Fast Moving Consumer Goods

India

Indian Scenario
USD 14.8 billion as of October 2012 Projected to reach USD 42-47 billion by the year 2020

India is Spending MORE !

Consumer Spending in India increased to 8153.19 INR Billion in May of 2012 from 7984.93 INR Billion in February of 2012, according to a report released by the Central Statistical Organization, India. Historically, from 2004 until 2012, India Consumer Spending averaged 6470.65 INR Billion reaching an all time high of 8681.36 INR Billion in November of 2011 and a record low of 4469.88 INR Billion in August of 2004. This page includes a chart with historical data for India Consumer Spending.

Rural India is Spending MORE !

Consumer durables have become more affordable to rural households in recent years, due to rising discretionary spending and relatively low levels of price rise in durables. As a result, at least one in every two rural households owned a bicycle, an electric fan and/or a mobile phone in 2009-10. CIRSIL, 2012

India is Confident MORE !

Consumer confidence is the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy. In essence, if consumer confidence is higher, consumers are making more purchases, boosting the economic expansion. On the other hand, if confidence is lower, consumers tend to save more than they spend, prompting the contraction of the economy. A month-to-month diminishing trend in consumer confidence suggests that in the current state of the economy most consumers have a negative outlook on their ability to find and retain good jobs.

Discretionary Spending in rural India

Why invest in Punjab?

Punjab has been primarily an agrarian economy, but it has slowly emerged as a hub for industrial development in secondary and tertiary sectors. It also happens to be one of the richest States in the country. The State has gradually positioned itself as a promising investment destination for domestic and international players.
NSSO survey 2011

Economics
The Gross State Domestic Product (GSDP) for the State in 2011-12 stood at Rs 1,575 billion while it was Rs 968 billion in 2004- 05
Punjab GSDP at Constant Prices (in Billion)
1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 968 1,130 1,026 1,232 1,304 1,391 1,488 1,575

Source: Planning Commission; Punjab State Development Report

Economics
The Per Capita Income for the State at constant prices in 2011-12 stood at Rs 46,688 witnessing a growth of 4.3 percent over previous year. The Per Capita Income of the State is also much higher than the National Per Capita Income of Rs 38,005 As against the 11th Plan target of 5.9 percent, the States economy grew at 7.78 percent in 2010-11. The average growth of primary sector in the duration 2007-12 was 1.71 percent while for secondary sector it was 9.31 percent followed with 8.37 percent for tertiary sector. Overall Punjab witnessed an average growth of 6.87 percent in the duration 2007-12
Source: Annual Plan 2012-13, Department of Planning, Government of Punjab

Demographics
The population density of Punjab is 550 persons per sq km, which is higher than the national average of 382 persons per sq km. Government of India in its Fourth Common Review Mission Report has rated health infrastructure of the State as excellent and has placed Punjab in the number one position. The average radius served per healthcare institution is 2.680 km. Punjab, November 2011,India Brand Equity Foundation The literacy rate of the State has been rising steadily and is 76.7 percent as per the provisional results of Census 2011. The male literacy rate is 81.5 percent and the female literacy rate is 71.3 percent. Source: Planning Commission; Punjab State Development Report

Education Infrastructure
Punjab is home to various leading higher education institutions as: Punjab University at Chandigarh Prominent engineering colleges as National Institute of Technology, Jalandhar, and Thapar Engineering College, Patiala Punjab Agricultural University, Ludhiana, is a world-class institute involved in agricultural research, education and consultancy College of Dairy Science and Technology and College of Fisheries Ludhiana Upcoming projects in the State: 15 new Model Degree colleges to be set-up (where Gross Ennoblement Ratio (GER) is low) IIT Ropar and Indian Institute of Science Education and Research (IISER) at Mohali Punjab Institute of Textile Technology and Research (PITTR) at Ludhiana at a cost of Rs 1 billion Punjab Institute of Food Technology and Research (PIFTER) at Barnala at a cost of Rs 1 billion The State Government has roped in big corporate houses of Max India Limited, Bharti Enterprises, Hero Corporate Service Limited and Punj Llyod Limited for setting up of Indian School of Business in the Knowledge City at Mohali Source: Planning Commission; Punjab State Development Report

