The leather industry in India holds a very prominent place in the Indian economy. The leather and leather products industry is one of the oldest manufacturing industries in India. The Indian leather industry provides employment to about 2.5 million people in the country and has an annual turnover of approximately US$ 5,000,000.

The industry has a massive potential for providing more employment, growth, and exports. Recently, the exports of leather and leather products have gained massive momentum. The exports of Indian leather goods have registered phenomenal growth. This is mainly because great emphasis has been placed on the planned development of the leather industry and at the optimal utilization of available raw materials.

Over the years the leather industry in India has undergone drastic change from being a mere exporter of raw materials in the early 60’s and 70’s to now becoming an exporter of finished, value-added leather products. The main reason behind the transformation is the several policy initiatives taken by the government of India. The proactive government initiatives have yielded quick and improved results. Thanks to the government efforts today, the Indian leather industry has attained a prominent place in the Indian export and has made the industry one of the top 7 industries that earns foreign exchange for the country.

Since India adopted the globalization and liberalized economic policies in 1991, the leather industry has flourished consistently in several ways and has contributed heavily to the Indian exchequer. Though the industry has developed, it still has great potential for more growth and investments. Investing in Indian leather industry is particularly advantageous because the industry is poised to grow further and achieve a major share in the global trading market.

The government of India in its Foreign Trade Policy for 20002009 has identified the leather sector as a focus sector in view of its immense potential for export growth and generation of employment generation prospects.

Investment opportunities in the leather industry lie in different segments related to the industry, which include tanning and finishing of leather products, manufacturing of leather garments, manufacturing of leather footwear and footwear parts, and manufacturing of leather goods, such as harness and saddlery amongst a host of other opportunities.

Amongst all the industries mentioned above the footwear industry in particular holds greater potential for investments in India. India produces approximately 700 million pairs of leather footwear every year and accounts for an 18% share of the total Indian leather export.

After footwear manufacturing of leather goods promise great investment opportunity. Manufacturing of leather products, such as wallets, travel wares, belts, and handbags offer great returns on investment.

India is one of the best destinations in the world for investing in the leather industry because India is endowed with abundant raw materials required for the industry to grow. India has a huge population of cattle. India accounts for 21% of the worlds cattle and buffalo and 11% of the worlds goat and sheep population. Apart from the easy availability of raw materials, investors are able to enjoy an easy and abundant supply of skilled manpower, world-class technology, competent and favorable environmental standards, and the devoted support of allied industries.

Several leading international leather goods manufacturing brand names, such as Hugo Boss, Tommy Hilfiger, Versace, Guess, and DKNY, have invested in India and are engaged in sourcing leather goods from India.

Despite the lull in the real estate sector and the subsequent reduced demand, the asbestos cement sheet industry has managed to record a healthy growth rate of 10-12% per annum.

The slowdown in construction activity has failed to dampen the spirits of SMEs that constitute the bulk of the sector as they continued to receive a steady flow of business.

Experts believe that the high growth rates clocked by the sector have been mainly possible due to the sustained demand in the rural sector, which accounts for over 50% of the market for the asbestos industry.

Succeeding despite odds

Though last year saw a spurt in campaigns against the use of asbestos products in India, SMEs in the industry continued to witness a surge in the demand for their products. Small vendors providing roofing material to the rural population remained relatively unfazed by the adverse effects of the downturn and the campaigns.

Even though the construction sector has taken a hit due to the slowdown, the demand for asbestos products has not been affected. We have continued to see good margins and increased offtake despite worsening economic conditions, said T Sohangpurwala, proprietor of Calcutta Asbestos & Belting Company, a small-sized asbestos supplying firm in Kolkata.

The asbestos industry in India is projected to see a steady demand in the next few years as well. A new report from the Asbestos Cement Products Manufacturers Association (ACPMA), the chief organisation aimed at promoting chrysotile asbestos cement in India, predicts good times ahead for the SMEs in the sector.

