India Environment Scan

Indian Subcontinent – Interesting Facts

 Richest country until the time of British Invasion

 5,000 year old ancient civilization

 325 languages spoken – 1,652 dialects

 18 official languages: Four major world religions, Hinduism,

Buddhism, Jainism and Sikhism originated here

 28 states, 7 union territories

 1.14 Billion population. Second largest in the world.

 Seventh-largest country by geographical area

Environment Scan Macroeconomic Variables

GDP (Bn. US$) GDP per capita (US$)

1400 1200
1200 1000
1000 800
800
600
600
400
400
200 200
0 0
2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009
E E E E

Growth Indicators

- GDP has grown from USD 670 Billion in ’04 to USD 1230 Billion in ’08

- GDP per capita is estimated to have grown from USD 570 in ’04 to USD 1074 in ’08

- India’s GDP has consistently grown over the last few years, and in spite of the recession in the core sectors, is
expected to grow by around 7% (in real terms) in 2009
Environment Scan Demographics
Population - Age-wise Break-up Above 50
100%
40-49
80%
30-39
60%
20-29
40%
15-19
20% 0 -14

0% Semi Urban
2004 2005 2006 2007 2008 Population%
Population Growth
-1.14 Bn in ’08. Total population has grown by 1.6% since 2001.
-Urban - 324 to 365 Mn.
-15- 39 Yrs Growth - 455 to 489 Mn.
- 34 Mn growth coming from 15-39.
-More than 40% of the population is in the range of 15-39. Around 30% is below 15
- Around 70% of India’s population is below the age of 40.
Urbanization in India
TOWN CLASS /
POPULATION STRATA
No. of Cities: 6
Total Urban Centers : 5161
Total Population: Metro : 4,000,000+
Total Urban Population : 330Mn 55 Mn
% of All India : 30%

No of Cities: 29
Mini Metro : 1,000,000+
Total Population :
50 Mn

No. of Cities : 36 Class 1A : 500,000+

Total Population : 30 Mn

No. of Cities : 362

Class 1 : 100,000+
Total Population : 70 Mn

No. of Cities : 4728

Other Urban : 5,000+
Total Population : 125 Mn
Environment Scan Demographics
Household - Income Distribution

250

200 Total Households

150 Number of H/H earning more

than US$1,000 p.a.
100
Number of H/H earning more
than US$3,000 p.a.
50

0
2004 2005 2006 2007 2008

H/H Growth
- Total H/H to grow from 181 Mn to 214 Mn
- USD 1K pa H/H from 158 Mn to 182 Mn
-USD 3K pa H/H from 27 Mn to 33 Mn.
-25 Mn H/H to come from USD 1K + pa slot
- Upper Middle Income group H/H on the rise.
Environment Scan Demographics
The Increased Surplus Income in Urban India
60%

50%

40%

30%

20%

10%

0%
All India Urban Rural Top 20 Cities

Surplus Income Rate (% of Household Income)

 The rate of Surplus Income has grown tremendously in the recent years, specifically in the Urban
India, further so in the Top 20 Cities of India
 It currently stands at 25% for All India, around 30% for Urban India and a staggering 50% for the
households in the Top 20 Cities
Top 20 Cities :
Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Chennai, Ahmedabad, Pune, Surat, Kanpur, Jaipur,
Lucknow, Nagpur, Bhopal & Coimbatore, Faridabad, Amritsar, Ludhiana, Chandigarh & Jallandhar
Environment Scan
The Consuming-Class Boom
100%

80%
% of Population

60%

40%

20%

0%
1998-99 2001-02 2004-05 2007-08 E 2015-16 E

Low Income Aspirants Consuming Class High Income

 More than 50% of Households will form the “Consuming Class” in Urban India by 2016
 The High-Income segment will triple in 2016, quadruple in boom-towns
Consumer Share of Wallet

11% 7% 6%
4%

10%
22%

3%

37%

Food, Beverages & Tobacco Transportation Housing & Utilities

Health Care Apparel Education & Recreation
Household & Personal Products Communication

 Food & Beverages account for Over 1/3rd of Consumption Expenditure of Households in India
across all urban city groups.
 Income growth likely to result in significant growth across categories
Regional Trends
NORTH
• Extreme Temperatures – April to Sep. Important
Months
• Summer Months – Mar to Oct. Max 50 ºC
•Winter Months – Nov to Feb. Min 0 ºC
• Hindi is the dominant language in the Northern
India.
• Relatively Extravagant & Contemporary Outlook
•More receptive to Change (especially in larger
towns)
• High spend on Lifestyle Products
•Critical Urban centers in North India are – New
Delhi (& NCR), Chandigarh, Ludhiana, Amritsar,
Jallandhar, Lucknow, Kanpur & Jaipur.
• The Lower Himalayan range offers perfect ground
for Orchards and is also an important Natural
Mineral (Mountain) Water source
•North India has the higherst percentage of
Diabetics.
EAST
• Hot & Moderate most part of the year.
• Hilly Regions in NE has cold temperatures
• Summer Months – Feb – Nov. Max 35-40 ºC
• Winter Months – Dec –Jan Min 10 ºC
• Hindi is primarily spoken in Bihar. Most of the
Other states have their own languages like Bengali,
Orria etc
• Primarily Orthodox and Conventional and
Extremely Budget Conscious
• Less receptive towards Change.
• Relatively higher spend on Utility Products.
• Tea is the most popular drink.
•Important urban centers include Kolkata, Patna,
Bhubeneshwar. Ranchi.
• Important Tea Producing Belt. Home to the famous
Darjeleeng & Assam Tea.
Regional Trends
WEST
• Mostly Pleasant Temperatures with High Humidity
(Except MP, that has an extreme climete)
• Summer Months – Mar to Nov. Max 35-40 ºC
•Winter Months – Nov to Feb. Min 7-10 ºC
• Though every state has its own language (Marathi,
Gujarati and Konkani), Hindi is widely known and
accepted language for communication.
•Progressive Outlook
• Highly receptive towards Change.
• High spend on Lifestyle Products
• Critical Urban centers in West India are – Mumbai,
Ahmedabad, Pune, Surat, Nagpur, Bhopal & Indore.
• The Western Region is an important fruit
producing belt and is home to the world famous
“Alfanso” variety of Mangoes as well as
international quality Grapes
SOUTH
• Relatively Warm to Hot & Humid for most part of
the year.
• Coastal regions receive significant rainfall during
monsoon season (June-Sep)
• Temperature ranges : Max 35-40 ºC and Min
10-15 ºC
• Every state in South has its own Language, Media
& Tastes. Hindi is not spoken or understood by the
masses.
• Very Orthodox and Staunch in their outlook.
Extremely pragmatic in their spends
• Slow and Cautious approach towards change.
• Coffee is the most popular drink in South. This
region consumes more than 50% of Coffee in India.
• Another famous drink is Coconut Water. That is
consumed Naturally (not in packaged form).
•Important urban centers include Bangalore,
Hyderabad, Chennai. Coimbatore, Kochi, Vizag.
• Important Tea & Coffee Producing Belt.
Thank You