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FACTOIDS |
16th January, 2007 |
| India ranks 11th in service exports |
- India’s share in global services exports in 2005: 2.3%.
- India ranked 11th in commercial service exports in 2005, 5 places higher
than previous year.
- India accounted for 0.9% of goods exports during 2005, ranking 29th in
the world.
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| India’s media & entertainment industry expected to
double by 2010 |
- Media & Entertainment sector to double to Rs. 744 billion ($16.7
billion) in 2010 from Rs. 361 billion ($8 billion) in 2005, registering
15.6% compound annual growth rate (CAGR).
- Indian television industry estimated to grow to Rs. 405 billion ($9
billion) in 2010 from Rs. 176 billion ($4 billion) in 2005, registering
18% CAGR.
- Print media expected to touch Rs. 163 billion ($3.7 billion) in 2010
from Rs. 97 billion ($2.2 billion) in 2005 growing at a CAGR of 11%.
- Films segment estimated to register a CAGR of 14% to scale up to Rs. 137
billion ($3 billion) in 2010 from Rs. 70 billion ($1.6 billion) in 2005.
- Radio business expected to grow by CAGR of 31% to Rs. 12 billion ($270
million) by 2010 from Rs. 3 billion ($67 million) in 2005.
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| IT Services and BPO exports from India forecasted to rise
by 26% in 2007 |
- Export of information technology (IT) services and business process
outsourcing (BPO) from India to grow by 26% to $33.4 billion compared to
$26.5 billion in 2006
- Software and related services exports to touch $21 billion in 2007
compared to $17 billion in 2006, a growth of 21.6%
- BPO segment is expected to grow at 34% to reach at $12.6 billion in 2007
against $9.4 billion last year
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| FROM PREVIOUS ISSUES |
| AUTOMOBILE: |
| India’s two-wheeler production expected to double in 5 years
26th December, 2006 |
- Production of 8.63 million two-wheelers expected by close of financial year 2006-07.
- Production expected to reach at 17.85 million units by 2011-12, more than double of current production.
- Two-wheeler production capacity to reach at 22.31 million in 2011-12 compared with 10.78 million in 2006-07.
- India to export 1.39 million two-wheelers in 2011-12 compared with 590,000 in 2006-07.
- Total investment for new capacity generation in two-wheeler segment expected to be more than $2.2 billion (Rs.10,000
crore).
- Total vehicle production by the automobile industry in India crosses 10 million mark for the first time in calendar year 2006.
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| Auto Component Industry to double in 4 years
6th December, 2006 |
- The Indian auto component industry is likely to almost double to $18.7 billion by 2009 and reach to about $40 billion by 2014 from the current $10 billion market.
- Industry exports is expected to increase to about $6 billion by 2008-09 from $1.8 billion currently.
- India has a cost advantage of about 30% with respect to casting and forging compared to western countries.
- General Motors Corp., world's largest automaker will ship parts worth $1 billion to its global production units by 2010 from India.
- Robert Bosch GmbH of Germany, a leading global supplier of automotive, industrial, consumer goods and building technology will invest $201.4 million in its Indian subsidiaries over two years. Bulk of the investment will be in Motor Industries Co Ltd (Mico), the Bosch flagship in India.
- Dubai-based auto ancillary company Crosslink International Wheels is planning to up its production capacity in India using the country as a hub for exports to Commonwealth of Independent States (CIS) and South Asian Association for Regional Cooperation (SAARC) countries.
- French automobile group PSA Peugeot Citroën has placed orders for components worth $10 million with Indian companies.
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| Auto sales rides festive season boom
October 06, 2006 |
- Total sales of Maruti Udyog, the largest car company in India, in September 2006: 59,420 units (up 20.6% from 49,278 in September 2005)
- Total sales of Tata Motors, the largest automobile company of India, in September 2006: 49,157 units vs 39,707 in September last year, up 23.8%
- Passenger car sales by Tata Motors in September 2006: 18,609 units, up 15.7%
- Total sales of Hero Honda, the world’s largest motorcycle company, in September 2006: 301,577, up 13.3% from 266,071 in September 2005
- Total sales of Bajaj Auto, India’s second largest motorcycle company, in September 2006: 300,141 units, up 38% from September 2005
- Bike sales of Bajaj Auto in September 2006: 271,377 units, up 50% from September last year
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| BIOTECH: |
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India’s biotech industry surges 37%
July 17, 2006
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India’s bio-tech sector is growing at 37.42% and inched closer to $1.5 billion in revenue during 2005-06. The bio-pharma segment still dominates this sector with $1 billion in revenue. The Indian bio-tech sector is likely to generate more than a million jobs in agriculture, pharmaceutical and medical segments by 2010.
