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Tuesday, September 5, 2017

India Services Sector-some takeways from Deloitte's report

Recently, I stumbled across the below report India Services Sector | A Multi-trillion Dollar Opportunity for Global Symbiotic Growth. While the report proceeds along predictable lines of asking industry status, subsidies and more infrastructure with less taxes(:D), this was quite useful to provide base rate data and some context for India shining. Some views basis that report(Italics is quotes from report, with my comments in normal text with listed company names in bold. Please note, this DOES NOT CONSTITUTE INVESTMENT ADVICE

 Conversion of 75% of the existing single screens into two screen multiplexes can unlock revenues of INR 40-50 billion for the film industry through higher average ticket price, occupancy rate and advertising and food and beverage revenues This is nearly 30% of the present realization. Could be positive for UFO Moviez. 

 In India, fantasy sports is called ‘game of skill’ which is outside the purview of gambling. With rising number of sports enthusiasts, internet penetration and usage of smartphones, India would be an obvious destination and business choice for fantasy sports operators. Nagaland is the only state in India that has issued online gaming licenses for skill games including fantasy sports Will Delta Corp be able to capitalize on this or be disrupted? Already, virtual gaming is big abroad.

The Ministry of Urban Development has come out with a Smart National Common Mobility Card (NCMC) model to enable seamless travel by metros and other transport systems across the country, as well as retail purchases.  If this disrupts wallets, impact on PAYTM

 The government has accorded CGD network the status of public utility. This will allow the CGD system to increase its reach and make it comparatively easier to secure government licences and clearances Increasing competitive threat to Adani Gas Indraprastha Gas, Mahanagar Gas

• The government has in-principle approved the decks for use of LNG as an auto fuel. The draft norms for LNG application in road vehicles will be ready in FY2018 Demand to explode for listed gas players? 

Facility management has become a tool that allows businesses to integrate their noncore activities, focusing attention on core activities...Government regulations including Private Security Agencies (Regulation) Act 2005 and Foreign Direct Investment Policy and Goods and Services Tax is building the foundation for a key segment of this (Facility management) sector. Positive for Teamlease

 As companies increase their workplace wellness expenditures, it generates many related business opportunities, including a proliferating number of third-party providers that supply services, products, and platforms (e.g., screening assessments, diagnostic tests, incentive programs, wearable devices, counselling services, etc.) Positive for listed diagnostics and health insurers

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