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Environmental Technologies Services Sector Reviews

Synopsis

Definition and scale of sector

Why the sector was chosen in the West Midlands

Environment Sector Review from UKTI

Judicial activism, awareness created by NGOs and media on pollution and environment issues and the resulting public opinion influencing environmental policies & legislative actions are key market drivers.

The total size of the Indian market for environmental sector is estimated at around $2.4 billion.

Current trends in reaping the opportunities (CDM projects and C-emissions trading), arising out of India's commitment to the Kyoto Protocol are driving new and additional opportunities for business.

The attach report gives an overview and characteristics of the Environment market in India with details of opportunities, relevant trade publication/event and useful contacts in the market.

Source: UK Trade and Investment

Power Market in India

Overview

The Power Sector is a priority sector for India. With the reforms in this sector gaining pace, many structural changes are taking place both at the policy and technical levels. With the recent passing of the Electricity Act 2003, generation, transmission and distribution sectors have been thrown open to competition along with the ushering in of a de-regulated regime. This has resulted in opportunities for power sector consultant companies, equipment companies etc. from the UK to have a role play in this field. With the removal of the operational constraints that were there earlier and creation of a level playing field between the government and private companies, more private investments are expected to flow into this area.

Source: UK Trade and Investment

Power Market in India - Opportunities from UKTI

Opportunities

The total market size of the power sector is estimated to be around $30 billion

Opportunities exist in the following sectors:

  1. Captive Generation
  2. Upgradation of T & D Networks
  3. Renovation & Modernisation
  4. Electrical Industry
  5. Fuel Supplies
  6. Control & Instrumentation
  7. Metering

Captive Generation

The captive power market has also been growing to the tune of 2000 MW each year although recently there have been some down turns. Nevertheless, due to factors like rising tariffs for industrial consumers, stabilisation of fuel prices and increased competition in the captive generation market leading to lower capital costs will certainly provide an impetus to the captive generation market. It is estimated that the captive market capacity addition will be between 1500 - 2000 MW over the next two to three years.

Source: UK Trade and Investment

Power Market in India - Doing Business from UKTI

Key Methods of Doing Business

India has an excellent manufacturing base supported by a skilled workforce and technically well-qualified, competent management. It also has the world's largest number of graduate engineers, plentiful labour, a low cost base, and is a world leader in computer programming personnel.

There are opportunities in this sector where UK companies can be successful. However any companies considering doing business in India should bear the following in mind:

Further information on doing business in India can be found at http://www.tradepartner.gov.uk/india A bilateral Double Taxation agreement exist between India and the United Kingdom and further information on this can be found at http://www.inlandrevenue.gov.uk

Source: UK Trade and Investment

Oil & Gas Sector Review from UKTI

India's oil and gas sector is set for a period of expansion. Government of India, (GoI) regulation has eased with many controls being relaxed and an independent regulator being promised for later this year.

The sector in recent years has been characterised by rising consumption of oil products, declining crude production and low reserve accretion. India remains one of the least-explored countries in the world, with a well density among the lowest in the world. With demand for 130 million tonne, India is the third largest oil consumer in Asia, even though on a per capita basis the consumption is a mere 0.1 tonne, the lowest in the region- This makes the prospects of the Indian Oil industry even more exciting

Source: UK Trade and Investment

Mining Sector Review from UKTI

India has a large mining industry. The value of mineral production is about 3.5% of the GDP and 11% of the country's total industrial production. The sector has grown at an average rate of 6% per annum in the recent past.

India produces 89 minerals out of which 4 are fuel minerals, 11 metallic, 52 non-metallic and 22 minor minerals.

India is the third largest producer of hard coal. Major metallic minerals produced in India are iron ore, copper ore, chrome and zinc concentrate, gold, bauxite, manganese ore and lead concentrate. Major non metallic minerals produced in India are limestone, barytes, dolomite, magnesite, kaolin, gypsum, apatite, phosphorite and fluorite.

The mining sector is showing a strong upturn with a rapid growth from the metal and manufacturing sectors. The industry offers a wide range of opportunities:

The attached report gives an overview and characteristics of the mining sector in India, with details of opportunities

Source: UK Trade and Investment

Chemicals Sector Review from UKTI

India has a large chemical industry with a sizeable presence in a number of sub-sectors such as dyes & pigments, organic chemicals, inorganic chemicals, agrochemicals and speciality & performance chemicals. At the current growth rates the Indian chemical market is expected to grow to US$ 60 billion and with increased focus on the speciality and knowledge chemical segments, it has potential to grow to US$ 100 billion by 2010. (Source : KPMG)

India already imports close to 125 million worth of chemicals from the UK and with the promising growth potential projected in the near future, there will be increasing business opportunities for UK chemical companies, especially in the speciality and performance chemical segment.