Manpower Availability & Quality

The State Government has taken a number of steps to improve the quality of education in the State. Major skill development initiatives taken by the State are: 73 new ITIs and 2,500 Skill Development Centres will be opened by 2017 50,000 candidates per annum to be provided skill development training in one of the 1400 courses by Vocational Training Provider (VTP) A centre named 'Construction Skill Development Centre' in collaboration with L&T has been setup in village Abul Khurana of Lambi Block in Sri Muktsar Sahib district A centre for providing training in the trades of Driving and Auto Motive Skills has been setup in collaboration with Tata Motors in village Mahuaana of Lambi Block in Sri Muktsar Sahib district Establishment of Finishing/Training School at Rayat and Bahra Mohali Campus Establishment of Entrepreneurship Development Centers at PTU Colleges Establishment of Incubation Centre at LPU campus, Jalandhar and Mohali Automotive skill centre Source: Planning Commission; Punjab State Development Report

Power
Power is a vital infrastructure for economic development of the State. The State has a power deficit of 6 percent which is lower than the national power deficit of 8.5 percent during (FY11); whereas per capita consumption of power stands at around 1,527 KWH, which is higher than the national figure of 779 KWh (FY10) During the year 2011-12, 64.3 percent of the total energy sold was consumed by Industrial and agriculture sectors.

Punjab Power Map

Connectivity (Road, Rail & Air)

Punjab is connected to its 4 neighbouring states through 12 national highways and an extensive network of 60,881 km of road network. Punjab is the first Indian State with 100 percent connectivity to the rural areas. Punjab has a total rail length of 2,134 km and has the fourth highest rail density amongst all States and Union Territories in India. Rail network in the State connects the major industrial units in oil refining, cement, fertilizer, thermal power and manufacturing sectors to suppliers and markets. The major airports in Punjab are Amritsar, Chandigarh, Ludhiana and Pathankot. While Amritsar is the international airport, new airports have been proposed at Mohali, Bathinda and Ludhiana.

Source:Economic Survey of Punjab 2010-11

Industrial infrastructure
The key industries of Punjab includes tractors and auto components, agro-based industries, bicycle manufacturing, chemical products, food products, pharmaceuticals, textiles, paper products and light engineering goods.

Large & Medium Scale Industries

No. of working large and medium scale industrial units Growth in production (in percentage) 25% 22.33% 425 420 17.72% 400 400 No. of industrial units 17.14% 15% 380 Growth in percentage 20.04% 20%

Punjab has 425 large and medium scale industries. The large and medium scale industries of the State generate employment for 2,35,000 people and contribute around Rs 82 billion to the total industrial production of Punjab. Economic Survey of Punjab 2010-11

440

373 10%

360

355

5% 340

320 2007-08 2008-09 2009-10 2010-11

0%

Source: Economic Survey of Punjab 2010-11

Small Scale Industries

No. of working small scale industrial units Growth in production (in percentage) 16% 14.57% 168000 167000 12.50% 166000 No. of industrial units 165000 9.51% 164732 growth in percentage 10% 12% 167722 168000 14.98% 14%

Small Scale Industries (SSI) constitutes around 40 percent of the production, 60 percent of the exports and 15 percent of the investment made in Punjab. The SSIs of the State generates 3.9 times the employment generated by the medium and large scale industries.

169000

164000
163000 162000

8%

162559

6%

4% 161000 160000 159000 2007-08 2008-09 2009-10 2010-11 2%

0%

Source: Economic Survey of Punjab 2010-11

Investments through FDI

The cumulative FDI inflows from April 2000 to April 2011 amounted to around Rs. 45 billion in Punjab In the year 2009-10, the outstanding investments in the State was around Rs. 5.5 billion
Irrigation, 2.60% Chemicals, 4.50% Others, 5.40% Services (other than financial), 38.90%

Constructio n, 15.70%

Electricity, 32.90%
Source: www.ibef.org

Industrial Clusters