services - business opportunities in india: investment ... · low setup costs make this sector an...

For updated information, please visit www.ibef.org September 2017

SERVICES

Table of Content

Executive Summary……………….….…….3

Advantage India…………………..….……..4

Market Overview and Trends……….……..6

Strategies Adopted………….……..………15

Growth Drivers and Opportunities…..……17

Case Studies………...……………...……...26

Industry Associations……….......…………30

Useful Information……….......…………….32

For updated information, please visit www.ibef.org Services 3

The services sector of India remains the engine of growth of growth for India’s economy and contributed 62

per cent of India’s Gross Value Added in 2016-17.

The sector registered 7.7 per cent growth in 2016-17

India had net service exports of US$ 67.5 billion in 2016-17.

India had 28.6 per cent of its population employed in the services sector in 2016-17.

EXECUTIVE SUMMARY

Key Driver of Economic

Growth

A large pool of skilled IT manpower has made India into a global outsourcing hub. It now commands a 55 per

cent share in the global sourcing market.

India achieved the second highest growth rate in services exports in the world in 2016 at 3.6 per cent year-

on-year.

Global Technology Hub

The government’s move to launch ‘Startup India’ aims to create an inclusive ecosystem for entrepreneurs

and push for innovation. Services are a big part of this system. The technology infrastructure required for

such an ecosystem has increased the potential for the sector in India.

Low setup costs make this sector an attractive investment destination and the 60.7 per cent share in India’s

FDI inflows in 2016-17 is a sign of the same.

India also has reasonably well developed financial markets.

All these factors make Indian services sector an attractive ecosystem for both the entrepreneurs and the

investors.

Attractive Ecosystem

Source: Economic Survey of India, DIPP

Services

ADVANTAGE INDIA


ADVANTAGE INDIA

India is the export hub for software

services. It has a 55 per cent share in the

US$ 178 billion global sourcing market.

India is also becoming a destination for

medical tourism as a result of cheaper but

quality healthcare services.

India has immense potential in tourism

services and earned US$ 23.2 billion from

exports of travel services in 2016-17.

Services sector has received the most FDI

inflows between April 2000 and June 2017

reaching US$ 61.34 billion.

The sector received 60.7 per cent of the

total FDI inflows to India in 2016-17.

100 per cent FDI for any regulated

financial sector activity under the

automatic route.

An already established technology base

and infrastructure that will help in the

creation of an ecosystem for other

services.

Large pool of skilled manpower, especially

in the areas of IT & ITeS available at a

relatively low cost and and a rapidly

increasing youth population looking to

migrate from agriculture to other sectors.

Government of India is working to remove

many trade barriers to services and tabled a

draft legal text on Trade Facilitation in

Services to the WTO in 2017.

Government is promoting necessary

services and will charge zero tax for

education and health services under the

GST regime.

Skill India, a multi skill development

programme has been started to equip the

workforce with the necessary skills required

by the sector.

ADVANTAGE

INDIA

Source: Economic Survey of India 2016-17, DIPP, NASSCOM

Source: WTO- World Trade Organisation

Services

MARKET OVERVIEW

AND TRENDS


SERVICES SECTOR CLASSIFICATION

Services sector

Road transport

Trade and repair

services Hotels and restaurants

Railways Air transport

Source: Indiabudget

Financial

services

Real estate,

ownership of

dwelling and

professional

services

Transport,

storage,

communication

and

services related

to broadcasting

Public

administration

and defence and

others

Trade, repair,

hotels and

restaurants


SHARE OF SERVICES SECTOR GROWS AT THE

FASTEST CAGR

50

.0

50

.9

51

.8

52

.9

53

.8

8%

8%

10% 10%

8%

0%

2%

4%

6%

8%

10%

12%

48

49

50

51

52

53

54

55

FY

13

FY

14

FY

15

FY

16

FY

17*

Growth of India's Services Sector (GVA at basic price)

GVA (%)

Source: Indiabudget

Note: *GVA - Gross Value Added at constant (2011-12) basic prices; CAGR - Compound Annual Growth Rate

India achieved Compound Annual Growth Rate (CAGR) of 13.20 per

cent between 2011-12 and 2016-17 in services share to GVA.

In terms of overall GDP India ranks 5th in 2017 and in terms of and

services GVA India ranked 13th respectively as of 2015.

