VISHLESHAN INTERNATIONAL JOURNAL OF … 1 issue 4 july-sept 2016 vishleshan international journal of engineering & management (vijem) (an open access quartly

VOLUME 1 ISSUE 4 JULY-SEPT 2016

VISHLESHAN INTERNATIONAL JOURNAL OF

ENGINEERING & MANAGEMENT

(VIJEM)

(AN OPEN ACCESS QUARTLY JOURNAL)

EDITOR-IN-CHIEF

SUNITA RAMCHANDANI

ASSOCIATE EDITOR

DEEPAK MOTWANI

PROMOTED BY

VISHLESHAN EDUCATIONAL & SOCIAL WELFARE SOCIETY

(VESWS) BHOPAL

CALL – 0755-4273272 (O)

E-mail: [email protected], [email protected]

Website: www.vijem.com

ISSN (ONLINE):

2455-524X

V

I

J

E

M

Vishleshan International Journal of Engineering and Management

(VIJEM) Volume 1, Issue 4 (July-Sept, 2016) ISSN (Online): 2455 – 524X

Website: www.vijem.com Ph. (0755) 4273272 E-mail: [email protected]

Patron Prof. (Dr.) Anoop Swarup

Chairman, Global Knowledge Alliance, Melbourne, Australia

Vice Chancellor, Jagran Lakecity University, Bhopal

Advisors

Dr. Ashish Dongre

Director Technical Education, Government of M.P.

Chairman, Indian Society of Technical Education, M.P. & C.G.

Formerly Vice Chancellor, RKDF University, Bhopal

Dr. Justin Paul

Associate Professor, University of Puerto Rico

Ex. Prof. Indian Institute of Management (IIM), Indore

Editor-in-Chief

Ms. Sunita Ramchandani

Associate Editor Mr. Deepak Motwani




Editorial Board Members

Prof. (Dr.) C. M. Sadiwala

Principal, RKDF CTR, Bhopal

Ex. Prof. Maulana Azad National Institute of Technology (MANIT),

Bhopal

Prof. (Dr.) Atul Mehrotra

Director, School of Management (SoM)

Jagran Lakecity University, Bhopal

Prof. (Dr.) K. B. L. Shrivastava

Principal Vedica Institute of Technology,

Bhopal

Prof. (Dr.) Y. M. Dubey

Principal

Vindhya Institute of Technology &

Science, Jabalpur

Dr. Tarun Kushwaha

Associate Professor Prestige Institute of Management &

Research (PIMR), Indore Ex. Associate Professor, Symbiosis

Institute of Business & Management (SIBM), Pune

Dr. Shilpa Jain

Assistant Professor

Maulana Azad National Institute of

Technology (MANIT), Bhopal

Dr. Pooja Gupta

Assistant Professor School of Management (SoM)


Dr. Geetanjali Nilesh Bendale

Ex. Research Analyst, Nielsen India

Pvt. Ltd., Vikroli

Ex. Lectrurer Yadavrao Tasgaonkar

Institute of Management Studies &

Research, Mumbai

Dr. Shikha Bhargava

Head of the Department - MBA Oriental College of Management,

Bhopal

Dr. Priyanka Nema

Assistant Professor

School of Management (SoM)


Ex. Samsung C&T, Seoul South

Korea




Reviewer Committee Members

Dr. Ravindra Tiwari

Head of Department – MBA Patel Group of Institutions

Bhopal

Ms. Charu Modi

Lecturer, Bangalore International College

Bangalore

Mr. Lokesh Payasi Assistant Professor

Lakshmi Narain College of Technology – MBA

Bhopal

Mr. Bhuvanesh K. Sharma Assistant Professor

Balaji Institute of Modern

Management

Sri Balaji Society, Pune

Mrs. Sakshi Kamdar Lecturer, School of Management

(SoM) Jagran Lakecity University,

Bhopal

Ms. Komal Taneja Assistant Professor,

Jeev Sewa Sansthan Group of

Institutions for Women-

Faculty of Management, Bhopal

Mr. Amitesh Paul

Assistant Professor, RKDF University, Bhopal

Mr. Aditya Gupta

Assistant Professor,

Vedica Institute of Technology,

Bhopal

Mr. S. K. Tiwari

Assistant Professor, RKDF University, Bhopal

Mr. Ranjit Nikose

Assistant Professor,

Bhabha College of Engineering,

Bhopal




Message from Chief Editor’s Desk

Today, with emerging advancements in research & technology, entire world has

got connected through boundary-less networks of knowledge and information.

Vishleshan International Journal of Engineering and Management is an attempt

to document relevant and practical research work in wide range of areas from

various parts of the world in which any specific domain of these areas can be

taken into consideration for research paper. Practical applicability of research

and empirical findings are required to be the most important feature of each

article/research paper to be published in the journal. The basic intent of this

journal is to bring about revolutionary change in achieving professional and

academic excellence through action and applied research approach.

We have tried to carefully put together range of research areas for the first issue

and categorized specific articles/research papers in separate sections. I

acknowledge the involvement of number of people whose contribution made

this publication possible-Author who submitted articles/research papers,

Distinguished Promoters, Managing Editor, Patrons, Advisors, and Members of

Editorial Board, Members of Reviewer Committee.

We hope to be the first choice of top rated research work with high quality

submissions, strategic review and the most invigorated Advisory Board.

Sunita Ramchandani




Message from Associate Editor’s Desk

Welcome to VIJEM, 'Vishleshan International Journal of Engineering &

Management', a quarterly published, thoroughly reviewed scholarly journal.

VIJEM is a comprehensive channel for sharing the ideas & thoughts related to

science & management as it is concerned with the dynamic relations among

international academicians, students and practitioners regarding theories,

methods and applications with new developing perspective in the field of

science & management. We publish the journal in the electronic form over the

Internet. We hope that the journal would be of interest to researchers, engineers

and management practitioners over the world.

Finally, I would like to take this opportunity to cordially thank all the

contributors of VIJEM, members of editorial board, the reviewers, the authors

and mentors of "VIJEM", who helped to ensure that the goal of creating and

publishing the "VIJEM" journal would be realized.

Deepak Motwani




CONTENTS

S. No.

Title

Page No.

1 E-GROCERY RETAILING: THE NEXT BIG THING IN INDIA

Dr. Priyanka Rawal

1-14

2 WOMEN POWER IN DIGITAL INDIA

Arshi Gouhar

15-20

3 DIGITAL TECHNOLOGY AND YOUNG WOMEN EMPOWERMENT:

OPPORTUNITIES AND CHALLENGES

Malini Sharma, Pooja Khanna, Divya Gupta

Gunjita Dhingra, Snigdha Sharma

21-30

4 MAKE IN INDIA : CHALLENGES AND OPPORTUNITIES

Huma Butt, Dr. Chandralata Singh, Deepti Chouhan

31-36

5 A STUDY ON THE ATTITUDE TOWARDS FINANCIAL AWARENESS

IN EMPOWERING THE FEMALES IN INDIA, WITH SPECIAL

REFERENCE TO BHOPAL CITY

Dr. Pooja Gupta

37-44

6 A STUDY ON IMPACT OF BREXIT ON INDIAN IT SECTOR

Mr. Hitesh Punjabi

45-56

Vishleshan-International Journal of Engineering and Management

(VIJEM) Volume 1, Issue 4 (July-Sept, 2016)

ISSN (Online): 2455 - 524X


1 | P a g e

E-GROCERY RETAILING: THE NEXT BIG THING IN INDIA

Dr Priyanka Rawal


Abstract

“Food to the people is like people to a king “; this is an old Chinese saying which implies that

just like to remain on the throne a King has to rely on his people ,similarly common people for

their survival have to rely on food. Hence the significance of food is worldwide, where the retail

food industry plays a crucial part of the country‟s economic activity. Today everything is just a

click away from jewelries to laptops giving shopping a new destination. E commerce today has

become Omni present making its presence in the categories like apparels, fashion accessories,

shoes, electronics, real estate, groceries, vegetables, medicine and pharmaceuticals, education,

insurance and many other goods and services in the B2C space. Being one of the most

challenging sectors of the Retail market as of today, e-grocery can be seen as a result of latest

developments that marked the progress of the World Wide Web technology. Increased internet

penetration ,lesser intermediaries, reduced inventory, availability of much wider product range

compared to what is available at brick and mortar retailers, hectic life schedules & lack of offline

shopping time are enough reasons for e-grocery to be the next big thing in the Indian e

commerce industry. For any household the spending on grocery and daily essentials form the

largest and most consistent share of the wallet. You may be sitting there thinking that online

doesn‟t really work in grocery, but, looking at the lifestyle changes among Indian consumers,

organized food and grocery retailing in India is witnessing a revolution.. Rapid growth of

internet is forcing the existing retailers to make their presence in the digital marketplace as a

workable alternative to store based retailing. Paper studies the key characteristics of the online

consumer purchase decision making process along with analyzing the growing potential,

challenges and future of e grocery retailing with respect to Indian Market.

Keywords: e-grocery, digital marketplace, convenience, organized, retailing, E-Commerce,

online consumer.





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Introduction

Time has changed and buyers are now relatively at ease ordering apparel, shoes, electronics,

among many other product categories, online. Irrespective of the state of the economy groceries

sell all across the world as people can stop going to the cinema and restaurants, but there's no

way a life can be imagined without toothpaste, soap and, vegetables. Shopping these days is an

experience in itself where you have your own manageable cart which gets full by the time you

reach the billing counter. Even at that point if you forgot your favorite chocolate bars there‟s no

need to create a stir at a checkout line. Though the idea of purchasing groceries online has been

talked about from quite some time as the Internet, but its applicability has always been a

challenge. Inconvenient delivery timing and high cost has kept it a niche business in mostly

urban areas.

While Internet penetration today is only a third of that in the other three BRIC countries (Brazil,

Russia and China) , India stands on the cusp of dramatic growth in Internet and e-commerce

activity with more than 650 million Indians seen online by 2020 making India second only to

China in projected Internet users. A lot of these consumers will be women and “digital natives,”

born during or after the introduction of digital technologies, resulting in visible changes seen in

the retail environment and shopping practices. Online Indian population is large and growing

rapidly where it is projected to hit 650 million by 2020 and up to 250 million consumers will be

purchasing products/services online, spending more than US$50 billion. A minimum of $5

billion of that spending will be for fast-moving consumer goods. By FY‟2019 the Indian online

grocery market will be reaching Rs 2.7 billion mark.





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E-commerce in FMCG: A $5 billion opportunity by 2020

India being the sixth largest grocery market in the world is now all set to become an exciting

space and experience exponential growth with a large chunk of Indian population coming online.

