Smart Cities & Urban Development

Transcription

1 Cities & Urban Development November 2015 Market Entry Partnerships Growth

2 India Today & Tomorrow India Today India Tomorrow Total population of 1.2 billion Population Growth Rate: 1.28 % 31% of the population living in urban areas Urban areas contribute 60% of the current GDP Total population of 1.4 billion Urban population to increase to 590mn 41% of the population living in urban areas Urban area contribution to GDP to be ~75% India ranks 135 among 182 countries in terms of quality of life India s rank may slip further down if the urban infrastructure is not upgraded SMART CITIES & URBAN TRANSFORMATION... NEED OF THE HOUR 100 SMART CITIES Ministry of Urban Development Budget allocation of 140 mn per city SMART PORTS Ministry of Shipping Transformation of 12 Port Cities into Cities by creating world-class port 60 GREEN CITIES Ministry of Urban Development 60 Green Cities Project to focus on creating solar driven infrastructure INDUSTRIAL CORRIDORS Ministry of Commerce & Industry 5 corridors connecting the main cities SMART CITIES Schemes & Projects BILATERAL PROJECTS Singapore/Japan/ Spain Capital City of AP under Singapore Varanasi under Kyoto DDA* Barcelona HARIDAY Ministry of Tourism Budget of 710 mn for infrastructure development of 12 heritage cities NIRMAY GANGA Namami Gange Program Multi-Stakeholder Programme to clean and maintain Ganga river front towns/ cities OTHER NEW CITIES State Driven Projects 7 Cities Project MP Naya Raipur Chattisgarh GIFT Gujarat DDA: Delhi Development Authority 2

3 3 City Model Key Components : Urban Component Governance Economy Living City Environment People Mobility Energy Management grid and meters street lighting Advanced distribution management system with supervisory control Solar energy initiatives Energy-efficient and green buildings Communication Optical fibre connectivity City-wide Wi-Fi connectivity Spaces Building automation Micro infrastructure such as sensor networks Urban heating and cooling systems Advanced HVAC and lighting equipment E- governance and citizen services online municipal services M-governance Participatory government Single-window clearance for businesses Disaster management solutions GIS maps for city departments performance efficiency Integrated operation among various departments Data analysis and insight creation Urban Mobility Intelligent traffic management systems Integrated multi-modal transportation Electric cars Environment sustainable mobility plans Environment Green buildings Green data centres, Pollution control systems, monitoring toxic gas levels Meteorological station network Earthquake early detection Noise urban maps

4 4 City Model Key Components : Social Component Governance Living People Waste management Real-time information of containers and waste bins Automated scheduling of waste collection and disposal City Van roaster management and optimization of resources based on actual requirements Economy Environment Mobility Water management (Water) meters and management Leakage identification and preventive maintenance Water quality monitoring education Digital education schools or colleges Simulation labs and incubation centres Student teacher and parents holistic connectedness hospitals Improved clinical workflows Telemedicine Enhanced patient interactions Certified smart card readers for patient data security Updated healthcare information systems M-healthcare surveillance Surveillance cameras and command centres analytics Situational awareness and analysis Simulation modelling and crime prevention policing Home security systems

5 5 Execution Strategy Phase 1 Analysis & Assessment Assessing city demographics, profile, social and physical infrastructure to support current city requirements and its preparedness to transform into a smart city Phase 2 Consulting External Stakeholder Clear, ambitious and widely shared vision Internal Stakeholders Phase 3 City transformation City planning (master and ICT) Financial models Technical capacity development Prioritisation and implementation planning PPP modelling City operation model PMO for successful execution Successful execution of strategy Delivery of outcomes Assessment for city evolution Reassessment of city vision

6 6 Opportunity Landscape With promising prospects for smart cities in India and an array of benefits for city stakeholders, smart solutions are expected to further drive growth in conventional engineering and design services as well as new services. This is likely to expand the market prospects for global vendors in India and provide a platform for them to export their services. 100 smart cities HRID AY GIFT City NRDA Industry corridors DDA smart city Varanasi - Kyoto Resilient cities Namami Gange Wave City Lavasa Palava energy management water management waste management Urban mobility e-governance and citizen services environment spaces surveillance healthcare education communications Concept Stage Design Stage Execution Stage Yes Partial No

