Posts Tagged ‘pharmaceutical industry’

India’s growth story

March 14, 2011

The Indian economy is boosting with growth and is attracting the foreign players to come, invest and be part of the aspiring Indian investment climate. One of the leading sectors harnessing the limelight potential is the Indian Fast Moving Consumer Goods sector, with a market size of US$ 25 billion (2007–08 retail sales). Food products being the largest consumption category in India, so much so that the sector constitutes nearly 2.15 per cent of India’s gross domestic product (GDP). India is recognised as a cost-effective quality manufacturing base in the world market. Food products accounts for nearly 21 per cent of the country’s GDP. India is the largest producer of several fruits, such as banana, mango and papaya, and the second-largest producer of vegetables such as brinjal, cabbage and onion. The food processing industry is one of the largest industries in India, and is ranked fifth in terms of production, consumption, export and expected growth.

Tracking the size of the food processing industry in India, it has increased from US$ 57 billion (INR 2,736 billion) in 2004 to US$ 75 billion (INR 3,600) in 2007. Moreover, the sector attracts foreign direct investment (FDI) worth Rs 576 crore (US$ 127.50 million) in the first eight months of 2010-11, according to Mr Harish Rawat, Minister of State for Agriculture and Food Processing Industries.

CG Foods, a noodles and snacks firm set up by Singapore-based Cinnovation Group, is all set to invest Rs 40 crore (US$ 8.82 million) for establishing a manufacturing plant in Gujarat.

The FMCG forms a concrete part of every individual’s life. With the facilitation from the Indian government and the relatively aloof economy during the recession, the companies are foraying into the Indian market with their products in order to tap the vast middle class base of India.

The industry intends to provide additional option to the consumer. Keeping the lead, companies are also looking forward to spend upon research and technology (R&D), with Nestle, another FMCG major plans to invest Rs 230 crore to set up its first R&D centre in India at Manesar in adjoining Gurgaon district.

The invariably growing Indian economy is witnessing its golden age, with the Indian talent in research being recognised globally. The companies foraying into India harness the potential and reap the benefits of the low infrastructure, production and labour costs. In addition, the companies in India like the Pune-based Thermax, has initiated a solar project at a village in Chakan near Pune, in association with the Department of Science and Technology at a cost of US$ 2.84 million to electrify the village. It is these developments, which form the backbone of the growth story of India. It is technology sector, which forever provides inputs to the innovation and research and ignite the investment climate in India.

Significantly, research in science and technology sector includes various sectors include nano technology, renewable energy, space sector besides other related sectors. The investment climate in India being conducive and open to be harnessed is all ready for companies in India and that from abroad. In all the presence of good, sophisticated and latest technological infrastructure attract the foreign firms to have their respective development centres in India, besides reaping the benefits of the lucrative investment climate in India.

The growing consumer market in India

February 10, 2011

The invariably growing Indian economy is witnessing its golden age, with the fast moving consumer goods (FMCG) global companies foraying into India to harness the potential and reap the benefits of the rampantly growing economy. The FMCG in India form a significant part of the business world in India, as the heightened access to information has made the consumer more aware. It assists the consumer in comparing and asking for better products.

The growing consumer markets have reeled in a new era of retailing. No wonder the international fast moving consumer goods (FMCG) companies like Carrefour and the Wal Mart are pressurizing the Indian government to open the India’s multi-brand retail sector. Carrefour, the world’s second-largest retailer, opened its first cash-and-carry store in India in New Delhi on December 31, 2010 to tap the Indian Consumer Market. The store, Carrefour Wholesale Cash&Carry, is located in the Seelampur area, east of New Delhi in the Shahadara neighborhood.

Moreover, Chennai-based FMCG India space reported CavinKare’s plan to invest around US$ 109.50 million over the next two years in various expansion plans. In addition, Nestle, the fast moving consumer goods (FMCG) major, plans to invest US$ 50.49 million to set up its first research and development (R&D) centre in India at Manesar in adjoining Gurgaon district. The facility will be made operational by July 2012.
Similarly, the direct selling Fast Moving Consumer Goods (FMCG) company, Amway India Enterprises is aiming at a 25 per cent growth to clock US$ 545.7 million by 2012.

