Industry Statistics Of India

20/20 Vision...The Ophthalmic lens market in India

2010-06-24T14:59:00.010+05:30

At the outset I want to state that I am making reference in this post EXCLUSIVELY to the “LENS” market and NOT to the entire vision care market, which may include spectacle frames, services, laser surgery, consumables and many other such constituents. So we are just talking about the commonly used lenses: SPECTACLE LENS & CONTACT LENS....

It is estimated that approximately 28% of the population in India requires some sort of vision correction. This makes the market size for any type of lens a whopping 310 million individuals. The organized sector (including organized sector imports) accounts for a mere 16-18% of this market. Which means, a mere 50 million people use either of the lenses offered by the organized sector. The remaining is catered to (if at all) by the unorganized sector that includes cottage industry like units around Kolkata and Delhi or cheap imports from China, Philippines and Thailand

Coming back to industry statistics, a majority of the organized sector vision care patients, almost 98%, prefer to use spectacle lenses. Since lenses are normally bought in pairs it translates to 98 million spectacle lenses sold every year. Leading global players or manufacturers (also called the “Lens Casters”) are Essilor, Ziess, Hoya etc. with Essilor being a clear market leader. Around 60% of the share of sale is of mineral (glass) lenses. The remaining are synthetic lenses commonly called CR 39, Polycarbonate etc. The latter is growing at the rate of 16% annually while the mineral lens segment is reaching a plateau

The manner in which the raw lens manufactured by the casters reaches the neighborhood optician is an interesting, complex and financially rewarding business model

Lets turn our attention to Contact Lenses, these are of two types. The conventional contact lens and the disposable ones. The former are used for at least a year while the latter have to be bought at least three or four times a year. Now days there are even Daily Disposable Contact lenses but users are few. Conventional contact lens buyers are a majority whereas disposable contact lens account for 35% of contact lens users. Contact lenses are also sold in pairs and approximately 5 million of those are sold annually amongst a million users. Major players are Bausch & Lomb, Johnson & Johnson (Acuvue) & Ciba, with B&L accounting for a larger share (60%) of the conventional contact lens

The total size of the organized sector market for lenses in India is estimated at Rs.1500 Crores, which includes Rs.100 Crores of contact lenses

Considering that India is a country of a Billion plus people and with most people normally requiring vision correction beyond 40 this one complicated but attractive market to consider. There are business opportunities at many levels within this industry

The Beauty & the Beast (of an Industry!!! :-))

2010-05-27T13:22:00.020+05:30

Ah the ironies of life…beauty may be fleeting but the business of beauty is certainly not. One of the most stable, recession proof and profitable businesses that can ever be! Ever since it was formally recognized as an industry 100 years ago, it is rumored to have always overtaken GDP growth…......

But before we go any further on the statistics of the Indian beauty industry, lets clearly define what constitutes this industry. So here goes…

The beauty industry in India comprises of:
Skin Care segment that includes skin creams, moisturizers, cleansers, toners, astringents, sun protectors etc.
Hair Care segment that includes hair oils, dyes, shampoos, conditioners etc, and
Other Beauty Products segment such a makeup, nail enamels, lipsticks, lip gloss etc

A clear definition is important because the category does NOT include Beauty Soaps, Deodorants, Shaving products etc. Most definitions are muddled and overlapping because the mother category, FMCG, has a rather wide range of sub categories

Anyways that established, lets now move on to the statistics. It is estimated that the overall annual size of the beauty products category is approximately Rs. 5000 Crores split almost equally between Skincare & Haircare. And if beauty service industry is included then the size is estimated at Rs. 15000 Crores (that's the reason you see so many clinics and spas coming up)

Broadly there are two types of beauty products; personal beauty products and professional beauty products. As their names suggest the former can be self applied whereas latter requires professional help of beauty technicians and are therefore available only in a salons. Professional products account for a mere 14% of the total products market and are furtehr segmented into; Cosmeceuticals, dermaceuticals, active products etc. & other serious R&D based products specifically targeted at specifoc skin concerns like Acne etc. These account for 15-20 % of the professional range