The retail market in India is expected to hit $725 Bn (about INR 43 lakh crore) by 2017. Retail

consultancy Technopak estimates online grocery business to grow at a rate of 25-30 per cent y-o-

y basis in major cities of India. Indian retail market is expected to hit $725 Bn by 2017 where

online grocery business is expected to grow at a rate of 25-30 per cent y-o-y basis in major

Indian cities as per Retail consultancy Technopak. Also by 2020 India‟s online grocery market,

is expected to cross $25 billion which at present is likely to be less than $100 million. Among the

commonly purchased products online such as apparels and books Groceries stand out as they are

time-sensitive in terms of their delivery needs. In addition, groceries are known to be a

replacement product, i.e., the same basket of products is essentially purchased on a habitual

basis. Most importantly, consumers like to inspect the quality of items they are buying and thus

are high-touch items. These days, traditional bricks-and-mortars stores are progressively entering

the online market in an effort to leverage distribution efficiencies and creating brand awareness.





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In India, online grocery is all set to prosper and gain considerable market share of the Indian e-

commerce industry.

E-commerce can generally be understood as the buying and selling of goods and services via

Internet. For any B2C transaction over this channel or in other words making a sale online is

referred to as e-tailing. A website where people can buy food over the Internet to be delivered at

a later time is known as an online grocery store where consumers can browse through variety of

product categories similar to the manner one might walk throughout an actual grocery store.

Neighborhood Grocery stores have been offering delivery services since the 19th century. Even

though grocery delivery is not a novel idea, e grocery business is immature and is still in an

embryonic stage. Recent decades have seen grocers allowing customers ordering and receiving

food at their residence. Shoppers of today are sensual who prefer using their five senses to make

purchase decision. Considering groceries , in particular food, are the kind of produce where

consumers would wish to see, feel, smell, touch, and possibly taste in person before making a

final purchase (Underhill, 1999).Long working hours, rising internet penetration, hectic lifestyle

and tedious commuting along with Smartphone wave are giving space to online grocery players

to serve the consumers. Also with improving comfort with online payments, these days selling

groceries online has become fairly easy. Thus the ever-increasing significance of convenience

among consumers all over the world has shaped the online grocery industry to be a robust one.





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Source: http://cdn.inc42.com/wp-content/uploads/2015/05/penetrationretail.jpg

India is a leader in Internet connectivity growth in spite of having the smallest B2C E-Commerce

market size, predominantly through mobile devices. In terms of mobile shopper penetration India

tops many other countries, occupies third place among emerging markets and fourth among

Asia-Pacific countries. In emerging markets the key drivers of growth of E-Grocery rely on the

following factors i.e. greater than before penetration of internet, hectic lifestyles & deficiency in

having time for offline shopping. Also lower online prices as compared to brick and mortar retail

stores, attractive sales promotion schemes and availability of a wider product range in

comparison to what is accessible at brick and mortar retailers are making e grocery very

lucrative.

Long lines at the billing counter, difficulties in parking vehicles, too much crowd around, time-

consuming are the main hassles of doing groceries at the store and are the top reasons for

customers to indulge themselves in online grocery shopping. Convenience is the primary benefit

online grocery shopping has as it gives customers the ease of ordering online, where one can

quickly search for the products he/she needs and place an order without having to physically

walk through aisles. Also travel expenses and time going to the grocery store is saved. Taking

into consideration the wide availability of the Internet, grocery shopping can be done from





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remote locations or also in the middle of doing other work/activity, for instance placing an order

during lunch break at work. Since the food is delivered right to at the doorstep of consumers ,it

is a blessing in disguise for many who are engrossed in balancing their work life but still can‟t do

it very effectively. Also it is highly convenient for people who are physically unable to move

around easily. As food and other groceries are delivered at place of customer it costs extra

money, and the order cannot be owned immediately. It also required planning well in advance so

that groceries are available before he runs out of the stock. Another shortcoming is that online

shopping compels the customer to be at home during a certain specified period to receive the

order when it is delivered. In addition, E grocery stores will often cover specific geographical

areas where their supply chains are functional.

Creating Value Proposition

Customer value can be created by offering: Competitive prices; broad assortment of products;

providing superior shopping convenience along with giving superior customer service. For a

grocery retailer to set up a profitable e-grocery channel following points must be kept in mind .K.

Tanskanen, (2002) put forth that, these below listed actions together outline a blueprint for

setting up a winning e-grocery operation :

Building operating systems locally where customer density is existing should be the focus

As E-grocery as a business thrives on loyalty hence building and maintaining trust is the

key to success.

Having a good ordering interface and availability of product information are basic

requirements a web based portal should incorporate

E-Demand and e-Category management are powerful new opportunities in this

segment, hence should not be ignored.

The range of products offered should also include high margin non grocery products

along with effective logistics system to households, resulting in a strong base of

loyal customers.





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Consumer Behavior towards Grocery Shopping

With increasing number of working professionals, long hours of wait and being stuck up at

traffic, time shortage and the comfort of getting products of daily usage at doorstep, online

grocery shopping sites are boon for people, mainly in metro and other urban cities. If service is

flawless it will definitely result in popularity of such ventures .Grocery shopping though is one

of the daily time-consuming and arduous household tasks, but still it can be an inspiring moment

of enjoyment. Grocery shopping is typically marked by routine and are low involvement

products, making consumers spend as little time and effort as possible. Consumers tend to

allocate few cognitive resources to the buying process and they prefer to follow their previous

shopping experiences, which require bare minimum effort (Picot-Coupey, et al., 2009, p. 439).

Additionally, consumers experience grocery shopping as a physically and psychologically

stressful activity. Carrying heavy and bulky shopping baskets or routing the trolley through the

aisles of the supermarket store accounts to the physical labor by shoppers.

Grocery shopping usually requires a plan families have to organize the time and place of the

shopping, i.e. when to buy what products in what quantity and from which store. shopping trip

often becomes even more stressful in particular at peak times when the parking area and retail

store are extremely crowded apart from time pressure faced by consumer where he/she has to

hurry (Koch, 2012, pp. 32-37). In contrast, buying grocery shopping can be an inspiring „journey

of discovery‟, giving a feel of joy and delight to consumers. Consumers are also in the lookout

for new products in the grocery section and want to be stimulated by a shopping atmosphere that

is engaging enough (Rudolph, et al., 2009, p. 36). An ideal consumer for E-Grocery services

belongs to the age category between 25 to 44 years, holds at least a college degree, ha s a

household income between $50,000 and $100,000 and last but not the least is likely to have

children. They are also less price sensitive than in-store shoppers for the reason that they have

high opportunity costs of their time and give more preference and value convenience than

price.” (Casie Berning et al, 2004). Some very unique demographic statistics seen across the

country are –

11% of orders are done in the midnight slot i.e. around 10 pm





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29% of the orders for select major retailers are made by Institutional clients.

The largest adopters of e grocery shopping comprise of women aged between 30-35

largely due to convenience, safety and increased privacy.

Indian middle class is also expanding which do believe grocery shopping via internet as a

high value-add service.

Online purchase decision making process: Attracting customers to your e-store and stimulate

them to make a purchase, first of all it is essential to be aware of the online decision making

process (Karimi, Holland & Papamichail, 2013). To understand the initial step in the customer

value creation process it is important to know how customers use the online retail channel

(Croome, Lawley & Sharma, 2010, pp 20). Decision making isn‟t a logical problem-solving

issue always where customers go through all the stages which are explained briefly before

buying.

Step 1 - The customer will recognize the need or want to buy a product

Step 2 – The customer will then devise the decision problem.

Step 3 – Here the customer would go for searching the alternatives and will further make a

decision.

Step 4 – the customer in this stage develops appraisal, by reviewing the course of action and will

create a feeling of certainty and control.

Step 5 – this last step which can sometimes be quite complicated is all about the purchase

decision where the customer purchases the groceries. Here at times customers can still decide to

reschedule their buying decision or can make their mind to complete this stage through an offline

channel.

Once the customer does the final purchase, comes the post-purchase behavior which can include;

re-purchase, use of post-purchase services or will be spreading word of mouth publicity (Karimi,

Holland & Papamichail, 2013)





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Figure 2 – Online Decision Making Process

Source: (Karimi, Holland & Papamichail, 2013)

Market potential: An Overview

No one could ever imagine buying footwear /shoes, mobile phones, electronic items or apparels

online without trying or having a feel of them. But today reality is in front of us even though it

looked like an impossible accomplishment maybe 4-5 years back. Same logic applies to e-

groceries where 8 to 10 years ago when super markets started budding in India, people strongly

were of a belief that no one would ever ditch local kirana stores for fancy hypermarkets.

However more and more local grocery shops are now shutting down as compared to

supermarket outlets like Hyper city which are making huge profits due to „Convenience‟ being a

major factor in shifting consumer preferences. This mere “Convenience” is what exactly going to

be the magical calling card for E Grocery portals. With the Indian ecommerce turf heating up

like never before, what appears to be the next prospect on which focus is progressively shifting is

that of Online Grocery Industry. This is one such segment, which is yet to reach its full potential

in Indian market as it looks quite promising making it one of the new niche areas to thrive on and

gain substantial market share of Indian Ecommerce pie.





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Food being the basic necessity of people irrespective of their society status makes the grocery

segment hold a share of 60% out of the total market value of Indian retail market. Grocery e-

stores do hold a potential in India as can be seen in the market share which is estimated to be less

than $100 million currently and it predicted to cross $25 billion by year 2020. Indian online

groceries market is expected to reach Rs 2.7 billion by FY‟2019 as per the report given by Ken

Research report. Between 2016-2022 India's online grocery market is estimated to grow with a

compounded annual growth rate of 62 per cent making it a very promising industry. This market

on the e space is still nascent but the taken as a whole grocery market in India is by now worth

over US$ 360 billion (Rs 21,60,000 crore) which makes the country sixth largest grocery market

globally and is projected to touch US$ 1 trillion by 2020.the e grocery sales would be around 2

per cent of the grocery market by the year 2020 creating a budding market size of approximately

US$ 10 billion (Rs 60,000 crore).Big Basket, Aaramshop, Zopnow and Local Banya are the

major players in the market and have been operational for about three years each in their

respective cities of operations. The e-retail market has reached its apex of success and now it‟s

time for niche e grocery players to spread their wings as the economy has been predicted to grow

at We‟re predicting that over the next few yrs, economy will grow at 52 percent CAGR

(Source:MoneyControl.com). Japan, France, Switzerland, UK and US are some of the developed

countries where online grocery is a successful business model, where as the total grocery market

in India is expected to cross $25 billion by 2020 which is estimated to be less than $100 million

at present. By 2021 the Indian Ecommerce industry is all set to reach 90 billion USD, giving e-

grocery space a great opportunity to make the most of it along with other etailing verticals.

A mobile phone can be easily shipped to far away locations across the country from a central

depot, but if a 8kg sack of rice or 5kg pack of sugar has to be delivered to a different city it is not

considered to be that commercially viable. Due to the logisitic constraints most of the grocery e-

stores supply to a specific city or certain select areas. Grocery e-tailing is challenging provided

retailers take advantage of high percentage of repeat orders and this is possible by impressing a

customer with the first order. Establishing credibility is another challenge where shopping for

groceries online isn't worth it if it puts consumers at risk of buying expired or unsafe foods.

https://www.kenresearch.com/it-enabled-services/e-commerce-industry/india-online-grocery-market-research-report/618-105.html

https://www.kenresearch.com/it-enabled-services/e-commerce-industry/india-online-grocery-market-research-report/618-105.html





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Being a completely different ball game having low-margin e grocery retailing requires expensive

investments to build high-end IT infrastructure, an efficient delivery system and supply chain.