Despite campaigns seeking a ban on the use of chrysotile asbestos, the demand for asbestos cement will remain steady as very few products can compete with it in terms of price and durability when it comes toroofing houses, said A Modi, Chairman of India Asbestos Manufacturing Company, a small-sized asbestos cement manufacturing unit in Jaipur. Asbestos is one of the best roofing options in rural India as it costs less than a third of the equivalent quantity of steel sheeting.

Although the outlook of the asbestos cement sheet industry looks positive, small vendors need to exercise prudence at present. They must also ensure that their manufacturing processes are clean to guarantee the safety of their Products.

Natural mineral water
According to American and European Regional Codex Standard, natural mineral water:
is obtained directly from natural or drilled sources from underground water – bearing strata.
is collected under conditions which guarantee the original natural bacteriological purity.
is bottled at the point of emergence of the source with

particular hygienic precautions is not subjected to any chemical treatment.

Indian bottled Water Industry

The bottled water industry in India is estimated at about Rs 1,000 crore and is growing at 40 per cent. “By 2010, it will reach Rs 4,000 – 5,000 crore with 33 per cent market for natural mineral water.

The formal bottled water business in India can be divided broadly into three segments in terms of cost: premium natural mineral water, natural mineral water and packaged drinking water.

It is estimated that the global consumption of bottled water is nearing 200 billion litres – sufficient to satisfy the daily drinking water need of one-fourth of the Indian population or about 4.5 per cent of the global population at the fourth World Water Forum held in Mexico City in March 2006.

In India, the per capita bottled water consumption is still quite low – less than five litres a year as compared to the global average of 24 litres. However, the total annual bottled water consumption has risen rapidly in recent times – it has tripled between 1999 and 2004 – from about 1.5 billion litres to five billion litres. These are boom times for the Indian bottled water industry – more so because the economics are sound, the bottom line is fat and the Indian government hardly cares for what happens to the nation’s water resources. Since 1991-

1992 it has not looked back, and the demand in 2004-05 was a staggering 82 million cases.

Mineral Water Market in India

For example, the per capita consumption of mineral water in India is a mere 0.5-liter compared to 111 liter in Europe and 45-liter in USA.

But over the last ten years, it has witnessed tremendous growth. The change is very much evident. Once a product found mainly at railways stations, mineral water today occupies a place on the shelf in most superstores, grocers and even paanwalas. From a mere 60 towns in the year 1997, it is predicted that mineral water is today available in more than 1000 towns and cities across India. With a compounded annual growth rate of close to 30% over the last decade, the mineral water market has witnessed a large growth in terms of volumes.

The market is highly competitive with the entry of MNCs like Pepsico and Coke. There are a lot of brands available in the market, each with its own proclaimed differentiation.

2.2 Player in the market

In natural mineral water there are very few company like Himalayan, Aava, Evian is playing in the market. 50% of the market is captured by Himalayan.
While a thousand bottled water producers, the Indian bottled water industry is big by even international standards. There are more than 200 brands, nearly 80 per cent of which are local.
Most of the small-scale producers sell non-branded products and serve small markets.
Despite the large number of small producers, this industry is dominated by the big players – Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on.

Consumption of bottled water in India is linked to the level of prosperity in the different regions. The western region accounts for 40 per cent of the market and the eastern region just 10. However, the bottling plants are concentrated in the southern region – of the approximately 1,200 bottling water plants in India, 600 are in Tamil Nadu. This is a major problem because southern India, especially Tamil Nadu, is wate starved.

Mineral water business is restricted only to big hotels & Restaurants. This field has lot of scope because of unawareness in the market and people are becoming health conscious.

Cement is one of the main industries that plays a pivotal role in the growth and expansion of a nation. The cement industry is one of the main beneficiaries of the infrastructure boom in the country. The Indian cement industry is huge, and it has great production capacity. Currently, the total capacity of cement industry is about 165 million tonnes, which is the second largest in the world.

Cement is one of the vital constituents that is required for every construction purpose, such as industrial, housing, and also for construction of infrastructures, such as roads, ports, bridges, power plants, and so on. Thus, the cement industry is a significant contributor to the revenue collection of the government.

In India, the cement industry in the initial stages grew very slowly and the supply struggled to meet the demands. However, the scenario changed drastically after the liberalization period. The cement industry began to grow and since then the supply of cement has always managed to keep pace with its demand.