7 7 100 Cities In January 2015, the Ministry of Urban Development (MoUD) announced the mission to roll out 100 smart cities across the country under national priority. These smart cities will leverage innovation and technology for e-governance and the Digital India initiative. Also, they will focus on employment generation, involve citizens in decisionmaking and policy execution, as well as improve the quality of life. Andhra Pradesh Bihar Chattisgarh Gujarat Haryana Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamil Nadu Telangana Uttar Pradesh West Bengal Others Visakhapatnam, Vijaywada Patna Raipur, Durg 69 cities: 54% of GDP Ahmedabad, Surat, Vadodara, Rajkot Gurgaon, Faridabad Jamshedpur, Dhanbad, Ranchi Bengaluru, Mysore, Hubli-Dharwad Kochi, Kozhikode, Malappuram, Thrissur, Kannur, Thiruvananthapuram, Kollam Indore, Bhopal, Jabalpur, Gwalior Mumbai, Pune, Nagpur, Nasik, Vasai, Aurangabad, Solapur, Bhiwandi Bhubaneshwar Ludhiana, Amritsar, Jalandhar Jaipur, Kota, Jodhpur, Bikaner Chennai, Coimbatore, Madurai, Tiruchirapalli, Salem Hyderabad Lucknow, Varanasi, Ghaziabad, Kanpur, Agra, Meerut, Allahabad, Moradabad, Bareilly, Aligarh, Noida, Gorakhpur, Saharanpur Kolkata, Asansol Delhi, Goa, Chandigarh, Pondicherry Agartala Aizawl Dehradun Dispur Gangtok Imphal Itanagar Jammu, Srinagar Kohima Shimla Amaravati Ajmer Badami Dwarka Gaya Mathura Puri Warangal 12 state capitals 8 tourist or religious heritage cities

8 8 India Entry Option India Entry Options Industrial Presence Commercial Presence Licensing Route Single Model Joint Venture Route Multiple Model Own Setup Route Direct Commercial Presence Model For companies that have medium to high end general products and services For companies that have high value added niche products

9 9 Models To Setup Industrial Presence Tentative Roles & Responsibilities Italian Company Indian Partner Complementary Service Portfolio Italian Company Technology and design know-how Project management support Training Marketing, sales Quality Control Indian Partner Sales and marketing, pricing and local inputs Business development in India Sourcing capabilities Local engineering & construction capabilities Extensive Market Knowledge Complimentary service portfolio Local Sourcing & Execution Capabilities Marketing & Sales Capabilities Licensing Joint Venture Target Market Joint Venture NewCo Advantages / Benefits Greenfield initiative will ensure that market objectives are in line with Italian Company s expectations and standards Strong local understanding of market dynamics to continuously adapt to product characteristics and designs Opportunity to leverage the cost advantage and India presence to other other South Asian markets, if desired Challenges Indian partner may seek a substantial role in the overall operations, leading to conflicts between Italian company and the Indian partner Long drawn negotiations to define all aspects of the Joint Venture/Licensing Longer/delays in awarding the projects

10 10 Models To Setup Commercial Presence Single Model Multiple Model Direct Commercial Presence Model Italian HQ Asia/India Manager Italian HQ Asia/India Manager Italian HQ Asia/India Manager Pan India Newco Wholly Owned Indian Subsidiary Director Of Sales Sales Personal Technical Manager Model 1 Model 2 Model 3

11 11 Commercial Presence: Comparative analysis Factors Single Model Multiple Model Direct Commercial Presence Model Geographical Reach Low Moderate High Product Focus & Sales Efficiency Moderate Product Focus Low Sales Efficiency Moderate Product Focus Moderate Sales Efficiency High Product Focus High Sales Efficiency Market Intelligence Nil Low High Future Expansion & Scalability Nil Low High Investment Low Low Relatively High

12 12 Steps For Success In The Indian Market PLANNING FOR TOMORROW SIMPLIFIED PROCESSES SEAMLESS EXECUTION International company should conduct an independent investigation on the Indian market to understand the potential that it offers. Define annual qualitative and quantitative targets for the Indian market. Define a road map and budgeting system to achieve the target by prioritizing on key products/ services, market segments and geographies Setup reporting systems to encourage involvement and share responsibilities. Reporting system should have high element of follow-up and feedback mechanism. Setup internal and external systems and processes to execute sales and after sales support. Clarity in communication and expectation with the distributors. Business aspects such as minimum stock purchase, cost sharing on fairs, definition of consumables vs warranty parts should be clearly defined in the agreement. Rigorous follow up with distributors and market feedback on the products. Continuous study of the market and customizing the product based on market demand.

13 13 USA 1432 K Street NW Washington DC Phone: Fax: ITALY Corso Venezia Milano Phone: Fax: INDIA Fairlink Center Off New Link Road Mumbai Phone: Fax: