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Market Entry Partnerships Growth
Smart Cities & Urban Development
November 2015
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India Today & Tomorrow
India Today - 2015 India Tomorrow - 2030
• Total population of 1.2 billion • Population Growth Rate: 1.28 % • 31% of the population living in urban areas • Urban areas contribute 60% of the current GDP
• Total population of 1.4 billion • Urban population to increase to 590mn • 41% of the population living in urban areas • Urban area contribution to GDP to be ~75%
India ranks 135 among 182 countries in terms of quality of life
India’s rank may slip further down if the urban infrastructure is not upgraded
SMART CITIES & URBAN TRANSFORMATION ... NEED OF THE HOUR
SMART CITIES Schemes & Projects
100 SMART CITIES Ministry of Urban Development Budget allocation of €140 mn per city
60 GREEN CITIES Ministry of Urban Development 60 Green Cities Project to focus on creating solar driven infrastructure
SMART PORTS Ministry of Shipping Transformation of 12 Port Cities into Smart Cities by creating world-class port
HARIDAY Ministry of Tourism Budget of €710 mn for infrastructure development of 12 heritage cities
INDUSTRIAL CORRIDORS Ministry of Commerce & Industry 5 corridors connecting the main cities
BILATERAL PROJECTS Singapore/Japan/ Spain Capital City of AP under Singapore Varanasi under Kyoto DDA* – Barcelona
OTHER NEW CITIES State Driven Projects 7 Smart Cities Project – MP Naya Raipur – Chattisgarh GIFT – Gujarat
NIRMAY GANGA Namami Gange Program Multi-Stakeholder Programme to clean and maintain Ganga river front towns/ cities
DDA: Delhi Development Authority
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Smart City Model Key Components : Urban Component
Smart Living
Smart City
Smart Environment
Smart People
Smart Mobility
Smart Governance
Smart Economy
Energy Management • Smart grid and meters • Smart street lighting • Advanced distribution management system with supervisory control
• Solar energy initiatives • Energy-efficient and green buildings
Urban Mobility • Intelligent traffic management systems • Integrated multi-modal transportation • Electric cars • Environment sustainable mobility plans
E- governance and citizen services • Smart online municipal services • M-governance • Participatory government • Single-window clearance for businesses • Disaster management solutions • GIS maps for city departments performance efficiency • Integrated operation among various departments • Data analysis and insight creation
Smart Spaces • Building automation • Micro infrastructure such as sensor networks • Urban heating and cooling systems • Advanced HVAC and lighting equipment
Smart Environment • Green buildings • Green data centres, • Pollution control systems, monitoring toxic gas levels
• Meteorological station network • Earthquake early detection Noise urban maps
Smart Communication • Optical fibre connectivity • City-wide Wi-Fi connectivity
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Smart City Model Key Components : Social Component
Smart Living
Smart City
Smart Environment
Smart People
Smart Mobility
Smart Governance
Smart Economy Water management (Water)
• Smart meters and management • Leakage identification and preventive maintenance • Water quality monitoring
Smart education • Digital education • Smart schools or colleges • Simulation labs and incubation centres • Student teacher and parents holistic
connectedness
Smart surveillance • Surveillance cameras and command centres
analytics • Situational awareness and analysis • Simulation modelling and crime prevention • Smart policing • Home security systems
Smart hospitals • Improved clinical workflows • Telemedicine • Enhanced patient interactions • Certified smart card readers for patient data security • Updated healthcare information systems • M-healthcare
Waste management • Real-time information of containers and waste bins • Automated scheduling of waste collection and
disposal • Van roaster management and optimization of
resources based on actual requirements
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Execution Strategy
Phase 1 Analysis & Assessment Assessing city demographics, profile, social and physical infrastructure to support current city requirements and its preparedness to transform into a smart city
Phase 2
Phase 3
City transformation • City planning (master and ICT) • Financial models • Technical capacity development • Prioritisation and implementation planning • PPP modelling • City operation model • PMO for successful execution
Clear, ambitious and widely shared vision
Consulting External Stakeholder
Internal Stakeholders
Successful execution of strategy
Delivery of outcomes
Reassessment of city vision Assessment for city evolution
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100 smart cities
HRIDAY
GIFT City NRDA Industry
corridors
DDA smart city
Varanasi- Kyoto
Resilient cities
Namami Gange
Wave City Lavasa Palava
Smart energy management √ √ √ √ √ √ √ √ √ √ √ √
Smart water management √ √ √ √ √ √ √ √ √ √ √ √
Smart waste management √ √ √ √ √ √ √ √ √ √ √ √
Urban mobility √ √ √ √ √ √ √ √ √ √ √ √ e-Governance and citizen services √ √ √ √ √ √ √ √ √ √ √ √
Smart environment √ √ √ √ √ √ √ √ √ √ √ √
Smart spaces √ √ √ √ √ √ √ √ √ √ √ √ Smart surveillance √ √ √ √ √ √ √ √ √ √ √ √
Smart healthcare √ √ √ √ √ √ √ √ √ √ √ √ Smart education √ √ √ √ √ √ √ √ √ √ √ √ Smart communications √ √ √ √ √ √ √ √ √ √ √ √
With promising prospects for smart cities in India and an array of benefits for city stakeholders, smart solutions are expected to further drive growth in conventional engineering and design services as well as new services. This is likely to expand the market prospects for global vendors in India and provide a platform for them to export their services.
