SME Opportunity in Indian Markets

crunchkingofprussiaΒιοτεχνολογία

6 Δεκ 2012 (πριν από 4 χρόνια και 8 μήνες)

230 εμφανίσεις

SME Opportunity in Indian Markets


December 01, 2006



Sanjeev Mantri

Joint General Manager

ICICI Bank Limited

2

Agenda

Overview


ICICI Bank

Emergence of Indian Economy

SME Opportunity
-

India

3

Agenda

Overview


ICICI Bank

Emergence of Indian Economy

SME Opportunity
-

India

4

Assets of US $
56.3 bn

Globally held
(ADR, FII &
NRI's own
73.9% stake )

Second largest
Bank in India
-

Technology
Leader

Largest Private
sector Bank in
India

First Indian
Bank to be
listed on NYSE

ICICI Bank


New face of Indian Private
Sector Banking

5

Our international franchise

Branch

Subsidiary

Representative Office

Canada

UAE

Singapore

China

USA

UK

India OBU

Bahrain

Russia

South Africa

Bangladesh

Hong Kong

Sri Lanka

Antwerp
1

1. Branch of ICICI Bank UK

Malaysia

Indonesia

Thailand

6

ICICI Bank
-

growth horizons

Retail & SME
banking

Rural
banking

International

banking

…with continuing focus on
the corporate banking and
building SME franchise

7

Some accolades in 2005
-
06

“Bank of the Year Award for India” by The Banker

“Best Bank in India” by Euromoney

“Best Integrated Consumer Bank Site in Asia”

by Global Finance


“Best Corporate / Institutional Internet Bank”


by Global Finance


“Best Consumer Internet Bank” in India


by Global Finance

Listed on Forbes'


Asia's Fab 50

8

Agenda

Overview


ICICI Bank

Emergence of Indian Economy

SME Opportunity
-

India

9


Inward oriented and licensing regime



Capitalising on domestic demand



Directed lending and baking for urban rich
only

Pre
-

90's
landscape

Mid
-
90's economic
liberalisation

Emergence of Indian Economy
-

I


Opening up of the economy and
reduction in trade barriers



Regulatory and financial sector
reforms



Restructuring to achieve world class
efficiency

10


Indian economy gearing up for post GATT /
WTO scenario



Accessing global markets for funds raising
and exports



Improving quality standards



India's recognition in i.e. intellectual capital,
skilled labour and raw materials

Early 2000's belt
tightening phase

Post 2003
Integration with
global economy

Emergence of Indian Economy
-

II


Articulation of international
competitiveness



Exposure to global forces



Increasing deployment of
technology



Indian SMEs were re
-
aligning and
looking for pro
-
active support for its
financing needs.

11

Key economic growth drivers

Continued
expansion of
services sector

Upward
migration of
incomes

Demographic
forces

Resurgent
industrial sector

Resurgent
industrial sector

Sustaining
GDP growth
rate of above
8%

…growing international linkages giving impetus to all sectors of
the economy

12

Buoyant investment & financial markets

Equity Markets

Among best performing markets in the world

NSE and BSE ranked 3
rd

and 5
th

in no. of transactions globally*

Bank Credit

Bank credit grew by 35% in FY2006

Foreign Institutional
Investor

Increased by 281% from from
FY2000 levels to US$ 11.53 bn in
FY2006
#

Foreign Direct
Investment

Increased by 178% from from
FY2000 levels to US$ 5.97 bn

in
FY2006
#

Investment
led growth

*NSE (National Stock Exchange) and BSE (Bombay Stock
Exchange)


13

Agenda

Overview


ICICI Bank

Emergence of Indian Economy

SME Opportunity
-

India

Play film

14


SME Sector in
India


accounts for

35 % of exports


95% of all industrial units


40% of industrial output

70% of industrial employment

Prime driver of new

employment

Source: SIDBI Report


SME sector is vital to
the Indian economy

Indian SME Opportunity

15

Textiles

Auto Ancillaries

Retail trade

Infrastructure

Pharmaceuticals

Engineering

Logistics

Travel & Tourism

Software & IT services

Growth opportunities in India

16

Auto ancillaries

Industry

Indian Auto ancillaries industry opportunity

Global auto ancillaries market estimated at US$
1600 bn plus

Indian Industry is US$ 10 bn with 20% exports.

India serves just 0.6% in global auto
-
comp market.
Indian pie in world to become 3% by FY15

Last 3 years observed Domestic growth of 23%
CAGR & export growth of 35% CAGR.

100% FDI allowed through the automatic route


More on Auto ancillaries

17

Gems

& Jewellery


Industry

Indian Gems & Jewellery industry
opportunity

Global Gems and Jewellery market estimated at
US$ 85 bn

Indian Gems and Jewellery industry share in global
markets is US$ 14.2 bn

India has the largest cutting and polishing industry

Growth opportunities : Manufacturing of Polish
Diamonds and Diamond Jewellery

Low Cost base and design skills is the competitive
edge

18

IT / ITES


Industry

Indian IT / ITES industry opportunity

Global IT / ITES market estimated at US$ 1029 bn

Indian IT / ITES industry share in global markets is
US$ 29.6 bn

Industry expected to grow at a CAGR of 50% per
annum and to reach US$65 bn by 2009 (Mckinsey
study)

