While evaluating and entering new markets, the opportunities and challenges presented by each industry segment are different and unique enough to merit careful and sustained research and analysis in order to gain a competitive advantage.

  • Industry Brief

    The transportation and logistics industry is the primary driver behind the most critical pillar of global business viz. Supply Chain Management. It deals with the movement of Humans, Animals and Goods from one location to another. The growth of logistics sector is directly proportional to the economic growth of India and combined together with transportation industry, they are responsible for creating millions of job opportunities across all income levels.

    At BGBS, we classify the Transportation and Logistics industry in India into the following categories:

    a) Roadways and Railways b) Waterways and Airways c) Inbound and Outbound Logistics d) Warehousing and Packaging

    Indian spends more than 14% of its GDP on transportation and logistics compared to less than 10% spent by other developing countries. The Indian Transportation and Logistics Industry are expected to grow at a CAGR of 12% - 15% by 2020 driven by the growth of manufacturing, retail, FMCG and e-commerce sectors. The logistics market in India is expected to be worth around 275 Billion Euros within the next 3 to 5 years.

    Packaging sector is the 5th largest sector in the Indian economy and is growing at a CAGR of 22% - 25% and is expected to reach approx. 75 Billion Euros in the next couple of years. The well-established warehousing industry in India is expected to attract investments of around 6.5 Billion Euros in the next three years.

    Some of the top transportation and logistics companies in India are Jet Airways, Indian Railways, Agarwal Packers and Movers, FedEx Express, CTC Freights among many others.

Transportation and Logistics

Transportation and Logistics

  • Industry Brief

    Infrastructure is universally understood to be the fundamental basic physical platform needed for the operation of any society successfully. At BGBS, we classify the Infrastructure and Construction industry in India into the following categories:

    a) Commercial Buildings b) Residential Buildings c) Public Transport Infrastructure d) Dams and Power plants e) Other Infrastructures

    The construction industry in India contributes more than 8% to India’s GDP. As per the report submitted by the Department of Industrial Policy and Promotion, Foreign Direct Investment (FDI) received in Construction Development sector (townships, housing, built up infrastructure and construction development projects) from April 2000 to March 2017 was around 20 Billion Euros.

    To close the gap in infrastructure development, India will need up to 1.5 Trillion Euros according to the latest estimates by The World Bank. It is speculated that increasing participation from International and Private Players will boost the growth of commercial infrastructure by 19% by the end of 2020.

    Some of the top Infrastructure and Construction companies in India are Larsen and Toubro, Reliance Infrastructure Limited, GMR Infrastructures, Prestige Group, Brigade Group, Hindustan Construction Company among many others.

Infrastructure and Construction

Infrastructure and Construction

  • Industry Brief

    A country’s economic growth and welfare depends on its Energy and Power (E&P) sectors and India currently has one of the most diversified E&P sectors in the world. Energy sources range from Conventional options such as oil and coal to Non-conventional options such as solar, wind, agricultural waste, and others. India also has a well established and growing Nuclear Power industry. At BGBS, we classify the E&P industry in India into the following categories:

    a) Sources b) Operations c) Government and Custodian Authorities

    India is the world’s fourth-largest Energy Consumer and the fourth largest consumer of oil and other petroleum products and this demand is expected to increase due to the increase in the economic growth of the nation.

    The Government of India’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country and the total installed capacity of power stations in India stood at 343.79 Gigawatt (GW) as on April, 2018. India’s large reserves of coal contribute about 197,171.50 MW and natural gas measures about 24,897.46 MW of power production as on March, 2018. The Government has also permitted 100% FDI under automatic route to increase investment in this sector to move towards the ambitious target of achieving 175 GW capacity in renewable energy by 2022, which includes 100 GW of solar power and 60 GW of wind power. Measures such as the 10-year tax exemption for solar energy projects coupled with restarting the stalled hydro power projects and increasing the wind energy production would facilitate this process. In addition, work towards making India as the world's first country to use LEDs for all lighting by 2019, is in progress.

    Some of the key players in this sector are Reliance Power, Tata Power, GVK, Suzlon, NTPC, Siemens and NHPC.

