1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

ABOUT INDIA .......................................................................................................................................................................... 2 GLOBAL ................................................................................................................................................................................... 3 RURAL MARKET ....................................................................................................................................................................... 4 ADVERTISING .......................................................................................................................................................................... 5 FMCG (GENERAL) .................................................................................................................................................................... 6 SOAP ....................................................................................................................................................................................... 8 RETAIL ..................................................................................................................................................................................... 9 DURABLES ............................................................................................................................................................................. 10 DTH SERVICES........................................................................................................................................................................ 11 MOBILE PHONES ................................................................................................................................................................... 12 TELECOM ............................................................................................................................................................................... 13 INTERNET .............................................................................................................................................................................. 15 CARS ..................................................................................................................................................................................... 16 BIKES ..................................................................................................................................................................................... 18 WATER PURIFIER ................................................................................................................................................................... 19 BANKING ............................................................................................................................................................................... 21 CHOCOLATE........................................................................................................................................................................... 22 BEVERAGES ........................................................................................................................................................................... 23 SNACK FOOD ......................................................................................................................................................................... 25 STATIONERY/PAPER MARKET................................................................................................................................................ 26 INSURANCE ........................................................................................................................................................................... 27 HEALTHCARE AND PHARMA .................................................................................................................................................. 28 COPENHAGEN SUMMIT ......................................................................................................................................................... 29 BIGGEST NEWS OF 2009 ........................................................................................................................................................ 30

Compiled by Vivek Vijayan.P | Team Lead- Career Development Cell | Team CRISP 2010

1 About India
1.1 Demographics

Grew by 13.3 per cent to Rs 40,141 in 2008-09, against the revised estimate of Rs 35,430 for 2007-08. The number of HNIs is going to treble by 2018 and add whopping $4 trillion to their wealth(2009 report from Merrill Lynch) 240 million households in the country According to Hofstedes Cultural study, Indians are: Power distance oriented, Long term oriented, collectivist, masculine and uncertainty un-avoiders

1.2 Misc
1) Malnutrition a) HUL Research reiterated that India has over 200 million undernourished people, the largest in any country. Nearly 70 per cent of the population is deficient in iron, vitamins and minerals. 2) Pollution Control a) India rank 123rd in pollution control according to the 2010 Environmental Performance Index (EPI). 3) Indian Post a) In 2008-09, the Department of Post (DoP) carried over 6.54 billion mails, as against 6.39 billion in 200708. The number of mails carried by the department was at 8.63 billion in 2003-04, after which there was a continuous fall.

1.3 Attitidenal differences

1) North: a) Inclined towards taste and aroma rather than colour of tea. b) More probability of accepting a sturdy and strong product. 2) South: a) Has a strong preference for strong and dark tea. b) More propability of accepting a new, advanced and a bit technologically complicated product.

2 Global
2.1 US vs China
1) Trade Balance: US has trade deficit a) US exports: $5,800 million b) China: $28,000 million 2) Wealth Gap: GDP in PPP terms a) US: $14 trillion b) China: $9 trillion 3) Millitary spends a) US: $550 billions b) China: $70 billions 4) Population a) US: 307 million b) China: 1300 million

3 Rural Market
1) Nestle and GSK are launching products specifically for rural markets. a) GSK has launched Asha -- a low-cost variant (40 per cent cheaper than Horlicks) for rural markets only. Asha tastes slightly different and is priced at Rs 85 for a 500-gram pouch pack. b) Nestle, too, recently launched Rs 2 and Rs 4 products -- Maggi Masala-ae-Magic and Maggi Rasile Chow. Maggie Rasile: low-cost, light meal fortified with iron. Masala-ae-Magic is a taste enhancer containing iron, iodine and vitamin A. Developed to address the micro-nutrient malnutrition in India. c) HUL has entered the lower end of the tea market with its new offering, Brooke Bond Sehatmand. 2) Growing at 3-4 per cent per annum adding more than one million new consumers every year. 3) Now accounts for close to half of volume consumption for FMCG companies. 4) A National Council for Applied Economic Research (NCAER) study reveals there are as many middle income and above households in the rural areas as there are in the urban areas. There are almost twice as many lower middle income households in rural areas as in the urban areas. 5) The rural middle class is growing at 12 per cent as against the urban middle class growing at 13 per cent. 6) the FMCG market has grown by 23 per cent and the telecom industry by 31 per cent in rural India. 7) The share of agriculture in rural GDP has declined to 48 per cent from 60 per cent in 1994 and those employed in the non-agricultural sector have around 2-2.5 times earnings of those in the agricultural sector. The rural population that is dependent on agriculture has declined from 75 per cent in 1994 to less than 67 per cent. 8) Xpanse, the rural marketing arm of Starcom MediaVest Group, is planning to expand its reach to more villages across India. I have a vision of 800 to 900 people on the payroll (up from 350 at present) and 20,000 people working on a project basis (up from 4,000) across India over the next two or three years. In terms of the number of villages, I hope to reach 150,000 (from 75,000 at present) by 2010. 9)

4 Advertising

5 FMCG (General)
5.1 Ad spends outpace sales growth for FMCG cos (Oct 2009)

The eight listed FMCG companies collectively hiked their ad spends by 33 per cent for the first half of this fiscal, even as their sales grew at 12 per cent. What explains the sudden surge in ad spends? Part of the reason for it is that raw material prices for many large FMCG categories soaps, detergents, personal products have corrected sharply after going through the roof last year. Having endured price increases through 2008, FMCG makers are left with larger profit margins to either launch promotions, or deploy in brand-building. Players such as Hindustan Unilever have upped advertising spends to protect market shares from the now-active smaller rivals.

