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S.No. 1 2 3 4 5 6 7 8 9 10 Topic Recording Industry Wine, beer and liquor retailing Watch industry Poultry industry Computer software industry Cell phone industry Exercise and fitness industry Newspaper industry Camera-film and film developing industry Dry-cleaning industry Page No. 1 3 5 7 9 11 13 14 15 15
the General Manager of Business Development for Moser Baer India Limited is struggling to keep the company his father founded and his reputation intact. It is unable to service its massive domestic debt. .RECORDED MUSIC INDUSTRY (DVDS. The company is also the first to market next-generation of storage formats like Blu-Ray discs and HD-DVD in India. Every 5th disc manufactured globally belongs to Moser Baer and it is the lowest cost optical media manufacturer in the world. the company is one of the world's largest manufacturers of Optical Storage media like CDs and DVDs. CDS. TAPES) - Moser Baer Moser Baer India Limited headquartered in New Delhi. Trouble began somewhere in 2004-05. And its debt is a towering Rs 3. Moser’s cash flow is about Rs 241 crore.267 crore as of March 2011. The price of a CD fell from about $1. Moser Baer was still growing in volumes but the profit on each CD started declining. Its market capitalization is merely 5 percent of what it was five years ago. Ratul Puri. But over the years its sales have stagnated and its cash reserves are totally depleted. Established in 1983.20 to about 20 cents in just three years. is a leading global tech-manufacturing company.
The insufficient cash flows of the business are not supporting its domestic debt as well as its foreign debt. World is moving towards flash memory and cloud storage. CDs.The business of selling movie CDs and DVDs which Moser Baer had entered with a lot of fanfare is almost finished. tapes) is in the stagnant/declining stage. Therefore. it can be said that the Recorded music industry (DVDs. Moser Baer‘s business of Blank Optical storage (manufacturing CD/DVD/Blu-Ray) is in operation but it is saddled with huge unutilized capacities. There are no large growth drivers in optical media. .
the Dindori Reserve Shiraz. Barely 1500 case production.the barrique aged Rasa introduced in 2010. Maharashtra has been gaining ground steadily during the last 5 years. Sula Sula has not looked back since starting the business in 1999. Finishing 2011-12 at about 460. as well as India's first dessert wine. After setting celebrations alight across the world in over 38 countries these fine sparkling wines are now in India becoming both the reason and the means for an unprecedented celebration. Over the years. does not mince words in saying they plan to grow systematically and take Sula head-on within this decade and plans to take the Indian wine industry to new heights. covering a wide range of the price spectrum. Zinfandel in 2001 and Riesling in 2008. calling it Port 1000 that costs only Rs. and enter the wine business. to suit every occasion.30). Targeting the annual growth of 30%. 126 ($2. The company currently has a capacity of 8 million bottles per annum. it is made from grapes selected from their best parcels. reaching the number two spot in the premium wine segment with sales of 60-65. Bouvet-Ladubay. Complemented by some of the finest still wines. Their top-level Shiraz. With a rich heritage of more than a century and a half and unmatchable expertise in making sparkling wine using ‗methode traditionelle‘. it launched its first reserve wine. with further scope for expansion when required. with 93 of them being Gold Medals. Brand and also garner the export market by participating in Shows and tastings.000 cases last year. USL‘s Wine Business in India operates through two companies – United Vintners Limited and Four Season‘s Wines Limited. Sula has pioneered many classic grape varietals in India like Sauvignon and Chenin Blanc in 2000.1150 (€18). AND LIQUOR RETAILING Four Seasons Wines Limited Starting in June 2006. They also produce the low end wine from indigenous grape fermentation. In 2005. Bouvet-Ladubay has set standards that have won it more than three hundred awards in the last three decades alone. This winery in Baramati. the company is working constantly to improve the quality. Even during the recession they maintained growth even if at lower rate. the Late Harvest . Abhay Kewadkar.000 cases (9-liters) they control over 35% of the total market and continue to lead with a national presence.WINE. sells for Rs. Bouvet-Ladubay‘s wine repertoire offers Indian wine lovers an exquisite range to choose from. the UB Group made headlines by being the first Indian company to acquire a premium French winery. BEER. the business head and chief winemaker and one of the oldest hats in the industry.
