emerging opportunities in india october 25, 2012 export development canada
TRANSCRIPT
Emerging Opportunities in India
October 25, 2012
Export Development Canada
Outline
Quebec based exporters doing business in India
Opportunities, challenges & key industry events in the following sectors:
Infrastructure
Aerospace
Defense and Security
Environment & Renewables
Agriculture & Agri-food
Life Sciences
EDC’s solutions
Strategic relationships, partners and contact information
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Engagement with Quebec based exporters (India)
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Business Volumes (in CAD mln)
Infrastructure
India’s 12th Five year Plan envisages spending of USD 1trln on Infrastructure.
Private Sector is expected to contribute at least 50% or USD 500bln of target Infrastructure investment.
The Delhi-Mumbai Industrial Corridor Project is a USD 10bln project covering six provinces spanning a length of 2700km.
Demand increasing for pre-fabricated, low cost and quicker construction technologies.
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Opportunities (Infrastructure)
A fast growing real estate market offers opportunity for supply of quick build and green construction technologies.
Several provinces are in the process of expanding their suburban transport systems creating opportunities for intelligent transportation systems and tolling technology.
New and modernization of existing ports is fueling opportunities for port operations management, cargo handling systems.
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Challenges (Infrastructure)
Price sensitive market with relatively lower value given to EPCM services.
Time consuming process of infrastructure implementation from conceptualization to completion.
Indian project developers look for low cost and functional solutions.
Relatively low brand awareness of the capabilities of Canadian companies.
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Key Industry events (Infrastructure)
FICCI – India Infrastructure Summit – Sep (annual event) hosted in Delhi.
Confederation of real estate developers association of India – NATCON – Feb (annual event) hosted in Delhi.
ASSOCHAM
Consulting Engineers association of India – International Seminar on Transport Infrastructure@2025 – Dec (annual event) – New Delhi.
Build India – Sep (annual event) – New Delhi
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Aerospace
India is expected to be among top five global aerospace markets by 2025.
Policy impetus expected to promote India as a global base for manufacturing aerospace components for the domestic and regional market.
Domestic aerospace industry faces challenge in scaling and moving up the aerospace value chain.
Opportunities (Aerospace)
Fixed and rotary wing aircrafts
Aircraft structures and components
Avionics and electronics
Machining, materials and plastics
MRO (maintenance, repair & overhaul) services
Simulation and training
Challenges - (Aerospace)
Traditionally aerospace sector has been dominated by State owned enterprises (who largely cater to the defense establishment)
Low awareness of Canadian capabilities in the aerospace sector
Procurement dominated by imports (subject to price fluctuation)
Domestic aviation sector continues to be tightly regulated
Key Industry events - (Aerospace)
MRO India 2012: Quebec is the partner in this year’s event.
Aero India – Bi-annual event that is attended by leading local players such as HAL, NAL, TATA Group, Mahindra Group etc.
India Aviation Show – Bi-annual event that similar to Aero India sees significant participation from India and overseas.
Defense & Security
India continues to face defense and security challenges (internal and external)
Is actively looking for new and innovative technology to augment its aging equipment.
Defense offset clauses essential part of any long term engagement with the armed forces.
Opportunities (Defense & Security)
Indian homeland security estimated to be approx USD 10bln by 2016.
Increasing demand for biometric access systems, surveillance (land and airborne) systems, explosive detection, paramilitary training.
Major business groups such as TATA , Larsen & Toubro, Reliance, Punj Lloyd are open to engage with overseas companies for manufacturing tie-ups (defense off set requirement).
Challenges (Defense & Security)
Highly competitive market with legacy of past and continuing purchase from USA, European Union countries and Russia.
Long and time consuming process of bidding, evaluations and trials.
Focused and continuing engagement pre-requisite to doing business with the armed and paramilitary forces.
Key Industry events (Defense & Security)
IFSEC Homeland Security Show, N Delhi – Annual event hosted in Nov each year. Attendees include private sector players and paramilitary forces.
Environment & Renewables
Energy demand-Supply gap presently over 10% and expected to increase over the next decade.
Increasing burden of imports of fossil fuels to meet energy requirements.
Ambitious targets of rural electrification require greater investment in grid connected generation capacity
10 year National Action Plan for Climate Change is looking for 20% reduction in emission from fossil fuels.
Opportunities (Environment & Renewables)
National Solar Mission envisages Solar installed capacity of 20GW by 2022. Present installed capacity has exceeded 1GW.
Developers looking for Solar PV and CSP technology.
Untapped potential of approx 65GW in Wind Energy in the country.
Opportunities in water and waste treatment include projects on EPC , BOT and BOOT basis.
Challenges (Environment & Renewables)
Price sensitive market
Lack of adequate power transmission/distribution transmission infrastructure and delays in land acquisition.
Off-grid projects find it difficult to secure long tenor financing.
Dedicated team required to tap into potential/existing developers (long gestation period)
Major events (Environment & Renewables)
Delhi International Renewable Energy Conference (DIREC) – annual event focused on renewable energy sector (well attended by developers and technology providers).
International Wind Conference – Annual event organised in Apr – May in Chennai.
Intersolar – annual event focused on the solar industry (Mumbai).
Agriculture & Agri Food
India is among the top five importers of edible oils in the world.
India is the largest importer, producer and consumer of peas and pulses.
India is the largest producer of milk in the world.