5.2 FMCG majors eye 25% higher sales this season (Sept. 30)
Soaps have been growing between 10 per cent and 12 per cent Godrej Consumer Products Limited expects to almost double its growth this season for its own brands. Soaps are growing much faster and we want to invest for the future by rolling out special schemes, he added. Ms Shalini Degan, Category Director, Delight and Lifestyle, Britannia Industries, said, This year we expect sales to grow between 25 per cent and 30 per cent with our gift packs. (4500 crores of Confectionary market) Cadburys new message, Iss Diwali Aaap Kise Khush Karenge.

5.3 Consumer goods cos on song as urban, rural spends remain strong(Aug 2)

For the listed FMCG companies, Sales have expanded by an average 15 % for the June quarter Significantly, FMCG sales were driven by robust volumes and not product price increases. Most listed players managed a double-digit expansion in volumes. Under-penetrated categories such as hair oils, shampoo, foods and skin-care led the growth as players redoubled efforts to expand distribution reach. 5.3.1 Cheaper brands score Smaller companies managed superior growth on good demand for mass-market brands and strong overseas sales. Consider these numbers. - Dabur Indias 22 % growth in sales in the June quarter was its best in three years. - This was mainly due to a 20 %-plus growth in such categories as hair-care, toothpaste, foods and skin-care Industry behemoth Hindustan Unilever may have reported lower growth rates than its smaller rivals this quarter, but the company points to the over 6 % swing in its volumes as a sign of improvement. Its volumes grew 2 % in the June quarter, after shrinking 4.2 % in the preceding period. 5.3.2 No monsoon impact Both urban and rural markets remain strong. We havent seen any impact from a delayed monsoon, its CEO, Mr Nitin Paranjpe, observed in the companys earnings call. The beverage industry in India is being estimated to grow at 17 per cent this year, according to experts.

6 Soap
6.1 Cinthol
1) 2) 3) 4) Created 58 years back Rs 250 crore brand is still going strong, the brands ability to stick to its core pitch freshness and deodorancy Its youth connect remains. So does its sensuality as represented by brand ambassadors such as Imran Khan and Vinod Khanna in the past, and Hrithik Roshan now.

7 Retail
1. Fifth largest retail destination globally, 2. The most attractive emerging market for investment in the retail sector by AT Kearney's report 3. India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a CAGR of 10 per cent. 4. Share of retail trade in the country's gross domestic product (GDP) is likely to reach 22 per cent by 2010. 5. According to McKinsey, likely to grow four times by 2025. 6. In the overall Retail pie Food and Grocery was the dominant category with 59.5 per cent share, valued at over $200 billion, followed by Clothing and Accessories with a 9.9 per cent share. 7. Foreign direct investment (FDI) inflows as on September 2009, in single-brand retail trading, stood at approximately US$ 47.43 million 8. Consumer spending rose an impressive 75 per cent in the past four years alone. 9. Organized retail is expected to grow at a CAGR of 40 per cent to touch US$ 107 billion by 2013. 10. The Growth Drivers a. Demographics: 60% of Indian population is below 30 years of age. Over 890 million people below 45 years of age. b. Double incomes in household c. Plastic revolution d. Urbanization 11. In the organized retail segment a. Fastest growth was recorded in the tiny health & beauty care services category: 65 per cent b. Second fastest growing organized retail category is that of Entertainment (53.8%), 12. Policies a. 100 per cent FDI is allowed in cash-and-carry wholesale formats. b. Franchisee arrangements are also permitted in retail trade. c. 51 per cent FDI is allowed in single-brand retailing.

7.1 Carrefour
1) 2) 3) 4) World's second largest retailer. All set to enter India, tying the knot with Kishore Biyanis Future Group. Carrefour, has a turnover of $127 billion Strengths a) Localisation: i) operates from local tie-ups to hiring local executives to run stores, local sourcing to merchandising. ii) When most foreign retailers viewed China as a large market, they saw it as many small markets. iii) Each store manager ran a store like a CEO with complete freedom. b) SUPPLY CHAIN STRATEGIES i) Direct procurement strategy in the markets it operates. sources 90-95 % of the products locally ii) Currently works with about 90 suppliers/farmers in UP, AP, Delhi, Punjab and Haryana iii) exports goods worth $ 170 million from India. c) Store Openings i) In China, all foreign retailers followed the centralisation policy, with one headquarter controlling the operations of all stores in the country, Carrefour did exactly the opposite. It set up regional offices in each of the Chinese provinces and that office took care of shops in that particular region. ii) Makes its hypermarkets compact depending on lifestyles of customers in countries where it operates

