TPK Perspective Vol4

perspective
a quar terly repor t by Ma y 2 0 0 9 / Vo l um e 0 1
a quar terly repor t by VOLUME 4 / 2010

Editorial Team
Raghav Gupta, President I raghav.gupta@technopak.com I +91-9958522993
Veenu Sharma, Senior Consultant I veenu.sharma@technopak.com I +91-9810562621
Anamika Mukharji, Editor I anamika.mukharji@technopak.com I +91-9769091553
Design & Development

Bharat Kaushik, Design Manager I bharat.kaushik@technopak.com I +91-9811661493
Arvind Sundriyal, Senior Designer I arvind.sundriyal@technopak.com I +91-9910493934
perspective | Volume 04
a quar terly repor t by Vo l u m e 0 4 / 2 0 1 0
In This Perspective
With this issue of the Perspective, our fourth, we have completed one year from the time we launched in
mid 2009. As with earlier issues, this one covers a broad range of areas across the consumer space in
India, including healthcare, education, retail, consumer products, food, green buildings, and branding.
Our first piece, Game Change in Healthcare? highlights how interest levels and investment outlook in
the Indian healthcare industry have gone a few notches up with Fortis’ investment in Parkway of Singapore
and this may be a possible game changer in healthcare. Continuing with healthcare, our second piece –
Integrating AYUSH System in Healthcare Delivery delves into how traditional Indian medicinal systems
need to be successfully blended with modern healthcare facilities to create affordable health care in the
country.
The Indian education sector is undergoing a significant shift. In The Four A’s of Education, we highlight
that in order to meet the needs of the individual and the nation, reforms in the education sector must take
into account accessibility, appropriateness, affordability and accountability. Further, a brief on the regulatory
and legislative reforms in the education sector and their impact and implications on various stakeholders is
provided in An Update on Nine Significant Regulatory Changes in Education in India.
Branding in the T-20 Era captures how the growing awareness of brand-building as a science has led
to the emergence of new trends that are shaping the future of branding initiatives. On the retail front, An
Overview of India’s Consumer and Retail Sectors presents a brief re-cap of past events and trends
and a look at what the future may hold for retailers and consumer product companies.
India’s Emerging Hot Spots explores how the current and planned infrastructure led investments are
going to drive the emergence of future ‘hot-spots’ – new target locations for consumer-hungry companies.
We present some measures for turning ‘green’ in Green Building Concepts: An Approach Towards
Sustainability as adoption of green practices gains importance.
The constantly evolving apparel retail market in India presents a number of opportunities. Trends in
India’s Domestic Fashion Market highlights some trends and opportunities across various categories
from fabric retailing and affordable luxury retail, to retailing of sportswear, Indian ethnic wear and kids
wear. The development of infrastructure from highways, expressways to metro railway lines coupled with
modernisation of airports and railway stations across the country has opened many gateways full of
opportunities in travel retail. This is covered under Emerging Opportunities in Travel Retail.
With growth in the economy and changing lifestyles, food consumption habits of the Indian consumer
are undergoing a significant shift. We provide details on the newer market opportunities that this shift is
bringing along in India’s Food Vision: The Next Decade. Lastly, in An Indian McDonald’s Anyone?,
we examine how the time is ripe for entry of food services retail chains offering ‘Indian cuisine’ based eat-
out options as the market matures from ‘special occasion’ to ‘necessity-based’ eating out.
We hope you enjoy reading this Perspective and look forward to your feedback.
Raghav Gupta, President I raghav.gupta@technopak.com

Contents
Game Change in Healthcare?

Arvind Singhal
The interest levels and investment mood in the Indian healthcare
industry has been pushed a few notches up with Fortis’ investment
01 in Parkway of Singapore, a possible game changer in healthcare.
Integrating AYUSH System in Healthcare Delivery

Dr. Rana Mehta, Akansh Akhauri, Ankur Bharti
Traditional Indian medicinal systems need to be successfully
blended with modern healthcare facilities to make way for affordable
02 health care in the country.
The Four A’s of Education

Arvind Singhal
Reforms in the education sector must take into account accessibility,
appropriateness, affordability and accountability in order to meet
10 the needs of the individual and the nation.
An Update on Nine Significant Regulatory

Changes in Education in India
Raghav Gupta, Kapil Gaba
Understanding the regulatory and legislative reforms in the
education sector and their impact and implications on various
12 stakeholders.
Branding in the T-20 Era

Raghu Viswanath
The growing awareness of brand-building as a science has led
to the emergence of new trends that are shaping the future of
22
branding initiatives.
An Overview of India’s Consumer and Retail

Sectors
Raghav Gupta, Rohit Bhatiani, Pranay Gupta
A quick re-cap of the past events and trends and a brief look at what
26 the future holds for retailers and consumer product companies.
India’s Emerging Hot-spots

Veenu Sharma
perspective
The current and planned infrastructure-led investments are going
to transform the Indian landscape and drive the emergence of
future ‘hot-spots’ – the potential targets for consumer-hungry
33
a quar terly repor t by Volum e 04 / 2010
companies.
Trends in India’s Domestic Fashion Market
Ashish Dhir, Priya Sachdeva, Ruby Jain
The constantly evolving apparel retail market in India presents a
36
number of opportunities across various categories.
Green Building Concepts : An Approach Towards

Sustainability
Avinash Mayekar, Parinita Devadiga, Jayshree K. Bhole
A brief on discovering measures for turning ‘green’ as adoption of
green practices which is only discretionary today, gains importance
56
for long term sustainability.
Emerging Opportunities in Travel Retail

Zahir Abbas, Sushil Patra
The development and modernisation of travel infrastructure across
the country has opened many gates full of opportunities in travel
64 retail.
India’s Food Vision: The Next Decade

V. Sridhar, Nimisha Chhabra
With the growing economy and changing lifestyles, the food
consumption habits of the Indian consumer are undergoing a
significant shift and bringing newer market opportunities to the
72 fore.
An Indian McDonald’s Anyone?

Raghav Gupta
The time is ripe for entry of food services retail chains offering
‘Indian cuisine’ based eat-out options as the market matures from
80 ‘special occasion’ to ‘necessity-based’ eating out.
82 Representative Cross-section of Our Projects
84 About Technopak
a quar terly repor t by Vol u me 0 4 / 2 0 1 0
Game Change in Healthcare?

This article appeared in the Business Standard on 26 March 2010
In post-Independence India, there have time and again been moments when a policy change or an
intrepid entrepreneur causes a complete change of the game and catalyses either the birth of or a rapid
transformation of the landscape for a particular business sector. In the last 30 years alone, some of these
game-changing milestones include Sanjay Gandhi’s launching of Maruti, Rajiv Gandhi’s dismantling of
licensing and moves to modernise technology and telecommunication sectors, Reliance Industries’ first
really mega project (Jamnagar refinery) and subsequent entry into the telecommunication sector, Kishore
Biyani’s bold moves in retail followed by Mukesh Ambani’s entry into the sector, the arrival of Infosys, L.N.
Mittal’s spectacular global success leading to the escalating ambition of many others in India, Ratan Tata’s
successful launch of the Nano, causing many in other industries to look at innovative solutions for India’s
specific challenges and needs, etc. Fortis’s investment in Parkway of Singapore could well be the turning
point for the Indian healthcare sector.
In 2010, healthcare is already India’s second-largest consumer-spending sector. At a size of about Rs
180,000 crore, it is significantly smaller than Indians’ spending on food and grocery, but already more than
what they spend on clothing and also more than all other sectors. This figure has grown at a rate of over
15 per cent per year in the last decade, and this growth is likely to be sustained for decades to come on
account of several factors, including the most obvious: the country’s population may touch the 1.2 billion
mark by the time the next census concludes in 2011. With the addition of about another 150-odd million
in the next 10 years alone, by 2020, the size of India’s healthcare industry may well be over Rs 600,000
crore.
This sector has many unique characteristics. Of these, the oddest one is that it already has the presence of
some of India’s largest and most entrepreneurial business groups, including Tata, Birla (almost all branches)
and Ambani (both Mukesh and Anil). It also has some of the most visionary and dynamic entrepreneurs,
including Dr. Prathap Reddy of Apollo, Analjit Singh of Max and Dr. Devi Shetty of Narayan Hrudyalaya, and
Malvinder and Shivinder Singh of Fortis. There are many centres of excellence in the public sector which
include AIIMS (Delhi) and various exemplary institutions among a host of not-for-profit institutions, such as
the CBCI-run St. John’s in Bangalore. Yet, until now (and very surprisingly), the healthcare sector has seen
interest from the private sector more as a corporate social responsibility activity rather than a high-potential
business.
It is in this context that Fortis’s investment and acquisition of a significant stake in Parkway of Singapore is
a potential game-changer. In one stroke, it has catapulted Fortis to the status of largest private operator of
hospital beds in Asia with over 10,000 beds spread across seven Asian countries. While financial analysts
are more focused on the price of this investment, most are probably missing the many strategic advantages
that Fortis can reap with this audacious move, and how it has set itself up to potentially become one of the
largest and perhaps most influential healthcare services providers in the world by 2020.
The interest in the Indian healthcare industry is likely to go up exponentially from now onwards. Firstly, the
current incumbents (most notably Apollo, Max, Narayan and Care) are not likely to take this challenge
lightly and will certainly accelerate their own growth plans. The interest from financial investors in India and
overseas is already very high in this sector and fortunately, with practically no policy constraints on raising
local and foreign capital – unlike in some other high-promise sectors such as retail and education – these
incumbents will not find it difficult to raise the requisite financial resources. Secondly, going by history, it
is but a matter of time before one or more of the large Indian business houses announce their own mega
plans to enter this sector as yet another major diversification.
India needs, with immediate effect, more than a million new hospital beds distributed across the country.
More millions of beds, entailing investments in hundreds of billions of rupees, will be required in the coming
decades. Fortis’s audacious move could well change the game for the Indian healthcare sector.
Author
Arvind Singhal, Chairman and Managing Director | arvind.singhal@technopak.com
1 | Game Change in Healthcare?

Integrating
AYUSH System
in Healthcare
Delivery
AYUSH: An Overview 03
Market Size and Growth Drivers 04
Evolution of AYUSH 05
Emerging Opportunities 06
Government Initiatives 07
Challenges Faced 09
AYUSH: An Overview
India, with its kaleidoscopic variety and rich cultural heritage boasts of some unique medicinal forms which
look at health, disease and causes of disease in completely different ways. Best known as Indian System
of Medicine or Alternative Medicine, its main focus is on holistic health and well-being of humans. The
demand for such a treatment approach and related medicines is increasing both in the domestic market
as well as internationally.
The Indian Systems of Medicine and Homoeopathy (ISM&H) were given an independent identity in the
Ministry of Health and Family Welfare by creating a separate department in 1995. Renamed the Department
of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH, meaning ‘long life’)
in November 2003, the department is entrusted with the responsibility of developing and propagating
officially recognised systems – Ayurveda, Yoga, Naturopathy Siddha, Unani, and Homoeopathy. This was
done due to the explicit realisation of contributions these ancient and holistic systems can make towards
human health care. These systems have a marked superiority in addressing chronic conditions and offer a
package of promotive and preventive interventions.
Exhibit 1:
Systems of Medicine
System of Medicine Concepts and Principles Treatment Approach
Health or sickness depends on the presence or Treatment of the disease consists of avoiding
absence of a balanced state of the total body causative factors responsible for disequilibrium
matrix including the balance between its of the body matrix or of any of its constituent
Ayurveda different constituents. Both intrinsic and parts through the use of Panchkarma
extrinsic factors can cause disturbance in the procedures, medicines, suitable diet, activity
natural equilibrium giving rise to disease and regimen for restoring the balance and
strengthening body mechanisms to prevent or
minimise future occurrence of the disease.
Yoga philosophy is an art and science of living According to Yoga, most diseases, mental,
in tune with Brahmand-The Universe. It is a psychosomatic or physical, originate in the
science as well an art of healthy mind through a wrong way of thinking, living
Yoga living-physically, mentally, morally and and eating which is caused by attachment.
spiritually.
The basic approach of Yoga is to correct the
lifestyle by cultivating a rational, positive and
spiritual attitude towards all life situations.
Nature Cure believes that all diseases arise due Naturopathy is a system of healing science
to the accumulation of morbid matter in the stimulating the body’s inherent power to regain
body and, given scope for its removal, Nature health with the help of the five great elements of
Naturopathy provides cure or relief. A Nature Cure physician nature: Earth, Water, Air, Fire and Ether. It
helps in Nature’s effort to overcome disease by advocates the practice of drugless therapies
applying correct natural modalities and like Massage, Electrotherapy, Physiotherapy,
controlling natural forces to work within safe Acupuncture and Acupressure, Magneto
limits. The five main modalities of treatment are therapy, etc.
air, water, heat, mud and space.
It is mainly dependent on the temperament Pharmacotherapy is mainly dependent upon

(mizaj) of the patient, hereditary condition and locally available herbal drugs, making the
effects, different complaints, signs and system indigenous. Similarly, surgery has also
Unani symptoms of the body, external observation, long been used in this system. In fact, the
examination of the pulse (nubz), urine and ancient physicians of Unani Medicine were
stool, etc. Unique and special treatment pioneers in this field and had developed their
methods like Dieto therapy (Ilaj-bil-Ghiza), own instruments and techniques. At present,
Climatic therapy (Ilaj-bil-Hawa), Regimental however, only minor surgery is in vogue in this
therapy (Ilaj-bit-Tadbir), make it a different, system.
remarkable and popular system.
3 | Integrating AYUSH System in Healthcare Delivery

According to this system the human body is a The Siddha system of medicine emphasises
replica of the universe and so are the food and that medical treatment is oriented not merely to
drugs irrespective of their origin disease but must take into account the patient,
Siddha environment, meteorological considerations,
age, sex, race, habits, mental frame, habitat,
diet, appetite, physical condition, physiological
constitution, etc. This means the treatment has
to be individualistic, which ensures that
mistakes in diagnosis or treatment are minimal.
The principle of Homoeopathy states that a In Homoeopathy, medicines are prepared from
medicine which can induce a set of symptoms natural sources like vegetables, minerals,
in healthy human beings would be capable of animals, etc. There is no toxic or poisonous
Homoeopathy curing a similar set of symptoms in a diseased effect of the finished products of Homoeopathic
state. In modern terminology this is known as medicines.
Human Drug Pathogenicity Study (drug
proving).
Market Size and Growth Drivers

The market for AYUSH was estimated at Rs 8,000 crore (including drugs, over-the-counter and wellness
products, treatment and herbal extracts) in 2009 and
has been growing at 20 per cent year-on-year. It is Exhibit 2: The AYUSH Market in India
expected to reach Rs 16,250 crore in 2014. 16,250
• The wellness/spa market is the fastest growing
5,000
segment (at 20 per cent per annum), led by the
growing medical tourism and hospitality industry. 1,750
8,000
• The products market is about Rs 4,000 crore with 2,000 6,000
OTC products like digestives, health food and pain 1,000
balms, etc. contributing almost 75 per cent of the 3,000
segment. 2,000 3,500
2009 2014
• The hospital business has historically grown at 12
per cent per annum and is expected to grow faster Hospital OTC Product Pharma Product Wellness Centres/ Spa
in the coming years as the Government is putting a (All figures in Rs crore)
lot of effort towards cost-effective health solutions Source: Technopak Analysis
through the AYUSH programme.
Exhibit 3:
Key Players of AYUSH
Product Distribution Total Sales Product Contribution to
Key Players Clinics/Hospitals
Outlets (Rs crore) Sales
Kottakal arya Vaidyashala 4 1,000 160 40%
Arya Vaidya Pharmacy 50 60 25%
Vaidyaratnam, Thrissur 1,000 60 100%
Birla Kerala Vaidyashala 34 40 0%
Kerala Ayurveda Limited, Kochi 30 20 45%
Nagarjuna Ayurvedic, Kalady 1 20 75%
Dabur 1600 100%
Baidyanath 200 100%
Zandu 130 100%
Himalaya 350 100%
Ozone 200 100%
Vicco 150 100%
Charak 100 100%
Source: Technopak Analysis
Integrating AYUSH System in Healthcare Delivery | 4

The major growth drivers for the surging demand for AYUSH are:
• Increasing awareness about the adverse effects of synthetic drugs such as steroids, anti-biotics, pain
killers, etc. has boosted the demand for medicinal herbs in domestic and export markets
• Herbal drugs have no adverse effects and are safe to use
• Herbal extracts and powders are comparatively cheaper than synthetic drugs and formulations
• Herbal medicine acts as an alternative for the segment that cannot afford Allopathic drugs with the new
product patent regime act and under WTO provisions
• India is seen by Western countries as a reservoir of medicinal herbs and their uses
Evolution of AYUSH
The Indian systems of medicine like Ayurveda, Homoeopathy, etc. enjoy age-old acceptance in Indian
communities. In most places they form the first line of treatment for common ailments. Classical AYUSH
medicines have been successfully used to treat many diseases for centuries. Of these, Ayurveda is the most
ancient medical system with an impressive record of safety and efficacy. It is thought to have originated
in Vedic times, around 5,000 years ago, and has evolved through intuitive, experimental and perceptual
methodology in India. The main objective of Ayurveda is to promote health and prevent ailments so as to
relieve humanity of all categories of misery-physical, mental, intellectual and spiritual.
Other components such as Yoga and Naturopathy are now being practised by young and old alike to
promote good health. Nowadays, the practice of Yoga has become a part of everyday life for most health-
conscious people. It has aroused a worldwide awakening among people and plays an important role
in prevention and mitigation of diseases. The practice of Yoga prevents psychosomatic disorders and
improves an individual’s resistance and ability to endure stress.
Exhibit 4:
Intiatives taken by Corporate Hospitals to Popularise the Traditional
System of Medicine
“The Indian system of medicine has faced many roadblocks due to the lack of sufficient research. We are set to carry out
scientific study on Ayurveda and other systems of medicine. Here, we are taking it up. We will conduct research in our
hospitals across India and come up with a database. After that we will offer willing patients these treatments. Once we provide
the scientific validation, we will set up a chain of Ayurveda centres to provide treatment for patients.”
Prathap C. Reddy, Chairman, Apollo Chain of Hospitals
“Medanta Medicity aims to functionally integrate within one campus and one management the facilities of medical care,
teaching as well as research and development. It also offers to explore the possibility of integrating knowledge of traditional
and alternative medicine with modern medicine, through means of scientific research.”
Naresh Trehan, Chairman and Managing Director, Medanta Medicity
Some institutions are already working towards integrating the ancient system with the modern system of
medicine. Benaras Hindu University, Varanasi, is probably the first institution to conceive the idea of integrating
ancient and modern systems of medicine at the level of both education and professional practice. There
is a well-developed cross-referral system by which patients of fistula-in-ano, chronic rheumatic diseases,
residual psychosis and anxiety disorders, chronic colitis, IBS (irritable bowel syndrome), liver disorders,
degenerative brain diseases, neuropathy and terminally sick patients of all kinds who are declared incurable
and/or financially unable to afford modern medicine are referred to the Ayurvedic department by Allopathic

practitioners. However, owing to inadequate scientific validation, this system of medicine has not received
its due recognition. The traditional Indian system of medicine has now found new patrons in modern,
corporate hospitals like Apollo Hospitals, Aditya Birla hospitals, and Medanta, which are making efforts to
carry out research to establish the ancient system worldwide as a scientific system of medicine.
The integration of Indian systems of medicine at the level of treatment is yet to become popular and
operationalised among health care providers in many other health care institutions where the Ayurvedic
system is available. AYUSH offers treatment for diseases like diabetes, arthritis, obesity, depression,
menopause and high blood pressure. It has been proved that going to the roots of alternative medical
systems can prove a safe bet in the global market. It can also help people avoid hospital visits for simple
ailments and make treatment available with minimum side effects.
Ayurveda, Yoga, Unani, Siddha and Homoeopathy are today rationally recognised systems of medicine
and have been integrated into the national health delivery system. India enjoys the distinction of having the
largest network of traditional health care in the world, which is fully functional with a network of registered
practitioners, research institutions and licensed pharmacies. The Department of AYUSH made steady
progress during the year 2004-05. Emphasis was laid on implementing schemes that address the thrust
areas identified by the Department in consultation with the Planning Commission like upgrade of educational
standards, quality control and standardisation of drugs, improving the availability of raw material, research
and development and building awareness about the efficacy of systems domestically and internationally.
Emerging Opportunities
The widespread use of traditional medicines in India is expected to increase. It is now established that there
is tremendous scope for safe and quality traditional systems in wellness and preventive health. States like
Kerala that have an integrated approach in their health care system reflect quality health indicators across
the state.
As a result of increasing preferences for different systems of medicines and the need to curtail health
care costs, many countries are now grappling with the policy dimensions of accommodating traditional
and complementary medicines in the healthcare system. Commonwealth Health Ministers in 1998 formed
a working group on traditional and complementary health systems to provide guidance for integrating
traditional and complementary medicine into national health care as part of the broader agenda of health
sector reform. In some countries these traditional and indigenous systems have been implemented in
parallel with the modern system.
Western Europe, USA, Japan and Southeast Asia represent significant markets, and there is sizeable
potential for increase. India’s indigenous system of medicine or AYUSH is finding new interest amongst
people in the West. In the United States, as many as 42 per cent of people, are adopting ‘complementary or
alternative medicine’ (CAM) approaches to help meet their personal health problems. Arthritis (both osteo
arthritis and rheumatoid arthritis) is one of the foremost diseases for which patients seek complementary
or alternative medicine option. However, the requirement for registration based on clinical trials impedes
the potential for export of formulations, and many medicinal plants are exported in their crude form or as
food supplements.
Earlier viewed skeptically by modern medical practitioners for its lack of rigour and standards, alternative
medicine is now being viewed with more interest. Under growing pressure to curtail health care costs, the
FDA (Food and Drug Administration) and professional organisations such as American Medical Association
and American Association of Medical Colleges are now open to evidence-based CAM. With new surveys
showing that four in every ten people in the US have used CAM in the last year, insurance companies are
also recognising some aspects of it.

