EMERGING OPPORTUNITIES FOR INDIAN ENTREPRENEURS

It is high time out entrepreneurs realize the2-5 per cent of per capita consumption in developed
importance of being choosy in project identification.countries like the US. Use of plastics in India, both in
Till recently, we in India kept on exploring theIndustries and households, is going to pick up in
possibilities of manufacturing almost everything, rightcoming years. In spite of ill effects of use of plastics,
from pins to planes and screws to sub-marines. Justit is rather impossible to manage without it. The
as companies and individuals carry out SWOT analysisIndian plastic market is presently experiencing a
for identifying business opportunities for ourgrowth rate of more than 10 per cent per annum. It
entrepreneurs. The completing demands for ourprovides scope for setting up small-scale plastic
limited and meager resources are many and unlessprocessing enterprises for manufacture of variety of
we apply a degree of selectivity in our approach inplastic products.
resource allocation, we will continue to be a nation ofToys
foundation stones. Given below are a few areasToy manufacturing (especially stuffed toys) is a low
where we can think of concentrating more.technology based less capital intensive and highly
Tourism and Hospitalitylabor intensive industry. Superstores abroad usually
India is a country of many countries. Our diversesource toys from China, Korea and Hong Kong.
culture, religions, languages, rich heritage and vastConsumption of toys in India and abroad is increasing.
geographical area make the country a place of touristIn India, the toy market grew 10-12 per cent per
attraction. Hills and beaches, temples and palaces, theannum during the late 1990s. It is estimated to touch
deserts and the jungles are all these. There are notan annual growth rate of 15 per cent soon. India has
many countries in the world where you can surf thepotential to manufacture cost effective toys largely
sand and the sea. Privatization of airports and aviationfor Indian market and also for world toy market. If
sector could further give boost to tourism industry.China and Korea can do it why cannot we? Our
Tourism should therefore receive topmost priority.entrepreneurs need to consider toy manufacturing as
Auto Ancillariesa rewarding business.
India may not be the best car-manufacturing base,Floriculture
but we can certainly be the best ancillaries to theIndian flowers are becoming increasingly popular in
automobile industry world over. Our entrepreneursthe world market. Flower market, especially exports,
are capable to developing global scale auto ancillaries.is becoming favorable to Indian florists.
By all means, we should also continue carImprovements in infrastructure and transport facilities
manufacturing, but we must do it at a scale andwould further brighten the prospects of Indian
quality at which the world community takes usflowers abroad. At the same time, florists need to
seriously.concentrate on domestic flower market as well.
Two WheelersHealth-care Sector
As a nation we have excelled in production of twoIndia's population to hospital bed ratio is a very poor
wheelers - be they cycles, scooters or motorcycles.compared to World Health Organization's standards.
We have the technology, the skills, and most of all,(India's population to hospital bed ratio is 1300: 1
the critical mass to affect a breakthrough. We shouldagainst the WHO recommended ratio of 250: 1). With
aim at capturing the world's two-wheelers markets.the funds receding in government kitty, private
Garmentssector will be required to play major role in the
India has the potential of becoming a leading supplierhealth-care sector. Health-care, both in corporatized
of garments, apparels, silk, hosiery and textiles. Indiansector (Organized sector) and also in informal sector,
textiles are well known world over. Our Ludhiana andhas potential for high growth in India.
Tirupur entrepreneurs have done proud to theBiotechnology
country in the area of woolen and cotton industry.It is believed that early twenty-first century will
By understanding customer needs through extensivebelong to biotechnology and software in India. In
and systematic market research we can captureIndia biotechnology has just started picking up.
more markets world over.Application of biotechnology especially in the areas of
Softwareagriculture, horticulture, sericulture, poultry, dairy and
India has already made a strong dent in world'sproduction of fruit and vegetables will pay an
software market. For us the most natural thing is toimportant role in future. We should go for commercial
be number one software and consultancy servicesapplication of biotechnology in various sectors of
suppliers. Our country has the right resources in theeconomy wherever it is found feasible. Biotechnology
form of vast population of educated youth. Otherwould therefore throw open many opportunities for
developed and developing countries with vastentrepreneurs in future.
resources can perhaps continue making advances inInformation Technology (IT) Enabled Services
manufacturing of computers, computer hardware andBusiness to Business Portal Solution (B2BPS) Services
computer chips year after year. Software exportswould be needed in a big way to address the
from India are growing more than 50 per cent peremerging needs of IT enabled services sector. IT
annum.enabled services is a US$ 180 billion business. The
Light and Medium Engineering Industrysector includes services like GIS digitization, medical
Many countries of the world are far ahead of India inand legal transcription, medical billion, and insurance
manufacturing aircraft, ship and products of similarclaim processing and archival and indexing of records.
