Академический Документы
Профессиональный Документы
Культура Документы
The Indian economy has witnessed an unprecedented growth. Booming Indian services and industry sector are providing the required impetus to the economic growth
22 2 22 2 USD Billion 22 2 22 2 22 2 22 2 22 2 2 22- 2 2 22 22- 2 2 22 22- 2 2 22 22- 2 2 22 22- 2 2 22 GDP at Constant Prices
Contribution of Services increased from 49 percent to 55 percent
8.4%
22 2
Indian economy is the 4th largest in terms of PPP USD 4.1 trillion in 2006
The sound performance of each industry segment is leading to the overall robust performance of the Indian economy
USD Billion
700 600 500 400 300 200 100 0 205 104 103
168 117
347
2006-07
at present level of Forex reserves, the country has adequate cover for 12 months of imports
Steadily increasing Forex reserves offer adequate security against any possible currency crisis or monetary instability
Forex reserves witnessed an increase of 200 percent for the period 1990-2007
Ratio
21.1
20.4
19
16
Increased confidence of investors in Indian companies have led to a surge in cross border borrowing by the corporate houses
13
the decreasing external debt to GDP ratio indicates that India has a sound economic platform
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
10
Acceptance of Indian products along with the cost advantage has provided an edge to Indian companies
Quality and cost advantage are the two important parameters leveraged by the Indian producers to increasingly market their products and services
USD Billion
Indian companies have chalked out extensive plans to increase their presence abroad
India's Import: 2002-07 (till February 2007) 180 160 140 120 100 80 60 40 20 0 149.65 111.89 61.52 78.28 162.30
Petroleum products are the major contributors towards Indias growing imports
2003-04 2004-05 2005-06 2006-07 (upto Feb. 07)
2002-03
With improved performance on PE ratio and ROE, Indian markets have attracted large investments
18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 4,222 3,134 2,634 3,755
180 percent Increase
USD Million
5,546
FDI inflow for the period 2006-07 witnessed a growth of 180 percent over the same period last year
Net FII into India: 2001-07 12 10 USD Billion 8 6 4 2 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 1.80 0.60 10.00 10.20 9.40 6.72
Mauritius has been the largest contributor towards FDI into India..
18 15
Sensex The Bombay stock exchange index has risen 15 times from 1990s to reach 15,000 mark in July 2007
Emergence of industry and confidence of local investors along with the FIIs has led to increased movement of sensex
7/1/1997 7/1/1998 7/1/1999 7/1/2000 7/1/2001 7/1/2002 7/1/2003 7/1/2004 7/1/2005 7/1/2006 7/1/2007
USD (Mn)
518 1,375 1,133
SECTOR
Manufacturing Media Oil & Gas Pharma & biotech Telecom Others Total
USD (Mn)
933 630 384 2,520 2,198 4,006 20,305
Number of deals
Electrical and Electronics 896 Energy FMCG, Food and Beverages IT and ITES 1,484 1,327 2,903
Trends: Ratio of the Size of acquisition to the size of acquirer has grown from 10 percent in 2004 to 25 percent in 2006. Cross-border deals are growing faster than domestic deals Private Equity (PE) houses have funded projects as well as made a few acquisitions in India
In 2006, there were a total of 480 M&A deals and 302 private equity deals Average deal size close to USD 36 million Contribution of private equity deals to total number of deals have increased from nearly 9 percent in 2004 to 28 percent in 2006
Tata Steel buys Corus Plc Tata Steel buys Corus Plc
USD 6 billion
Essar Steel acquired Algoma Steel Essar Steel acquired Algoma Steel
Suzlon Energy Ltd. acquires REpower Suzlon Energy Ltd. acquires REpower
Videocon Industries acquired Daewoo Videocon Industries acquired Daewoo Electronics Corporation Limited Electronics Corporation Limited
10
Plans to spend on its development operations Plans to spend on its development operations in India over the next four years in India over the next four years
Plans investment in private equity, real estate, Plans investment in private equity, real estate, and private wealth management and private wealth management
USD 1 billion
Aditya Birla Group increased its stake in Idea Aditya Birla Group increased its stake in Idea Cellular by acquiring 48.14-percent stake Cellular by acquiring 48.14-percent stake Renault, Nissan and Mahindra & Mahindra has Renault, Nissan and Mahindra & Mahindra has initiated a Greenfield automobile plant project initiated a Greenfield automobile plant project in Chennai. in Chennai. Mylan Laboratories acquired aamajority stake in Mylan Laboratories acquired majority stake in Matrix Laboratories Matrix Laboratories
India has been ranked superior to other major countries by many prominent surveys
2007 Global Services Location Index India 3.2 2.9 2.8 3.2 2.6 3.3 1.3 1.2 1.8 1.5 2.3 2.3 2 1.6 1.5 1.1 1.4 1.4
100 80 GRDI Score 60 40 20 0 India Russia Vietnam Ukraine China Chile Latvia
AT Kearney placed India among the top three in its FDI confidence index
the retail market along with the services sector has been attracting the interest of major players
GDP Growth Rate (%)
India is expected to outperform its rivals in the BRIC, in terms of GDP growth rates, from 2015 onwards
0 2005-10 2010-15 2015-20 Brazil 2020-25 2025-30 China 2030-35 India 2035-40 Russia 2040-45 2045-50
12
Population (million)
9 48 221 726
2001-02
2005-06
2009-10(E)
* In PPP terms
USD
Increasing per capita income and large population moving into middle class has led to high level of consumerism in India
651
Increasing per capita income coupled with an emerging middle class has provided the necessary impetus to consumerism in India
2003-04
2004-05
2005-06
2006-07
13
In Million
22 2
Countries worldwide are anticipating a shortage of working population in the future. India is expected to emerge as a clear winner, and by 2050, it will have the largest working age population.
14
2010 2010
GDP USD 900 billion GDP growth rate 9%
2008 2008
GDP USD 750 billion GDP growth rate 9.5%
Services contribution 60-65 % FDI limit is expected to be 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc. Balance of Trade Should be positive with increased level of exports as compared with imports Investment goal USD 370 billion
2006 2006
GDP USD 590 billion GDP growth rate 9 % Services contribution 54 % FDI limit not 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc. Balance of Trade USD (-)46.2 billion Investment goal USD 250 billion
Services contribution 60 % FDI limit is expected to be close to 100 percent in major industry sectors such as Telecom, Semiconductors, Automobiles, etc. Balance of Trade Should increase with surging exports as compared with imports Investment goal USD 305 billion
15
By 2032, India will be among the three largest economies in the world.
US Department of Commerce
We came to India for the costs, stayed for the quality and are now investing for innovation.
The Indian market has two core advantages - an increasing presence of multinationals and an upswing in the IT exports.
Travyn Rhall, ACNielsen
- Dan Scheinman, Cisco System Inc. as told to Business Week, August 2005
16
DISCLAIMER This presentation has been prepared jointly by the India Brand Equity Foundation (IBEF) and Evalueserve.com Pvt. Ltd., EVALUESERVE (Authors). All rights reserved. All copyright in this presentation and related works is owned by IBEF and the Authors. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of the Authors and IBEFs knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. The Author and IBEF neither recommend or endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed in this presentation. Neither the Author nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.