Government Initiatives
Mainstream
In India, most people belonging to different strata of society, primarily in rural areas, resort to Indian systems
of medicine, particularly Ayurveda, for health care. Due to its countrywide presence, easy availability,
affordability and safety, it has survived through the centuries and has been formally institutionalised
in modern India as far as education and service delivery are concerned. It has been integrated with
government health services at the central and state level and is currently being given a further impetus by
the Government. The National Population Policy 2000 recommends mainstreaming of Indian systems of
medicine into the national family welfare programme. According to the Planning Commission, the primary
reason for integrating Indian Systems of Medicine (ISM) with Allopathic medicine is to resolve the acute
shortage of qualified doctors being faced by our health care system.
The involvement of AYUSH in the national health care delivery system including reproductive and child
health was also given a thrust in keeping with the strategies laid out in the National Policy on AYUSH,
2002.
The National Rural Health Mission seeks to invigorate local health traditions and mainstream AYUSH
(including manpower and drugs), to strengthen the public health system at all levels. There are 5 Ayurvedic
hospitals, 619 Ayurvedic dispensaries, 4 Homoeopathic hospitals, 560 Homoeopathic dispensaries and
9 Unani dispensaries. A total of 266 Ayurvedic and Homeopathic doctors and 200 paramedics have been
approved by the Government of India to be placed in the block Primary Healthcare Centre/ Community
Healthcare Centre (PHC/CHC). An additional 48 Ayurvedic and Homoeopathic doctors are proposed in
this current budget to be placed in the remaining 48 PHC/CHCs in the blocks. This will make available one
Ayurvedic/Homoeopathic doctor in each of the 314 block health institutions of the state. AYUSH drugs shall
also be provided to each of these institutions.
The Government has decided that AYUSH medications shall be included in the drug kit of ASHA (accredited
social health activists). The additional supply of generic drugs for common ailments at SC/PHC/CHC (sub-
centre, primary health centre or community health centre) levels under the Mission shall also include AYUSH
formulations. At the CHC level, two rooms shall be provided for AYUSH practitioners and pharmacists
under the Indian Public Health Standards (IPHS) model. At the same time, single-doctor PHCs shall be
upgraded to two-doctor PHCs by inducting AYUSH practitioners at that level.
The Educational System of AYUSH

Recognising the idea of mainstreaming AYUSH to strengthen the public health system, the Government
of India is making far-reaching efforts to promote its educational standards. In order to improve the quality
of human resources, the Department of AYUSH, Government of India, has laid continual emphasis on
checking the growth of sub-standard colleges and has sought the active involvement of regulatory councils
and State Governments to achieve this. Under the amended IMCC (Indian Medicines Central Council) Act
2003 and HCC (Homoeopathy Central Council) Act 2002, prior permission of the Central Government is
now mandatory for establishing new colleges; starting new and higher courses; and increasing admission
capacity in Ayurveda, Unani, Siddha and Homoeopathy systems of medicine. It also provides for ensuring
conformity of standards in existing colleges within three years. These provisions will improve the education
standards of Ayurveda, Unani, Siddha and Homoeopathy in existing colleges as well as curb the unwanted
growth of sub-standard colleges. IMCC (Amendment) Act, 2005 and HCC (Amendment) Act, 2005 have
been introduced in the Parliament with a view to bringing about transparency in the functioning of these
Councils as a part of the Department’s priority to improve standards of graduate and postgraduate
education in Ayurveda, Siddha, Unani and Homoeopathy.

Current Infrastructure in AYUSH

Current infrastructural facilities in AYUSH have not kept pace with growing demand, as seen in exhibit
5. Though the government is making an effort to expand these facilities by adopting various measures,
growth has been rather slow over the years.
Exhibit 5:
Infrastructure for AYUSH in India
Facilities Ayurveda Unani Siddha Yoga Naturopathy Homoeopathy TOTAL
Hospitals 2404 267 277 12 170 235 3360
Beds 43826 4770 2596 495 5527 10988 68234
Dispensaries 14500 1025 488 70 238 6042 22494
Registered
458328 47456 6601 0 914 238627 751926
Practitioners
(i) Admission
11375 1770 350 - 385 13355 27235
Capacity UG
(ii) Admission
1053 67 110 - - 1163 2393
Capacity PG
Manufacturing
7955 324 302 - - 647 9228
Units
Source: Central Council of Indian Medicine
National Institutes
There are six national institutes of AYUSH, namely;
• National Institute of Ayurveda (NIA), Jaipur
• National Institute of Homoeopathy (NIH), Kolkata
• National Institute of Unani Medicine (NIUM), Bangalore
• National Institute of Naturopathy (NIN), Pune
• Morarji Desai National Institute of Yoga (MDNIY), New Delhi
• National Institute of Siddha (NIS), Chennai
These apex bodies have been established to achieve excellence in teaching patient care and research.
Research Councils
There are four apex Research Councils, namely:
• Central Council for Research in Ayurveda and Siddha (CCRAS), New Delhi
• Central Council for Research in Unani Medicine (CCRUM), New Delhi
• Central Council for Research in Yoga and Naturopathy (CCRYN), New Delhi
• Central Council for Research in Homoeopathy (CCRH), New Delhi
These research organisations initiate, aid, guide, develop and carry out scientific research, fundamental
and allied, in different aspects of the respective systems.
Regulatory Bodies
There are two national-level regulatory bodies, namely:
• Central Council of Indian Medicine (CCIM), New Delhi
• Central Council of Homoeopathy (CCH), New Delhi

• These Councils are responsible for laying down Exhibit 5:
and maintaining the minimum standards of Human Resources for AYUSH

education, maintaining a central register of
0.12%
practitioners and regulating professional practices AYUSH Doctors in
by the practitioners of the Indian Systems of India, 2008
Medicine and Homoeopathy respectively. 6.31%
60.96% Ayurveda
Human Resources in AYUSH Homoeopathy
There is a sizeable pool of medical manpower in the Unani
31.73%
AYUSH system of medicine. These persons may be Naturopathy
more willing than modern system practitioners to
serve rural areas where access is quite limited. The
total number of registered AYUSH Doctors in India
as on 1.1.2008 was 751,926. Source: National Health Profile of India, 2008, Central Bureau of Health Intelligence
Challenges Faced
It is believed that societies, especially those of developing countries with limited resources, could
significantly improve the healthcare means at their disposal by exploring the scope of these systems of
traditional medicine. However, the following challenges prevent these systems from occupying positions
of importance:
• Lack of contemporary environment

• Shortage of qualified medical manpower
»»BAMS (Bachelor of Ayurvedic Medicines and Surgery) doctors prefer Allopathic hospitals for better
prospects
»»More generalists than specialists
• Lack of modern equipment and other facilities
»»Limited investment in modern equipment
»»Lack of funding in Government and Government-aided Ayurvedic hospitals
• The evidentiary standards required by Western countries that prefer solid proof to blind faith are not met
• Lack of adequate information on the most effective system for each kind of health problem forces patients
to fall back on Allopathy for instant relief
Looking at the growing health care demand with enablers catalysing the demand, it is imperative that all
systems of medicine put their heads together and allocate resources for the research and development
of traditional medicine with the end-result of better Integrated Medicine. Proper communication between
the experts of all systems, appraisal of the available information, sharing of research experiences and
evidence-based results can provide a better understanding of the strengths and weaknesses of Allopathy
and complementary systems, which include the entire spectrum of traditional, time-tested systems and can
solve the problem. Balanced modalities of Integrated Medicine, if well implemented, would make India a
global leader in health matters. Quality assurance, education, research and nutrition are a few of the areas
for industry players to invest in and unleash the business opportunities in this sector.
Authors
Dr. Rana Mehta, Vice President | rana.mehta@technopak.com
Akanksha Akhauri, Consultant | akanksha.akhauri@technopak.com
Ankur Bharti, Consultant | ankur.bharti@technopak.com

The Four A’s of Education

This article appeared in the Business Standard on 11 March 2010
It is very heartening to see that education has finally started to attract the attention it always deserved.
In the last 20 years, especially, while India talked about financial and other reforms, the education sector
actually saw even more regressive policy steps and more stifling of efforts to create high-quality capacity
from primary schooling right through to post-graduate studies.
There is currently a lot of optimism about the reforms in the education sector. Hopefully, many of the
progressive reformist measures articulated by the Union HRD minister since his induction into the Cabinet
last year will be implemented in the current year itself, creating the right policy framework and operating
environment for attracting large investments into the sector. Indeed, India’s challenge in the education
sector, as it is in all other social and physical infrastructure sectors, is mind-boggling. For a population that
is likely to touch almost 1.2 billion by the time the next census begins in 2011, India needs – just to illustrate
this massive challenge – over 1.5 million qualified doctors. Against that, we have no more than 550,000
and of this small number, probably 30 per cent or more may be concentrated in the four metros alone.
The current annual capacity for MBBS seats is less than 40,000. India’s gross enrolment ratio (number
of students in colleges) is just above 10 per cent, while the same for developed nations is over 50 per
cent. Just to increase this ratio to 20 per cent in 10 years, we require a near doubling of higher education
seats in India (the school-going population would have increased by more than 100 million in the next 10
years), necessitating an investment of more than Rs 480,000 crore. Not only this, 45 per cent of all higher
education seats in India are allocated to humanities and arts compared to 3 per cent in Brazil, 14 per cent
in China, and 4 per cent in Russia. It is not surprising, then, that India is way behind in the number of seats
available for technical and business/manufacturing-oriented education compared to developed or major
developing countries. And finally, while a lot of attention is justifiably focused on primary education and
higher education, relatively less attention is given to those estimated 400 million out of about 460 million
jobs that are skill-based and require vocational training. Less than 6 per cent of this huge mass of workers
receives any form of vocational training. The current landscape of vocational training in India comprises
about 5,500 industrial training institutes and about 1,750 polytechnics. China, having a population not
much bigger than India’s, has over 500,000 such institutes.
While this infrastructure is being created, it is also important to start paying serious attention – through
policy framework – to the 4 As: Accessibility, Appropriateness, Affordability and Accountability. Accessibility
has to be universal in the context of all socio-economic strata of society and across the entire geographical
spread of India. Appropriateness has to meet not only the aspirations of the individual but also India’s
needs, and the demands of Indian society at large. Affordability has to be seen both from the point of view
of the individual who (or whose family) should be able to finance her studies from school right through
doctoral programmes, and also the country (how much it can afford to subsidise since resources available
for all infrastructure are severely limited). And finally, accountability has to be seen first from the perspective
of the student who would have trusted the system and the regulators with 16 or even more years of her life
in the hope that on completing her education she would be able to find the appropriate job or vocation for
which she has dedicated those years to school and college. Accountability also has to be to the nation, so
that there are no shortages of qualified people when the population is so large, and so young.
Hence, as the governments (both at the Centre and in states) have in the past decades come up with a
slew of incentives and subsidies based on backward area development or promotion of specific industrial
and service sectors, they must now come up with policies that can direct this new capacity creation in the
education sector based on these four crucial principles of accessibility, appropriateness, affordability, and
accountability.
Author
Arvind Singhal, Chairman and Managing Director | arvind.singhal@technopak.com
The Four A’s of Education | 10

An Update on
Nine Significant
Regulatory
Changes in
Education in
India
Examination Reforms:
Class X Board Exams Optional
for CBSE Students 13
The Right of Children to Free and

Compulsory Education Act, 2009 13
Derecognition of Deemed
Universities 15
Foreign Educational Institutions

Bill, 2010 16
The Prohibition of Unfair Practices

in Technical, Medical Educational
Institutions and Universities Bill,
2010 17
The National Accreditation Regulatory

Authority for Higher Educational
Institutions Bill, 2010 18
The Educational Tribunals Bill,

2010
19
The National Commission for
Higher Education and Research
Bill (NCHER),2010 20
National Higher Education

Finance Corporation 21
1. Examination Reforms: Class X Board Exams Optional for CBSE Students

Date of Passing
• Effective year 2011 for class IX and class X.
What Does it Entail?

• Enables continuous assessment of a student at the school level instead of the board examinations at the
end of class X.
• Focuses on measuring perfromance in the examination for class IX and class X through grades in 9
bands instead of the currently prevalent numeric indicators.
Impact on Current and Future Institutes

• Need to subscribe to the mechanism of continuous assessment as prescribed by CBSE.
Impact on Students and Parents

• Reduces the pressure on students to perform better than their peers.
• Parents too relieved with the relaxed parameters which do not make everything dependent on one
examination.
Technopak View
• A positive step to alleviate stress that students go through in their formative years.
• We expect it will facilitate real learning instead of all the efforts directed towards scoring better than the
peers.
The notification can be accessed at http://bit.ly/dhYK0v
2. The Right of Children to Free and Compulsory Education Act, 2009

Date of Passing
• Came into force on April 1, 2010.

• Makes access to primary education fundamental right. Allows for free and compulsory education for
children between 6-14 years of age.
• The act maintains that no child can be held back, expelled, or required to pass a board examination until
one completes the elementary education.
• Calls for a fixed student-teacher ratio and allots 25% reservation for underprivileged students (max
1:40).
13 | An Update on Nine Significant Regulatory Changes in Education in India

Impact on Current Institutes

• Applicable to the fresh batch of Class I beginning in June 2011. All schools prohibited from adopting any
screening criteria for Class I students.
• Schools need to improve the infrastructure to fulfil the requirement of the act within three years failing
which it would be de-recognised. Additionally, the schools may have to invest in capacity addition which
would mean further strain on the resources.
• Although the Government plans to reimburse the cost of educating the economically disadvantaged
children, the actual cost incurred by the school may be higher than planned and may not get entirely re-
imbursed. The schools, in turn, may try to recover additional costs incurred from other students through
an increase in the fee.
• The unaided schools that are obligated to provide free education to a specific number of children on
account of having received any land, building, equipment or other facilities, either free of cost or at a
concessional rate, would not be entitled for any reimbursement to the extent of such obligation.
• Schools run by minority institutions may also come under the coverage of the RTE Act.
• The impact on revenue would be to the extent of 2% during the first year of the Act coming into operation
and can extend upto 16% overall thereafter.
Impact on Future Institutes

• For recognition, all new schools need to subscribe to the norms prescribed by RTE Act. These norms
pertain to: student-teacher ratio; building infrastructure; minimum instructional hours; teaching equipment;
library and sports/play facilities.
• The financial projections of a new school have to factor in 25% reservation immediately across classes
I-VIII.

• The students from economically disadvantaged children can aspire to get education and even be part of
the private-unaided schools that are known for quality education.
• Prosperous families may not prefer their their children to study with the those from the economically
disadvantaged strata.
• The fee for general category students may be raised to recover the expenditure incurred in providing
education to the economically disadvantaged students.
Impact on Government
• Need to make provision for funds (Rs. 1.71 lakh crore over next 5 years) required for infrastructure
development and implementation.
• Need to manage the resources to fill the gap of 5,00,000 teachers by most conservative estimates.
• The disagreeement with various state governments over sharing the expenditure is yet to be resolved.
Impact on Other Stakeholders / Investors

• Although K-12 education is deemed not-for-profit, the provisions of the Act will impact the surplus
generated by the schools. Private unaided, for-profit schools are expected to see profits erosion.
An Update on Nine Significant Regulatory Changes in Education in India | 14

Technopak View
• A commendable initiative though fraught with doubts about implementation.
• The RTE Act needs to protect the private schools especially those unaided by the government who have
invested a huge amount of money and established a credibility for the quality of education they impart.
The step should not force them to dilute their standards.
• The Act may not be the ultimate tool to bridge the social divide but still is a positive step forward.
• Schools may supplement their income by putting their infrastructure to additional use in lean times such
as opening their library for public use, organising sports coaching, running hobby classes etc.
The Act can be accessed at http://bit.ly/bJ5tfS
3. Derecognition of Deemed Universities

Date of Passing
• Announced in January 2010 basis Tandon Committee’s recommendations.

• 44 deemed universities de-recognised by the Government; prominent names include - DY Patil Medical
College, Kolhapur; Dr. MGR Educational & Research Institute, Chennai; Jaypee Institute of Information
Technology, Noida; Manav Rachna International University, Faridabad; National Museum Institute of the
History of Art, Conservation and Museology, New Delhi.
• Found deficient on many grounds -- ranging from lack of infrastructure to lack of evidence of expertise in
disciplines they claim to specialize in.
• Matter currently subjudice in Supreme Court.

• Uncertainty until the matter in Supreme Court is decided. Little impact in case of a favorable verdict.
• In case of an adverse verdict, the universities that are part of the list would revert to the status of affiliate
colleges of state universities.
• If the university is not able to obtain affiliation to the state university, its operations would be ceased.

• Need to subscribe to the new and more stringent norms being drafted to get the deemed university
status.
• The Government is unlikely to allow any new deemed university to be set up.

• Students in such universities would face some uncertainty with respect to the university they would
continue their education from and in worst case, the university they would migrate to.

• Need to streamline and redefine the ‘deemed university’ status and effectively monitor further requests
for such university.
• Investors of de-recognised institutes stand to lose both credibility and money in the process.
Technopak View
• A noteworthy step in ensuring a certain standard of education delivered by the private universities and
maintaining the value of a university degree.
The Tandon Committee Report can be accessed at http://bit.ly/c2TcI1
4. Foreign Educational Institutions (Regulation of Entry and Operation,

Maintenance of Quality and Prevention of Commercialisation) Bill, 2010
Date of Passing
• Introduced in Lok Sabha on May 3, 2010.
• Likely to be passed by monsoon session (Jul-Sep 2010).

• Allows foreign educational institutions and universities to set up multi-disciplinary campuses in India and
award degrees. The latter is currently not allowed.
• The Foreign institution with intention to open campus in India will have to deposit Rs. 50 crore as the
corpus fund and the surplus generated by the institution cannot be repatriated.
• Foreign institution expected to fund minimum 51% of the total capital to set up the campus.
• Foreign institution expected to follow Government norms for fees, admissions, faculty recruitment etc.
• The Government may not allow an organization engaged in education business for-profit anywhere in the
world or listed on any stock exchange to set up campus in India.

• To face increased competition from foreign institutes.

• To face increased competition from foreign institutes.
• Opens up a huge market for foreign education players looking to tap into the Indian Education Sector.

• More options available in terms of quality of education, value of qualification and the choice of streams.

• Funds recieved by way of corpus can be utilised towards improving the state of education in the
country.
• Eases the pressure on Government to build Higher Education institutions for the huge Indian
population.

• The condition of not being able to repatriate surplus will be a deterrent for those looking at education as
a business and India as a market.
• Rs 50 crore corpus may be too high for some institutes given the investment required thereafter to set-up
the campus.
Technopak View
• The prospective foreign education providers will find it difficult to replicate the research culture and
find globally competitive local teaching resources in India, that these institutions are renowned for
worldwide.
• The proposed legislation does not serve the profit-motive that the foreign institutions will come in for.
Hence the desired quality or number of institutions may stay away.
• Many universities faced major issues in opening overseas campuses in China, Singapore and Israel. This
might further deter them from taking the same risk in India.
• The Government norms that the foreign institutes are expected to follow, may be considered restrictive.
The proposed Act can be accessed at http://scr.bi/bFjArx
5. The Prohibition of Unfair Practices in Technical, Medical Educational

Institutions and Universities Bill, 2010
Date of Passing
• Likely to be passed during the monsoon session (Jul-Sep 2010).

• Prohibits institutions from accepting fees or charges without issuing receipts and mandates them not to
admit any student without conducting admission tests.
• Prohibits capitation fee (directly or indirectly) by the institution as well as the applicant.
• Makes provision for refund of a certain percentage of the fee deposited, if one subsequently withdraws
from the institution.
• Seeks to curb malpractices such as over-pricing of prospectus and barring advertisements by institutions,
among other things.
• Proposed imposition of civil and monetary penalties, which may extend up to Rs 50 lakh for violation of
provisions to be enforced through State Education Tribunals, which are to be established under the bill.


• No longer be able to seek capitation by way of Development Charges and under other heads.
• In future, the resources for infrastructure development would need to be funded completely through
corpus or debt.
• Need to enforce transparency in the admission process.
• Will make it difficult for non-serious education providers who are in the sector only to make money.
• Continuation of the malpractices would become very difficult in future.

• Protects students from cheating and misrepresentation.
• Protects students’ right to refund for services not availed in case a student drops out.

• Requires stakeholders to make other better provisions for the institution.
Technopak View
• A positive step to govern the technical and medical education sector which has evolved on its own
without such governing bills over the last few decades.
• The regulation would help protect the rights of students as consumers and also prevent negative
experiences and disputes between customers and service providers which so far had little opportunity
for redressal.
• Expected to bring in more accountability into the business aspect of education.
The proposed Act can be accessed at http://bit.ly/bg4oy7
6. The National Accreditation Regulatory Authority for Higher Educational

Institutions Bill, 2010
Date of Passing

• Accrediting and rating all higher educational institutions in India.
• Mandatory requirement for every higher educational institute and every programme of study to be
accredited.
• Central and State universities, Deemed universities, colleges and even polytechnics to be covered by the
rating agencies.

• The National Authority — along with multiple rating agencies (which may be private bodies licensed by
NARAHEI) — to develop and regulate the accreditation process. These agencies would be registered
with the National Authority and the apex body would accredit and keep a check on the rating agencies.

• All the institutes to be accredited by an agency licensed by NARAHEI. Currently the institutes can choose
not to be accredited and stay autonomous.
• Every institution to satisfy minimum conditions in terms of infrastructure, teacher-pupil ratio, learning and
research, curriculum, assessment procedures, faculty strength and teaching outcomes.

• Facilitate students in making an informed decision about the services they can avail.
Technopak View
• Accreditation of higher education institutes would bring in more consistency and predictability in the
services provided.
• The gap between the expectations of students and quality of education delivered would be reduced.
The proposed Act can be accessed at http://scr.bi/crtLgY
7. The Educational Tribunals Bill, 2010

Date of Passing

• The Bill seeks to set up specialized tribunals at the Centre and the states for adjudicating matters relating
to disputes in educational institutions.
• It covers disputes between teachers and institutions as well as students and institutions.

• Institutes to have a grievance redressal system in place to resolve disputes for which they had to defend
themselves in civil courts.

• Enables the students to protect their rights and ensure the service delivery is consistent with the promise
made.

• Need to be cautious of delivery of the quality promised and services charged for.