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| INFORMATION TECHNOLOGY: |
| Electronic Manufacturing Services set for a boom in India
October 26, 2006 |
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Printed Circuit Board assembly and Original Design Manufacturing set to grow to $2.5 billion by 2010
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Much of this growth is because of the increasing demand for telecom equipment like mobile handsets.
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The demand in turn is prompting global electronics manufacturing service providers like Flextronics International, Jabil Circuits, Elcoteq SE and
Soleqtron, to establish manufacturing bases in India.
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Hon Hai Precision Industry, the largest manufacturer of connectors for use in PCs in Taiwan and San Jose, California headquartered,
Sanmina-SCI leading electronic manufacturing service provider Sanmina-SCI are in the process of setting up their units.
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Jabil Circuits has plans to invest up to $100 million in India over the next few years
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Domestic companies like TVS Electronics, Chennai, capital city of the south Indian state of Tamil
Nadu-based computer peripherals manufacturer are also expanding their operations.
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| India to capture 15% of $54-billion global KPO industry pie
September 01, 2006 |
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India is likely to capture around 15% of the more than $54-billion knowledge process outsourcing (KPO) industry worldwide by 2010 from the current 5%. It is estimated that the total market size of KPO business in India may rise to $15.5 billion, up from $1.2 billion now. Also, there will be a 45% growth rate in the Indian KPO segment vis-à-vis 25% in the business process outsourcing (BPO) segment. The KPO industry will generate 250,000 jobs in the next five years. |
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Legal
Process Outsourcing: India high on foreign companies’ list September 01, 2006 |
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The
total U.S. legal offshoring business amounts to $25-billion and India is
well positioned to tap this sector. India can earn the combined revenue of
$4.7 billion from U.S. private law firms and corporations by 2011-12. About
33,000 more lawyers are needed by law firms to achieve this target, while
there are only 50-60 LPO firms employing 700 lawyers currently. The current
legal offshoring content of the Indian LPO industry is worth $60-$80
million. |
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Software, ITES exports up 32% in April-June 2006
August 16, 2006
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India’s software and services exports, including IT-Enabled Services (ITeS), has increased by 32.29% to about $6.4 billion (Rs. 29,500 crore) in April-June quarter as compared to the same period last year. Export of computer software and services including ITeS is expected to rise by 33% during financial year 2006-07 to about $30.5 billion (Rs. 140,000 crore) as compared to about $22.8 billion (Rs. 105,000 crore) during 2005-06.
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India’s IT sector crossed $35 billion in 2005-06 August 16, 2006 |
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The Indian IT sector has maintained its high growth of 33% in 2005-06 by clocking total turnover of about $35.5 billion (Rs. 164,000 crore). India’s software and services exports registered a growth rate of 33% to reach $17 billion (Rs. 78,134 crore) in fiscal 2005-06; while Indian IT exports grew at 36% during the same period to touch the mark of about $23.5 billion (Rs. 108,511 crore). Tata Consultancy Services (TCS), India’s largest IT services company remained at number one position with its revenue growing by 40% to $2.5 billion (Rs. 11,595 crore). TCS was closely followed by Infosys Technologies, country’s second largest IT services company which posted a 32% growth to clock revenue of about $2 billion (Rs. 8,977 crore) in 2005-06. |
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Indian ITeS industry to touch $26 billion by 2009 July 04, 2006 |

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The Indian information technology-enabled services (ITeS) industry is poised to touch $10 billion by 2006-07 and $26 billion by 2009-10. Corporates are expected to continue outsourcing many of their labour-intensive business process service tasks to developing countries like India to gain cost savings and quality advantages. The demand growth in the ITeS industry is likely to be export-led, with the domestic market also expected to grow at a rate in excess of 50%. However, lack of good infrastructure is the biggest challenge which the ITeS industry in India is facing. |
| MEDIA: |
| Poised to grow to $200 billion
November 13, 2006 |
- The global entertainment industry, projected to touch a whopping $2 trillion by 2015 is witnessing a shift towards the Asian region. India is expected to take a chunk of about $200 billion of the global market.
- The Indian film industry, one of the largest in the world is currently worth $1.26 billion and is expected to grow at a compounded annual growth rate (CAGR) of 18% over the next 5 years.
- India has over five million home video and DVD subscribers. It is expected to grow at the rate of 30% over the next five years, fueled largely by populations who have migrated between cities not within the same regional zone.
