India’s Demographic Dividend

• India’s total population – 116 Crore (July 2009, est, CIA) (102 Crore – 2001 Census figures)
• 30.8% of India’s population is below 15 years
• 64.3% of India’s population is between 15-64 years
• More than 82% of India’s population resides in rural and semi urban areas
• Literacy Ratio stands at 61% at an all time high
• Only 22% of population is below poverty line (2006 est)
• Unemployment rate stands at 7.8% at all time low
• Birth rate is at 21.46% as against Death rate of 6.4%

Conclusion: India’s is getting younger by the day.

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Land of Opportunities

• A Young Population creates a different set of opportunities for Businesses, revolving around the following:
  • Education and Training
  • Telecommunications and Information Technology
  • Media and Entertainment
  • Food and Beverages
  • Branded Merchandize

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Industry Snapshots

The present project is a winning combination of the following industry sectors:

• Retail [includes Entertainment and Food and Beverages (F&B) Retail]
• Vocational Education and Training
• Media & Entertainment

The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010. It is the largest industry in India with an employment of around 8%.

• The world’s largest unexploited retail market, recognised as the leading destination for retail investment in the 2006 Global Retail Development Index. With 720 million Indians to join consuming age by 2010 it presently is the fifth largest retail destination globally and has been ranked as the most attractive emerging market for investment in the retail sector by Global Retial Development Index, in 2009.
• The share of retail trade in the country's gr oss domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010. It is the largest industry in India with an employment of around 8%.
• 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025. Commercial real estate services company findings state that India's retail market is currently valued at US$ 511 billion. Further that India has moved up to the 39th most preferred retail destination in the world in 2009, up from 44 last year.
• Foreign direct investment (FDI) inflows as on July 2009, in single-brand retail trading, stood at approx. US$ 46.60 million, according to the Department of Industrial Policy and Promotion (DIPP).
• India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. Also, organized retail, which is pegged at around US$ 8.14 billion, is expected to grow at a CAGR of 40 per cent to touch US$ 107 billion by 2013.
• Organised retail presently only accounts for less than 4% of the overall sector. This is expected to grow by more than 400% to $30bn by 2008, taking 8% – 9% of the retail sector as a whole. The organized retail sector currently accounts for around 5 per cent of the Indian retail market & is expected to capture 15 – 20% market share by 2010.
• India has one of the largest numbers of retail outlets in the world with 5.5 retail outlets per 1000 population. The sector is witnessing exponential growth with retail developments taking place not only in major cities and metros but even in tier-II and tier-III cities in India.
• One quarter of the world’s youth live in India. More than 50% of the Indian population is below 25 years of age.
• By 2050, India will have overtaken China as the world’s most populous nation.
• 209 million households across the country. Although only six million of these are classified as rich, a further 22% are regarded as the consuming classes. This figure is expected to rise to 32% by 2010
• Rising disposable incomes, cheap consumer credit, highly attractive demographics, a booming economy and an increasingly liberal regulatory environment. Disposable incomes are expected to rise at an average of 8.5% per annum until 2015. Availability of cheap credit is increasing. 25-30% annual growth in retail loans and credit cards
• One of the world’s fastest growing economies; 3rd largest country in the world in PPP terms, India’s GDP has more than doubled in the last ten years. 32% rise in urbanization by 2009.
• 10% annual growth in Retail market since 2000
• 7% of the population is engaged in retailing
• A booming US$ 300 billion retail market in India

Source: KPMG and E & Y industry study reports.

Food & Beverage Retail

The India Retail Report 2009 says that the country's consumer food service industry is envisaged to be one of the fastest growing industry. From around 100 people who go shopping, 60 eat out and 40 go out for entertainment, of which eating is an important part. Around 80 per cent of the population eats out at least once a month, while almost 28 per cent eat out 4-6 times in a month. The reason behind this growth in the country is largely the demographic changes, emergence of nuclear families in rural/urban areas, growing trend of female professionals and advent of double-income households, industry experts comment.

The vocational training market in India is worth approximately USD 1.6 bn and is estimated to be growing at 25% per annum. Demand for skilled workers across sectors ranging from manufacturing to retail and hospitality is fuelling the market for vocational training institutes. Sustained economic growth, rising trade and burgeoning domestic demand is driving the need for workers with necessary skills.

