August 2014 презентация

Started in 2002 with a focus on helping technology organizations globalize their operations
Currently Headquartered out of Bangalore with operations in Silicon Valley, Houston, Delhi, Beijing and Singapore

Evolution

Service offering

Customer Type

Focus Areas

Product Engineering & R&D services

Outsourced Software product development

Engineering Analytics

Start-Ups

Hi-Tech
Companies

Engineering & R&D Companies

Service
Providers

Private Equity &
VC firms

Globalization Advisory

Market Expansion Advisory

Globalization Accelerator Platform

Service Provider Advisory

Innovation

Expected increase in India’s share of global middle class consumption by 2020

Largest Consumer Market

13th

~3X

Consumption as % of GDP

60%

Share of services in GDP

57%

Growth of Services Sector

12%

Largest Labor Force

2nd

Investment as % of GDP

35%

$ 1 Tn

Infrastructure investment
during the 12th Five-Year Plan

Consumption Driven Economy

Services Led Economy

Big Investments in Infrastructure

Rank in FDI Confidence Index Survey

2nd

India’s Trade to GDP ratio growth in last decade

2x

Government’s perennial focus on improving the infrastructure has driven growth of Indian Economy

High level of consumer spending ensures continued demand from the domestic market

 India’s open-economy policy, initiated in 1991, has transformed India to a flourishing economy

A large workforce and Services led economy have augured well for India’s growth

Source: World Bank Data | AT Kearney FDI Survey 2012

Open Indian Economy

Real GDP Growth and Consumer Price Inflation (YoY Change)

Foreign Direct Investment (USD Billion)

INR Depreciation vs. USD

1Continuous rise in food prices and supply chain bottlenecks has led to Inflation

Source: World Bank Data

Global economic conditions and internal issues such as policy indecision, corruption and subsidies have hampered the “India Growth” story…

Loss of confidence among the foreign investors and MNCs resulted in decrease in FDIs and foreign exchange rates

Governance Related Factors

Global Economic downturn affected India’s exports and services business

Global Slowdown

No strong figurehead emerged from the coalition government

Leadership Crisis

Slowdown of economic reforms made India an unsuitable destination to run business

Policy Paralysis

Improper action plan and poor allocation of funds resulted in delayed projects that led to overruns of 15 BN

Implementation Bottlenecks

Government accused of multiple scams such as $5bn Telecom Spectrum scam, $29bn Coal mine scam, etc.

Corruption

Source: Primary Interviews, Zinnov Analysis

SINGLE PARTY

COALITION

Non – coalition (single party) government at the center will allow for swifter policy making and reduce stakeholder confrontation leading to a stable government

Electorate’s mandate for a Stable Government

Empowered Government

Source: Election Commission of India website, Zinnov Analysis

Source: RBI data, Ministry of Commerce and Industry

1/5th of India’s total FDIs in the past 3 years

Unemployment Rate against India ‘s 3.8 %

Among all states in Economic Freedom Index*

Manufacturing Jobs created in India

$17.5 billion

1%

26%

1st

Among states in number of SEZs

4th

Smart Grid in India

1st

The unprecedented mandate and the positive track record has instilled hope of an economic turnaround among the citizens and the investors

5

India’s

Growth Levers
As identified by Modi

Source: BJP Manifesto, Narendra Modi Interviews

1

2

3

4

5

Source: Primary Interviews, Zinnov research and analysis; All figures are in USD and estimates for the year 2014-15

Total Opportunity Size for Technology Companies

Year
2014-15

Government Investments in technology (Year 2014-15)

Opportunity by Technology Areas

$26 Billion

Source: BJP Manifesto and UIDAI portal

Digital India

Digitization of Agriculture and PDS data

Enabling e-Governance &
m-Governance

National Rural Internet & Technology Mission (Telemedicine & m-Healthcare

Use of IT for agriculture for real time information

Digitization of all government files

Increasing the penetration and usage of broadband across the country

Government’s Action Plan

Government’s Action Plan

Opportunity for Technology MNCs

1

India as the Innovation Hub

1) Skill Enablement

Increasing IITs and IIMs
Institute of Big Data Research
Revising curriculum as per industry needs for higher studies

2) Innovation accelerators

Ministry of Entrepreneurship
Establish an Intellectual Property Rights Regime
Tax incentives for investments in R&D