8 Durables
8.1 LG and Samsung turnaround
V Good: http://www.business-standard.com/india/news/korean-takeover/383619/ 1) In 1994, Unaided awareness about Samsung was close to zero, aided awareness was slightly better at 7 per cent. People thought the Japanese were the masters of all technology, and the Koreans were at best imitators. 2) Now LEADING THE PACK (Combined market share of LG and Samsung)
TVs LCD TVs Refrigerators Washing machines ACs Microwave ovens 45% 63% 43% 41% 42% 48%

3) LG did business of $2.8 billion in 2009. India accounts for about 6 per cent of LGs worldwide turnover. By 2015, India will become the second largest contributor to LGs revenue after the US and ahead of (South) Korea. Samsung crossed the $2-billion mark in 2009 India is around 2 per cent of its global turnover. 4) LG has invested $300 million and Samsung $200 million in two production facilities each. It wasnt a global factory that also supplied to India. We didnt want to make the customers wait 5) LG and Samsung brought the latest products, customised them to Indian conditions 6) Samsung India was the first in the industry to give uniform training to all technicians 7) LG as well as Samsung prices were up to 20 per cent below Sony, but around 10 per cent higher than Indian rivals. The brands were positioned as value for money 8) The first thing Samsung did was that it cut out the distributor. This, at one stroke, improved the profit margins of the dealers. More important, it improved their bankability. And dealers, who were reluctant to invest at the behest of the distributors, began to jazz up their showrooms. Of course, they began to push the Samsung brand with gusto, though its price tags were higher than those of Indian brands. 9) LG too took a new approach. Instead of going to all, it identified the best dealer in every locality, the one with maximum footfalls. It made sure that the dealer did not face competition from others in the vicinity. As a result, the dealer, who earlier got no more than 5 to 6 per cent commission on sale, now began to get as much as 12 per cent.

9 DTH Services
1) 240 million households in the country a) 115 million have no television b) 125 million television households i) 20 million have DTH 2) In the first five years, 10 million households bought DTH; in the last one year, the number has doubled. 3) Dish TV: 40%, Airtel DTH: 10%, 4) the DTH market behaves like a combination of the telecom and consumer durables markets. 5) The DTH industry is carrying on its books losses worth Rs 5,000 crore (because of subsidy on set top boxes) 6) The industry average is known to be between Rs 120 and Rs 130.

9.1 Airtel DTH

1) Airtel DTH: 10% market share 2) Airtel DTH manages to get more out of its consumers. Its average revenue per user is close to Rs 200

10 Mobile Phones
10.1 Market
1) Turnover crossed Rs 20,000 crore in 2009 2) 2009 GSM mobile market: Nokia: 70%, Samsung: 16.3% and LG: 5.9% 3) In the CDMA mobile handset market, which is around a fifth of GSM, Samsung has a share of over 25%. 4) Monthly sales of 12 million, India is undoubtedly the worlds biggest market for mobile handsets. 5) The replacement market has begun to fire big time in urban markets. It is almost 25 per cent of the market now,

10.2 Samsung
1) Mobile handsets contributed 35 per cent of Samsung Indias turnover of over Rs 9,000 crore in 2009;

10.3 Karbonn
1) In the 9 months since its launch in April 09, it has sold 1.5 million mobiles. In the lucrative multimedia segment of the market, the brand hopes to capture 7 to 10 per cent share before it completes one year. 2) A JV between Jaina Group(which started out as a distributor of mobile handsets around 15 years ago. Though it now has its own brand(Karbonn) in the market place, it is also the distributor of HTC, Motorola and LG) and UTL Group. 3) The company plans to launch three to four models every month across different segments and price points.

11 Telecom
11.1 Number of connections and stats (14 Dec 2009)
telephone connections in India (fixed line and wireless) will be closing in on 550 million second largest group of mobile phone users after China teledensity (phone connections per 100 population) of roughly 45%, an urban teledensity closer to 97% a rural teledensity of about 18% Yet, the actual number of subscribers might be less than half a billion, since a few hold multiple SIM cards and not all of them are in use at the same time. Wireline connectivity is down to 37.25 million phones Indias broadband penetration, however, is abysmally low at 7.5 million 33% of urban mobile users in India now own two or more mobile connections Amongst urban mobile users who are MCMU, 56% belog to age group of 20-35. 55% of urban mobile phone users belong to the 6000-25000 monthly income family, which means middle income families.

Market Share
Airtel 10.4% 7.7% 23.2% 17.6% 18.0% Vodafone Reliance BSNL IDEA TATA Tele Others

10.9%
12.2%

11.2 Oct 2009

One out of every three (57 million) urban mobile users in India now own two or more mobile connections, says India Mobile 2009, a survey by online market research company JuxtConsult, available exclusively to ET. Nevertheless, the survey helps in profiling the multiple user customer, whose average age largely falls between 25-35 years. According to the survey, Delhi and the national capital region account for over one in ten of all 57-million MCMUs at 12% of the total base followed by Mumbai (8%), Bangalore (7%) and Chennai (6%). Most are actual genuine connections. The survey, also for the first time, makes a distinction between a user and a connection, hitherto taken as one in reporting Indias teledensity and average revenue per user. According to Rajat Mukherjee, chief corporate affair officer at Idea Cellular, about 20% of all telcos customers carry more than one SIM.