nature. Unfortunately, we in India try to manufactureAll these, and many more services, could be provided
everything and finally end up doing nothing well. Ourby Indian entrepreneurs. The pool of smaller service
strength lies in the light and medium engineeringproviders from India can meet the needs of
industry. We are in a position to provide a leadingoutsourcing from US, and other developed countries.
edge in this industry. India also has the capability ofThe InfoTech industry is the fastest growing sector
becoming world's best foundry products maker. Wein India. Indian IT industry is of the size of US $5
should concentrate more areas where we have anbillion at present and it is slated to grow to 20 times
edge rather than thinly spreading our limitedits current size of $100 billion by 2010. Prof. Michael
resources and expertize in areas like manufacture ofDertouzos, Director, Computer Science Laboratory at
aircraft and flexible machine systems.MIT (USA), visited India in February 2000 in
Trading/Suppliesconnection with IT Asia 2000 conference. He was
Among India's vast population there are communitieshighly impressed by number of English literate people
like Marwaris, Punjabis, Gujaratis, Tamilians, etc., within India and spread of IT enabled services. He said
acumen for trading and acting as suppliers. It is,that India can funnel a majority of new $3 trillion
therefore, logical on part of such communities tobusiness opportunity being generated in the area of
become global players in trading and operate atIT-enabled services - outsourcing basic white collar
international levels. By doing so we will be doingoffice work - by harnessing its 50 million English
something that we are good at.literate populations. Mr. Dertouzos feels that after call
Education and Trainingcentres and medical transcription, a new business
India has some of the world's best universities andopportunity of outsourcing office work - accounting,
educational institutes, i.e., JNU, IIMS, IITS, IISc, etc.legal, finance, marketing, claim forms - to developing
The cost of education and training in India is nominalcountries is gaining popularity and Indian stands a
in comparison to developed countries. There is vastgood chance, right away, to grab a major share of
reservoir of talented people in the country. By poolingthis business. "Office work is estimated to be around
resources and networking with resource organizations$3 trillion annually and can fetch a decent $20,000 per
we can create education and training facilities notannum to individuals in this business.
only for Indians but also for scholars from abroad.Education Portals
Indian educational institutions, both government andApplication of information technology to education
privately managed, have the capacity and expertisesector has started revolutionizing the process of
to offer affordable education to persons from othereducation in the country. MNCs and Indian Internet
countries.companies have started setting up education portals
Poultryin the country. In days to come professional
India holds lot of potential for developing its poultryeducation like management, medicines, engineering,
and poultry - based industries. A vast population andlaw etc., would be taught by making extensive use
export potential make this industry a lucrative activityof internet. Under the new innovative and emerging
for those who want to be in poultry allied industry.concept students would study and learn educational
Food Processingcourses both at school and college level online, i.e.,
India has emerged as one of the topmost foodthrough internet. Some companies have already set
producing countries in the world. Indian climate isup their web-sites, which offer various courses for
suitable for growing vast varieties of food grain. Atschool level students. IT-friendly potential
present, most of the food grain is sold in raw form.entrepreneurs can look forward to getting franchise
In food habits the world over is undergoing change.of major players in providing IT based educational
As a matter of convenience, people, especiallycourses.
youngsters, prefer fast food or ready to eat food.Organized Retailing
Indian food is well known world over. We need toAs per industry estimates, total consumer spending in
exploit this potential by processing our food grains.India is of the order of Rs.3, 80,000 crore. Current
Processed food will have good market in India as wellvolume of organized retailing in India is about Rs.5,
as abroad. Food processing would also help us earn000 crore. The organized retail industry business in
must-needed foreign exchange.India is expected to grow between 50-60 per cent
Fruit and Vegetable Processingeach year during the next few years. Organized retail
Fruit and vegetables are grown in plenty in India. Theindustry is likely to achieve sales volume of Rs.30,000
country has emerged as a leading producer of fruitcrore by 2005 and would move into smaller cities in
and vegetables. Because of poor transportationIndia, given that there is beginning to be some comb
facilities, inefficient infrastructure, bumper crops andlance of competition among organized retailers in the
lack of marketing facilities, many a time, lots ofbig cities. Retailing as a business, till recently, was
vegetables and fruit simply go waste. We need toconfined to small-scale shopkeepers but now even
create fruit and vegetable processing facilities all overlarge business houses have started considering it a
the country so as to harness the potential for theirpotential opportunity. Venture capital and bank
production. Fruit and vegetable processing offersfinance is also now available for prospective retailers.