3) Innovation infrastructure

Autonomous technology transfer organizations
Facilitating multi country and inter-disciplinary research
Est. world class research centers”

Government Accentuators of Innovation

3500+ Startups
400 VCs & 2500 Angel Investors
USD 1.6 billion invested in 2013

Startups

3500+ MNCs
850+ R&D GICS
85+ India Service Providers

MNCs

400+ Universities
770K Engg Grads
USD 1.5 billion invested in 2013

Universities

300+ National Laboratories
300 R&Ds in public sector

Government

Matured Ecosystem

Innovation-Fuelled India

2

Source: Primary Interviews; Ingersoll Rand website

India as the Innovation Hub

MNCs will be able to harness diverse benefits of an innovative India

MNCs have been leveraging the Indian innovation ecosystem to develop products for the Indian customers

Access to high quality talent
Innovative ecosystem will produce high quality research outputs and researchers

Innovate for India from India
Proximity to customers will accelerate and improve India centric product development

Emergence of Industry consortiums for joint R&D
Innovative ecosystem will allow joint R&D efforts across industries for accentuated product development

Cooperation with Academia for Research
Industry, Academia and Government collaboration for high end research

Reverse Globalization
Successful Indian products can be taken to similar markets globally

Access to a rich start up ecosystem
Possibility of acquisition of disruptive innovations from start-ups

Ingersoll Rand’s India R&D center (IRETC) developed a new refrigerated transportation solution to address the problem of large scale wastage of perishable farm produce

$316
Million

Cold Storage Transportation
Market

2

Source: Primary Interviews ,BJP Manifesto, Zinnov Research & Analysis

National Optical-Fibre Network

Diamond Quadrilateral project

100 smart cities

National solar mission

National Gas Grids

High-speed digital highways

Restarting stalled Infra projects

Government Investment in Technology

$ 11 Bn investment

Technology MNCs have, so far, played a crucial role in the establishment of next gen infrastructure

Source: World Bank – Doing Business report series, BJP manifesto

Expected introduction of Goods & Services Tax (GST) and Direct Tax Code (DTC)
BJP has committed to bring on board all states for implementing the GST
GST would simplify & often lower taxes, broaden collection and spark spending
DTC reforms will remove complexities and bring stability to the economy by increasing investments, creating jobs and boosting exports

Easier tax policies for MNCs
Review of the retrospective tax laws introduced in 2012-13
Higher incentivisation of R&D investments, geared towards indigenization of technology and innovation

Expected increase in foreign direct investment limits
FDI will be allowed in sectors wherever needed for job and asset creation, infrastructure and acquisition of niche technology and specialized expertise
Increase of FDI limit in multiple sectors including railways, construction; with 49% limit in Defense

Ease of Doing Business

World Bank’s Ease of Doing Business Survey

Ease of Starting a Business

The new government will embark on rationalization and simplification of the tax regime to make it non-adversarial and conducive to investment, enterprise and growth

5

Revive Manufacturing

World’s 3rd largest Motorcycle manufacturer

One of the largest Aluminium Rolling companies
Biggest producer of Primary Aluminium in Asia

World’s largest producer of polyester yarn and fibre

World’s 5th largest Wind Turbine manufacturer

World’s largest Motorcycle manufacturer
Largest Oracle Siebel CRM Implementation in India

World’s 2nd largest producer of Viscose Rayon Fibre

Source: World Bank data, BJP manifesto

2014

2020

Execution Plan

FDI in Defence Sector

Labor Intensive Industries

Investment along the Dedicated Freight & Industrial Corridors

NIMZs* outside DMIC Region

Clear Tax Policy

Manufacturing, Value Added ( as % of GDP)

*NIMZ : National Investment and Manufacturing Zones  | DMIC : Delhi-Mumbai Industrial Corridor

Modi aims at cranking up the share of manufacturing in India’s Gross Domestic Product

Source: Zinnov Research and Analysis

Government’s push for manufacturing

Increasing adoption of IT in manufacturing in India

Increasing IoT relevance in manufacturing

MNCs setting manufacturing base in India
Growth of India based manufacturing companies

Wider deployment of SCADA,MES,ERP systems across small scale factories

Growing use cases of IoT in factories
Deploying cloud-based services with intelligent analytics

