Tag: India

Natural Mineral Water Indian Industry Analysis

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Natural mineral water
According to American and European Regional Codex Standard, natural mineral water:
is obtained directly from natural or drilled sources from underground water – bearing strata.
is collected under conditions which guarantee the original natural bacteriological purity.
is bottled at the point of emergence of the source with

particular hygienic precautions is not subjected to any chemical treatment.

Indian bottled Water Industry

The bottled water industry in India is estimated at about Rs 1,000 crore and is growing at 40 per cent. “By 2010, it will reach Rs 4,000 – 5,000 crore with 33 per cent market for natural mineral water.

The formal bottled water business in India can be divided broadly into three segments in terms of cost: premium natural mineral water, natural mineral water and packaged drinking water.

It is estimated that the global consumption of bottled water is nearing 200 billion litres – sufficient to satisfy the daily drinking water need of one-fourth of the Indian population or about 4.5 per cent of the global population at the fourth World Water Forum held in Mexico City in March 2006.

In India, the per capita bottled water consumption is still quite low – less than five litres a year as compared to the global average of 24 litres. However, the total annual bottled water consumption has risen rapidly in recent times – it has tripled between 1999 and 2004 – from about 1.5 billion litres to five billion litres. These are boom times for the Indian bottled water industry – more so because the economics are sound, the bottom line is fat and the Indian government hardly cares for what happens to the nation’s water resources. Since 1991-

1992 it has not looked back, and the demand in 2004-05 was a staggering 82 million cases.

Mineral Water Market in India

For example, the per capita consumption of mineral water in India is a mere 0.5-liter compared to 111 liter in Europe and 45-liter in USA.

But over the last ten years, it has witnessed tremendous growth. The change is very much evident. Once a product found mainly at railways stations, mineral water today occupies a place on the shelf in most superstores, grocers and even paanwalas. From a mere 60 towns in the year 1997, it is predicted that mineral water is today available in more than 1000 towns and cities across India. With a compounded annual growth rate of close to 30% over the last decade, the mineral water market has witnessed a large growth in terms of volumes.

The market is highly competitive with the entry of MNCs like Pepsico and Coke. There are a lot of brands available in the market, each with its own proclaimed differentiation.

2.2 Player in the market

In natural mineral water there are very few company like Himalayan, Aava, Evian is playing in the market. 50% of the market is captured by Himalayan.
While a thousand bottled water producers, the Indian bottled water industry is big by even international standards. There are more than 200 brands, nearly 80 per cent of which are local.
Most of the small-scale producers sell non-branded products and serve small markets.
Despite the large number of small producers, this industry is dominated by the big players – Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on.

Consumption of bottled water in India is linked to the level of prosperity in the different regions. The western region accounts for 40 per cent of the market and the eastern region just 10. However, the bottling plants are concentrated in the southern region – of the approximately 1,200 bottling water plants in India, 600 are in Tamil Nadu. This is a major problem because southern India, especially Tamil Nadu, is wate starved.

Mineral water business is restricted only to big hotels & Restaurants. This field has lot of scope because of unawareness in the market and people are becoming health conscious.

Dairy Industry Of India

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The dairy industry plays an important role in the socio-economic development of India. The dairy industry in India is instrumental in providing cheap nutritional food to the vast population of India and also generates huge employment opportunities for people in rural places.

The Department of Animal Husbandry, Dairying, and Fisheries, which falls under the central Ministry of Agriculture, is responsible for all the matters relating to dairy development in the country. This department provides advice to the state governments and Union Territories in formulating programmes and policies for dairy development. It also looks after all the matters relating to production and preservation of livestock farms (cattle and sheep). To keep focus on the dairy industry a premier institution known as the National Dairy Development Board was established. This institution is a statutory body that was established in 1987. The main aim to set up the board was to accelerate the pace of dairy development in the country and attract new investments.

India is a wonderland for investors looking for investment opportunities in the dairy industry. The dairy industry holds great potential for investment in India and promises high returns to the investors.

The reasons why the industry has huge potential for attracting new foreign investment are:

1.There is a basic raw material need for the dairy industry; that is, milk is available in abundance.
2.India has a plentiful supply of technically skilled laborers.
3.There is an easy availability of technological infrastructure.
4.India has all the key elements required for a free market system.

There are different sectors within the dairy industry that promise great business investment opportunities:

Biotechnology:
1.The Indian cattle yield less milk as compared to their foreign counterparts. The Indian cattle breeders are on the lookout for ways to improve their milk yield through cross-breeding. Thus, there is a huge potential available for foreign investors to invest in dairy cattle breeding of high-quality buffaloes with hybrid cows.
2.There is also great scope for investment in different dairy cultures, including dairy biologics, enzymes, probiotics, and other coloring materials for food processing.
3.Producing biopreservative ingredients based on dairy fermentation, such as pediococcin, aciophilin, bulgarican, and Nisin contained in dairy powder, also promise great investment opportunity.