Being an entirely different category from standard ecommerce SKUs there are a lot of local and

seasonal variability thus maintaining consistent quality is a huge challenge. The handling,

packaging and delivery cost per order is high in online grocery business. Timely delivery, low

prices and high quality are some of the critical factors that define the success of the e grocery

business in terms of business augmentation growth here comes from entering new markets but

the real kicker is getting public to turn into repeat customers.

Perishable products like Vegetables, dairy and meat products also pose a challenge for online

retailers as they cannot be stored for long hours, thus many e-tailers are confined to limit their

sales through packaged food items. Not many buyers search for online grocery stores as they still

relate groceries with local kirana stores and supermarkets thus advertising e-grocery business the

local way. Also in order to become a successful online grocer, a strong understanding of the

retail supply chain-from procurement of the goods to the final delivery on time has to be closely

monitored. E-Grocers should focus on their selling point of offering more convenience than any

other neighborhood store; as people are used to ordering from their local kirana store which

offers credit, or by making frequent grocery trips .To break this habit which can be seen as a

general trend for a long time it‟s necessary to get people to try e-groceries and make them

believe that the products will be not only be delivered on time but fresh along with post-

purchase service if desired . The task of selling online becomes a little more onerous due to lack

of 'touch and feel' factor. As the online grocery business works on a city specific operation, every

time a new city has to be added for expanding the business nationally lot more challenges come

in terms of operations.

Key challenges

Due to low operating margins, complex logistics, fund raising and high distribution costs

many online startups are unable to sustain their place in the e-market space.





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Groceries are seen to have little product differentiation except specialized products

categories like organic food, special beverages and gourmet food items.

Also procuring grocery and delivering to customers with free shipping and delivery is not

only tough but involves high distribution costs.

E-Grocery players have to bear twice the distribution cost as compared to physical

supermarkets.

One of the most challenging area is to maintain quality and freshness of the produce ( in

case of perishable items such vegetables , fruits and dairy products)

Also being an e grocery player they require delivering products as per the local tastes and

consumer preferences thereby understanding the demands of product offerings for

different cities. The challenge here is as the region changes so does the grocery needs,

therefore adaptability of different models is the need of the hour while being feasible.

E-Grocery still is extremely unorganized etailing space having high entry barriers.

Conclusion

Online Grocery shopping has an enormous potential mainly for the reason that people may not

go for buying clothes every month but life would come to a standstill without groceries. Thus,

there is a lot more to be explored in this niche area, where there is a business opportunity both

existing as well as new entrants. Care should be on securing funds at regular intervals to

maintain the initial few years of the big business, resulting in increasing customer base, break

even and buy bulk produce without any hassle grocery has an open access for the entire country

where it‟s not possible to restrict the viewers visiting the page but it becomes essential

to concentrate on specific target market which can comprise of selected few cities or areas within

a city when it comes grocery retail space. Such a strategy will enable brands to maintain quality

& delivery standards enhancing the customer satisfaction quotient. Surviving in a business with

such low margins, getting loyal customers should be the prime motive which is possible only

when online grocers stay committed to what they promise as delay in delivering groceries will

surely hamper future sales. India has a vast population coupled with penetration of Internet and

explosion of Smartphones where there is a huge unexplored space for grocery e-stores. E-





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Grocery is still an emerging market which shows low adoption rate not only in market

coverage but also in terms of customer base. Hence players in this market should keep working

on creative strategies in satisfying customers by implementing a sustainable business model that

can help to tap the niche market which is all set to grow in jet pace.

References

Croome, R, Lawley, M, & Sharma, B, 2010. 'Antecedents of Purchase in the Online

Buying Process', Journal of Internet Business, 8, pp. 1-40, Business Source Complete,

EBSCOhost, viewed 15 February 2014.

Karimi, S, Holland, C, & Papamichail, N 2013. 'A purchase decision-making process

model of online customers and its influential factor: a cross sector analysis', British

Library Ethos, EBSCOhost, viewed 15 February 2014.

Koch, S. (2012). A theory of grocery shopping. Food, choice and conflict. London/New

York: Berg.

Picot-Coupey, K., Huré, E., Cliquet, G. & Petr, C. (2009). Grocery shopping and the

Internet. The International Review of Retail, Distribution and Consumer Research, 4,

437-455.

Rudolph, T., Wagner, T. & Sohl, T. (2009). Kundensegmentierung im Handel –

Kaufmotive erkennen und nutzen. Marketing Review St. Gallen, 4, 34-39.

Underhill, P. (1999). Why we buy: The science of shopping. New York: Simon &

Schuster.

Casie Berning, Stan Ernst, and Neal H. Hooker, April 2004 – “E-Grocery: Who is

the Ideal Consumer?”- OHIO State University, AEDE-RP-0043-04,

[email protected]

Kari Tanskanen, Hannu Yrjoelae and Jan Holmstroem, 2002 "The way to profitable

Internet grocery retailing" International Journal of Retail & Distribution Management

Volume 30. Number 4. 2002. pp. 169-178

Adding to cart: Digital‟s impact on consumer goods in India | Bain & Company, Inc.

mailto:[email protected]





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http://www.entrepreneur.com/article/248541

http://money.usnews.com/money/personal-finance/articles/2013/04/18/is-online-grocery-

shopping-right-for-you

http://www.businesstoday.in/smart-spending/online-grocery-shopping-vegetables-new-

trend-in-india/story/197141.html

http://inc42.com/buzz/realizing-the-huge-opportunity-in-online-grocery-space/

http://www.news.kenresearch.com/post/110151679063/india-online-grocery-market-

report

http://knowledge.wharton.upenn.edu/article/online-groceries-in-india-will-consumers-

bite/

http://articles.economictimes.indiatimes.com/2014-06-05/news/50359137_1_grocery-

delivery-service-home-delivery-online-grocery-stores

http://www.ibnlive.com/news/india/zopnow-takes-a-crack-at-online-grocery-635426.html

http://indianonlineseller.com/2014/11/can-online-groceries-sustain-in-india/

http://www.exploringstartups.com/business-models-in-online-grocery-business/

http://www.foodnavigator-asia.com/Markets/USDA-Online-retail-for-food-and-grocery-

to-soar-in-India

http://www.businessinsider.in/This-E-grocery-Start-up-Uses-A-Lean-Model-For-Its-

Online-Supermarket-In-Talks-To-Raise-Series-BFunding/articleshow/31184822.cms


http://www.ibef.org/blogs/online-grocery-market-in-india-on-a-roll

https://inc42.com/buzz/realizing-the-huge-opportunity-in-online-grocery-space/

http://www.brandba.se/blog/2014/4/17/online-grocery-shopping-revolution

http://www.news.kenresearch.com/post/110151679063/india-online-grocery-market-

report

http://indiatoday.intoday.in/story/food-retail-online-crocery-shopping-e-commerce-

bigbasket-grofers/1/551859.html

http://www.entrepreneur.com/article/248541

http://money.usnews.com/money/personal-finance/articles/2013/04/18/is-online-grocery-shopping-right-for-you

http://money.usnews.com/money/personal-finance/articles/2013/04/18/is-online-grocery-shopping-right-for-you

http://www.businesstoday.in/smart-spending/online-grocery-shopping-vegetables-new-trend-in-india/story/197141.html

http://www.businesstoday.in/smart-spending/online-grocery-shopping-vegetables-new-trend-in-india/story/197141.html

http://inc42.com/buzz/realizing-the-huge-opportunity-in-online-grocery-space/

http://www.news.kenresearch.com/post/110151679063/india-online-grocery-market-report


http://knowledge.wharton.upenn.edu/article/online-groceries-in-india-will-consumers-bite/

http://knowledge.wharton.upenn.edu/article/online-groceries-in-india-will-consumers-bite/

http://articles.economictimes.indiatimes.com/2014-06-05/news/50359137_1_grocery-delivery-service-home-delivery-online-grocery-stores

http://articles.economictimes.indiatimes.com/2014-06-05/news/50359137_1_grocery-delivery-service-home-delivery-online-grocery-stores

http://www.ibnlive.com/news/india/zopnow-takes-a-crack-at-online-grocery-635426.html


http://www.exploringstartups.com/business-models-in-online-grocery-business/

http://www.foodnavigator-asia.com/Markets/USDA-Online-retail-for-food-and-grocery-to-soar-in-India

http://www.foodnavigator-asia.com/Markets/USDA-Online-retail-for-food-and-grocery-to-soar-in-India

http://www.businessinsider.in/This-E-grocery-Start-up-Uses-A-Lean-Model-For-Its-Online-Supermarket-In-Talks-To-Raise-Series-BFunding/articleshow/31184822.cms

http://www.businessinsider.in/This-E-grocery-Start-up-Uses-A-Lean-Model-For-Its-Online-Supermarket-In-Talks-To-Raise-Series-BFunding/articleshow/31184822.cms


http://www.ibef.org/blogs/online-grocery-market-in-india-on-a-roll

https://inc42.com/buzz/realizing-the-huge-opportunity-in-online-grocery-space/

http://www.brandba.se/blog/2014/4/17/online-grocery-shopping-revolution



http://indiatoday.intoday.in/story/food-retail-online-crocery-shopping-e-commerce-bigbasket-grofers/1/551859.html

http://indiatoday.intoday.in/story/food-retail-online-crocery-shopping-e-commerce-bigbasket-grofers/1/551859.html





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WOMEN POWER IN DIGITAL INDIA

Arshi Gouhar

Research Scholar, Shri JJTU, Rajasthan

Abstract

Digital India is a concept given by our Prime Minister Mr. Narendra Modi where technology can

be used to connect and empower Indian masses in areas related to health, education,

employment, commerce etc. He has emphasized the shifting of e-governance to m-governance

where m stands for mobile. In simple terms it is a campaign launched to connect all the citizens

through internet in order to increase awareness and facilitate active participation in government

proceedings and once this aim will be achieved, it will be the true essence of Democracy.

Women power plays an important role in the progress and development of any country. Indian

history had come across women of substance since time immemorial. Razia Sultan, Noor Jahan,

Jodha Bai, Chand Bibi, Jija Bai, Rani Of Jhansi, Indira Gandhi, Shakuntala Devi , Kiran Bedi etc

are some examples. Still we have a number of women taking the command of all the important

spheres of life. From babies to boardroom, Indian women can participate in different roles and

that to with perfection.

Introduction

Digital India is one of the important campaigns launched by the present government in order to

connect all the people across India. The objective behind this campaign is to make the general

masses aware regarding different government policies, their implementation and the proper

utilisation at all the levels. People are connected via Internet and the resources can be utilised in

a proper and optimum way.

Advantages and Significance

The campaign Of Digital India is having following advantages:

It saves time.





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Maintains transparency.

Decreases Corruption.

Create awareness.

Creates employment.

Removes discrimination.

Facilitate easy and simple usage.