Hindustan Unilever and L’Oreal are the accepted market leaders the skin and hair segments respectively. There are others like Schwarzkopf, Dabur, P&G, Cheryl’s Cosmeceuticals, Dermalogica and Neutrogena etc. in both these segments

It is he Rs. 10,000 crores beauty services market is where maximum action is taking place though. The segment is largely unorganized with thousand of individual beauticians and neighborhood parlors. But the organized segment is catching up with players like Lakme Salon, Lakme Studio Kaya Skin Clinic etc and many other local chains. Even here segments are emerging such as Spa, Clinics etc. The unorganized segment will see an exit of several fly by night, non-serious and unscrupulous players who have entered to make a fast buck

Jai Ho Bollywood- The Indian Film Industry

2010-04-23T18:04:00.014+05:30

LET ME NOT TELL YOU what you already know…. that the first motion picture was made in 1897 by Harishchandra Sakharam Bhatvadekar (a short film on a wrestling match), that the first feature film was “Raja Harishchandra" made by Dadasaheb Phalke in 1913 (a silent movie), that the first talkie was "Alam Ara" produced by Imperial Film Company in 1931…. But in deference to the theme of this blog I want to focus on the film industry statistics….

Although being the largest film producing country making over 1100 films every year (Hollywood makes 700!), with a film making tradition of a century, film making was recognized as an industry only as recently as 2000!!.......

The Indian film industry constitutes films made in India in a variety of languages. Most films are made in Hindi (350) followed by Telugu (300) and the remaining in other languages. The industry size is estimated at INR 20,000 Crores (around USD 4 Billion) & a typical share of source of revenue is: 70% from ticket sales, 8% overseas rights, 8% music rights, 8% TV, DVD mobile, gaming rights etc and about 4% from Hollywood films, either dubbed or original. Interestingly, Hollywood which rakes in a cool USD 10 Billion each year rules other markets like Europe and also Non-English markets like Japan where they have a 40% share, has had to accept the supremacy of Bollywood in India. Most Hollywood producers like Sony, Warner and Disney prefer to make true blue local films for this market rather than selling Hollywood films here ( Its just like McDonald making veg burgers for India!). After all it is difficult to ignore 20 million people going to the movies every day!!

Like Hollywood, even Bollywood is secretive about cost of production. While the numbers could be suspect, it is commonly assumed that while a Hollywood film of 60-90 minute costs on an average USD 75 million to make, Bollywood makes a 140 – 160 minute film at an average cost of around 2.5 Million (not including marketing costs, only production) Of course each has its exceptional big spender list every year like Avatar (USD 300 Million) and Jodha Akbar (USD 15 Million)

Anyway, this is one world beater industry out of India that generates employment for millions and has the opportunity to be a global leader one day…why, there could be a day when K-Jo directs J-Lo!! …. JAI HO BOLLYWOOD…

Indian Wrist Watch market

2010-04-20T13:32:00.009+05:30

50 million wristwatches are sold in India every year. Not withstanding the presence of global players and the opening up of the market, the Indian market has always been dominated by a single player. In the past, till the late 80’s, in the mechanical era, HMT dominated the market. And after that it has again been the domination of a single company, Titan. Today Titan has almost 65% market share of the organized watch market in the country. The organized watch market itself is estimated at 35% of the total industry size...........

In value tterms the size of the organized market is estimated at around Rs. 1500 crores, which means that the average price of watches sold even today is less than Rs.1000!!!

Watches are typically segmented into specialist watches and fashion watches. All International watch brands have a clear position as to where they belong. In India most sales are in the fashion segment and this fine distinction has not yet been used by marketers. Male watch buyers far outnumber females and account for around 65% of sales. Students are the largest segment of buyers accounting for approximately 30% of the sales.

