NEPIC Members DaySedgefield 12th May 2011

Presentation by

Phil Hollowood

Consultant & NEPIC’s Virtual Export Manager

Trade SupportBuilding Business With India

Virtual Export Manager

• Programme supported by UKTI to promote export business to India

• Been doing business with India for over 20 years• Founding director of James Robinson India Pvt

Ltd a UK-India JV company• Experience; setting up JV’s, due diligence,

procurement, technical transfer, business operation

• Consultancy with NEPIC but also supported both multi-nationals and Indian companies

India Facts & Figures

• Huge country 3.3 m sq km• Population 1.2 billion• Growing 20 million/year, China

static• Urban population 350 million and

forecast to double in 25 yrs• Urbanisation growth in 10 yrs

equivalent to population of Germany

• Young, 33% (400 million) under 14 yrs only 18% for China

• 10th largest economy, 4th by PPP

Chemicals Facts & Figures• Indian chemical industry

$83 billion about same size as UK

• Growing 10%-15% per year

• Centred on Gujarat which accounts for >50%

Base 53%

Pharma 24%

Speciality 18%

Agrochem 2%

Biotech 3%

India: Huge Export PotentialOpportunity & Threat

• Economy approaching size of the UK - but growing consistently at 10%

• GDP absolute growth 3 times that of UK @ $150b/yr• Historic and continued move towards urbanisation -

equivalent on the demand side to a country the size of Germany over next 10 years

• Middle classes and wealth owning community as large as EC >300 million

• Demographics positive; young population will move to consumers through next decade

• Growth in education and health• Industrialisation and infrastructure development

(PCPIR’s, Mumbai-Delhi corridor etc). Huge investments

UK Advantage

• Long historical association• Language and legal commonality• Strong political & social connectivity• Large UK-Indian community• UK seen as ideal centre for access to EU• Large investors in UK and region: Tata, Corus,

Essar, Shasun, Piramal etc• David Cameron’s UK-India “partner of choice”

message• Significant cooperative projects; BP-Reliance,

Vodafone-Hutch, Ineos-ONGC

Indian Issues

• Knowing who you are dealing with is vital• Innovation is within the Indian psyche• Direct duplication is suboptimal• “It’ll be alright on the night!” philosophy, viz

Commonwealth games• You must visit regularly and show persistence• India is very fast and very slow; know where you are• Proud and emotional people• Beware, not everything is as it seems• Corruption a big issue; you only have to read the Indian

press

Sector Opportunities & Drivers

• General economic demand growth• Wealth owning consumer product growth• Investment and infrastructure• Educational support and services• Pharma and healthcare• Oil, gas and energy• Green technologies and recycling• Contract research and development• Retail; Tesco, M&S, shopping mall development

• Good understanding of Indian business• Formal & informal links with many industry

associations– Indian Chemical Council– Vapi Industry Association and Centre of

Excellence– Gujarat Chemical Association– PlastIndia Foundation– Indian Speciality Chemical Manufacturers

Association• Large network of industrial contacts

NEPIC Advantage