India Environment Scan

Indian Subcontinent – Interesting Facts

Richest country until the time of British Invasion

5,000 year old ancient civilization

325 languages spoken – 1,652 dialects

18 official languages: Four major world religions, Hinduism,

Buddhism, Jainism and Sikhism originated here

28 states, 7 union territories

1.14 Billion population. Second largest in the world.

Seventh-largest country by geographical area

Environment Scan Macroeconomic Variables

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2004 2005 2006 2007 2008

E

2009

E

GDP (Bn. US$)

Growth Indicators

- GDP has grown from USD 670 Billion in ’04 to USD 1230 Billion in ’08

- GDP per capita is estimated to have grown from USD 570 in ’04 to USD 1074 in ’08

- India’s GDP has consistently grown over the last few years, and in spite of the recession in the core sectors, is

expected to grow by around 7% (in real terms) in 2009

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2004 2005 2006 2007 2008

E

2009

E

GDP per capita (US$)

Environment Scan Demographics

Population - Age-wise Break-up

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008

Above 50

40-49

30-39

20-29

15-19

0 -14

Semi UrbanPopulation%

Population Growth

-1.14 Bn in ’08. Total population has grown by 1.6% since 2001.

-Urban - 324 to 365 Mn.

-15- 39 Yrs Growth - 455 to 489 Mn.

- 34 Mn growth coming from 15-39.

-More than 40% of the population is in the range of 15-39. Around 30% is below 15

- Around 70% of India’s population is below the age of 40.

Urbanization in India

No. of Cities: 6

Total Population: 55 Mn

No of Cities: 29

Total Population : 50 Mn

No. of Cities : 36

Total Population : 30 Mn

No. of Cities : 362

Total Population : 70 Mn

No. of Cities : 4728

Total Population : 125 Mn

Total Urban Centers : 5161

Total Urban Population : 330Mn

% of All India : 30%

Metro : 4,000,000+

Mini Metro : 1,000,000+

Class 1A : 500,000+

Class 1 : 100,000+

Other Urban : 5,000+

TOWN CLASS /

POPULATION STRATA

Environment Scan Demographics

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2004 2005 2006 2007 2008

Household - Income Distribution

Total Households

Number of H/H earning morethan US$1,000 p.a.

Number of H/H earning morethan US$3,000 p.a.

H/H Growth

- Total H/H to grow from 181 Mn to 214 Mn

- USD 1K pa H/H from 158 Mn to 182 Mn

-USD 3K pa H/H from 27 Mn to 33 Mn.

-25 Mn H/H to come from USD 1K + pa slot

- Upper Middle Income group H/H on the rise.

Environment Scan Demographics

The Increased Surplus Income in Urban India

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10%

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60%

All India Urban Rural Top 20 Cities

Surplus Income Rate (% of Household Income)

The rate of Surplus Income has grown tremendously in the recent years, specifically in the Urban

India, further so in the Top 20 Cities of India

It currently stands at 25% for All India, around 30% for Urban India and a staggering 50% for the

households in the Top 20 Cities

Top 20 Cities :

Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Chennai, Ahmedabad, Pune, Surat, Kanpur, Jaipur,

Lucknow, Nagpur, Bhopal & Coimbatore, Faridabad, Amritsar, Ludhiana, Chandigarh & Jallandhar

Environment Scan

More than 50% of Households will form the “Consuming Class” in Urban India by 2016

The High-Income segment will triple in 2016, quadruple in boom-towns

The Consuming-Class Boom

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1998-99 2001-02 2004-05 2007-08 E 2015-16 E

% o

f P

op

ula

tio

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Low Income Aspirants Consuming Class High Income

Consumer Share of Wallet

Food & Beverages account for Over 1/3rd of Consumption Expenditure of Households in India

across all urban city groups.

Income growth likely to result in significant growth across categories

37%

22%

11% 7% 6%4%

10%

3%

Food, Beverages & Tobacco Transportation Housing & Utilities

Health Care Apparel Education & Recreation

Household & Personal Products Communication

Regional Trends

NORTH

• Extreme Temperatures – April to Sep. Important

Months

• Summer Months – Mar to Oct. Max 50 ºC

•Winter Months – Nov to Feb. Min 0 ºC

• Hindi is the dominant language in the Northern

India.

• Relatively Extravagant & Contemporary Outlook

•More receptive to Change (especially in larger

towns)

• High spend on Lifestyle Products

•Critical Urban centers in North India are – New

Delhi (& NCR), Chandigarh, Ludhiana, Amritsar,

Jallandhar, Lucknow, Kanpur & Jaipur.

• The Lower Himalayan range offers perfect ground

for Orchards and is also an important Natural

Mineral (Mountain) Water source

•North India has the higherst percentage of

Diabetics.

EAST

• Hot & Moderate most part of the year.

• Hilly Regions in NE has cold temperatures

• Summer Months – Feb – Nov. Max 35-40 ºC

• Winter Months – Dec –Jan Min 10 ºC

• Hindi is primarily spoken in Bihar. Most of the

Other states have their own languages like Bengali,

Orria etc

• Primarily Orthodox and Conventional and

Extremely Budget Conscious

• Less receptive towards Change.

• Relatively higher spend on Utility Products.

• Tea is the most popular drink.

•Important urban centers include Kolkata, Patna,

Bhubeneshwar. Ranchi.

• Important Tea Producing Belt. Home to the famous

Darjeleeng & Assam Tea.

Regional Trends

WEST

• Mostly Pleasant Temperatures with High Humidity

(Except MP, that has an extreme climete)

• Summer Months – Mar to Nov. Max 35-40 ºC

•Winter Months – Nov to Feb. Min 7-10 ºC

• Though every state has its own language (Marathi,

Gujarati and Konkani), Hindi is widely known and

accepted language for communication.

•Progressive Outlook

• Highly receptive towards Change.

• High spend on Lifestyle Products

• Critical Urban centers in West India are – Mumbai,

Ahmedabad, Pune, Surat, Nagpur, Bhopal & Indore.

• The Western Region is an important fruit

producing belt and is home to the world famous

“Alfanso” variety of Mangoes as well as

international quality Grapes

SOUTH

• Relatively Warm to Hot & Humid for most part of

the year.

• Coastal regions receive significant rainfall during

monsoon season (June-Sep)

• Temperature ranges : Max 35-40 ºC and Min

10-15 ºC

• Every state in South has its own Language, Media

& Tastes. Hindi is not spoken or understood by the

masses.

• Very Orthodox and Staunch in their outlook.

Extremely pragmatic in their spends

• Slow and Cautious approach towards change.

• Coffee is the most popular drink in South. This

region consumes more than 50% of Coffee in India.

• Another famous drink is Coconut Water. That is

consumed Naturally (not in packaged form).

•Important urban centers include Bangalore,

Hyderabad, Chennai. Coimbatore, Kochi, Vizag.

• Important Tea & Coffee Producing Belt.

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