Social Infrastructure and Technology in India: Zinnov Management Consulting

Zinnov Management Consulting
Social Infrastructure and Technology in India

April 2012
This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or
reproduced for distribution outside the client organization without prior written approval from Zinnov.
India has emerged as one of the leading economies in the world
Top Ten Countries by GDP (USD Tr, PPP), 2011
15.04
11.29
4.46 4.38
3.08 2.38 2.28 2.25 2.21 1.82
USA China India Japan Germany Russia Brazil UK France Italy
India’s Position in the Global Economy
• India is one of the fastest growing economies in the world

• Infrastructure has played a significant role in the growth of the Indian economy
• Further plans to invest $1 trillion in 12th five year plan(2012-2017) in the infrastructure sector
Source: IMF; Planning Commission of India; Zinnov Analysis 2

Note:
Along with the overall growth, the IT market has also been growing rapidly
Estimated Growth of IT Markets in 2011 (in Domestic Indian IT Market, USD billion
USD)
Hardware Services Software
3.6
India 20.7%
3.1
2.3 2.7 11.5
Russia 18.1% 1.8 9.5
8.0 8.4
1.4 6.1
4.7
Brazil 13.0% 10.0 10.1 12.2
6.9 8.6 9.2
China 12.0% FY06 FY07 FY08 FY09 FY10 FY11
UK 6.0% Indian IT Market by Customer Segments, FY11,

USD billion
United States 5.0% 30
25
20 12.9
Japan -4.5%
15 27.3
10 6.9
Worldwide 5.7%
5 4.1
3.4
-10.0% 0.0% 10.0% 20.0% 30.0% 0
Total Large SMB Government Consumers
Enterprises
Source: NASSCOM; Company Annual Reports; Press Releases; Dataquest; Primary Interviews with Stakeholders in the Indian IT Ecosystem; Zinnov Analysis 3
Note:
Investments in IT are helping develop the social infrastructure of the country
Social Infrastructure in India

Transportation Healthcare
Financial Inclusion
Education
Small and Medium

Businesses (SMBs)
Training and Skill

Development
Smart Cities/
Citizen Services
Energy
Source: 4
Note:
Healthcare Education Skill Development Smart Cities/ Energy Citizen Services SMBs Financial Inclusion Transportation
The rapid growth in healthcare is being driven by the use of IT
The industry comprises of:

a. Pharmaceuticals b. Healthcare Services c. Healthcare Equipment
Market Size and Future Projections Role of IT in Healthcare

Healthcare
• IT can extend the reach of medical
300 280 treatment to the remotest parts of
USD Billion
200
the country
90
100
• IT plays a vital role in bridging the
0 huge gap between demand and
2010 2020
Pharmaceuticals
supply of healthcare facilities in
India
25
20
USD Billion
20
15
• Government initiatives like the
10 7 HMIS1 portal can be useful in better
5 policy formation and health
0 monitoring in the country
2010 2020
Source: News Articles; Industry Reports; Zinnov Analysis 5

Note: 1Health Management Information System
Telemedicine is helping hospitals in India extend their services to the remote regions
CISCO HealthPresence Solution

Business Solution Benefits
Objective
To transform the Uses the network as a • End-to-end soln. for remote diagnosis
delivery of healthcare platform, which integrates
• Helps in scaling across
and enhance care at a high-definition video,
HealthPresence networks
distance between advanced audio, medical
patients, clinicians and devices, and collaboration • Enhances productivity and clinical
specialists tools to deliver the service workflow
Live Use Case

• Adopted by Telerad RxDx, a hospital in Bangalore, India
• RxDx is using Cisco’s HealthPresence to provide medical
care to patients living in Raichur, North Karnataka
Patient
Terminal • Benefits: The average number of patients has increased 90
Expert Doctor
per cent because of telemedicine operations
Solution
• Future Prospects: RxDx plans to increase deployment of

Telecommunication
Cisco’s telehealth services to continue to improve
healthcare delivery in remote locations
Source: News Articles; Cisco Website; Zinnov Analysis 6

Note:
Hospitals like Sankara Nethralaya are leveraging cloud computing to make available their digital
records to other fellow hospitals
Key Attributes Key Highlights
Business • Facilitate seamless automated delivery