Since penetration is still low and the unorganized sector big, this industry has a lot of scope to grow both in value and volume. The jury is still out though whether the Indian companies like Titan will lead this growth or the global majors like Seiko, Citizen etc. After all the domestic players have hitherto grown because of a retail strategy and the wining global players are clearly focused on product

The bicycle industry in India - pedal for a green earth

2010-01-27T16:41:00.013+05:30

India produces approximately 10% of the world annual bicycle production, which is estimated at 125 Million units.

The annual domestic demand of bicycles in India is approximately 10 million units out of which around 2.5 million units is a government demand for the various welfare schemes. Exports out of India are largely to Africa and the less developed economies and negligible to western markets...

Major players in the domestic bicycle industry are Hero Cycles, TI, Avon & Atlas with 40%, 22% & 17% & 10% of share of volume respectively. Most cycles manufactured & sold in India are in the low price bracket of Rs. 2,500 to 3000

The market for the premium or the lifestyle bikes targeted towards the lifestyle consumer is just about emerging. The definition of high end bikes it self is changing. Earlier the high-end bikes were considered as those selling between Rs. 5000 to 8000. However now with global brands moving into the country this definition is also changing with price-points starting from Rs.15000 to as high as a few lakhs!

Not only are the price points changing but even definition of the segment are. Hitherto, cycles were simplistically segmented into gents, ladies, kids and high end. But now the lifestyle bikes are being segmented in line with the global trend that is based on their usage. There are Road bikes, Mountain bikes, Tourers, Hybrids, BMX’ to name a few. Virtually all the big names are present in the country like Giant, Trek, Merida, and Canondale etc.

The demand for these cycles at this stage is very limited but is set to grow at a frenetic pace in future. While the mass-market segment is experiencing a sluggish growth of between 4-6% annually the premium & lifestyle segment is growing at a CAGR of over 30%. The market size for the lifestyle cycles is estimated at not more than 0.25 million units annually but its only time that this segment will form an important part of the industry

Concrete Evidence ! The cement industry...

2009-10-27T00:24:00.013+05:30

Indian cement industry comprises 130 large cement plants and 365 mini-cement plants. The total installed capacity in the country is estimated at 240 million tons per annum making India the second largest cement producer in the world after china......

It is estimated that there is 75% capacity utilization in this industry which means the annual industry volume is 180 MT per year. The industry is growing at 8% CAGR every year.
The sale price per bag of cement ( 1 Bag = 50 KG) is Rs.250 which makes the total industry size at today prices a whopping Rs. 90,000 Crores or USD 18 Billion! The top four companies, ACC, Ambuja Cement, Grasim and UltraTech (L&T) account for nearly 40% of this industry.
In terms of regional distribution, North, South, West, East & Central account for approximately 20%, 30%, 20%, 15% & 15% share of consumption respectively with the southern and northern region showing maximum growth in recent times. The housing sector accounts for nearly 50% of this consumption.
Commonly there are three types of cements. The Ordinary Portland Cement (OPC) that accounts for 70% of the total production and then there are the blended types like the Portland Pozzolana Cement (PPC) and the Portland Slag Cement (PSC).
Incidentally, The history of Portland Cement dates back to the time when it was found that by burning limestone containing clay and silica, a cementing agent was produced which hardened under water and after hardening was not soluble in water. This end product somewhat resembled the commonly available Portland stone in colour and character, hence it was named Portland Cement.
Limestone, Coal and Transportation costs are the major cost components in the manufacturing of cement.
For those who are interested - Each cement bag contains 50 Kg of cement and is transported in a railway rake where each each wagon accommodates 1040 bags of cement. which means throughout the year the cement industry requires 34,62,000 such wagons!!!

Food Grain Cultivation in India

2009-09-14T21:59:00.006+05:30

Food grain is defined as the starchy grain of cereal grasses, which are used for food. The most common food grains of India are Rice, Wheat, Coarse Cereal (which include maize or makka, sorghum, barley, ragi & other small millet's) and pulses......