Services sector GVA* as a percentage of total GVA reached 53.8 in

FY17

An acceleration in the growth rate of Public Administration and other

services (11.3 per cent in FY17 from 6.9 per cent in FY16) supported

the increase in FY17, which was in turn supported by the

implementation of the recommendations of the 7th Pay commission

Visakhapatnam port traffic (million tonnes) India's Services Sector GVA (at basic price and % of total)


SERVICE SECTOR PMI

50

.6

51

.6

50

52

.6

51

.1

52

.4 53

.9

53

52

.4

49

.6

47

.7

50

.8

51

.8

51

.30

53

.20

50

.10

53

.60

54

.30

51

.40

54

.30

53

.70

51

.00

50

.30

51

.90

54

.70

52

.00

54

.50

46

.70

46

.80

48

.70

50

.30

51

.50

50

.20

52

.20

53

.10

45

.90

47

.50

50

.70

40

42

44

46

48

50

52

54

56

Source: Indiabudget, Bloomberg

Nikkei India Services PMI (Monthly)

The services sector is the key driver of India’s economic growth

The Nikkei India Services Purchasing Managers' Index (PMI) increased to 50.7 in September 2017 from 45.9 in July 2017.

In June 2017,the index dropped from eight month high of 53.1 in June 2017, following a contraction witnessed in the manufacturing sector (similar

downtrend) in July led by a significant drop in new orders and output

Previously, the Index rose for three consecutive months previously supported by a quicker increase in new business inflows boosting growth of

both activity and employment


TELECOM, IT-BPM SHOWCASE WORTHY

PERFORMANCE IN FY16

Performance of India's Services Sector FY17 (Share of total

Services sector GVA) The segment Trade, repair, hotels and restaurants remains the

largest contributing subsector to services sector GVA.

Few sectors have shown reasonably good performance in FY17,

including,

Telecom - with increase in telecom connections reflecting the

Jio effect,

Aviation - particularly domestic travel; aggregate number of

passengers increased 17.3 per cent YoY in FY17

Tourism related services - particularly in terms of foreign

exchange earnings as international tourist arrivals rose 11.93

per cent and reached a total of 9.2 million in FY 2017.

Information technology-business process management (IT-

BPM) sector also exhibited sound growth.

18.4%

21.1%

14.2%

Trade,hotels,transport,communication and services related tobroadcasting

Financial, real estate & professional services

Public Administration, defence and other services

Source: Indiabudget


India’s Services Trade

Source: Economic Survey 2016- 17

Till the global financial crisis of 2008, India’s services exports was

registering a good growth for almost a decade.

Services export growth reduced to 11.9 per cent CAGR during 2005-

06 to 2014-15 from 21.6 per cent CAGR during 1994-95 to 2004-05

As a result of pick up in some sectors such as transportation and

business services, services exports grew by 5.7 per cent in 2016-17

Business services exports and financial services exports, which

account for 20.2 and 3.1 per cent of the total services, recorded a

growth of 13.6 and 3.1 per cent in the year 2016-17 respectively

Travel accounts for 14.2 per cent of the total services exports, and it

recorded a growth of 9.3 per cent due to a significant rise in foreign

tourist travels

Transportation services exports increased by 13.2 per cent in 2016-

17 as compared to -19.9 per cent in 2015-16 which reflects

improving merchandise trade activity

Due to higher payments in two major service categories- travel and

miscellaneous (mainly software and financial services), India’s

service imports recorded a growth of 13.0 per cent in 2016-17

Despite a growth of 5.7 per cent in services exports, growth in

services imports led to a decline in net services receipts by 3.2 per

cent

Visakhapatnam port traffic (million tonnes) Trade Performance of India’s Major Services in 2016-17

(US$ billion)