The socio economic class (SEC) A & C mobile users show higher tendency to have multiple connections, says the survey. Migrant workers and youth form a large part of the target audience. This push is also having an impact on more mobile phone sales and launch of newer models. Sunil Dutt, country head, Samsung Mobile says he is seeing a rise in sales of Samsungs dual mode GSM/GSM and GSM/CDMA handsets. But its the community calling which makes a user lure away to a new connection. Our consumer usage analysis indicates that over 95% of Airtel mobile customers make a local call or STD call to another Airtel mobile number, says Atul Bindal, President, Mobile Services, Bharti Airtel. Airtel will also soon be launching a family plan where in three members of a family can buy Airtel postpaid connection but pay rental for only one. This plan is justified by the survey which shows that joint families have the highest ownership of mobile phones, with about 65% of their members owning more than one connection.

12 Internet
In 2007, 7.2% Indians and 16.1% Chinese people had internet access 19-40 years age group is major section (85%) using internet in India 85% of internet users in India are male 2009 Figures World (% Penetration): 25.6% Asia (% Penetration): 19.4% Europe (% Penetration): 52.0% North America: (% Penetration): 74%

12.1 Social Media

Internet advertising as % of Total advertising spend in Indian companies has grown from 1.3% to 2.9% Nearly 66% of internet users globally visit social networks and blogs Globally, the time spent on social networking sites is growing at 3x the rate of overall internet growth. The main advantages of social media are High brand awareness (through internet advertising, regular updates about the product/event) Company-consumer interaction Challenges of social media advertising are Management resistance Lack of knowledge Technical complexity

13 Cars
13.1 Industry
Maruti Suzuki has 57%, Hyundai: 24% and TATA motors: 12% of Indian market. 751 thousand units sold: 09 Indian market currently has more share (77%) of hatchbacks, followed by mid level(21%) & premium(3%) From Apr to Nov 2009 the overall market, including SUVs, has grown by more than 21%. From Apr to Nov 2009 the hatchback market has grown by more than 27%. Current year viewing a launch of more than 30 new cars and more than 100 variants. Capacity of the industry: 2.8 million after entry of all new cars from Ford, GM, Volkswagen etc. Demand of the industry stands at 1.9 million. Jazz, which was universally dismissed as no hope, has notched up sales of almost 6K units in India. Fortuner, the 18lakh SUV from Toyota had 9000 bookings forcing the company to stop taking further orders. Honda city 3rd generation saw a growth of 30% instead of a decline of 15% last year. Reva launching Reva NXR, a 4 seater variant. Even the small hatchback segment has 2 distinct sub-segments now: more than and lower than 4 lacs. Volkswagen has invested 580 million for a plant of small cars capacity 110,000 in pune. 40 dealers now. TCO: Total cost of ownership is the new buzzword instead of the Ticket Price. Skoda Fabia, one of the best hatchbacks in market right now had lower sales because of expensive services and parts cost. Maruti plans to expand its presence to 1700 towns from 1200. The country's largest carmaker, Maruti Suzuki (MSI), has become the first auto company in India to cross the 1 lakh retail sales in a month milestone, clocking 1,00,874 units sales in December 2009. 20% of Marutis sales are against buy backs. GM has made a strategic alliance with Reva to make Spark electric. This has made huge news in market.

13.2 Nano
In June, the company had selected over 1.55 lakh buyers for its small car wonder Nano, touted as the world's cheapest car, from a total of 2.06 lakh final applicants. It would deliver the first one lakh cars by March 2010, while the remaining bookings of 55,021 will be delivered in the next phase. Facing competition from other spanking new and larger cars (including the Mahindra Xylo, Fiat Grande Punto, Toyota Fortuner and the Mercedes-Benz E-class), the Tata Nano came out on top not only for its revolutionary rethinking of design, but also for its relevance to India. Tata plans Nano hybrid cars Performance: o Speaking of performance, the Nano is no slouch but isnt a rocketship either. o The world's best component makers have contributed to the Nano's engine with Bosch, Mahle and ZF being key suppliers and in case you did not know, these are the very blokes who have been supplying cutting edge tech and componentry to such heavy hitters as Audi, BMW, Mercedes-Benz to name a handful. o the Nano is probably the cleanest automobile ever to go on sale in India. The Tata R&D boffins told us with a degree of pride in their voice that the car had lower emissions than the best selling 100cc bike in the country and if that isn't all, the overall Nano ranks as one of the world's best cars with the lowest CO2 emission levels, pegged at 110 grams per kilometre. o up to 80km/h, the Nano is quicker than the Maruti 800 Duo o The specially developed MRF ZEC tubeless radials grip brilliantly and also deliver a finely cushioned ride without breaking away when things tend to get a bit over enthusiastic.