Objective of ophthalmic services across hospitals
• Electronic Medical Records on external Benefits

cloud to store all data and clinical
Key Solution images  Brings in standardization
• Make EMR accessible to smaller  Quicker and easier access to data across
hospitals based on a pay-per-use model hospitals
 Improved sharing of medical records with
academia and pharmaceutical companies for
• Telemedicine using VSAT and e-learning R&D activities
• EMR based studies through BI  Consistent quality of service followed in
Other Initiatives • Mobility solutions leveraged to ensure clinical processes
medical adherence by staying in touch
with patients
Technology Partner: TCS
Source: www.cio.in; Zinnov Analysis 7

Note:
Indian education system requires significant investments and efforts, which can be driven by
the help of IT
Education in India
 About 45% of teachers teaching in schools in India are

not even graduates
 61% of schools don’t have access to electricity
 Only 17% of schools have computer
 Only 39 out of every 100 students reach 10th grade
 Dropout rate after elementary education is 44%
 One out of every three students in class 5th cannot

read or write
Source: 8
Note:
HP, in participation with NCERT, has introduced Lab-in-box to facilitate a mobile computing
center for educational institutions
HP - National Council of Educational Research and Training

(NCERT) - Lab-in-Box
Benefits
Features
Objective Solution Fully integrated mobile

solution with minimal • Remote delivery of classes
costs
A mobile • Printing of latest textbooks by
HP’s Lab -in-Box
computing center downloading them and using

that overcomes Technology-equipped network printers
Making quality the power, space, classroom housed in a
education infrastructure and shipping container • Tracking school drop-outs
accessible to all equipment
challenges of • Access to predesigned
remote locations 15 HP PCs, printers, education tutorial with different
wireless connectivity and syllabuses
a diesel electrical
generator
Source: News Articles; Zinnov Analysis 9

Note:
Everonn, an education company, is leveraging IT to make education more interactive as well as
available to the masses
Company Profile Services
• Provides IT solutions to government schools through

• Education company focusing on technology-enabled Build-Own-Operate-Transfer (BOOT) model
learning through VSAT-enabled virtual and interactive • Provides modules for school level education
classrooms • Online education for job aspirants in domains such as
IT, ITES, Management, Banking and Financial Services at
• Provides services in the following domains- schools, college level
colleges, web products, entrance examination guidance,
retail, skill development, teachers’ training, education • Provides training in electricals, welding, plumbing,
resources, e-governance, animation and gaming and textiles & accessories, etc.
formal education segments. • Developed web products for online education and
learning
• Revenues: ~$600 million • Instituted programs for training of teachers and for
promoting education in rural India
Partnerships
• Everonn has partnered with the National Skill Development Corporation’s (NSDC) mission
• Launched of International Skills School to skill people
• The average course fee is expected to be approximately $180 (INR 9,000) per person with the course ranging from 30 days to six
months in nine sectors - Textile and Apparel, Retail, Hospitality, Automobile, Healthcare, Construction, IT and ITES, Basic
Engineering, Multimedia
Source: Company Websites; Zinnov Analysis 10

Note:
The National Knowledge Network (NKN) is an initiative by the Government of India to extend
information availability with the use of IT
Educational Establishing connectivity for knowledge and

Institutions information sharing
Global
Research
Networks
Labs (e.g.
(e.g.
CSIR) Facilitating an ultra high speed e-Governance
GEANT5)
backbone
MPLS4 and NKN

NKN will enable Facilitating distance education in specialized
Broadband Stakeholder NIXI1
fields such as medicine, nanotechnology, etc.
Clouds Ecosystem
Enabling collaborative research in emerging areas

Security National such as climate modeling
Organization and State
s (e.g. Cert- Data
in3) Centers Acting as a test bed for research in the area of network
EDUSAT2 and security and delivery models of various services
Present Status and Future Outlook
The National Knowledge Network (NKN) has been established to

connect around 1,500 knowledge institutions across the country
through high speed data communication network
Source: Government Websites; Zinnov Analysis`

Note: : 1National Internet Exchange of India; 2Indian Educational Satellite; 3Indian Computer Emergency Response Team; 4Multiprotocol Label Switching; 5Pan-European 11
Communications Infrastructure Network
IT is also playing a role in extending vocational training and skill development across India
Skilling and
Training
Players
Government Privately
Controlled Held
Managed by Industry
Hybrid/ PPP Corporates NGO
Government Association/
Industry Players
Industrial
Training
Centers
Source: 12
Note:
Many enterprises are leveraging IT to provide training to their employees
• Workers are trained on basics and best