potential for high value addition and potentialExperts in retail industry feel that retail business is
entrepreneurs can earn a lot from such products. Bytruly globalization, and common patterns are
processing of fruit and vegetables, our producers willemerging. Electronic retailing is yet another emerging
get proper price for their products, entrepreneurs willarea. Electronic retailing is happening more in business
have good business opportunities, masses will getto business space than in the business to consumer
employment and export of processed fruit andspace.
vegetables will increase. While processing fruit andProcessing, Refrigeration and Transportation of Food,
vegetables, our entrepreneurs need to take allVegetables and Fruits
possible care so as to ensure quality and standard ofIndia has long suffered the lack of a comprehensive
their products.cold chain. A large Purdon of agricultural and other
Manufacture of Business Attiresproducts produced in the country perish due to the
Manufacture of business attires, especially for Indianlack of a serviceable refrigerated storage and
women, is going to be a rewarding business in daysdistribution network. A detailed study conducted by
to come. Women's participation in white-collar jobs isthe government on the agricultural and food industry
on the increase. With the influx of multinationalhas revealed that one-third of the products are
companies in India, workplace outlook andruined due to the lack of adequate storage and
environment are improving. Well managed companies,preservation facilities. Meat, poultry, fresh produce
whether MNCs or of Indian origin, expect theirand dairy can only be distributed within limited
employees to look smart and dress well. Some ofgeography and need to be consumed in a short
the organizations also prescribe a dress code.period. Also, sensitive medical requisition like vaccine
Increasing presence of women in various workplacesand pharmaceuticals are suffering due to the lack of
has given a boost to business attire market. Tillrefrigerated distribution. This state of affairs needs to
recently, business attires, especially for women usedbe changed. Food and other precious resources in our
to originate from developed countries and womencountry must be preserved at all costs. The
used to pay hefty price for such dresses. Therefrigeration industry would be required to come
growing business attire market offers good businessthrough providing a wide range of industrial and
opportunities in this sector. Our potentialcommercial refrigeration services that can serve the
entrepreneurs can think of getting into this businessentire gamut of cold storage and refrigerated
both for Indian and overseas clients.transport to retail display and preservation units.
Corporate GiftingCruising Business
Corporate gifting has picked up in India in the recentThe cruising business is gradually picking up in India.
years. Indian companies and business organizationsThe Rich and the Famous has led to immense
spend crores of rupees on giving gifts to theirpopularity of cruises in last four years (1996-1999)
employees, shareholders and business associates onwith numbers increasing to 15,000 in 1999 from
occasions like Diwali, New Year and Annual Generalpractically zero in 1996. The business of cruising
Meetings. As per rough estimates, corporate Indiarepresents enjoying the luxury of dining in fine
spends approximately Rs.1000 crore every year onrestaurants, casinos, excursions to golden beaches
corporate gifting and the culture is on the rise.and exotic islands. The perception of Indians about
Potential entrepreneurs, especially those good incruising business is changing. People no more consider
public relations, can easily get into such business.cruising as meant for elderly and retirees alone. The
Other associated businesses in this line could beconcept of a cruise holiday is becoming immensely
manufacture of greeting cards (Diwali, New Year,popular in India. The number of Indians holidaying on
Christmas, Valentine day, Birthday, etc.) for variouscruising trips in increasing due to enhanced awareness
occasions.through better marketing and advertising by our
Herbal Medicines and Skincare Productsoperators, fatter pay packets, and a growing
India has the distinction of growing vast variety oftendency to splurge.
herbs. Indian population of more than a billion ensuresTo site an example of what kind of services cruises
a sufficiently large market for herbal medicines andoffer, Mr. Gautam Chadha, Chief Executive Officer of
skincare products. People, world over, in general andDiscover the World Marketing (this company owns
in developed countries, in particular, are becomingtwo famous cruise lines, Royal Caribbean Cruises and
increasingly aware of after-effects of allopathicCelebrity Cruises) said P "You will never, ever be
medicines and synthetic skincare products. Women, inbored. You simply find a corner on ship's library, relax
particular, are slowly switching over from syntheticin a deck chair or lounge on private veranda. For fun
skincare products to herbal-based products. India hasloving people, ships organize various activities such as
an established tradition of growing and using varietyflower arrangements, art auctions, cabarets, casino -
of herbs. We need to go in for commercialization ofLas Vegas style, guest singers, live bands, and the
herbal-based medicines and skincare products in a biglike". He expects a growth rate of 25-30 per cent per
way.annum in cruising business. At present, India does not
Mineral Waterrepresent even a fraction of the total world market
Even though mineral water manufacturing wasfor cruises. There are more than four million
started in India during the 1960s, but the market didpassengers onboard various cruise lines worldwide
not pick up till 1985. During late 1980s and 1990severy year, he added. Recently developments in
mineral water market in India increased by ancruising business clearly indicate good opportunities in
impressive rate of 30-40 per cent annum. Market forthis sector.