Food and Beverages

Energy and Power

  • Industry Brief

    The Process Manufacturing industry comprises of companies which carry out all the intermediate processes that are involved in the production and integration of a product. At BGBS, we classify the Process Manufacturing industry in India into the following categories:

    a) Pharmaceuticals, Biotechnology and Allied b) FMCG c) Chemicals and Paints d) Food Processing e) Textiles

    ‘Make in India’ program was created with the aim of placing India on the world map as a manufacturing hub and to ensure the global recognition of the Indian economy. The Government has Industrial Parks, National Investment & Manufacturing Zones, Special Economic Zones, Sector & Country Specific Zones, Industrial corridors (E.g. Delhi – Mumbai Industrial Corridor) and many more infrastructure related initiatives to ensure India is amongst the top 3 global manufacturing destinations in the coming years.

    Factors such as reduction of the income tax rate to 25% for all companies having a turnover of up to 33.15 million Euros, a tech-savvy and educated population, sustained availability of quality workforce makes India a destination that investors cannot overlook anymore. The implementation of the Goods and Services Tax (GST) is making India a common market. It is estimated that the share of the manufacturing sector to GDP will be 25% or more by 2022 in turn creating 100 million new jobs by 2022.

    Some of the key players out of the thousands present in this sector are Hindustan Unilever Limited, Cipla, Tata Chemicals, BEL, Moser Baer India Ltd.

Consumer Goods

Process Manufacturing

  • Industry Brief

    The beauty and wellness industry in India is booming, with a tremendous potential for continuous growth in the years to come. It is estimated to be growing twice as fast as markets in the US and Europe and is currently the second largest consumer market in the world. At BGBS, we classify the Healthcare, Beauty and Wellness industry in India into the following categories:

    a) Outlets b) Technology c) Wellness Tourism d) Service Providers

    The market is estimated to increase three fold by 2022. It is estimated that the salon and spa business together account for 31% of the total size of the beauty and wellness market. The CAGR of the healthcare, beauty & wellness business in India is expected to remain between 16% - 18% in the coming years.

    The Government of India in collaboration with the private sector organize numerous trade events, exhibitions, conferences and investment summits to boost growth in these segments. The most well known among these include ‘India International Wellness Expo’, ‘Health & Wellness Conference and Exhibition’ and various others. For the benefit of international players, 100% FDI is allowed in the wellness sector.

    In the coming 10 years the healthcare industry alone is expected to reach 235 Billion Euros. High-end diagnostic services catering to a greater proportion of population has opened up large investment opportunities for advanced diagnostic facilities.

    Some of the major influencers in this segment are Apollo Hospitals, Lakme Saloon, VLCC, Shahnaz Husain Group, Reliance Life Sciences, Care Hospitals, Max Life Insurance, Fortis Hospitals among many others.

Renewable Energy

Healthcare, Beauty and Wellness

  • Industry Brief

    Education Industry is the base for social transformation and economic growth of a country. At BGBS, we classify the Education industry in India into the following categories:

    a) Schools b) Colleges and Universities c) Training Institutes

    India, considered one of the largest education industries in the world has more than 375 Universities and 18,000 Colleges with more than 11 Million students studying across the country. India having literacy rate of only 74% compared to the world average of 86% presents an opportunity for the private players to explore the opportunities in the Indian market. The Foreign Direct Investment is constantly increasing and it has reached about 1.5 Billion Euros in the last financial year.

    According to various sources, the current market size of Online Training Market in India is quite large with some estimates pegging it to be worth several billion Euros. The industry accepted growth rate projections for the next few years are in the range of CAGR 15% - 20%.

    Some of the top players in the Indian Education Industry include the Indian Institutes of Technology, NIIT, BITS Pilani, Manipal Educational Group, Delhi Public Schools, XLRI, AIIMS, SImplilearn among many others.

Human Resources

Education

  • Industry Brief

    Indian consumer market is a highly attractive customer segment with a constantly growing appetite characterized by evolving consumption trends as a result of sustainable increase across income levels. At BGBS, we classify the Consumer Market in India into the following categories:

    a) Affluent Consumers b) Middle Class Consumers c) Base of the Pyramid Consumers

    India is estimated to be the 12th largest consumer market in the world and has grown by close to 14% in the latest financial year. Validating this increase in consumption, 8 out of the 10 leading companies catering to this segment posted double digit value growth in the same period.

