Investing in India
Almost all investment opportunities in
- Domestic – tapping Indian consumer and enterprise demand (e.g. retail, construction & real estate, financial services, hotels)
- Export of existing goods/services – shift production/delivery of existing goods and services from high cost countries to
- Export of innovative goods/services – creation of new IP (e.g. software products, pharma NCEs, semiconductor products)
Naturally, the 1st and 2nd categories have achieved more scale and prominence so far. The main distinction of (3) over (2) lies in creation of products (one-to-many sale), higher R&D costs, long gestation period before revenues, patent-filing, royalty revenues from the same etc. While a few companies have adopted this route, few companies have scaled up in innovative areas. I-flex was probably the largest company in this segment, before being bought out by Oracle.
In theory, the same goods and services that are exported can also be sold in the domestic market. In areas such as auto components and pharmaceuticals, domestic market revenues are comparable to export revenues. However, in most of these areas, the export opportunity is likely to be substantially larger than the domestic market opportunity. Also, the product range and pricing are also substantially different for the export market. We are therefore better off treating (1) and (2) as two separate categories.
More on each of these areas in later posts …
posted by Anand Sridharan @ 9:25 AM
15 Comments:
Hi Anand,
That was as an insightful column. But , I somehow feel that the category 2 companies have gained more prominence and are more transparent.
Slowly, more and more companies are crossing the line into the category 3 companies. The examples which come to my mind would be Nokia, TI and Intel which have developed atleast a part of their latest products in India.
But, I know only about MNCs taking advantage of India's intellectual capital.
Is there a good deal of homegrown talent in India? As far as I know, most of the startups are confined to the likes of IITs, IISc and IIIT - Blore.
Keep blogging.
SEO considers how search engines work and what people search for.
Optimizing a website may involve editing its content and HTML and
associated coding to both increase its relevance to specific keywords
and to remove barriers to the indexing activities of search engines.
Promoting a site to increase the number of backlinks, or inbound links,
is another SEO tactic.
=============
SEO projects
you have did a great job by publishing this useful health related information for people throguh this blog, i m very thankful to you... keep blogging thanks again..
I am not really sure about the actual theme of the post.
I am really sure about what you wanted to clarify. Thank you a lot for your effort.
Most of the startups are confined to the likes of IITs, IISc and IIIT - Blore.
It is true that Nokia, T| and Intel is rapidly developing in the India like other countries of the world.
The export opportunity is likely to be substantially larger than the domestic market opportunity.
Another mind-blowing article . Anand keep up good things .
The main distinction of (3) over (2) lies in creation of products (one-to-many sale), higher R&D costs, long gestation period before revenues, patent-filing, royalty revenues from the same etc.
Such a big country man. I this its worth it investing in India. and if i will ever have that kind of money i will certainly invest in India.
Another mind blowing post . Letter should be post to every body .
Really good site thank you so much for your time in writing the posts for all of us to learn about. It will be very useful for me.
share market
stock market
Indian Stock Market Tips
I am very much pleased with the contents you have mentioned. I enjoyed every little bit part of it. It contains truly information. I want to thank you for this informative read. Intraday Calls || Stock market tips || Nifty Trading.
Nice post thanks!
phone interview tips
Post a Comment
<< Home