13.3 Newz
BMW was the first to do it with BMW Studio. Now, SkodaAuto India, a unit of the Volkswagen Group, has launched its limited series of boutique showrooms in India. The showroomsare not about selling cars, but to promote the brand. The boutique shops will have one car displayed inside, while the rest of the space will showcase a wide range of lifestyle products such as Skoda T-shirts, kit-cars, fashion and car

accessories. Skoda will shortly introduce virtual product tours and express test drives as well. The company is planning to launch 15 such showrooms in nine cities by the end of this year. For the first time in more than five decades, Mercedes-Benz lost its position as India's largest premium car seller when BMW overtook it last year. BMW sold 3,619 units against 3,247 for Mercedes-Benz in 2009. 19-40 years age group is major section (85%) using internet in India. 85% of internet users in India are male which not a very good sign is. Among working women, only 11% use internet. Audis dealers sell a minimum of 100 cars in a year that led to 1,600 cars that they sold in 2009. We have grown 59 per cent in 2009.

14 Bikes
14.1 Bajaj Auto
Market share of 32%, up from 21% in the year ago period. Bajaj Auto sold 2,20,429 two-wheelers in December 2009, registering an 85 per cent growth in sales over the same month last year, when it sold 1,19,215 units, a company release said. April-December 2009: motorcycle sales increased by 17 per cent In December, Bajaj launched the all-new Pulsar 135 LS, with an objective of making Pulsar a million-units per year brand, the release added. Bajaj's three-wheeler sales also went up by 17 per cent with the company selling 2,44,655 units during April-December 2009, compared to 2,09,699 units during the same period in 2008.

14.2 News
13th consecutive time, Hero honda has recorded more than 3 lakh despatches in a single month. Bajaj Auto sold 2,32,939 2-wheelers in January 2010, registering an 112 per cent growth in sales over the same month last year, when it sold 1,09,666 units, a company release said. 2-wheeler producer Honda Motorcycle & Scooter India today reported 24.84 per cent growth in its total sales at 1,18,571 units in January. Motorcycle sales rose 19.08 per cent to 47,815 units in January over 40,153 units in the corresponding period a year ago, HMSI said in a statement.

15 Water Purifier
15.1 Market
Nearly 4 million people in India are affected by water-borne diseases every year. As many as 400,000 children die from diarrhea every year. According to a 2007 United Nations report, half of the worlds hospital beds are occupied by patients who suffer from water-borne diseases. In India, such diseases cause more than 1.5 times the deaths caused by AIDS and double the deaths caused by road accidents. At present, the total water purifier market is about Rs 1,500 crore. Water purifiers can be found in 10 per cent of urban homes, Rural penetration is less than 1 per cent.

Crowded market - Hindustan Unilever may now drop prices. - Godrej is all set to join the bandwagon. Last year, the company came out with an ultraviolet water purifier for the urban market that cost Rs 6,500, and it is all set to roll out a product in rural areas. - Philips joined the race two years ago with its Intelligent Water Purifier. The company calls it the first autonomous water purifier in the market with battery backup. Critical challenges There were four clear segments: - The first did not face problems with water-borne diseases; - the second had instances of diseases but felt it was not because of water; - the third group used some method of purification and was satisfied with it; - and the fourth used some form of purified water but was not satisfied with it. Naturally, the third and fourth groups were more enthusiastic to Swach and felt that the costs incurred in LPG, wood and coal were in fact more than the purifier. Many of them even perceived it to be a gifting item, equating it to a cycle or an electric fan. Distribution is equally important. On paper, the water purifying business sounds lucrative in a country where 80 per cent of the nations water supply comes from groundwater. But owing to the dispersed nature of the market, price and general lack of awareness, penetration has been low. Here, Tata will bank on other Tata firms, including Rallis, the companys farm retail business, Tata Salt, which caters to 53 million households, as well as some non-profit outfits. All this, it hopes, will help it sell one million units a year and three million units a year in the next five years. Current market leader Eureka Forbes has established 100 community centres with the help of NGOs across villages that will offer consumers water from its Aquasure purifier. These centres charge people as little as 10 to 15 paisa per litre. A large number of people who need safe drinking water cannot afford to pay the upfront capital of Rs 1,000, says Eureka Forbes CEO Marzin R Shroff. Its emphasis is on distribution and awareness it is present in 14,000 outlets in 1,200 towns.

15.2 Swach by TATA

Tata aims to create disruption in the water purifier market with the low-priced Swach. So far, water purifiers have been used in middle and upper class homes, though water-borne diseases affect all income classes. The Tata Group has launched what could be the worlds cheapest water purifier at price points of Rs 749 and Rs 999. Between 2000 and 2003, the company launched a water filter called Sujal and distributed it among several NGOs (non-government organisations). When the tsunami ravaged parts of coastal south India in 2004, these water filters were distributed in the affected regions.

Soon thereafter, Tata Chemicals, Tata Consultancy Services and Titan Industries got together to take things to the next level. As a result, the purifier does not require electricity; instead it runs on a replaceable cartridge with a shelf life of 3,000 litres. This would last a family of five for approximately 200 days. Moreover, experts say that the concept of refills or replaceable parts is the key to Tatas strategy. While the price of Swach may be low, there is an assured flow of income from the sale of cartridges. At the same time, it significantly eliminates the need for after-sales service, unlike its peers in the business. On the pricing front, Swach costs far less than rivals Hindustan Unilevers Pureit and Eureka Forbes Aquasure, which cost Rs 2,000 and Rs 1,950, respectively. Interestingly, Tatas water purifier is geography-specific. The first two variants are targeted at regions where arsenic and fluoride are high in content. In due course, it will roll out variants that will fight other impurities as well.

16 Banking
16.1 PSU banks
Public sector banks have performed better than their private sector counterparts in customer service. In 2008-09, of the 69,117 complaints received at 15 banking ombudsman offices throughout the country, 32 per cent or 21,982 complaints were against private banks, which is higher than their market share of 18 per cent. Private banks were followed by largest lender State Bank of India (SBI)and its associates. The SBI group, which comprises 24 per cent of the advances and deposits of banks in India, received 18,167 complaints, which is 26 per cent of the total complaints received by the banking ombudsman. In per cent SBI Other PSU banks Private banks Foreign banks Rural/Coop banks Among the individual banks: - SBI tops - ICICI Bank - HDFC Bank - HSBC (2,838) - Citibank (2,563) If the total share of government-owned banks is considered, their share in total complaints is 48 per cent, as against their market share of 74 per cent. In contrast, private and foreign banks combined have 49 per cent share in complaints, with 23 per cent market share. The remaining 3 per cent of complaints are against regional, rural and cooperative banks, which have 3 per cent market share. For an effective complaint redressal mechanism and to strengthen customer services in banks, the Reserve Bank of India in July issued a circular for a four-tier institutional arrangement consisting of - A committee of the board - Standing committee of executives - A nodal department at the head office and controlling offices, and - A committee at the branch level, for customer service. 26 22 32 17 3 Market share 24 50 18 5 3

17 Chocolate
17.1 Market
Indias chocolate market is estimated at around Rs 2,000 crore. Market growth: 20% Per capita consumption of chocolate in India is very low at 54 gm compared with the developed markets such as the UK, which is at 10.5 kg, and the US at 5 kg.

17.2 Cadbury
Cadbury: Topline growth: 23%, bottom line growth: 28% Cadbury Dairy Milk lords it over almost 1/3rd of the Indias market The Rs 1,600-crore company is the market leader with a 70 per cent share of the Rs 2,000-crore chocolate market and a little over 32 per cent share in the overall confectionery market. Besides, its milk food drink brand Bournvita has a 15.6 per cent share of the milk food drinks market. For the Cadbury Dairy Milk brand, the Rs 2 pack could be almost 15 per cent of the volumes of the brand now. And, its been in the market only for the last 15 months Krafts $19.7-billion acquisition of Cadbury Plc pits the worlds second-largest food company against its arch rival Nestle, the worlds largest player in the organised food space Kraft: three products, o powdered flavoured drink Tang o chocolate brand Toblerone o biscuit brand Oreo Competitors in food market o Hindustan Unilever o Nestle o Groupe Danone, o GSK Consumer Healthcare: Boost, Horlicks, Maltova and Viva o Heinz

18 Beverages
18.1 Soft + Energy Drinks
18.1.1 Market - Global beverages major PepsiCo said on Tuesday that India is one of its top three markets in the world - 7000 Crore soft drinks market - The juice and juice drinks market is pegged yearly at Rs 1,500 crore or 500 million cases by volume. - The country currently shows a 70:30 ratio of aerated to non-aerated drinks, but this could change in future - When in 2008 food and grocery in complete retail grew by just 6.5%, the same in organized retail grey by 90%. The strategy ahead is clearly visible. - lemon is the most popular flavour with a share of 49 per cent of the total juice-based drink market. 18.1.2 Pepsi - Growing at over 30 per cent in terms of volume and 40 per cent in revenue - Foods contribute 33-35 per cent of the business. Beverages the rest. Non-CSDs contribute as much as a third of the revenue from the beverages. - My Pepsi, My Way: Provoking the youth to take on any situation and find their way through the challenge - Global beverages major PepsiCo said on Tuesday that India is one of its top three markets in the world - Pepsicos board meeting, which will be held in Mumbai from November 11-13, will be the second time PepsiCo has held its global board meeting outside the US after the first one in Mexico five years ago. - This year, PepsiCo is investing the highest amount in India in the last 19 years, and because of the huge growth and the significant momentum continuing, they decided to invest an additional $110 million, taking the total annual investment in 2009 to $220 million - The company has launched a promotional campaign featuring actor Asin. Galatta squads will visit households and if they find a Mirinda (any pack size) at home, they will reward the household with g old worth Rs 5000. - A study by PepsiCo had found eight out of 10 Indians drink nimbu paani three times a week. 18.1.3 Coca-Cola - Coca-Cola India registered a 33% unit case volume growth compared with 6% growth in the prior year. - Cokes Nimbu Fresh, launched last week under the Minute Maid brand, will be initially available in 35,000 outlets in Tamil Nadu and will be rolled out nationally later this year. The plan is to reach 90,000 outlets this year itself. - Coca-Cola's energy drink Burn' was launched last week and a car has been designed to capture the essence of the brand. The styling of the car confirms to the brand imagery and association that is targeted at socially active and adventurous young adults. Target: The young generation who have an active night life & need energy to go on throughout the night - Among the worlds top 10 brands, Coca-Cola is by far on top of the league with a brand value of $68.73 bn. - Entered India in 1991

18.2 Health Drinks

18.2.1 Market - The juice industry, growing at about 15-20 per cent per year - The juice and juice drinks market is pegged yearly at Rs 1,500 crore or 500 million cases by volume. - lemon is the most popular flavour with a share of 49 per cent of the total juice-based drink market. 18.2.2 Britannia - Actimind a health drink from Britannia. Seven active nutrients which improve mental sharpness and help children stay alert for long periods. Ms Bali says while the new drink will be pitched against malted beverages, she expects the brand to create a new category as it is different from the existing flavoured

milk drinks in the market. Britannia, whose milk business is around Rs 200 crore, expects dairy to be a growth driver for the company. 18.2.3 Dabur Real - Real Activ has a 55 per cent market share in the unsweetened juice market; a strong growth of over 20%

18.3 Water
- The packaged water industry is worth Rs 2,200 crore and Kinley enjoys a 10.3 per cent market share.

18.4 Tea
1) Tea is a widely consumed product with 95 per cent penetration 2) HUL has a) Taj Mahal Tea: Premium segment b) Red Label: Popular market c) Taaza: Mid-market price points d) Entering the economy segment wasnt going to be an easy task(Launched Brooke Bond Sehatmand in rural areas). i) Loose tea makes up 65 per cent of the market, packaged tea accounts for only a third. ii) This is a market dominated by regional brands e) Drinking three cups of Sehatmand, the company promises, will ensure 50 per cent Reference Daily Intake (RDA) of important B vitamins. This is how HUL hopes to differentiate itself from rival Tata Tea which has a brand called Agni in the popular economy segment. f) For each region the company has come out with a unique taste, colour and aroma. For instance, South India has a strong preference for strong and dark tea, while North India is inclined towards taste and aroma rather than colour. 3) In October 2005, Apeejay Surrendra Group acquired Typhoo, the British tea brand, for $127 million from Premier Foods. In the deal, Apeejay bought Premier's entire tea business which includes brands like London Fruit & Herb, Lift and QT apart from Typhoo. a) Typhoo will fight for shelf space with Twinnings, and will be priced above Tetley (from Tata Tea) and the brands of Hindustan Unilever (Brooke Bond, Lipton, Taaza and Taj Mahal). In other words, Typhoo will stick to tea bags and sell at a premium. b) The value-added segment which includes origin-based tea, flavoured tea, green tea and tea bags is about 20 million kg or Rs 600 crore.

19 Snack Food
- Rs 10,000 crore Indian snack food industry - 1500 M ton Indian biscuit industry

19.1 Crackers
19.1.1 Aliva - "Thodi Sharafat, Thodi Shararat " - A major(food) brand launch from Pepsico since Kurkure. - Aliva comes in the category of Crackers. Cracker is a new category in the Indian market. The product is a combination of biscuit and Namkeen. Aliva, if successful, will create a subsegment in the 1500 M ton Indian biscuit industry. According to news reports, the brand is trying to create a new category for itself just like what Kurkure did. Aliva comes in 4 flavors and is priced at Rs 12 for 60 gms ( introductory offer). - Competition: - No immediate brand competition because of newer category. It faces competition from other categories of snacks. o Non-glucose biscuit brands like Britannia 50-50 and Parle Monaco and Sunfeast Snacky. o Chips like Lays and Bingo also gives this brand a competition - Aliva has roped in the actress Chitrangda Singh as the brand ambassador. Aliva is currently running its launch TVC across various channels. Just like Lays and Bingo, Aliva targets predominately youth and adults.

20 Stationery/Paper market
20.1 Size
1) Size of the Indian stationery market is Rs 10,000-crore. Of that, school notebooks alone account for Rs 4,000 crore, but only 25 per cent of this is catered to by the organised, branded players 2) Comprises notebooks, copier and printing paper, writing instruments and scholastic products such as geometry boxes, sharpeners and erasers.

20.2 ITC
1) ITC is targeting Rs 1,000 crore revenues from these products in 3 to 5 years, from Rs 280 crore now. Just five years back, that figure was just Rs 20 crore. 2) ITC currently has close to 12 per cent market share in the writing material segment, which is pegged at Rs 4,000 crore. The company will also double its distribution network in two years. Currently it has 900 distributors who make the products available in over 70,000 outlets in India.

