Future of Asian Enterprise: India

2025?

Indian firms are rapidly globalizing

Direction of India's Outward FDI (Cleared Proposals),

April-September, 2008

Others25%

UK6%

USA21%

Netherlands11%

Singapore20%

Mauritius11%

UAE6%

Direction of India's Outward FDIApril-September, 2009

Others27%

UK2%

USA11%

Netherlands8%

Singapore30%

Mauritius15%

UAE7%

via Financial Times, March 9, 2010.

Examples of M&AIndian Outbound M&A

Outbound FDI

KuwaitTelecoms(US$ 10.7

billion)

SingaporeHealthcare(US$ 683million)

Source: RBI Bulletin, January 2010

GDP growth in Central provinces [Chongqing, Sichuan, etc] outpace coastal regions [PRD, YRD]

GDP growth in Central provinces [Chongqing, Sichuan, etc] outpace coastal regions [PRD, YRD]

Rapid GDP growth in Tier I – II provinces [Gujarat, Karnataka, Maharashtra, New Delhi]

Rapid GDP growth in Tier I – II provinces [Gujarat, Karnataka, Maharashtra, New Delhi]

46% Urban46% Urban

54% Rural54% Rural

28% Urban28% Urban

72% Rural72% Rural

INDIA = CHINA – 12 Years

Stumbling Tiger, Leaping Dragon?

INDIA

Rural areas will drive innovation in India

CHINA

INDIA

Why China is 12 years ahead

India 2025: 35% Urban

Good Infrastructure

Back Office Copycats

Poor Infrastructure

BreakthroughInnovation

Source: Global Competitive Index

Will India’s poor infrastructure impede its growth?

Growth Trajectories: China and India

Jugaad Innovation

JUGAAD INNOVATION: Constraint-based innovation that relies on ingenuity in terms of product, process, and people to serve customers at the base of the pyramid. It is “First World goods and services at Third World prices.”

Price Profit (Frills) Design

Innovation Flows

DEVELOPEDEMERGING

Challenge and change the price performance equations. If we can satisfy 500 million (poor) customers in India by producing world-class quality, then that can become the biggest export opportunity in the world.

- CK Prahalad, author of ‘The Fortune at the Bottom of the Pyramid.’

Innovation: Business Strategy

DEVELOPED EMERGING

Arogya Parivar: Business Strategies for the BoP

The traditional four P’s of marketing (Product, Price, Place and Promotion) have been replaced with the 4A’s (Affordability,

Awareness, Availability, Acceptance).

Innovation Flows: Products

DEVELOPED EMERGINGEMERGING

From Pepsi to PepsiCo: Learning from India to export overseasIndia as the world’s post-recessionary consumer lab

Business Today

Initial entry conditionsturned into strategic advantage

Indigenous products helped PepsiCo diversify out of soft drinks.

The technology behind Nimbooz, a lemon-flavoreddrink, was used to launcha hibiscus drink in Egypt.

PepsiCo uses India as abenchmark for low-cost-high-quality products, reinforcing India’s status as a lab to determinepost-recession demand.

Innovation Flows: Services

DEVELOPED EMERGING

First World Surgeries At Third World Prices

Source: Wall Street Journal

DIY and Modular Vehicles

Portable HygieneClean Technology

Mobile Commerce

How can Singapore capitalize on the disruptive innovation from India?

In what ways will disruptive innovation from India affect Singapore?

2025: Indian Enterprise Landscape