23

.2

15

.9

12

1.2

73

.7

32

.9

5.1

16

3.1

16

.4

14

.1

63

.0

3.6

32

.3

5.9

95

.7

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

Service Exports Service Imports


HIGH FDI INFLOWS INTO THE SECTOR

8,6

84

3,6

52

1,9

66

2,3

38

91

6

5,5

64

1,5

17

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Se

rvic

es

Se

cto

r

Com

pu

ter

So

ftw

are

&H

ard

ware

Con

str

uction

Tra

din

g

Hote

ls &

To

uri

sm

Te

leco

mm

unic

atio

ns

Info

rmation

&B

road

castin

g


The share of the services sector is 60.7 per cent of the FDI equity

inflows during 2016-17

In 2016-17, growth rate of FDI inflows reduced to 8.7 per cent (US$

43.5 billion) due to negative growth in trading, computer hardware

and software, construction and hotels and tourism

To ensure that India remains an attractive investment, the

Government has brought about a number of reforms such as the

abolition of the Foreign Investment Promotion Board (FIPB) and the

introduction of composite caps in the FDI policy which permits 100

per cent FDI under automatic route for any financial sector activity

which is regulated by any financial sector regulator

Visakhapatnam port traffic (million tonnes) FDI Equity Inflows to the Services Sector in 2016-17

(US$ million)


PERFORMANCE OF INDIA’S SERVICES SECTOR:

SOME INDICATORS


Sector Indicators Unit Period

2009-10 2013-14 2014-15 2015-16 2016-17

IT- BPM

IT- BPM service revenues US$ billion 64 106 119 143 154

Exports US$ billion 50 87 98 108 116

Domestic US$ billion 14 19 21 35 38

Aviation

Airline Passengers (Total) Million 77.4 103.8 115.8 135.0 158.4

Domestic Million 45.3 60.7 70.1 85.2 103.7

International Million 32.1 43.1 45.7 49.8 54.7

Telecom Telecom Connections

(wireline and wireless) Million 621.3 933.0 996.1 1058.9 1194.6

Tourism

Foreign Tourist Arrivals Million 5.2 7.0 7.7 8.0 8.8

Foreign Exchange earnings from

tourism US$ billion 11.1 18.4 20.2 21.1 22.9

Shipping

Gross tonnage of Indian shipping Million GT 9.7 10.5 10.5 10.5 12.0

No. of ships Numbers 998 1209 1210 1251 1338

Ports Port Traffic Million

tonnes 850.0 972.5 1052.5 1072.5 1135.6


Banking and Financial

Services

Tourism and

Hospitality Services

Telecommunication

Services

Healthcare Services

IT and ITeS Services

Aviation Services

KEY PLAYERS

Source: Company websites, Aranca Research

http://www.lifecarehll.com/

Services

STRATEGIES

ADOPTED


Players are trying to ensure convenience for their customers by providing all services available on a single

portal. For example, makemytrip.com and a host of other websites provide a comprehensive basket of

offerings which include outbound and inbound travel for leisure and business trips, hotels and car booking,

holiday packages within India or abroad, etc

Players are opting for many channels to maximise sales and ensure convenience for their customers. For

example, Thomas Cook and Kuoni India launched their online portals to compete with others. On the other

hand, makemytrip.com is planning to go for the offline channel to complement its existing portal and has

already launched mobile apps for maximising sales.

Indian LCC’S are looking forward to increase their ancillary services, without tampering their business

models. This includes services like lounge access, priority boarding, customer loyalty memberships and

customer meals

In May 2017, financial services company JM Financial Ltd. voiced plans to extend its real estate lending

business and set up an affordable housing finance unit - JM Financial Home Loans Ltd. The company is

expected to secure the licence for the new unit from National Housing Bank (NHB) in a period of six months.

In April 2017, IFFCO has invested 26 per cent stake in a start-up firm Gramin Health Care (GHC), an

affordable and easily accessible service for farmers to educate them about basic health

General Atlantic Partners and TPG voiced intentions to bid jointly for acquiring the healthcare assets of Fortis

for US$ 1.80 billion

As the Indian education industry opens up to new innovative ways of learning, Educomp has decided to

explore this opportunity by offering its various online and supplemental solutions to help institutions to

leverage the most of technology

STRATEGIES ADOPTED

Banking and Financial

Services

Healthcare Services

Education and Training

Services

Source: Company websites, Media sources, Aranca Research

Tourism and Hospitality

Services

Services

GROWTH DRIVERS

AND OPPORTUNITIES


INDIAN BANKING SECTOR DRIVING GROWTH IN THE

SERVICES SECTOR

59

7

81

9

85

7 9

77

1,1

74

1,3

42

1,3

13

1,3

49

1,4

79

1,4

66

1,6

46

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

FY

07

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

Source: Reserve Bank of India (RBI), Aranca Research;

Note: CAGR - Compounded Annual Growth Rate, FY171 - Till December 29, 2016

During FY06–16, deposits grew at a CAGR of 11.47 per cent from

US$ 597 million in FY07 to US$ 1.646 billion in FY17. Deposits at

the end of 2016 reached US$ 1,646 million.