Disadvantages

Availability of electricity or Wi-Fi is required.

People are not aware of its use.

Illiteracy restricts its proper use.

Sources of transport and telecommunications are restricted.

Mind set of not accepting new technologies.

Poverty restricts the use as they are busy arranging for their livelihood.

Projects of digital India

The campaign has undertaken a number of projects in different areas of life. Some of the

important projects are as follows:

DigiLocker: This service provides an important facility to store crucial documents like

voterID, Pan card, driving license etc.

MyGov.in: This portal works as an online platform to engage citizens in governance

through internet.

eSignFramework: Enable users to digitally sign a document online using Aadhar

authentication.

National Scholarship Portal: It offers all the information related to government

scholarships.

Swach Bharat Mission Mobile app: It enables organisations and citizens to access

information regarding cleanliness drive and achieve the goals of mission.





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eHospital: This will help in availing services related to hospitals like online registration,

paying bills, taking appointments, getting diagnostic reports etc.

Digitize India Platform: It will involve the digitization of data and records to make easy

and quick access.

Bharat Net: A high speed digital highway which will connect all 250,000 gram

panchayats of the country.

Wi-Fi Hotspots: It will improve digital connectivity at the important places.

Next Generation Network: Launched by BSNL. It will replace 30 years old telephone

exchanges to manage services more efficiently.

Electronics Development fund: Will support manufacturing of electronic products. It

will create jobs and reduce import.

Centre of Excellence on Internet of Things: It will enable rapid adoption of IOT

(Internet of Things) technology.

Women achievers of Digital India

Seema Sadikha: A 36 year old doctor from Bengaluru who has started a NGO (Namma Mitra

Foundation) in 2015. It focuses on community development and rural empowerment in villages

in Karnataka and it has installed a mini solar grid in village which now provides electricity to 70

houses and power street lights.

Varsha Ved: She has worked as an accountant for 15 years in Mumbai before she lost her eye

sight due to Conjunctivitis. She registered herself with Eye Bank Coordination and Research

centre (EBCRC) at Parel but has to wait for 2 years for transplant. After the transplant she has

decided to work in this area and started working with eye bank to spread awareness about eye

donations. Till today she has encouraged over 1000 people to donate their eyes.





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Gunjan Saxena : First woman recipient of Shourya Vir Award. In 1994, she became the first of

25 young women to form the first batch of women Indian air force trainee pilots. She together

with her batch mate Srividya Rajan performed brilliantly during Kargil war.

Seema Rao: India’s only female commando trainer, giving training to Armed forces since 20

years without taking any compensation. She is one of only 20 women certified in Jeet Kune Do,

a unique martial art form created by Bruce Lee in 1960s. Apart from giving commando training,

she is a combat shooting instructor, fire fighter, scuba driver, medallist in rock climbing and alo

Mrs. India world pageant finalist.

Khanak Gupta: Created Netsaar in 2014 together with Ginni Khemani and Monish Khemani. It

is an online portal teaching the masses how to make the most of PC. Netsaar Learns was

launched in August’2016. It uses video tutorials to teach users to navigate websites.

Shreya Vardhan: A student of DPS, R K Puram who has created a world record in SAT TOEFL

by scoring a perfect score of 2400.

Shakuntala Devi: She was known as the living computer of India as she was able to do the

mathematical calculations faster than the computer.

Women heads of digital India

Chanda Kocher: ICICI Head names as the most powerful business woman in India for second

consecutive year by Fortune magazine.

Mallika Srinivasan: Chairperson of TAFE, a company which is amongst the 3 largest tractor

manufacturing companies in the world. Under her able supervision and guidance, the company’s

revenues have increased from $20 million in 1985 to $1.6 billion in 2012.





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Aina Lal Kidwai: Country head HSBC India. First Indian woman to graduate from Harvard

Business School

Amrita Patel: Chairperson of national Dairy Development Board founded in 1965 to empower

rural India.

Apart from them, there are many Indian women heading a number of important companies and

organizations, setting examples for others, guiding people and taking decisions and solving

problems. Following are some examples:

Aruna Jayanti: CEO, Capgemini, India

Shikha Sharma: MD and CEO, Axis Bank

Vinita Bali: MD, Britannia Industries

Shobhana Bhartia: Chairperson, HT Media. 25 Years experience in newspaper industry.

Preetha Reddy: MD, Apollo Hospital Enterprises

Kirthiga Reddy: India head of facebook

Conclusion

God has created a woman as one of its special and finest creature. The Almighty has provided

her with beauty, patience, tolerance, willingness to adapt and ready to sacrifice her luxuries for

the sake of her family. A woman is always a good leader as she understands things and can take

right decisions. She can go out of her way to support and encourage her subordinates. She knows

how to accept challenges and also to accomplish them in allocated deadlines.

India has always given due respect and importance to women e.g. our country which is most

sacred for all the Indians is denoted as motherland and not as fatherland. Girls are worshipped

on all the religious occasions. The Indian history has seen some wonderful examples of women

achievers and still we can see a number of women as leaders and guides in different spheres.





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Razia Sultan was the first woman ruler of Medieval India, Indira Gandhi was the first woman

prime minister of Independent India, Kiran Bedi was the first woman IPS, Kalpana Chawla was

the first Indian woman astronaut, Bachendri pal was the first Indian women to climb the Mount

Everest.

Still the legacy continues. A number of women are the heads of Business houses, Companies,

NGOs etc but on the other hand we are facing a lot of problems in the rural areas like girl

illiteracy, dowry system, female feticide etc. This is the proper time to understand the potential

of women and utilize them in an appropriate way and this will definitely lead to growth,

development and prosperity.





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DIGITAL TECHNOLOGY AND YOUNG WOMEN EMPOWERMENT:

OPPORTUNITIES AND CHALLENGES

Malini Sharma*, Pooja Khanna

*, Divya Gupta

*

Assistant Professor, Daulat Ram College, Delhi*

Gunjita Dhingra**

, Snigdha Sharma**

Student, Daulat Ram College, Delhi**

Abstract

Digital technologies have enormous potential for transforming women‘s life and empowering

them. It provides them with educational, banking and health services, entrepreneurial

opportunities, promotes awareness regarding violations against women and ensures social,

economic and political inclusion of all women. Despite great gains in gender equality over the

past 50 years, the Global Gender Gap study shows that women still have less economic and

political power than men. Access to digital technologies and awareness about its benefits can

help young girls in reaching their full potential and build a brighter future. This study involved

surveying a representative sample of young female students of Daulat Ram College (University

of Delhi) about their current computer comfort, use, and access. The sample comprised of 134

female students of age 18 belonging to different regions, race, ethnicity, caste, religion or

economic or other status. Results show that majority (about 94%) have only low–moderate

familiarity with internet. Considerable number of students does not have access to internet on

daily basis. Even students with internet access are unaware of its potential utility beyond being a

gateway to familiar sites such as Facebook and YouTube. Nearly 71% of the students use

internet for entertainment purposes (making friends on social networking websites), only 29% of

students use internet for educational and research purposes. The purpose of this study is to

examine these current constraints that impede women‘s development and how Digital India

programme can address them by improving women‘s access and knowledge of the Internet and

the broader range of ICTs. This research paper also seeks to explore the solutions to the

risks/threats and crimes that young women face in relation to the digital world and the Internet.





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Keywords: Women empowerment, Digital India Programme, Digital technology, Daulat Ram

College

Introduction

Digital technology has completely revolutionised our lives today. It has changed the way we do

everything. Today, with this advanced technology, people can avail all sorts of services like

educational, health, banking services etc. A great advantage of this digital technology is that

people from all areas can benefit from these services. The prime beneficiaries of these services

can be women, who are mostly deprived of even basic services and job opportunities. The wider

use of internet by women for acquiring basic services, employment opportunities, and awareness

can enhance their power and can ensure social, political and economic inclusion of all women.

But, what if the digital technology is not made available to them? In fact, if we examine closely,

we can see a major proportion of all women is devoid of this technology. According to a new

report, issued by the United Nations' Broadband Commission Working Group, men have a much

easier time accessing internet than women. Our study which involved surveying a sample of

students of Daulat Ram College, also reveals that a significant proportion of young women does

not have access over internet on daily basis and majority among the students with access to

internet have low familiarity with internet.

Thus, though, today advancing technology has achieved essential goals but a salient potential of

advanced and digital technology still needs to be realised – the women empowerment. This very

aim to digitally empower women can be accomplished by The Digital India Programme, which

can ensure that the government services are made available electronically to one and all. The

Digital India Programme can ensure that all people and particularly women have an access and

knowledge over vital services, various entrepreneurial activities, and awareness on women's

rights. Hence, Digital India can help address the problem of gender inequality very efficiently

and can enhance the position of women in the society.

However, with the greater access to more and more people, comes greater possibility of





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cybercrimes. The women mostly face the threat of cybercrimes like cyber stalking, cyber

bullying etc. Thus, we also need to discover efficient ways to reduce the cybercrimes so as to

create a healthy and risk-free digital environment for all.

Scope of Study

Most of us have heard this idea already: if you educate a girl or a woman, you educate a family,

and maybe even a community. But as technology and media become increasingly available

around the globe, when you educate a girl or a woman, you may also educate a region, or even a

country.

There is a digital divide of gender. In most places around the world, the gap between male and

female Internet use is slight and closing. Worldwide, 45.9 percent of men use it, while 40.8

percent women do. But nowhere on the planet is the divide as dramatic as it is in India. While

nearly 35 percent of the country‘s people have access, 71 percent of those users are male only 29

percent are female. That‘s a difference of roughly 184 million people.

Beyond the general social inequalities that women in India face — with fewer employment

opportunities available as they are ―trapped in traditional family roles‖ — there are other barriers

at play too. Women there are excluded from technology education starting from a young age;

they‘re not considered ―bread-earners‖ so they lack the finances for their own access; and, much

like the rest of the world, they simply have less free time than men because of the hours spent

doing household work and taking care of the family. The region‘s worst affected by this gender

digital gap are, perhaps expectedly, the most rural areas of India.

Digital India Initiative to Empower Women

Government of India has launched the ―Digital India‖ campaign to develop a digitally

empowered society and to digitally integrate the government departments and the citizens

of India. It aims at ensuring the government services are made available to people of India

electronically. The main motto of the project is; ―Power to Empower‖. The vision of Digital

India programme is inclusive growth in areas of electronic services, products, manufacturing and





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job opportunities etc. and it is centered on three key areas – Digital Infrastructure as a Utility to

Every Citizen, Governance & Services on Demand and Digital Empowerment of Citizens. It is

believed that Digital India will play a major role in empowering women India, especially women

in rural areas.