Classroom practices
• Conducted by mid-level employees, highly
Sessions experienced internal employees, experts from
the industry, etc.
• Focus on shop-floor training, machine usage,

maintenance, quality and productivity
Workshops management
Modes of • Conducted by internal/ external stakeholders
Training in
Manufacturing
Firms • Focus on training on a specific skill-set for a
On-the-Job specified period of time
• Mentored by an internal experienced
Training employees
• Slow paced training but most effective
• High on effectiveness than classroom/

workshop training.
Audio/ Visual • Prevalent in very few enterprises due to initial
Training cost and content structuring
• High acceptability for relevant content
Source: Primary Interviews, Zinnov Analysis 13

Note:
The infrastructure for cities/ energy demands huge investments over the next decade
Current Scenario Expected Requirement/ Shortage by 2020
• A housing shortage of 30 million dwelling units

• Over 30% of Indian population living in urban areas • 200 million water connections required
• India added ~2,800 towns in the last decade • Access to sewage for 350 million people
• ~30% AT&C1 loss in power sector • Extra 160 GW of power generating capacity
• 215 million people in India to migrate to cities by 2015 • The number of vehicles on roads expected to increase
fivefold
Key Government/ Private Sector Policy and Initiatives
Urban Development Schemes Technology Partnerships Electricity Distribution
Jawaharlal Nehru Urban Renewal R-APDRP: Leveraging IT applications for

IBM partnership with The Bureau of
Mission: parameters under consideration energy accounting/auditing and IT-based
include sanitation, sewerage and solid Energy Efficiency in India to create
waste management, urban transport, etc. country’s first smart grid project consumer service centers in the power
sector
Smart Traffic Smart Homes

State administration like Kerala and West Private sector players like Mantri
Bengal government are implementing Developers and Lavasa Corporation are
smart traffic management systems for tying up with technology companies for
intelligent policing smart homes
Source: Zinnov analysis, News articles, Industry reports, Company websites 14

Note: 1Aggregate Technical & Commercial
Cisco’s smart connected community is driving a variety of urbanization initiatives in the country
Cisco has rolled out its smart+ connected solutions for industry,
communities, government, homes, etc.
Smart + Connected Communities
6,000 people added • An effort to embed networking and internet

since 2007 technologies into buildings and cities
• 827 customer CXOs from around the world
visiting the campus in Bangalore
16 VPs and SVPs with
Global Roles • 35 projects around the world, all of it managed
Multiple from India
Global • The EMC office in Bangalore and the Vodafone
104 Directors with Initiatives office in Pune have adopted Cisco’s
Global Responsibilities Smart+Connected Communities technologies
from India
• Cisco’s Bangalore campus - a Smart+Connected
Community campus
722 Patents • Mahindra and Cisco have collaborated in India
to build smarter, connected communities. The
first project under this initiative intended to be
the Mahindra Innovation Park
Source: News Articles; Cisco Website; Zinnov Analysis 15

Note:
IBM has launched The Smarter City initiative in India
IBM – The Smarter City
• IBM is working with cities and governments on

issues ranging from transport, water, health care
and energy efficiency
• Targeting municipalities and local administrative
bodies in cities across the country
• Company currently running pilot projects across
cities in India
• Plans to start operations in 40 Indian cities by 2013
IBM Smarter Cities Challenge

As a part of the “Smarter” initiative, IBM has tied up • IBM had issued Smarter Cities Challenge grants to
with Ingersoll Rand to provide Remote Energy and 33 cities in the 2012 round of the three-year, $50
Asset Management solutions in India which would million program to help improve conditions in
drive greater energy efficiencies for organizations urban environments throughout the world
• Pune and Ahmedabad are the two cities recipient
of this challenge in 2012
Source: News Articles; IBM Website; Zinnov Analysis 16

Note:
A number of other case studies are also available to highlight the use case of IT in Indian
housing/ power segment
 IBM has collaborated with The Bureau of Energy Efficiency (BEE) in India for
energy efficiency India’s first smart grid
Partnerships
 The objective of the project is to create a cost benefit analysis for smart grid project
activities as part of the National Mission for Enhanced Energy Efficiency (NMEEE)
 Siemens won an order from the State Electricity Distribution Company of