Added opportunity because of government reforms

USD 3
BN

Source: Zinnov Research and Analysis

Skill

70% population is below 35, indicating a vast talent pool that needs to be empowered

E-education for widespread skill development

Setting up vocational training centers in field of IT and manufacturing

Scale

Speed

Propelled by Technology

E & M Governance will enable better outreach for the government policies

Technology to connect with citizens

Nation-wide Internet connectivity to enhance business outputs in every city

Need to eliminate tardiness in decision making & policy implementation

Need to use technology for real time information & analytics across industries such as PDS, agriculture & transport

Smart Grids, E – Governance, Telemedicine

IoT

Cyber Security, Health Informatics, HGC

HPC

PDS, Agro-analytics

Analytics

UID, E- Files, GI-Cloud

Cloud

1

2

3

4

Talent
Availability

Strong
Democratic Fiber

“Entrepreneurial Indian” Mindset

Communication Infrastructure

Talent
Availability

85,000: Graduates from Top tier Engineering institutes
1.2 Million: Total engineers graduated in 2014
80 Million: Vocationally Trained labors

India’s 4 Growth Pillars

Strong
Democratic Fiber

Strong parliamentary democracy
Well defined electoral processes
Diversified representation in Lok Sabha – 16% - SC, 9% - ST
33% Women representation in various government levels

Communication Infrastructure

>200 Mn internet users; 3rd Largest in the world
2nd largest number of telecom users (18.94 Mn users added each month)
73.32% India’s teledensity
13 Mn broadband subscribers

“Entrepreneurial Indian” mindset

40+ first generation billionaire
4000+ active technology startups
150 Start up incubators
49 Million SMEs/ SMBs operating in India

Source: Hindustan Times, TOI, ET, DNA, Mint, YourStory; 1NCAER: National Council for Applied Economic Research, 2under Jan Dhan Yojana

Modi’s 100-Day Impact

1Groups of Ministers (GOMs) and Empowered Groups of Ministers (EGOMs), 2Soecal Investigative Team,

Jan Dhan Yojana - financial inclusion with 1.5 crore bank accounts opened on the 1st day
1st phase target of 7.5 crore accounts by Jan 2015
National Food Grid to connect deficient areas with surplus producing regions, reduce wastage and contain food inflation

Broadband in 2.5 lakh villages by 2019
Wi-fi in 2.5 lakh schools, all universities
4 lakh public Internet access points
Trainings in small towns/villages for jobs in IT sector
Spend of INR 1 lakh crore on current schemes
INR 13,000 crores for new schemes

Relationship building with Asian nations such as Bhutan, Nepal and China
Modi’s recent visit to Japan led to Japan investing $35 billion in India
Modi setting up Special Management Team under PMO to facilitate business from Japan

The stage is all set to create long term sustainable growth and reposition India on the global map

'Minimum Government, Maximum Governance‘

Empowering the Poor

Digital India

“Looking East”

Impact on the Local Ecosystem

Japanese government’s promise of investing $35 billion (3.5 trillion yen) into infrastructure projects in India 

Areas of partnership include rejuvenation of Ganga, smart cities, transport systems, skill development and next generation infrastructure

Target to double Japan’s FDI and the number of Japanese companies in India within five years

 Beijing committed investment of about $20 billion in India over the next five years 

Setting up of two Chinese industrial parks in Maharashtra and Gujarat

 China will play a role in development of high speed railways in India and the first project will focus on upgrading some of the existing railway lines and stations in India

Japan

China

USA

Five-year Trade and Economic Development Plan’ that seeks to reduce the bilateral trade imbalance and strengthen investment cooperation 

USIBC (US-India Business Council) has identified investments worth $ 41 billion by its members into India in the next 3 years

Interactive website that seeks to foster participatory governance and also aims to keep citizens who volunteered to support government programs engaged. 

MyGov Portal for citizen’s participation in governance

Make in India Campaign

Campaign to put India prominently on the global manufacturing map and, in turn, facilitate the inflow of new technology and capital

UIDAI based Biometric Attendance System across government office to provide a real time
transparent track of government employees attendance

Biometric Attendance System

Modi Government has already started diverse initiatives to improve governance and develop India as the place to be