Dairy/Food Processing Equipment:
Great potential lies for foreign investment for manufacturing and marketing of cost-effective, top-quality food processing machinery.

Food Packaging Instruments:
There is a tremendous investment opportunity for foreign investors in the manufacturing of both machinery and packaging materials that aid the development of brand loyalty and gives a clear edge in the marketing of dairy products.

Retailing:
Retailing of dairy products also promises great investment opportunities for standardization and upgrading dairy products in the main metropolitan cities.

Manufacture of Ingredients:
Several ingredients are involved in the making of different dairy products like ghee, condensed milk, and cheese. Manufacturing of ingredients for these products offers a great potential for foreign investment in India.

Finished Products:
There is a great scope for investment in the manufacturing of finished dairy products such as cheese sauce and cheese powders.

Technically Advanced Manufacturing Units:
There is a great opportunity for foreign investors to invest in establishing manufacturing units for dairy products. The investors can build world-class manufacturing units and let them for hire. Building manufacturing units supports specialized dairy-related activities, such as cheese slicing, cheese packaging, butter printing, and dicing lines, which hold greater potential over other activities.

Thus, the dairy industry in India has huge investment opportunities in a variety of sectors. The investors are all set to gain profitable returns on their investment.

Bright Future For Indian Textile Industry

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Introduction

The textile industry in India is substantial, and largely diversified. It is hard to cover all its aspects even within hour-long presentation, however, research team of Fibre2fashion.com has attempted to gather significant pieces of massively complicated puzzle of this industry.

The Indian textile industry roots thousands of years back. After, the European industry insurrection, Indian textile sector also witnessed considerable development in industrial aspects. Textile industry plays an important role in the terms of revenue generation in Indian economy. The significance of the textile industry is also due to its contribution in the industrial production, employment. Currently, it is the second largest employment provider after agriculture and provides employment to more than 30mn people.

Prospect

Considering the continual capital investments in the textile industry, the Govt. of India may extend the Technology Upgradation Fund Scheme (TUFS) by the end of the 11th Five Year Plan (till 2011-2012), in order to support the industry. Indian textile industry is massively investing to meet the targeted output of $85bn by the end of 2010, aiming exports of $50bn. There is huge development foreseen in Indian textile exports from the $17bn attained in 2005-06 to $50bn by 2009-10. The estimation for the exports in the current financial year is about $19bn. There is substantial potential in Indian exports of technical textiles and home-textiles, as most European companies want to set up facilities near-by the emerging markets, such as China and India.

The global demand for apparel and woven textiles is likely to grow by 25 percent by year 2010 to over 35mn tons, and Asia will be responsible for 85 percent output of this growth. The woven products output will also rise in Central and Southern American countries, however, at a reasonable speed. On the other hand, in major developed countries, the output of woven products will remain stable. Weaving process is conducted to make fabrics for a broad range of clothing assortment, including shirts, jeans, sportswear, skirts, dresses, protective clothing etc., and also used in non-apparel uses like technical, automotive, medical etc

It is been forecasted that the woven textile and apparel markets will sustain their growth from current till 2010. The imports of apparel and textiles will rise from developed economies like the USA and the western countries of Europe and Japan, along with some newly emerged economies, such as South Korea and Taiwan. Certainly, import growth has been witnessed vertical rise in the previous year.

Apparel is the most preferred and important of all the other applications. Woven fabrics are widely used in apparel assortments, including innerwear, outerwear, nightwear and underwear, as well as in specialized apparels like protective clothing and sportswear. Home textile also contributes considerably in woven fabric in products assortments like curtains, furnishing fabrics, carpets, table cloths etc.

Special kind of woven fabrics are utilized in medical as well as industrial applications. The medical applications include adhesives, dressing bandages, plasters etc.

Where as, industrial applications includes;

Geotextile – interior upholstery, trim, airbags and seat belts and lyre fabrics.
Sailcloth – tent and fabrics used architectures, transportation and tarpaulins.
And many more applications
The Indian Industry foresees huge demand for industrial woven products for medical and automotive applications. Demand for woven fabrics is anticipated to be rise vertically in the sector of home textiles.

Non woven sector has great future in terms of global demand, thus major facilities of cotton yarn are currently concentrating just on home textiles. It is mandatory, that the peak management of the cotton yarn manufacturers analyze the future prospect and growing graph of demand for non woven products.

Conclusion

Anticipating massive growth in medical and automobile sectors, these sectors assures substantial demand for non woven facilities in India. Albeit, home textiles also will lure higher demand, there are specific demands for home textile facilities also.

The 7th Five Year Plan has huge consideration on agricultural growth that also includes cotton textile industry, resulting a prosperous future forecast for the textile industry in India. Indian cotton yarn manufacturers should rush forward for joint ventures and integrated plans for establishing processing and weaving facilities in home textiles and technical textiles in order to meet export target of $50bn, and a total textile production of $85bn by 2009-2010.

Copyright ‘ 2006

Information Of Hotel Industry Laws In India – Part1

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Opportunities
Applicable laws/regulatory policies.

