Indian semiconductor market

Indian semiconductor market set to touch $ 8 bn in 2011:

Buoyed by demand from the telecom and IT sector , the semiconductor market in India is poised to grow at a CAGR of 22.1 per cent to touch $ 8.04 billion in 2011, according to the India Semiconductor Association (ISA). This is against revenues of $ 5.39 billion in 2009.

With the completion of the 3G and BWA auctions, there will be increased demand for wireless handsets, 3G network devices, WiMax equipment and notebooks, all of which will provide a fillip to the Indian semiconductor industry.There is also a good demand from the defence sector, along with the DTH industry (for set-top boxes),aerospace and smart card companies.According to the ISA-Frost & Sullivan India Semiconductor Market 2009-2011 report, the Indian semiconductor market grew 15.6 per cent in 2009, in contrast to the global market that shrunk by 11 per cent from 2008 levels. 

The available opportunity is also huge. "The opportunity in the semiconductor industry is expected to witness a CAGR of 34.8 per cent in the Total Available Market (TAM), the revenue of which is anticipated to climb to $ 4.84 billion in 2011 from $ 2.66 billion in 2009," the report said. 

The report said that design and manufacture of electronic systems in the country was also a potential opportunity, The total available market for the Indian electronics industry is anticipated to rise significantly to $ 37.1 billion in 2011 from $ 25.4 billion in 2009, growing at a CAGR of 21.4 per cent.

The opportunity is available across multiple segments like telecom, automotive and healthcare.

Indian Telecom Industry In 2011

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Indian Telecom Industry In 2011

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India Retail Industry: Cover Story

India Retail Industry:

The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010.

Growth of Indian Retail

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.

Major Retailers in India 

Pantaloon:

Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket ‘Big Bazaar’. It has the following retail segments:

• Food & Grocery: Big Bazaar, Food Bazaar
• Home Solutions: Hometown, Furniture Bazaar, Collection-i
• Consumer Electronics: e-zone
• Shoes: Shoe Factory
• Books, Music & Gifts: Depot
• Health & Beauty Care: Star, Sitara
• E-tailing: Futurebazaar.com
• Entertainment: Bowling Co.

Tata Group

Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft retail space across the country.

RPG Group

RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets ‘Health & Glow’.

Reliance

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach Rs. 90,000 crores by 2010.

AV Birla Group

AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

Retail formats in India

• Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories. 
• Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch.
• Departmental stores: are general retail merchandisers offering quality products and services.
• Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered.
• Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof.
• E-trailers: are retailers providing online buying and selling of products and services.
• Discount stores: these are factory outlets that give discount on the MRP.
• Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine.
• Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's.
• Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples.

Challenges facing Indian retail industry

• The tax structure in India favors small retail business
• Lack of adequate infrastructure facilities
• High cost of real estate
• Dissimilarity in consumer groups
• Restrictions in Foreign Direct Investment
• Shortage of retail study options
• Shortage of trained manpower
• Low retail management skill

The Future

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.

Toyota to park Etios

Toyota to park Etios in ‘affordable' segment:

Nearly four years after starting work on a compact family car for the emerging markets, Toyota Motor Corporation is all set to unveil the Etios today.

The Toyota Motor's President, Mr Akio Toyoda, will fly in to Bangalore for the launch of the compact 1.5 lt petrol version of Etios sedan which has been manufactured at its Bidadi plant run by its joint venture company, Toyota Kirloskar Motor.

Speculation on price:

Toyota Kirloskar has invested nearly Rs 3,000 crore for manufacturing the Etios. The hatchback version will be launched sometime during the middle of next year.

Though the price has been kept a closely guarded secret and will be announced at a press conference today, auto analysts say that it might be priced between Rs 5 lakh and Rs 6 lakh and will compete in the Swift and Hyundai i20 segment. It is expected to give a mileage of about 17 km a litre.

The new plant has an initial capacity of 70,000 units per year and is next to the existing plant which makes the multi-purpose Innova, Corolla, Camry and Fortuner.

The man who designed and developed Etios, Toyota Motors' Chief Engineer, Product Planning, Mr Yoshinori Noritake, told that the indigenisation level of the car is about 70 per cent, while initially the engine and the transmission will be imported. He said Etios has been developed keeping in mind Toyota's focus on quality and safety. “The car has good fuel efficiency, roomy interiors and ride comfort which is what most Indians look for in a car,” he added.

Mr Noritake visited India more than 50 times and interviewed over 100 car owners before putting together the car. He said Toyota has always been known for quality but its price was found high for car buyers in the emerging markets. Hence, it was a challenge to design a car which was affordable without compromising on quality.

The hatchback version is expected to be called as Etios Liva. The diesel version of both hatchback as well as sedan is expected to be launched by 2012.

Hyundai Motor

Hyundai Motor crosses 20-lakh sales milestone:

Hyundai Motor India (HMIL) announced on Tuesday that it has achieved a milestone with sales of 20 lakh cars in 12 years – the fastest yet in the domestic market. The Korean automaker, one of the largest carmakers and the biggest car exporter in India, has thus become the second manufacturer in India to have achieved this status after market leader Maruti Suzuki. With exports included, HMIL had already sold 25 lakh units by December, 2009. The company had started domestic operations in September 1998, with the rollout of the small car Santro from its Chennai plant. Currently,, it also makes other cars such as the Accent, Verna, i10, i20 and the Sonata.