Additionally, the Swiss fast moving consumer goods (FMCG) player, Nestle plans to make further inroads into the rural consumer markets. The company has asked its sales team to deliver “6,000 new sales points every month in rural areas” to expand presence in Indian villages, according to Antonio Helio Waszyk, Chairman and Managing Director, Nestle India. India’s FMCG sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018.

Furthermore, according to data from market researcher Nielsen, the fast moving consumer goods industry posted a 14 per cent sales growth year-on-year in April 2010, the highest in eight months. US-based Harley Davidson, the iconic heavyweight motorcycle maker is targeting the urban consumers markets in India. Harley Davidson opened its first outlet in Hyderabad recently and plans to open more across the country.

Indian consumer market had access to private label products in food and beverage, apparel, footwear and fast moving consumer goods products.

On another note, the number of foreign tourist arrivals in India has increased as India continues to be a favored tourist destination for leisure, as well as business travel. Banking on the government’s initiative of upgrading and expanding the country’s infrastructure like airports, national highways etc, the Tourism and Hospitality industry is bound to get a bounce in its growth. Significantly, the Indian hospitality industry is projected to grow at a rate of 8.8 per cent during 2007-16, placing India as the second-fastest growing tourism and hospitality market in the world. Initiatives like massive investment in hotel infrastructure and open-sky policies made by the government are all aimed at propelling growth in the hospitality sector. The Indian hospitality sector is certainly the most apt replication of the belief ‘Atithi devo bhava’- touch of tenderness, a helping hand and a welcoming visage.

The flamboyant economy of India

December 17, 2010

The boosting economy of India is offering great potentials for doing business in India for the overseas investors to make investment in India and is encouraging them to consider India as one of the best place for their business development. The most in focus sector being the real estate. Inflation rate is coming down and increased market demand for goods and services are good signs which attract foreigners to do business in India.

There are various factors like quality, availability and reliability of infrastructure services, state or central government’s efforts, good power supply, transportation facilities connecting important nodal points, relaxed tax regulations, efficient banking systems and relatively cheaper availability of labour and raw material, export and import options etc. Doing Business in India is the most attractive destinations for the investments. Even the World Bank analysis has indicated that the infrastructural development and institutions remain the main factors in the development of India’s private sector. The real estate sector is one of the most booming sections in India.

The economy of India is one of the fastest growing economies of the world with good population base. The growth rate of gross domestic product (GDP) is reviewed around 8.75 per cent plus against 7.4 per cent in the previous year. The International Monetary Fund (IMF) indication of India’s GDP is much higher at a growth rate of as high as 9.7 per cent. The economy of India is one of the most favorable economies in the world as of now. This higher growth trends are creating good opportunities to do business in India.

The Banking system of India has survived well to the global economic crisis. In India, nationalized banks play an important role in banking sector (50.5 per cent of the aggregate deposits and hold the highest share of 50.5 per cent in the total bank credit. Banking facilities both through the foreign banks and regional rural banks had a share of 5.5 per cent and 2.5 per cent respectively in the total bank credit.

The economy of India is one of the most robustly growing economies in the world with a huge population base. The recent trends show that the growth rate of Economy of India will grow at around 8.75 per cent for current year. The Indian economy is performing well as the purchasing power parity has increased in the last six months.

Economy of India is ranked the fifth largest economy in the world and third largest GDP in the entire continent of Asia. The world’s popular brands have started seeing the economy of India as the potential market for their business expansion.

Conclusively, it is no surprise for India being chosen as one of the most favoured foreign direct investments (FDI) destinations as the economy of India grows in leaps and bounds. The strong banking system proved a blessing during the financial meltdown, even opening the opportunities for doing business in India. Besides, the real estate and infrastructure management turned out to top the private equity (PE) investment sector at 23 per cent of the total with US$ 99.36 million, according to Deal tracker October 2010, Grant Thornton.

The Positive Economic Growth in India

November 24, 2010

The economic growth in India is on a rampant move with Mr Pranab Mukherjee hoping the gross domestic product to reach 9 per cent as he said while addressing the India Economic Summit (IES) 2010.The economic growth in India is all set to surpass the developed countries as it rides high on back of manufacturing and an overall positive investment climate in India. The companies in India are all set to harness the potentials being created by the robust economic growth in India. The foreign companies in India are glad to be part of the investment climate in India, as the economies of the developed countries struggle to stay intact.

