Analysis og buss opp in diff sec of eco

8/7/2019 Analysis og buss opp in diff sec of eco

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Analysis Of Business

Opportunities in DifferentSectors of Economy at National

& Global Level

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Earlier Examples Biocon Kiran Mazumdar Shaw

Social Networking Websites (Facebook)

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Sectors Covered Power Sector

Energy Sector

Telecom Sector

Tourism Sector

Education Sector

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OpportunitiesOpportunities in Indian Powerin Indian Power

SectorSector


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During 2007-12, average Economic growth rate projected at 9%

pa.

Power sector to also grow by 9% to sustain the economic growth.

Twelfth Five-Year Plan (2012-17) is even more ambitious, calling

for the addition of over 100,000 MW of power.

Installed capacity to reach 800 GW by 2031-32 from the present

level of 128 GW. Present captive generation 41,000 MW.

Enabling environment created by enacting Electricity Act and

various policies framed thereunder.

Strengths of Indian Power Sector


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New Electricity Act 2003 - Liberal and competitive

framework. Allows private sector participation.

Entry Barriers

Removed in generation.

Reduced in transmission, distribution and supply.

De-linking of NTPC (National Thermal Power

Corporation) and Bharat Heavy Electricals Limited

(BHEL), where supply of power generating equipments

is concerned. Huge opportunity for private players.

New Liberal Competitive Framework

Contd..


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100% FDI permitted in all segments. Thus, there is a great

opportunity lying ahead for foreign players.

Duty free import of equipment permitted for Mega Power

Projects.

Private sector participation in power generation is

expected to increase from 10% during the Eleventh Plan to

34% during the Twelfth plan.

New Liberal Competitive Framework


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Total Village Electrification in 5 years.

By year 2012 :

Per capita availability 1000 units.

Installed capacity over 200,000 MW.

Minimum lifeline consumption of one unit per

household per day.

Quality and reliable power supply.

National Electricity Policy


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The Energy Strategy

Full development of hydro potential. Hydro power

irrespective of size, renewable source of energy.

Domestic coal to remain primary source.

Import of coal on moderate scale for coastal locations.

Import of gas LNG terminals. Gas pipelines from

Western and Central Asia.

Contd..


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Alternate Sources of Energy Emphasis on Biomass.

Wind power potential success story for rapid

development. More than 3800 MW added in the last four

years.

At over 5500 MW , Wind capacity 4th largest in the

world.

Development of mini and micro hydroelectric projects.

Solar power needs intensive R&D for cost reduction .

Extensive development of solar possible.

Contd..


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The Energy Strategy

Nuclear power presently 3,900 MW- Share of Nuclear

power to be enhanced.


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Current Demand/Supply Position

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Energy Sector - TanzaniaEnergy demand in Tanzania has grown rapidly dueto population growth and the increase in economic

activities during the last 15

yrs.The estimated total energy annual consumption isabout 22 million tonnes of oil equivalent (TOE).Energy consumption in rural areas accounts forabout 85% of total national energy consumption.


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Consumption PatternBiomass-based fuels account for more than 90%

Imported petroleum and electricity, account for about

8% and 1.2%, respectively

Natural gas is now being used in power generation

industry

Coal, solar and wind account for less than 1% of energy

used


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0

10

20

30

40

50

60

7080

90

Biomass

Petr

&NG

Electricit

y

Coal &

E

Imports of petroleum

products(8% of energy supply)

cost the country about 30% of its

foreign currency earnings


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RESOU

RCE - CAPACITYHydro power potential estimated at 4.7 GW, 561 MW developed

Coal reserves are estimated at about 1,200 million tonnes, of

which 304 million tonnes are proven.

Natural gas is estimated at 45 billion cubic metres of proven

reserves. Current use 292 MW (about 600 MW expected in thenext 30 yrs)

Biomass (Fuel wood and Charcoal) Deforestation - Reduce

precipitation, hence inflow dams reduced output from

hydropower plants

Studies on geothermal, uranium, wind, biofuels, and ocean

based energy are going on (Task Force in place. Few investors in

pilot stage).


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POLICY AND INSTITUTIONAL

FRAMEWORK

(SUPPORTIVE INSTRUMENTS AVAILABLE)

National Energy Policy was reviewed in 2003. It is in place into

take consideration the need to:

Have affordable and reliable energy supplies in the whole

country;

Reform the market for energy services and establish anadequate institutional framework;

Enhance the development and utilization of indigenous and

renewable energy sources and technologies;

Adequately take into account environmental considerations forall energy activities;Increase energy efficiency and conservation in all sectors; and


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Increase energy education along with building

capacity in energy planning, implementation andmonitoring.The New Electricity Act assented by the Presidentin June, 2008 played a pivotal role to attractsubstantial private sector participation in the

development of the power sector.Energy and Water Utilities Regulatory Authority(EWURA) became operational in 2006 with the rolefor ensuring regulatory oversight to promote private

sector investment in the energy sector.Rural Energy Agency (REA) became operational in2007 for furtherance of rural electrificationprograms via the Rural Energy Fund (REF).


