Opportunities for Quebec Exporters in India's Infrastructure Sector
Quebec-based exporters engaged in business in India have significant opportunities in sectors such as infrastructure, aerospace, defense, agriculture, and more. India's focus on infrastructure development presents avenues for growth, although challenges like price sensitivity and brand awareness exist. Key industry events offer networking and business prospects for interested exporters.
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Emerging Opportunities in India October 25, 2012 Export Development Canada
Outline Quebec based exporters doing business in India Opportunities, challenges & key industry events in the following sectors: Infrastructure Aerospace Defense and Security Environment & Renewables Agriculture & Agri-food Life Sciences EDC s solutions Strategic relationships, partners and contact information 2
Engagement with Quebec based exporters (India) 500 471 450 400 415 396 350 300 301 250 Business Volumes (in CAD mln) Year 258 200 150 100 50 0 2007 2008 2009 2010 2011 3
Infrastructure India s 12th Five year Plan envisages spending of USD 1trln on Infrastructure. Private Sector is expected to contribute at least 50% or USD 500bln of target Infrastructure investment. The Delhi-Mumbai Industrial Corridor Project is a USD 10bln project covering six provinces spanning a length of 2700km. Demand increasing for pre-fabricated, low cost and quicker construction technologies. 4
Opportunities (Infrastructure) A fast growing real estate market offers opportunity for supply of quick build and green construction technologies. Several provinces are in the process of expanding their suburban transport systems creating opportunities for intelligent transportation systems and tolling technology. New and modernization of existing ports is fueling opportunities for port operations management, cargo handling systems. 5
Challenges (Infrastructure) Price sensitive market with relatively lower value given to EPCM services. Time consuming process of infrastructure implementation from conceptualization to completion. Indian project developers look for low cost and functional solutions. Relatively low brand awareness of the capabilities of Canadian companies. 6
Key Industry events (Infrastructure) FICCI India Infrastructure Summit Sep (annual event) hosted in Delhi. Confederation of real estate developers association of India NATCON Feb (annual event) hosted in Delhi. ASSOCHAM Consulting Engineers association of India International Seminar on Transport Infrastructure@2025 Dec (annual event) New Delhi. Build India Sep (annual event) New Delhi 7
Aerospace India is expected to be among top five global aerospace markets by 2025. Policy impetus expected to promote India as a global base for manufacturing aerospace components for the domestic and regional market. Domestic aerospace industry faces challenge in scaling and moving up the aerospace value chain.
Opportunities (Aerospace) Fixed and rotary wing aircrafts Aircraft structures and components Avionics and electronics Machining, materials and plastics MRO (maintenance, repair & overhaul) services Simulation and training
Challenges - (Aerospace) Traditionally aerospace sector has been dominated by State owned enterprises (who largely cater to the defense establishment) Low awareness of Canadian capabilities in the aerospace sector Procurement dominated by imports (subject to price fluctuation) Domestic aviation sector continues to be tightly regulated
Key Industry events - (Aerospace) MRO India 2012: Quebec is the partner in this year s event. Aero India Bi-annual event that is attended by leading local players such as HAL, NAL, TATA Group, Mahindra Group etc. India Aviation Show Bi-annual event that similar to Aero India sees significant participation from India and overseas.
Defense & Security India continues to face defense and security challenges (internal and external) Is actively looking for new and innovative technology to augment its aging equipment. Defense offset clauses essential part of any long term engagement with the armed forces.
Opportunities (Defense & Security) Indian homeland security estimated to be approx USD 10bln by 2016. Increasing demand for biometric access systems, surveillance (land and airborne) systems, explosive detection, paramilitary training. Major business groups such as TATA , Larsen & Toubro, Reliance, Punj Lloyd are open to engage with overseas companies for (defense off set requirement). manufacturing tie-ups
Challenges (Defense & Security) Highly competitive market with legacy of past and continuing purchase from USA, European Union countries and Russia. Long and time consuming process of bidding, evaluations and trials. Focused and continuing engagement pre- requisite to doing business with the armed and paramilitary forces.
Key Industry events (Defense & Security) IFSEC Homeland Security Show, N Delhi Annual event hosted in Nov each year. Attendees include private sector players and paramilitary forces.
Environment & Renewables Energy demand-Supply gap presently over 10% and expected to increase over the next decade. Increasing burden of imports of fossil fuels to meet energy requirements. Ambitious targets of rural electrification require greater investment in grid connected generation capacity 10 year National Action Plan for Climate Change is looking for 20% reduction in emission from fossil fuels.
Opportunities (Environment & Renewables) National Solar Mission envisages Solar installed capacity of 20GW by 2022. Present installed capacity has exceeded 1GW. Developers looking for Solar PV and CSP technology. Untapped potential of approx 65GW in Wind Energy in the country. Opportunities in water and waste treatment include projects on EPC , BOT and BOOT basis.
Challenges (Environment & Renewables) Price sensitive market Lack of adequate power transmission/distribution transmission infrastructure and delays in land acquisition. Off-grid projects find it difficult to secure long tenor financing. Dedicated team required to tap into potential/existing developers (long gestation period)
Major events (Environment & Renewables) Delhi International Renewable Energy Conference (DIREC) annual event focused on renewable energy sector (well attended by developers and technology providers). International Wind Conference Annual event organised in Apr May in Chennai. Intersolar annual event focused on the solar industry (Mumbai).
