IMLP C3 Final
IMLP C3 Final
IMLP C3 Final
Introduction
India is the second most important FDI destination (after China) for transnational corporations during 2010-2012. FDI for 2009-10 was at $ 25.88 billion. Mauritius, Singapore, US and the UK were among the leading sources of FDI.
Positive Indian economy, fast-growing market has made India an attractive destination for FII.
Institutional investors include Hedge funds, Insurance companies, Pension funds and Mutual funds. Hot money- The money coming through FII, this money can be taken out at any time from the market
Role Play
BADAN 11
SOFTWARE INDUSTRY
INVESTMENT POLICY
Automatic route for foreign equity up to 100 percent
100 percent foreign investment permitted in units set up exclusively for exports.
OPPORTUNITIES
IT-BPO industry is reached US$ 73.1 billion in 2009-10 witnessing a growth of over 5 per cent. India has the second largest English-speaking workforce in the world. Job Creation: 1million direct and 2-3 million indirect. High quality standards with CMM level 5 companies and 250 fortune 500 clients. Joint software development in super computing applications.
FUTURE PROSPECTS
India is growing @ 9% every year.55% of the growth is contributed by Services sector. As per NASSCOM, the Indian IT exports are anticipated to attain US$ 175 billion by 2020 out of which the domestic sector will account for US$ 50 billion in earnings. NASSCOM said that the domestic IT-BPO is expected to grow by 25-27 per cent during FY12 Huge inflows of foreign direct investments .
GROWTH OF IT
PHARMACEUTICAL SECTOR
STRENGTHS
Low cost of production. Large pool of installed capacities Efficient technologies for large number of Generics. Large pool of skilled technical manpower. Increasing liberalization of government policies.
OPPORTUNITIES
Aging of the world population. Growing incomes. Growing attention for health. New diagnoses and new social diseases. Spreading prophylactic approaches. Saturation point of market is far away New delivery systems.
Current Scenario
Pharma industry turnover is of about US$ 12 billion Pharma export value reached about US$ 4.7 billion About 2.91% of total FDI into the country Drugs and pharmaceuticals sector is at 8th rank in India's top 10 FDI attracting sectors.
Future Scenario
US$ 8 billion market for MNCs selling expensive drugs by 2015 Domestic pharma market is likely to reach US$ 20 billion by 2015 US$ 6.31 billion will be invested in the domestic pharmaceutical sector Dr Reddy's Laboratories has tied up with GlaxoSmithKline
AUTOMOTIVE INDUSTRY
9th largest automobile industry . 2nd largest two and three-wheeler market. 4th largest in Heavy Trucks. Largest tractor manufacturer. Annual production of over 2.6 million units. The monthly sales of passenger cars in India exceed 1 lac units. The automobile industry received FDI worth US$ 436 million in 2010.
15.
96%
3.95%
3.60%
76.49%
ENERGY SECTOR
RENEWABLES IN INDIA
The country has an estimated renewable energy potential of around 85,000 MW from commercially exploitable sources: Wind - 45,000 MW; small hydro - 15,000 MW and biomass/bioenergy - 25,000 MW. India has outlined ambitious capacity expansion and investment plans for the eleventh five year plan period (FY 2007- FY 2012). It has proposed an addition of 15,000 MW of Renewable Energy generation capacities during the period. EREC 2050 69% . New renewables 40%.
Proposals for up to 74% foreign equity participation in a joint venture qualify for automatic approval. 100% foreign investment as equity is permissible with the approval of Foreign Investment Promotion Board (FIPB). Various chambers of commerce and industry associations in India can be approached for providing guidance to the investors in finding appropriate partners .
FMCG
Shares of FMCG are considered defensive rather and fluctuating with the market. Shares are priced high. Shares of HUL are priced at a price Earning multiple of 30, ITC at 29 and Nestle at over 50.
Company Price (Mar-10) Colgate870.40 Palmolive Dabur 94.45 ITC 173.10 3774.45 obvious The Nestle culprit is liquidity.
behaving like defensive stocks, FMCGs have moved along with the market
In recent times, FMCGs have moved up with the market, contrary to conventional wisdom that they are defensive. They may or may not fall. So invest your money selectively.
GROWTH OF GDP
REFERNCES
Modern Banking Technology - Dr. Firdos T. Shroff Scenarios for Risk Management and Global Investment Strategies - Rachel Ziemba, William T. Ziemba The future of foreign investment in Southeast Asia - Nick J. Freeman, Frank L. Bartels Capital Market Dalal Street www.vibrantgujarat.com/do cuments/news/Newslette r-Issue-05.pdf www.moneycontrol.com/.../i ndias-image-asinvestment-hub-to-behit-experts_368555.html indiarealestatemonitor.com /.../what-makes-india-agood-investment-hub