Maharashtra for the installation of turnkey supervisory control and data
acquisition technology for the power distribution networks in eight cities
Help improve grid
Smart Grid  Expected to improve the availability and transparency of the distribution
efficiencies in India
networks and cut the related power losses by as much as 15 percent
 Contract volume includes entire project management along with development,
manufacture, implementation and commissioning of supervisory control centers
 Mantri Developers collaborated with Cisco to develop new ICT-enabled real

Examples of smart home
estate models ‘Mantri Connected Communities and Smart Homes
Smart Cities  Similar collaboration between Lavasa, Wipro and Cisco to develop India’s first
initiatives by the private
sector
sustainable, connected and intelligent city
Source: Company Websites; News Articles; Zinnov Analysis 17

Note:
In recent years, the government has been spending on e-governance to improve the citizen
services in the country
8,000 7,578 Investment Outlay

All figures in USD million
7,000
6,000
5,000
4,000
3,000
2,000
1,331 1,200 1,149 1,024 1,000
1,000 787
556
156
-
1
NeGP 2
NKN Automation of 4
R-APDRP 5
NME-ICT Project Arrow NPR6 IAF7 CICP8
3
PDS e-maintenance (Indian Army)
Program
Many IT vendors have established closed relationships with the government to steer the NeGP initiative, for instance, IBSG, the
strategic arm of Cisco, has been closely associated with the Department of Information Technology (DIT) to provide advice on
accelerating the implementation of NeGP
Source: : Ministry of Information and Communication Technology; News Articles; Zinnov Analysis
Note: : 1National e-Governance Plan; 2National Knowledge Network; 3Public Distribution System; 4Restructured-Accelarated Power Development and Reform Program; 5National 18
Mission on Education through Infrastructure and Communication Technology; 6National Population Register; 7Indian Airforce; 8Computerized Inventory Control Project
The creation of Unique Identification(UID) will help extend services to the unreached strata of
the Indian society
UID Stakeholder Ecosystem
Biometric Solution Providers Contact Centre System
UIDAI will make use of biometric Biometric Systems Contract for setting up and operating
systems to effectively de-duplicate contact centers for providing services
identities in official languages has been
16 companies have been shortlisted Biometric Middleware awarded to Intelenet Global Services
including HCL, Accenture, TCS, etc.
Logistics Interface
Admin Portal FD Analytics UID Central Application
Contact Centre
Knowledge Management
Interface
MindTree Ltd. has been chosen as
HCL Infosystems has been hired for UID App Server the application software
design, development, maintenance development, maintenance and
and support of intranet and Enrolment Authentication support partner for the UID central
knowledge management portal of application
UIDAI
e-Governance Cloud-Infrastructure Data Centre
Web Portal
Data Centre Infra Management Wipro has been hired for supply,
TCS has been awarded the contract
for the re-designing, development, installation and commissioning of
maintenance and support of UIDAI data centers
web portal
Six telecom companies

(Aircel, Bharti Airtel,
BSNL, Reliance, Tata
Contracts for various projects under UIDAI are awarded communications and
through tenders Railtel) have been
empanelled to provide
Piped Data Services
Source: UIDAI; RFPs; News Articles; Zinnov Analysis 19

Note:
SDCs are being set up across all states and UTs acting as a secure IT infrastructure to host e-Gov.
applications and enable seamless delivery of services
The SDCs are being set up on a BOOT4 model with two specified
phases
Design, Supply, Installation and Operation and Maintenance

Commissioning Phase1 Phase1
Current Status
• Designing of the data centre • System, network and application • 16 operational SDCs
• Supply and installation of all IT and maintenance • 2 SDCs in
non-IT components • Backend services (mail, messaging,
• Testing and security assurance etc.) implementation phase
• Application hosting • Back up and restore services
• Training • Bandwidth management services
• Documentation • Infrastructure management
Illustrative list of IT companies which have won SDC contracts
SDC projects are