Strong growth in savings amid rising disposable income levels are

the major factors influencing deposit growth.

Access to banking system has also improved over the years due to

persistent government efforts to promote banking-technology and

promote expansion in unbanked and non-metropolitan regions.

At the same time India’s banking sector has remained stable despite

global upheavals, thereby retaining public confidence over the years.

Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY), have

also increased. As of October 4, 2017, US$ 102.68 million were

deposited, while 303.8 million accounts were opened.

Visakhapatnam port traffic (million tonnes) Growth in deposits over the past few years (US$ million)

CAGR 11.47%

1


AVIATION DRIVING GROWTH IN SERVICES WITH

INCREASING PASSENGER AND FREIGHT TRAFFIC

73

96

11

7

10

9

12

4

14

3

16

2

15

9

16

9

19

0 22

4

24

2

97

0

50

100

150

200

250

300

FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18

Source: Association of Private Airport Operator, Airports Authority of India

Witnessing a growth of 8.23 per cent over the previous year, total

passenger traffic stood at a 242 million in FY17, which was recorded

at 224 million in FY16 in India.

Growth in passenger traffic has been strong since the new

millennium, especially with rising incomes and low-cost aviation;

during FY06-17, passenger traffic grew at a CAGR of 11.46 per cent

in the country.

Freight traffic on airports in India is expected to cross 11.4 million

tonnes by 2032.

Growth in import and export in India will be the key driver for growth

in freight traffic as 30 per cent of total trade is undertaken via

airways.

Airports across the globe are planning on increasing their spending

on new technology to keep up with surging passenger traffic, which

is expected to double to 370 million by 2020. The anticipated double

digit growth would make India as the world’s 3rd largest aviation

market by 2020.

Fliers would soon be able to use biometric details for security checks

at airports after good feedback from a pilot project

Visakhapatnam port traffic (million tonnes)

Notes: CAGR – Compound Annual Growth Rate, FY – Indian Financial Year (April – March), 1From April to July 2017

1.4

0

1.5

5

1.7

2

1.7

0

1.9

6 2.3

5

2.2

8

2.1

9

2.2

8

2.5

3

2.7

0

2.6

8

1.1

1

0

1

1

2

2

3

3

FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18

Passenger traffic in in India (million)

1

Freight traffic in India (million tonnes)

1


INCREASING EXPENDITURE ON TRAVEL AND

TOURISM IS A MAJOR DRIVER FOR THE SECTOR

22

.1

24

.4

18

.8

22

.3

25

.5

26

.4

20

.8

17

.8

19

.1

19

.1

10

.3

42

.1

46

.2

48

.7 60

.9

69

.3

68

.7

77

.9 90

.2

96

.0

96

.2

18

1.7

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E

Business Travel and Tourism Spending (in USD Bn)

Leisure Travel & Tourism Spending (in USD Bn)

Source: World Travel and Tourism Council, Make in India, Global Business Travel Association

The travel and tourism sector forms a major part of the services

industry; thereby increasing expenditure for obtaining this service is

expected to drive growth in the overall services sector.

The share of travel and tourism in India’s GDP was 9.6 per cent in

2017; and is expected to grow at a CAGR of 7.2 per cent per annum

between 2017E-2027

Overall, leisure travel and tourism spending inclined at a CAGR of

15.74 per cent between 2007-17E.

Emergence of business hubs like Mumbai (Finance), Bengaluru (IT),

Chennai (IT), Delhi (Manufacturing, IT) is likely to boost business

travel as well.

Leisure travel spending grew to US$ 181.65 billion in 2017E from

US$ 96.20 billion in 2016.

Visakhapatnam port traffic (million tonnes) Travel and tourism spending (US$ billion)

Notes: IT – Information Technology, E – Estimated


STRONG GROWTH IN HEALTHCARE SERVICE

SECTOR

Source: Frost and Sullivan, LSI Financial Services, Deloitte, Aranca Research

45

51

.7

59

.5

68

.4

72

.8

81

.3 10

4.0

11

0.0

16

0.0

28

0.0

0

50

100

150

200

250

300

2008 2009 2010 2011 2012 2014 2015 2016 2017F2020F

Healthcare has become one of India's largest sectors both in terms

of revenue and employment. The industry is growing at a

tremendous pace owing to its strengthening coverage, services and

increasing expenditure by public as well private players

During 2008-20, the market is expected to record a CAGR of 16.5

per cent

The total industry size is expected to touch US$ 160 billion by 2017

and US$ 280 billion by 2020

The Ministry of Health is focusing on development of technologies for

the treatment of diseases like Cancer and TB.