Source: UK Trade and Investment

Chemicals Sector Opportunities Review from UKTI

Opportunities for UK companies:

There is a discernible world-wide trend to shift polluting industries like dyes, dyes intermediates, pigments and pesticides intermediates from developed countries, where stringent pollution control norms exist, to developing countries. In keeping with this trend India is emerging as the leading exporter of dyes and dyes intermediates, pharmaceutical and pesticides intermediates and many other speciality chemicals. Indian entrepreneurs are looking to upgrade their technology to improve the quality of their products and to make the production processes more environmentally friendly. The trend is to concentrate on speciality and fine chemicals. Indian companies are seeking the latest technologies from overseas in these fields.

Since liberalisation began in the early 1990s, customs duties have gradually come down and Indian customers are buying products from the most cost effective sources. Indian industry imported chemicals and allied products worth Rs. 74,057

Low per capita consumption averages for most products compared with global averages is indicative of the opportunities that exist for foreign companies to invest in the Indian chemical industry.

Development business opportunities span nearly every market in the world (only OECD member states, bar Mexico, Cuba and Korea, are excepted) and cover most sectors.

Aid-funded Business was launched in September 1998 in order to raise greater awareness of UK firms to the substantial opportunities that exist in aid-funded business. It also aims to help firms tap into such business, which emanates from the World Bank, the European Commission, the UN agencies and some bilateral development programmes.

For further details of these opportunities please see the Aid Funded Business web pages.

Source: UK Trade and Investment

Chemicals Sector - Doing Business Review from UKTI

Key methods of doing business:

A new entrant to the Indian market can decide on one of the following options depending on the expected volume of business, the nature of business (whether it's a commodity or a speciality chemical), market potential and its long term strategy for the Indian market.

  1. To appoint a Distributor: For many companies this is the most ideal entry option, which does not require much in the way of resources. But the selection of the right distributor is essential. For most industrial products, one exclusive indenting agent or distributor is the most common arrangement.
  2. Liaison Office: A Liaison office is free to undertake market development activities but is not allowed to transact any business (read - raise invoices). Expenses of these type of offices must be met through inward remittances from the Head Office abroad. The Reserve Bank of India grants approval for the opening such offices.
  3. Branch Office: Foreign companies engaged in manufacturing and trading activities abroad may set up a Branch Office to undertake buying and selling activities in India. This could render technical support and professional consultancy services but it is not allowed to undertake manufacturing activities. Permission from the Reserve Bank of India is required to set up a Branch Office.
  4. Joint Venture / Wholly Owned Subsidiary: A foreign company can commence operations in India through incorporation of a company under the provisions of the Indian companies Act (1956). Foreign equity in such companies can be up to 100% depending on the business plan of the foreign investor and prevailing investment policies of the Government. Although in most cases foreign investments can be approved through the Automatic Approval route by the Reserve Bank of India, some cases that do not meet the standard guidelines require specific approval from the Foreign Investment Promotion Board.

Before signing any agreement, it is advisable for any foreign company to consult a lawyer.

Source: UK Trade and Investment

Metals & Minerals Sector Review from UKTI

Metals & Minerals Industry in India

India has one of the fastest growing metals and minerals sector in the world. The Indian metals sector, especially the steel and aluminium segments have the dual advantage of a fast growing demand from domestic and export markets and easy raw material access in terms of huge high quality iron ore, bauxite and coal reserves.

India's steel production is expected to grow from the current level of 38 million tonnes to 50 million tonnes by 2012 and 100 million tonnes by 2020. The huge capacity addition in the steel sector will require an estimated investment of $16.5bn in the next 7-8 years. Aside domestic companies, several world majors have announced large investment plans. The aluminium sector too is expanding rapidly and all domestic players are new capacities through greenfield projects or brownfield expansion.

The rapid growth in the steel and aluminium sectors has created a range of opportunities for equipment suppliers, technology providers, potential investors and consulting companies in a number of areas.

The attached report gives an overview and characteristics of the metal and minerals sector in India, with details of opportunities, relevant trade publication and trade contacts in the market.

Source: UK Trade and Investment

Metallurgical Process Plant Market in India from UKTI

Overview

Structure Of Indian Steel Industry:

The Indian steel industry is a mix of large and small units. A wide range of technology is used in India to produce steel. In terms of technology engaged the Indian steel Industry can be broadly put in the following categories:

Aluminium Smelters:

In India, there are 7 smelters with total installed capacity of 714,000 tpa. Two plants with a total capacity of 330,000 tpa, belongs to 2 public sector companies (NALCO & BALCO) and the rest are in the private sector.

Steel Plants:

Finished steel is available either from integrated steel plants or secondary producers covering mini/midi steel plants and re-rollers. With the completion of Phase-II modernization programmes of the integrated steel plants and from contribution of mini steel plants and re-rollers, the availability of finished steel has risen to 26.102 million in 2001-02.