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CHALLENGES IN THE

ENERGY SECTORDependence on traditional biomass.

Dependency on hydropower in electricity generation.

Reliance on imported petroleum products.

Poverty poor purchasing power services

Inefficient energy consumption

To have affordable access to electricity services for the rural

population;


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CHALLENGES OF ENERGY

SECTOR(ENERGY CRISIS CAUSED)

Drought for three consecutive years since 2003 to date has

reduced hydropower contribution to overall electricity

generation from 65 to 24%

Escalating local and world prices.

High deforestation rate has caused wood fuel scarcity.


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OPPOR

TUNITIESDevelop gas and coal projects for electricity

generation.

Maintain the existing hydropower plants.Bulk procurement & marketing of petroleum

products.

Management and operation of strategic oilreserves.Reduce dependence on hydropower bydiversifying sources e.g. natural gas, coal, biomass

co-generation, wind, small hydropower and solar


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Reduce reliance on imported petroleum products by

promoting biofuels (bioethernol and biodiesel).

Reduce dependence on traditional biomass by efficientconversion improved charcoal production, improving

cook stove, etc.

Increase access to modern energy services (esp.

electricity) by speeded promotion of rural energy throughthe rural Energy Agency.

Development of already discovered natural gas reserves

and the support infrastructure.

Manufacture of tools materials and other items requiredin the sectors


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SWOT ANALYSIS OF INDIAN TELECOM

INDUSTRY

Indian Telecom market is one of the fastest growing markets in the

world.

Indian telecom network has about 562.21 million connections.

With 525.15 million wireless connections, Indian telecom has

become the second largest wireless networkin the world after

China.

About 15 million connections are being added every month.

Wireless telephones are increasing at faster rate. The share of private sector in total telephone is about82.33%.

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Facts


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Strengths Huge Customer potential

Teledensity still being 48% and rural tele-density 21%. The broadband subscribers grew from 0.18 million in 2005 to6.2 million as

on 30 April 2009 and about 7.98 million, at the end of the December 2009.

Allowed FDI limit ranging from 74% to 100%

The total FDI equity inflows in telecom sector have been US$ 2223 million

during April-November 2009-10

Liberalization efforts by Govt.

The share of private sector in total telephone connections is now 82.33% as

per the latest statistics available for December 2009 as against a meager5%

in 1999.

Lower capital expenditure

The Indian telecom market is a high density area, which means morepopulation per tower. This means lower capital expenditure cost.

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Weakness

Poor Telecommunication Infrastructure Result : Large number of call drops.

Late adopters of New Technology

India is among the last countries in the world to get access to 3G

technology. Some estimates suggest that nearly 132 countries across the

world already have 3G technology and mobile services in one form orthe other.

Most competitive market

10 to 14 companies offer mobile services in most parts of India,

globally, the average is 4.

A market strongly regulated by Government. Difficult to enter because of requirement of huge financial resources.

E.g Auction of 3G license had reached Rs 15814.15 crores.

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Opportunities

3G Telecom services and 4G services More Quality Service

Mobile Number Portability will force the Service provider to improve their

quality to avoid losing subscribers

Value added Services (VAS)

The mobile value added services include, text or SMS, menu based services,downloading of music or ringtones, mobile TV, videos, streaming,

sophisticated m-commerce applications etc.

Mobile banking, Mobile Ticketing etc

Boost to Telecom Manufacturing Companies

Production of telecom equipments in value terms has increased from Rs. 412700million (2007-08) to Rs.488000 million during 2008-09 and expected to

increase to Rs. 575840 million during 2009-10.

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Horizontal Integration

Entry Into other consumer segments leveraging the present channels E.g. DTH service like Reliance BIG TV, Tata SKY, Airtel digital TV by

telecom majors like Reliance, Tata and Airtel Respectively.

Other examples : Airtel website builder

Providing fibre Connectivity to 2,50,000 village panchayat by 2012.

More scope in content related services, since, the consumer is influenced by

local culture.

Local festivals like Baisakhi, Chhath Puja, religious festivals like Diwali,

Chrismas etc., National festivals like Independence Day etc.

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Threats

Telecommunication Policies TRAI intentions of rolling out 4G or the fourth-generation technology,

known as the ultra-broadband in 2-3 years raising fears rendering 3G

services somewhat obsolete.