Technopak View
• Inconsistency in quality, over-promise and under-delivery, illegitimate demands by institutions have affected
the industry for long. The legal framework governing the education sector is still evolving. Therefore, there
is a need for a body which can provide quick redressal of disputes and shape the regulations applicable
to the sector as a whole.
The proposed Act can be accessed at http://scr.bi/c9818k
8. The National Commission for Higher Education and

Research Bill (NCHER), 2010
Date of Passing

• It is proposed that NCHER would work as a single regulatory body, and would determine, co-ordinate and
maintain standards in promotion of higher education and research.
• Aims to promote the autonomy of higher educational institutions for free pursuit of knowledge and
innovation.
• Regulatory bodies such as UGC, NCTE and AICTE would be subsumed into NCHER.
• Coverage of legal and medical education in its ambit is currently being debated.
• NCHER would be authorised to prepare a national registry of people eligible for appointment as Vice-
Chancellors.
• NCHER would become the authority to allocate and disburse grants to higher education institutions as
per regulations.
• Powers of civil court would be vested in NCHER.

• All higher education institutes would need to subscribe to the norms dictated by NCHER (other than
those in agriculture/medical education).
• Need to appoint Vice Chancellor or Head of Institution from the National Registry of persons eligible and
qualified for appointment as Vice Chancellor maintained by NCHER.
Technopak View
• While the Bill seeks to promote autonomy, it seems restrictive in the sense that even the Vice Chancellor
will have to come from a specified list drafted by the NCHER.
• Eliminates the need to deal with multiple institutions viz. UGC, AICTE, NCTE etc. thereby making the
process more streamlined.

• Eliminates the conflict of interest vested in the current operations of UGC as both an accreditation agency
as well as the agency to disburse grants to universities (through a separate accreditation bill).
• Centralised regulation of higher education institutions would help bring in consistency and improve the
quality of education imparted.
The proposed Act can be accessed at http://bit.ly/c6sh5g
9. National Higher Education Finance Corporation

Date of Passing
• At the draft stage currently.

• Aims at providing loans for infrastructure development and expansion of educational institutions, as well
as re-finance facility for educational loans for students.

• To get access to a credible avenue to raise funds for infrastructure development.
• Reliance on parallel means including charging capitation from the students would be reduced.

• Students to benefit from low interest rate and easy availability of loans through refinancing of education
loans proposal.
• May also further facilitate loan structuring as per education plan of the student.
Technopak View
• A commendable and thoughtful step to rid the education sector of the fundamental issue of financing
infrastructure development and for students to finance high cost of quality education.
Authors
Raghav Gupta, President | raghav.gupta@technopak.com
Kapil Gaba, Senior Consultant| kapil.gaba@technopak.com

Branding in the T-20 Era

In today’s world, branding plays a critical role across most businesses. Business owners have begun to
place far greater emphasis than before on strategic branding and brand valuations. Slowly, but steadily,
brand-building is being recognized as a science that systematically enhances the reputation of the entire
business – rather than just increasing recognition – through an innovative, creative communication idea.
Some trends that will define new-age branding initiatives include:
Clients will begin to differentiate branding from marketing and communication.

Most clients mistake branding for advertising and marketing, most probably because of that famous
headline for the now defunct A&M magazine that read: ‘Advertising is Marketing’. No wonder the magazine
died, but that apart, this underscores the perennial dilemma for brand professionals – we are mistaken for
marketing or advertising types.
And this is totally off the mark.
Clients will soon begin to understand that a brand has many more dimensions than simply marketing.
Branding concerns itself with a range of issues across the spectrum – issues that include marketing and
advertising. On most of Vertebrand’s brand audit projects for example, the following questions are common:
Is the brand on message? Is the brand in line with the strategy, aims, shareholder wishes and management
objectives? Is the brand appropriately structured? Is the brand platform robust and future-proof? Is the
brand present in the organisation, in its behaviour, at all levels? Soon, clients will begin to regard the brand
as a strategic tool which informs marketing and communications.
There will be less dependence on new heroes and the cult of celebrity.
Too many brands are far too dependent solely on celebrities. A.O. Scott, writing in The New York Times on
November 21, 2007, commented, ‘From Andy Warhol to Lonelygirl15, modern media culture thrives on the
traffic in counterfeit selves. In this world the greatest artist will also be, almost axiomatically, the biggest
fraud.’
In 2010, Indian clients will also begin to realize that using a celebrity to promote a brand demonstrates
a remarkable paucity of ideas on the part of their advertising agencies. After all, in JWT’s definition, a
celebrity is the idea and using the same idea for multiple products, campaigns and brands is fundamentally
boring.
But worse, using truly unremarkable brands like a has-been actor, a rapidly-aging Miss World or a dissolute
prince will have a profound effect on the brand because of the promiscuity that these celebrities demonstrate
in endorsing any and every product. Marketers will need to realise that even star-struck audiences know
they are dealing with people whose endorsement is easily bought.
Brands will therefore have to concentrate on making the celebrities look like genuine users of the product
in question rather than shills. As a result, we will undoubtedly see more product placement in films, on TV
and on the bodies/lips of celebrities – where the use of brands does not make the celebrity appear as a
salesman/saleswoman.
The importance of other means of communication will increase drastically.

Though you can expect the Indian public to be indefinitely infatuated with cricket, a brand manager cannot
be expected to rely only on cricket for all brand communication. But in the short term, it is not going
to be possible for broadcast media to dramatically change their palette of offerings. Every additional
advertisement will therefore be a gamble, particularly in the case of new programs, which are the cheapest
because they have not yet been rated.
Branding in the T-20 Era | 22

In this scenario, direct marketing, PR, experiential marketing, web-based communication, internet
advertising and other, cheaper means of communication will become the order of the day.
Marketers will encourage the transition of broadcast media into brands.

Marketers will need to start pressurising broadcast media to become brands of a particular, focused
description. Currently, there is no differentiation between the various brands of media, barring the very
broad distinctions of general entertainment, sports and news and language variations within general
entertainment and news. Even that distinction is blurred with a general entertainment channel like Sony
broadcasting the IPL. Considering the tremendous financial investment required by brands in these media,
it will soon become evident that these investments require greater justification than is currently available.
There must be a focused target audience for each broadcast media brand that will, in turn, enable media
buyers to more carefully target audiences.
This will undoubtedly lead to a proliferation of media, but this will enable far more focused and targeted
entertainment software, leading to far more focused and targeted communication and, eventually, far more
committed and faithful audiences.
Integrating brands into experience will be important.

Marketing and branding professionals will need to move away from pure selling and understand how to
integrate their brands into a consumer experience. It is no longer enough for consumers to believe that
brands are sincere in their communications; in order to succeed, brand communications must offer some
additional value before the audience will even tune in.
A good example of this is the show American Idol, where Coca-Cola is built into the backgrounds where the
participants sing and are always there in the form of the big red glasses that the judges drink from, apart
from advertising and constant mention from the hosts. This leads to more entertainment and viral value;
the audience sees it as less of a sales message and as a result, it is more credible.
Technology and brands will merge even further.

Marketers will need to break away from traditional forms of advertising and media and promote their
brands in the technology-driven world of mobile advertising, especially among the younger population.
The branding, however, will have to be cooperative and co-branding will become a norm. In addition, the
limitations of the media will need to be taken into account as the communication cannot be through SMS
alone.
More importantly, the form and language of film would not work while communicating through mobile
media, necessitating the invention of new ways. Today, people are trying to replicate the sound of cinemas
by using home-theatre systems to upgrade the sound of their televisions. They would be unlikely to watch
or appreciate movies on the midget screen of a cellular telephone.
Power to the people.

There are increasing opportunities for consumers to be heard. And consumers are now listening more to
the voices of fellow consumers than to marketers. About 66 per cent of the US online population publish
their thoughts and experiences with brands – positive or negative – on a daily basis. It is likely that a huge
percentage of the Indian online population will begin to do the same. Blogs are becoming ever more
popular, communities like Facebook are creating fan clubs or hate clubs and brands will have to take into
account these factors.
Con jobs won’t work either. It would be impossible to start a Facebook club as a corporate or a brand
marketer and not expect to be exposed. When that happens, the negative fall-out would be devastating.
Brands will have to learn how to harness the power of the consumer’s voice to their advantage and at
the same time also remember how unpredictable, unreasonable and downright bad-tempered individual
consumers can be.
23 | Branding in the T-20 Era

Companies will need to use other brands to improve the power of their own.
This will apply to all service brands. In a mall for example, the brands that are sold in the mall will have a
definite effect on the mall brand. But even beyond that, in hospitals, hotels and other service institutions, it
will become necessary to carefully select the brands with which a company is associated. The questions
to consider could be, for instance: Would it make sense for the Taj Group of Hotels to be associated with
a particular brand of soap or shampoo when another brand of soap in their bathrooms might actually
improve their brand image? What brand of television would most aptly match the Taj’s imagery? Suddenly,
the manufacturer offering the best rates on bulk buys of soap or shampoo will not be as relevant as the one
offering the best fit in terms of image and brand values.
Accountability and outcome will be the new critical buzzwords.

The old saying frequently attributed to people – ‘Fifty per cent of my advertising money is wasted. The
problem is that I don’t know which 50 per cent!’ – will turn out to be even more irrelevant. Clients will insist
on financial accountability from their branding partners about the exact achievements of each initiative in
the marketplace.
Further, as so-called ‘below-the-line’ expenditure on PR events increases, there will be increased pressure
to find ways and means of measuring the effects of such initiatives on brand strength and, of course,
sales.
Author
Raghu Viswanath, Managing Director, Vertebrand | raghu.viswananth@vertebrand.com
Branding in the T-20 Era | 24

An Overview
of India’s
Consumer
and Retail
Sectors
A Recap of Events of the Past 27
A Look into the Future 31
Conclusion 32
A Recap of Events of the Past

Impact of Slowdown on Consumer Confidence, Private Consumption &
Organised Retail
India was relatively insulated from the events in the global economy over the last two years. India’s GDP grew
by 6.1 per cent in 2008-09, as compared to 9 per cent plus growth in the previous few years. This growth
was primarily led by government spending and growth in the rural areas. While the impact of the slowdown
on overall GDP was limited, private consumption was impacted substantially. Private consumption growth,
which was largely tracking GDP growth till before the slowdown, took a significant dip on account of poor
consumer confidence. In the first few quarters of 2008-09, growth in GDP came down from 9.1 per cent
to 6.1 per cent and growth in private consumption went down from 8.5 per cent to 2.9 per cent. This dip
significantly impacted the consumer products and retail sectors. Organised retail, which was growing at
over 30 per cent year on year in 2005-06 and 2006-07, slowed down to around 16 per cent in 2008-09.
With the revival of economic growth from the second quarter of 2009-10 (GDP grew by 7.9 per cent), private
consumption growth has returned (grew by 5.6 per cent), on the back on stronger consumer confidence.
As a result, growth in organised retail has returned and we estimate the sector to have grown by 21 per
cent in 2009-10. On the basis of various projections that India’s GDP will grow at over 8 per cent in the
coming years, return in consumer confidence and growth in private consumption tracking GDP growth, we
expect organised retail to see 30 per cent plus growth in the coming years. This trend is already visible and
is substantiated by data in exhibit 1.
Exhibit 1:
Impact of Slowdown on Consumer Confidence, Private Consumption & Organised Retail
33% 31% 31%

29%
27% 27%
25% 25%
21%
16%
9.30% 9.7% 9.1% 8.5% 8.5% 9.0% 9.0%

7.9% 7.2% 8.1%
6.1% 6.1%
7.10% 8.5% 2.9% 7.5% 7.5% 7.5%
6.3% 1.6% 5.6% 7.0% 7.0%
5.2%
FY 2006 2007 2008 2009 2010 2010 2010 2011P 2012P 2013P 2014P 2015P
Q1 Q2
Organised Retail GDP Private Consumption
Source: Ministry of Finance, Technopak Analysis and Estimates Real Growth Rates
Changes in Private Consumption and Retail Growth

Private consumption in India currently adds up to about Rs 34 lakh crore and accounts for ~60 per cent
of GDP. With growth in GDP expected at over 8 per cent, inflation expected at 6-7 per cent, and private
consumption expected to stay at 60 per cent of GDP, nominal growth in private consumption is expected
to be 14-15 per cent. This means a doubling in private consumption in five years time, to reach about Rs
67 trillion by 2015. This provides a very significant opportunity for Indian and international companies to
develop and create large business in the consumer products and retail sectors in India.
27 | An Overview of India’s Consumer and Retail Sectors

The total retail (organised and unorganised) industry in India is currently estimated to be Rs 20 lakh crore.
We project this to reach Rs 27 lakh crore by 2015. Organised retail, which is currently estimated to be Rs
1.0 lakh crore (5 per cent share), is projected to reach Rs 3.0 lakh crore (11 per cent share) by 2015. This
means a tripling of the current size and scale of organised retail in the next five years. While organised retail
will grow at a fast pace, it is important to note that a larger part of the Rs 7.0 lakh crore growth in total retail
will come from unorganised retail. We project this segment (unorganised retail) to grow by over Rs 4.5 lakh
crore in the next five years. Some key reasons for this trend are as below:
• Growth in private consumption in India is so sizable Exhibit 2:
that even with 30 per cent plus growth rates, Projections for Private Consumption and Retail
organised retail will be unable to garner a larger 93
share in absolute terms in the next 5 years.
62
• In certain consumer categories like apparel,
footwear, and consumer durables and electronics,
organised retail has established a strong value 29 27
20
proposition with the Indian consumer. However, 12
0.3 0.9 3
in some very large categories like food & grocery,
furniture and home, and pharma it is not same. Organised Retail GDP Private Consumption
So the same shopper visits organised retail for All values in Rs lakh crore
the former categories and traditional retail for the Source: Technopak Analysis and Estimates
Real Growth Rates & Values, Inflation assumed at average 7%
latter.
• Inherent strengths of traditional retail (entrepreneurial drive, relationship management with catchment,
real estate and labor costs not fully accounted for in P&Ls, flexibility to deliver very small quantities home,
and the MRP regime) coupled with the fact that many mom & pop stores have geared up for competition
from new age stores (through improved store ambience, better product mix and support from brands /
manufacturers in training, retail operations, etc.) puts them on a strong footing.
Given the large share that traditional retail will continue to occupy, especially in categories such as food &
grocery, furniture and home, and pharma, it will continue to be an important channel for consumer goods
companies, and for organised wholesalers (cash & carry).
Growth of Organised Retail: Real or Hyped?

Some recent high profile failures in organised retail Exhibit 3:
have led to a belief that growth in organised retail is Evolution Curve of Various Industries
not as promising as it was believed to be. In order to
take an objective view of the organised retail market
in India, Technopak traced the growth trajectory of
Industry Size
some of the other large sectors in India. The growth

in organised retail is very similar to some of the other
large sectors however, the only difference being that
it not as consolidated as in sectors like Telecom
(where 4-5 players command majority of market
share).Hence, despite a few setbacks Technopak
expects that the organised retail would emerge TO T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 T13 T14
much more stronger than ever before and would IT Organised Retail BPO Telecom
also see significant players emerging in the next few
years.
An Overview of India’s Consumer and Retail Sectors | 28

Exhibit 4:
Consumer Sector in India – Effect of Recession and Recovery
Categories Description Impact of Recession Product examples
Heavy goods intended to last 3 Refrigerators, Washing

Durables Highest impact
or more years Machines, Automobiles
Goods that are neither perishable High impact (dependent on Clothing, Furnishing, Home
Semi-durables
nor lasting discretionary spends) Textiles, etc.
Goods that do not last for long,

Limited impact (due to basic
Non-durables so need be FMCG, Food Products
nature of products)
continually replaced
Services that are Limited impact (necessity based Healthcare, Education,

Services
becoming essential services) Telecom, etc.
FMCG, CDIT and Apparel categories have experienced very different growth trajectories over the last few
years. While CDIT has shown tremendous growth (primarily led by high growth in mobile handsets market),
FMCG which has been a well penetrated market has been growing a stable rate.
Given the fact that the discretionary income of the Indian population is rising at about 15 per cent every year,
one would expect the apparel sector to witness a higher growth. However, the actual growth rate has been
fairly low. We believe that, on a price performance value proposition to the consumer, players in apparel
have not offered the same value as the players in telecom or CDIT or automobiles etc. have. The cost of
laptops (which are in the CDIT category) decreased by about 25 per cent, while the volume increased by
about 76 per cent on a yearly basis. LCD’s showed a similar trend too. In the apparel and home textiles
categories, a smaller volume growth and a higher price growth translating to a low price performance value
to the consumer was observed.
Exhibit 5:
Sector Growth Rates
25%
20%
15%
Growth Rates
10%
5%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(P) (P) (P) (P) (P)
FMCG CDIT Apparel

Thus, the share of wallet appears to have shifted from categories like apparel, home furnishings etc. to
CDIT, automobiles and travel as shown in exhibit 6.
Exhibit 6:
Apparent Shift in the Share of Wallet
Categories Volume CAGR (Last 4-5 years) Per Unit Price Change
Talk time 80% -24%
Laptops 76% -20%
LCD’s 40% -20%
Premium Shirts (Apparel) 6% 15%
Home Textiles 12% 25%
This hypothesis is further strengthened by the Exhibit 7:

fact that post recession, categories like consumer Financial Comparison of FMCG
durables, automobiles recovered the fastest Companies and Retailers (FY09)
whereas categories like apparel, home furnishings
1%
etc. are still to recover completely. Vishal Retaii -4%
8%
Westside 3%
Financial Performance Koutons
22%
Retailers
20%
12%
The financial performance of retail sector vis-à-vis Shoppers Stop 28%
FMCG sector is different. The EBITDA and ROC for Pantaloon Retail 10%
the retail sector is about 10-12 per cent, while for the 11%
FMCG sector, the numbers are higher. Thus ,there 8%

Britannia 25%
is an opportunity for the retail sector to get these
23%
financial metric right. ITC 35%
19%
GSK 38%
The low level of returns in retail is primarily due FMCG
12% Companies
to the high level of inefficiencies at the back end. Marico 39%
Inventory management which is an integral part of 19%
Dabur 48%
any successful retail operation is currently lacking.
32%
A significant amount of capital of an Indian retailer P&G 35%
is blocked in inventory leading to a strain on the 15%
HUL 121%
balance sheet. A comparison of Indian apparel
0 30 60 90 120 150
retailers with international retailers highlights this
point. While gross margins of apparel retailers in EBITDA/Sales ROCE
India are almost similar to any other international Source: Technopak Analysis
retailer, high inventory levels have led to significantly
lower returns.

A Look into the Future

The last decade (2000-2009) has given India the confidence to dream big, and the next one is poised to
bring those to reality. As India enters a new decade of growth there would be significant changes at both
consumption and retail level. Some key themes expected to emerge in next few years which can have a
direct impact on retailers and consumer goods companies include:
Dramatic Changes in the Indian Consumption Basket

Around 4-5 years back, the categories with highest consumption included food, clothing and housing.
Recently, doctor and having healthcare services have become important and have overtaken clothing in
the consumption basket. The new order being “roti doctor kapda makan”.
Categories like education, personal transport, travel and leisure have been witnessing rapid growth.
Categories of apparel, home textiles and housing are expected to move below education as there are
significant changes that are expected in the education sector. As the size of these categories is dependent
upon the consumer’s wallet, it puts pressure on the categories that are not offering competitive price
performance value to the consumer.
For example, our spending on self learning and coaching amounts to about Rs 45,000 crore. The size of the
education market, containing the spending on self learning and coaching as well as tuitions is equivalent
to the size of the organised retail market in India. Thus, the spending on this category is coming from the
same share of wallet. Going ahead it is expected that emergence of new categories would put significant
pressure on some of the categories which lag on price performance matrix.
Commoditisation Trap: Bigger Threat than Before for Brands

Given the changing consumption habits of the Indian consumer and share of categories, we expect that
there would be a new way of classifying the consumption of Indian consumers. On one hand there would
be a need based consumption categories like food and groceries, footwear, textile and apparel and there
would be aspiration based categories like personal transport, health and beauty services, jewellery and
watches. Categories which are mainly need based would see low consumer involvement resulting in
commoditisation of these categories. Low-involvement, in turn, will imply:
• Consumers zeroing on just one or two attributes Exhibit 8:
for taking the consumption decision e.g. just the Commoditisation in the Mobile Phone Market
size of the LCD panel for the TV, just the capacity
Market Share of Spice Nokia Market
of the refrigerator, just the fiber composition of the Local Players Lava Share
Micromax
garment and the confidence in the retailer / brand 20% NOKIA 63% Karbonn 28 18% 64%
etc. 16% 60%
• Consumers will optimize their purchases largely 12% 56%
54% 56%
on simple attributes of price and convenience 8% No. of Players
15
(time efficiency) in order to release more resources 4% 5 52%
(money, time, mental involvement) for the aspiration 1% 3%
0% 48%
/ lifestyle based consumption categories. 2007 2008 2009
Market Share of Local Players Nokia Market Share
• Diminishing power of manufacturers’ brands
operating in such categories. Source: Technopak Analysis
Emergence of private labels and increasing retailer presence across the country would see a rapid
commoditisation across various categories. We are already witnessing a certain degree of commoditisation
in the mobile phone market with the emergence of large number of smaller brands challenging the market
leader. Consumers are also taking their decision based on one or two main factors like price, battery life
etc.