Government is emphasising on the eHealth initiatives such as

Mother and Child Tracking System (MCTS) and Facilitation Centre

(MCTFC)

Indian companies are entering into merger and acquisitions with

domestic and foreign companies to drive growth and gain new

markets.

Visakhapatnam port traffic (million tonnes) Healthcare Sector Growth Trend (US$ Billion)

CAGR: 16.5%

Note: F - Forecast


EXPANDING TELECOM SUBSCRIBER BASE

20

5.8

6

30

0.4

9

42

9.7

2

62

1.2

8

84

6.3

2

95

1.3

4

89

8.0

2

84

6.3

2

99

6

10

58

.86

11

94

.58

12

10

.71

18.3

26.2

37

52.7

70.9

78.7

74.02 77.58

79.38 83.36

92.98 93.88

0

10

20

30

40

50

60

70

80

90

100

0

200

400

600

800

1,000

1,200

1,400

FY

07

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

FY

18

Telephone Subscriber (in million) Teledensity

Source: Telecom Regulatory Authority of India, Aranca Research

Note: CAGR - Compound Annual Growth Rate, 1As of July 2017

India is currently the second largest telecommunication market and

has the 3rd highest number of internet users in the world

India’s telephone subscriber base expanded at a CAGR of 19.22 per

cent, reaching 1194.58 million during FY07–17

Tele-density (defined as the number of telephone connections for

every 100 individuals) in India, increased from 17.9 in FY07 to 92.98

in FY17

Visakhapatnam port traffic (million tonnes) Growth in total subscribers

1


GROWING IT and IT-ENABLED SERVICES SECTOR

Source: NASSCOM, Aranca Research

24 29 32 32 32

48

35 38

50

59

69 76

86

98.5 108

116

0

20

40

60

80

100

120

140

160

180

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Domestic Export

IT and ITeS sector is the major driver of India’s service sector.

IT BPM industry revenues increased to US$ 154 billion in FY17 from

US$ 143 billion in FY16.

The contribution of the IT sector to India’s GDP stood at 7.7 per cent

in 2016.

TCS is the market leader, accounting for about 10.4 per cent of

India’s total IT & ITeS sector revenue in FY16

The top 5 IT firms contribute over 25 per cent to the total industry

revenue INR 8.4 lakh crore (US$ 131.11 billion) as of 2017,

indicating the market is fairly competitive.

The domestic revenue of the IT industry is estimated at US$ 38

billion and export revenue is estimated at US$ 117 billion in FY 17.

Visakhapatnam port traffic (million tonnes) Market size of IT industry in India (US$ billion)

Note: E – estimate, IT – Information Technology


GOVERNMENT POLICIES AND INITIATIVES

SEIS is aimed at promoting export of services from India by providing duty scrip credit for eligible exports.

Under this scheme, a reward of 3 to 5 per cent of net foreign exchange earned is given for Mode 1 and Mode

2 services.

Services Exports from

India Scheme (SEIS)

Source : Economic Survey 2017, Media sources

Formulation of National Tourism Policy 2015 that would encourage the citizens of India to explore their own

country as well as position the country as a ‘Must See’ destination for global travellers

Under Union Budget 2017, US$ 14.87 million was allocated for promotion and publicity of various

programmes and schemes of the Tourism Ministry.

National Tourism Policy

2015

The new 2016 National Education Policy (NEP) considers education as an utmost important parameter in the

country. The 2016 NEP majorly focuses on quality of education as well as innovation and research in the

sector.

National Education

Policy, 2016

The Union Cabinet, Government of India, has approved the National Health Policy 2017, which will provide

the policy framework for achieving universal health coverage and delivering quality health care services to all

at an affordable cost.