awarded by the
state governments • Maharashtra • Jammu and Kashmir • Mizoram • Kerala
• West Bengal • Haryana
• Gujarat • Nagaland
• Andhra Pradesh
Source: Ministry of Information and Communication Technology; RFPs; CSC-India; News Articles; Zinnov Analysis 20
Note: 1Illustrative list; not exhaustive
IT is also being leveraged to bring efficiency and transparency in the governance system
Ministry of Home Affairs • Wipro has been selected by the MHA for developing the core
software for a crime and criminal tracking network system
To create a nation-wide IT-
• Also to develop core application for digitization of criminal
enabled criminal tracking CCTNS1, a project executed by Wipro
records
system • Once deployed, the project will cover 14,000 police stations,
6,000 higher offices, and other police departments
Gujarat Government
To enhance accountability • E-literacy and e-usage increased from 20% to 95%
Integrated Workflow and • 10 tonnes of paper saved in 18 months
and reduce paperwork and
Documentation Management System • 1800 Acts/Rules and 1000 Government Orders are now
movement across available in the knowledge repository for ready access/sharing
hierarchies (DigiGov) developed by TCS
• Overall improvement in efficiency
Andhra Pradesh Government • A delivery model, bridging the digital divide, access to the
government for all at all times with single sign on
To offer citizen centric • Resulted in increased transparency and accountability of
APOnline, an e-governance gateway
services through a single government interactions and hence enhanced citizen
developed by TCS
window satisfaction
• Scalable kiosks model under PPP for employment to citizens
• Replicated successfully in Madhya Pradesh and Bihar
Source: Government Websites; News Articles; Zinnov Analysis 21

Note: 1Crime And Criminal Tracking Network System
Illustrative list of government projects currently under implementation by key private players
TCS Providing its technology

TCS is providing to the External
its technology Affairs Ministry
to the External for the Passport
Affairs Ministry Seva Project
for the Passport SevatoProject
automate
to
TCS issuance of passports and cut delays, as well as to the Home Ministry for police reform projects.
automate issuance of passports and cut delays, it is implementing and managing SDCs and SWANs
in many states
WIPRO Working on a project for Employees State Insurance Corporation which will connect 1,200
WIPRO Wipro is working
dispensaries, with theand
400 hospitals Ministry of Home Affairs to implement the CCTNS state MMP across the
100 offices.
country and has won three SDC deals. It is an active player in setting up CSCs in rural areas
INFOSYS lementing
Infosys isthe eBiz Project the
implementing of the
eBizDepartment of Industrial
Project of the DepartmentPolicy and Promotion.
of Industrial Involves
Policy and creatingThis
Promotion. a
INFOSYS platform tocreating
involves give theabusiness
platformcommunity
to give the access to community
business fast information and
access tosimplified procedures.
fast information and
simplified procedures
ORACLE Partnering SBI and Sahaj on Financial Inclusion project to take banking services to NREGA
ORACLE Oracle is partnering
beneficiaries with SBI
through 28,000 and Sahaj on Financial Inclusion project to take banking services to
CSCs
1
NREGA beneficiaries through 28,000 CSCs
CISCO Collaborating with NIOS with

Cisco is collaborating to introduce
NIOS2 toITintroduce
curriculum in six selected
IT curriculum vocational
in six selected institutes
vocationaland with the
institutes and
CISCO Railways for unreserved ticketing solution; Implementing SWAN and SDCs with many states
with the Railways for unreserved ticketing solutions. It is implementing SWAN and SDCs with many
states and is the key player in the R-APDRP scheme
Source: e- Courts; National Crime Records Bureau; News Articles; Zinnov Analysis 22
Note: 1National Rural Employment Guarantee Act; 2National Institute of Open Schooling
With the second largest base of SMBs worldwide, India is a land of MSMBs with significant
economic contribution
8 Russia Of total GDP contribution 17%

Mn Medium ~1.3
enterprises Mn
100-1000
14 Brazil employees Of all enterprises 98%
Mn
Small enterprises ~16.0

26 US Of the total workforce 40%
11-100 employees Mn
Mn
47 India Of total manufacturing output 45%

Mn
Micro enterprises
~29.7
1-10 Employees in
Home/ office Setting Mn
50+ China Of total exports from India 40%
Mn
IT Spend
Contribution = 47%
IT Spend
Contribution = 25% IT Spend
Large Enterprises IT Spend
(Total 5,000 Units) Contribution = 15%
MSMBs Contribution = 12%
(Total 47 Mn Units) Government Consumers
(Total 220 Mn HHs)
Source: Zinnov Analysis 23

Note:
Cloud based Cluster Area Network (CAN) established in the Tirupur is allowing SMBs to
leverage IT at an affordable cost
4,000 micro and small

manufacturing firms can make
use of this initiative by TEA
Benefits
• Reduce the cost of owning