21 Insurance
21.1 Life Insurance
Market estimated at Rs 55,355 crore At last count, there were 22 companies in the fray 21.1.1 HNI Focus The high networth individuals have caught the attention of insurance companies and they have started targeting this segment more aggressively. Birla Sun Life Insurance Company has launched a term plan that caters exclusively to HNIs. Called High Networth Term Plan, the minimum cover one can avail is Rs 50 lakh. ICICI Prudential Life Insurance, too, has a similar product with a minimum cover of Rs 25 lakh. By convention, HNIs are classified by their investible surplus. Insurance companies classify them, based on the premium paid. A customer is an HNI if he/she takes a term cover of Rs 25 lakh or more. Pricing: They provide cheaper cover compared to other existing products. A healthy 40-year old male (nonsmoker) seeking Rs 1 crore for 15-year term can get the policy for Rs 24,600 a year from Birla Sun Life Insurance under High Networth Term Plan. Segmentation and medical: Some insurance firms have further segmented the customers based on gender and tobacco usage. The policy is cheaper for a woman. Non-smokers, too, enjoy the benefit of lower premiums. At the same time, the medical tests are extremely stringent. The companies test for around 13 illnesses through blood test. Scope of coverage: Income is the primary criterion. The customer can take sum assured of five-seven times his salary, only. For Rs 50 lakh cover, the income should be in the range of Rs 7.510 lakh. Services: The advantage of higher sum assured is that HNIs can get everything at their doorstep even the pathologist that would conduct medical tests. Most companies conduct medical tests at the customers house unless a fitness test is required. Other services include a relationship manager, priority issuance, faster processing and free premium collection. 276 Punjabi Colony, Satyanagar, Bhubaneswar, 751007

22 Healthcare and Pharma

22.1 Healthcare
The government is looking at corporate entities to venture into medical education. PropCo/OpCo arrangement is a new innovative model in healthcare, where one party owns the property and leases it to another party for operation. The advantage in this system is that the entire business generates profit from the property leased. There has been an exponential rise in the number of people purchasing healthcare insurance. The main reasons for this are the increasing incidence of lifestyle diseases and the rising cost of healthcare. The trend has led to the emergence of third-party administrators which are an interface between insurance companies and consumers.

22.2 Pharma
The Indian now $20 billion industry. India ranks 3rd by volume and 14th by value. India accounts for around 10% of the world's production by volume and 1.5 per cent by value. Growing at a CAGR of 10% as compared to world CAGR of 6% India has 5.5 million chemists and druggists, and the organized retail market accounts for just 2% of the industry but is posting a yearonyear growth of 3040%. According to a report by IMS Health, the Indian generic manufacturers will grow to more than US$70 billion as drugs worth approximately US$20 billion in annual sales faced patent expiry in 2008. The Indian Government's decision to allow 100% FDI into the drugs and pharmaceutical industry is expected to aid the growth of contract research in the country. MNCs in India are facing the problem of having a very high Drugs Price Control Order (DPCO) coverage

23 Copenhagen Summit
23.1 Issues
- The developed world: US and UK have grown by burning fossil fuels. The situation demands a cut of 2540% of the 1990 levels to keep warming below the dangerous 2 Celsius mark. - The developing world: Per person emissions from the developed world are very low as compared to US and UK. But their economy is growing and thus emissions also. They want lower cut of CO2. - Paying bill for climate: Countries like Sudan, Bangladesh have done nothing but they are bearing the brunt of nature. The developed economies must pay them every year. But recession is on. Also, the payments might have to be updated every year. - Who runs the system: Some rules have to be there in order to run the system. Developed countries want IMF where they have more power while developing wants UN where they are better represented. - Trees: About 17% of emitted carbon comes from razing forests. Not cutting trees is simple but paying people to not cut trees becomes difficult. Who owns trees? - Technology: Will the developed world transfer green e=technology to developing ones??? Does such technology exists??

23.2 Data
- Total Carbon emissions: China is ahead of US in 2007, India at 5th place. China, US, EU, Russia, India. - Per capita carbon emissions: Australia, US, Canada, Russia, japan. India 15th biggest

23.3 What came out?

- The Copenhagen accord makes reference to the need to keep temperature rises to no more than 2C and says rich countries will commit to cutting greenhouse gases and developing nations will take steps to limit the growth of their emissions but sets no targets. - There are promises of short term finance to the tune of $10bn a year over three years for poor countries to help them fight climate change, and a long term funding package worth $100bn a year by 2020 - There are also references to the importance of reducing deforestation and efforts to give poor countries access to technology that helps them go green. - The concession which developing countries made, which many developed countries are touting as a deal clincher, was that that they would domestically measure their self-funded efforts to reduce carbon emission and their results but accept international consultations and analysis. What these consultations will be is yet to be defined. 23.3.1 Missing - There is no mention of any long term global emissions cut targets although the 50% reduction by 2050, which was dropped at the last minute, is what would be needed to meet the 2C temperature cap still referred to in the deal. There is no target, either, for the long term cuts developed countries must make - the absence of any timescale for when or even if the deal could be turned into a legally-binding treaty - a series of other agreements which would have formed part of the deal, such as one on how to tackle deforestation, have been shelved until the next conference.

24 Biggest news of 2009

Indias largest democratic elections Jai Ho Indian team becoming no 1 Mumbai 26/11 attacks Prabhakaran death Tiger woods sex scandal Sachin completing 20 years in cricket Death of Michael Jackson A nobel for Obama TATA Nano arrives Copenhagen lost Venkatraman Ramakrishnan was awarded the Nobel Prize in Chemistry Chandrayan traces water on moon

Compiled by Vivek Vijayan.P | Career Devlopment Cell | Team CRISP 2010