Emergence of New Hot Spots of Consumption

Currently the top 8-10 cities contribute to disproportionate share of the markets in most of the consumer
goods categories. However, going ahead growth in India would be far more exclusive as the new hot spots
of consumption (primarily driven by investments in these regions) appear on the map.
In the near future, investments in mega projects and development of infrastructure is expected to create
“new hot spots” in India. These new centers of consumption would present an opportunity for both retail
and consumer product companies to focus on and derive growth from the consumption potential of these
new hot spots.
Focus on Financial Returns

Last year has been a steep learning curve for the organised retail. Going forward we expect an increased
focus on the financial returns by retailer rather than just the top line. This would imply focusing on
performance improvement through better inventory management, gross margins, improvement through
better sourcing and private label programme. We expect that profitable growth would be the way forward
for organised retail than top line growth.
Revival of Investor Interest

Globally, retail and consumer product industry
Performance Metric Correlation to Value
attracts a large quantum of investments through
private equity. Pre 2008 we saw a number of private ROCE 0.65
equity deals in the retail space. The industry is again Same store sales growth 0.40
emerging as a strong contender for private equity “New” growth 0.20
investments. The recent deals in Café Coffee Day,
Lilliput and successful listing of Jubilant Foodworks (Domino’s) on the stock exchanges have revived
investor interest in the sector.
As retailers look to raise fresh capital, understanding what the markets reward will be the key. Generally,
retailers tend to look at new growth as the key area that they want to take back to investors for valuation of
business.
In the international market, ROCE has the highest correlation with the performance of retail business and
other parameters. The same store sales and the new stores growth comes second. Hence, it would be
very important for retailers to focus on generating returns through better performance and working capital
management.
Conclusion
The events of the last 15-18 months have provided a steep learning for the retail and consumer product
industry. While the last decade (2000-2009) has seen significant addition to consumption and retail market,
it is expected that consumption is likely to double in India over the next 5 years, (nominal growth of Rs 33.75
lakh crore). There is going to be significant changes in the overall consumption basket hence brands in low
involvement categories would be under the increasing threat of commoditisation. Profitable growth would
be the emphasis for retailers and investors in the time to come. We expect that in the next 5-10 years, the
scale of business opportunity and pace of change would be fundamentally different from what it has been
in the past. This calls for almost every company to go back to the strategy drawing board and develop a
vision for the next decade in order to emerge as a successful player in the consumer and retail sector.
Authors
Rohit Bhatiani, Principal Consultant| rohit.bhatiani@technopak.com
Pranay Gupta, Consultant | pranay.gupta@technopak.com

India’s Emerging Hot-Spots

Independent India has had the curious—if not unique—distinction of creating large new cities, usually when
new states are carved out. Today one of the fastest growing economies of the world, India represents an
interesting mix of maturing metros, metros on the growth lane and metros in the making—all contributing
to the economic growth of the country. The scenario, however, was somewhat different a few decades back
and would perhaps not be the same a decade from now.
Earlier, the centres of India’s economic growth were the top metropolitan cities like Delhi and Mumbai. Later,
the Government shifted focus to then smaller cities like Pune, Hyderabad, Bangalore, etc.—the so called
mini-metros of today’s India. As these cities came up on the radar of many private and foreign investors,
the cities become the top destinations for large-scale infrastructure investments, followed by developments
in retail, real estate, and social infrastructure like healthcare, education, etc. for over a decade now. But
with their rising population, growing urbanisation and scarce resources, even these mini-metros have
become saturated, creating the need for alternative smaller cities, i.e. tier II and III cities, for investment.
Most important of all, though, is that the Government has realised it must play a primary role in responding
to the need for new cities in India.
Thanks to the Government’s policies of infrastructure-led growth for the country, over the last few years we
have seen the launch of many ambitious projects, such as the golden quadrilateral and the EW and NS
express corridors to improve road connectivity across the length and breadth of the country and the SEZs
to further boost the economy of various states.
Many metros and mini-metros that are well connected by these road projects have already benefitted
immensely with the spurt in investments from private players and foreign investors in various sectors. The
smaller cities/towns in the influence area of these projects are not left behind and are also set to witness the
same trend and become cities of the future. One such example is Dholera, a greenfield city at 900 square
kilometres. Located in Gujarat along the Delhi–Mumbai Industrial Corridor (DMIC), it is envisioned to be six
times bigger than Chandigarh.
Quite recently, when Technopak tried to take a bird’s-eye view of the size of current and planned investments
in mega projects across the country based on the information available in the public domain, some
interesting facts came to light.
• Close to Rs 14 lakh crore (approx. US$ 304 billion) worth of investment is planned across more than
600 mega projects spanning a multitude of sectors—government mega projects, steel, automotive and
education sector, urban development projects, theme and mega cities, ultra mega power projects, ports
and airports, and SEZs (including textiles, chemicals, electronics and hardware, food and agro, gems
and jewellery, pharma, etc.). This excludes investment on road projects.
• Of a total of 5,464 blocks that span Indian states and union territories, this investment of Rs 14 lakh crore
targets just 340 odd blocks. Of course some blocks and therefore the states they fall in are bound to gain
a higher share compared to others.
Forty years ago, the great steel plants forged Bokaro, Bhilai and Rourkela, successors to older,
industrialisation-led agglomerations such as Jamshedpur, Burnpur, Durgapur and Modinagar. Today
petroleum, steel, cement, infotech, auto and other industries are spurring town-to-city transformations,
conurbations and extensions, if not always new cities. As true for any region attracting mega investments,
the landscape of these 340 blocks, too, would undergo a dramatic change in the years to come. Gurgaon
is a perfect example to understand the impact that infrastructure investments have had on the economic
growth of a region.
33 | India’s Emerging Hot-Spots

Till the 1980s, Gurgaon was simply a small town Exhibit 1:

located at the borders of the Indian capital, Delhi. Spread of Hot-Spots Across India
But the establishment of the Maruti Manufacturing
Plant in 1981 and then the Hero Honda Plant in 1997
not only changed the face of the town but further
attracted many auto-ancillary players. The economic
growth and infrastructural development projects—
road, railways or airports—in Delhi also had a ripple
effect on this satellite town. Increasing urbanisation
and congestion in Delhi coupled with improved
road-connectivity, thanks to the development of
NH8 and the Gurgaon–Jaipur expressway, provided
a fillip to Gurgaon’s development. It caught the eye
of investors and attracted investments in multiple
sectors ranging from the automotive, IT and ITES,
real-estate, retail, and hospitality to education and
healthcare.
50-10,000 crore
The rapid pace of investments and growth over the 10,000 -20,000 crore
last decade has put Gurgaon on the global map 20,000-30,000 crore
and it is today even called the ‘Manhattan of India’. 30,000 crore+
A huge number of multinational companies choose
to locate their operations in Gurgaon. Other satellite
towns of Delhi such as Noida, Ghaziabad, Greater
Noida and Faridabad have also experienced a
similar impact, although of varying degree.
It would be interesting to track the growth trajectory of the small towns that fall within these 340 investment
hubs, as many of those towns are bound to emerge as the future hot-spots of India. Some of these towns
may even grow at a GDP higher than national or state averages. In just about a decade, Gurgaon has
become the industrial and financial hub of Haryana and also has the 3rd highest per capita income in India
after Chandigarh and Mumbai.
It would be again noteworthy for retailers as well as manufacturers and marketers of consumer product
companies that are always on the lookout for newer markets or potential hubs for consumerism, to
understand the implications these investments will have on the economic growth of these 340 hot-spots
and even their nearby towns and villages. These hot-spots are going to bring to the forefront the next
wave of new cities that real-estate developers, healthcare and education providers, consumer product
companies as well as retailers would be interested in looking at in order to gain ‘first mover’ advantage and
a foothold in the market.
Author
Veenu Sharma, Senior Consultant| veenu.sharma@technopak.com
India’s Emerging Hot-Spots | 34

Trends in
India’s
Domestic
Fashion
Market
Trends and Business Opportunities in India’s
Domestic Fashion Market 37
The Growth Story of Sports Brands in India:

‘Sports-Inspired Casual Wear’ 39
Brands Eye the ‘Affordable

Luxury’ Segment 42
Women’s Ethnic Wear: Contemporising

Indian Wear to Capture a Larger Market 44
Growth of Over-the-Counter
(OTC) Fabric Market 47
Kids are the New Shoppers 50
‘Pop Up’ Retail Concept: Temporary Stores

to Attract Consumers and Create a Buzz 53
Summary 54
Trends and Business

Opportunities in India’s
Domestic Fashion Market 01
The Indian textile and apparel industry has witnessed Exhibit 1:
tremendous growth in the last 2 decades and its Overview of Indian Textile and Apparel Industry
market size today stands at US$ 67 billion. India
has positioned itself as a manufacturing destination Indian Textile and Apparel
2009 (E)
with cheap labour, cotton-based raw material and Market
easy access to US and Europe markets. With the (Rs. 3,01,500 crore)
abolition of quotas, India surged ahead of other
non-competitive countries and positioned itself as
Domestic Market Exports
a value-added manufacturer with a varied material (Rs. 2,02,500 crore) (Rs. 99,000 crore)
base, an educated and English-speaking class
of executives with high product development and
design orientation. While textile and garment exports Textiles Apparel Textiles Apparel
(Rs. 54,000 (Rs.1,48,500 (Rs. 54,000 (Rs.45,000
have been growing at an average pace of 8 per crore) crore) crore) crore)
cent, it is the domestic market that presents itself as
a larger opportunity, hence firing the imagination of All the figures in Rs crore
manufacturers, entrepreneurs and marketers. The Source: Technopak Analysis estimated exports for 2009 values rounded off
Indian domestic apparel market size is US$ 33 billion
of which only 16 per cent is organised.
A number of factors are expected to fuel the growth of the domestic market in spite of the many challenges
faced by this industry. Growth drivers include increased incomes, high growth of GDP leading to rapid
urbanisation, growth of organised retail with the entry of a large number of domestic and international
players, and a growing awareness of global trends along with the need to look fashionable.
Through our work in the textile and apparel sector, we analyse a number of trends which represent
opportunities for companies already in this space or planning to enter it. Based on the Indian consumer’s
current needs and aspirations, this article covers six categories which may have been present for long but
now present a bigger than ever canvas for companies to expand in or to enter for the first time.
We look at sports brands like Nike, Reebok and Adidas—how they changed their product mix in India to
include more casual wear after realising that the Indian consumer, lacking options, opts to wear their apparel
for ‘everything outside office’. They positioned themselves more as lifestyle apparel than as a pure sports
brand. Now, with growing consumer interest in fitness, they offer a wide variety of fitness apparel/footwear
options. We take on the positive effects of the entry of international brands—the concept of ‘affordable
luxury’ which acts as a bridge between mid-premium and luxury presents the perfect opportunity for brands
to take consumers to the next level of spending.
We also cover notable changes in the women’s category by presenting the story of how women’s ethnic wear
is constantly innovating itself to capture the mind of the Indian woman and how brands can increasingly use
this as an opportunity. Another related trend is the growth of over-the-counter fabric comprising unstitched
ethnic wear, trousers and shirts. In spite of migration of consumers to ready-to-wear apparel, this category
constitutes ~23 per cent of the Indian apparel market size, growing at a steady rate of 5 per cent and
witnessing the entry of some large players. We also explore the kids’ category, which is expanding due
37 | Trends in India’s Domestic Fashion Market

to the increased needs of both indulgent parents and decisive kids. This presents a large opportunity
for specialty kids’ stores with an expanding product range. With the increase in number of school-going
kids and the new-age concept of international schools, uniforms are another area which presents a large
opportunity to become organised. Last, we cover a unique concept called ‘Pop-Up Retail’ which presents
an interesting and out-of-the-box marketing concept for brands wishing to introduce customers to their new
product/range.
Trends in India’s Domestic Fashion Market | 38

The Growth Story of Sports

Brands in India: ‘Sports
Inspired Casual Wear’ 02
The term sports wear brings to mind the image of an athlete or sportsman. However, it is interesting to
map the growth of Nike, Reebok, Adidas, Puma and Lotto—iconic, global sports footwear brands—over
the last few years in India as they have expanded what was traditionally the sports category into a larger
category called ‘sports-inspired casual wear’. These brands together have captured a large part of the
casual wear branded ‘apparel’ market with consumer recall for them as brands worn for ‘everything outside
office’. This coincides with a shift in the Indian consumer lifestyle to greater fitness awareness and health
consciousness, thus paving the way for these brands to benefit from the prevalent consumer trend. With a
well established distribution network and strong brand presence, these brands are upgrading consumers
to newer concepts of fitness products, including special shoes for jogging, rock-climbing or gym-use, dry
fit t-shirts, breathable apparel for active sports like football, swimming, etc.
In this article, we outline the growth drivers for the growth of such ‘sports-inspired casual wear’ brands,
understand their India growth stories and how sports retail will evolve going forward.
Sportswear Brands in India: Understanding their ‘Casual’ Strategy

The premium sportswear market in India is dominated by global brands like Reebok, Adidas, Nike and
Puma, with a collective market share of 84 per cent. Over the last 3-4 years, sportswear brands have tried
to transform themselves into lifestyle brands. Almost all the brands are investing to orient young consumers
to their brands as they understand that the potential for sportswear will be very big in the coming years.
Reebok is a good example of a brand which used its early mover advantage to penetrate into the casual
and sportswear category through aggressive advertising and its marketing campaign. Reebok’s Lifestyle
line targets the consumer interested in wearing a sports-inspired product without stepping into a field, court
or track. About 80 per cent of Reebok customers in India have purchased something from the urban casual
Lifestyle line. Reebok has a junior collection of athletic and casual shoes and apparel, sold at its own junior
stores, which is designed to tap into India’s massive youth population both on and off the field. Reebok
India sold approx 3 million pairs of shoes and ~8 million pieces of apparel in 2009. Other brands are also
following suit by signing top actors and models to gain higher visibility.
Puma is focused on being categorized in the ‘lifestyle’ brand as a ‘sport-lifestyle’ brand and not as a mere
sportswear brand. It is engaged in the development and marketing of a broad range of sports and lifestyle
goods including footwear, apparel and accessories apart from apparel. Its mission is to become the most
desirable sports lifestyle company in India.
Adidas has also recently launched a new brand called S&N, which aims to be a fusion of lifestyle and
sporty edginess, reconfirming the trend that most brands see themselves worn not as high-performance
sports wear, but more as a lifestyle casual wear category.
The above statement is reiterated by looking at the breakup of sales for these brands (exhibit 2). It is not
surprising then that more than 50 per cent sales for these brands in India comes from apparel and the
balance is split between footwear and related accessories.

Exhibit 2:
Comparative Analysis of Industry Players
800 Growth in Store Number 720

Share of Apparel in 675
Retailer India Entry 700
Total Sales
600 505
Reebok 1995 50% 500 450
360
Adidas 1996 45% 400 325
300
Nike 1995 40% 180 200
200 165
100
70 50
Puma 2002 30% 100 36
7 14
0
0
Source: Primary Research, Technopak Analysis Reebok Adidas Nike Puma
Main Growth Drivers for the Industry

While the brands have expanded their product mix Exhibit 3:
Growth Drivers
to include a larger part for apparel to suit Indian
consumers’ casual needs, simultaneously, Indian Indian getting more
Greater influence of Aspiration look
consumers are also becoming more health and health conscious
health and fitness like their favorite
and taking preventive
fitness conscious than before. They aspire to look actions
publications sportsman
and feel good by exercising, taking up active sports
Increase goverment
and experiencing the outdoors through treks, initiative in sports
Desire to be fit for Non-cricket sports
climbing, camping, etc. We expect the health and infrastructure
social acceptance also getting popular
fitness category, which is currently in a nascent and corporate
sponsorships
stage, to see more spending in the coming years.
Another growth driver for sports categories is the interest in sports. While cricket is still the most dominant
sport, it has also seen great changes in the recent years, especially with Indian Premier League (IPL) which
has commercialised it even further. India’s performance in wrestling, boxing and shooting at the Beijing
Olympics as well as hosting the 2010 Commonwealth Games, have rekindled interest in many other sports
categories like swimming, football, shooting, etc.
With these growth drivers and the increased spending power of consumers, retailers are developing
sports goods with very specific offerings. Adidas will be launching 95 products related to football including
apparel, footwear and protective gear this year. Reebok has come up with a variety of new and specialised
offerings in the shoe category and will also launch affordable soccer shoes for kids and adults in the Rs
2,500–3,500 price range.
Premium Sports Market in India: Current and Going Forward

At present, the premium sports goods retail market (apparel and non-apparel) in India is approximately Rs
2,525 crore of which ~45 per cent is the sports apparel market. The total market is expected to grow at a
decent annual rate of 13 per cent to reach ~Rs 12,000 crore by 2020.
With such a large market and high growth going forward, this is the perfect stage for sportswear retailers
to enter the segment or to expand their existing portfolio.

Exhibit 4:
Premium Sportswear Market Size

14000 30%
Premium Sportswear Market 12195
Market size (Rs crore)

Rs 2,525 crore 12000 25%
10000
20%
8000 6570
Growth (%)
15%
Sports Sports Apparel 6000
Footwear Market Market 4000 2520 10%
Rs 1,400 crore Rs 1,125 crore 2000 5%
(55%) (45%)
0 0%
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
However, to truly tap into this opportunity, the consumer needs to be initiated and his awareness regarding
fitness, sports equipment and sportswear needs to be improved. The very idea that different sporting
activities require different types of shoes is still not well established in India. There are no ‘footwear
specialists’ to guide consumers about shoe types specific to their requirements.
The consumer is ready to make the move to high-performance sports options, it is now up to brands to
make use of changing consumer habits and introduce products to suit their aspirations.

Brands Eye the ‘Affordable

Luxury’ Segment 03
‘Brand’ is almost an overrated word now; it’s not enough for Indians any more to just be wearing something
with a recognisable name tag. With increase in purchasing power and options available in the market, the
consumer is going through a natural progression, fast moving up from a lower segment to a higher one.
Availability of adequate upgrade options in super premium and affordable luxury segments today has
helped these segments to grow in most categories. With the emergence of a new class of very affluent
young Indians, who are ready to spend money to be considered classy and elite, India is no more a testing
ground for premium and luxury brands, but a lucrative market with explosive growth potential.
Exhibit 5:
Luxury Market in Developed and Developing Countries
Country Europe Japan China China India
GDP 72,855,000 22,464,000 21,748,500 5,706,000 5,332,500
Luxury Market 495,000 90,000 38,250 29,250 6,300
Luxury Market as 0.68% 0.40% 0.18% 0.51% 0.12%

% of GDP
All figures in Rs crore

Source: IMF Industry Report
A few product categories, especially accessories like Exhibit 6:

watches, sunglasses, bags, etc. are good examples Progression of Watch Retail in India
of how the retail market has thrown up various options Luxury
14% of total market
for upgrading consumers and how consumers on >Rs 22,500
Affordable
their part have boldly upgraded themselves. Till a Luxury
few years back, time-wear was dominated by home- (Rs 9,000
grown brands or brands targeting the mid-market, like Super to 18,000)
Premium
Times, Citizen, HMT, Sonata, Timex, etc. The brand (Rs 4,000
Titan, and its select few products were considered to 8,100)
Premium
aspirational or premium as an exception. With rising (Rs 1,800
incomes and a growing population, brands started to 4,000)
to realise the huge potential of the market and the Value Brands
(Rs 450
consuming class decided to capture the buoyancy to 1,350)
in premium retail business in India. It was the entry of Unbranded
Esprit time-wear in India in 2005 that revolutionized (Rs 225
the Indian watch industry. A watch is now considered to 360)
a fashion accessory and the brand name a fashion Increasing Income

statement—consumers have been able to move up Source: Technopak Analysis
the value curve by buying watches in the range of Rs
4,000 to Rs 20,000. Many international brands are positioned in the super premium to ‘affordable luxury’
segment, as seen in exhibit 6.
The case of sunglasses is similar. Traditionally in India this category has been very unorganised and
dominated by non-branded products. While Ray Ban is the only eyewear brand name which can be

remembered from earlier days, the market now has innumerable names to choose from: Polo Ralph Lauren,
Police, Oakley, Bvlgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Prada, Versace, Polaroid, etc.
Sunglass Hut is one such international retailer who, under a franchise agreement with DLF brands, is
selling all these brands under one roof in India, offering today’s spendthrift consumer a similar international
experience. Exhibit 7:
Expected Progression of Branded Apparel
However, it is to be noted that consumers find it Retail in India
Affordable
easier to upgrade to higher-priced products for Luxury
watches and sunglasses since there is a longevity >Rs 2,500
associated with these products. The same, however, Super
Premium
cannot be said for apparel, which is highly fashion- (Rs 1,600
driven and has a shorter life span, making it harder to 2,500)
Premium
for consumers in India to upgrade. Comparing (Rs 700
?
India with other developing markets like China also to 1,500)
Value Retailers
reconfirms that their spending patterns on apparel (Rs 270 to 500)
differ a lot. The Chinese spend nearly 10–11 per cent
of their household income on clothing, while Indians
Unbranded
still spend only between 5–6 per cent on clothing. Rs 225
Indians tend to spend more on transportation,
Increasing Income
communication, education, homes, etc.
However, this space is fast being populated by international brands which have learnt that consumers need
to be offered entry level products to help them upgrade from premium to super premium to affordable
luxury brands. This is the reason Esprit, Tommy Hilfiger, Lacoste, and Benetton have all reworked their
pricing in India to be lower than what it is internationally. Brands like Esprit and Tommy constitute the
super premium segment and have introduced entry level products at lower prices so that Indians can try
their product instead of categorising them as international high-priced brands. In the ‘affordable luxury’
segment, Lacoste and Promod are two brands that have positioned themselves well. Interestingly, Hugo
Boss has introduced Hugo Boss Red, which is lower priced and has helped them gain visibility as an
‘affordable luxury/ brand for consumers to upgrade to.
It can thus be safely said that while the purchasing power exists, consumers are unable to spend on luxury
goods primarily due to limited upgrade options. These consumers are still very ‘value conscious’ and
discreet and prefer to shop for the same brand at an overseas store due to availability of superior quality
and more variety than India.
Going forward, we expect these international luxury brands to introduce bridge/semi-premium lines for
greater penetration or introduce more brands from their umbrella in different segments or through different
routes. In this scenario, it can safely be assumed that the availability of greater variety and brand names
will definitely act as a medium to graduate the Indian consumers from the current mid-segment to super
premium and affordable luxury brands. The super premium and affordable luxury segment as a category
has big potential for brands having patience, readiness to operate on a longer breakeven period and a
long-term strategy to create a unique brand identity in the Indian consumers’ mind.