The use of internet is restricted in India due to many factors such as lack of proper infrastructure,

high costs, low literacy rates, lack of awareness among masses about the power of internet. But

now, women in India are joining hands in our growth story. Be it health, education or industry of

any kind, women are leading in many parts of it. But when it comes to developing women, they

are displaying strong determination and an ability to be progressive. Empowering their life in

order to get access to environmental, social change, health care and education, they are making

use of ‗Digital India‘ for the next big leap. Following are the ways in which Digital India Project

is helping women:

Arogaya Sakhi: helps rural women developing their own personality in order to

providing health care to the rural area. It‘s a mobile application that helps rural women

entrepreneurs deliver preventive health care at rural doorsteps. Women armed with

tablets and mobile healthcare devices like glucometers, blood pressure checking machine

visit homes and collect data from the village women. This data can be accessed by

doctors at any location who could provide treatment to the patients remotely. Similarly,

several apps have been launched to enable farmers get accurate and timely information

related to crops, market prices and analytics to enhance productivity and profitability of

farmers.

Internet Saathi: This aims to go deep with the internet usage among rural women in

India. Internet will help rural women to get educated and to make them ready for the

future. Those women who have not been able to find a way of earning yet, seems this

initiative will build their career. Women internet users in urban India have outnumbered

men, but when it comes to the rural India, only a few have access to the internet. The

three-way project Internet Saathi will deploy 1000 specially designed bicycles with





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connected devices to give villagers an altogether new internet experience for a period of

four to six months. Internet Saathi program is expected to reach about five lakh rural

women.

W2E2 (India): Women for Empowerment and Entrepreneurship, in short W2E2 is

helping rural women with digital tools, e-learning, internet connection. Women tend to

use the Internet for their own projects in fields like sustainable agriculture and rural

health. Some are setting up their own kiosks and shops to provide online services to the

local community, while others have taken up work as digital literacy trainers in their own

local communities.

National e-Governance Plan: gives a chance to the entrepreneurs to provide citizen-

centric services including access to land records and utility bill payments. This plan helps

them to follow up on rural enterprise, facilitate community participation, enable citizens

to make informed decisions and act as a single-window interface, eliminating corruption

process. Women have been matured in computer literacy, that‘s the only qualification

needed.

More women in India now have opportunities they never had before. Women have started

exploring ways to generate new revenue such as embroidery, arts, and crafts. Entrepreneurship

skills are being built among the Saathis, as they can be the leads from the villages to connect

with stakeholders for various services, which can help the local economy flourish. Women who

were not even aware of the concept of Internet are now browsing online for cooking recipes,

health facilities, agriculture, education results, and tailoring techniques.

These skills translate into shrinking the gender gap offline as well. Women no longer have to

depend on anyone to follow their ambitions. This is empowering them to become independent

women.

Analysis and Results

Sample of 134 young female students of Daulat Ram College (University of Delhi) were

surveyed about their current computer comfort, use, and access. The sample comprised of female





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students of age 18 belonging to different regions, race, ethnicity, caste, religion or economic or

other status.

Fig 1: Out of 134 students surveyed, only 6% students have an extensive knowledge of internet

for various relevant purposes. The remaining 94% have only low or moderate familiarity with

internet.

Fig 2: Only 29% of students use internet for education and research purposes. A significant

proportion of the student use internet just for entertainment purposes such as Facebook.

Both the pie charts reveal that despite great achievements in technology, women lack basic

knowledge and understanding of accessing the internet. Majority of women have the access and

knowledge over few familiar sites like facebook and You Tube. But, they don‘t have access to

Familiarity with Internet

Low- Moderate Familiarity

High Familiarity

Internet Use Among Students

Entertainment Purposes

Education and Research purposes





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the digital world beyond these few sites, because of lack of knowledge. A simple understanding

of internet use can help women change their lives drastically. A woman‘s world, mostly, is

restricted to her home. As result of which she faces lack of opportunities to work, to become

more educated or to have regular health checkups. But, a woman capable of exploring and using

the internet effectively can avail all these opportunities. She can have access to education

facilities, health care facilities and job opportunities and in fact every basic service, she requires.

Moreover, she can become more conscious, more learned, and well informed about her rights

and hence can enhance her position in the society.

Thus, the need of the hour is to ensure that all women have the access and the knowledge of

using the internet for various purposes. This magnificent digital technology can help women

break their confinements and open themselves to the diverse world, thus transforming their lives

completely.

Cybercrimes

The advancement of technology has made man dependent on Internet for all his needs. Internet

has given man easy access to everything while sitting at one place. Social networking, online

shopping, storing data, gaming, online studying, online jobs, every possible thing that man can

think of can be done through the medium of internet. Internet is used in almost every sphere.

With the development of the internet and its related benefits also developed the concept of

cybercrimes. Cybercrimes are committed in different forms. A few years back, there was lack of

awareness about the crimes that could be committed through internet. In the matters of

cybercrimes, India is also not far behind the other countries where the rate of incidence of

cybercrimes is also increasing day by day.

In a report published by the National Crime Records Bureau report (NCRB 2011), the incidence

of cybercrimes under the IT Act has increased by 85.4% in the year 2011 as compared to 2010 in

India, whereas the increase in incidence of the crime under IPC is by 18.5% as compared to the





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year 2010. Visakhapatnam records the maximum number of incidence of cases. Maharashtra has

emerged as the centre of cybercrime with maximum number of incidence of registered cases

under cybercrimes. Hacking with computer systems and obscene publication were the main cases

under IT Act for cybercrimes. Maximum offenders arrested for cybercrimes were in the age

group 18-30 years. 563 people in the age group 18-30 years were arrested in the year 2010 which

had increased to 883 in the year 2011.

Cybercrimes against women include various offences that are punishable according to various

provisions of the law. Among the various cybercrimes that are being committed against

individuals and society at large, the crimes which can be mentioned as specially targeting women

are as like harassment via e-mails, cyber-stalking, cyber pornography, mms circulation, camera

surveillance etc.

Cyber stalking has been considered as one of the serious cybercrimes that are happening in

today‘s time. Prior to February 2013, there were no laws that governed or had regulations

regarding the offence of cyber stalking in India. Then came Information Technology Act of 2000

(IT Act) that was a set of laws and regulations to regulate the cyberspace. However, it merely

focused on financial crimes and neglected interpersonal criminal behaviors such as cybercrime.

Moving on to the next serious cybercrime is cyber bullying. According to Microsoft‘s ‗Global

Youth Online Behavior Survey‘ of 25 countries, India ranked third with 53 per cent of

respondents (children aged between 8-17) saying they have been bullied online, behind China

(70 per cent) and Singapore (58 per cent). Cyber bullying is an extension of general bullying in

schools. Cyber bullying is an insidious and covert variation of verbal and written bullying. It is

conveyed by adolescents and teens through electronic media such as cell phones, websites,

webcams, chat rooms, and e-mail. Cyber bullying can also take the form of sexual photographs

(e-mailed in confidence to friends) that are altered and sent to unlimited audiences once

relationships sour, ultimately victimization of individuals, in which women share the largest

percentage.





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Cybercrimes can be prevented in the following ways:

Education and Training: There should be proper education and awareness about

internet and cybercrimes. This information is necessary in order to prevent crimes and

maintaining a safe environment for women. Education and training can be provided

through various workshops, educational videos, T.V programmes etc.

Securing Computers, Digital assets and networking: Proper steps should be taken in

order to ensure that the computers and mobiles are secured, the accounts on social

networking sites are in accordance with the security measures.

Conclusion

The study of representative sample of female students of Daulat Ram College reveals that a

significant proportion of students, 71% of students, use internet only for entertainment purposes

because of their low awareness about potential usage of internet for other relevant purposes.

Also, a considerable number of students do not have access to this digital technology on daily

basis. These facts clearly throw light on the extent of gender inequality prevailing in India.

Today, though in terms in technology, we are advancing drastically, but in terms of development

of women, we are indeed lagging way behind. This has happened perhaps because of social

norms and low awareness of their basic rights among women. But, we must not forget that the

growth of a nation is critical to development of women.

Hence, we need to ensure that developments at both levels: digital advancement and women

empowerment go in hand in hand. This can best be achieved by collaborating the advancing

digital technology with the motto of Women Empowerment via the Digital India Programme.

This paper reveals how The Digital India Programme can ensure the provision of internet to all

women and execution of programmes aimed at teaching women how to use internet. Digital

India, also with its efficient schemes can take into account a safe and secure digital environment,

particularly for women, because a risky environment like the one prone to cybercrimes can

always demotivate women from using internet efficiently. Thus, Digital India Programme,

capable of bridging the gender disparity of internet by ensuring provision of internet to all,





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especially women, can be a great tool for women empowerment.

References

Agarwal, R.(2000): Educated Women in the urban Labour Market: A study of career

mobility patterns of women professionals in Information Technology. PhD. Thesis.

Agarwal, Ranjana: Digital India and Women Empowerment: Employment Dimensions in

India

Enhancing Women Empowerment through Information and communication technology

by Voluntary Association for People Service (VAPS)

National Crime Records Bureau report (NCRB 2011)

http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN023829.pdf

Role of Information Technology in Women Empowerment by Saroj Kumari, Faculty,

Department of Computer Application YSM-Centre for Vocational studies, Jagannathpur,

Dhurwa, Ranchi-4, Jharkhand

Kumar Narasimha H.S., 2008, ―Empowering rural women through computers‖, The

Hindu, available at http://www.hindu.com/2008/03/12/stories/2008031254630600.html

http://wcd.nic.in/Schemes/research/ict-reporttn.pdf

Zakir Hussain Centre for Educational Studies, School of Social Sciences, Jawaharlal

Nehru University, New Delhi.

http://m.economictimes.com/tech/internet/internet-saathi-transforming-lives-of-women-

through-digital-education/articleshow/52743134.cms





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MAKE IN INDIA: CHALLENGES AND OPPORTUNITIES

.Huma Butt

*

Research Scholar, BU,Bhopal*

Dr. Chandralata Singh**

HOD, NRI, Bhopal**

.Deepti Chouhan

***

Research Scholar, BU, Bhopal***

Abstract

In this paper an effort is made to present the idea of "Make in India". This paper conducts a study

on the Challenges and Opportunities faced by Make in India campaign .The campaign focuses on

increasing the contribution of manufacturing sector on India's GDP. It was launched on 25th

September 2014.It was envisioned with the approach of boosting manufacturing sector ,reviving

economy and making the Prime Ministers vision of helping the poor reach to middle class faster,

'a reality'.

Keywords: Make in India, GDP, Manufacturing Sector, Challenges and Opportunities.

Introduction

Make in India is an International Slogan coined by P.M of India, Mr. Narendra Modi. The launch

of the "Make in India" campaign was set with a motive to attract the foreign investments and

boost the manufacturing industry which contributes about 15% of the National GDP.

The manufacturing sector is crucial for employment generation and development of any

country's economy. Small, Medium and Micro industries play a very important and vital role in

employment generation in India. The campaign lays stress on manufacturing goods in such a

way that it carries Zero defects and the impact of it can be seen in the form of exported goods

that can never be returned. Goods should be manufactured such that it has no negative impact on

the environment.

It stresses on attracting the business firms from the world, thus, leading to generation of huge





32 | P a g e

employment, increase trade and spur economic growth. The impact of it can be seen in the form

of 'Foreign Direct Investment' but it should be perceived as "First Develop India" as well. The

campaign considers FDI as a tool to view India not as a holistic opportunity for making India as

a global economic giant.