The total food grain production in India has gone up from 50 million tonnes on 1950 to 175 million tonnes in 1990 to around 230 million tonnes in 2008

Today India produces 95 millions tonnes of rice 70 million of wheat 50 million tonnes of coarse grains (that include 15MT of maize) and approximately 15 million tonnes of pulses. The major reason of increase in production was the green revolution a term used for the combined strategy of high yield crops, irrigation and fertilizers. The father of the Indian green revolution is considered to be Norman Borlaug the American agronomist.

Correspondingly India’s population has grown from 350 million to 830 million to 1.1 billion in 1950,1990 and 2008 respectively. Which means per capita availability of food grain has declined in the last two decades bringing it to 206 Kg’s per year or approximately 500 grams a day!

Quench that summer thirst....... The soft drink, fruit juice & mineral water market in India

2009-03-10T20:57:00.014+05:30

Carbonated drinks, Juices, Mineral Water and Energy drinks market in the country is estimated at Rs. 6000 crores, 5000 crores and 1500 crores and 450 Crores respectively.In spite of the global brands like Pepsi & Coke have ploughed the Indian market for a decade plus, their mainline products i.e. carbonated drinks are barely showing a 6-7% year on year growth. On the other hand the other products in this segment are growing at over 30% annually. Energy drinks incidentally are a recent entry and the leading brand is Red Bull......

Interestingly, in India the global majors have had to retract on their global strategies and create specific India centric plans. Hot summers have necessitated thirst quenchers since ages. There are common options like Jaljeera, Butter Milk, Nimbu Paani and Coconut water which all of us have been drinking since we were children. Perhaps this is the reason why non-carbonated drinks have shown a higher growth and large global majors are busy repositioning themselves as health drink majors rather than being called exclusive black fizz bottlers

The emotional and rational appeal: The Cola (or the carbonated drink) category has very honestly a weak rational appeal and has to be sold almost entirely on a emotional platform. Frankly water, some color and some secret formula can have only limited rational appeal. The only two rational points are the bottle size (volume) and price. Therefore all cola majors are in an eternal quest to find the most ideal balance between these two rational points. And hence the many sizes and price points!

Have a BLAST!! …The Civil / Industrial Explosives industry

2009-02-06T00:33:00.012+05:30

Giving you a flavor of a different industry this time. Explosives used for non-military purposes are called civil explosives. Did you ever imagine the over riding presence of this industry in our modern lives? Think about it, electricity from thermal energy, cement used in construction, stones for building our homes, roads we drive on, tunnels we pass through, gold in ornaments, silica in computers, minerals in the toothpaste… How does one gain access to all this raw material?....... Civil Explosives free up the vast resources of the earth and make it easy for mining and make it available for improving our quality of life!!!Commonly used for mining, quarrying and tunneling, it is estimated that the annual market in India is approximately Rs. 2250 Crores which is around 5% of the global civil explosive consumption and is growing at a CAGR of 20%. This translates to approximately 0.6 Million Metric tons of different kinds of explosives to loosen and shake the earth in India.

Though the history of Civil Explosives for blasting can be can be traced back to the black powder and gunpowder days of 1600's, the modern civil explosive owe their existence to Alfred Nobel inventing dynamite in 1866. Though unlike dynamite & nitro glycerin explosives, today's explosives are based ammonium nitrate based formulations in liquid or emulsified form.

In India, the mining sector accounts for 80% demand for civil explosive which in turn is dominated by coal mining and the balance 20% is for infrastructure projects like roads, hydro engineering, irrigation etc. Packaged explosives account for 30% share in the industry where as bulk or site mixed slurry explosive along with ammonium nitrate fuel oil (AnFO) based explosives dominate the rest of the market and are also the high growth segments. Logistics and availability of ammonium nitrate are the major concerns for growth of this industry.

As the industry is tightly regulated most of the industry is in the organized sector with ICI India, Gulf Oil, Indian Oil Corporation and Solar explosives are the leading players.

MICRO EXPLOSIVES: while there is pressure to look at innovative ways to market civil explosives such as offering blasting services etc. In my view the industry should look at specialized usages and invest in R&D for micro explosives for industries like Aerospace, Space Technology, Bio Engineering and Healthcare industries etc. Imagine a casule of medicine expldoing just at the right spot inside your body..!!!! or a Lunar Probe simulating blasts on the moon surface..!!!