Women’s Ethnic Wear:

Contemporising Indian Wear
to Capture a Larger Market 04
Much has been said about the advent of Western Exhibit 8:
culture and its impact on Indian clothing. The Western Market Share of Women’s Ethnic Wear
style of dressing has made a remarkable impact on 30000 27,000
the Indian fashion industry. Although Western wear 25000
like jeans, tops and evening dresses have become 19,000 18,800
20000 17,000
favourites amongst the young generation, ‘Indian 15,000
wear’ has remarkably stood its ground all this 15000 11,700
9,700 10,200
time through sheer popularity and by successfully 10000
contemporising itself. There has been an emerging 5000
trend of customising Indian wear by going back to
0
basics and yet making it look trendy and comfortable 2007 2008 2009 2014E
in its fit. More and more brands, retailers and Women ethnic wear excl. sarees Sarees
designers are contemporising Indian wear to suit All figures in Rs crore
current requirements. Source: Technopak Analysis
The current market of sarees and ethnic wear stands at ~Rs 31,000 crore and is projected to grow at 10
per cent to reach ~Rs 45,000 crore in 2014. Major growth is projected in the saree segment with the revival
of sarees in new and more innovative formats and with new styling, fabric and fits for salwar-kameez and
dupatta. Brands are trying to create a fusion of Western and Indian patterns and designs of the traditional
sarees. In this article, we chart the story of ethnic wear in India and how it is here to stay.
Growth Drivers
Traditional ethnic wear comprises primarily sarees and salwar kameez and dupatta (SKD) and other regional
attire. There are a number of factors that catalyse the growth of ethnic wear.
Increasing workforce impacting women’s Indian wear

There is a rise in the awareness and purchasing power of the middle class due to the boom in the service
industry. The majority of India’s female workforce still prefers to wear the traditional Indian SKD to work. The
size of the organised female workforce has increased from 5 million (4 per cent) in 2001 to 7–10 million (4–6
per cent) in 2010. Therefore, the size of the market for women’s Indian wear has increased and is likely to
do so in the future as well.
Food trends and the changing anatomy of Indian wear

Fast food culture, overeating, eating at odd hours has led to a change in the physical attributes of people
in general. Fashion has also managed to target the so-called obese/ overweight strata where the demand
is remarkable, with plus-size fashion gaining importance. The market for such brands is growing by the
day. Brands like All, Revolution and Lakshita are some pioneers offering Indian, Western and Indo-Western
outfits in this segment. They realized well in time the scope of such products.

Personalised styles and cuts

The India wear still gives a lot of flexibility in terms of getting personalized designs, cuts and styles made.
Western wear is limited to the available stock in ready to wear category. But the Indian ethnic and more
specifically the salwar kameez dupatta (SKD) can be tuned to one’s design sensibility and more importantly
fitting.
Traditional occasions
Indian wear is still the most preferred choice for any traditional occasions like marriages and family functions.
In spite of the big influence of Western wear, a majority of women still have a large representation of ethnic
wear in their wardrobe for various occasions. In fact, the willingness to spend has increased all the more
with different traditional and contemporary designs being offered.
Current Market Scenario

The current Indian ethnic wear market is highly unorganized with a few branded players operating primarily
in metropolitan cities. The organised sector has players like W, Biba, Fabindia, Tacfab, Hakoba, Prafful,
Vipul, etc. catering to the low to mid segment. Satya Paul, Anokhi, Meena Bazaar, CTC cater to the premium
and super premium segment.
What is interesting to note is that most of the above retailers have been able to maintain the interest of
the modern Indian woman by offering modern prints, designs and fits. Like other items, sarees have also
evolved. While traditional regional sarees like patola, kanjeevaram, kantha are still popular, contemporary
sarees with prints, embroidery work, chiffon sarees with borders, net sarees with extensive gem work have
also caught on as a reflection of the grandeur of movies. Satya Paul was amongst the first to come out
with prints on sarees which are abstract, geometrical and completely in sync with print forecasts. Today,
retailers like Meena Bazaar and CTC keep pace with the most important trends and have new collections
every season. Brands like Anokhi and Fabindia have greatly helped in popularising ethnic apparel which
has been sourced from handloom clusters following traditional methods of vegetable dyeing, block printing,
etc.
The changing face of SKD is perhaps the biggest success of this category through the fusion of fabrics,
prints, styling and fits. Almost 10 years ago, Shoppers Stop changed the way we buy SKD by offering mix
and match options. Then we saw the advent of the kurti which was traditional in its look, but could be worn
well with trousers. It is here to stay with the options it offers. The last 2–3 years have seen the introduction
of lycra churidars which offer better fits and comfort than the traditional options. They have become
tremendously popular and have revolutionised a garment which was essentially stitched into something
that is picked off the counter. W has offered a merchandise mix with many interesting combinations of knit
kurtas with traditional prints/ embroidery – clearly a fusion of our heritage in new fabrics.
Opportunities in Womens Ethnic Wear

Going forward, there is a lot more that can be tapped in this reviving market. The very first opportunity
comes from making an entry as a big branded retailer of traditional wear. Except brands like W and Biba
which have a pan-India presence, no brand has been able to spread beyond its region. In the absence
of any player in the mid to super premium segment, there is a lot of potential demand in this area. The
opportunity lies in bringing to the forefront our centuries-old heritage and culture in the form of traditional
attire. Different regions of our country have different things to offer like mirror work, chikan work, tie-and-die,
phulkari prints, etc. Designers and retailers can revive the traditional work done by artisans with a touch
of big prints or latest styles and cuts. These designs can be used to contemporise traditional Indian wear
and repackage basic things in a modern format. The fusion of all such work can be showcased under one
roof. Fusion concepts of kurtis, harem pants can be taken forward to create kurtis with knitted fabrics or
chudidar/salwar with stretchable material. The Indianisation of Western wear makes it trendy and easy to
handle. This appeals to youngsters and working women alike.

Another very interesting idea can be a ‘marketplace concept’ like Dilli Haat where artisans can be invited
from all over the country to showcase their talents. While Dilli Haat is a government initiative, it has great
scope as a concept for a private retailer or a mall developer who can take the initiative to get artisans
together, imparting a certain design direction to their work to modernise it and then showcasing a new
collection to the consumer every few months.
Challenges for Ethnic Wear

In spite of the growth factors in the sector, there are a few challenges that market players need to be aware
of before entering the market.
A good fit is important

The body sizes of Indian women vary a lot across different age groups and regions. For example, North-
eastern women are comparatively slimmer than women in north Indian states like Punjab or Haryana. A
proper fit of ethnic wear is very important to suit customer requirements across segments. Feasible research
on the target segment, well-trained designers and other local requirements need to be addressed.
Competition from unorganised market

Since the organised market for Indian ethnic wear is still not very big, there is direct competition from the
large unorganised sector. Most offerings come from regional stores in different localities, as they are better
able to sell products to meet customers’ requirements.
No unified fashion across diverse regions

One has to be very careful of the trends prevalent in different regions. A country of India’s size and diversity
poses a challenge. Designers and market players must understand all these varied trends and come out
with a line of desired products.
Given its flexibility, comfort and traditional appeal, Indian ethnic attire is very much in demand and the
market for it poised to grow. Organised players and designers can tap into a lot of opportunities by coming
out with a fusion of basic, traditional yet modern styles. Brands can revive age-old prints and traditional/
regional apparel further to meet the growing demand from both national and international clients.

Growth of Over-the-Counter
(OTC) Fabric Market 05
Keeping the Neighbourhood Tailor Afloat
During the last decade, we have witnessed a big market share shifting towards the ‘Ready to Wear’ (RTW)
apparel category. There has been a visible migration from tailored clothing to readymade garments due
to the launch of brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England, Arrow, Koutons,
etc. Factors like easy availability, variety of colours and styles, etc. gave consumers a reason to shift
their preferences. The RTW comprises approximately 77 per cent of the apparel market while OTC fabric
constitutes the balance. However, the demand for OTC fabric is still large and growing at an annual rate of
5 per cent, contrary to what most market analysts had predicted for this category due to the rapid increase
in Ready-to-Wear apparel. It negates the popular perception that all the growth is only in the RTW category
and the share of OTC fabric has shrunk. The OTC market is also termed as the ‘Ready-to-Stitch’ (RTS)
market.
We summarise here the Technopak analysis and insights into how the OTC market is growing. While
worsted and polyviscose fabric is mainly meant for the formal suit market—which is also growing, we have
explored the opportunities in the everyday wear cotton and cotton blends categories, such as fabric for
salwar kameez dupatta (SKD), shirts, pants, etc.
Overview of Indian Apparel Market

Out of the total Indian apparel market of ~Rs 1,54,000 crore, the ready to wear market totals ~Rs 1,19,500
crore and is expected to grow at a compounded annual growth rate of 9 per cent. Most of the urban
population today prefers RTW apparel as it saves the time and effort of getting it tailored.
Exhibit 9:
Comparison in Market for Indian Domestic Apparel : 2009 vs 2015
2009 2015
CAGR 2009-15 (%)
Value ( Rs Crores) Share (%) Value (Rs Crores) Share (%)
India Domestic Apparel
1,54,250 2,43,300 8
Market
RTW 1,19,500 77 1,96,500 81 9
RTS ( OTC Fabric ) 34,750 23 46,800 19 5
Shirtings 11,900 34 14,150 30 3
Trousers 10,400 30 13,000 28 4
SKD* 9,800 28 14,900 32 7
Others ** 2,650 8 4,750 10
* Salwaar, Kameez, Dupatta **Other OTC fabric covers : Suiting, Kurta pyajama fabric etc.
Source : Technopak Analysis

Growth of OTC Market Exhibit 10:

Growth Drivers of OTC Fabric Market
In India, the OTC fabric market totals approximately Growth in the indian population(age>40 years) that prefers RTS wear
Rs 35,000 crore, most of which is still unorganised. Greater consumption potential for RTS in rural India
But many organised players are looking towards it Fast growth in the plus-size population in India
and gradually entering this market. In spite of direct
Price differential between RTS(ready to stitch) and RTW(redy to wear)
and stiff competition from the ‘ready to wear’ category, has been growing
the OTC fabric market is growing as it allows for
Increasing women workforce driving growth of SKDs
comfortable fits, lower prices, and personalised cuts
and designs. Source: Technopak Analysis
Growth in Indian population that prefers RTS wear

The majority of the Indian population aged 40 years or above still prefers RTS fabric as it ensures the
comfort and personalised fit and style they seek. This bracket of population is growing at a pace of about
3 per cent, giving an impetus to the RTS market.
Greater consumption potential for RTS in rural India

It is also observed that rural consumers are shifting from traditional attire like dhotis to more Western
garments like trousers and jeans. In this scenario, they prefer RTS over readymade garments due to price
and availability issues. Exhibit 11:
Growth in Plus-size Population
Fast growth of plus-size population Plus-size % of Indian population
The trend that is fast emerging is of the growing obese
population in India. Around 8 per cent of the Indian
population (96 million) is considered obese and Plus
Rest 92% size
with this is further growing with changing lifestyles. 8%
Plus-size clothing in RTW is not readily available for
this category. But the current market of ~Rs 11,000
crore is virtually untapped by the RTW segment. The
Share of plus-size is expected to grow
ready to stitch segment is effectively catering to their providing additional opportunities for RTS
needs.
Price inflation differential between RTS and RTW

Another aspect is the better value realisation associated with RTS. The cost of branded readymade garments
is often escalated due to brand name, design, distribution network, etc. These aspects are irrelevant in the
RTS category and hence it is more cost-efficient. For example, if you get one premium pair of trousers
stitched and another ‘readymade’, the price of the latter would be Rs 500 to 800 higher than the former.
Growth of Salwar Kameez Dupatta (SKD) market

With an increase in the number of working women and with ethnic wear still the preferred choice for many of
them, the SKD market is set to grow. Apart from this, an important reason for RTS preference is that it gives
a better fit. India is a diverse country, with varying lifestyles, preferences and body sizes. In the absence
of perfect fits in the RTW collection, people look to the RTS category. Better design flexibility is also an
important aspect. The majority of women aged 30 years and above still prefer to get their salwar kameez
stitched to ensure personalised designs, colours and fabrics.
Despite these positives, market players must be cautious in light of the threats associated with this
market.
• Increasing penetration of RTW brands/retailers in smaller cities
• Growth of value apparel retailers and hypermarkets in India
• Growing popularity of casual wear

Retailers such as Big Bazaar, Westside or Pantaloons, that offer RTW apparel at competitive prices, are
gradually increasing their reach in smaller cities. With rising demand and awareness, the consumer is also
shifting more towards the casual wear category. Our studies show that casual wear segments are expected
to grow between 10–15 per cent vis-à-vis 9 per cent growth in the Indian apparel market. The woven RTS
market may be affected due to the competition from knitted garments.
Players in the OTC market in cotton and cotton blends

The market is currently dominated by a few big players like Arvind Mills, Raymonds, Donear, etc. that offer a
range of products for the mid to premium segment (average shirting price Rs 150). Most of the big players
create finished fabrics and distribute them over the counter at retail outlets across India, in all the 29 states
and seven union territories. They interact regularly with the retailers, along with routine market surveys in
terms of designs, colours, textures, etc., to guarantee a quicker and a firsthand feedback that results in
offering fabrics to customers as per the trend.
Arvind Limited launched its range of pre-treated Exhibit 12:

‘ready-to-stitch’ (RTS) denims under the brand Comparative Analysis of Industry Players
name of ‘Arvind Intellifabrix’ in Ahmedabad. This Company Product Mix Positioning
was in response to the demand for denim fabric for
Arvind Shirting , Trousers Market leader
the masses, especially to suit Indian body sizes and
Shirting (25%), Selling surplus in the
to be comfortable as both work-wear and casual Alok
Trousers (75%) domestic market
apparel.
Shirting (60%),
Century Entered OTC 1 year ago
Trousers (40%)
Grasim Industries entered the market of fabrics for
Entered recently in
women, with its concept of RTS formal wear. Since premium category:
Forbes Gokak Trousers (100%)
the number of working women in India has gone up exclusively 100% cotton
significantly, the demand for ready-to-stitch formal trousers
wear has gone up too. SKNL Shirting Shirting manufacturing
Sarees, RTW SKD,
Leading brand – present in
A number of players like Forbes Gokak, Century Biba RTS SKD, Mix ’n
exclusive outlets
and SKNL have recently made a gradual entry in Match
the market. SKNL has started the manufacturing of Looking to establish pan-
Tacfab Sarees, SKD
India RTS brand
shirting a few months ago and is catering to the mid
to premium segment. Century is focusing on shirting Source: Primary Research
more than trousers.
The SKD market is still fragmented and highly unorganised, with hardly any key players having a national
reach. Organised players are mostly regional brands like Supertextiles, Tacfab, Hakoba, etc.
The sheer size of the existing OTC fabric market coupled with the fact that is expected to grow further at
a growth rate of 5 per cent provides an opportunity for existing players and new players in this segment.
Another area of opportunity is the lack of a well-established brand in this segment. While Raymond, Siyaram,
Grasim, etc. constitute the worsted and polyviscose suiting brands, there is no fabric brand in the cotton
and cotton blend category.

Kids are the New Shoppers 06

The increasing needs and demands of children present a larger opportunity for apparel and textile players.
Kidswear is one of the fastest growing categories in the domestic market. Last year the segment witnessed
a growth rate of ~17 per cent making it one of the most attractive categories. Brands are realising that
the children of today cannot be ignored considering their independent and adult-like purchase behaviour.
They display an incomparable power of pestering parents and completely influencing the buying decision.
Increased exposure to the media, growing up in double-income households, international travel and
pressure from equally well-informed peers ensure that children today are highly fashion-conscious.
The children’s market refers to the specific age group of children from 3–13 years. These children have an
individual identity and are in a hurry to grow up. This is evident in the way they talk, how they look and what
they wear. They do not spare their parents in the demands they make. Parents are also more than happy
spending on their kids as they enjoy rising incomes, suffer from the ‘guilt’ associated with less time spent
with their kids and need to ‘gain acceptability’ in the eyes of their fast-growing children.
Exhibit 13:
The total kidswear market in India is currently valued Kidswear Market Size
at approximately Rs 38,000 crore. This constitutes a
35000 33,100
25 per cent share in the total Indian apparel category.
This segment, which is split into ‘kidswear’ and 30000
25,300
‘school uniforms’ is expected to reach Rs 58,000 25000 22,500
crore by 2014 (see exhibit 13). 20000 18000 19,200
15,700
15000 13,700
12000
Technopak offers an insight into this segment by
not restricting itself only to kid’s apparel, but looking 10000
at everything that comprises their needs and 5000
aspirations. The growth drivers and opportunities 0
available have also been highlighted. 2007 2008 2009 2014E
Kidswear Apparel Uniforms
All figures in Rs crore
Growth Drivers Source: Technopak Analysis
Increasing needs of indulgent parents and decisive kids

There is no doubt that the needs/requirements of the kids have increased manifold in the past few years,
leading to the creation of segments within the segment. Parents are also more indulgent and want the best
for their children, starting with all the essentials for newborns to the fussy demands of toddlers and varied
needs of school-going children.
There are some concepts like Mom & Me by Mahindra Group which cater to this large gap in the market
and are offering products from newborns upwards, for all ages, under one roof. From feeding accessories,
cots, bassinets, strollers, prams and bath chairs for newborns to toys, footwear, outdoor-gear like cycles and
push cars for toddlers, to concepts for young girls/boys like fancy children’s toothbrush, cartoon-printed
towels, bed-sheets, curtains, rugs and stationery material and even the paint on the walls—everything is
on offer to lure child customers.

Growing brand consciousness

Another recent phenomenon is the growing awareness of branded goods. Kids have started asking for
exclusive, branded products. Brands like Gini and Jony, Lilliput and Catmoss have expanded their presence
exponentially in the last 2–3 years with Lilliput having the maximum store count at ~260.
These brands and retailers are contributing towards niche retailing in kids clothing sales by building
categories such as infant wear, kids’ formal wear, kids’ ethnic wear, swim wear, casual wear and pre-teen
wear by stocking a wider range of merchandise and differentiating between them at the retail store level.
Last year, Reebok launched the ‘Reebok Juniors’ concept store to tap into this segment by offering a one-
stop shop for apparel, footwear, accessories and sports equipment for children in the age group 4–14
years. Similarly, Gini and Jony has the ‘Freedom Fashions’ stores. offering licensed products of brands
like Reebok and Levi’s along with their own products. Lilliput is planning to launch ‘Lilliput World’, which
will be a specialty kids’ store with a greater merchandise width and depth. Keeping in mind the ‘important
kid shopper’, departmental stores are creating an experience during shopping by having play areas and
child-oriented promotional activities.
Kids have become influencers in decision-making

With the rising nuclear family culture, the child’s say in decision-making has increased a great deal. They
display an incomparable power to pester their parents and completely influence the purchasing decision. In
addition to their own needs and demands, kids are also influencing general buying decisions in the family.
For instance, the choice of a sofa set for the family, colours of the wall, brand of car to be bought, curtains
in the house or the furniture—they are involved in the decision-making for all these purchases. Though their
inputs might not be the final word on a purchase, they are definitely able to influence decisions. Brands are
increasingly including children in advertisements of products not directly targeted towards them, knowing
that they will influence adult-buying behaviour.
Opportunities in the Kids’ Space

In light of such decision-making behaviour, there are many opportunities that present themselves in this
category.
Becoming a specialty kidswear retailer/brand

The opportunity lies in offering the large basket of needs and aspirational products parents feel their
children should have or those which children feel the need to own. Retailers and manufacturers can make
this offering by stocking a wider range of merchandise and differentiating between them at the retail store
level.
With a large number of international brands entering the country, the standards in design and product
development have been considerably raised in this category. These international brands are abreast with
the latest trends in fashion and design. Considering the innovations taking place in this industry, one cannot
doubt that the industry is here to grow. Not just apparel but home textiles like curtains, bed sheets, towels,
rugs, curtains and home improvement products can be customised to suit kid’s tastes and preferences.
Welspun and Bombay Dyeing are among the very brands that offer home products for kids and there is a
large potential to create child-specific products. Additionally, products like bags, stationery and furniture
hold great potential.
Cartoon and character licensing

The growing trend amongst children to emulate characters in their everyday life is another important
opportunity which is enabling apparel companies to take licensing of popular characters and icons to
be used in their merchandise. As per the licensing update 2009, the business of license merchandising
of animated characters is estimated at Rs 360 crore in India. India has emerged as the No. 1 market in
Asia-Pacific for companies like Cartoon Network in terms of viewership and, more importantly, revenues.
‘Interestingly, children’s licensing and merchandising market accounts for 10% of Cartoon Network’s

revenues i.e. approximately Rs 300 crore, of which a large percentage is contributed by apparel,
accessories, footwear and home textile products.’
A closer look at the international kidswear market also shows a big influence of movies on kidswear. The
recent Hollywood movie Kick-Ass, the story of a teenager (fake superhero) who is inspired by a comic
character, is just one such example. The very famous brand French Connection has launched an exclusive
range of tees and sweats to celebrate this hotly anticipated 2010 superhero action movie. Children and
teenagers get a sense of association with iconic empowering catchphrases, film logos, and original comic-
book illustrations.
Themed in-store advertising and visual merchandising is another area through which brands are trying to
lure the new young consumer. Apple all over the world is helping Disney stores revamp the look of their
stores by creating small theme parks for children. Raymond brand Zapp has set up igloo-shaped trial
rooms in its stores. Hannah Montana is another teen celebrity show that has greatly influenced children and
many stores are seen to sell her merchandise or create store themes around her.
Branded school uniform market

Another very lucrative and untapped area from brands and manufacturers perspective can be the concept
of branded uniforms.
There are ~55 million private school–going students and another 172 million in public schools. Estimates
of school student requirements in few categories include ~5 million t-shirts in a year and ~1 million
sweatshirts/tracksuits. Schools like DPS and many of the new-age international schools which are opening
up across the country offer huge potential for a brand which can cater to their needs for apparel and related
accessories.
Technopak estimates this market to be ~Rs 136 crore and this space is virtually untapped by any organised
player except S. Kumar’s. Internationally, there are a number of school uniform brands like Trutex, First
in Class, K-12 gear, etc. Many international retailers like Marks and Spencer, JC Penney and Next have
extended their brands to include these products. There lies a large potential in India to do the same.
It is clearly not an easy task to cater to the demands of this new set of consumers, who not only influence
decisions for their own apparel shopping but also for adult purchases, causing bigger brands to spend
relatively larger budgets on advertising for children. The key success factors in this highly competitive
category lie in product differentiation, creation of a unique retail experience and innovative marketing and
promotion techniques.