currently there are less than 2 million. Nagpur and Pune too. While India doesn‘t have the most ideal climate for growing wine grapes. Although wine education is crucial. A shake out of industry is expected with several smaller wineries unable to market their products.proper storage for distributors and customers is still a challenge. and liquor retail industry in India is an emerging industry. aided not only by passion-driven producers but also the favourable consumer trends. The government is becoming more progressive in allowing retail sales and licensing concessions for sale of wines on trade and off-trade. The response from the tier-2 and tier-3 cities is very encouraging. The industry is still an infant but growing steadily. India has been traditionally a liquor guzzling country with over 400 million cases consumed annually. But as the younger population achieves adulthood. About 300 million belong to the middle class with 30 million as potential wine drinkers. increase in population of the middle class. besides foreign wines and spirits. the situation is changing for the better. Sula is targeting 630. Brand building is becoming the key factor for growth and even sustenance.13 billion with over half under 35 years. with wine clubs opening in smaller cities like Ludhiana. viticulture and even equity. A population of 1. offers a huge opportunity for wine producers. the producers are optimistic about the future and more are entering the arena with collaboration in technology.000 cases of domestic wines in 2012-13. forced to shut down but the next decade will see India as a wine producing country to reckon with. is growing at a rate that more established countries can only envy. equipment. Even the relatively new beverage beer has created 160 million-case market because of lower prices and the penchant of youth. its local industry which is still at a nascent stage. it is expected to also add wine as a choice.Chenin Blanc-all with the help of Kerry Damskey from Sonoma. . Around 90 wineries are registered as compared with less than 10 barely a decade ago. Despite complex tax structure and no government subsidies like in EU. The wine. beer. who has been Sula‘s consultant winemaker since beginning. higher disposable income.
The organized sector of the watch market alone contributes up to 40% of this figure. Chrono Watch Company will be introducing and officially launching 45 international watch brands in India. driven by youth and premium segment of consumers.000 crore growing at 15 per cent every year. while others prefer quartz watches. Customers usually base their preferences and buying decisions on a variety of factors like price. and the rest of the demand is being met by the unorganised grey sector. More than 80 percent of the population is below 45 years of age. France and USA. India. Some customers look out for features like fashion appeal. 5. The average growth in the size of the market is slated to be around 15-20 percent per year. 5. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has projected the market size of Indian watch industry which is currently estimated at Rs. durability. Indian consumer has more awareness of various brands available globally and willing to purchase in India.000 is growing at an exponential rate of over 25%.5 crores watches are manufactured in a year.000 crore will be worth Rs.000 to Rs. Italy. technology. The highest share of watches retailed is around the price range from Rs. The second category of watches retailed in the price bracket of Rs.000/-. utility. There is enormous potential for growth of the industry in this untapped segment.000 crore by 2020 due to emergence of strong middle class and a large number of high net worth individuals. 25. Germany. Many customers prefer mechanical and automatic watches. Overall 4. 15.to Rs. sophistication and status. children‘s watches and gent‘s watches. Chrono Watch Company was incorporated in June 2012 and will commence commercial operations in January 2013. Indian watch market is set to more than double in the next five to seven years to around Rs 15. With more international brands foraying in . retailing and e-tailing company headquartered in Bangalore. Our featured watch brands are mostly from Switzerland. This is the first time any watch distributor has launched such a wide array of premium quality international brands at the same time in any country.WATCH INDUSTRY Chrono Watch Company is a new ‗affordable to accessible luxury‘ watch distribution.5. Newer segments are also on rise such as ladies watches. aesthetic appeal and brand name. economy and precision. Due to increased international travel. A combination of all these points ultimately forms the customer‘s buying decision that translates into the purchase of a watch. 500/. Others go for durability. which are currently not available in the country.