Candy BAZAAR: The sugar confectionary industry

2009-02-05T03:10:00.010+05:30

Every child's dream.This category includes all the non-chocolate candies such as Bubble Gums, Chewing Gums, Lozenges, Hard Boiled Candies, Digestive Candies, Éclairs etc......

The estimated annual market for this category is around Rs. 3500 Crores with the organized sector accounting for almost 70% of this market i.e. approximately 2500 Crores. The market growth is pegged at a CAGR of 7% for the next few years with the organized sector growing at a slightly higher pace.

Close to 50% of this category is accounted for by the Hard Boiled Candies (30%) and Cough Lozenges (20%). Interestingly cough lozenges are sold more because of surrogate use. By smokers to suppress breath odor. I am certain that this category is closely linked to the tobacco industry (which I shall analyze separately one day). This may perhaps also be the reason why this category is growing compared to the Hard-boiled candies which are declining. I also feel that the apparent decline of Hard Boiled candies is not actually a decline but a phenomenon of a base category getting split into specialized categories such as gum's and digestive candies.

Perfetti India sales close to R. 700 Crores accounts for 30% of the organized market with some of the most visible brands such as alpenleibe, center fresh etc. In my view the primary reason for the success of this company is, besides its iconic advertising, is its fantastic sales and distribution model and the terms of trade. ITC of course has also become a major player because of its extensive reach of cigarettes.

A little WORD HISTORY: Did you know that the word “Candy” has its roots in the Arabic word “Quandi” which means a Lump Of Sugar which it self traces its roots to the Sanskrit word “Sharkar Kandi” i.e. sweet potato!!! So both the English words “Sugar” & “Candy” have followed the same path from Sanskrit to Arabic to English!!!!!!!!!!

Hello !! All about the Telecom indsutry

2008-09-03T22:45:00.005+05:30

India has approximately 310 Million telephone subscribers which means a teledensity of 28%. Rural teledensity is only 10% whereas urban is estimated at 50%

This stupendous growth is primarily because of mobile telephony. The total number of mobile subscribers in the country is 270 million. At a CAGR of 21% the total number of subscribers by 2012 is estimated at 750 million......

Interestingly the non-mobile or the wired telephone subscribers are a mere 40 million and this number is more or less constant over the last few years

Airtel accounts for approx. 75 million mobile subscribers followed by Vodafone and Reliance at 55 million each and BSNL at 45 million. India adds around 9 million mobile subscribers every month!!

Mobile telecom generates annual revenue of Rs. 75,000 crores (approx USD 18 Billion). This number is inclusive of Rs.8000 Crores revenue from SMS and Value Added Services. This revenue is despite the fact that India has the lowest talk time rate in the world at 0.80 paisa a minute.
Interestingly, 90% of the mobile connections in the country are prepaid subscribers and only 10% are postpaid

A little history

Like everywhere in the world the predecessor of the modern Indian telecom was the telegraph. The first line was across the Hoogly in 1850. But 1882 was the year in the history of Telecom in India. On this day Telephone Exchanges in Calcutta, Madras and Bombay were declared open. Calcutta "Central Exchange" had 93 subscribers in the first 6 months!

Fridge: The most used appliance in your house!

2008-07-19T20:33:00.008+05:30

Lets look at how many of these are sold every year in India..

Approximately 4.2 million units of domestic refrigerators are sold in India and the market is worth Rs. 4000 Crores...... Refrigerators are a subset of the consumer durables industry.

The two segments (or types) of domestic refrigerators are, the older “Direct Cool” refrigerators that require manual defrosting and the newer “Frost-Free” refrigerators. The former account for 70% of the volume but are growing @ of 3% while the frost free segment is a mere 30% but is growing at 50% yearly.

LG has the leading market share of 40% in the frost-free segment followed by Samsung whereas Whirlpool has market lead in the direct cool segment with 30%. There is also a super premium segment where one gets a TV, Internet, MP3 and other gizmos attached to a fridge, but that segment is small.