Growth opportunities : Software services and
product development, IT Consulting, Hardware
manufacturing

Constant supply of highly qualified pool of skilled
English speaking software engineers

19

Pharmaceuticals


Industry

Indian Pharmaceutical Industry opportunity

Global Pharmaceutical market estimated at US$
600 bn plus

Indian Pharmaceutical industry share in global
markets is just 1.8%

In terms of market ranking India ranks 4
th
in Volume
terms, 13
th

in Value terms & 8
th

in Manufacturing
capabilities terms in the world

Growth opportunities : CRAMS (Contract Research
and Manufacturing Services) and Clinical Research
& Generics

Business Segments : Biotechnology, Formulations,
Bulk Drugs & CRO’s

20

Biotechnology


Industry

Indian Biotechnology opportunity

Global Biotechnology market estimated at US$ 46
bn plus

Indian Biotechnology industry share in global
markets is just 1.5%

In terms of no. of Biotechnology companies India
ranks 11
th

in the World and 3
rd

in Asia pacific

Growth opportunities : Contract R&D, Contract
Manufacturing, Technology Transfer and Clinical
Trails

Business Segments : Biopharmaceuticals,
Bioagriculture, Bioinformatics, Bioscience and
Bioindustry

21

Textile

Industry

Indian Textile Industry opportunity

Global Textile and apparel trade is estimated to be
US $ 450 bn

Indian textile industry is growing at 20% and
accounts for 4% of India’s GDP

India is the third largest producer of cotton`

Major player in the home textile segment

Indian industry estimated at US$ 46 bn with exports
of US$ 16 bn

22

www.sme.icicibank.com

23

Safe Harbour

Except for the historical information contained herein, statements in
this Release which contain words or phrases such as 'will', 'would',
‘indicating’, ‘expected to’ etc., and similar expressions or variations of
such expressions may constitute 'forward
-
looking statements'. These
forward
-
looking statements involve a number of risks, uncertainties
and other factors that could cause actual results to differ materially
from those suggested by the forward
-
looking statements. These risks
and uncertainties include, but are not limited to our ability to
successfully implement our strategy, future levels of non
-
performing
loans, our growth and expansion in business, the adequacy of our
allowance for credit losses, technological implementation and
changes, the actual growth in demand for banking products and
services, investment income, cash flow projections, our exposure to
market risks as well as other risks detailed in the reports filed by us
with the United States Securities and Exchange Commission. ICICI
Bank undertakes no obligation to update forward
-
looking statements
to reflect events or circumstances after the date thereof.


24

Thank you…


For any further queries, you can reach me on:

Mobile
-

+919870101780

Email


sanjeev.matri@icicibank.com

25

FY1991

(%)

Sectoral share
of GDP (%)

32

Agriculture

25

Industry

43

Services

GDP Growth in
2006 (%)

3.9

7.6

10.3

GDP

8.4

Source: RBI,CSO

Structural shift in economy with renewed
growth across all sectors

FY2006

(%)

21

19

60

Sublimating India’s knowledge capital to create economic value

Agriculture

Industry

Service

26

Services sector driving momentum


Accounts

for

over

60
%

of

GDP

Leveraging rich pool of human capital


Quality educational institutions


Large English speaking population


Knowledge sectors earnings
of US$12.9bn:

Pharmaceuticals,
Biotechnology, Engineering design


Growth in financial services, travel
& hospitality

Back

Software exports of US$ 23.6
bn in FY2006


International IT services hub


Global back office

27

Resurgence of industrial sector

Expansion of Indian industry to global markets


Growing export orientation


25% growth in FY2006


Setting up international marketing and distribution
networks


Acquiring/ creating production capacities overseas


Potential for acquisition/ project financing and trade
finance

Back

Buoyancy

in

credit

demand

from

industrial

and

infrastructure

sector

across

large

corporate

as

well

as

SME

space

28

7
23
35
35
>60

35
-
59

15
-
34

0
-
14

10
30
35
25
23
36
26
16
8
26
37
29
Demographic advantage
-

BRIC

58% of the population is in the age group of 15
-
59 years. By 2015 most of the countries
will witness gradual shift in labour arbitrage except India due to continuous addition of
young skilled work force.

(Age
group)

(percentage of population)

India

China

Russia

Brazil

Back

29

Upward migration of incomes

FY1996

FY2002

Middle income

High income

33

50

1

3


Rising affluence and growth of the consuming class


NCAER data for top 24 cities in India shows
migration to higher income levels growing at over
40% per annum

FY2010

Estimate

98

10

(households in million)

Middle income US$ 2000
-

11000 per household p.a.
High income > US$ 11000 per household p.a.

Back

30

Auto ancillaries

Industry

Indian Auto ancillaries industry opportunity

India's Strengths


Strong Engineering Skills


Emerging Culture of Cost competitiveness


Technically Skilled Manpower leading to labour
price arbitrage

“US based Auto Vendors can potentially increase
ROS by 3%
-
6% by shifting manufacturing to India”
Mckinsey Report

31

Auto ancillaries

Industry

Indian Auto ancillaries industry opportunity

Who's Outsourcing to Indian SME?

Large OEMs…


GM,US
-
global purchase team


Volvo
-
Global buying Team


Ford


full fledged sourcing team


Honda


Toyota
-
hub for transmissions


Caterpillar


global purchase team


John Deere


Piaggio


Next