Esprit. Triumph. Rolex. Timex India. Chopard. Follie Follie amongst others. Movado. the organized players that include domestic firms such as Titan.Indian market to cater to the growing demand of fashion and luxury watch consumers. and a host of international brands and companies such as LVMH. Jaeger. which consists of smuggled watches. Cartier. Beverley Hills Polo. Romanson. Titoni. Maxima and HMT. Raymond Weil. cheap imported watches and those assembled by small unorganised players. Vacheron Constantin. Tissot has emerged as the largest selling Swiss brand in India. India's watch retail industry is maturing to world-class standards and offering real joy to Indian consumers. Maurice Lacroix. The watch industry in India is in the stage of rapid growth. The industry has been witnessing a growth of 8-10 per cent from past few years. With the growing infrastructure in tier II and tier III cities.000 per watch. Male watch buyers far outnumber females and account for around 65% of sales. right planning and joint ventures in marketing hold the key to success for both domestic and International watch manufacturers. . Breitling. Collaborations. Ebel. the Swatch Group. Carerra. In terms of volumes. It is estimated that Tissot's volume sales during 2010 in India crossed 50. the organised players currently command 40 per cent of the industry and the rest 60 per cent by the unorganised segment. it has also created some challenges for local manufacturers. Gucci. adds the paper. brands with significant presence in the Indian metros now plan to woo customers through retail tie ups in these cities. It is expected to grow at 12-15 per cent in next few years. India is all set to become a $2 billion market over the next three years. However. In volume terms. At 25 per cent growth per annum. Van Cleef & Arpels. Chanel.000 watches with average retail price recovery of Rs 15. Bovet. Seiko. Montblanc. However local players still continue to dominate the Indian watch industry due to good manufacturing base and price points at which watches are retailed. Bucherer. mentioned the paper. Panerai.LeCoultre. Chanel and others. Students are the largest segment of buyers accounting for approximately 30% of the sales. Tag Heuer and Raymond Weil also became very popular. Corum. Dunhill. Giordano. Amongst the Swiss and other brands like Piaget. Baume & Mercier.
000 crore poultry industry. touched revenues of more than Rs 4. Suguna Anytime processed chicken and four varieties of specialty Suguna value added eggs. the poultry meat business comprises more than 65% of the Rs 50. Suguna has set up a chain of modern retail outlets. Today. Along the way. the company‘s brand Suguna Chicken is a household name in India. working with 18. Suguna‘s pioneering efforts in contract farming helped create thousands of rural entrepreneurs who share the growth successfully. The local poultry industry was valued at Rs 450 crore. 1 broiler producer. "Poultry Integration" introduced and pioneered by Suguna in the country has energized the livelihoods of farmers in rural India.200 crore. Suguna ranks among the top ten poultry companies worldwide. Alongside. . Last fiscal. The fully integrated operations cover broiler and layer farming. processing plants. Suguna has gone from strength to strength and has become a Rs. especially chicken. value added eggs and frozen chicken. vaccines and exports. their business model clicked perfectly at a time when Indians had started consuming more and more meat. integrated poultry production and contract farming have lowered the cost of production of chicken.000 contract farmers. Suguna Home Bites. Suguna Home Bites being the latest in its product range is a new category of home meal replacements (HMR). and a few of them are growing faster than the industry growth of 12-13% per annum. Suguna is the undisputed leader in poultry products. This is an atypical rags-to-riches story of entrepreneurs making the most of an opportunity to hitch a ride to big gains. With itsSuguna Daily Fressh outlets. With operations in 11 states across India. hatcheries.POULTRY INDUSTRY Suguna Foods (Formerly Suguna Poultry Farm Limited) Over a period of 25 years. it offers a range of poultry products and services. More players have entered the segment. In fact. With the intent to provide consumers with fresh. feed mills. Suguna markets live broiler chicken. 4200 crore company that makes it India‘s No. quick urbanisation and the expansion of the Great Indian Middle Class are a few key drivers of the stunning growth in chicken business. Suguna Poultry. clean and hygienic packed chicken. Rising disposable incomes.