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| Indian media at a glance September 21, 2006 |
- Reach of the press medium (dailies & magazines): 222 mln readers (up from 216 mln)
- Number of press medium readers in urban India: 112 mln
- Number of press medium readers in Rural India: 110 mln
- Reach of dailies: 203.6 mln (up 12.6 mln from 2005)
- Reach of magazines: 68 mln (down from 75 mln)
- Reach of satellite TV: 230 mln (up from 207 mln in 2005)
- No. of homes with cable and satellite (C&S) access: 68 mln (up from 61 mln)
- Reach of FM radio: 119 mln (55% up from 76 mln in 2005)
- Reach of Cinema (at least once in a month): 39 mln (down from 51 mln in 2005)
- Internet users (who logged in every week last year): 9.4 mln (up from 7.2 mln)
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| How big is Indian Advertising? July 04, 2006 |
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Rs. 12,000 crore, or $2.6 billion: that is the estimated size of Indian advertising across all media. Online advertising including classifieds is a small chunk of this, only $88 million (Rs. 400 crore), but growing at a rapid pace. Have you started thinking about naukri.com, India’s leading job search portal, which plans to bring its IPO shortly? Actually Jobs-advertisement is one segment where online advertising moved ahead of print ads. While the online job-ads market is estimated at $44.4 million (Rs. 200 crore), print ads for jobs command only a market of $22.2 million (Rs. 100 crore).
Well, don’t even think of comparing these figures with the U.S. advertising market, which is expected to reach $150 billion in 2006.
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| PHARMACEUTICALS: |
| Contract Research in India expected to grow at 20 – 25 % each year:
October 26, 2006 |
- Contract Research market in India valued at $100-120 million
- Growth rate of this sector: 20 -25% year on year
- Market size for contract research in the nearest Asian competitor, China: about $23 -28 million
- Pfizer Inc., world's largest pharmaceutical company has made a cumulative investment of $13 million in clinical trials in India.
- Eli Lilly and Company, a global pharmaceutical company has started simultaneous clinical research projects across 40 hospitals in India.
- Other companies in the fray include SIRO Clinpharm, one of India's first contract research organisation Wellquest, the independent clinical research division of Nicholas Piramal India Limited and Ranbaxy Laboratories Ltd., Indian pharma research & pharmaceutical company India.
- Matrix laboratories Ltd. engaged in the manufacture of Active Pharmaceutical Ingredients (APIs) and Solid Oral Dosage Forms has diversified into this business. This diversification helped the company’s revenue grow to $10 million, registering a growth of 500%.
- Chembiotek Research International a high end integrated contract research organization located in Kolkata, capital city of the North-Eastern state of West Bengal, India have increased their research facilities. In addition to their Kolkata centre they have started full fledged operations in Pune, a historical city located in the western Indian state of Maharashtra.
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| REAL ESTATE: |
| Cement Industry poised for huge growth in India |
- India is the second largest producer of cement following China producing
about 142 million tonnes accounting for 6.4% percent of the world
production which is about 2.22 billion tonnes.
- Large cement companies in India have registered an average growth rate of about 95%, owing to the recent boom in the housing sector.
- Average net profit of these companies has increased more than 100%.
- Cement production has grown at the rate of 13.3% year-on-year compared to 3.6% in the previous accounting period.
- Clinker and Cement exports poised to reach 10 million tonnes for the
current year, with a large part of the export being consumed by Gulf
countries, Iraq and Afghanistan.
- Cement Industry in India has attracted foreign investments from
International cement companies namely, France's Lafarge Group, Holcim Ltd
from Switzerland, Italy's Italcementi Group and Germany's Heidelberg
Cement.
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| $50 billion market in
November 13, 2006 |
- India’s Real Estate sector is expected to grow at a compounded annual
growth rate (CAGR) of 30% over the next 5 years to $50 billion from $12
billion currently.
- Overseas funds announced so far for investment in Indian real estate: about $7 bln.
- Foreign Direct Investments (FDIs) in the sector in last 12 months: $600 million.
- Expected FDIs in the sector expected to touch $15-$16 billion by 2012.
- India offers commercial rental yield in the range of 9% - 10.5% and Returns on Investment (RoI) in the range of 20%-25%
- Real Estate Initial Public Offerings (IPOs) and follow on public issues
in the pipeline:
- DLF Universal Ltd, the largest real estate developer in North India: IPO
- Ansal Properties & Infrastructure Ltd (Ansal-API), India’s leading
infrastructure development company: Follow-on public issue
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| Overseas realty funds pledge large investments in India September 21, 2006 |
- Overseas funds announced so far for investment in Indian real estate: about $7 bln
- Foreign direct investment (FDI) in real estate in last 12 months: about $600 mln
- International Real Estate Fund started by India’s largest housing finance company Housing Development Finance Corporation(HDFC): $720 mln
- Real estate fund by an Israel-based financial services company Clal Insurance Enterprises Holdings: $700 mln
- India Property Fund of JP Morgan Asset Management, New York-based global investment manager: $360 mln
- HDFC’s India Real Estate Fund: $216 mln
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| RETAIL: |
| Boom in india
November 13, 2006
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- The retail market in India is ranked second in the Global Retail Development Index of 30 developing countries drawn up by AT Kearney, the world's second largest high-value strategic management consulting firm.