Today, the cement industry in India is one of the most advanced and pioneering sectors in the country, and the cement industry has a huge potential for growth and attracting new investments. The cement industry in India uses the most modern and world-class technology. Also, because India has a high quantity and quality of limestone deposits throughout the country, the cement industry promises huge potential for growth.

The government of India has set ambitious plans to increase the production of cement in the country, and to attain the target the government has made huge investments in the sector. The Department of Industrial Policy and Promotion, which falls under the central Ministry of Commerce and Industry, is the agency that is responsible for the development of the cement industry in the country. The agency is actively involved in keeping track of the performance of cement companies in the country and provides assistance and suitable incentives when required by the company. The department is also involved in framing and administering the industrial policy for foreign direct investments in the sector. Apart from formulating policies, the department also promotes the industry to attract new foreign investments in the sector.

The Department of Industrial policy and promotion plays an active role in promoting foreign investment in India in the cement industry by providing useful information to the investors about the investment climate and opportunities in India. The department also provides advice to prospective investors on various policies and investment procedures.

In order to promote investment in the sector, this department has greatly emphasized the development of good transportation facilities to ensure smooth transportation of bulk cement. It also aims to support the investors by providing them with R&D facilities and technological assistance.

The cement industry in India has been attracting several top-notch cement companies worldwide, which reflects the fact that this industry holds huge potential for investment. Also, due to the boom in the housing sector world-wide and the increased activity of the development of infrastructure, the demand for cement is set to increase globally. Thus, the investors having nothing to lose and are all set to benefit from investing in Indias cement industry.

A lot of water has flowed under the bridge from the time that mobiles were unheard of in India to the present where they have become almost ubiquitous. Beginning from those days, Indian subscribers paid around Rs. 16.40 for a mobile to mobile call and around Rs 32.80 for a mobile to a landline call. Today, as per recent statistics, customers pay far lesser for calls and occasional text messages that add up to around Rs 300 a month and upwards.

Now that mobiles have moved into the affordable bracket, there is a great demand for additional mobile services such as mobiles, email, stock market quotes, and astrology services, just to name a few.

A recent survey pointed to the fact that for most customers, mobile phones have become an extension of their personality. Many go a step ahead to say that mobile phones define their individuality as well.

In such a scenario, it is worthwhile to compare the growth of the mobile phone industry vis-a-vis the computer industry in India. According to recent statistics, there are nearly 300 million mobile phone subscribers as compared to just around 30 million PCs in the country. Additionally, around 8 million subscribers are signing up every month for mobile services alone.

For most individuals, mobile phones are becoming a single point of contact for the world surrounding them covering a wide range of utilities like emailing, entertainment, and banking.

More and more people are looking out for more than just talk time on their mobiles. All this is generating a lot of enthusiasm for mobile companies. A number of serious players in this industry are looking at a range of such value added services, which have the capability to boost their bottom line.

Not only are Indians enthralled, but they started spending a considerable amount on these services too. This figure amounted to around $250 million last year. This figure is expected to reach $1.7 billion by the year 2010. This is a boon in disguise for Indian cellular operators who are seriously looking forward to enhance their revenues. Currently, nearly 80% of the revenues come from services like ring tones and SMS. This makes India the second largest mobile market on earth.

The young mobile savvy generation currently feels less privileged in nearly every sector. And thats precisely what is fuelling the growth in mobile services across the country. As the market expands but fulfilling the needs of mobile users by providing them attractive services, mobile phones are becoming a new vehicle for reaching out to the mobile generation.

Mobile content providers also visualise a big jump in their services. These include many global companies such as Google, Yahoo and MSN, which have signed up with many Indian operators like Airtel, Bharti, Vodafone, Tata, and Reliance Communications. Together, they offer a host of services based on the local and regional markets in their area of operation.

The Indian mobile scenario seems to be all set for the next stage expansion and consolidation, but there are a few complications as well. Not all users can afford costlier services beyond messaging and talk time. What is expected is increase in the already growing user base so such services can become affordable to one and all in the long run.