Legal Services Marketing US

Legal Services Market ‐ India

June 2012

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SAMPLE

Executive Summary

Market Legal services market is slated to grow at a rate of x1% per annum

The sector can be segregated into x2, x3 and x4 services

Legal services can be before court or any other tribunal system of law

Drivers & Challenges

Competition

Drivers–Demand from corporate entities–Legal services related to products–Legal services for accidents–Lifestyle influences create legal services opportunities

Challenges–Shortage of lawyers

–Slow judicial system

Major Players

Amarchand & Mangaldas AZB & Partners Fox Mandal

Luthra & Luthra CPA Global Ashurst

Entry of foreign law firms in India Legal service goes online Law graduates opting for corporate careerConsistent rise in salaries of lawyers Legal process outsourcing emerging as a viable opportunity

Trends

LEGAL SERVICES MARKET IN INDIA 2012.PPT

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•Introduction

•Market Overview

•Business Model

•Drivers & Challenges

•Government Participation

•Trends

•Competition

•Strategic Recommendations

•Appendix


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SAMPLE Even during sub‐prime crisis, Indian legal services sector remain sanguine about growth reflecting its potential

Legal Services Market – Overview

Legal Services Market – Growth

•The Indian legal services sector has weathered changes and emerged as a highly competitive sector•To practice a law in India an advocate needs an LLB from an Indian university, followed by one year practical training and enrolment with a State Bar Council

•While the sector has spelled enough opportunities for the domestic law firms, interest of foreign firms in the Indian market implies the latent growth potential within the sector

•While globalization of legal services is a latest term linked with this sector, several foreign firms have already treaded the lines of forming associations with Indian firms

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SAMPLE

• X7 • X8• X9

Legal advisory services capitalizes on the requirement to adhere to laws in the country

X5 Services


X6 services pertain to legal services in different fields of law

A

B

C

• X10• X11• X12

• X13• X14• X15

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Drivers & Challenges – Summary

Drivers

Demand from corporate entities

Legal services related to products

Legal services for accidents

Lifestyle influences create legal services opportunities

Challenges

Shortage of lawyers

Slow judicial system


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SAMPLE … road and rail accidents

Road Accidents

• The Act, 1885 entitle legal heirs of a deceased accident victim to claim compensation from the person who committed negligence

• The Motor Vehicle Act entails a compulsory third party insurance and procedure of adjudication to ensure relief to victims of accident cases

Railway Accidents

• The passengers who meet with an accident as defined under Section 124 of The railways Act 1989 or even become victim of untoward incidents as defined under Section 123 (C) of The Railways Act 1989 are entitled to receive compensation for loss of life or injuries incurred due to their involvement in a railway accident

Road Accidents – Growth Rail Accidents – Growth


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Registered Deaths

Injured

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SAMPLE

As people look at registering marriages and separation legally, services in the said field gets a fillip

Lifestyle influences create legal services opportunities Impact•Present day social customs have also been characterized by legal rules and regulations•While earlier, m1 were considered to be more a product of social rituals wherein court of law did not come into play

•Today, m2 are legitimized at the court of law that registers the m3 as a legal sanctity•Lifestyle influences have shaped people’s thought process wherein people part ways through m4 either as a result of mutual consent or bitter alimony claims

• In both the matters, legal services are of prime importance as it is through court of law that these issues can be resolved, thus providing a fillip to the legal services sector•Even m5 and m6 require authorization of responsibilities that is rendered by court seeking legal services’ help

Divorce – Rate in India Wedding Industry – Growth in India


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SAMPLE … regulates the sector

• The Bar Council of India (BCI) and all other state bar councils have decided to protest against the proposed Higher Education & Research Bill, 2011

• The new bill intends to put an end to the prerogative of the BCI to inspect educational institutions imparting law education across the country

• BCI and other representatives have termed it as an infringement of Sections 6 & 7 of Advocates Act • In addition to the Higher Education & Research Bill, the BCI and state bars have also been opposing the Foreign Educational Institutions (Regulation of Entry and Operations) Bill 2010, the Educational Tribunals Bill 2012 and the National Law Schools Bill 2012

• The BCI is planning to introduce Unique Identification Number (UIN) system and UIN is slated to be awarded to the lawyers

• The UIN system would be serving as an useful framework for implementing and tracking continuing legal education across the profession

• It also mentioned that practicing lawyers would be given access to hardware and software resources and would also be trained to use technology in related matters

• Further, a proposal of stipend for the advocates with less than 3 years’ practice along with an insurance scheme for lawyers will also be introduced