‘Pop Up’ Retail Concept:

Temporary Stores to Attract
Consumers and Create
a Buzz 07
The concept of pop up retail has been around for a few years, especially in matured retail markets. It’s a
temporary retail location used either to launch a new product or to sell limited edition products. Sometimes,
the concept is even used for pilot runs before launching the actual product. Every now and then, retail stores
as well as company-owned brand outlets have been seen to pop up unannounced at unique locations and
disappear at the same pace within a few days. This concept has always been used as a means to create
curiosity amongst consumers, engaging them with an element of surprise and interactivity.
Exhibit 14:
A Typical Pop-up Story
Appearance of the The temporary shop is

A container transported Well designed ineriors
1 on a truck acts as a shop 2 container creates a sense 3 set up at unique location 4 similar to a regular shop
of urgency in shoppers to attract customers
Globally, many brands have tried to use this concept Exhibit 15:
Pop-up Store Concepts in Action
of temporary retail locations to boost sales, gain
market visibility and build a brand. It could be either
for selling an existing product or a new launch,
however, always at unique locations, away from
traditional retail markets.
2003: Target September 2006: July 2009: ebay
Many such other examples exist in the market opened temporary Uniqlo set up opened a pop up
with retailers like JC Penney, The Vacant, Ann 1500 sq. ft. store in temporary container shop for 5 days with
Rockfeller Centre stores around NYC to the objective of
Taylor, Harvey Nichols, etc. who have repeatedly for 5 weeks in announce the launch of showing people what
experimented with this concept and achieved Oct 2003 their flagship store. It just a fraction of its
results. The global recession in 2008–09 made this 2004: Target set up drove 2 shipping inventory would look
concept even more popular and attractive since it a temporary floating containers into the city like in-store, and
store in on Hudson and used them as planned on
led to quicker sales with reduced expenditure on river on Christmas stores that ‘popped up’ showcasing many
rentals. The growing importance of this strategy has in various locations ‘wow’ items’
led to a few companies like Brand New Stores and
Metropolitan Green letting out permanent stores with
brick and mortar at short-term leasing offers, at retail or non-retail locations.
This trend is catching on in India as well. While a modified concept in the form of kiosks in and outside
malls has been around for a while, many brands are now seen setting up temporary stores in food courts
of office complexes etc., in order to test new products or to sell off leftovers and limited products. Till date
kiosk retailing in India is limited to temporary fit-outs inside malls or at retail destinations, for products which
require minimal staff, less preparation and small storage space, stationed, however, for a longer period of
time. So while it is similar to pop up retail in terms of the absence of brick and mortar, it lacks its temporary
nature, and also does not generate the eagerness and element of surprise which a pop up store creates
in a consumer’s mind, forcing them to make impulse purchases. Technopak feels that Pop Up is a kind of
marketing tool which can be integrated with an existing marketing concept for an established brand or can
be used as part of a new product launch as well. So, while there is still some time to go before vehicles
would carry mobile stores all over the country, with the trend emerging fast in other forms India will soon
have caught up with this global concept.

Summary
The Indian apparel retail market (organised) is still not as mature as Western markets and thus presents a
number of opportunities in various categories. We have mentioned in this article some of these categories
as over the counter fabric retailing, affordable luxury retail, sportswear retail, Indian ethnic wear and
kidswear. Of course, these are only a few of the many opportunities available to investors. There are other
opportunities such as value retail, cash and carry retail, etc., all of which are lucrative and present industry
players with a good opportunity to grow. While all these opportunities exist, there are also challenges
which need to be overcome to change these opportunities into thriving businesses with sound bottomlines.
Industry players who constantly innovate and keep consumers at the centre of their strategy will surely be
able to make the best use of these opportunities.
Authors
Ashish Dhir, Associate Vice President | ashish.dhir@technopak.com
Priya Sachdeva, Principal Consultant| priya.sachdeva@technopak.com
Ruby Jain, Associate Consultant |ruby.jain@technopak.com

Green Building
Concepts: An
Approach
Towards
Sustainability
Introduction 57
Call for Corporate Sustainability 58
Green Concept in Infrastructure

Development 58
Summary 62
Introduction
‘Leaders do exactly that – LEAD! This doesn’t have to be a win-lose scenario. Be bold, make the
difficult decisions now. Enough talk, just do it.’
‘Please don’t miss this opportunity to stop climate change. This may be our last chance before it
is too late.’
These were some of the entreaties to world leaders at a recent summit-the United Nations Climate Change
Conference in Copenhagen, Denmark-organised in response to the predictions of the consequences of
global warming, which include more droughts, more flooding, lesser snow, extreme weather conditions,
rising sea levels, etc.
Global warming is caused by greenhouse gases (GHG) like carbon dioxide (CO2), methane (CH4), and
nitrous oxide (N2O) as shown in exhibit 1. They entrap the sun’s infrared rays in the earth’s atmosphere,
causing it to heat up (in the phenomenon) known as global warming.
Exhibit 1:
Greenhouse Emission Gases
Other
CO2 CH4 N2O
gases
Accounts for about Accounts for about Accounts for about Account for about 1%
70-80% of GHG 15-20% of GHG 5-10% of GHG of GHG: HFCs, PFCs,
Main Sectors: Main Sectors: Main Sectors: SF6, etc.
• Electricity and • Agriculture • Nylon and nitric Main Sectors:
heat generation • Oil refineries acid production • Refrigeration
• Transportation • Industries • Agriculture • Radioactive waste
• Infrastructure • Fuel combustion
• Deforestation • Industries
Exhibit 2:
Consequences of Global Warming
2010 2020 2030 2040 2050 2060 2070 2080 2090
57 | Green Building Concepts: An Approach Towards Sustainability

Call for Corporate Sustainability

With the rise in global warming, consumers in the west are demanding ecolabels and green accreditations
with products and services offered by Indian companies. Therefore, the corporate sector has shifted its
focus to innovation and improvisation in product manufacturing processes, bearing in mind the effects of
its usage and disposal. In addition, company activities such as infrastructure development, production and
overall management are planned to reduce carbon emissions, water consumption, energy consumption
and solid waste. Corporate sustainability thus acts as a tool to ensure profitable returns without disregarding
societal goals and ecological balance.
Corporate sustainability is a business approach that creates long-term shareholder value by embracing
opportunities and mitigating risks arising from economic, environmental and social developments.
Green Concept in Infrastructure

Development
In today’s world, China and India together account Exhibit 3:
Sustainable Development
for more than half of the world’s new construction,
however, the effective utilization of the available
resources for construction is yet to be explored. A
majority of buildings in Asia are energy-inefficient.
The construction sector accounts for a large Social
percentage of the world’s total energy consumption
and greenhouse gas emissions. One of the effective
and intelligent initiatives in infrastructure sector is Bearable Equitable
sustainable development through green building
concept. Sustainable
Environmental Viable Economic

The three most important indicators of sustainability,
as seen in exhibit 3, are environment, society
and economy. These factors help us understand
problem areas and show the way towards workable
solutions.
One of the main indicators of environmental

Exhibit 4:
sustainability is the process of ensuring that the Elements of Green Building Design
existing method of human interaction with the
environment is as pristine as naturally possible.
Low energy
Sustainability entails use of natural resources such materials
Increased
as energy and water at a rate slow enough for them human comfort
Sustainable
site
to be replenished naturally.
The concept of green buildings envisages saving Green Building

Superior indoor Design Water
water, energy and material resources in construction quality reduction
and maintenance of buildings that can reduce or
eliminate the adverse impact on the environment
Waste Energy
and occupants. Implementing the green building management optimisation
concept can result in reduction of carbon emissions
by 35 per cent, water usage by 40 per cent, energy
Green Building Concepts: An Approach Towards Sustainability | 58

usage by 50 per cent and solid waste by 70 per cent. exhibit 4 represents elements of green building taken
into consideration at the design stage.
Exhibit 5: Benefits of Green Building
Reduced
Reduced energy destruction Reduced water Limited waste Increased user Corporate
consumption of natural consumption generation productivity image
resources enhancement
Benefits of Green Building
To ensure minimal environment damage the following factors have to be considered for green building
construction:
• Conserve the external environment at the building location.
• Improve internal environment for the occupants.
• Preserve the environment at places even far away from the building.
Green Buildings Conserve the Environment at the Building Location

When planning to construct any type of building, we should select the site after taking into consideration
the conservation of local vegetation, wildlife, natural water courses, etc. A site with biodiversity should be
either avoided or the building should be planned to reduce site disturbance.
Land Exhibit 6:
An Ideal Design for a Green Building
• The landscaping and exterior design in a green
Roof top planting
building shall be done to ensure more shaded Photovoltaic cell
area.
Automated ventilation
• The light trespassing can be eliminated and local control
species of plants can be grown.

Improving
insulation
Water Light control using
natural light
• The green building by its design and shape shall
Light control using High-efficiency
not disrupt natural water flow; it should be oriented motion detection light fixtures
and made to stand just like a tree. sensors
• Rainfall in the catchment shall be harvested fully Restriction Restriction of

to either replenish the groundwater table in and of sunlight sunlight
around the building or to be utilised in the services
of the building.
• The toilets shall be fitted with low flush fixtures. Rain water High-efficiency
utilisation heating equipment
The plumbing system should have separate lines
for drinking and flushing.
• Grey water from the kitchenette, bath and laundry shall be treated and reused for either gardening or
cooling towers of air-conditioning.

Energy
• The solar energy at the top of a green building is harvested to supplement conventional energy.
• Natural light is harvested in intermediate floors to minimise electricity usage.
• Sunlight is restricted by the high-growing trees outside lower floors of the building.
• High-efficiency light fixtures make for pleasant lighting in addition to saving energy. High-efficiency
windows and insulation in walls, ceilings, and floors ensure better temperature control.
Green Buildings Improve Internal Environment for the Occupants

Light: In a green building, occupants shall feel as if they are in a natural environment. Interior and exterior
designs shall go hand in hand by blending natural and artificial lighting.
Air: A comfortable atmosphere at workstations improves staff attendance and increases productivity. In an
air-conditioned environment, a green building shall be specially equipped to ensure the indoor air quality
necessary for a healthy atmosphere. The inhabitants can breathe air free from any odour of paints, polish
or varnish.
Green Buildings Preserve the Environment at Places Far from the Buildings
Buildings are constructed using cement, sand, steel, stones, bricks, and finishing materials. Collectively
these are responsible for about 20 per cent of the greenhouse gases emitted by a building during its
lifetime.
Green buildings use products that are non-toxic, reusable, and/or recyclable wherever possible. Locally
manufactured products are preferred which also save the fuel ordinarily used to transport materials.
Preference should also be given to recycled material. Certified wood as well as green materials should be
used for the conservation of natural resources.
Preference for recycled material

Material with higher recycled content should be selected in order to reduce the embodied energy of the
buildings, thereby decreasing the environmental impact of extraction and processing of energy extensive
materials. exhibit 7 lists some of the recycled materials.
Exhibit 7:
Sources and Benefits of Recycled Material
Material Where it’s found Benefits
Recycled concrete Construction debris Saves space and cost of disposal
Increases flowability, durability, hardness of concrete, aesthetic
Glass Trash, recycling facilities
use
Plastic Trash, recycling facilities Potential thermal insulation properties
Dredged material Rivers, lakes, ports Removes contaminants from oceans and landfills
Excavated rock Infrastructure projects Suitable aggregate is plentiful within tons of excavated material
Garbage Everywhere Ash can replace part of cement
Pulp and paper mills, wood prod-
Wood Ash can replace part of cement
ucts industries
Rubber can replace aggregate
Scrap tyres Landfills
Steel can provide fibre reinforcement
Rice husk ash Rice producers Ash can replace part of cement
Preference for regional material

Material should be available within 800 kilometres in order to avoid unnecessary transport costs. This would
also help increase the demand for building materials and products that are extracted and manufactured
within the region.

Certified wood
Consumption of certified wood helps to encourage environmentally responsible forest management. There
are more than 50 certification programs worldwide. Globally, the two largest umbrella certification programs
are the Forest Stewardship Council and Programme for Endorsement of Forest Certification schemes.
Futuristic Materials for Green Building

Futuristic green buildings will use green materials. Some of these are at the research stage while others
have been available for a long time now.
Green wood
A Stanford team has conducted research seeking alternatives to wood. Hemp fibres and biodegradable
plastic when pressed together and heated form a layered material as strong as wood. When buried in a
land fill, it degrades faster. This wood creates more raw materials when it breaks down. Microbes produce
methane when they decompose this wood substitute and other debris thrown into landfills. Another type
of bacteria absorbs this gas and turns it into plastic that can be used to create a new wooden plank. This
cycle ensures that there is a continuous source of raw material for this wood. When this material comes to
the market, it may help to control deforestation and promote rainfall.
Green cement
Bruce Constantz at Calera, Los Gatos, has developed a green method to produce both cement and
aggregate, another component of concrete. This method sequesters carbon dioxide from power plant
flues and mixes the gas with sea water to produce the mineral raw materials of concrete. Half a ton of fly
ash from coal plants is used for every ton of green cement Calera manufactures. In addition, this prevents
the production and emission of carbon dioxide.
Other green building materials

Some of the materials that can be used in a green building are renewable plant materials like bamboo
(grows quickly) and straw, lumber from forest ecology blocks, dimension stone, recycled stone, recycled
metal. Other products that are non-toxic, reusable, renewable, and/or recyclable can be used, such as
trass, linoleum, sheep wool, panels made from paper flakes, compressed earth block, adobe, baked earth,
rammed earth, clay, vermiculite, flax linen, sisal, seagrass, cork, expanded clay grains, coconut, wood
fibre plates, calcium sandstone, etc. The Environmental Protection Agency also suggests using recycled
industrial goods, such as coal combustion products, foundry sand, and demolition debris in construction
projects.
LEED Green Buildings Rating System

Buildings constructed based on the green concept should conform to prescribed standards. There
should be continuous assessment and monitoring from the planning/design stage up to the completion
of construction, in order to declare a building a Green Building. The LEED (Leadership in Energy and
Environmental Design) Green Building Rating system is followed in this assessment of a building. In this
system, points are awarded for adopting green concepts in various categories and the buildings are
certified green at levels such as Silver, Gold or Platinum based on the total number of points they get in the
LEED Rating.
Certification for green buildings

LEED 2009 has 100 possible base points plus an additional 6 points for Innovation in Design and 4 points
for Regional Priority. Buildings can qualify for four levels of certification:
• Certified: 40–49 points
• Silver Certified: 50–59 points
• Gold Certified: 60–79 points
• Platinum Certified: 80 points and above

LEED NCv2.2
LEED for New Construction and Major Renovations version 2.2 has 69 possible points and buildings can
qualify for four levels of certification:
• Certified: 26-32 points
• Silver: 33-38 points
• Gold: 39-51 points
• Platinum: 52-69 points
Green Rating for Integrated Habitat Assessment (GRIHA)

GRIHA is a rating tool that helps people assess the performance of their building against certain nationally
acceptable benchmarks. It evaluates the environmental performance of a building holistically over its
entire life cycle, thereby providing a definitive standard for what constitutes a ‘green building’. The rating
system, based on accepted energy and environmental principles, will seek to strike a balance between
established practices and emerging concepts, both national and international. The guidelines or criteria for
appraisal may be revised every three years to take into account the latest scientific developments during
this period.
GRIHA has a 100-point system consisting of some core, mandatory points and other, optional points,
which can be earned by complying with the commitment of the criterion for which the point is allocated.
Ratings are based on the points scored as given below:
• One star: 50-60 points
• Two stars: 61-70 points
• Three stars: 71-80 points
Summary
With global demand for sustainability and green responsibility, the Indian corporate world is facing difficulties
due to:
• Environmental issues
• Quality regulations
• Hygiene standards
• International compliance
The idea of green buildings should be implemented so as to earn green accreditations. These green
accreditations will not only help promote companies but would also add to their brand equity. These green
accreditations which are discretionary today are expected to be mandatory in future due to increasing
concerns about greenhouse gas emissions and global warming. Green buildings would therefore be a key
aspect in adoption of new strategies for future growth.
Authors
Avinash Mayekar, Associate Vice President | avinash.mayekar@technopak.com
Parinita Devadiga, Associate Consultant | parinita.devadiga@technopak.com
Jayashree K. Bhole, Research Associate | jayashree.bhole@technopak.com

Emerging
Opportunities
in Travel Retail
Introduction 65
Opportunities from Passenger

Growth 67
Non-Aeronautical Revenue
Sources 67
Overview of Airport Retail 68
Key Trends in Airport

Development 69
Other Opportunities in
Travel Retail 70
Introduction
When we travel, we often wonder why we cannot have a good quality food outlet or gift shop where we can
spend some time. How many times, while travelling on India’s emerging new jet-black highways, have we
wondered why we cannot have a nice wayside leisure and entertainment area where we can take a quick
nap and rejuvenate or allow our children to play! All this is going to change soon as we see the emergence
of a new opportunity for retailers and developers. This is what we call travel retail. It is a fact that we are a
country in the ‘build’ phase; this means we are watching the construction of bigger and broader highways,
more airports, better railway stations and an extensive metro network. We have all seen more than 15 per
cent growth of sales in cars and other motor vehicles, over 18 per cent increase in air travel and similar
trends in other forms of travel. Indians are travelling, and travelling big time. Needless to say, as we travel
more and more, our need to spend, eat and shop while we travel will also increase, throwing up massive
opportunities in this space of travel retail.
Exhibit 1:
Mapping Transition in the Airport Operating Model
Transition in the Airport Model
• Primary focus on aeronautical revenues
The airport business operations/model has • Airport retail categories : F&B, News, Gifts & Confectionery,
seen significant change over the last few Perfumes & Cosmetics, Jewellery, Convenience & Fashion
1970
• Airports focus on passenger capacity & operations

decades. From primary operations of handling • Share of non-aeronautical revenues <10%
aircrafts and passengers, airports started • Phase of slow growth in terms of retail sales, passenger
focusing on revenue and profitability in the numbers and commercial aeroplanes
1990s. To further reduce dependency on the
aviation business, airports are now talking
• Shift in focus to revenue and profitability
about ‘airport cities’ or ‘aerotropolis’. • New airport retail categories: Medical Centres, Entertainment,
Golf, Business Centres, Wellness and Fitness
This transition has led to airports changing • Airports focus on non-aeronautical revenues and increase
1990
their strategies from increasing capacity passenger related revenues

to focusing on non-aviation revenues and • Share of non-aeronautical revenues >30%
now focusing on revenue sources beyond • Non-aeronautical gaining importance with some airports
having achieved higher share; phase of commercialisation &
the airport boundary. This transition in the privatisation of airports
operating strategy led to the share of non-
aeronautical revenues increasing from less
than 10 per cent to the current about 50 per • Strategy of reducing dependence on aviation business
• Concept of ‘airport cities’ or ‘aerotropolis’ gaining importance
cent. In the future, airports are targeting a share • Airports target to create experience; concept of airport
of non-aeronautical revenues at over 70 per branding
2010
cent through the ‘airport city’ or ‘aerotropolis’ • Airports focus to increase revenues from non-aeronautical
model. services that do not cater to the traveller directly
• Target to take share of non-aeronautical revenues to >70%
The Global Context Source : GDI Research
Exhibit 2:
Global airport revenue is driven by passenger
enplanements, the numbers for which have Global Commercial Aviation Revenues (US$ billion)
grown continuously since 2000, except for 2001 600
when air traffic was affected by global security 500
issues and the SARS outbreak in Asia. Worldwide
airport revenues are estimated at US$ 85 400
billion for 2008 with non-aeronautical revenues 300
contributing 48 per cent. For 2007, airports
200
collected airline charges of US$ 17 billion, which
represented 3.5 per cent of the airline operating 100
cost of US$ 488 billion. These aircraft related 0
revenues are below actual operating expenses 2000 2001 2002 2003 2004 2005 2006 2007 2008(E) 2009(E)
incurred and are subsidised by passenger fees Total Revenues Passenger Revenues
Source: IATA
65 | Emerging Opportunities in Travel Retail

and non-aeronautical revenues. Capital expenditure commitments from the airport industry increased from
US$ 40 billion in 2007 to US$ 50 billion in 2008. The global commercial airline business was expected to
generate US$ 536 billion in 2008 with passenger-related revenues accounting for US$ 425 billion.
Exhibit 3: Exhibit 4:
Total Worldwide Passengers (billion) Passenger Growth, (tkp %)*
20
5
15
4
10
3
5
2
0
1 -5
-10
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009(E)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009(E)
*tonne kilometre perfomed
Source: ACI
Source: IATA, ICAO
The Indian Aviation Sector

The Indian aviation sector has seen a marked change since 2004 from being a regulated sector to a
liberalised one. Airport investments through Public Private Partnership (PPP) saw the development and
modernisation of airports in Delhi, Mumbai, Bangalore and Hyderabad. Infrastructure and policy initiatives,
along with economic factors, have contributed to the growth of the aviation sector in India over the last
couple of years. Between 2003-04 and 2007-08, the Indian aviation industry saw total passenger traffic
grow from over 30 million to more than 70 million. The domestic sector saw faster growth, from 15.7 million
passengers in 2003-04 to over 44 million in 2007-08. This was driven by factors like strong economic
growth and the entry of low-cost carriers(LCC).
Yearly Passenger Numbers (million) % Passenger Growth (Y-O-Y)
80 45
35
60
25
40
15
20
5
0 -5
0
8
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
99
00
01
02
03
04
05
06
07
99
00
01
02
03
04
05
06
07
19
20
20
20
20
20
20
20
20
19
20
20
20
20
20
20
20
20
International Domestic Total PAX International Domestic Total

Source: DGCA
Source: DGCA
Emerging Opportunities in Travel Retail | 66

Opportunities from Passenger Growth

Recent global and local developments in the aviation sector have made the business environment more
difficult and put forward many challenges. Some of the developments include:
• Privatisation and commercialisation of airports

• Reduced capability of airlines to pay for airport Exhibit 7:
infrastructure
• Capacity and operational constraints leading to Increasing challenges and deteriorating
business environment
increase in congestion
Airport Objective :
• Growth of LCC carriers leading to increase in
To grow airport
demand for F&B revenues
• Security-related constraints
Growth in
Even with the deteriorating business environment, passenger
airports have managed to grow revenues driven by numbers
growth in passenger numbers.
Option : Increase airport revenues
Given the fact that the Indian aviation sector is just through growth in non-aeronautical
revenues drivenby higher number of
entering the growth phase, the potential for growth passengers
in passenger numbers across airports remains very
high. This allows all airports to tap opportunities in
the non-aeronautical business segments.
Non-Aeronautical Revenue Sources

Some of the key facts on Non-Aeronautical revenue are:
• The key sources of non-aeronautical revenue include retail, property and others (including car parking,
rental and advertising).
• For airports in North America & Africa/Middle East, the share of non-aeronautical revenue in airport
revenue exceeds 50 per cent.
• Globally, retail contributes 22 per cent of non-aeronautical revenues followed by property at 19 per cent.
• Compared to other regions, car parking and car rental is a particularly large segment in North America.
Non-Aeronautical Services and Revenue Sources Non-Aeronautical Revenue as % of
Total Revenue by Region
Impact of Passenger
Non-Aeronautical Service Source of Revenue 60
Growth on Revenues
• Tax and Duty Free 50

• Concessionaires Passengers (Primary),
Retail High
• F&B Airport Staff (Secondary)
• Money Exchange 40
30
Caribbean Latin America
Offices, Hotels, Other

Property • Rents and Leases
Africa / Middle East
Low
non-airport related
20
Global Average
North America
Asia-Pacific
10
Europe
• Parking and Car Rental Taxi Operators, Meeters

Others Medium
• Advertising and Greeters, Passengers
0
Source: ACI

• In the Asia-Pacific region, the share of retail revenues in non-aeronautical revenues is 34 per cent.
• The global average revenue per passenger from non-aeronautical sources is about US$ 8 (~Rs 368)
which for the Asia Pacific region is US $ 7 (~Rs 322).