The investment climate in India is also representative of the growing Indian economy and the prospering business opportunities in India. The soaring sales being highlighted by the companies in India are reflective of the potentials of the investment climate in India. The investment climate in India is very much dependent on the consumer and the Economic Growth in India is boosting on basis of the latter. The economic growth in India is also ascertain to India’s foreign exchange reserves, which have crossed the US$ 300 billion mark for the first time since August 2008. The data in itself represents the positive investment climate in India and the economic growth in India.

Furthermore, economic growth in India’s merchandise exports will cross the US$ 200 billion target for 2010-11 and the Government is working with the industry to double India’s exports of goods and services by 2014, said Mr Anand Sharma, Union Minister of Commerce and Industry. The economic growth in India had registered a growth rate of 8.8 per cent in the first quarter of 2010. The investment climate in India is moving positively and is assisting to improvise the economic growth in India to achieve the double digits.

Significantly, with the two-way trade between India and the United States, expected to reach US$ 50 billion in 2010-11, with investments moving in both directions, said India’s Ambassador to the US, Meera Shankar. Thus, the investment climate in India is dependent on various factors including the positive attitude of the Indian Governments, besides the healthy competition environment as mooted by the Companies in India. The overall image of the economic growth in India is favourable especially in terms of the investment climate in India.

India’s infrastructure sector output grew 2.5 per cent in September 2010 from a year earlier, slower than the upwardly revised annual growth of 3.9 per cent in August, as per the Government data. The Investment climate India is also directly proportional to the demand and supply. The increasing consumer awareness and the ability to compare and ask for the best, in addition to the increasing economic growth is representative of the positive economic growth in India. The investment climate in India is an indicator of a boosting economic growth in India. Companies in India are representative of the investment climate in India, which is a harbinger of the growing economy and confirm the goal of the double digit growth as a reality.

Infrastructure and the Investment climate in India

November 10, 2010

India economy seems to be in its most positive note of development, as it witnesses overall infrastructure development, with companies in India and that from abroad demanding better infrastructure quality. The tempting and prosperous investment climate in India is reaching out to all corners of the globe. The investment climate in India is the most conducive market for companies to invest especially with focus on infrastructure sector which has given an impetus to the companies in India.
The companies in India are utilizing the potential created by availability of better infrastructure developments.

The recently held Commonwealth Games (CWG) also led to increased Infrastructure developments with regard not only to flyovers, metro lines, a new airport terminal but also infrastructure related to Sports. These infrastructure developments have created a much healthy investment climate in India, not only for the companies in India but also for companies coming from abroad and investing in India.

It is on these lines that the globe has become a more accessible place for companies in India including infrastructure developments related to IT. Significantly, Mr Pranab Mukherjee, Finance Minister expects around 50 per cent of the total spending on infrastructure to come from the private sector by 2012. The great advantaged of infrastructure is not only better transportation, accessibility or connectivity but also helps in improving the investment climate in India. Recently, riding on the investment companies in India, RITES (Rail India Technical and Economic Services) has expressed interest in offering its services in the infrastructure development including airports, roads, ports, railways, and mass rapid transit programmes in Kenya.

The Investment climate in India is one of the most significant factors especially during the global meltdown period. The infrastructure in India is coming to the international standards as the companies in India are ready to provide and compete the global markets besides the domestic markets.

Furthermore, the infrastructure developments in the Science and Technology sector is also reaching new heights and it is these infrastructure developments, which are leading the companies in India are witnessing a surge in funds from FII’s. Additionally companies in India like the Pune-based Thermax, has initiated a solar project at a village in Chakan near Pune, in association with the Department of Science and Technology at a cost of US$ 2.84 million to electrify the village. It is the science and technology sector, which forever provides inputs to the investment climate in India a boost.

Significantly, the science and technology sector includes nano technology, renewable energy, space sector besides other infrastructure related sectors. The investment climate in India being conducive and open to be harnessed is all ready for companies in India and that from abroad. In all the presence of good, sophisticated and latest technological infrastructure will attract the foreign firms to have their respective companies in India, besides reaping the benefits of the lucrative investment climate in India. Thus, concluding the investment climate in India to be of great potentials, which is offering potentials in infrastructure developments over a large base of sectors.