- With organized retail segment growing at the rate of 25 -30% per annum, revenues from the sector is likely to triple to $24 billion by 2010 from the current $7.7 billion.
- The share of modern retail is likely to grow to about 15%-20% in the next decade from its current 2%.
- Wal-Mart Stores, Inc., the largest retailer in the world has big plans for the Indian market. It has sourced more than $600 million worth of goods, up from $400 million last year.
- Mothercare PLC of U.K., specializing in products for expectant mothers and merchandise for children up to 8 years and Shoppers’ Stop, the largest retail stores chain in India have teamed up and revised their initial target of 40 outlets in India when they opened in Apr 2006 to more than 100.
- McDonald's Corporation, the world's largest fast food chain is planning to set up “drive thru” restaurants at Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL), petroleum refining enterprises owned by the government of India, petrol pumps by June 2007 with plans of about 100 restaurants in the next three years.
- Reliance Retail, a subsidiary of India's largest private sector company Reliance Industries Ltd is set to launch its private label across half a dozen product categories in the market which will be distributed through the supermarkets.
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| Organised Retail to triple by 2010: October 06, 2006
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- Organised retail sales projected to reach $23 billion by 2010, three times of the current size of $7 billion
- Retail boom spreading to tier II and tier III cities also
- 361 malls under construction across India, out of which 227 are in the top 7 cities and the rest in smaller cities
- Real estate fund by an Israel-based financial services company Clal Insurance Enterprises Holdings: $700 mln
- 35 hypermarkets and 325 large department stores also under development
- Additional 25.39 mln sq. ft. of retail space being developed, against the currently available 10.6 mln sq. ft.
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| A lot can happen over a cup of coffee! October 06, 2006 |
- Organised retail business of coffee in India: $17 mln
- Annual consumption: 80,000 tonnes (up from 55,000 tonnes in 1991)
- Potential for retail outlets: 3000
- Planned investment in India by Britain’s Costa Coffee in the next 4 years: $33 mln (Rs. 150 cr)
- Barista, the largest Indian coffee chain, to invest in 2006-07: $8.8 mln (Rs. 40 cr)
- The number of outlets Café Coffee Day, the second largest coffee chain of India, wants to open by June 2007: 500
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| Reliance Retail bets big September 21, 2006 |
- Planned investment by Reliance Retail, a subsidiary of India's largest private sector company Reliance Industries Ltd: $5.4 bln (Rs. 250 bln)
- Reliance Retail’s turnover target by 2010: $21 bln (Rs. 1000 bln)
- India’s total retail market: $202.6 bln
- Current market size of the organised retail segment: $7.7 bln
- Current share of organised retail in the total retail market: 3.8%
- Expected share of organised retail in the total retail in next 10 years :15-20%
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| TELECOM: |
| India contributes 10% of global mobile growth, adds record 6 mln in August September 21, 2006 |
- Average monthly new mobile subscribers in the world over past year: 40 mln
- Monthly new mobile subscribers in India over past year: 5 mln
- New subscriber additions in India in August 2006: 6 mln (the highest in the world)
- Global mobile subscriber base crossed 2.5 bln in September 2006
- New mobile subscribers in the world in the last 12 months: 500 mln
- New mobile subscribers in India in the last 12 months: 50 mln
- Top three countries in new mobile subscribers: China, India, Russia
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| India adds 5 million mobile users in July
September 01, 2006 |
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In the month of July, mobile operators added 5.28 million new subscribers while the fixed line subscriber base declined by 0.06 million. This resulted in a net increase of 5.22 million new telephone subscribers in India in July. With this, the total telephony subscriber base now has touched the 158.59-million mark, compared to 153.37 million in June. The tele-density reached 14.40 by July-end compared to 13.95 at the end of June. By July end, the total fixed line user base stood at 47.36 million and the mobile user base at 111.23 million.
The gross addition of mobile and fixed line subscribers in the first four months of 2006 is 18.77 million compared to 8.88 million during the corresponding period in the previous year. In the first four months of 2006, there was an addition of 18.19 million new subscribers in the mobile segment compared to 7.62 million subscribers in the corresponding period of FY 2005-06. During these four months of this current financial year there was an addition of only 0.58 subscribers in the fixed line telephony compared to 1.26 million during the corresponding period in the previous year.