The poultry industry in India is in the rapid growth phase. The segment is expected to grow at 12-13% annually. India's chicken consumption has risen to more than 3 kg per head a year from less than 1 kg a decade earlier. signaling further growth. . The chicken consumption is likely to double over the next five years.
For FY12. Indian IT Industry is considered as a pioneer in software development and a favorite destination for IT-enabled services. IT industry revenues are set to grow at 16% but the number of people added is likely to grow only by 10%. the industry has already made about 100.000 jobs offers on campus. Burroughs asked its India sales agent. Businesses across the globe started cutting on discretionary IT budgets. Software experiments.SOFTWARE INDUSTRY Indian Information Technology industry is one of the fastest growing industries in the country. network services and IT Solutions.S. The Indian IT Industry comprises of software industry and information technology enabled services (ITES). this was . According to the analysis done by the annual report 2009-10. the IT-BPO industry was expected to achieve a revenue aggregate of US$ 73. The report even predicts that the Indian IT-BPO revenues may reach US$ 225 billion in 2020. indicating that the shift towards non-linearity in revenues is beginning to happen. prepared by the Department of Information Technology (DIT). client IT Industry in the country has played a major role in placing India on the international map.4 billion in 2008-09. The industry is estimated to close fiscal 2012 with an addition of around 230. The Indian software industry continues to add jobs at a fast clip despite the threat of a slowdown. Custom Application Development and Maintenance (CADM). when the mainframe manufacturer. The IT industry has built very valuable brand equity for itself in the global markets. the origin of IT industry in India can be traced. Woes in global IT spending continued to persist in FY12 given the dire economic situation in the US and Europe. which even includes business process outsourcing (BPO) industry. In the year 1974. The Indian IT Industry mainly comprises of instance System Integration. But revenues are growing faster than people added.000 jobs.1 billion in 2009-10 as compared to US$ 69. says the industry body. growing at a rate of over 5 %. For the coming fiscal.. Tata Consultancy Services (TCS) to export programmers for installing system software for a U.
IT services. Domestic IT-ITES market increased revenues from Rs 886 bn in FY2008 to Rs 1. In terms of total export and domestic revenues. • Increasing competition. Application Development and Maintenance(ADM)still continues to be the bread and butter for Indian IT companies. contributing to roughly 60% of their total revenues.534 bn to Rs 4639 bn. product development. Indian IT industry. Going forward. pressure on billing rates and increasing commoditization of lower-end ADM services are among the key reasons forcing the Indian software industry to make a fast move up the software value chain by providing higher value-added services like consulting. R&D. However. with Software and Services contributing to 60% of domestic revenue and Hardware contributing to the balance 40%. the advantage of low employee costs could peter out and the sector could get commoditised. Software Products. cost and execution efficiencies and between FY2008 and FY2012. • Labour arbitrage has been the competitive edge of the Indian software sector over the last few years. • With the Indian government emphasizing on better technology enabled delivery mechanisms for a multitude of government projects like e-passport. ITES/BPO (IT-enabled services/Business Process Outsourcing) and Hardware. Export revenues primarily on project based IT Services continue to drive growth with IT Services accounting for 59% of total revenues followed by BPO and Engineering services at 22% and Software Products at 19%. the industry grew from Rs 2.particularly true for the Banking. mobile. managed to weather the storm to some extent on the back of superior quality.475 bn in FY2012 registering a CAGR of 14%. cloud computing and end-to-end turnkey solutions. Multi-year annuity based outsourcing agreements are expected to increase going forward. • India‘s IT industry can be divided into five main components. .. registering a CAGR of 16%. however. Financial Services and Insurance companies. etc. Engineering and R&D services. this seems to be threatened now by MNCs‘ who are replicating the Indian outsourcing model and setting up bases in the country. the domestic market connected with software services looks equally promising. Therefore it can be said that the software industry in india is in Rapid Growing Phase . viz. Unique Identification Scheme.