India has a relatively poor infrastructure for storing food grains (needs new and adequate food grain storage systems)
Opportunities (Agriculture & Agri Food)
Imports continue to remain steady and with a greater part of the population rising up the nutrition value chain, the demand for quality lentils and pulses will continue to grow.
Opportunity for exporters of premium edible oils such as Canola oil.
Continuous improvement in life stock genetics gives the opportunity for animal genetics.
Growing demand for premium fish, mollusks and crustaceans.
Challenges (Agriculture & Agri Food)
Market access and lack of clarity/transparency in the import process.
Lack of awareness/branding of Canadian products (pulses, oil, processed foods)
Limited opportunity in organised retail (regulations are being relaxed)
European countries have a well established presence in the market.
Key Industry events - (Agriculture & Agri Food)
Annapoorna – Annual event held in Mumbai. Has witnessed participation from Canadian exporters in the past.
Agrotech 2012 – Scheduled for Dec in the city of Chandigarh. Focused on farm machinery and technology.
Global Pulse Conclave – Jan 2013 in Mumbai.
AAHAR – Annual event held in New Delhi. The event in 2013 will witness a Canada pavilion showcasing the best that Canada has to offer.
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Life Sciences
Medical devices and imaging market continues to grow at a compound annual growth rate of 20% in India.
Growing market for nutraceuticals and specialised drugs.
Diagnostic market is witnessing an explosion with a few diagnostic chains and largely being limited to private labs.
IT in Healthcare is growing at a CAGR of 22% and expected to continue to grow.
Opportunities (Life Sciences)
High end medical devices and imaging equipment are imported (constitute 2/3 of market).
Increasing urbanisation and disposable income is leading to increase in demand for functional foods and dietary supplements.
Low cost diagnostic kits and vaccines are in demand.
Challenges (Life Sciences)
The Indian Patent laws do not recognise product patent thereby acting as a deterrent for foreign players to launch their products in the market.
There is no body that has regulation/oversight on the medical devices market. This enables sub-standard devices to be sold.
Price sensitive market.
Key Industry events (Life Sciences)
CPHI India – annual event organised in Bengaluru in November. Is the key event for Pharma Industry.
Bangalore Nano – event focused on nanotechnologies. Annual event organised in December in Bengaluru.
Medical Fair India – annual event organised in March in New Delhi.
Bio-Asia – annual event organised in January in Hyderabad.
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About Export Development Canada (EDC)
Canada’s Export Credit Agency
Crown corporation wholly owned by Government of Canada
Financially self-sustaining
Operates on commercial principles
Conducts its activities in a socially responsible manner
EDC’s Role
To support and develop Canada’s export trade and Canadian capacity to engage in that trade and to respond to international business opportunities
Financing and insurance solutions for exporters and investors
EDC’s Major Products
Foreign Buyer Financing
Canadian Direct Investment Abroad (Outbound FDI)
Domestic Financing (for Canadian exporters)
Inbound Foreign Direct Investment (Inbound FDI)
Accounts Receivable Insurance
Contract Insurance and Bonding
Political Risk Insurance
Equity Investments
“Complete Suite of Financing Solutions for Integrative-Trade”
Financing
Strategic Relationships
Reliance Industries
ICICI Bank
Larsen & Toubro
Tata Group
GMR Group
Bharti Airtel
Extractive• Tata Steel Limited • Reliance Industries Limited • Reliance Industries Limited • Reliance Industries Limited
Information, Communications & Telecom• GTL Limited • Tata Communications (Netherlands) B.V.• Vodafone Essar Limited • Vodafone Essar Limited • Bharti Airtel International (Netherlands) B.V.
Infrastructure & Environment• Tata Power International Holdings Limited • Kotak Private Equity Group • SREI Infrastructure Development Finance Limited• Reliance Infrastructure Limited (formerly Reliance Energy Ltd) • SREI Infrastructure Development Finance Limited• Larsen and Toubro Limited • IDFC India Infrastructure Fund • Avigo SME Fund II • Larsen and Toubro Limited
Transportation Sector• Ashok Leyland Limited
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Vijendra GairolaChief Representative
Mumbai
Stanley Santmayor Regional Manager
Mumbai
Vibhav AgarwalRegional Manager
New Delhi
Leena SubramanianCoordinator-South AsiaNew Delhi
Simonil BamjiCoordinator Mumbai
Partners
Department of Foreign Affairs and International Trade:
Mr. Anuj Bhasin ([email protected]) – Infrastructure
Mr. Prashanth Nair ([email protected]) – ICT
Mr. Viney Gupta ([email protected]) – Wood products/defense/aerospace
Dr. Saroj Mishra ([email protected]) – Energy & renewables
Mr. Saibal Ghosh ([email protected]) – Oil & Gas/life Sciences/mining
Ms. Kathleen Donohue ([email protected]) – agriculture & agri foods.
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Partners continued….
Export Quebec (co-located in the Canadian Consulate in Mumbai):
Benoit-Jean Bernard (Consul & Director – Quebec Office – Mumbai)
+91-22-67494483
Cell no: +91-9967630353
Pranav Doshi (Trade & Public affairs advisor)
+91-22-67494485
Cell no: +91-9967630355
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Export Development Canada (EDC)
To learn more about how EDC insurance, bonding or financing
solutions can help, please contact us at 1-888-235-6148 or visit
our website at www.edc.ca
Vibhav Agarwal – (Regional Manager - New Delhi, India)
Phone: (011) 91-11-4178 2288
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Thank You!
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