Unique Identification Number

Protest by BCI

About o1 mn lawyers across the country are slated to boycott courts on Jul ‐‐and ‐‐ to protest against the Higher Education & Research Bill 2011

Bar Council of India (2/2)


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`

Entry of foreign law firms in India

Legal service goes online

Legal process outsourcing emerging as a viable opportunity

Consistent rise in salaries of lawyers

Law graduates opting for corporate career

Trends – Summary

Key Trends


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SAMPLE Cost efficiency and capacity utilization drive the legal processing sector…

Legal process outsourcing emerging as a viable opportunity (1/2)

•Legal process outsourcing refers to the practice of a law firm or corporation that look at obtaining legal support services from a third party law firm or legal support services company

•When the outsourced entity is based in some other country, it is also called Offshoring

• In‐house law verticals of MNCs outsource a considerable part of work in order to restrict their costs

•LPO has gained in momentum after the recent sub‐prime crisis around the world

• India has been touted as one of the chief centers of outsourcing businesses with a considerable number of lawyers being educated in the UK and US law colleges and universities

Legal Process Outsourcing Employee Strength – Market Size and Growth

Services included in LPO

•T1•T2•T3•T4•T5


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SAMPLE Key People

Products and Services

Company Information Offices and Centres – India

Registered Address

Tel No.

Fax No.

Website

Year of Incorporation

Name Designation

Registered Address

Place

Category Products/Services

Private: Domestic Company – Company 1 (1/3)


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SAMPLE Financial Snapshot Key Ratios

Financial Summary

• Company incurred a net profit of INR ‐mn in FY 2011, as compared to net profit of INR ‐mn in FY 2010

• It reported total Income of INR ‐mn in FY 2011, registering a decrease of a1% over FY 2010

• Earned an operating margin of a2% in FY 2011, an increase of a3 percentage points over FY 2010

• The company reported a debt to equity ratio of ‐ in FY 2011, a increase of a4% over FY 2010

Profit / Loss

Total IncomeTotal IncomeINR mn

0 0

ProfitINR mn

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Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin 7.49 ‐6.73% ‐14.22% ‐20.71% ‐20.53%

Net Margin 6.31 63.20% 56.89% 46.89% 43.61%

Profit Before Tax Margin 9.60 92.51% 82.91% 75.64% 73.96%

Return on Equity 6.66 38.16% 31.50% 35.04% 47.43%

Return on Capital Employed 5.93 ‐5.15% ‐11.08% ‐22.90% 122.33%

Return on Working Capital 1.58 38.49% 36.90% 45.99% 89.99%

Return on Assets 3.65 33.46% 29.81% 30.22% 32.71%

Return on Fixed Assets 105.01 266.85% 161.84% 89.44% 73.59%

Cost RatiosOperating costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Administration costs (% of Sales)

N.A. N.A. N.A. N.A. N.A.

Interest costs (% of Sales) N.A. N.A. N.A. N.A. N.A.

Liquidity RatiosCurrent Ratio 10.16% 3.82 3.47 2.57 1.32

Cash Ratio 114.42% 0.09 0.04 0.13 0.20

Leverage RatiosDebt to Equity Ratio 148.82% 0.14 0.06 0.16 0.45

Debt to Capital Ratio 130.49% 0.12 0.05 0.14 0.31

Interest Coverage Ratio ‐78.66% ‐8.85 ‐4.95 ‐5.68 ‐3.73

Efficiency RatiosFixed Asset Turnover N.A. N.A. N.A. N.A. N.A.

Asset Turnover N.A. N.A. N.A. N.A. N.A.

Current Asset Turnover N.A. N.A. N.A. N.A. N.A.

Working Capital Turnover N.A. N.A. N.A. N.A. N.A.

Capital Employed Turnover N.A. N.A. N.A. N.A. N.A.

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SAMPLE Key Recent Developments

Description News

Overview

• Is India's oldest law firm with offices both in the country as well as overseas

• Besides having foreign presence in l1, l2, l3, l4

• Additionally, it also has representative offices in places including n1, n2, n3, n4

• Boasts of a team of a total of ‐ lawyers with ‐ partners and ‐ para‐legal staff

Services • Provides expertise on fields such as o1, o2, o3, o4, o5

Miscellaneous• o6 have separated with o7 repaying o8 the original stake purchased in the Bombay solicitors firm when they merged in 20‐‐



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Thank you for the attentionThe Legal Services Market – India 2012 report is a part of Netscribes’ Business Services’Industry Series.For more detailed information or customized research requirements please contact:

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