Introduction

Hotel Industry in India is witnessing tremendous boom in recent years and going through an interesting phase. One of the major reasons for the increase in demand for hotel rooms in the country is the boom in the overall Economy and high growth in sectors like information technology, telecom, retail and real estate. Rising stock market and new business opportunities are also attracting hordes of foreign investors and international corporate travelers to look for business opportunities in the country particularly growth in tourism sector. As hotel industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth of Indian hotel industry.

Explosive economic growth in India ignites unquenchable demand for hotel rooms. With huge investments flowing into India for the development of infrastructure such as roads, highways, airports and convention centers, interest in hotel developments is hitting new highs as tourism, business and travel are on the rise.

The booming tourism industry has had a cascading effect on the hospitality sector with an increase in the occupancy ratios and average room rates. And with the continuing surge in demand, many global hospitality majors have evinced a keen interest in the Indian hospitality sector. It is estimated that India is likely to have around 40 international hotel brands by 2011.

Opportunities

The spurt in Indias tourism industry growth has had a ripple effect on its hospitality sector. Rising income levels and spending power combined with the governments open sky policy have provided a major thrust. The industry is growing at a very rapid pace and there is a demand for more rooms both in metros and smaller towns. It is estimated that India is likely to have around 40 international hotel brands by 2011.

Indias booming hospitality industry has transformed into a veritable basket of the choicest of rooms, food and beverage, health and business facilities, travel packages and everything that you can think of. New global entrants are vying with existing local players to provide world-class services at prices suited to every pocket.

An estimated 4.4 million tourists are expected to visit India with an annual average growth rate of 12% in the next few years. The domestic tourist market is also flourishing. The commonwealth games in 2010 will add to the demand for quality accommodation.

The Government of Indias Incredible India destination campaign and the Atithi Devo Bhavah campaign have also helped the growth of domestic and international tourism and consequently the hotel industry.

The opening up of the aviation industry in India has exciting opportunities for hotel industry as it relies on airlines to transport 80% of international arrivals. The government’s decision to substantially upgrade 28 regional airports in smaller towns and privatization & expansion of Delhi and Mumbai airport will improve the business prospects of hotel industry in India. And the upgrading of national highways connecting various parts of India has opened new avenues for the development of budget hotels in India. Taking advantage of this opportunity Tata group and another hotel chain called ‘Homotel’ have entered this business segment.

If you want to read article go to second part of this – Information of hotel industry laws in india – part2.

Scenario Of Mobile Industry In India

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A lot of water has flowed under the bridge from the time that mobiles were unheard of in India to the present where they have become almost ubiquitous. Beginning from those days, Indian subscribers paid around Rs. 16.40 for a mobile to mobile call and around Rs 32.80 for a mobile to a landline call. Today, as per recent statistics, customers pay far lesser for calls and occasional text messages that add up to around Rs 300 a month and upwards.

Now that mobiles have moved into the affordable bracket, there is a great demand for additional mobile services such as mobiles, email, stock market quotes, and astrology services, just to name a few.

A recent survey pointed to the fact that for most customers, mobile phones have become an extension of their personality. Many go a step ahead to say that mobile phones define their individuality as well.

In such a scenario, it is worthwhile to compare the growth of the mobile phone industry vis-a-vis the computer industry in India. According to recent statistics, there are nearly 300 million mobile phone subscribers as compared to just around 30 million PCs in the country. Additionally, around 8 million subscribers are signing up every month for mobile services alone.

For most individuals, mobile phones are becoming a single point of contact for the world surrounding them covering a wide range of utilities like emailing, entertainment, and banking.

More and more people are looking out for more than just talk time on their mobiles. All this is generating a lot of enthusiasm for mobile companies. A number of serious players in this industry are looking at a range of such value added services, which have the capability to boost their bottom line.

Not only are Indians enthralled, but they started spending a considerable amount on these services too. This figure amounted to around $250 million last year. This figure is expected to reach $1.7 billion by the year 2010. This is a boon in disguise for Indian cellular operators who are seriously looking forward to enhance their revenues. Currently, nearly 80% of the revenues come from services like ring tones and SMS. This makes India the second largest mobile market on earth.

The young mobile savvy generation currently feels less privileged in nearly every sector. And thats precisely what is fuelling the growth in mobile services across the country. As the market expands but fulfilling the needs of mobile users by providing them attractive services, mobile phones are becoming a new vehicle for reaching out to the mobile generation.

Mobile content providers also visualise a big jump in their services. These include many global companies such as Google, Yahoo and MSN, which have signed up with many Indian operators like Airtel, Bharti, Vodafone, Tata, and Reliance Communications. Together, they offer a host of services based on the local and regional markets in their area of operation.

The Indian mobile scenario seems to be all set for the next stage expansion and consolidation, but there are a few complications as well. Not all users can afford costlier services beyond messaging and talk time. What is expected is increase in the already growing user base so such services can become affordable to one and all in the long run.