Smartphones are available in all price segments. Lava and Spice are faced with the challenge to enhance their portfolio of products.500 to INR 27. international players like Nokia and RIM.2 million units during JanuaryMarch 2012. making these products accessible to every strata of the population.3% share respectively. models and services. with a 5″ screen is categorized under the category of media tablets / tablet PCs. Samsung launched seven new smartphone models in India. the needs of users are clearly seen to be converging around two major form factors – high-power. stated Anirban Banerjee. content-enabled featurephones.3% of shipments but added up to as much as 23. Samsung successfully managed to increase sales of smartphones with its wide variety of models. This was reported in the CyberMedia Research India Monthly Mobile Handsets Market Review for 1Q 2012 released today. quick time-to-market and a segmented approach”. CMR Telecoms Practice. India being a youth-centric country saw a surge in Android smartphone ownership.4% of the market value in 1Q 2012. to stay relevant and profitable in the long run”. Smartphones saw exponential growth in 2011. further tightening its grip on sales in different price bands between INR 7. as well as relatively new entrants like Micromax. 3 by Nokia with 25. large. India Smartphones Market: The Shape of Things to Come Total India smartphone sales touched 2. Karbonn. which accounts for just 5. added Naveen Mishra. This further increased with the success of smartphones. Lead Analyst.4% share. followed at No. Associate Vice President. It excludes products like the Samsung Galaxy Note. Other companies maintained a higher price for their smartphones In 1Q 2012. Samsung emerged as the leader in the smartphone segment with a 40. Currently. CyberMedia Research. high-speed smartphones vis-à-vis value-plus. Research and Advisory Services. Samsung and others have been able to maintain a strong presence across the spectrum.000. This is the range in which the company sells its portfolio of smartphones currently. Indian mobile handset vendors have also started aggressively widening their Android-based smartphones portfolio.5% and RIM with 12. While most players are strong in a particular category. driven mainly by innovation.CELL PHONE INDUSTRY PROSPECTS The overall India mobile handsets market registered sales of 50.7 million units during January-March 2012. which. India already has high penetration of mobile phones. “As the India mobile handsets market grows in maturity. “Players like Motorola and Sony have clearly chosen to stay in the „high value‟ smartphones segment. 2 and No. .
the market for both 3G-enabled devices and mobile broadband-driven content is likely to see an upward trend in adoption in the forthcoming quarters Therefore it can be determined that the cell phone industry in india is in Stagnant / Decline stage .India 3G Phones Market: Decline in Data Tariffs to Trigger Increase in Shipments? “With the recently announced reduction in tariffs of 3G services by as much as 70% by leading India telecom service providers. .
Exercise and Fitness Industry : Indian Fitness & Slimming Industry constitutes about 8% of the wellness market. . We would not be surprised if the industry outperforms our ballpark figure. The averages annual spend on health and fitness by individuals is approximately Rs 2. Significant changes in lifestyle related to lack of physical activity and increased consumption of fast food among both affluent and working class population has led to greater need for healthy lifestyles.4 Billion by 2015. Trends in the Industry • Franchising • Beyond Tier I • Burgeoning Investments • Innovative formats • Training Trends The Indian Fitness & Slimming Industry is set to ride high with all levers in place. the fitness industry is in its nascent stages. Growing disposable income of the people coupled with rising awareness of a healthy body augur well for the Industry.78 billion is stated to grow at a CAGR of 25% to reach USD 2. The industry is fairly fragmented since the majority of the market appears to be dominated by a large number of mom-and-pop gyms. Emerging fitness growth HEALTH AND fitness market in India is estimated at around Rs 2. It is growing at a compounded annual growth rate of 15 per cent up market club in this category have a penetration of a mere 0.600. Presently.900 crore. Indian fitness & slimming industry currently pegged at USD 0. Organized fitness services account for merely 25% of the overall fitness industry.1 per cent.
