In India to inaugurate a 50-acre campus in Mumbai, Paul Hermelin, CapGemini group chairman and CEO said the company will set up a new innovation center within the campus with focus on more R&D work. Called The Applied Innovation Exchange, the center is expected to focus on enhancing Capgemini’s service offerings, including digital and infrastructure services, which would be delivered to global customers based in the U.S. and Europe.
“Following the iGate integration, we wondered how we can put India at the heart of the group. The question is: is it the heart, the brain or backbone? For me, it is the backbone of the group because it (India) holds the group together,” Hermelin said at a media event in Mumbai.
Post iGate’s acquisition, the headcount of the group in India increased to around 90,000 people, making the country its largest offshore center. The company plans to further hire 25,000 to 30,000 employees in India over the next one year. Currently it has an employee strength of nearly 190,000 across the globe, reports Live Mint.
April 15, 2016 No Comments
“Urban World: The Global Consumers to Watch”, a report by the McKinsey Global Institute says that global urban consumption is expected to grow by $23 trillion over 15 years, at a compound annual growth rate of 3.6 percent. 32 cities globally, including two from India – Delhi and Mumbai – will likely generate one-quarter of total urban consumption growth between 2015 and 2030, and by 2030, consumers in large cities across the world will account for 81 percent of global consumption, which is “extraordinarily concentrated”, reports India Today.
The report noted the beginning of two significant trends: the heavy spending on healthcare among seniors in developed regions and increasing spending by consumers in emerging economies. “In India, such spending accounted for 35 percent of average household consumption; by 2025, and McKinsey Global Institute expects this share to have increased to 70 percent,” the report said.
“Emerging demographics are the new emerging markets: The question is no longer where to search the globe for growth, but which demographic groups have the most spending power,” it says.
Key Takeaways for India:
- 70% growth to come from population between the ages of 15 and 59
- 79% growth through rise in per capita consumption
- Growth will be concentrated in Ahmedabad, Bangalore, Delhi, Hyderabad and Mumbai
- Urban population growth to be moderate at 2.2%
Older age segments are growing faster – Sixty-plus populations are expanding at four percent compounded annual growth rate, and the under-30 population at 1.5 per cent CAGR.
Businesses will need to factor in shifting urban demographics while evolving their footprint. “Knowing which cities, and even which neighborhoods within cities are home to key consumers will matter,” said the report. It added that companies will have to tailor products and services for an increasingly diverse consumer market, reports Business Standard.
April 5, 2016 No Comments
The top 10 Hollywood releases in the country last year collected about $98 million in box office, up almost 34 percent from $64.7 million in 2014, according to a report by consulting firm KPMG India. This marked the highest ever growth recorded for the top 10 Hollywood box-office titles in India recorded by KPMG.
The annual report on the overall state of the Indian entertainment industry was released at the three-day Ficci Frames Conference that began on March 30 in Mumbai.
The report stated that Furious 7 was the top Hollywood title in India in 2015 with $23.3 million in box office, followed by Jurassic World with $21.8 million. Both titles crossed the local billion rupee bench mark, the first time two Hollywood titles did so in the same year
“Hollywood’s performance last year means that its market share in India increased from about six percent to about eight to nine percent,” KPMG India consultant Jehil Thakkar told The Hollywood Reporter.
The report also shows that total revenue in 2015 for the Indian film industry was up by about nine percent to $2.09 billion. This would mean that Hollywood’s overall market share of this figure amounted to about $188.1 million.
The Avengers: Age of Ultron ($16.2 million), Mission: Impossible – Rogue Nation ($11.6 million) and Terminator Genisys ($4.9 million) were among the top five earners. Star Wars: The Force Awakens was in the seventh spot with $4.6 million as it competed against two of the biggest Bollywood releases during its opening weekend: top star Shah Rukh Khan‘s Dilwale and historical drama Bajirao Mastani, starring actresses Priyanka Chopra (Quantico) and Deepika Padukone and actor Ranveer Singh. The film went on to collect over $50 million.
March 31, 2016 No Comments
110 miles from the western megalopolis of Mumbai, in the city of Nashik, more than 3000 acres of land are covered by vineyards that produce 80 percent of India’s total production of wine. Nashik boasts of an annual output of 13 million litres of wine, and given that India is one of the youngest wine-producing nations in the world, this number is impressive.
The city got its first winery in 1997 – Sula Vineyards. The executive vice president, Neeraj Agarwal says, “Most wine-grape varieties from cool and warm climates grow well here because of the long ripening window and the mild winter season at harvest. This enables the cultivation of many wine-grape varieties such as Sauvignon Blanc, Chenin Blanc, Riesling, Viognier, Chardonnay, Shiraz, Cabernet Sauvignon, Tempranillo, Malbec, Grenache and Pinot.”
Since the 1920s Nashik’s Thompson seedless, the highest grape grade, has had a worldwide market. A study by the National Bank for Agriculture and Rural Development reports that of the 107,257 tons of grapes exported by India to Europe, Middle East, and South-East Asia in 2014 – 2015, about one-third were sourced from Nashik alone.
There are 50 to 60 wineries in Nashik of which five or six are major players that export wine to the U.S., U.K., Europe, S.E. Asia, W. Africa, Australia and Japan. The smaller wineries are popular destinations for wine tourism.
March 7, 2016 No Comments
In an interview with Forbes, Gunjan Srivastava, the CEO and managing director of Bosch Siemens Home Appliances recounted how his company differentiated itself in the competitive market of washing machines.
The prevailing front load washing machine market in india was dominated by machines that could wash 13 pounds of clothes. However, their own research documented that a machine that could load 15.5 pounds was a necessity in India, given the prevalence of extended families. Even though the 13 pound capacity machines had a market share of 85 percent while the latter accounted for around 15 percent, they stood by their research and entered the market with the larger capacity front load product in September 2014. Their strategy was substantiated by a research report put forth by Gfk Nielsen which stated that the market size for the larger machines had subsequently risen to 25 percent.
The Bosch Siemens Home Appliances research further reported that consumers wanted shorter wash cycles, faster drying, lower power consumption and lesser use of water. Some consumers wanted a feature where they could add more clothes mid-cycle, while others wanted a special cycle for saris and dhotis. With the aim of tapping the top 200 cities in India, the company realized the need to incorporate what the consumers wanted in the machines they manufactured in India.
“Voltage fluctuations are common in India and we could have sold the product with an external stabilizer, but we realized that the consumer wouldn’t accept this. So we incorporated an internal stabilizer (this is a modification that most multinational home appliance companies have made for the Indian market). Second, clothes don’t dry easily in the monsoon. That is when consumers feel the need for a powerful dryer. We ensured the machine we built in our Chennai factory had high drying efficiency,” Srivastava explained.
Additionally, having a dual-brand strategy helped, where the premium Siemens brand was sold in Mumbai, and the more affordable Bosch was marketed in South India.
December 14, 2015 No Comments