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m ANIL KUMAR T G

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m Geographic expansion as a growth strategy
m The adventurous spirit of the younger generation
m Corporate ambition
m Technological advantage
m Building a corporate image
m Incentives and Business impact
m Labour advantage
m New business opportunities
m Emergence of SEZ¶S, EOU¶S, AEZ

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m Earning valuable foreign exhange
m Interdependency of nations
m Trade theories and their impact
m Diplomatic relations
m Core competency of nations
m Investment for Infrastructure
m National Image
m Foreign trade policy and targets
m National tragets
m WTO and International agencies

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Y Low costs per unit area(Price of Land)
Y Orderly growth of firm
Y Cost of gathering raw materials, fabricating and
distribution of finished products is minimum
Y Environmental guidelines, Disposal of waste and
other regulations set by Government
Y Need not be the most favourable location but
where all considerations are optimised.

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m Natural or Climatic conditions

m Availability of raw materials

m Access to market

m Availability of Infrastructural facilities

m Availability of skilled and non-skilled labours and


technically qualified and trained managers.

m Strategic considerations to safety and security

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India is the preferred choice of KPO destination

m The Patent act 1970

m Low charges for research and development as well


as production of drugs
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m èThere are two types of costs in a new facility:
construction costs and operating costs.

m The former set isn¶t a huge issue for companies,


despite regional variations (domestically) of 10-
30% for construction.

m It¶s the operating costs that are the long-term


strategic driver for Pharma facilities.´

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m Three million plus graduates every year and approximately 307
hundred million English speaking middle class by 2011.

m Commitment to quality.
m Intellectual property protection.
m Government support. Rich bio-diversity, Structured legal and
regulatory system.

m Eco system and Industry momentum from $ 11 bn in 2002 to $ 70


bn in 2008 (McKinsey estimates).
m Work ethics and strong manufacturing base.

m Education system and focus on quantitative ability, attractive


demographics.

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m The turnaround time in Indian ports is down to 4 days from 10
m Its telecom in 1999 provided a bandwidth of 155 Mbps. Today it is 75,000 times more
and with fibre optic network in 300 cities.
m MNCs are quite profitable in India and are often earning returns that are superior to
their global average. Many of these companies are doing better in India than in china.
m Global MNC¶s are taking full advantage of their operations in India by not only
profitably accessing the domestic market but by also providing low cost off-shored
services to their global operations.
m Despite our natural disdain for things Indian, our economy has been the second
fastest growing large (>$125 bn GDP) economy over the last five years.
m Since 1982, India has grown slower that 4% per annum only once in 1992. This year
India's economy is about $ 650 bn having grown at 8% (albeit supported by a good
monsoon) and is now among the top ten global economies.
m India's demographic profile is most advantaged in the world and will continue to
improve.
m Infrastructure from a very poor base is improving. Apart from the power sector which
is very disappointing. Telecom, airports, roads and ports all have made progress.

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m Demographic Analysis

m Trade Area Analysis

m Competitive Analysis

m Traffic Analysis

m Site Economics

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m  ishakhapatnam ( Andhra Pradesh)

m Ahmedabad ( Gujarat)

m Baddi- Solon District (Himachal Pradesh)

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μ
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m Massive tax incentive package and central excise
concessions to attract investments in 2003
m The area has adequate power, a rarity in India, peaceful
industrial climate and is close to the rich hinterland of
Delhi, Chandigarh and Amritsar.
m The Himachal government has approved a housing
scheme for migrant labor force with CII as the facilitator.
m The major attractions for investors included 100 per cent
outright excise duty exemption for a period of ten years
from the date of commencement of commercial
production
m Availability of good water, salubrious climate and hydro
electric power cheaper at Rs 2.50 per unit

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