• One time fee of INR solutions such as ERP
Tirupur Export • No cost of maintenance at
Association 10,000 followed by
a monthly fee of INR the firm level
Cloud 3,000-4,000 • Helps better track
G-Tech Solution consignments and avoid
Cloud
based • Includes modules
Special Purpose delayed shipments and
Platform ERP such as order
Vehicle associated cost of air
monitoring and
shipments
• Facilitate Training inventory
Tirupur is a textile • Helps firms compete
• Spread Awareness management
cluster with export effectively with competitors
• Identify relevant
oriented firms. The in Bangladesh and China
implementation
cluster losses appox.
partner
INR 10 billion due to
delayed shipments
and lack of effective HW Vendors SW Vendors
order management
Customize
Service
Providers
Home- grown Implementation
ERP solution on
Azure platform Help spread
Provide Training Maintenance
awareness
Source: News Articles; Zinnov Analysis 24

Note:
IT vendors are providing solutions to help SMBs grow faster in the country
• Offering: India Get Your Business • Offering: Vertical Specific • Offering: Provides end-to-end • Offering: Broad functional ERP/
Online’ initiative – to help SMBs get communication solutions for SMBs business IT enablement in a CRM capabilities, delivered on-
online with a free website, customized form to SMBs demand as a software-as-a service
personalized domain and hosting • Key highlights: EMI for equipment (Infrastructure and POS solution) (SaaS)
will be clubbed with monthly rental
• Partner: HostGator, a web hosting of Airtel • Key highlights: India’s first • Key highlights: Powerful,
provider, to also provide free multilingual POS printer designed integrated analytics to help SMBs
support in creating, hosting and • MoU with a bank to provide exclusively for the needs of rural make better and more informed
managing the website for a period financial assistance to SMBs to buy retailers decisions at lowered price ($89 per
of one year without any cost the solution user per month)
through its toll free call center • Built-in unicode support for Indian
• Consultancy services to understand languages including English, Hindi, • Customer focus: SMBs that need to
• Partner: Federation of Indian Micro the needs of the customers and Marathi and others replace point solutions, manual
and Small & Medium Enterprises also provide a maintenance processes and spreadsheets
(FISME), will work with Google contract • Capacity to work for 4-5 hours
India to help SMBs get online during power failures, has small • Focus verticals: Professional
through direct customer outreach • Focus verticals: Agricultural footprint and absolutely no services, Wholesale distribution,
and events implements, Diesel engine, Motor chances of crashing the hard disc manufacturing
and pump manufacturers, Power
• Customer Focus: To get 500,000 looms, Textile hosieries • Focus verticals: Rural retailers
SMBs online in next three years looking for a multilingual printing
through this program solution for receipts, barcodes,
labels and tickets
Source: News Articles; Company Websites; Zinnov Analysis 25

Note:
Millions of people in rural areas of India can benefit from the IT-backed financial inclusion
initiatives
Thousands of people have already benefitted from the Financial Inclusion initiatives of the government 1
Number of No-Frill Number of rural Number of Kisan Number of GCC

accounts - bank branches - Number of POS - Credit Cards - issued by PSBs -
41.5 million 31,727 522,148 76 million 152,842
Going forward, information technology can help further extend the benefits of Financial Inclusion
• Use of technologies such as mobile Key government initiatives are benefitting

phones (by Union Bank), VSATs (by from IT
Bank of India) and biometric mobile • Payments of MNREGA done online
ATMs (by Canara Bank) might help • UID will further empower people with
banks reach out to customers in electronic identities
rural areas
IT
Enabled
FI
• Equipped with laptops, data cards
• IT can help improve financial literacy
and biometric devices, initiatives
among people, both urban and rural,
such as “Bank on Bikes” by the State
with initiatives such as Project
Bank of India can provide banking
Financial Literacy by RBI
facilities to the unbanked
Source: DNB; Reserve Bank of India; Zinnov Analysis 26

Note: 12009 data
IT based startups are increasing the reach of financial inclusion to the unbanked in India
Mega Opportunity Solution
• Mobile Enabled Rural

Customer
• Current banking penetration in India is 35%;
75+ banks with 80,000 branches and 400
million accounts – huge potential base to tap
into • Local mom and pop
store is the customer
service point/ banker
Customer Insight
• USSD driven mobile
banking platform
• Mobile Short Code replaces bank

• One in every second India has mobile device account
but most do not have a bank account
• Most times family members in cities would
• Transactions driven via USSD-
like to transfer funds to their relatives in rural *3454*9902099374*500*
areas who have no accounts
• My Account Number* Recipient
Mobile Number * Amount to be
paid
Source: Eko Website; News Articles; Zinnov Analysis 27