Objective of the Study

To understand prospects of manufacturing units after make in India campaign.

To have the knowledge of new initiatives and policies that will improve the ease of doing

business in India.

To know the hurdles of FDI in India.

About the Logo

The logo of “Make in India” depicts a “Lion” which refers to “King of Forest”. In the same way,

India can become “King in Manufacturing Sector” by converting herself to a self-reliant and self-

sufficient country and to give the Indian economy a global recognition.

Rationale of the Study

The concept of "Make in India" involves policy initiatives and commitment by government .It

may revive the sluggish economy by generating more employment opportunities. The major

objective behind the initiatives is to -

Focus on 25 sectors of the economy for job creation and skill enhancement.

Revitalize the Indian Economy.

Make India an investment destination and global hub for manufacturing and innovation.

To boost economic growth

To convert India into Global Manufacturing Hub.

To urge both local and foreign companies to invest in India.





33 | P a g e

Make India boosts manufacturing trade and economy. Over 10,000 training centers opened

within 2 years .It has created job market for over 10 million people. It is expected to raise the

current GDP level of 16pc to 25 pc by 2022, and creating 100 million new manufacturing jobs

over the same period. Startups in the field of telecom, defense, manufacturing, automobile,

internet of things, financial technology modules and internet have immense potential to succeed

in the scheme of "Make in India". It has thus helped to improve the business climate.

Bottlenecks to manufacturing sector in India.

High input costs.

Inadequate availability of Land for industrial purposes.

Unbalanced growth in logistic Sector.

It is attracting investors to create employment opportunities in the economy.

Key Announcements

Enhancement of FDI limits in insurance from 26pc to 49pc.

1OO pc FDI in railway infrastructure.

Factories Act 1948.

Re-launch of Kisan Vikas Patra scheme to increase domestic savings.

To open 100 million bank accounts under Jan Dhan Yojana.

Development of 100 Smart Cities to facilities infrastructure development.

Promising Areas for Manufacturing, Trade and Investments

Agro and food processing industry.

Auto components and automotive industry.

Drugs and Pharmaceuticals.

Engineering.

FMCG industry.





34 | P a g e

Gems and Jewellery.

Infrastructure.

Leather and leather products.

Service Sector.

Textile and Readymade garments.

Research Methodology

Research Type: Descriptive Research.

Type of Data/Data Source used: Secondary Data/Data Source

It is based on the secondary data which has been derived from.

Various Books.

Articles from Newspaper, Magazines and Journals.

Various related web-sites which deal directly or indirectly with topics related to FDI and

Indian Retail Sectors.

Challenges

More Innovation is required for India's small and medium-sized industries.

Research and Development along with innovation should be focused.

Emphasis of accepting/accommodating. Single Window Concept / Single Online Portal.

Tax Concessions to companies which come and setup units in India.

Improvement of infrastructure through Golden Quadrilateral DMIC (Delhi Metro

Industrial Corridor) for roadways, vibrant sea ports, etc. for free flow of raw materials

and finished goods.

To integrate companies into global value chain.

Chronic deficiency in transportation and power impasses prohibitive cost and lower

business competitiveness.





35 | P a g e

Difficulties faced by informal firms in accessing credit.

Scarcity of land and skilled labor have already started creating trouble.

Penetration of FDI in many sectors to make „Invest India‟ or „Make in India‟ campaign

successful.

Creating healthy business policy through administrative machinery.

Challenges to give special privileges to few sectors.

India must also encourage high-tech imports, research and development to upgrade

„Make in India‟s give edge-to-edge competition to China‟s counterpart‟s campaign.

Opportunities

Many MNCs like Bosch and Siemens have announced to set up manufacturing plant in

India.

Many factories and factories and industries are planning to invest in India based on free-

trade agreements.

Japanese electronics firm is taking „Make in India‟ as on opportunity.

Boost of entrepreneurship in India through campaign.

Creation of 100 million jobs/services in logistics, transport, retail etc.

Streamlining investment approval, facilitating land acquisition processes, creating an

appropriate labour development ecosystem, efficient and effective enforcement of laws,

facilitating greater cross-border government.

Building up of Single Window Mechanism.

Approval of Central and State Governments for development of uniform standards and

procedures.

Limitations of the Study

The study is based on publish data and information. No primary data is being collected.

Secondary Data may be lacking in accuracy or they may not be completely current or

dependable.





36 | P a g e

Time constraint remained the major limitation in the study.

Conclusion

Make in India campaign has the explicit aim of lifting manufacturing share of the country from

15pc to 25pc. Better understanding has to be developed in areas like Digitization, Data Analysis,

Innovation and Technology. New government policies will favor competitive sectors. The

government of India has taken many steps to further encourage investment and improve business

climate. The slogan “Make in India” can be made realistic by creating more conducive

environment for retaining the Indian talented youth.

References

Goyal Samridhi et al,2015, Role of HR and Financial Services in making “Make in India”

campaign a success, IOSR Journal of Business and Management,17(2)pp-20-24.

Nathani J.K,Parth V.A,(2015),Make in India: Issues and Challenges-A paradigm shift

,International Journal for Scientific Research and Development,2(2),pp-85-88.

Ramana T.V. (2015) Make in India: Illusion or Possible Reality Project? International

Journal of academic research, 2(5),pp-10-20.

Soundariya.S,2015,Make in India-Scheme for transforming India, Global Journal for

Research analysis,4(9),pp.77-78.





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A STUDY ON THE ATTITUDE TOWARDS FINANCIAL AWARENESS IN

EMPOWERING THE FEMALES IN INDIA, WITH SPECIAL REFERENCE TO

BHOPAL CITY

Dr. Pooja Gupta,

Assistant Professor, School of Management

Jagran Lakecity Univesity, Bhopal (M.P.)

Introduction

Women empowerment is look upon as the priority for strengthening the status of the females in

the family, society and nation, as a whole. Untiring, dauntless and consistent efforts have been

made by the nations, welfare organizations and individuals, in several directions and dimensions

to raise the living standard of the females of the nation. No wonder, that these efforts have

started showing its results with a commendable rise in the status of women in India as reflected

in high female birth rates, female literacy rates, female employment rates, health index of

females etc., in past years. The strengthen women position in the country has also marked to the

improvement in the social and economic conditions of the nation which is reflected in the rising

working group and saving of households. As, well quoted by Ghanaian scholar and great

educationist - Dr. James Emmanuel Kwegyir-Aggrey- “If you educate a man you educate an

individual, but if you educate a woman you educate a family (nation)” fits in well to show-case

the contribution of the females in the family, society and nation, as a whole. Yet, aggressive

reforms are still needed to further uplift the conditions which still remains stagnant for females.

The World Development Report 2015 states that despite rising economic growth, labor force

participation of married women in urban India has remained stagnant around 18%since mid -

1980s (World Bank Review 2015). The data with the International Labor Organization (ILO)

shows that during 2004-2011 when the Indian economy grew at a healthy average of about 7%

there was a decline in female participation in the country‟s labor force from over 35% to 25%,

although in past few decades access to education for Indian women has increased but still they

have increasingly stayed away from employment. Seeking jobs outside the home, reservations

for taking up jobs in certain sectors, etc., are certain reasons for low contribution in the labor





38 | P a g e

force. This further gives rise to ignorance and lack of knowledge which prevents women from

taking investment decisions. India is ranked at 120th of 131 countries in women‟s labor force

participation as per the Global Employment Trends report 2013, of International Labor

Organization. ILO attributes this to three factors: increasing educational enrolment, improvement

in earnings of male workers that discourages women‟s economic participation, and the lack of

employment opportunities at certain levels of skills and qualifications discouraging women to

seek work. As per the survey conducted in Dec 2015 by Standard & Poor‟s Financial Services

LLC, it claimed that– “Worldwide, there is a five-point gender gap, with 65% of men not being

financially literate compared with 70% of women. In India, the gap is wider with 73% of men

and 80% of women not being financially literate. While women are less likely to provide correct

answers to the financial literacy questions, they are also more likely to indicate that they “don‟t

know” the answer.”

Literature Review

Wang (1994) found that women are more conservative investors as compared to men and

also they are offered less risky investments.

Beyer and Bowden (1997), analyzed about the evidence from past studies that women are

less confident when the domain is more male oriented.

Dawar & Wadhwa (2011) in his study observed that generally men dominate when it

comes to investments.

Bramabhatt (2012) confirmed that investment decisions are collective decisions which

are based on the information and knowledge gathered from numerous sources. Women

are found to be conservative in making investments as they have less knowledge of

financial market.

Asghari Farhad, Sadeghi Abbas and Aslani Khaled (2013) evaluated the financial

Independence, Self-Confidence and Decision-Making Power, Awareness of the Social

Resources and Mental Health in the Women Members of SHG and Non-Member of SHG

of Kurdistan, Kermanshah, Hamadan and Western Azerbaijan in Iran. They concluded





39 | P a g e

that the self headed females who are the members of SHG have better financial

independency as compared to non-members of SHG.

Sharma, CA Anupama and Joshi Dr. Bhavesh (2015) evaluated the financial literacy of

the women and its effects on their Investment choice decision in Noida city of India. It

has been recognized by women that they are unable to take wise financial decisions

because of lack of financial literacy. It is only handful of women who are well aware of

the financial market and are capable of taking investment decisions.

Based on the above literature review it can be further researched that - Can the females be

claimed fully empowered without financial literacy? Are they not still dependent on others for

deciding their financial management? Despite being empowered are they confident and

competent to take-up their financial decisions?

Objectives

The research paper aims to understand and justify the above questions with the following

objectives to study the woman attitude towards financial literacy and their financial

empowerment in the family decision making. The objectives covered are:-

To understand the saving pattern of the females in various investment options in market.

To evaluate their financial empowerment in family decision making.

To develop an insight about the learning attitude of financial products among the females.

To analyze the reasons of any discrepancy in investment and learning behavior.

Hypothesis

Ho1: There is no significant difference in the investment pattern between working and non-

working females

Ho2: There is no significant difference in the level of participation in financial decision making

of working and non-working females.

Ho3: There is no significant difference in the factors influencing the financial decision making

among working and non-working females.





40 | P a g e


The scope of the study is limited only to the females residing in Bhopal. The nature of the study

is analytical research based on the primary data collected from a sample of 300 females by using

non-probability convenience sampling. Out of all the questionnaires 295 questionnaires are

considered valid for the purpose of the study.

Data Analysis and Interpretation: For the purpose of better understanding the data has been

tabulated by dividing the population into working and non-working females. Chi-Square test

has been applied for testing of hypothesis.

The median age of the female respondents is 40 years, out of the 295 respondents 55% are post-

graduates, 35% are graduates and balance 10% are 12th

pass. Also 42% are in service, 40% are

housewives and 18% are self-employed. Nearly 73% of the respondents are married, 20% are

unmarried and 7% are in other category of marital status. Nearly 13% of the respondents have

the monthly salary range of 15000- 30000, 38% have the range of Rs. 30000-45000, 25% fall in

the range of 45000-60000, 21% in 60000- 75000 and remaining 3% are below Rs. 15000. While

analyzing the source of income it was indicated that 35% respondents completely depend on

their spouse contribution, 39% depend on the salary income and 26% depend on both salary

income and contribution from spouse to finance their monthly household budgets. As per their

saving skills 25% respondents save below Rs. 5000, 49% respondents save in the range of Rs.

