Indian Market

Current Scenario

FMCG

Attrition Rate of FMCG since 2008

2008

2009 Attrition Rate of FMCG since 2008 2010

2011

10

15

20

WHY IS FMCG Sector Increasing ?

1 2
Increase in Population

Cheap Labour Change In Taste, Habits, Preference Of People 3rd Party Logistics Market India Government Rules And Regulations

Will FMCG market Keep on BOOMING ?

720 million Indians to join consuming age by 2012

Increase in Consumers

Buying Capacity

Economy is set to grow at 8-10% per year for next 10-15 years, both- the size of middle class and its real disposable income are bound to rise rapidly in coming years.

Employment

7% of the population is engaged in retailing BY 2013 ,5.5 retail outlets per 1000 population, highest in the world

FDI

A booming US$ 300 billion retail market in India will be added by 2014 through foreign players.

Change in lifestyle

32% rise in urbanization by 2015

IT

IT services
Banking, Financial Services and Insurance (BFSI) vertical continues to account for the largest share of exports at 31 per cent

2% 3% 4% 1% 35%

Telecom vertical accounts for secondlargest share of the pie at 19 per cent
Other verticals such as manufacturing, retail, media and healthcare are rapidly gaining pace

33%

n BFSI
n Retail n Other

n Hi-tech/Telecom
n Media, Publishing and
Entertainment

n Manufacturing
n Construction
and Utilities

19%

IT/ITES Contribution INDIA

7.5 % TO GDP

3 Million Jobs 2011

IT
FDI 4-5 Billion $

35 % Exports of IT services

Future Outlook
1
Demand for 0.8 million IT and 1.4 million ITeS professionals by 2012-13

IT players have proposed of Cloud software, which would create 5 million jobs

India is strongly positioned to capture up to $15 bn of the global remote infrastructure management market over the next four years

The Indian software industry alone would require 2.3 mn professionals

India is strongly positioned to capture up to $15 bn of the global remote infrastructure management market over the next four years

The Indian IT education market has grown by 13% to reach Rs 3,827 crore in FY 09, up from Rs 3,393 crore in the previous fiscal.

Consumer Durables

Sneak through Electronics sector

The Market: 2011-12
Domestic demand:
Components Strategic Electronics Consumer Electronics

USD 48 bn
Production: USD 16

bn
Exports: USD 2.2 bn Employment

Comm. & Broadcasting Equip.

Computers

Industrial

Direct: 1.75 million Indirect: 2.85

million

Desktop Sales
6,000,000 5,000,000 4,000,000 3,035,591 3,000,000 2,293,643 2,000,000 1,000,000 0 2006 2007 2008 2009 2010 2011 1,670,878 3,632,619 4,614,724 5,490,591

Set-top BOX
3 2 2.75

1.5
1 0 2008 0.75

2009
2010 Set-top box

Set-top box

Mobile Phones Subscriber

350 300 250 200 150 100 50 0 Mobile Subsciber Base

2002-03

2008

2009

2010

 6.3 million PCs sold; Installed base: 22 mn 13 million TVs consumed; Installed base 100 mn + 5 million + DVDs sold: growing at 40% annually Internet users: 50 mn+;Broadband connections: 2.5 mn

Mobile sales: 75 mn ; Installed base: 172 mn

Significant R&D and product development

Future Outlook
1
Indian Electronics Equipment Production is expected to reach $58 billion in 2013 and $155 billion in 2018 growing at a CAGR of 26.9% Indian Electronics Production output share is expected to increase to 2.5 percent in 2010 and 5 percent in 2015

2 3

Indias Electronic Equipment Consumption iS 5.5 percent in 2010 and will be11 percent by 2015

Three way benefit FOR INDIA

Profit from Local Sales
Manufacture

Back-end Services

Retail

Indias GDP growth of 7.4% for 2010-11 ,but the retail sector itself is growing at a pace of 11.5 %

2 3

Retail contributes to 10% of Indias Gross Domestic Product and provides employment to 8% of Indias working population.

Beauty Care, Home Dcor, Books, Music and Gifts segments are gaining traction predominantly in the urban areas and emerging cities.

Future Outlook
M&A, Consolidation, High Investments, Confluence of Indian Retail Technology Adoption, Leveraging Traditional Formats for Modern Retail

Growth

Range, Portfolio, Format Options, Beginning of the RuralUrban Retail Merge Entry, Growth, Expansion, Top Line Focus for Organized Retail

Ist Phase 2000 2005

2nd Phase 2008

3rd Phase 2011

4th Phase

 The Indian retail market is expected to be about US $ 535 Billion by

2013. With an anticipated US$ 30 Billion in fresh investments over next 5 years, modern retail will show impressive CAGR >40%

Emerging Cities
The emerging and potential cities contribute about USD 15,619 million of retail revenues. The combined retail potential of these cities is expected to soar to USD 23,563 million by 2010-11
High Growth Cities

Pune

Ahmedabad

Chandigarh

Ludhiana

Kochi

Vadodara

Jaipur

Lucknow

Emerging Cities

Indore

Amritsar

Jalandhar

Mangalore

Nashik

Bhubaneshwar

Agra

Vishakhapatnam

Coimbatore

Kanpur

Nagpur

Goa

Surat

Mysore

Jamshedpur

Thiruvananthapuram

Potential Cities

Jodhpur

Patna

Varanasi

Meerut

Rajkot

Aurangabad

Bhopal

Sonepat

Vijayawada

Madurai

Ranchi

Guwahati

Jamnagar

Srinagar

Allahabad

USD billion

500 450 400

Projected Retail Growth

460.6

Total Retail

Organized Retail
311.7

350 300 250 200 150

100 50 0

337.3

12.9

16.5

43.8

2010

2011

2012-p

Shortage of skill in Target Sectors

The projected growth rates in industry and services sectors are

expected to generate 60 millions job opportunities during 200612 and 156 million during 2006-16 Media and Entertainment: The demand for animation production services from India is growing. This has opened up innumerable opportunities for students of Design, Fine Arts and Mass Communication. Biotechnology sector: 80 % shortfall of doctorate and post doctorate scientists 2011. IT and BPO sector could employ 9 million persons directly and indirectly by 2011 Raising the rate of growth of manufacturing to 12 % could create 1.6 to 2.9 million direct jobs annually, and another 2-3 times that number indirectly Retail Sector - demand of 3-5 lakh trained people in the northern

Shortage of skill in Target Sectors

Health sector: Shortage of 5 lakh doctors and 10 lakh Nurses. IT sector : Shortage of 5 lakhs (half a million) engineers. Education sector: Faculty shortage of 25-40 percent. Banking and Finance sector: 50-80 percent personnel shortage. Pharmacy sector: Severe shortage of top pharmacy scientists as

research expenditure by pharmacy companies has quadrupled in the last 5 years. Thus there is a shortage of middle-level and junior scientists too. This has made salaries of top pharmacy scientists rise to US levels. Project Management Services-this labor intensive sector will grow with growth in corporate structure, infrastructure & retail industry
Source: Data compiled from (FICCI report, New Delhi); (NASSCOM); (NASSCOM McKinsey Report 2009); (Press Release, Ministry of Com. & Ind. April 7, 2010); (Presentation made by