Source: UK Trade and Investment

Metallurgical Process Plant Market in India - Doing Business from UKTI

Key Methods of Doing Business

India has an excellent manufacturing base supported by a skilled workforce and technically well-qualified, competent management. It also has the world's largest number of graduate engineers, plentiful labour, a low cost base, and is a world leader in computer programming personnel.

There are opportunities in this sector where UK companies can be successful. However any companies considering doing business in India should bear the following in mind:

Source: UK Trade and Investment

Metallurgical Process Plant Market in India - Opportunities from UKTI

The expansion plans of various Aluminium plants provides various opportunities for UK companies in providing Eco friendly and energy efficient technology in bauxite mining and smelting plants.

While the existing units are being modernised/expanded, a large number of new/ Greenfield steel plants are coming up in the country based on modern, cost effective, state-of-the art technologies. So far 19 new steel plants with a total capacity of approx. 13 million tonnes per annum (MTPA). Of these, 6 units with a total capacity of around of 3.5 million tonnes have already been commissioned. In addition, 4 more units have been partly commissioned and covering a total capacity of approx. 2.9 million tones. Other projects are at various stages of implementation. Increasing role of private sector in total production can be seen from the fact that its share has increased from 51.4% in 1991-92 to approximately 67% in 1998-99. This trend is likely to continue.

Source: UK Trade and Investment

Agriculture Market in India from IBPN

Sector Overview (India)

Agriculture accounts for 22 per cent of the GDP and provides livelihoods to 58 per cent of the country's population. India is the largest producer of milk, fruits, cashew nuts, coconuts and tea in the world, the second largest producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and rice. However, every year about 20 per cent of the crop is lost due to mishandling, spillage, floods, droughts and pests and diseases. In fruits and vegetables the loss is around 30 per cent. Over the years, the agriculture sector has not received as much attention as other sectors in services and manufacturing. The emerging areas in agriculture like horticulture, floriculture, organic farming, genetic engineering, food processing branding and packaging have high potentials of growth. Development of rural infrastructure, rural extension services, agro-based and food processing industries too are required.

Source: Indo British Partnership Network

Environment Market in India from IBPN

Sector Overview (India)
Opportunities
Water Management

Sector Overview (India)

India is an extremely promising market for environmental technologies, equipment and services. Estimated to be around $5.29 billion it has been growing at a rate of around 15% since the early 90's. Main factors responsible for the growth of the market:

India has more than 13,000 units generating hazardous waste and the amount generated is 4.4 million tons per annum. A huge potential exists for using some of this combustible and high calorific value hazardous waste as fuel in certain other industries like cement. Similarly there is tremendous potential from municipal solid waste as well. The average generation of municipal solid waste in India is approximately 1 lakh ton per day from 4378 cities.

Harnessing the business potential of waste management requires cost effective technologies and financial mechanisms that would make the business of waste management viable.

There are several gaps and bottlenecks which act as deterrents for waste management efforts. Some of these are lack of infrastructure for proper treatment and disposal of wastes, proper availability of land for disposal sites, lack of incentives for waste reduction, minimization and utilisation efforts.

Energy & Resource Market in India from IBPM

Sector Overview (India)
Oil & Gas
Power
Mining
Sector Overview (Britain)
Power
Oil & Gas
Mining
Business Opportunities
Additional Information

Sector Overview (India)

India's energy sector comprises power, coal, oil and natural gas, non-conventional and atomic energy. Despite a growing dependence on the modern commercial sources of energy, a significant percentage of India's population still depends on traditional energy resources such as biomass and draught power.

The energy sector in India has received a high priority in the planning process at the macro level, and so also in the allocation of public funds for its growth and R & D (research and development). Its share of funds has risen from 15% in the Third Five-year Plan to 27% in the Tenth Five-year Plan.

In spite of continued efforts, the growth of this sector has not been fast enough to keep pace with the demands for energy services by the individual consuming sectors. With an expected GDP growth of 8% by the end of the Tenth Five-year Plan, the energy demand is expected to grow at 5%. India's incremental energy demand for the next decade is projected to be among the highest in the world spurred by sustained economic growth, rise in income levels, and increased availability of goods and services.

There is a lot of investment opportunity in the Energy Sector in India. Oil& Gas and Power are two areas where government of India is keen to attract foreign investment.

India possesses a rich wealth of mineral resources and a flourishing mining industry producing 84 minerals out of which 4 are fuel minerals, 11 metallic, 49 non metallic and 20 minor minerals. However, there exists considerable scope for augmenting the resource position by further exploration of known deposits and discoveries of new deposits, adopting state-of-the-art technology and modern methods like aerial reconnaissance or geophysical surveys.

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