    The Indian Electronics market is expected to grow at 41% CAGR in the next couple of years. India is currently the second largest smart phone market in the world and studies state that the number of smart phones sales in India would reach 650 Million by 2019. The online retail sector in India is expected to be a 1 Trillion Euros market by 2020.

    Indian is expected to become the third largest consumer market globally by 2025 because of the rising affluence and increasing salary levels of the upper middle class.

    The top companies catering to this sector include Amul, Nestle, Samsung, Godrej Group, Videocon, and Hindustan Unilever among many others.

Industrial Goods

Consumer Markets

  • Industry Brief

    The Media and Entertainment (M&E) industry in India has been described by various commentators as being a Sunrise sector, characterized by exponential growth prospects in the next few years fuelled by an ambitious investor community. At BGBS, we classify the M&E industry in India into the following categories:

    a) Publishing b) Video Games c) Audio & Video/Animation d) Streaming Media e) Interactive Media f) Social Media g) Theatre/ Art & Events

    The Indian M&E industry has witnessed an upward growth in the past couple of decades and remains largely insulated by the vagaries of economic uncertainties. In fact, India is projected to be the second fastest growing advertising market in Asia after China.

    The turnover for the year 2017 was estimated to be in the range of 18 - 20 Billion Euros, resulting in a growth rate of 12 – 15% in comparison with the previous years. The industry is expected to grow at a much faster rate than the global average rate in the years to come. Within the last year, approximately 4 million people found employment at companies under the M & E umbrella.

    The television segment dominates the overall media and entertainment industry followed by Print media, Out of Home (OOH) and Radio within India. Digitizing the cable distribution sector was one of the greatest initiations from the Indian Government followed by increasing the FDI limit from 74% to 100% in cable and Direct-to-home (DTH) satellite platforms, and these two were coupled with granting industry status to the film industry for easy access to institutional finance.

    The M&E industry is expected to grow at a compound annual growth rate of approximately 12% to reach within touching distance of the next ambitious 30 Billion Euros milestone by 2020.

    Some of the top companies in this space include Times Group, Big Cinemas, PVR Cinemas, Dharma Productions, TVF Productions, Star Network, News 18 Group among many others.

Pharmaceutical and Healthcare

Media and Entertainment

  • Industry Brief

    Tourism and Hospitality (T&H) sectors are included under the tertiary sector of a country’s economy. In India, the importance of these sectors as an economic engine cannot be underestimated and significant growth prospects exist for international companies from these industries wishing to expand into the Indian market. At BGBS, we classify the T&H industry in India into the following categories:

    a) Passenger Transport & Services b) Tours & Operators c) Boarding & Lodging d) Food & Beverages e) Recreation & Entertainment f) Government and Custodian Authorities

    In 2017, India was ranked among the top 10 countries globally in terms of the contribution made by the T&H sectors to its GDP. In actual terms it is estimated that this space would continue to grow significantly come close to achieving its target of reaching approximately 0.5 trillion Euros in market size by 2028. By then, the total employment impact of this growth would result in approximately 55 million new jobs.

    It is the third largest foreign exchange earner for India. In the first half of 2017 alone, fees for tourism increased approximately 15% year on year to cross the 10 billion Euro mark. The number of Foreign Tourist Arrivals (FTAs) increased 8.8 per cent year on year to 4.48 million Euros in the same period.

    The future holds tremendous promise with continued expectation of high growth. The Government of India is working towards achieving an ambitious target of a one percent share in world's international tourist arrivals by 2020 and two per cent share by 2025. The industry is also looking forward to the expansion of E-visa scheme which is expected to double the tourist inflow to India.

    Some of the top companies in these sectors include The Taj Group, The Country Club, The Park Hotels, Thomas Cook, Makemytrip, Leela Palace, India Tourism Development Corporation Ltd. among many others.

Tourism and Hospitality

Tourism and Hospitality