Concept Stage Design Stage
Execution Stage
√ Yes √ Partial √ No
Opportunity Landscape
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69 cities: 54% of GDP Andhra Pradesh Visakhapatnam, Vijaywada
Bihar Patna
Chattisgarh Raipur, Durg
Gujarat Ahmedabad, Surat, Vadodara, Rajkot
Haryana Gurgaon, Faridabad
Jharkhand Jamshedpur, Dhanbad, Ranchi
Karnataka Bengaluru, Mysore, Hubli-Dharwad
Kerala Kochi, Kozhikode, Malappuram, Thrissur, Kannur, Thiruvananthapuram, Kollam
Madhya Pradesh Indore, Bhopal, Jabalpur, Gwalior
Maharashtra Mumbai, Pune, Nagpur, Nasik, Vasai, Aurangabad, Solapur, Bhiwandi
Orissa Bhubaneshwar
Punjab Ludhiana, Amritsar, Jalandhar
Rajasthan Jaipur, Kota, Jodhpur, Bikaner
Tamil Nadu Chennai, Coimbatore, Madurai, Tiruchirapalli, Salem
Telangana Hyderabad
Uttar Pradesh Lucknow, Varanasi, Ghaziabad, Kanpur, Agra, Meerut, Allahabad, Moradabad, Bareilly, Aligarh, Noida, Gorakhpur, Saharanpur
West Bengal Kolkata, Asansol
Others Delhi, Goa, Chandigarh, Pondicherry
• Agartala • Aizawl • Dehradun • Dispur • Gangtok • Imphal • Itanagar • Jammu, Srinagar • Kohima • Shimla
• Amaravati • Ajmer • Badami • Dwarka • Gaya • Mathura • Puri • Warangal
12 state capitals
8 tourist or religious heritage cities
• In January 2015, the Ministry of Urban Development (MoUD) announced the mission to roll out 100 smart cities across the country under national priority.
• These smart cities will leverage innovation and technology for e-governance and the Digital India initiative.
• Also, they will focus on employment generation, involve citizens in decision-making and policy execution, as well as improve the quality of life.
100 Smart Cities
Multiple Distributor Model
Single Distributor Model
Direct Commercial Presence Model
India Entry Option
Licensing Route
Joint Venture Route
Industrial Presence
India Entry Options
Commercial Presence
Own Setup Route
For companies that have high value added niche products
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For companies that have medium to high end general products and services
Models To Setup Industrial Presence
Indian Partner Complementary Service Portfolio
• Extensive Market Knowledge • Complimentary service portfolio • Local Sourcing & Execution Capabilities • Marketing & Sales Capabilities
Tentative Roles & Responsibilities
• Greenfield initiative will ensure that market objectives are in line with Italian Company’s expectations and standards
• Strong local understanding of market dynamics to continuously adapt to product characteristics and designs
• Opportunity to leverage the cost advantage and India presence to other other South Asian markets, if desired
Advantages / Benefits
Target Market
Joint Venture
Challenges
• Indian partner may seek a substantial role in the overall operations, leading to conflicts between Italian company and the Indian partner
• Long drawn negotiations to define all aspects of the Joint Venture/Licensing
• Longer/delays in awarding the projects
Italian Company Indian Partner
• Technology and design know-how
• Project management support
• Training • Marketing, sales • Quality Control
• Sales and marketing, pricing and local inputs
• Business development in India
• Sourcing capabilities • Local engineering &
construction capabilities
Joint Venture NewCo
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Licensing
Italian Company
Multiple Distributor Model
Italian HQ Asia/India Manager
Distributor 1
Distributor 2
Distributor 3
Single Distributor Model
Italian HQ Asia/India Manager
Pan India Distributor
Direct Commercial Presence Model
Italian HQ Asia/India Manager
Sales Personal
Technical Manager
Newco Wholly Owned Indian Subsidiary
Director Of Sales
Distributor 1
Distributor 2
Distributor 3
Distributor 4
Models To Setup Commercial Presence
Model 1 Model 2 Model 3
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Commercial Presence: Comparative analysis
Single Distributor Model Multiple Distributor Model
Direct Commercial Presence Model Factors
Investment Low Low Relatively High
Future Expansion &
Scalability
Market Intelligence
Product Focus &
Sales Efficiency
Geographical Reach
Nil Low High
Nil Low High
Moderate Product Focus Low Sales Efficiency
Moderate Product Focus Moderate Sales Efficiency
High Product Focus High Sales Efficiency
Low Moderate High
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Steps For Success In The Indian Market
PLANNING FOR TOMORROW SIMPLIFIED PROCESSES SEAMLESS EXECUTION
• International company should c o n d u c t a n i n d e p e n d e n t investigation on the Indian market to understand the potential that it offers.
• Define annual qualitative and quantitative targets for the Indian market.
• Define a road map and budgeting system to achieve the target by prioritizing on key products/services, market segments and geographies
• Setup reporting systems to encourage involvement and share responsibilities.
• Reporting system should have high element of follow-up and feedback mechanism.
• Setup internal and external systems and processes to execute sales and after sales support.
• Clarity in communication and e x p e c t a t i o n w i t h t h e distributors.
• Business aspects such as minimum stock purchase, cost sharing on fairs, definition of consumables vs warranty parts should be clearly defined in the agreement.
• Rigorous fol low up wi th distributors and market feedback on the products.
• Continuous study of the market and customizing the product based on market demand.
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ITALY Corso Venezia 36
20121 Milano Phone: +39.02.89053850
Fax: +39.02.89053860
USA 1432 K Street NW Washington DC
20005 Phone: +1.202.7890001
Fax: +1.202.7890009
INDIA Fairlink Center Off New Link
Road Mumbai 400053
Phone: +91.22.40393710 Fax: +91.22.40168369
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