Environmental impact-

Refrigeration means removing heat from a space by sudden compression & expansion of gases, which result in cooling. The gases for cooling & insulation were traditionally methyl chloride & sulphur dioxide, which were toxic. Later Freon was used which releases chlorofluorocarbons (CFC) the chlorine content of which depletes ozone. Currently gases like R22 & R407c are used but research is still on for the greenest refrigerant.

So it is ironic that while the most used appliance in the modern household saves Trillions for human kind through food preservation today, will have an unknown impact in future…at least that’s the way things stand now!!

How many toothpastes and toothbrushes are sold in India?

2008-07-14T15:58:00.009+05:30

Oral care industry is worth Rs. 4,200 Crores annually & comprises of:

Toothpastes: 60 %: Rs. 2,520 Crores
Tooth powder: 23%: Rs 960 Crores
Toothbrushes: 17%: Rs.715 Crores

It is estimated that approximately 100,000 tonnes of toothpaste is manufactured every year and the average per capita consumption is around 100 grams. So if every toothpaste is a 100-gram tube, a Billion toothpastes are sold every year for Rs. 25 each!!! (Of course toothpastes are sold in sizes 50, 100, 150 & 200 grams besides sachets...ask if you want the exact number). Market is egmented into whites 50%, gels 25% & herbal etc. 25%

It is estimated that 700 Million toothbrushes are sold every year. So if the market size is Rs. 700 Crores, the average price of each brush is approx. Rs. 10 each. The segmentation is purely on the basis of price points starting from regular to premium with power brushes acounting for less than 1% sale.

By the way, only 50% of the Indian population is known to use modern oral care products and only 15% brush of their brush there teeth twice a day…

HLL and Colgate account of 70% of this market in the country

Ancient Trivia: Before the advent of the nylon bristle, our forefathers used to rely on nature. While the Indians were known to use Neem tree twigs (Datoon) the Chinese preferred the tough hair off the neck of a Siberian Boar!!!

Indian Automobile Industry

2008-07-11T08:39:00.010+05:30

The Indian love affair with automobiles is legendary. The Maharajas & their car collections are of significant repute even today.

The Morris 10 was the first car manufactured in India in mid 1940’ by HM. Yes and they still manufacture the Amby!!.................

Annual Sales Volumes
Passenger vehicles (Jeeps and Cars): 1.5 Million units
2 Wheelers (Scooters, Mobikes & Mopeds): 8 Million units
Commercial vehicles: 0.5 Million units

Electric cars: less than 1000 units
Electric two wheelers: 25000
(Oil barrel at 150 USD will impact this one!!)

Only 25,000 cars were sold in 1960....

Major product segments in cars:
Mini/A1 (800, Nano), Compact/A2 (Santro, Zen), Mid Sized/A3 (Ford, Accent), Executive/A4 (City), Premium/A5 (Skoda, Camry), Luxury/A6 (Merc / BMW)

Maruti sells around 0.5 million cars in a year and Tata Motors another 0.2 Million units. Hero Honda sells 3.5 Million 2 wheelers in a year and Bajaj another 2.5 Mill

Comparison:

8 millions cars & 2 Million two wheelers are sold in US every year

Toyota & General Motors are vying for auto supremacy and sell close to 8.5 Million cars every year, worldwide

At least 70 Million units of SOME type of automobile are sold every year

Industry Statistics : Serious n Funny

2008-07-09T14:12:00.003+05:30

Alright, here we go..Did you know?
Annual sales of cars in India in 2008? Answer: 1 Million
Annual sales of 2 Wheelers in India? Answer: 5 Million
Total number of shops in India? Answer: 15 Million
Number of cell phones in the country? Answer: 180 Million

EASY...? C'mon these are famous numbers

Now try these:

Number of UPS inverters in the country?
Number of Padlocks sold in the country?
Number of Notebooks sold?

Bewildered aren't you?

So lets get some interesting industry stats in place...

Contributions are welcome