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CME’s Global Business Exchange 2010
A presentation
on
Opportunities in India by Alex Alagappan, Partner, Rmagine
Doing business with India is
like losing weight…
…you got to DO something about it
Both are bottom-line driven
Rmagine?
www.rmagine.com • Toronto based Market
Entry Strategy Consultancy
• Work with Canadian & US companies. Focus on India & the Middle East
The India Opportunity, defined
From Emerging to Surging India
Consumers
The demographics
Consumption Levels
Low per capita
Cost
What money can buy
Skill/ Talent
Knowledge workers
Aspiration
Attitude change
Affluence
Economy, Job quality
India Opportunity: A Peep
ENTERTAINMENT
STEEL
Multiplexes: 700 TO 1600 IN 5YRS
Signed: 221MOUs’. $ 238 B Inv. 2nd largest by 2016
RAILWAYS
TELECOM2nd largest Network. $ 11 B Inv. in 5 Metros. 4 more in the works
16.3 MM in May ’10. 617 MM Total subscribers
India Opportunity: A Peep
AVIATION
RETAIL
$110 B in aircraft. $30 B in infrastructure
$ 353 B 2010- $ 543 B by 2014. 55 MM sq.ft. addition
India Opportunity: A Peep
EDUCATION
TOURISM
$100 B Inv. next 5 years
$ 266 B by 2019;CAGR 2004- 09- 16.4%
India Opportunity: A Peep
HEALTHCARE
REAL ESTATE
$ 35 B to 77 B by 2012; 23%growth per annum
PWC Study- Top Asian mkt in 2010; FDI $ 2.8 B in 2009-10
India Opportunity: A Peep
So…what’s in it for me?
Two sectors ; two SME industries
Canada’s favorite
The auto sector
XYZ Auto Inc: Injection moulded plastic products supplier to the auto industry
The Indian Auto & the Auto components Industry
India- Auto Industry
• Will be world’s seventh largest by 2016 & third largest by 2030, behind China & the US
India- Auto Industry. The road ahead
Nissan Micra. Just commenced production in Chennai
Ford Investing $500 million- India to be hub + CofE for small cars
Volkswagen 400000 cars to be sold in 10 years. $791 million Investment
Daimler AG.
Investing $411 million
in JV. Manuf. C
V
>2tonne
Audi. To assemble A4.$30 million
Toyota. 2nd plant. Initial production cap: 100,000
GM. $60 million. Tech. Center-future tech/ new designs
Hyundai. $250 million by 2013. Cumulative Inv. $ 1 billion
India- Auto Components
What do you think Burlington’s XYZ Auto Inc should do?
Be on that next flight out to India?
Canada’s Best
Food ProcessingOntario: one of the largest and most competitive food clusters in North America, 3rd largest food processing
mkt. Annual sales > $32.3 billion.
The Cake Shop of Canada
India- Food Processing
• Food market: to grow to $300-billion by 2015 from $190-billion, now
• Food processing industry estimated at US$ 70 billion • Significant growth: from seven percent in 2002-03, to 13
percent in 2006-07 • Estimated to grow at 9-12 percent in the near future
• Food Exports in 2007-08 up by 38%. US$ 6.59 billion
India- Food Processing
• Fruit and vegetable processing: 10 % of production by 2010. 25% by 2025
• High growth segments• confectionery (22%)• branded flour (16%)• bakery items like bread, cakes (11%)• biscuits (16%)• fruit juices, pulp and concentrate (18%)• sauces/ketchups (17%)
Food Retail
Food & Grocery Retail- $ 819 million in 2004 to $ 28.5 billion in 2015
India- Food Processing
Allied Opportunities
• Indian food processing industry will require investments of around US$28 billion by 2012. The Ministry of Food Processing has identified the following areas of investment:• Mega food parks • Agri-infrastructure and supply chain integration• Logistics and cold chain infrastructure• Fruit and vegetable products• Animal products, meat and dairy• Fisheries and sea food• Cereals, consumer foods and ready-to-eat foods• Wine and beer
• Machinery and packaging.
Bombay’s Cake Shop of Canada
….soon?
Rmagine- Your Chief Strategy Officer
• Manage your desk research & analysis
• Craft Market Entry Strategies
• Provide quick connect to potential buyers/partners
• Mitigate risk
Our Learning Curve-
projects from the
who’s who of business
• Strategy Consultant of the Business Development Bank of Canada- for BDC’s SME clients who intend to expand into India & the Middle East
Roster Consultant to BDC
4’ 8.5’’
The space between the rails across US and Canadian railroads, today, is a weird 4’ 8.5” or 143.5 cms. Where did that come from?
143.5 cms?
• That came from the English who built the first railroad with that width, which actually came from their tramways, having the same width. Where did that come from?
• From the wagons that were driven in the old days. The width of the wheels were the same and the same jigs and tools were used for the tramways. But why did the wagon wheels have that width?
• Because if they did not, the wheels would break in the ruts that were there in olden day long distance roads in medieval Europe. And where did the ruts come from?
• From Roman chariots, two thousand years back as they criss-crossed Europe. And they were built with that width to accommodate, very simply, two horses’ backsides.
Business needs to shed its mental shackles, break free of old habits in today’s new world
Fast forward today’s space age and space shuttles. The two booster rockets are built in Utah. The engineers would have loved to build it bigger. But no. The trains carrying them to the launch site can’t take a wider payload, considering the tunnels that they had to pass through, whose width of course was based on 143.5 cms. Going to prove how we are all creatures of habit. If only…we had challenged that 143.5 cms…?
Canada’s International Entrepreneurs
Only then, will today’s entrepreneurs of Canada be hailed as
www.rmagine.com Market Entry Strategists
MIDDLE EAST CANADA US INDIA
Strategy Consultancy
