10 Indian Industry sectors to perform well in current global
By Azaz Motiwala
As every business sector is affected by present global
crisis and everybody is talking of slow down in business,
still in India there are few sectors which will grow in this
adverse situation. Lets have a look.
No one can survive without basic food material like milk,
vegetables and drinking water. Food processing companies
will not be affected much and rather will earn profits by
increasing the prices. These are the basic needs which we as
a common man can not produce by our self.
According to MFPI, the food processing industry in India was
seeing growth even as the world was facing economic
recession. According to the minister, the industry is
presently growing at 14 per cent against 6–7 per cent growth
in 2003–04.The Indian food market is estimated at over US$
182 billion, and accounts for about two thirds of the total
Indian retail market. Further, the retail food sector in
India is likely to grow from around US$ 70 billion in 2008
to US$ 150 billion by 2025
As the aviation sector has been affect much badly and
resulting in sharp rise in the air ticket rates the frequent
travelers will prefer railways to cut the cost of traveling
and this will result in increased traffic in railways and
long queues at railway booking counters. The freight traffic
of Indian Railways has continued to grow in the last few
months, albeit at slow pace, indicating only marginal impact
of the global recession on the Indian economy.
The Railways registered 13.87% growth in revenue to Rs
57,863.90 crore in the first nine months ended December 31,
2008. While total earnings from freight increased by 14.53%
at Rs 39,085.22 crore during the period, passenger revenue
earnings were up 11.81% at Rs 16,242.44 crore. The Railways
have enhanced freight revenue by increasing its axle
loading, improving customer services and adopting an
innovative pricing strategy.
3. PSU Banks
As seen in the private sector much of the job cuts due to
global slowdown, its the PSU sector Banks which gained much
confidence due to job safety and security. More and more
people are likely to turn towards government institutions,
particularly banks in the quest for safety and security.
A report "Opportunities in Indian Banking Sector", by market
research company, RNCOS, forecasts that the Indian banking
sector will grow at a healthy compound annual growth rate (CAGR)
of around 23.3 per cent till 2011.
As Education is considered as the basic necessity and in
India it is seen as a long term investment by parents and
with respect to the demand still there is a huge supply gap.
The craze to study in foreign university among the Indian
youth still alive which will prompt foreign education
institute to target India provided vast young population
willing to join. We will see more and more foreign
educational institutions to come up in India in recent
Huge government as well as private investment is likely to
flow into the Indian educational system. D E Shaw, a US$ 36
billion, global private equity firm is planning to invest
around US$ 200 million in the Indian education sector.
People will not stop to communicate with each other due to
global crises rather it has been seen that it will increase
much particularly with mobile communication. With cheap cell
phones available in the Indian market and cheaper call
rates, the sector has become the necessity and primary need
of everyday life.
Telecom sector, according to industry estimates, year 2008
started with a subscriber base of 228 million and will
likely to end with a subscriber base of 332 million – a full
century ! The Telecom industry expects to add at least
another 90 million subscribers in 2009 despite of recession.
The Indian telecommunications industry is one of the fastest
growing in the world and India is projected to become the
second largest telecom market globally by 2010.
Recent news shown that Indian IT sector will grow 30-40%
next year. And on the other side to survive in current
slowdown, industries have to decrease the cost and for that
they will resort to customized IT solutions which will
further boost up the software solution demand.
India is fast becoming a hot destination for outsourced
e-publishing work. As per a Confederation of Indian Industry
(CII) report, the industry is growing at an annual rate of
35 per cent and India's outsourcing opportunities in the
value-added and core services such as copy editing, project
management, indexing, media services and content deployment
will help make the publishing BPO industry worth US$ 1.46
billion by 2010.
7. Health care
India in case of health care facilities still lakes the
adequate supply. In Health care sector also there is huge
gape between demand and supply at all the levels of society.
Still there are so many urban areas were you could hardly
find any multi specialty hospital. And in case of metros the
market sentiments itself created a need of psychological
Healthcare, which is a US$ 35 billion industry in India, is
expected to reach over US$ 75 billion by 2012 and US$ 150
billion by 2017. The healthcare industry is interestingly
poised as it strives to emerge as a global hub due to the
distinct advantages it enjoys in clinical excellence and low
8. Luxury products
The high and affluent class of society will not be affected
much by this global crises even if their worth is reduced
significantly. They will not change their life style and
will not stop spending on luxurious goods. So luxurious
product market will not be affected and in fact to maintain
the lifestyle those affluent will spend more for it. Luxury
car makers are pouring in to woo the nouveau riche (Audi,
BMW are the most recent entrants).
According to recent research on luxury trends, the number of
families with annual incomes of more than $230,000 will have
more than doubled from 20,000 in 2002 to 53,000 by the end
of 2005 and will grow to 140,000 by 2010.
9. M&A & Marketing Consultants
As in the current business slow down survival will be the
main focus, the marketing and management consultants will be
called for to reduce the costs and to show the ways to
survive and stay in market. Others may join hands to fight
with this situation together will call for the Marketing &
M&A consultants. In a booming market there are growth
strategies and M&A opportunities to advise on. When
businesses are cutting back, consultancies will be right
there to help clients decide where to wield the axe.
According to Ministry of Commerce and Industry’s estimation,
the current size of consulting industry in India is about
Rs.10000/- crores including exports and is expected to grow
further at a CAGR of aprox. 25% in next few years
10. Media and Entertainment
In current bad times, where people are losing jobs and
getting enough time to watch TV, they will seek
entertainment at home and hence advertising revenues will
increase for the commercial channels. Also businesses like
production of religious texts and religious materials,
religious channels will do well. The TRP of religious
channels will increase compare to the other
According to a report published by the Federation of Indian
Chambers of Commerce and Industry (FICCI), the Indian M&E
industry is expected to grow at a compound annual growth
rate (CAGR) of 18 per cent to reach US$ 23.81 billion by
2012. According to the PWC report, the television industry
was worth US$ 5. 48 billion in 2007, recording a growth of
18 per cent over 2006. It is further likely to grow by 22
per cent over the next five years and be worth US$ 12. 34
billion by 2012.
Azaz Motiwala, founder and
IKON Marketing Consultants, is a
highly experienced and professional
consultant that Means Business to your Business. He is
one of the few marketing strategy consultants that
specialized in developing and implementing results-oriented
marketing strategies and plans for SMEs and Corporate
"The first duty of a marketing strategy and plan
is to fit the size of the business. We need to
be cost effective from Day 1."
"IKON has the ability to look at a business and
create the right pitch, brand and marketing
separates you from the competing noise in the
|-Chemical Company from India
is highly professional marketing consultancy
company believes in timely delivery of the
committed results. "
- Textile Company from China