Revenue has plunged while competition from internet media has squeezed older print publishers. increased literacy. although the outcome of such partnerships has been criticized. Many newspapers around the world launched online editions in an attempt to follow or stay ahead of their audience. mostly because advertising has slid so far. and as onceexplosive growth in newspaper web revenues has leveled off." said the Paris-based global newspaper organization of the proposed pact. or whether new technology has rendered newspapers obsolete in their traditional format. One issue is whether the newspaper industry is being hit by a cyclical trough and will recover. By the late 1990s. newspapers are considering combining and other options. At its annual convention slated for May. This is changing. However. Advertising. resulting in a general decline in profits. "Perhaps never in the history of newspaper publishing has a single. has historically contributed around 80% of American newspapers‘ revenues. Newspaper bosses say they are moving their papers to a model where they get half their revenues from advertising and half from circulation. the growing middle class and other factors have more than compensated for the emergence of electronic media and newspapers continue to grow. The debate has become more urgent lately. the World Association of Newspapers has titled the convention's subject "Newspapers Focus on Print & Advertising Revenues in Difficult Times. forestalling what the industry hoped would become an important source of revenue. where the industry has shed a fifth of its journalists since 2001. compared with only 29% in 2001. slumping ad sales. for instance." In September 2008. cheaper printing and distribution. The WAN painted a stark picture of the threat posed to newspapers by the search engine giants. the availability of news via 24-hour television channels and then the Internet posed an ongoing challenge to the business model of most newspapers in developed countries. the loss of much classified advertising and precipitous drops in circulation. the World Association of Newspapers called for regulators to block a proposed Google–Yahoo advertising partnership. in the rest of the world. 2009. The future of newspapers has been widely debated as the industry has faced down soaring newsprint prices. To survive. which is high-margin. or even English-speaking markets. commercial entity threatened to exert this much control over the destiny of the press. as a deepening recession has cut profits. Paid circulation has declined. Spain. Newspapers in Switzerland and the Netherlands.NEWSPAPER INDUSTRY: But it has also become clear that digital advertising dollars will never offset what newspapers are losing in print advertising—which is why papers want to be less dependent on ad revenue. while advertising revenue — which makes up the bulk of most newspapers‘ income — has been shifting from print to the new media. calling it a threat to newspaper industry revenues worldwide. In recent years the number of newspapers slated for closure. In the third quarter the New York Times earned more than 55% of its revenues from circulation. have lost half of their classified advertising to the internet. bankruptcy or severe cutbacks has risen—especially in the United States. The challenges facing the industry are not limited to the United States. . far more than in most other countries. in Barcelona.
It is Growing industry. ―Infrastructure is progressing steadily but services still lag behind international standards and laundry is perhaps lowest on the list.and five-star hotels have their own OPLs using modern equipment from American and European suppliers. as well as a number of on-premise laundries (OPLs) in the pharmaceutical industry and an embassy. although many believe that they will eventually become more common.‖ comments YS Wang from Jensen.3% growth in trade.Scope has increased.‖ says Bernard Jomard from Danube. that includes a staggering figure of 1288 feature films. creating competition for the hotel valet service. . A growing middle class is driving growth in restaurants and hotels.2% growth in construction. He explains that hotels are now targeting the middle class customer and most of the time they will set up a valet laundry in the hotel as well as the OPL?for the hotel linen. ―The middle class is willing to spend more money to send their laundry out. DRY CLEANING INDUSTRY The Indian economy has experienced huge growth in the past decade. better quality industry but big changes are needed. India is a land of both frustration and opportunity.CAMERA FILM AND FILM-DEVELOPING INDUSTRY: India is the largest producer of films in the world.‖ Most four. transport and communication and 8. at the same time. poor infrastructure is inhibiting the establishment of central laundry and other services. Indian film industry is multilingual and the largest in the world in terms of ticket sales and number of films produced and 2nd largest in terms of revenue. The industry is supported mainly by a vast filmgoing Indian public. Central services rare High-quality central laundry services are still rare in India.Lot of Indian producers are producing Foreign Films . and Indian films have been gaining increasing popularity in the rest of the world—notably in countries with large numbers of expatriate Indians.8% in the first three months of 2011. Many deal not just with their own hotel linen but also offer laundry and drycleaning services to the local population. automatic folding machines and stacking machines. That is why international hotels need their own OPL operations.4%. it is one of the world‘s fastest growing economies. the country‘s GDP grew by 9. flatwork ironers. In the last quarter of 2010. The first quarter of 2011 saw a 9. hotels. ―The lifting of trading quotas and India‘s increasing popularity as a top-class business and tourist destination are bringing the right conditions for laundry to turn into a more profitable. India produced a total of 2961 films on celluloid. but there is still a long way to go before that happens. slowing to 7. However. With an average annual growth rate of 7% since 1997. whose main sales in India are automatic feeders. according to data issued by India‘s Central Statistics Office. In 2009. accompanied by increasing expectations of improved quality and service. which supplies several five-star hotels in the country. For suppliers of goods and services to the textile care industry.