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Mobile value added services expected to grow 10-times by 2010 August 01, 2006 |
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The mobile value added services (MVAS) industry has reached the level of $105 million (Rs. 500 crore). The MVAS market is expected to grow 10 times to reach $1.05 billion (Rs. 5,000 crore) by 2010. MVAS industry has clocked 100% year-on-year growth for the last two years, and the phase of high growth may continue for next five years. India’s number one private television network STAR commands biggest 25% share of the SMS-based infotainment services, while Sony Entertainment, a venture of U.S.-based Sony Pictures Entertainment in India, Mauj Telecom, India’s leading Telecom solutions company and New Delhi Television (NDTV), India’s largest private producer and broadcaster of news, current affairs and entertainment programs are the other major players in the segment. The value added services are currently providing about 10% of the total revenue of telecom operators.
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Web browsing on mobile not catching up yet August 01, 2006 |
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About 56% of Indian mobile subscribers now own a web-enabled handset, but hardly use it for web browsing. Only 1% of the mobile subscribers having a web-enabled handset actually use it for web browsing. Consumers in India engage in text messaging only and have not yet adopted mobile web browsing. Japan has the highest penetration of web-enabled phones as well as mobile internet usage with 76% people having web-enabled phones. Out of these 76% people, 40% use their handsets to surf the net.
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India’s telecom services industry reaches at about $20 billion in 2005-06 July 17, 2006 |
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Telecom service providers in India posted revenue of about $19.5 billion (Rs. 879.62 billion) in the financial year 2005-06, a growth of 30% compared to $15 billion (Rs. 675.23 billion) of FY 2004-05. The private sector companies contributed about 85% of the total growth of $4.5 billion (Rs. 201.69 billion) in FY 2005-06, but narrowly missed overtaking the public sector companies i.e. the government owned companies. Public sector companies had revenue of $9.86 (Rs. 443.71 billion) while private sector companies generated revenue of $9.68 billion (Rs. 435.91 billion), missing the target by just $173 million (Rs. 7.80 billion).
With a growth rate of 9%, and revenue of $8.77 billion (Rs. 395 billion), government-owned Bharat Sanchar Nigam Limited (BSNL) remained the top service provider. Its closest competitor Bharti Airtel brought in $2.6 billion (Rs. 116.63 billion), growing at 46%. Reliance Communication grew at 109% to clock revenue of $2.5 billion (Rs. 112.88 billion) and become India‘s third biggest telecom service provider.
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India joins the 100-million mobile club July 17, 2006 |

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As far as the number of mobile subscribers is concerned, India is now placed at the fifth position on the global list. China with 404 million subscribers, U.S. with 185 million subscribers, Japan with 150 million and Russia with 140 million mobile subscribers are the other countries ahead of India. India recently crossed the 100-million milestone when operators added close to 4.2 million new mobile subscribers in May 2006. Germany, Italy, the U.K. and Brazil are the countries behind India in the top-10 list. In terms of percentage growth rate, India is the fastest growing market, and in terms of absolute numbers, India is the second fastest with 4 million new subscribers being added every month on an average.
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Handsets outscore subscribers July 17, 2006 |
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More than 15 million handsets have been sold in the last three months, which is more than the number of subscribers added during the period.
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500 Million phones by 2010 July 04, 2006 |
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India is expected to reach the magic figure of 500 million phone subscribers by 2010 and the target is quite achievable. The current subscribers’ base in the country is 150 million including 100 million mobile phone subscribers. The target for 2007, which has already been announced earlier, is 250 million new phone connections. Mobile phone companies added 4.25 million new subscribers to reach the subscriber base of 101.17 million. On the other hand, the fixed line subscriber base shrunk by 0.11 million to finish at 47.40 million. |
| General |
| India’s exports increase 57% in November 2006
26th December, 2006 |
- India’s total exports in November 2006 at $9.68 billion, up 33.6% from $7.24 in November 2005.
- Imports in November 2006 at $15.87 billion, up 43% from the same month last year.
- India’s trade deficit widened to $6.2 billion, compared with $3.87 billion in November 2005.
- Exports in April-November 2006 at $79.59 billion, up 39% from $64.17 billion in April-November 2005.
- Imports in April-November 2006 at $115.63 billion compared with $93.23 billion in the first eight months of 2005-06; a growth of 22.3%.
- Trade deficit widened to $36.04 billion in April-November 2006, compared with $64.17 billion in the same period year-ago.
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