As India’s economy grows, there is an urgent need to produce technicians of international standard to meet industry’s rising demand for skilled manpower. However, the vocational education stream in India is quite small, enrolling less than 3 percent of students at the upper secondary level. Analysis also shows that the Vocational Education and Training (VET) system is not responding to the needs of the labour market. Less than 40 percent of its graduates find employment. Industry’s limited involvement in the management of vocational training is a key constraint to matching skills between demand and supply.

With the economy becoming more specialized and the demand for better levels of specific skills increasing, vocational training has gained greater significance. It is estimated that during 2006-2010, 71m youngsters will enter the working-age population in India. Ironically, the country has a huge shortage of skilled people and this talent deficit is already hampering the growth prospects of manufacturing and services sectors.

Vocational & Educational Training

The vocational training market in India is worth approximately USD 1.6 bn and is estimated to be growing at 25% per annum. Demand for skilled workers across sectors ranging from manufacturing to retail and hospitality is fuelling the market for vocational training institutes. Sustained economic growth, rising trade and burgeoning domestic demand is driving the need for workers with necessary skills. As India’s economy grows, there is an urgent need to produce technicians of international standard to meet industry’s rising demand for skilled manpower. However, the vocational education stream in India is quite small, enrolling less than 3 percent of students at the upper secondary level. Analysis also shows that the Vocational Education and Training (VET) system is not responding to the needs of the labour market. Less than 40 percent of its graduates find employment. Industry’s limited involvement in the management of vocational training is a key constraint to matching skills between demand and supply With the economy becoming more specialized and the demand for better levels of specific skills increasing, vocational training has gained greater significance. It is estimated that during 2006-2010, 71m youngsters will enter the working-age population in India. Ironically, the country has a huge shortage of skilled people and this talent deficit is already hampering the growth prospects of manufacturing and services sectors.

• The Indian movie industry is the largest in the world with more than 1000 movie releases and over three billion movie goers annually.
• While Hindi films continue to dominate the industry as a whole in terms of revenues earned, movies made in the South (Tamil and Telugu) hold a strong position in terms of number of movies produced in an year
• The Industry is expected to grow at a steady rate over the next five years.
• Small budget and regional films are expected to gain increased focus.
• The industry is expected to grow at a CAGR of 9.1 per cent over the next five years to reach a size of INR 168.6 BN by 2013.
• The industry is expected to witnessing a growing focus towards regional cinema (such as South Films, Bhojpuri etc) and towards smaller budget ‘concept' movies.
• Evolving customer preferences, emergence of multiplexes, rising talent costs of ‘A’ budget actors, rise of multiplexes are driving this trend towards regional and niche cinema.

Source: FICCI-KPMG M & E industry report 2009, KPMG Analysis

Source: FICCI-KPMG M & E industry report 2009, KPMG Analysis

(Emergence of Multiplexes have changed Movie Economics)

Source: FICCI-KPMG M & E industry report 2009, KPMG Analysis

Additional Statistics

• 1000 movies produced annually over the last 4 years (US $ 2.4 Billion in 2008)
• Revenues dominated by Domestic Box Office at 75%, unlike Hollywood at 11%
• Home Video Revenue currently at 8% expected to reach almost 20% by 2013
• Overseas Revenues are rapidly growing at 21% due to increasing popularity of Indian Movies abroad
• Digital Cinema enabling increased reach, helping curb piracy and increasing revenues for Producers
• Corporatization and Industry status augmenting financing
• Hollywood Studios partnering with Indian companies and movie makers

Source: Census India,2001

Source: South India Cinema, the Road Ahead, 2007; Indian Multiplex Sector Report, Systematix, March, 2008; KPMG FICCI Frames Report,2009; Ernst and Young, Yes Bank and other Trade Reports,

*Includes non operational screens

Source : Ernst & Young Study

Additional Statistics

• 99% of Cinema Halls and  Multiplexes are located in Tier-1 and Tier-2 towns. 72% of Indian Population resides in Tier-3 and Tier-4 Towns and Villages.
• Around 10 Lakh (1 Million) Video Parlors, Mobile Cinemas and Video Cinemas operate all over the country, most of them illegal.
• Less than 2% of such Parlors and Cinemas exhibit licensed content.  Less than 0.5% of such Parlors and Cinemas exhibit ‘First Day First Show’.
• More than 80% Cinema Halls are not Air Conditioned. An equal number do not provide Push Back Seats.
• Except Multiplexes and a few select Cinema Halls, no other Exhibition facility provides a rich consumer experience to the audience leading to families and educated class shying away from visiting them.
• Less than 5% Cinema Screens are 2 K DCI compliant.