mineral water in India is spreading very fast. PeopleCourier Services
are becoming health conscious. We are going toE-commerce related business is poised for
enter in an era when potable bottled water wouldexponential growth in the early 21st century.
find place in almost all general stores and it willExpansion of E-commerce in India and world over has
become an unavoidable expenditure for people atgiven a boost to courier business. Recent increase in
large. Statistics reveal that size of Indian Mineralshare prices of leading courier companies (1400 per
water market during 1999 was of the order ofcent increase in share price of Elbee Services in just
approximately Rs.800 crore. Many small-scalesix months and 400 per cent increase in share price
entrepreneurs can find business opportunities in thisof Blue Dart) is a clear indication of growth potential
fast growing market.of courier related businesses. The logic is very simple.
Paints, Enamels and VarnishesThe service industry is expected to grow in leaps
India is presently experiencing an automobileand bounds in the near future for the simple reason
revolution. Standard of living of the sizeable Indianthat physical delivery of goods will be primarily
middle class is also improving at a rapid pace. Bothhandled by courier services companies. Corporate in
these trends indicate an increasing market for paints,Net business will not be in a position to support a
enamels and varnishing. Industrial and household usemassive network of distribution, whose job in future
of these products is quite promising and much betterwill be reduced to just delivering the goods
than many other products. Manufacture of thesemanufactured from the manufacturer's doorsteps to
products in small-scale sector should therefore needthe consumers. Besides maintaining a large network
to be considered as a viable business proposition.of distributors is expensive when even the big wigs
Organic Farmingin the industry are cutting costs. Due to these
The concept of organic farming is of very recentdifficulties courier companies with an elaborate
origin in India, Many developed countries grow foodnetwork would have enough business to transact.
organically. Health conscious persons prefer organicallyTheir network is going to be particularly beneficial to
grown food. In India also, people are becomingFast Moving Consumer Goods (FMCG) companies
increasingly health conscious. They are well aware ofwho, at present, depend on a network of sales
after effects of food and vegetables, which arepersons to make their product reach the retail levels.
grown by making excessive use of chemicalIf recent trends serve any indication, courier services,
fertilizers, pesticides and insecticides. Some companiesboth in organized and unorganized sectors ensure a
and individual farmers have started organic farming inpromising future.
India. To ensure better health for our people weSummer Solution Related Business Opportunities
need to promote organic farming in a big way. OurSummer and power cuts are synonymous in India.
potential entrepreneurs with interest in agriculturalGone are the days when standby solutions to power
related activities would perhaps find good businesscuts in the form of 'Hat and Pankha', 'Khas ki Chik',
opportunities in this area.'Surahi', etc. used to be kept handy. With the advent
Music and Entertainmentof technology solutions to frequent power cuts are
Music and entertainment are required the world over.immense. And for the times when power is regular
With a large number of channels in operation and alife can be bliss with a variety of cooling devices in
revolution in satellite technology the music andthe form of high tech air conditioner and coolers.
entertainment industry has thrown open numerousWith latest state of the art technology being imbibed
opportunities. Potential entrepreneurs should grabin these gadgets, healthy air and healthy food are a
opportunities in the fast developing music andde rigueur in today's AC and refrigerators. Silent
entertainment industry.invertors and one-pull generators are another lot
Writing Instrumentsbecoming an essential buys for almost every
Literacy rate in India is slowly improving. Some of thehousehold. Depending on the demand a variety of
conventional writing and learning materials are fastinvertors and generators can be manufactured by
becoming obsolete. Also because of economies ofsmall-scale entrepreneurs. Servo voltage stabilizers
scale and cheap labor availability, we as a nation areonline UPS, line interactive UPS, automatic voltage
in a position to manufacture writing instruments atstabilizers, constant voltage transformers, manual
affordable prices. Now with access to bettervoltage regulators, isolation transformers, high voltage
technologies and huge Indian and overseas markets,regulators, high voltage break down testers,
our entrepreneurs have an opportunity to exploit thiselectronic air conditioner protectors, spike
market.suppressors and busters are the other products
Plasticsrelated to summer solutions which can easily be
Per capita consumption of plastics in India is hardlymanufactured in small scale units.