Note:
The Fasal initiative by Intuit is helping Indian farmers with updated price information and
agriculture education
FASAL: A free SMS based platform offering real time price information to
Indian farmers about their crops
Intuit Fasal Advantage: Reach:

 To bridge the information gap between the farmers and market
conditions to get the right price for their crop  More than 470,000 farmers in Gujarat
 To enhance price transparency and availability of right  More than 250,000 farmers in Andhra Pradesh
information  ~8,000 farmers signing up with Fasal every week
 To help organizations to connect well with farmers to provide
services and advisory
Source: fasal.intuit.com; News Articles; Zinnov Analysis 28

Note:
Indian aviation is rapidly growing and needs strong IT infrastructure as its backbone…
Passenger Handling Capacity of Indian Airports Key Highlights of Indian Aviation Sector
(million)
Current Status
 9th largest civil aviation market in the world
 Current worth of Indian aviation industry - $12 billion
 Total investments by private sector (last 5 years) ~ $6 billion
143  By 2011, five Indian carriers operating on International
routes
72  Key recent activities through PPP model:
• greenfield airports in Hyderabad and Bangalore
• modernization of Delhi and Mumbai airports
FY06 FY11
Future Prospects
Key Policy Initiatives by the Government  According to estimates, Indian aviation industry would
require investments of $13 billion in next 5 year plan, out of
which $10 billion will come from private sector
• New Airports: the Ministry of Civil Aviation has approved 15
greenfield airports in India
Key Challenges:
• FDI in Aviation: Still under consideration, plans to introduce
24% – 49% FDI in the sector  Spiraling jet fuel prices – airline industry in India suffers from
huge debts
• Air Cargo Policy: Currently planning an Air Cargo Policy to
encourage cargo operators in the country  Lack of availability of foreign capital as FDI is prohibited
• Pricing and Taxing Issues: Initiating discussions on improving  Stiff interest regime
the pricing and taxing regulation scene in India  Intense competition
 Lack of trained manpower
Source: Ministry of Civil Aviation, New articles, Zinnov analysis 29

Note:
…as a result the airport infrastructure segment is providing a lot of opportunities for the IT
companies in India
 Few years back, Siemens won a major order (in consortium with L&T and Unique Zurich Airport) to build the
international airport in Bangalore
 The Delhi Duty Free Services Pvt. Ltd.1 selected Cisco as a technology solution provider for its anchor duty-
free stores at the IGI airport at Delhi
 The solution provided by Cisco to offer integration and inter-operability of Cisco LAN, Unified
Communications, Wireless, Cisco Video Surveillance and Cisco Physical Access Management with the network
as the platform
 IBM provided GMR Hyderabad International Airport (GHIAL) with end-to-end support including hardware,
software and services for its integrated decision making system
 IBM also provided support to capture and integrate historical data into a data warehouse which would act as
a single source of information to GHIAL’s management and operation teams
 The Delhi Cargo Services Center selected Siemens to set up a cargo handling equipment for the integrated
cargo complex at the Delhi International Airport (for ~$35 million)
 Besides automation of the center, the deal also includes IT solutions to support the system
The govt. usually forms a JV between its agencies and private sector to manage
Route airports, e.g., DIAL – a JV between GMR Group, Airports Authority of India,
Fraport and Malaysian Airports

Note:
Similarly, the Indian Railways and the Metro Rail Network are also opening up large
opportunities of growth
Indian Railways Future Prospects

• 4th largest railway network in the world
• 4th largest employer in the world (over 1.4 million • Government focus during next five years on five areas: tracks,
employees) bridges, signaling, rolling stock and stations
• Total revenue of Indian Railways is ~$22 billion
Metro Rail • Modernization of 19,000 km of railway tracks
• Currently operating in Delhi, Kolkata and Bangalore
• Construction underway in Mumbai, Jaipur, Chennai and • Plans to invest $147 billion during the five-year plan period
Hyderabad running from 2012 to 2017
• Private players entering into metro projects of Gurgaon and
Hyderabad
Key Government Policy Initiatives

