 2019.
• India is projected to become the fifth fastest growing business travel destination
from 2010-2019 with an estimated real growth rate of 7.6 per cent.
• Preparing for the 2010 Commonwealth Games in Delhi, the Tourism Ministry is
exploring the provision of tented accommodation to tourists in Faridabad and
Suraj kund in nearby Haryana.
Thanks
Yogesh Kende
Navi Mumbai, India
Write to – yogesh.kende@gmail.com