However. If the market is to develop. international textile service group. India or other parts of Asia. modern laundry equipment is largely restricted to the larger hotels and hospitals. He believes that there is a great opportunity for the market to develop further to improve the standard of laundry in the country. Lindström. It has since expanded its operations to New Delhi and Hyderabad. there is little to no pressure from the government for laundries – or drycleaning services – to meet environmental standards. ―The laundry industry could be another field for development.‖ Jomard explains. as the country‘s middle class – and its expectations for higher quality – continues to grow. entered the Indian market in 2007.‖ says Lindström‘s Mika Hartikainen. Another problem is that while hotels can often claim a tax exemption for equipment imported from overseas. dhobis. . wash and dry it at the local river and then finish it with coal or electric irons.‖ The lack of central laundry services means there is currently little demand for heavy-duty products in India.‖ Kannegiesser‘s best seller in India is its DC50 dryer which is suited to the OPLs as it provides them with ―more volume in less space‖. the cost of water and energy has driven many of the higher quality hotels to acquire machines that are more efficient and environmentally friendly. However. while smaller hotels and laundries tend to use less expensive machines sourced from China. There is a huge development deficit in tier-II and tier-III cities which are trying to match the modern urban lifestyle. Poor transport infrastructure inhibits the provision of laundry services across long distances. the Finland-based. he adds: ―Local investors are slow to invest in modern automated equipment. one company is making some headway into industrial laundry services in the country. laundry has been done by a particular service class. this may change.‖ Viewed as low value One of the problems inhibiting the development of centralised laundry services is that laundry continues to have a low value.Wang believes that central laundries could work – but only if they are set up for hotels that are located close together. providing workwear services to local businesses in Chennai and Mumbai. ―Traditionally. However. a centralised laundry service would have to pay tax on imported equipment as it would be regarded as directly generating revenue for a private business. which used to collect personal and institutional linen. ―We provide customers with services where we bear the responsibility for the condition and sufficiency of the workwear. The customers can focus on their own core operations. ―Dhobis still provide the main service in some country areas but in towns their significance is declining and some have switched to using basic drum washers and hydro-extractors. ―If they are not allowed to chase imported equipment.‖ Wang says. they can‘t upgrade. it needs bright investors to come forward. However. ―Our service has been received well in India. However. so it is difficult to be able to charge a high enough price for the service to be able to make the investment in high-tech equipment feasible. This means demand for higher-tech.