National Health Policy

2017

Aims at a ‘One Nation-One license’ regime with no roaming charges and nation wide number portability

‘Broadband for all’ with a minimum download speed of 2Mbps

Liberalisation of spectrum and convergence of network, services and devices

Unified licensing, delinking of spectrum from license, online real-time submission and processing

National Telecom Policy

2012


GOVERNMENT POLICIES AND INITIATIVES

100 per cent FDI is allowed under automatic route in scheduled air transport service, regional air transport

service and domestic scheduled passenger airline. FDI over 49 per cent would require government approval.

Approval of 49 per cent FDI in aviation for foreign carriers.

100 per cent FDI is allowed under the automatic route in tourism and hospitality, subject to applicable

regulations and laws.

The Government of India allowed 100 per cent FDI in the education sector through the automatic route since

2002.

For the healthcare sector, 100 per cent FDI is allowed under the automatic route for greenfield projects and for

brownfield project investments, up to 100 per cent FDI is permitted under the government route.

FDI cap in the telecom sector has been increased to 100 per cent from 74 per cent; out of 100 per cent, 49 per

cent will be done through automatic route and the rest will be done through the FIPB approval route.

Government has allowed 100 per cent FDI in the railway sector for approved list of projects.

FDI limit for insurance companies has been raised from 26 per cent to 49 per cent.

FDI Policy

Source : Economic Survey 2017, Media sources

The GST rates are nil for education and healthcare services; 5 per cent for air transport of passengers in

economy class, transport of goods by rail and vessel, supply of tour operator services (without ITC); 12 per cent

for food and drinks at restaurants without air conditioner, heating system or license to serve liquor, while it is 18

per cent for those having them; 12 per cent for accommodation in hotels, inns, etc for rooms with tariff between

INR 1000-2500, while it is 18 per cent for those between INR 2500-7500; 12 per cent for air transport of

passengers in other thane economy class; 28 per cent for entertainment events, cinematograph films, theme

parks, water parks, etc, hotels and inns with room tariff above INR 7,500.

Goods and Services

Tax (GST)

Services

CASE STUDIES


HDFC BANK

48

6.6

62

1.8

86

0.7

1,1

02

.2

1,2

38

.5

1,4

06

.5 1

,77

5.1

1,8

78

.4

2,2

55

.3

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

HDFC Bank

• Established in 1994, HDFC Bank is the 2nd largest private sector

bank in India. HDFC was amongst the 1st to receive an 'in

principle' approval from the RBI to set up a bank in the private

sector

• Divisions – Retail banking, Wholesale banking and Treasury

operations

• Size – Number of branches and extensions (FY17): 4,715

• Number of ATMs: (FY17) 12,260

• Number of Employees (FY17): 84,325

• Total Assets (FY17): US$ 133.89. billion

Recognition:

• In 2017, HDFC bank received ‘India’s Best Bank’ award by

Euromoney Awards for Excellence 2017.

• In 2017, HDFC bank was awarded the ‘Best Domestic Bank in

India’ award by Asiamoney India Banking Awards 2017.

• In 2016, HDFC bank was awarded “ India’s Most Valuable Brand”

for the third consecutive year.

• In 2016, HDFC received “Bank of the Year” award by Outlook

Money.

Visakhapatnam port traffic (million tonnes) Net profit US$ (millions)

CAGR 21.13%

Source: Annual report, company website


PRIVATE SECTOR PIONEERS: IHCL

45

9.9

0 5

50

.94

59

5.4

6

64

7.4

7

67

2.9

0

73

8.6

7

63

8.0

6

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

FY11 FY12 FY13 FY14 FY15 FY16 FY17

Source: IHCL’s website

The company was incorporated in 1902 and launched the first hotel

in India, The Taj Mahal Palace and Tower, in Mumbai in 1903

Taj Hotels Resorts and Palaces has 66 hotels in 42 locations across

India and 16 hotels worldwide

IHCL operates in the luxury, premium, mid-market and value market

segments through various brands such as Taj, Taj Exotica, Taj

Safari, Vivanta, Gateway Hotel and Ginger

IHCL operates Taj Air, a luxury private jet service

The company operates Taj Sats Air Catering Ltd, the largest airline

catering service in South Asia

IHCL’s revenues stood at US$ 638.06 million in FY17.