5000-10000, 30% accounts for saving above Rs.10000 per month.

Table 1. Trusted Saving Options

Respondents Bank A/c Locker Facility Monthly Kitty

Yes % No % Yes % No % Yes % No %

Working 174 59% 3 1% 93 32% 84 28% 83 28% 94 32%

Non-Working 116 39% 2 1% 75 25% 43 15% 56 19% 62 21%

Source: Author’s Own Calculations (Primary Data)





41 | P a g e

Table 2. Saving and Investment pattern of Females

Investment Avenues B

an

k a

/c

Ban

k F

D

PO

SV

a/c

LIC

RD

Gold

NS

C

Mu

tual

Fu

nd

Real

Est

ate

Sto

ck

Mark

et

Oth

ers

Score

s (S

)

Factor(s) 11 10 9 8 7 6 5 4 3 2 1

Working Females 332 694 726 729 843 984 899 1270 1361 1503 1838

3652 6940 6534 5832 5901 5904 4495 5080 4083 3006 1838 53265

Percentages 7% 13% 12% 11% 11% 11% 8% 10% 8% 6% 3%

Rank 9 1 2 5 4 3 7 6 8 10 11

Non-Working

Females 242 391 542 600 561 429 630 895 979 1016 1223

2662 3910 4878 4800 3927 2574 3150 3580 2937 2032 1223 35673

Percentages 7% 11% 14% 13% 11% 7% 9% 10% 8% 6% 3%

Rank 8 4 1 2 3 9 6 5 7 10 11


From the table 1 & 2 above, the investment pattern of the females can be evaluated to judge them

as risk-averse and conservative investors. According to table 1, 47% of females, both working &

non-working, invest their savings in kitty, which emphasis the attitude to save - investment and

yet maintain the financial liquidity without much concern for returns, however ignoring the other

safe avenues like Mutual funds etc.,. Even today, females whether working or non-working

prefer traditional modes of investment like Bank FDs, PO a/c, Bank RDs, gold etc., in

comparison to modern investment avenues like Stock Market, Mutual Funds etc.,

Ho1: There is no significant difference in the investment pattern between working and non-

working females. Based on table 2, χ2 test is applied to validate the hypothesis. As the tabulated

value of χ2

@ 5% significance level with degree of freedom (df) at 10 = 18.307 and the

calculated of χ2 at 5% significance level is 2.34, hence the hypothesis stands true.

Further it is researched that female participation in the financial decision making is very poor.

Even today females rely on their male counterparts or male members in the family to decide on

the financial matters.





42 | P a g e

Table 3. Dominance of investment decisions in the family

Respondents Male Self Jointly

Working Female 92 27 58

Non-Working Female 73 28 17

TOTAL 165 55 75

(%) 56% 19% 25%


As per table 3, Out of 177 working females 92 (52%) depend on the male family member(s) for

the financial decision making, similarly out of 118 non-working females 73 (62%)are dependent

on the male family member(s), whereas the joint participation of both the categories is only 25%

towards financial management. Also it can be witnessed that only 19% of the females are

confident to decide on their financials and investments. This again raises the questions that

despite been financially independent, literate, earner and saver yet they lack the motivation to

foresee and decide on the future financial needs and avenues of investment. Table 4 and 5 below,

indicates the fact of hesitation, ignorance and apprehension of female participation in the family

financial decision making.

Table 4. Participation in the investment decisions of the family

Respondents Yes No Sometimes Total

Working Female 65 82 30 177

Non-Working Female 38 57 23 118

Total 103 139 53 295


Ho2: There is no significant difference in the level of participation in financial decision making

of working and non-working females.

Based on table 4, χ2 test is applied to validate the hypothesis. As the tabulated value of χ

2 @ 5%

significance level with degree of freedom (df) at 2 = 1.39 and the calculated of χ2

at 5%

significance level is 0.73, hence the hypothesis stands true.





43 | P a g e

It is believed that education and learning plays pivotal role in women empowerment, however, as

per the research nearly 60% of sample is working female and out of 177 working females 33 are

graduates and 136 are post-graduates, also among the balance 40% non-working females

accounting for 118, 71 females are graduate and 27 are post-graduate. With the level of

qualifications it could be further questioned as to why there is a lack of female participation in

the financial decision making. On further probing into the reasons for such conservative

approach of participation, certain significant reasons like lack of ownership of funds, lack of

financial knowledge, fear from loss-making decisions, lack of competent advisors, complicated

procedures and no assurance of returns etc., have been highlighted.

Table 5. Factors influencing financial decision-making

Respondents

La

ck

of

Kn

ow

led

ge

Fear o

f lo

ss-

ma

kin

g

La

ck

of

ow

nersh

ip o

f

fun

ds

Ign

ora

nce

No

ass

ura

nce

of

retu

rn

Co

mp

lica

ted

pro

ced

ures

lack

of

tru

st-

wo

rth

y

ad

vis

ors

Total

Working Females 49 37 26 18 12 14 21 177

Non-Working Females 29 21 28 12 8 13 7 118

Total 78 58 54 30 20 27 28 295


Ho3: There is no significant difference in the factors that influence financial decision making

among working and non-working females. In order to evaluate the hypothesis, χ2 test is applied

enumerating the calculated value to be 7.14 at degree of freedom (df) = 6 and 0.05 level of

significance, however the critical value for the same is 12.592. Therefore the hypothesis stands

true.

Conclusion

It is yet to be understood that to be empowered means to be independent in all respects. In

today‟s world, where technology has made information and learning not only easy, simply and

approachable but also customized to meet the linguistic needs to create awareness, yet females

rely on others‟ judgment and understanding to decide their present and future financial needs. It





44 | P a g e

is worth examining before we claim that a woman today is “EMPOWERED”. This calls for

extensive marketing and advertisement of the needs to motivate the females towards improvising

and upgrading financial literacy so as to make them compatible for active participation in

financial management of self and family and thus to benefit the nation as a whole.

References

Asghari, Farhad Sadeghi, Abbas and Aslani, Khaled (2013), “Comparative study of

financial Independence, Self-Confidence and Decision-Making Power, Awareness of the

Social Resources and Mental Health in the Women Members of SHG and Non-Member

of SHG”, Journal for Scientific Research, Vol. 3, No.1, (Jan 2013), pp 114-117.

Beyer, S and E. Bowden (1997) „Gender Differences in Self-Perceptions: Convergent

Evidence from three measures of accuracy and bias,‟ Personality and Social Psychology

Bulletin, 23, pp. 157-172

Brahmabhatt, P.S Raghu Kumari, Dr. ShamiraMalekar (2012) “A Study of Investor

Behavior On Investment Avenues In Mumbai Fenil “TRANS”, Asian Journal Of

Marketing & Management Research, Vol.1, Issue 1.

Dawar.G. &Wadhwa,C.(2011).Factors Influencing Investor Behaviour:An Empirical

Study In Punjab. International Journal of Research in Commerce, Economics and

Management, 1(3), pp. 125-135.

Sharma, CA Anupama and Joshi Dr. Bhavesh (2015), “Financial literacy of the women

and its effects on their Investment choice decision”, Global Journal for Research

Analysis, Vol. 4, Issue 7, (Jul 2015), pp 190-192.

Wang, P. (1994) „Brokers still treat Men better than Women,‟ Money, 23 (6), pp. 108-10





45 | P a g e

A STUDY ON IMPACT OF BREXIT ON INDIAN IT SECTOR

Mr. Hitesh Punjabi

Chetana’s Institute of Management & Research, Mumbai

Abstract

This paper will study the Impact of Brexit on Indian IT Sector (Tier-1 companies) going ahead.

It will also study the reasons why it will impact sector revenues and margins going ahead. This

paper suggests that Brexit poses serious risks to Indian IT given the sector’s high revenue

exposure (26%) to Europe. The key concerns would be 1) Volume impact due to business

disruptions in the UK and EU, could be positive or negative; 2) Cross-currency impact from

depreciation of GBP and Euro on USD reported top-line growth and margins; 3) Valuation

impact due to higher perceived risk. While currency volatility (GBP, EUR) is an immediate risk,

researcher see’s bigger concerns on the demand front as clients are likely to go slow on decision-

making and defer new projects. This combined with an ongoing slowdown in the sector will

weigh heavily on P/E multiples. This research paper will help stakeholders to know the outlook

Tier-1(Nifty 50) IT companies going ahead to make an investment decision.

Keywords: Nifty50, Brexit,Cross-Currency, Valuation

Introduction

Indian IT – Exposure to Europe and United Kingdom: Indian IT draws higher proportion of

revenues from Europe and United Kingdom. The recent development of Brexit is posing a

serious threat for the sector. Indian IT companies draws 26% of total revenues from Europe.

Tech Mahindra has higher exposure among large cap companies, while Infosys has least

exposure of 23% to Europe. TCS has one of the subsidiaries in UK -Diligenta, which has not

been doing well over last few quarters.





46 | P a g e

Source: Company

Objectives

To study impact of Brexit on tier -1 Indian IT Companies.

The key factors which will impact the company’s revenue and margins going forward.


The research carried out is descriptive in nature and uses secondary sources of data such as

quarterly press release, quarterly factsheets, quarterly Investor presentation, company websites

and Nasscom press release.

Sampling design

Five top IT companies which are included in Nifty Index are taken for this study. Tata

Consultancy Services Ltd, Infosys Ltd, Wipro Ltd, HCL Technologies Ltd and Tech Mahindra

Data Analysis and Interpretation

Brexit to hit demand for IT services but impact difficult to quantify

16

26

23

2628 29

0

5

10

15

20

25

30

35

CTSH TCS INFO WIPRO HCLTECH TECHM

Europe Exposure (%)





47 | P a g e

Researcher feels the Brexit will impact the revenues of the Indian IT services, but currently it is

difficult to quantify. Researcher expects a direct negative impact on the client IT spending. This

event will have impact on the revenues of Indian IT sector over net 2-3 years, as the clients in

europe will defer their capex plans. There is certain uncertainty with respect to trade pacts signed

with various countries etc,

Source: Company

Source: Company

3.1

1.7

24

4.4

Revenue QoQ CC organic growth (%)

TCS INFOSYS WIPRO HCLTECH CTSH

59.9 72.3 6654.6 65.7

7.99.6 9

14.211.3

13.26.7 6.7 12 10.8

0%10%20%30%40%50%60%70%80%90%

100%

TCS INFOSYS WIPRO HCLTECH TechM

Revenue exposures by billing currency

USD EUR GBP





48 | P a g e

Volume impact (non quantifiable, medium-term impact, mix of positive and negative).