Non-Aeronautical Revenue by Source Non-Aeronautical Revenue Per Passenger (US$)
14
Europe
32% 33% Others 12
Advertising 10 Africa Global
3% 2% Asia /
Property Middle East Average
20% 19% 8 Pacific North
Car Rental America
6% 6% 6
5% Car Parking Caribbean
18% Retail 4 Latin America
34% 2
22%
0
Asia Pacific Global Average
Source: ACI Source: ACI
Overview of Airport Retail

The Consumer Shopping Window
One of the key factors driving consumer spend and shopping behaviour at the airport is ‘time’. Airports
are generally associated with high levels of stress for travellers from the moment they start for the airport
till they board the flight.
Exhibit 12:
Passenger Stress Level vs Time and The Consumer Shopping Window
Check-in > Passport Control > Boarding >
Stress Level
l Best opportunity to
eve
essL engage traveller in
Str retail activity
Shopping Factor
Going to Airport Arrival Waiting for Boarding In the Flight

Time
Exhibit 13:
The level of stress fluctuates based on the Conversion Rates and Average Passenger Spend(%)
activity being performed and offers windows
when the consumer is ready to be engaged in Duty Free/Tax Free
retail activity.
Specialty Retail
Airports must plan their operations efficiently
so as to maximize the dwell time inside the Convenience
security hold area. This also emphasizes the (News/Books)
need for planning for retail-related activities at

Food and Beverages
the development phase itself.
0% 10% 20% 30% 40% 50% 60%
At successful airports, the conversion rates for Average Passenger Spend Conversion Rates
F&B and Convenience are around 45 per cent Source: Technopak Analysis

followed by Duty and Tax Free at about 40 per cent and Specialty Retail at 30 per cent. Duty and Tax Free
accounts for about 85 per cent of consumer spend on retail. F&B accounts for about 15 per cent of the
consumer spend on retail, though it has the highest conversion rates.
Key Drivers of Airport Shopping

• Basic products required as part of the Exhibit 15:
journey are characterised by low margins Key Drivers Influencing Airport Shopping
and stability in demand.
• Gift products are primarily last-minute Low Margin Stable Demand
purchases offering low to moderate margins
but significantly consistent demand. 1. EMERGENCY (A basic item needed for journey)
• Products that are associated with indulgence 2. LAST MINUTE (A present/souvenir)

and are driven by excitement of travel like
perfumes and cosmetics, have better 3. AN INDULGENCE (Driven by the excitement of travel)
margins and offer a significant business
4. A SHOPPING OPPORTUNITY (Due to lack of time/or opportunity)
potential.
• Products that offer a shopping opportunity High Margin High Potential
to people who are generally stressed for
time lead to highest business potential and Source: Portland
margin.
Key Trends In Airport Development

• Airports traditionally have been associated with stress and
unfamiliarity on the part of the traveller. It is now the strategy of
airports to establish a brand identity for airports and communicate
the same through different means including retail so as to create a
sense of place and create a positive image about the airport.
• Globally, airports are putting greater emphasis on maximising
non-aeronautical revenues. Retail, having the largest share of non-
aeronautical revenues, would see greater focus from airports. As
a result, airport development would involve higher involvement of
retail architects and brand professionals.
• Commercialisation of airports would lead to detailed planning for
non-aeronautical activities like retail (product categories, zoning,
etc.), property (hotels, offices, etc.), car rental and parking (area,
vendor, contract period, revenue model), etc.
• In terms of retail store layout/plan, the trend is to have ‘walk-through’ shops. Consumers experience high
stress before entering the primary shopping area. An attractive shopping area in terms of ‘walk-through’
stores helps reduce stress and benefits the store by increasing footfalls and conversion.
• Driven by growth of the LCC market and factors like increasing dwell times on the airside and lack of
choice in in-flight food, airports are going to see greater emphasis on F&B category and thereby higher
allocation of space to the category.
• Successful airports worldwide are focusing on profiling and need-gap analysis of consumers on the
basis of demography and travel to psychographic and consumption and then catering to the needs of
travellers. This need-gap analysis is also leading to airports offering more specialised shops catering to
gifts, fashion and cosmetics.

• To create unique retail offerings, airports and operators are now offering a portion of the commercial area
to local specialties (Little India-HIAL, Delhi Bazaar-DIAL) and anchor points (an exclusive area offering
special offers and discounts).
• Airports worldwide have seen an increase in security measures due to the prevailing security scenario.
Though specific incidences have the potential to affect passenger volume, it does not have a significant
impact on commercial activities at airports in times of normalcy.
Other Opportunities in Travel Retail

Rail
The number of people traveling in trains per day in our country is 20+ million. With 1000+ trains running
every day, we are one of the largest train traveling countries in the world. As of now, all we get at any railway
station is poor quality food laced with insects and absolutely no other spending options (barring off the
book/magazine shop). Across the work we have seen excellent options being provided to the travellers in
various categories. This has resulted in revenues as well as overall traveller happiness.
A train traveller has one of the most precious things in hand - time, and that too in large amount. This makes
it possible for retailer and operators (Indian Railways, IRCTC) to provide options which ensure that a train
traveller can spend this time fruitfully. Some of the categories which will do well in this scenario are books
& music, various food options (different cuisines, faster and value driven), electronics & gadgets, apparel
etc. All that is needed is to create a value driven proposition which satisfies all types of travellers in the train
and of course willingness on the part of the railway authorities to experiment.
Road
We already have over 3700 km of highways and are still getting build as we read this. With roads come
travellers (business, leisure and what not). All of them like to eat, spend and shop. As of now, what we
have are some sparsely strewn areas called “midways” and some better developed areas called “roadside
amenities”. But these are few and far between. What we need are well thought and evenly separated such
midways and roadside amenity areas where all the necessary options are provided. Just imagine the
convenience and experience that a nicely build area which has local gift shops, local cuisines, games for
kids, and to top it all clean toilets can give us.
With more and more highways being developed in the form of PPP model and more and more focus on
tourism and business, there is no reason why we shouldn’t focus on developing the opportunities around
these “Roadside amenity” spaces.
Metro
One of the most liked travelling options which have caught the fancy of all is the “Metro”. We have seen
the gusto with which people take to metro in Delhi. And now cities like Chennai, Bangalore and Mumbai
are fast developing this option for intra-city travelling. The only difference between a metro and railways is
the “time” factor. Here people won’t have much time to eat, spend or shop. But it still will carry millions of
hungry men and kids, housewives and youth. They all will have some money and desires to spend and buy
things like the grocery items, toys, photocopies, tutorials, recharge coupons, magazines etc. The trick is to
give the local station catchments what they want.
Authors
Zahir Abbas, Associate Director | zahir.abbas@technopak.com
Sushil Patra, Senior Consultant | sushil.patra@technopak.com

India’s Food
Vision: The Next
Decade
Introduction 73
Demand Drivers 73
Key Opportunities 76
Key Challenges 77
The Outlook for Future 78

Introduction
According to the International Monetary Fund (IMF), India’s economy is projected to grow at 8.8 percent in
2010 as the demand is estimated to improve on the back of the Government of India’s economic stimulus
policies and other contributory factors such as the estimated normal arrival of the monsoon. Increased
supply and stock replenishment and easing of inflationary pressures will mean that the demand for food
products would increase. However, this increased and rejuvenated demand makes it pertinent to align
India’s national policy with respect to agriculture and food in order to satisfy the demand arising out of an
ever-increasing population that is highly discerning of quality and taste and has little time in a busy lifestyle
for traditional cooking techniques. Corporates can look into the relevance and impact of the foregoing
factors to their businesses and the kind of offerings that they need to develop in the emerging scenario.
Demand Drivers
The key factors that have enormous importance in increasing demand for food and are expected to play a
major role in the transformation of the demand are:
• Rising population and incomes
• Increasing number of nuclear families and working women
• Palate and lifestyle changes
The above factors are likely to impact demand for food individually as well as in combination, and result
in significant changes in not only the demand for food quantitatively but also in terms of where, how,
what and when food is consumed. This is likely to translate to new and unprecedented modes of delivery
mechanisms, retailing formats, packaging formulations and a range of convenience and ready-to-eat food
products.
Rising Population and Incomes

India’s population, by the coming decade, is estimated to be 1.3 billion out of which the predominant
numbers – ~60 per cent – are expected to fall in the age group below 40 years, making it a demanding
segment to cater to. In addition, with real per capita incomes likely to nearly double in the next 10 years and
more than two-thirds of the current population still just above or below the poverty line, the first category to
see increased spending will be food.
The increase in population combined with the increase in the disposable income will translate into not only
the likely increase in demand in value-added sectors such as meat, dairy, fresh vegetables and fruits but also
an accelerated demand for primary food products. This demand will graduate into an exponential demand
for primary commodities, deriving partly from the fact that it takes greater quantities of primary food to
get processed and aggregated into a value-added
product. On top of this requirement for accelerated Exhibit 1:
usage or absorption of primary commodities or Crop Productivity Levels - A Comparison (MT/ha)
food conversion from raw to processed form, the Crops India Other Countries
consumption demand for basic commodities would Paddy 3.03 9.71
also increase with the growing population.
Wheat 2.69 8.89
The net effect of this would be the combined demand Pulses 0.60 5.14
for both primary and value-added food products Edible Oilseeds 0.25 4.29
from the same natural resource region or even Sugarcane 60.70 122.70
smaller in size than it exists today. This necessitates F&V: Fruits & Vegetables
policy making and research efforts towards areas Source: Ministry of Food Processing Industries, Government of India
73 | India’s Food Vision: The Next Decade

that focus on increasing the productivity of crops, increasing water-usage efficiencies, dryland farming
and high yielding yet non-lodging strains of crop varieties. It is important that such initiatives are taken in
earnest as the results of research and their application has a similar gestation period. This also highlights
the need to bring about productivity enhancement Exhibit 2:
in existing crops and farming situations through Food Processing Levels - A Comparison
improvements and, more importantly, application of Food Category India Other Countries
the recommended package of agronomic practices
F&V 2% USA (65%), Philippines (78%),
to attain global benchmark levels (see exhibit 1). China (23%)
Milk 35% 60-75% in developed countries
Similarly, the explosion in the demand for processed
food would trigger the requirement to increase the Buffalo Meat 21% 60-70% in developed countries
level of processing presently being undertaken in Poultry 6% 60-70% in developed countries
India (see exhibit 2). The present processing levels Marine 26% 60-70% in developed countries
are far lower than other countries and the demand F&V: Fruits & Vegetables
for such products is expected to outstrip supply if Source: Ministry of Food Processing Industries, Government of India
adequate steps are not taken.
This would cause a shift in the nature of the industry – from largely unorganised today to the organised. The
challenge for the industry would be to undertake capacity and skill-building in the food processing sector
in order to facilitate not only upgrades in the standards of food production but also to provide employment
to the large population of workers engaged with this sector.
Increasing Nuclear Families and Working Women

Liberalisation of the economy and the incentives to private sector development have led to a rise in new trade
formats and increased employment creation. This has translated into the migration of both the skilled and
unskilled workforce from rural areas to major cities resulting in an increasing proportion of nuclear families
combined with higher employment possibilities for women. The rural-to-urban migration trend coupled with
other factors such as increased exposure to the media and paucity of time has not only led to changes
in awareness of gender equality and rights but also changes in the habits of people towards traditional
household chores such as grocery-shopping and cooking. The trend towards preferences for ready to eat
or frozen food is bound to intensify with improvements in packaging technology and infrastructure.
Exhibit 3:
Enrolment of Women in Different Faculties
60 16
51 14
50 47
44 44 12
41
Women as % of total enrolment
39 40
40 37 38
37 10
35
33
CAGR (%)
30 8
21 22 6
20 20
17 18 17
16
14 4
10
2
0 0
Art Science Medicine Agriculture Veterinary Engineering Commerce Law Education Others
Sciences & Technology Management
1995-96 2001-01 CAGR

Source: Selected Education Statistics, 2004-05; Ministry of Human Resource Development, 2007; Technopak Analysis
India’s Food Vision: The Next Decade | 74

In 1981, the number of women entering the workforce was estimated to be 20 per cent; this grew to 23 per
cent in 1991 and further rose to 26 per cent in 2001. Currently, it is estimated to be around 30–35 percent
of the total working population amounting to ~150–170 million women. Indian women are increasingly
seeking greater participation in the organised workforce, accounting for 20-25 percent of the total organised
workforce of 30-35 million (refer exhibit 3).
Exhibit 4:
A good example is the huge success of instant
Changing Food Habits of the Indian Consumer
noodles in India. Popularised by Nestle, the instant,
2-minute noodle carved out an entirely new category Types of Changes %
and the non-ethnic and quick cooking practice (as Become more health conscious now, regarding food
51
opposed to traditional Indian cooking) was welcomed consumed
and adopted by the Indian consumer. The emergence Eat more junk food now 15
of newer categories as well as eating formats such Eat less often at roadside eating joints or carts 15
as roadside restaurants, food courts, cafes, kiosks, Eat more food now 14
lounges, etc. are some of the other examples. The
Eat out at hotels more often now 5
new enabler to this change is the Internet, which
offers the quickest and easiest channel for routine Eat western cuisine more often now 5
work such as ordering food and groceries besides Source: Technopak Healthcare Outlook
other items.
Palate and Lifestyle Changes Exhibit 5:

Allocation of Shelf Space to Imported
Food Products
Rising income and growing urbanisation have Retailer Locations %
contributed to a shift in traditional Indian food habits. Foodworld South India 10
Driven by higher disposable incomes, Indians are Nilgiris South India 12
increasingly travelling within India and globally Vitan Chennai and Bangalore (South India) 5
and are exposed to diverse lifestyles. This has ABG-More Bangalore 4
given birth to a new generation of consumers with Nuts n Spices Chennai (South India ) 40
a global orientation in food habits. According to a Food Bazaar Across India 3
Euromonitor report, it is anticipated that there would
Reliance Mumbai 7
be a dramatic rise in the number of Indians travelling
Crossroads NCR-Delhi 25
abroad – 132 per cent between 2006 and 2011. It
is also expected that the total number of outbound Source: Industry Sources, Technopak Analysis
travellers is set to reach 16.3 million in 2011 alone.
High-income urban dwellers are seeking variety in their choice of foods and are willing to spend more on
international cuisine, including fast food. Indians have become open to experimenting with newer tastes
and multiple cuisines have found a way into Indian kitchens, leading to a diversification in the Indian palate
(refer exhibit 4). This has created opportunities for imported food products such as pasta, sauces, salad
dressings, dairy products such as yoghurt and cheese, etc. (refer exhibit 5).
Exhibit 6:
Adoption of higher energy density diets, sedentary Growing Health-Consciousness
work and leisure habits coupled with reduced physical Measures taken by Indian Consumers %
activity have resulted in an increase in incidences of Eating right quantities of food 74
non-communicable diseases, thus making consumers Eating less/cutting down on unhealthy food items like fried
42
aware of the importance of health, food and exercise, food, sweet items/sugar, non-vegetarian food
and driving the demand for more nutritious and Reducing stress in life 28
fortified health foods (refer exhibit 6). As a result, Indian Taking vitamins, tonics and health supplements 14
consumers have now become more sensitive to the Going for preventive health check-up 6
health quotient of food consumed and the market for Going for regular exercise like walking, jogging, physical
health and wellness food has been rising. work out, yoga, aerobics, weight training, karate, cycling, 12
swimming, playing sports
Source: Technopak Healthcare Outlook

Key Opportunities
Changes in demand factors have led to product manufacturers and marketer realising the diverse offerings
they can make available to the consumer. This has led to not only the emergence of newer categories
but also increasing competition among players in existing categories with an emphasis on the creation
of hitherto non-existent value spaces and differentiation factors. While almost all the key categories in the
food segment have been influenced, the ones likely to get more influenced would be those that pack in
greater value addition or, in other words, a higher concentration of nutrients per unit. This is already being
witnessed in products that have fortifications and ‘natural’ ingredients.
Growing Importance of the Non-Carbonated Ready-To-Drink Market

as a Healthy Option
India’s Rs 865 crore non-carbonated ready-to-drink market includes juices, packaged water, sports
drinks, blended tea (including iced tea) and coffee and is estimated to be growing at a robust 25 per
cent. Most companies are developing or acquiring healthier non-carbonated beverage brands to have a
presence in this segment with the most recent being the MoU (Memorandum of Understanding) signed
between Pepsico and Tata Tea for undertaking joint initiatives in the segment. The other area that is gaining
increasing popularity is the fortification of water and fresh fruit extracts such as that of coconut water. Coca
Cola has invested in Zico Beverages, a California-based company selling coconut water while Pepsico
has purchased Brazil’s largest coconut water player, Amacoco. One more reason for this segment to be
promising is that this category gains higher visibility from a wider array of celebrity endorsements on the
one hand while involving a large swathe of the farmer population on the other hand, achieving both public
and private goals. Given the vast biodiversity present in the country, this segment would be the most
promising one in the near future.
Nuts and Nut Products as Time-Saving Sources of Nutrition

While the category covering the botanical usage of ‘nuts’ might be restrictive, its culinary coverage
including almonds, pistachios, hazelnut, peanuts, etc. shows promise given their provision of nutrition in
a concentrated form while being flexible in usage as snacks or as all-time meal accompaniments. Given
their nutritive and health benefits, it is very likely that these commodities will not only be increasingly used
in primary processed forms (such as with basic addition of salts, roasting, etc.) but also as processed
food ingredients in biscuits, chocolates, granola, etc. Given the huge consuming population that is aware
of the nutritive benefits from folklore and prefers “quick and nutritious” food, nuts as a category will see a
likely increase in consumption in the near future. It is also expected to boost trade between India and other
countries, given the geographical suitability and wide diversity present both in India and abroad.
Value-added Milk and Eggs

With rising incomes, the consumption of milk and eggs is estimated to increase in graded levels of
consumption towards value addition and branding. Interest in the segment is already evident with the
organised industry investing heavily in setting up rural networks and factories as well as importing technology
to enhance product safety and innovation. An example of innovation in this segment is the emergence of
‘low fat, high protein’ branded eggs that assure taste without the guilt of having consumed the fat content
of the egg. Such innovations are likely to increase in the future and grow the market at an estimated rate
of 20 per cent. Similar is the case of value-added milk such as flavoured milk where the market, though
nascent, is estimated to grow 15 per cent on the back of high consumer demand for such products.

Organic Foods as a Fashion Statement and a Healthier Alternative

Owing to the focus of past decades on achieving food production and ensuring availability, there was high
incidence of chemicals usage in agricultural inputs leading to not only deterioration of natural resources
but also the prevalence of higher chemical residues in food products. The coming decades would witness
a higher degree of emphasis on the demand for low chemical incidence and adoption of good agriculture
practices with a concomitant increase in the demand for organically produced food products. While the
western world is already embracing these changes, it is likely to gain acceptance in India in the coming
decade. This would also lead to organic food becoming fashionable among the elite and the expatriate
population who are very quality conscious in selection of food products.
Convenience Foods
The frozen food market is expected to evolve further at a CAGR of 45 per cent to reach Rs 12,520 crore by
2014-15 (refer exhibit 8). Convenience-seeking behaviour accompanied by the desire to experiment with
new, exotic cuisines from fine-dining venues to a ‘grab-and-go’ solution from a fast food outlet or even
a convenience store have also led to occasions that call for outside food. This has further resulted in a
growing number of domestic fast food outlets, home delivery and take-away restaurants, and American
restaurant chains, such as KFC, TGIF, Dominos, Pizza, Pizza Hut, McDonald’s and Baskin Robbins, that
have opened in the last few years.
Exhibit 7:
Comparison in Market for Frozen Food: 2009 vs 2015(P)
2009 2015
Contribution to the Contribution to the
Market Size Market Size
Category Category
Frozen Food Market Rs crore % Rs crore %
Retail 190 2 570 5
Organised Stores 110 55 410 72
Non-veg Stores 40 24 60 24
Modern Independent Stores 40 21 100 21
Institutional 440 5 1190 9
Food Services 290 66 900 76
Hotels 150 24 290 24
Export 8,040 93 10,760 86
Grand Total 8,670 100 12,520 100
Source: Technopak Analysis,
Key Challenges
While the above demand factors and ensuing product innovations would pan out in the coming decade,
it will remain conditional to a great extent on the changes required at the ground level to facilitate the
viability of many of these. A good example is that of frozen food or liquid value-added milk products, which
would warrant a continuous cold chain network. Frequent breaks in electricity supply, uneven and non-
motorable roads make the movement of reefer trucks unviable and also present difficulties in reaching the
last mile. Regulations that would bring about quantum changes in the way commodities are bought and
sold need to be enabled pan India in order to enable corporate bodies and farmers to transact freely and
within a risk-management framework. Examples of such regulations that need reforms include the much
touted Agricultural Produce Market Committee (APMC) Act and the Warehousing Act, besides provisions
for financial institutions to deal in commodity markets through exchanges.