and due to it moving from being a regional brand to a national brand. Niccolini says.‖ ―People are looking for good-quality laundry and drycleaning units. In a category which is highly price-sensitive. TRENDS Hand wash detergents accounted for more than half of overall value sales in laundry care in 2011. ―The concept of commercial laundries has developed to some extent in urban areas but it is still not the way it should be. This was largely achieved due to the strong presence of the brand in Uttar Pradesh. often from variable sources. ―They will have 10 – 15 deliveries a day. Another challenge is water quality. ―Hotels have been known to have a staff turnover in the hundreds of per cent. water is delivered in a tanker. To help with hotel staff retention and raise standards. Small drycleaning units As with laundry.High turnover Another challenge for laundries is the high rate of staff turnover. says Ron Pringle from Ecolab India. and has a significant influence on the category. the company added 10 states to its distribution reach.‖ Pringle explains. Ghari still managed to show strong growth as the company strengthened its presence all over India. ―It takes a skilled manager and good support from a chemical supplier such as Ecolab to get the best from the water conditions in India.‖ The majority of machines that Renzacci sells to the Indian market are previous-generation machines. The surprising aspect in all of this is that Ghari is priced higher than Wheel and Nirma.‖ Pringle adds.‖ Pringle says. where iron and hardness can vary from one delivery to another. This education not only improves laundry results but it also helps with staff retention. There is a lot of potential in drycleaning and laundry but there are still many cultural obstacles that need to be removed. Ecolab operates a small training academy where it runs various workshops on all aspects of the laundry operation. This narrowed the difference between the Wheel and Ghari brands to four percentage points in value terms. although it also sells to the textile industry and retail drycleaning and laundry shops. In urban areas there are one or two larger companies (such as White Tiger and Novex in Delhi) but they are still in the minority. ―For the majority of hotels. ―There are retail shops in the big cities but the number is not growing and it is not what it should be. During 2011 the robust performance of the Ghari detergents brand by Rohit Surfactants offered strong competition to the leading brand Wheel. with most sales being to the hotel industry.‖ He says the challenge is washing linen in variable water conditions. while business travellers and tourists tend to favour the in-house facilities offered by hotels. The small units are used by individuals and families. Renzacci‘s Marco Niccolini agrees. In the last three years. This is because unskilled workers change jobs regularly to make more money. This widened the distribution reach of the brand to 19 states. . The majority of businesses are family-run units in which both laundry and drycleaning are carried out.‖ he adds. the drycleaning market continues to operate as it has in the past.‖ says Massimo Sanvito from Pony who believes that what the market needs is for a large company to enter the market on a nationwide basis.
877. This is an industry. And even as global and domestic laundry bigwigs make their presence felt. "Connectivity and brand building is crucial for us to be a success story in India.118 crore & 2. He further added that Wardrobe is growing at around 20% every month. Scented variants in all categories are expected to be introduced to attract consumers. For instance. Rin is available under the premium and economy segments. powders. White Tiger. During recession. As a result of which we have grown by 25-30% every year and in future. PROSPECTS Laundry care is expected to continue to be driven by detergents. pre-post wash. the market size of fabric cleaning which includes detergents." said Rajeev Sekhri. as more and more consumers opt for the convenience and better performance of powders versus bars. vice-president.COMPETITIVE LANDSCAPE Hindustan Unilever was the leading player in laundry care in 2011. unless a national player follows the conventional retail route to expand the category. . he said. The Nielsen Company.587 tonnes respectively. Wheel is its economy detergent. The way markets have developed in the US has not happened in India." Wardrobe.1% year-on-year during the first quarter of April-June. Niche categories are expected to emerge and perform well. According to market research agency. there is still a large unorganized sector waiting to be tapped. we could grow at a modest rate of 22-25%. and Surf is mid-priced. Consumers are also expected to upgrade from economy to mid-priced brands. and from mid-priced to premium brands. due to increasing disposable incomes amongst the middle-classes. "India has a huge unorganized sector which needs to be professionally handled. However. Liquid laundry detergents. "Laundry is a necessary evil. which has been least hit by the downturn and promises a brighter future for the dry cleaning and laundry sector in India. which came to India in 2008 with an initial investment of 150 cr and plans to open 100 high-end fabricare stores by end of this year. organised players are cashing in on this unique opportunity to enter the unorgansied laundry market in a big way. is not expected to substantially increase its share in laundry detergents.12. The company has a strong presence in both automatic detergents and other detergents. India is going to grow in this business and there is a need for organised players to provide world-class services and educate the unorganized sector". holding a 39% value share. on the other hand. The company has introduced various products at different price points to cater to a wider audience. soap cakes is Rs.India being the second fastest growing major economy after China and growing at 6. The shift from bar detergents to powder detergents will continue to take place in the rural and urban markets. consumers can stop buying clothes but they would want to keep their existing garments clean.