Declining ARPU (average Revenue per user)

E.g. price wars like per-second billing which is deflating revenues andmaking sure the survival of the fittest

Partiality on the part of the Govt.

E.g.Allowing 3G service in a PSU (MTNL,BSNL) before auctioning to

Private Sector .

Content Piracy

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TOURISM SECTORIN

INDIA


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TOURISM SECTORIN INDIA

Tourism sector is one of the leading serviceindustry generating significant amount of

employment and revenues

Fresh investments in hotels, resorts, spas,restaurants, airports, malls etc

Commencement of flight operation by several

foreign and domestic airlines in new routes.

Tourism sector has been one of the major

sources of foreign exchange earnings


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Cont..

The sector has witnessed impressive growth postthe economic liberalization policy

Foreign Tourist Arrivals (FTAs) grew from 2.38million in 2002 to 5.11 million in 2009

Government has introduced niche tourismproducts like medical tourism, wellness tourism,adventure tourism, etc

World Travel and Tourism Council (WTTC)has named India as one of the most fastestgrowing tourism industries for the next 10 to15 years.


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STRENGTHS:

Indias geographical location, a culminationof deserts, forests, mountains and beaches

Diversity of culture

Low Manpower Costs

Wide variety of Hotels is present that can

fulfill the demand of the tourists

Rich Culture Heritage and Colorful Festivals


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WEAKNESS:

Lack of Sufficient Infrastructure

Narrow-minded attitude among certain

sections of the people

No proper Marketing of Indias tourism

abroad

In many places the image of India is one ofpoverty and diseases

Language and Cultural Barriers


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OPPORTUNITIES:

Proactive role from Government of India

Sub-R

egional Plan by AsianDevelopment Bank

Availability of high quality human

resource

Entry of Multinational Companies

Growth of domestic tourism


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THREATS:

Economic conditions and political turmoil

in other countries

Strong competition within states of India

and abroad

Terrorism is a major setback

Disorganized tourism development

Aggressive strategies adopted by other

countries


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Education in India Playschool and pre school education

Elementary education

Secondary education

Higher education

Vocational education


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CURRENT TRENDS


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CONT..

Rising awareness about the significance of earlyeducation for child development and maintaininghigh enrollment and retention rate in primaryeducation.

Majority of preschool and play school market isconcentrated in urban areas.

Organised preschool market is dominated byprivate players, a few of them are kidzee,treehouse etc.


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CONT..

Rapid improvement in enrollment rates, at least inprimary schools.

social disparity which was very high till 90s has

been reduced significantly.

Drop out rates: 48% in elementary education mainly

because of socio economic reason.


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Cont..

24%

school in India do not have proper schoolingbuilding.

8% schools lack drinking water facilities.

Quality of education is very low:

according to Parathams ASERsurvey, 60% of

children aged 7 to 12 cannot read a simple pera.

[paratham is reputed NGO working toward

education in India.]


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Cont.. Enrollment in government schools has

decreased in last decades. There is a trend in

rural and urban areas to opt for privateeducation.

Sharp increase is expected in demand for

secondary education in coming decade.


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Current and projected demand for

secondary education (%)


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Market size and players:

Share of private institution in Indian school

education is :

Primary:7%

, upper primary: 21%, s

econdary:32%.

Annual private market size:for the segment std. I to IX is estimated at

Rupees 22000-26000 crores.


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OPPORTUNITIES AND ROLE FOR

PRIVATE PLAYERS


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Cont..

Teachers training institutes:India has shortage of around 10-12 lakhsteachers in all form of education, which meansthat demand for teachers training and retaining

is going to increase in coming years.

Setting up play schools:

With increasing awareness and no regulatorymechanism in place, play school is one of mostlucrative business.


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Cont.. Setting up universities and private colleges:

As per National Knowledge Commission Reportto raise the GER in higher education to 15% by2020, india will need 1500 universities and clusterof colleges affiliated to them.

Private open universities and distanceeducation:

Popular among young workers/ professionals whowant to pursue further education. The trend isgrowing in india.


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Case study: NIIT ltd. NIIT is an information technology global

education and training company

headquartered in Gurgaon, India

NIIT was established in the year 1981 by

young entrepreneurRajendra S. Pawar andVijay K. Thadani after they graduated from

IIT.


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Important years in the success story

of NIIT: Year 1981-89: expanded the services from IT trainer to

school and corporate training in the whole india.

Year -1991: First overseas office setup in US.

Year- 1993: International Revenue touched Rs 50 millionand also It became listed company and launched asuccessful IPO.

Year -1999: Achieved the status of Microsoft's best trainingpartner in Asia.

Year-2000: Education centers crossed 2000 mark nationally

and globally.


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Analysis og buss opp in diff sec of eco