There is a need for a focused intervention in skill building and vocational training across the value chain
from the growers and the academia to the processing factories in order to not only absorb the growing
population into the increasing demand for labour but also for producing goods in line with the demand
from the market. Demand being a function of consumption capacity, it is also important that the macro-
economic policies support buying capacity and encourage increased consumption of and experimentation
with innovative food products. This can be possible only if food inflation is kept under check. The present
inflation rate of above 17 per cent will, if it continues, deter buyers from value-added consumption as basic
commodities become expensive. This is likely to lead to a contraction in the food basket as well as in a
change in its composition. The other impact that arises from the inflationary trend is the difficulty in meeting
production increases as the cost of cultivation increases on the back of increases in fuel, power, labour
and raw materials.
Even without inflationary concerns, India faces the need to urgently leapfrog productivity through genetic
or agronomic methods in major classes of commodities-cereals, oilseeds, pulses to prevent the need for
importing these. Added to the above, the country also needs to improve and rejuvenate its agricultural
extension programs to keep the farmers’ knowledge in line with the rapid developments in technology
in the area of agriculture. It is imperative that regulatory, infrastructure, breeding and crop productivity
enhancements and labour-enablements happen in tandem, as it is the collective force of all these-rather
than an isolated factor-that pulls down productivity of the Indian agribusiness and food processing.
The Outlook for Future

The food industry will need to transform itself towards offering newer products, both in terms of attributes
as well as value proposition. While food consumption will represent for many the means of energy intake,
it will also serve the needs of status and prestige, functionality and health in an increasingly time-starved
life. Given the increasing accent on health and safe foods, it will become important for the processing
industry to produce food products with minimal artificial ingredients while utilising natural resources in a
sustainable manner. The role of technology (such as nanotechnology) in bringing food to the consumer’s
plate is expected to be enhanced, with technology not only serving the key roles of preservation and the
consequent increase in shelf-life of perishables but also in delivering taste in a customised manner to serve
the palate and health needs of customers.
Many food companies are now investing in nanotechnology research that could provide us with safer,
healthier, more nutritious and tastier food in the future. Food production costs are expected to fall as
techniques become more efficient, using less energy, water and chemicals, and producing less waste.
Some of the key areas in which this emerging science will play a valuable role include food packaging
and food safety, and ‘interactive foods’ such as an ice-cream that has the taste and texture of ice-cream
without the use of fat or the use of nanotechnology to produce low-sodium foods that will still taste
salty due to interactions with the tongue, and nutrient delivery systems that use nanocapsules to deliver
micronutrients, antioxidants or even drugs to specific target areas of the body at designated times.
‘Nanosensors’ could be developed that detect an individual’s personal profile and trigger the release
of appropriate molecules from the product. In this way, foods could be customised according to the
specific¬ taste and smell preferences of the consumer, along with their needs related to health status,
nutrient deficiencies or allergies. Potential applications include foods that can release an appropriate
amount of calcium in consumers with early osteoporosis, or those with ‘smart filters’ that are shaped to
trap molecules that might cause an allergic reaction.

This is likely to bring about unforeseen developments in the preferences of customers in selecting food
brands and the manner in which these would be valued. Concomitant increases will be necessitated in crop
production with key emphasis being in the areas of enhancing crop productivity, resource utilisation and
yield improvements. A key contribution to this trend is likely to be the role of technology involving genetic
manipulation. The rapid pace of change will require both the public and private entities in the food cycle to
acknowledge the need to undertake capacity development and take steps aggressively in that direction.
While the burgeoning population will put an increasingly higher pressure on food demand (see exhibit
9), India’s natural biodiversity and diverse agro-climatic situations would be able to provide the needed
supplies if the above possibilities are fully exploited. In an increasingly dependent world where corporate
entities and farms compete for natural resources, it will become increasingly pertinent for each country to
not only safeguard national food security concerns while engaging in world trade but also ensure peak
sustainable utilisation of available resources. The role of the government, going forward, is also likely to be
increasingly that of a facilitator rather than implementing agency enabling increasing market-led trade and
supply chain development.
Authors
V. Sridhar, Associate Director| sridhar.v@technopak.com
Nimisha Chhabra, Associate Consultant| nimisha.chhabra@technopak.com

An Indian McDonald’s Anyone?

An excerpt of this article appeared in the Business Today, May 2010 issue.
As we all know, India is changing rapidly. What is changing with it is the way we eat food, whether at home
or outside. This change is driven by various factors – more nuclear-family structures, types of jobs, more
working women, time poverty, increasing incomes, more ‘guilt’ relating to less time spent with the family,
a more discerning palate, greater hygiene (if not health) consciousness, and so on. As a result, a lot of
exciting opportunities are being created in the food services retail space in the country. The success that
chains like McDonald’s, Domino’s Pizza, Café Coffee Day, KFC, Haldirams, etc. have seen so far may not
even be the tip of the proverbial iceberg!
Various reports project that India is going to see 85-90 million new jobs created over the next five years. Of
these, almost 45 million are expected to arise in Services (in sectors like Hospitality, Healthcare, Modern
Retail, IT & BPO, Telecom, Education, etc.) and a large percentage is likely to employ women. The metric of
‘percentage of working women’ in India is currently skewed because it largely comprises women working
in agriculture and as labour, and this is poised to change with the number of urban women in jobs set to
increase dramatically over the next 5-7 years. Transforming with this is the time available for household
chores, including a sharp drop in time for grocery shopping, cooking, etc. A feeling of guilt kicks in for
spending less time with the family and hence a strong desire arises to allocate more ‘free’ time to family
and less to the kitchen.
So far, eating out for Indians is a ‘celebration’ of some sorts – a birthday, an evening out with friends,
a visit to the mall with family. With more working couples, higher income, and less time available in the
kitchen, more and more instances of eating out will also be ‘necessity based’. This is no different from other
countries that have gone through the development cycle before us. An interesting comparison here is the
purpose that cafés serve in India versus in developed countries. In India, a larger share of business for
café chains comes from the second half of the day, in the evenings, etc. when customers visit a café for a
leisurely coffee with friends or family. However, café chains in developed markets get most of their business
in the morning half, when customers pick up a coffee and some food on the way to work, a replacement
for the home kitchen!
The food services retail market in India today is estimated at Rs 32,000 crore, and is expected to grow
at a CAGR of 8-10 per cent over the next five years. Of this, the organised market currently accounts for
around Rs 4,000 crore, and is expected to grow at a CAGR of 25-30 per cent, and could be a Rs 15,000
crore market by 2015. This is already large enough to excite both international and Indian food chains.
However, the real growth fillip could be provided to the market by the ‘necessity based’ eating out space,
and all growth projections for the food services retail market could turn out to be pleasantly incorrect and
understated.
Given this large emerging opportunity in ‘necessity based’ eating out in India, let’s now look at what is
required by the customer and what is currently available in the market. The average adult Indian needs
about 1,800-2,200 calories per day, which is around 700 calories per lunch or dinner. Such a meal needs
to be tasty, hygienic, healthy, priced right, and conveniently available. Also, while Indians are increasingly
open to different international cuisines, over 80 per cent of food consumed (at home or outside) continues
to be Indian food. For a middle-class household, such a meal cooked at home probably costs somewhere
between Rs 35–50 (US$ 1 or less) per head, when one accounts for food and labour costs.
What is available in Indian cuisine on an average is largely fine-dining/sit-down focused, and that too leaves
a lot to be desired. Menus are too long, with the objective of providing variety, but this reduces economies
of scale and increases price points. Input raw material quality is poor (largely the lowest grade vegetables
from mandis across the country), and is covered up with large quantities of fat (gravy) in some form,
An Indian McDonald’s Anyone? | 80

resulting in a meal that is probably 1,300 calories and way higher than the desired 700 calories. No wonder
visitors from overseas often remark at the large difference between an Indian meal at home versus at a
restaurant, though they usually love both versions.
Further, various improvement opportunities exist from a business design perspective. A large menu means
a large kitchen, which is expensive retail real estate not being used for customer seating. Also, restaurant
managers tend to measure capacity utilisation by ‘tables occupied/capacity tables’, while what is required
to be measured is ‘seats occupied/capacity seats’, which needs a flexible seating plan to be designed and
managed.
Indian food outlets continue to hold their own against multinational chains as Indian consumers have a
strong preference for local and regional food. However, these outlets have not been able to ramp up the
number of outlets as coffee chains or international quick-serve restaurants have successfully done.
A very strong opportunity for a business ‘built for India’ presents itself: a format designed for ‘necessity
based’ eating out, with Indian cuisine, simplified and standardized menus, industrial centralized kitchens,
an efficient sourcing and supply chain (including a cold chain) with built-in economy of scale, hygienic
and clean ambience, tasty and healthy food, a smaller retail kitchen, flexible seating, and prices marginally
higher than a meal cooked at home. Around 500-700 such outlets, across 40-50 cities, over 5-7 years,
generating revenues of Rs 1,000-1,400 crore per annum would make this opportunity interesting for Indian
business houses as well as international chains. And, extensions into home delivery, institutional business,
ready-to-eat meals, etc. could further enlarge the size and scale of such a business. So, a fully Indian
McDonald’s anyone?
Author
81 | An Indian McDonald’s Anyone?

Representative Cross-section of Our

Projects
Food Services Retailing: India Entry Strategy
The client is an international Quick Service Restaurant (QSR) brand. The assignment entails mapping of
consumer eating habits and preferences, demand estimation, assessment of market potential, detailed
analysis of competitive landscape including their operating models, and feasibility of the brand’s entry
and expansion in India. A management workshop detailing consumer and business facets in India has
been completed. An entry strategy and the most appropriate execution plan for entry and expansion are
underway.
Consumer Durables and Electronics Products: Retail Strategy

The client is a leading consumer electronics and durables brand and manufacturer in India. The assignment
entails a mapping of consumer needs, projection of evolution of retail in the consumer electronics and
durables category, and feasibility of expanding client brand presence and reach through own network
of exclusive brand stores. A strategy and execution plan for sizable expansion of brand stores has been
recommended. Preparation for commencing implementation is underway.
Food and Food Services Retailing: Market Entry Strategy and Implementation Assistance
The client is a rapidly growing Indian conglomerate. The assignment entails sizing market potential for food
services and processed non-vegetarian food retailing in India to expand their presence in the food category,
with entry in the quick service restaurant business and expansion of current food retailing business. A
strategy and execution plan has been recommended to launch QSR and expand the retail business.
Travel Retail: Concept Design to Implementation Planning and Assistance

The client is a leading infrastructure company and has been developing one of the large airports in India.
The assignment involves preparation of the non-aeronautical commercial revenue strategy for the new
terminals. Technopak delivered insights on traveller need-gaps, prepared the concept for commercial
areas and a detailed revenue model, coordinated the leasing and supported the execution.
Fashion and Sports: Market Assessment and Future Strategy

The client is a leading global fashion brand specialising in sports-casual wear. The assignment involves an
understanding of the client’s current market penetration in India, competitive positioning and an in-depth
analysis of the market size for relevant product lines to assess future opportunity for the client. Based on
our recommendations, the client’s India operations strategy is being modified.
Textiles: ‘Invest in India’ Campaign Execution

The Ministry of Textiles initiated an ‘Invest in India’ campaign to attract FDI into the Indian textiles sector. The
assignment involves execution of the campaign including the identification of target countries and potential
investor companies and showcasing the Indian textile industry through a series of seminars. As a result of
the campaign, several companies are evaluating their India investment plans, and the Government of India
has decided to continue this initiative and target companies in the USA and Asia in the next phase.
Textile and Apparel: Growth Strategy and Implementation Planning

The client is a leading private equity player interested in maximising the value of one of their invested
companies – a well known Indian suiting brand. The assignment entails understanding current operations
and synergising the same with other related opportunities in the segment. A strategy and execution plan to
expand current operations and/or venture into retail business has been recommended.
Representative Cross-section of Our Projects | 82

Apparel: Productivity Enhancement

The client is one of the apparel exporters manufacturing quality garments for premium, fashion, mass
and medium segment buyers in India. The assignment entails improving productivity per operator in the
centralised sample room. Technopak mapped processes and refined control mechanisms across the
processes. As a result, productivity improved by 26 per cent and direct labour cost reduced by 14 per
cent.
Apparel: Productivity Enhancement

The client is a leading retailer in Europe catering to high-fashion apparel. The assignment involved
establishing manufacturing/productivity metrics with key suppliers in woven and knit apparel products. The
client first finalised KPIs in consultation with the suppliers. Technopak evaluated the supplier’s manufacturing
facilities for current process enablers and measures, compiled the results and trained the supplier teams
on the methodology. The process of establishing the measures is currently underway.
Healthcare: Business Strategy

The client is a start-up company promoted by a prominent Indian conglomerate. The objective of the project
is concept testing of ‘Branded Primary Clinics’ in tier III towns targeting middle income class segment. The
project entails mapping patterns in consumer spending on healthcare, preference for branded clinics and
various physician engagement models. A strategic framework and business plan with a possible service
mix for the clinic has been recommended.
Healthcare: Business Strategy and Partner Selection

The client is a leading Indian group with a vision to develop a ‘Knowledge Pentagon’ comprising healthcare
and education clusters. The assignment entails making an investor pitch and identifying a potential foreign
collaborator. It encompasses market research and business planning for healthcare delivery centres as
well as medical and para-medical education institutes.
Healthcare: Market Assessment and Report Development

The client is a multilateral funding agency. The project scope includes assessment of private healthcare
providers in tier II cities and rural India, mapping of business environment, need-gaps and estimation of
their growth potential. It also covers the health-seeking patterns of the section of population with income
below US$ 5 per day. A report outlining business opportunities and recommendations for the Government,
development organisations, entrepreneurs and financial institutions is underway for publication.
Mega Food Parks: Project Management Services

The client is the Union Ministry of Food Processing and Industries, Government of India. Technopak has
been engaged as a Project Management Consultant under the Mega Food Park Project and the role involves
preparation of the Detailed Project Report (DPR), utilisation of Government-provided funds, monitoring
project progress and acting as a bridge between public and private participants for reporting purposes and
implementation assistance. Implementation of projects is underway in the states of Uttaranchal, Assam
and Jharkhand.
K–12 Education: Business Strategy and Entry Assistance

The client is a multi-billion dollar Indian company and is looking to enter the education space. The
assignment includes opportunity mapping in the K–12 space and studying the key schooling segments,
current need-gaps, various regulatory issues and financial feasibility for the project. Currently work is in
progress to identify strategic tie-up/acquisition opportunities with current running schools.
Telecom Products: Market Feasibility and Channel Strategy

The client is a leading mobile handset brand. The assignment entailed assessing feasibility of an innovative
financial transaction tool through deciphering existing financial transaction options available and used by
micro-entrepreneurs and traditional trade channel, assessing receptiveness to the new technology, market
segmentation, developing value proposition, and creating a detailed and viable channel strategy to reach
the target segment.
83 | Representative Cross-section of Our Projects

About Technopak
We are a management consulting firm with a difference. Founded in 1992 on the principle of “concept” to
“commissioning”, we are in the top 5 consulting firms in India by revenues. We are strategic advisors to
our clients during the ideation phase, implementation guides through start-up phase, and trusted advisors
overall. The industries we serve include Retail, Consumer Products, Fashion (Textiles & Apparel),
Healthcare, Hospitality & Leisure, Food & Agriculture, Education and Real Estate.
Our clients are leading Indian and international businesses, entrepreneurs, investment houses, multilateral
development bodies and governments. Our 600+ clients include Aditya Birla Group, Apollo Hospitals,
Arvind Limited, Asian Development Bank, Asian Paints, Temasek Holdings, Essar, GMR Group, Godrej
Group, Gujarat Government, Hospital Corporation of America, ICICI Limited, Hindustan Unilever Limited,
International Finance Corporation, Lenovo International, Mahindra Group, Marks & Spencer, Mother Dairy
Foods, Ministries of Food Processing, Textiles & Commerce, Raymond, Reliance Industries, Samsung,
Sequoia Capital, Starwood (Sheraton), Tata Group, United Nations Development Program, Walt Disney,
Warburg Pincus and many other Indian and international leaders.
Services We Offer in Management Consulting

At Technopak, we foster innovation and creativity which challenge conventional thinking and generate
practical and far reaching solutions for our clients. In 2009, we worked with over 95 clients across 120+
projects, in 12 countries besides India, across 3 continents.
Our key services are:

Business Strategy. Assistance in developing value creating strategies based on consumer insights,
competition mapping, international benchmarking and client capabilities.
Start-Up Assistance. Leveraging operations and industry expertise to ‘commission the concept’ on
turnkey basis.
Performance Enhancement. Operations, industry & management of change expertise to enhance the
performance and value of client operations and businesses.
Capital Advisory. Supporting business strategy and execution with comprehensive capital advisory in our
industries of focus.
Consumer Insights. Holistic consumer & shopper understanding applied to offer implementable business
solutions.
84
Services We Offer Through Our Group Companies
Insights and innovation led product, packaging, space and strategic design, including design research,
concepts, engineering and prototyping. A blend of unique, contemporary and relevant concepts and
solutions.
www.foleydesigns.com
Holistic consumer understanding applied to offer implementable business solutions revolving around
shopper insights, trend insights, design and innovation insights, marketing communication and measuring
customer delight.
www.indiamindscape.com
Strategizing, planning and managing creation, development and growth of brands through a scientific,
transparent and process-driven methodology.
www.vertebrand.com
Engineering
Planning, implementation and project management of plants, warehouses and entertainment centres with a
focus on modernization, process improvement, technical valuation, power & water audit and environmental
engineering.
www.technopak.com/engineering
Services We Offer Through Our Strategic Partnerships
World’s largest privately held real estate services firm. We offer, through them, comprehensive retail real estate
solutions to our clients.
www.cushwake.com
UK’s leading design consultancy for developing brand environments. We offer, through them, design solution
for retail environments.
www.dalziel-pow.co.uk
Global research and consulting firm specializing in the study of human behavior in retail, service, home, and on-
line environments. We offer consumer and shopper insights.
www.envirosell.com
DEVEREUX
A R C H I T E C T S
Partners with Technopak for delivering Projects in India. They are one of the top architectural practices in the UK
with extensive experience in architectural and urban design projects in UK and internationally. The practice has
major specialism’s in Healthcare Architecture
www.devereuxarchitects.com
85
www.technopak.com Concept by Technopak Advisors Pvt. Ltd. ©Technopak Advisors Pvt. Ltd.
Technopak Advisors Pvt. Ltd.
Gurgaon Bangalore Mumbai
4th Floor, Tower A, Building 8 Prestige Solitaire, Ground Floor, 101-105, 2nd Floor, Sunjana Tower
DLF Cyber City, Phase II, 6 Brunton Road, Off MG Road, Sun Magnetica Service Road,
Gurgaon 122 002 Bangalore 560 025 Luis Wadi, Thane West,
(National Capital Region of Delhi) India Mumbai 400 602
T: +91-124-454 1111 T: +91-80-4034 8600 T: +91-22-2583 2222

F: +91-124-454 1198 F: +91-80-4034 8699 F: +91-22-2583 8408
87 | India’s Emerging Hot-Spots

TPK Perspective Vol4

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Design & Development

Raghav Gupta, President I raghav.gupta@technopak.com

Game Change in Healthcare?

Integrating AYUSH System in Healthcare Delivery

The Four A’s of Education

An Update on Nine Significant Regulatory

Branding in the T-20 Era

An Overview of India’s Consumer and Retail

India’s Emerging Hot-spots

Green Building Concepts : An Approach Towards

Emerging Opportunities in Travel Retail

India’s Food Vision: The Next Decade

An Indian McDonald’s Anyone?

82 Representative Cross-section of Our Projects

Game Change in Healthcare?

1 | Game Change in Healthcare?

Market Size and Growth Drivers 04

System of Medicine Concepts and Principles Treatment Approach

It is mainly dependent on the temperament Pharmacotherapy is mainly dependent upon

3 | Integrating AYUSH System in Healthcare Delivery

Market Size and Growth Drivers

Integrating AYUSH System in Healthcare Delivery | 4

Naresh Trehan, Chairman and Managing Director, Medanta Medicity

5 | Integrating AYUSH System in Healthcare Delivery

Integrating AYUSH System in Healthcare Delivery | 6

The Educational System of AYUSH

7 | Integrating AYUSH System in Healthcare Delivery

Current Infrastructure in AYUSH

• National Institute of Siddha (NIS), Chennai

Integrating AYUSH System in Healthcare Delivery | 8

• These Councils are responsible for laying down Exhibit 5:

and maintaining the minimum standards of Human Resources for AYUSH

• Lack of contemporary environment

9 | Integrating AYUSH System in Healthcare Delivery

The Four A’s of Education

The Four A’s of Education | 10

The Right of Children to Free and

Foreign Educational Institutions

The Prohibition of Unfair Practices

The National Accreditation Regulatory

The Educational Tribunals Bill,

National Higher Education

1. Examination Reforms: Class X Board Exams Optional for CBSE Students

What Does it Entail?

Impact on Current and Future Institutes

Impact on Students and Parents

2. The Right of Children to Free and Compulsory Education Act, 2009

What Does it Entail?

13 | An Update on Nine Significant Regulatory Changes in Education in India

Impact on Current Institutes

Impact on Future Institutes

Impact on Students and Parents

Impact on Other Stakeholders / Investors

An Update on Nine Significant Regulatory Changes in Education in India | 14

3. Derecognition of Deemed Universities

What Does it Entail?

Impact on Current Institutes

Impact on Future Institutes

Impact on Students and Parents

15 | An Update on Nine Significant Regulatory Changes in Education in India