Visakhapatnam port traffic (million tonnes) Revenues (US$ million)


TCS: AN EMERGING GLOBAL IT MAMMOTH

Achievements:

2017: Pega 2017 wins Partner Excellence Award

2016: Won 3 Silver Stevies at 14th Annual American Business

Awards

2015: Gold, Silver and Bronze Stevie® Winner at the American

Business Awards

2014: Gold and Silver Stevie® Winner at the American Business

Awards

2013: Won Best Performing Consultancy Brand Award in Europe

2013: Received Red Hat North America Awards for System

Integrator Partner of the Year

38.0%

17.6%

16.1%

11.7%

9.0%

4.9% 2.9%

Application development andmaintenance (ADM)Enterprise solutions (ES) andconsultingInfrastructure services (IS)

Business process andservices (BPS)Assurance services

Engineering and industrialservices (EIS)Asset leveraged solutions

Segment-wise revenue breakdown (FY17)

Financial performance (US$ Billion)

6.0

6.3

8.2

10

.0

12

.0

13

.0

15

.0

16

.6

18

.3

1.4

1.7

2.3

2.8

3.1

3.9

4.1

4.4

4.7

2

0.0

5.0

10.0

15.0

20.0

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Revenue Operating Profit

Source: TCS Website, Annual Report

Established in 1968, Tata Consultancy Services (TCS) is an

Information Technology (IT) services, consulting and business

solution company. The company provides end-to-end technology and

technology-related services to global enterprises. The company’s

business is spread across the Americas, Europe, Asia-Pacific and

Middle East and Africa (MEA).

TCS accounts for nearly half of the Indian IT industry’s combined

market capitalisation

In April 2017, TCS has approved a buyback plan for US$2.38 billion.

The shares represent 2.85 per cent in the buyback of the total equity

capital at US$42.39 per share.

CAGR 21.6 %

Services

INDUSTRY

ASSOCIATIONS


KEY INDUSTRY ASSOCIATIONS

Indian Banks' Association

Address: Aurobindo Marg, Opp. Safdarjung Airport,

New Delhi –110 003

Phone: 91 11 24622495

Fax: 91 11 24629221

E-mail: [email protected], [email protected]

World Trade Centre, 6th Floor

Centre 1 Building,

World Trade Centre Complex,

Cuff Parade, Mumbai - 400 005, India

E-mail: [email protected]

Directorate General of Civil Aviation (DGCA)

Hotel Association of India (HAI)

Address: B-601, Gauri Sadan 5, Hailey Road, New Delhi – 110 001,

India

Tel: 91 11 23358585

Fax: 91 11 23327397

Website: http://www.auspi.in/

Address: B 212–214

Som Dutt Chamber-I,

Bhikaji Cama Place,

New Delhi – 110 066

Phone: 91-11-2617 1110/14

Fax: 91-11-2617 1115

Association of Unified Telecom Service Providers of India

(AUSPI)

National Association of Software and Services Companies

(NASSCOM)

Address: International Youth Centre Teen Murti Marg, Chanakyapuri,

New Delhi – 110 021

Phone: 91 11 2301 0199

Fax: 91 11 2301 5452

E-mail: [email protected].

Services Export Promotion Council (SEPC)

Address: 3rd Floor, 6A/6, NCHF Building, Siri Fort Institutional Area,

August Kranti Marg

New Delhi-110049

Phone: +91 11-41046327-28-29, +91 11-41734632

E-mail: [email protected]

Website: www.servicesepc.org

mailto:[email protected]

http://www.auspi.in/

http://www.auspi.in/



http://www.servicesepc.org/

Services

USEFUL

INFORMATION


GLOSSARY

CAGR: Compound Annual Growth Rate

FDI: Foreign Direct Investment

FY: Indian Financial Year (April to March)

GOI: Government of India

INR: Indian Rupee

US$: US Dollar

Wherever applicable, numbers have been rounded off to the nearest whole number


EXCHANGE RATES

Year INR Equivalent of one US$

2004–05 44.81

2005–06 44.14

2006–07 45.14

2007–08 40.27

2008–09 46.14

2009–10 47.42

2010–11 45.62

2011–12 46.88

2012–13 54.31

2013–14 60.28

2014-15 61.06

2015-16 65.46

2016-17 67.09

Q1 2017-18 64,46

Year INR Equivalent of one US$

2005 43.98

2006 45.18

2007 41.34

2008 43.62

2009 48.42

2010 45.72

2011 46.85

2012 53.46

2013 58.44

2014 61.03

2015 64.15

2016 67.22

H1 2017 65.73

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Source: Reserve bank of India, Average for the year


DISCLAIMER

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This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the

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substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do

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