• Expansion of metro transit system to Indian cities like Jaipur, Bhopal, etc.; proposal to set up metro service
Metro Rail Expansion
in all Indian cities with population over 2 million
Railway Infrastructure • Rolling out projects for capacity expansion, electrification of tracks, upgradation of railways, empowering trains
Expansion with GIS, etc.
• Initiating steps to improve railway ticketing portal and make available the tickets from alternate sources
Narrowing the Digital Divide
such as post offices, etc.
Manufacturing Units • Rolling out projects to construct manufacturing plants across India
External Source Funding • The government is sourcing funds for its projects from external agencies such as World Bank and JICA
Source: IBEF, Ministry of Railways, Zinnov Analysis 31

Note:
Key IT investments are being made in the railways sector
• Siemens is providing complete rail solutions from electrification and signaling to SI to

Rapid Metro Rail Gurgaon Ltd.; the deal also includes provisioning of metro coaches
Metro Rail
• Earlier Siemens equipped Delhi Metro with signaling equipment and railway
communications systems
Crew Management – Indian • IBM has helped Indian Railways to implement a biometrics-enabled crew management
Railways system (CMS) to automate the day-to-day management of staffing on board its train
Ticketing System – Indian • CISCO is providing solutions to the Indian Railways for their unreserved ticketing system
Railways (UTS)
Railways Manufacturing • Players like Siemens, due to their diversified focus, are winning contracts for end-to-end
manufacturing plant creation across various parts of India. The IT establishment is
Plants Contracts generally included as a part of these projects
Many railway projects are rolled out by the Central for Railway Players like Cisco are forming partnerships with fellow IT vendors (e.g.
Information Systems (CRIS) HCL) to indirectly compete for government projects in the railway sector

Note:
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Social Infrastructure and Technology in India: Zinnov Management Consulting

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Zinnov Management Consulting

Social Infrastructure and Technology in India

Top Ten Countries by GDP (USD Tr, PPP), 2011

USA China India Japan Germany Russia Brazil UK France Italy

India’s Position in the Global Economy

• India is one of the fastest growing economies in the world

Source: IMF; Planning Commission of India; Zinnov Analysis 2

China 12.0% FY06 FY07 FY08 FY09 FY10 FY11

UK 6.0% Indian IT Market by Customer Segments, FY11,

Social Infrastructure in India

Small and Medium

Training and Skill

The industry comprises of:

Market Size and Future Projections Role of IT in Healthcare

Source: News Articles; Industry Reports; Zinnov Analysis 5

CISCO HealthPresence Solution

Live Use Case

• Future Prospects: RxDx plans to increase deployment of

Source: News Articles; Cisco Website; Zinnov Analysis 6

Key Attributes Key Highlights

Business • Facilitate seamless automated delivery

• Electronic Medical Records on external Benefits

Technology Partner: TCS

Source: www.cio.in; Zinnov Analysis 7

 About 45% of teachers teaching in schools in India are

 61% of schools don’t have access to electricity

 Only 17% of schools have computer

 Only 39 out of every 100 students reach 10th grade

 Dropout rate after elementary education is 44%

 One out of every three students in class 5th cannot

HP - National Council of Educational Research and Training

Objective Solution Fully integrated mobile

computing center downloading them and using

Source: News Articles; Zinnov Analysis 9

Company Profile Services

• Provides IT solutions to government schools through

Source: Company Websites; Zinnov Analysis 10

Educational Establishing connectivity for knowledge and

MPLS4 and NKN

Enabling collaborative research in emerging areas

Present Status and Future Outlook

The National Knowledge Network (NKN) has been established to

Source: Government Websites; Zinnov Analysis`

• Workers are trained on basics and best

• Focus on shop-floor training, machine usage,

• High on effectiveness than classroom/

Source: Primary Interviews, Zinnov Analysis 13

Current Scenario Expected Requirement/ Shortage by 2020

• A housing shortage of 30 million dwelling units

Key Government/ Private Sector Policy and Initiatives

Urban Development Schemes Technology Partnerships Electricity Distribution

Jawaharlal Nehru Urban Renewal R-APDRP: Leveraging IT applications for

Smart Traffic Smart Homes

Source: Zinnov analysis, News articles, Industry reports, Company websites 14

Smart + Connected Communities

6,000 people added • An effort to embed networking and internet

Source: News Articles; Cisco Website; Zinnov Analysis 15

IBM – The Smarter City

• IBM is working with cities and governments on

IBM Smarter Cities Challenge

Source: News Articles; IBM Website; Zinnov Analysis 16

 Siemens won an order from the State Electricity Distribution Company of