Clearly, business uncertainty would create ambiguity in decision making around IT and cause

potential push out of projects. Indian companies have large exposure in the banking and financial

services (BFSI) and manufacturing verticals in Europe, and delay in discretionary spending here

is a clear negative for the sector. At the same time, re-evaluation of business priorities and

shuffling business out of the UK could create opportunities for IT spending on both change and

run side of businesses. Revenue exposure to Europe for the Indian IT companies: TCS (Europe

26.8%, with UK 15.9% and Continental Europe 10.9%), Infosys (23%), Wipro (25%), HCL

Tech (31%), Tech M (29%).

Source: Company

Source: Company

7

12

5 5 52

-3 -4

4 3

-2 -1

-5

0

5

10

15

0200400600800

10001200

USD revenue & growth in Europe (incl. UK):

INFO

Revenue % Growth

-3

6 5

1-1

4

-2

-6

1

8

2 2

-10

-5

0

5

10

0100200300400500600700

USD revenue & growth in Europe (incl. UK): TCS

Revenue % Growth

-3

6 5

1-1

4

-2

-6

1

8

2 2

-10

-5

0

5

10

0100200300400500600700

USD revenue & growth in Europe (incl. UK):

TCS

Revenue % Growth





49 | P a g e

Source: Company

Source: Company

Should we be worried about BFSI?

The large banking stocks in the UK (Barclays, RBS and Lloyds) had seen fallen by 24-31%when

Brexit was announced, while their EU counterparts like DB, UBS and Credit Suisse were not

0

12

8

57

02

-2

1

5

-4 -4-6-4-202468101214

0

100

200

300

400

500

600

USD revenue & growth in Europe (incl. UK): HCLT

Revenue % Growth

14

8

-2

4 45

4

1-1

2

-1

2

-4-20246810121416

0

50

100

150

200

250

300

350

USD rev. & growth in Europe (incl. UK): TECHM

Revenue % Growth





50 | P a g e

been spared either, and have fallen by 21-23% over the same period. Stocks of US-centric banks

like JP Morgan and City have remained irrelatively unscathed with only a single-digit decline.

Source: Yahoo Finance

Source: Company

The single largest doubt for UK-based banks is their ability to borrow and service debt amidst

the onset of a potential GBP crisis, in addition to concerns over the UK economy and the impact

on employment. In terms of a more long-term uncertainty, London’s future as a financial capital

-30 -31

-24-21 -21

-23

-7-9

Change in stock price since vote (%)

40 41

33

25 25

0

10

20

30

40

50

CTSH TCS INFO WIPRO HCLTECH

BFSI Exposure (%)





51 | P a g e

is now also in doubt and is impacting global banks as well (with a section of global leaders

against London being allowed to retain its privileges post Brexit).

Not surprisingly, it is difficult to determine what this bodes for IT spending in the immediate

aftermath of Brexit. That said, this has added to what was already a macro scenario which was

far from sanguine and by no means firing on all cylinders. While business-as-usual and lights-on

tasks will continue, decisions around discretionary work should slow down further.

Impact on talent mobility from outside the EU

The historical surge in immigration was one of the key factors behind the higher number of

“leave” votes, as per most surveys and experts. At a net migration of336,000, the annual number

is well above the target to bring it below 100,000.Whether migration is now curtailed remains a

function of the kind of relationship that would replace UK’s EU membership.

The problem of low skilled/unskilled immigration from any EU state is outside the realm of

Indian IT. However, there is a very high possibility of tighter control on skilled and unskilled

workforce entering the UK. In January 2016, the Migration Advisory Committee had proposed

to increase the minimum salary level of IT employees entering the UK for short or long term to

GBP41, 500. In its response in March, the government had noted that all intra-company

transferees should qualify under a single visa category with a minimum salary threshold of

GBP41, 500, with the exception of graduate trainees.

(Link:https://www.gov.uk/government/news/migration-advisory-committee-reviews-oftier)

2). If this does become effective from April 2017, then it would mean an impact of 100bp+ on

margins of various companies.

Substantial currency risk

The revenue impact in terms of percentage is higher for indian companies as compared to

currency exposure, as the Indian companies receive the receivables in US dollar terms. Their





52 | P a g e

majority clients pay in US Dollar terms. Indian companies have 10% exposure to GBP and 9% to

EUR. Overall the exposure to Europe is 20% of total revenue.

The immediate impact: Effects of GBP depreciation

The immediate discernable impact of Brexit will come from currency movements, as

reflected in GBP and JPY recently. In Q1FY17, prior to Brexit, all the currencies had

appreciated against the USD to the extent that it would benefit USD revenue growth in the

range of 75-125bp. However, post Brexit, the GBP has depreciated by 10% and the EUR by

3% within a week.

While the current quarter could still end up witnessing a positive currency impact, at the

prevailing rates, the YoY impact on revenue across the top tier varies between -80bp to -

140bp. TCS, which is the most dependent on the GBP, has not been impacted the highest

though, thanks to the negating effect of JPY’s appreciation. The net impact has been

tabulated below.

FY16 Current Change (%)

GBP 1.5079 1.3384 -11

EUR 1.1046 1.1065 0

AUD 0.7366 0.7417 1

JPY 0.0083 0.0097 17

INR 0.0153 0.0148 -3

The revenue impact in terms of percentage is higher for Indian companies as compared to

currency exposure, as the Indian companies receive the receivables in US dollar terms. Their

majority clients pay in US Dollar terms. Indian companies have 10% exposure to GBP and 9% to

EUR. Overall the exposure to Europe is 20% of total revenue.

Cross-currency Impact on Revenue and Margins

GBP has seen a ~10% depreciation and the Euro a ~5% depreciation vs the USD in response





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to the news. If these levels were to sustain, this would create a 115-215bps negative impact on

USD reported revenue growth across the Top-5 (TCS -171bps, Infosys -115bps, Wipro-155bps,

HCL Tech -213bps, Tech M -165bps). This would flow through into margins as well

with a 55-110bps negative impact on margins at the Ebit level (TCS -85bps, Infosys -55bps,

Wipro -77bps, HCL Tech -110bps, Tech M -82bps).

Source: Company

Mitigants of cross-currency impact

While a near-term impact on top-line growth would be imminent if these levels were to sustain

and trends continue, margin impact could be mitigated by adjusting internal cost structures

(onsite offshore mix, utilization, average age and wages). Nevertheless, it will put incremental

pressure on profitability given the pricing pressures in the sector. A late catch-up in INR

depreciation could also be a mitigant.

Commentaries by CTSH and EPAM ‘stark’

Comments from Indian IT companies on Brexit and its implications varied across the board.

However, companies were unanimous in their opinion that it is too early to gauge the impact of

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15

17

19

21

23

25

27

29

Q1FY15 Q1FY16 Q1FY17

EBITDA margin pressure

TCS WIPRO INFOSYS HCLTECH





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Brexit on their businesses. While TCS cited no Brexit impact on growth just yet, INFO

mentioned clearly that it did not factor in any negative impact on its guidance. On the other hand,

commentaries by MNC peers like CTSH and EPAM throw light on business challenges facing

them amid slowing decision making and deferred discretionary spending.

Pressure on BFSI means not many are insulated

CTSH cut its CY16 growth guidance to 8.5-9.5% from 9.9-12.8% earlier, citing short-term

headwinds from macroeconomic uncertainty, which is impacting BFSI the most. It guided for

1.8-3.0% QoQ growth in 3QCY16 (despite 3Q being seasonally strongest for sequential growth),

compared to average QoQ growth of 6.8% since CY07. We note that BFSI grew 1.7% QoQ CC

at INFO, 1.7% at TCS, 2.9% at WPRO and flat at HCLT. While BFSI at CTSH grew 5.1%, it

suggested that near-term bets are off.

EPAM already seeing spend cuts

While EPAM retained its growth guidance of 26% YoY CC, the commentary was no less

disconcerting. EPAM cited macroeconomic uncertainty as a main reason for impaired visibility,

increased volatility and hazy discussions with customers. It has already started witnessing

spending cuts and pricing pressure in its European bank clients. Uncertainty thus seems to be

taking precedence, despite stable budgets and intent to spend on Digital, which hampers business

predictability.

Opportunity in (regulatory) adversity?

Regulatory-driven IT spending has been a key growth driver for India-origin providers (IOPs) in

the BFSI vertical. Will the UK-EU divorce usher in a new order as far as the regulatory

landscape is concerned?

Arrangements like “Passporting” (wherein a BFSI firm can operate across the EU as long as it

has a base in the UK), legal frameworks and many more could be reversed / changed, going





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forward. This could potentially create areas of growth opportunities for the sector. Given the

timelines though, researchers see that as a medium-to-long term opportunity

Not all companies’ valuations are capturing weakness ahead

Difference between commentaries of India-based providers and MNCs should only converge

over time. In the near term, growing pressure in BFSI remains an overhang on the top-tier

(exTECHM) firms. As a consequence, TCS steep valuations will be sternly tested. INFO at

relatively discounted valuations could outperform; however, materialization of the same could be

kept in check by fears of further cut in guidance. TECHM may be in for a relatively good time

given: [1] limited BFS exposure, [2] improving telecom spending, [3] discounted valuation and

[4] undemanding expectations. Researcher believes execution on margins is the key. With

margin fears allayed at HCLT, the stock has already seen an uptick; triggers to further upside lie

in sustained organic growth delivery after an impressive Q1FY17 performance. Wipro’s higher

P/E than HCLTech, TechMahindra amid growth/margin weakness poses a risk.

Conclusions/Recommendations

The Impact of Brexit will hurt the medium term fundamentals of Indian IT sector. The clarity on

the impact will get only with time; with the immediate discernible impact coming from currency

movements.

The threat will be BFSI clients in Europe which will put pressure on valuation of companies. The

decision by the clients to it spending will be delayed going forward, keeping in mind the

uncertain macro environment.

Valuation - P/E Multiple to Reduce for the sector

With the Uncertain Macro Environment and in risk of reduction on client it spending by the

clients would put pressure on current P/E multiples for the sector. Researcher indicate during

similar situation in 2008, the set or witnessed 50% reduction in P/E multiples for the sector,





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though researcher do not expect such a severe devaluation, researcher believe rising impact on

revenues will put pressure on current p/e multiple of the companies. Researcher expects TCS

valuation will be under pressure and going forward the demand commentary by the Indian it

players will be key

References

https://www.infosys.com/investors/

http://www.tcs.com/investors/Pages/default.aspx

http://www.wipro.com/investors/

http://www.hcltech.com/investors/results-reports

http://www.techmahindra.com/investors/default.aspx

www.yahoofinance.com

https://www.infosys.com/investors/

http://www.tcs.com/investors/Pages/default.aspx

http://www.wipro.com/investors/

http://www.hcltech.com/investors/results-reports

http://www.techmahindra.com/investors/default.aspx

http://www.yahoofinance.com/

VISHLESHAN INTERNATIONAL JOURNAL OF ENGINEERING & MANAGEMENT

(VIJEM), ISSN (ONLINE): 2455-524X

Documents

VISHLESHAN INTERNATIONAL JOURNAL OF … 1 issue 4 july-sept 2016 vishleshan international journal of engineering & management (vijem) (an open access quartly