Agriculture & Agri Food India is among the top five importers of edible oils in the world. India is the largest importer, producer and consumer of peas and pulses. India is the largest producer of milk in the world. India has a relatively poor infrastructure for storing food grains (needs new and adequate food grain storage systems)
Opportunities (Agriculture & Agri Food) Imports continue to remain steady and with a greater part of the population rising up the nutrition value chain, the demand for quality lentils and pulses will continue to grow. Opportunity for exporters of premium edible oils such as Canola oil. Continuous improvement in life stock genetics gives the opportunity for animal genetics. Growing demand for premium fish, mollusks and crustaceans.
Challenges (Agriculture & Agri Food) Market access and lack of clarity/transparency in the import process. Lack of awareness/branding of Canadian products (pulses, oil, processed foods) Limited opportunity in organised retail (regulations are being relaxed) European countries have a well established presence in the market.
Key Industry events - (Agriculture & Agri Food) Annapoorna Annual event held in Mumbai. Has witnessed participation from Canadian exporters in the past. Agrotech 2012 Scheduled for Dec in the city of Chandigarh. Focused on farm machinery and technology. Global Pulse Conclave Jan 2013 in Mumbai. AAHAR Annual event held in New Delhi. The event in 2013 will witness a Canada pavilion showcasing the best that Canada has to offer. 23
Life Sciences Medical devices and imaging market continues to grow at a compound annual growth rate of 20% in India. Growing market for nutraceuticals and specialised drugs. Diagnostic market is witnessing an explosion with a few diagnostic chains and largely being limited to private labs. IT in Healthcare is growing at a CAGR of 22% and expected to continue to grow.
Opportunities (Life Sciences) High end medical devices and imaging equipment are imported (constitute 2/3 of market). Increasing urbanisation and disposable income is leading to increase in demand for functional foods and dietary supplements. Low cost diagnostic kits and vaccines are in demand.
Challenges (Life Sciences) The Indian Patent laws do not recognise product patent thereby acting as a deterrent for foreign players to launch their products in the market. There is no body that has regulation/oversight on the medical devices market. This enables sub-standard devices to be sold. Price sensitive market.
Key Industry events (Life Sciences) CPHI India annual event organised in Bengaluru in November. Is the key event for Pharma Industry. Bangalore Nano event focused on nanotechnologies. Annual event organised in December in Bengaluru. Medical Fair India annual event organised in March in New Delhi. Bio-Asia annual event organised in January in Hyderabad. 27
About Export Development Canada (EDC) Canada s Export Credit Agency Crown corporation wholly owned by Government of Canada Financially self-sustaining Operates on commercial principles Conducts its activities in a socially responsible manner
EDCs Role To support and develop Canada s export trade and Canadian capacity to engage in that trade and to respond to international business opportunities Financing and insurance solutions for exporters and investors
EDCs Major Products Financing Foreign Buyer Financing Canadian Direct Investment Abroad (Outbound FDI) Domestic Financing (for Canadian exporters) Inbound Foreign Direct Investment (Inbound FDI) Accounts Receivable Insurance Contract Insurance and Bonding Political Risk Insurance Equity Investments Complete Suite of Financing Solutions for Integrative-Trade
Strategic Relationships Extractive Tata Steel Limited Reliance Industries Limited Reliance Industries Limited Reliance Industries Limited Reliance Industries ICICI Bank Information, Communications & Telecom GTL Limited Tata Communications (Netherlands) B.V. Vodafone Essar Limited Vodafone Essar Limited Bharti Airtel International (Netherlands) B.V. Larsen & Toubro Infrastructure & Environment Tata Power International Holdings Limited Kotak Private Equity Group SREI Infrastructure Development Finance Limited Reliance Infrastructure Limited (formerly Reliance Energy Ltd) SREI Infrastructure Development Finance Limited Larsen and Toubro Limited IDFC India Infrastructure Fund Avigo SME Fund II Larsen and Toubro Limited Tata Group GMR Group Bharti Airtel Transportation Sector Ashok Leyland Limited
Stanley Santmayor Regional Manager Simonil Bamji Coordinator Mumbai Vibhav Agarwal Regional Manager New Delhi Leena Subramanian Coordinator-South Asia New Delhi Vijendra Gairola Chief Representative Mumbai Mumbai 33
Partners Department of Foreign Affairs and International Trade: Mr. Anuj Bhasin (anuj.bhasin@international.gc.ca) Infrastructure Mr. Prashanth Nair (prashanth.nair@international.gc.ca) ICT Mr. Viney Gupta (viney.gupta@international.gc.ca) Wood products/defense/aerospace Dr. Saroj Mishra (saroj.mishra@international.gc.ca) Energy & renewables Mr. Saibal Ghosh (saibal.ghosh@international.gc.ca) Oil & Gas/life Sciences/mining Ms. Kathleen Donohue (Kathleen.donohue@international.gc.ca) agriculture & agri foods. 34
Partners continued. Export Quebec (co-located in the Canadian Consulate in Mumbai): Benoit-Jean Bernard (Consul & Director Quebec Office Mumbai) Benoit-Jean.Bernard@international.gc.ca +91-22-67494483 Cell no: +91-9967630353 Pranav Doshi (Trade & Public affairs advisor) Pranav.doshi@international.gc.ca +91-22-67494485 Cell no: +91-9967630355 35
Export Development Canada (EDC) To learn more about how EDC insurance, bonding or financing solutions can help, please contact us at 1-888-235-6148 or visit our website at www.edc.ca Vibhav Agarwal (Regional Manager - New Delhi, India) VAgarwal@edc.ca Phone: (011) 91-11-4178 2288 36
Thank You! 37
