1. Welcome to India - A country with limitless potential

2. Topics India – A Consuming Economy India – A Consuming Economy Trends in office products business Trends in office products business Current distribution channel for office products Current distribution channel for office products Current and future potential demand of office products Current and future potential demand of office products Buying behavior in various corporate sectors Buying behavior in various corporate sectors India, the future’s biggest market for office products India, the future’s biggest market for office products

3. Why India – A Consuming Economy ? Rising GDP growth Rising GDP growth Sources: 1900-1990: Angus Madison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001), 2000-2005 Finance Ministry % age

4. Slowdown in Population growth Slowdown in Population growth Sources: 1900-1990: Angus Madison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001) % age

5. Growing Literacy Growing Literacy % age Source: Census of India (2001)

6. Exploding Middle Class Exploding Middle Class Source: The Consuming Class, National Council of Applied Economic Research, 2002 Million

7.  Poverty Decline % age

8. Growing Per Capita Income Growing Per Capita Income Source: World Bank * MGI EUR per annum

9. Growing Productivity Growing Productivity High Growth in Service sector, IT, ITES, Bio Technology, Telecom, Retail High Growth in Service sector, IT, ITES, Bio Technology, Telecom, Retail Annual salaries across the board growing at 15% YoY Annual salaries across the board growing at 15% YoY

10. The Shape of the Economy GDP: 443 billion EUR (2005-06) GDP: 642 Billion EUR (2010-11) 54% 56.6% 20% 15.3% 26%- 28.1% Source – Planning Commission report Service Service Agriculture Agriculture Industry Industry

11. A Billion Buyers Marketplace

12. Trends In OP Business Office Supplies market estimated to be huge in India (6.4bn EUR) Office Supplies market estimated to be huge in India (6.4bn EUR) 95 % market is unorganized growing at a pace of 10% 95 % market is unorganized growing at a pace of 10% 5 % market is organized growing at a pace of 40% per annum 5 % market is organized growing at a pace of 40% per annum Major global brands have entered Indian market Major global brands have entered Indian market

13. Unorganized 95 %

14. Organized Stores 5%

15. Industry estimates the over all market to grow by 15% approx. Industry estimates the over all market to grow by 15% approx. Certain categories are growing at the rate of 30% such as office furniture, ribbon, toner, cartridges, electronics, Computer hardware's Certain categories are growing at the rate of 30% such as office furniture, ribbon, toner, cartridges, electronics, Computer hardware's Average per employee per annum consumption is around 84 EUR of office stationery Average per employee per annum consumption is around 84 EUR of office stationery Dependence on multiple suppliers in current system Dependence on multiple suppliers in current system

16. Gap between MRP and net landing to retailer is as high as 30 to 40 % Gap between MRP and net landing to retailer is as high as 30 to 40 % Market operating price keeps fluctuating Market operating price keeps fluctuating Pressure on margins is on the rise Pressure on margins is on the rise Imports are on the rise in key categories Imports are on the rise in key categories Major Indian manufacturers are entering into organized retail Major Indian manufacturers are entering into organized retail

17. High brand loyalty High brand loyalty 9 tier 1 cities are having 70 to 80 % consumption of office products, Greater Mumbai, Delhi NCR, Banglore, Chennai, Hyderabad, Kolkata, Ahmedabad, Pune, Chandigarh 9 tier 1 cities are having 70 to 80 % consumption of office products, Greater Mumbai, Delhi NCR, Banglore, Chennai, Hyderabad, Kolkata, Ahmedabad, Pune, Chandigarh Organized suppliers are offering proper replacement policy to satisfy customers Organized suppliers are offering proper replacement policy to satisfy customers Key to success in OP business is strong supply chain management Key to success in OP business is strong supply chain management

18. Distribution Channel In OP Complex Complex Manufacturer Manufacturer Importer Importer Large Format Retail Chain Large Format Retail Chain Regional Distributor Regional Distributor Town Distributor Town Distributor Wholesaler Wholesaler Retailer Retailer

19. MNC/IND Mfg Town Distributor 8% Retailer 30% Distributor 8% Retail Chain 50% Office Products Importers Regional Distributor 4% End Consumer Traditional Trade Modern Trade Retailer 30% Whole Saler8% Large Retail Chain 40 to 50% * Margin in percentage of MRP Wholesaler 8%

20. Current & Future Potential Demand Current OP market is estimated to be 6.4 billion EUR Current OP market is estimated to be 6.4 billion EUR Current Growth 15% Current Growth 15% Broad categories Broad categories  Office stationary  Electronics  Office furniture  Business service

21. Sub categories & contribution

22. Notebook PC market growing much faster then desktop Notebook PC market growing much faster then desktop SOHO sector contributing to notebook growth SOHO sector contributing to notebook growth Portability rather then mobility number 1 reason for sustained growth Portability rather then mobility number 1 reason for sustained growth Desktop future growth likely to come from SMB enterprises Desktop future growth likely to come from SMB enterprises HP is the market leader with 21.6% market share followed by HCL at 12.3% & Lenovo at 10.3% HP is the market leader with 21.6% market share followed by HCL at 12.3% & Lenovo at 10.3% PC Hardware

23. Market estimate 0.38bn EUR Market estimate 0.38bn EUR Year on year growth 30 % Year on year growth 30 % HP has the highest market share HP has the highest market share HP has 1000 original cartridge stores HP has 1000 original cartridge stores Remanufacturing and Recycling industry largely unorganized and fragmented Remanufacturing and Recycling industry largely unorganized and fragmented Cartridge world has entered the market Cartridge world has entered the market Toners, Ribbon & Ink Cartridges

24. Office Furniture Market estimate 1bn EUR (approx) Market estimate 1bn EUR (approx) YoY growth – 30% YoY growth – 30% India tops in furniture imports India tops in furniture imports Import duty rationalized Import duty rationalized Growing demand of office space Growing demand of office space

25. OP market future projections Billion EUR

26. Office Products Buying Behavior Buying Behavior Small Organization Medium organization Large Organization

27. Macro Parameters Rate Contract/ Rates Rate Contract/ Rates Method of buying Method of buying Levels in decision making Levels in decision making Storage space Storage space Personal relationship Personal relationship Service Service Add on benefits Add on benefits Strength of the vendor Strength of the vendor

28. Factors Small Org. Medium Org. Large Org. Mode of Ordering Via Phone Phone/Mail/FaxMail/Fax/Web Inventory Norms No Inventory Backup Stocks Frequency of Orders As & when required Twice in a month Once in a month Delivery Time 1 hour 24 hours 2 to 3 days PricingCompetitiveCompetitive Very Competitive Ownership Self interest Self as well as employ Company interest prime Brand Loyalty Very high High High also open for new products Levels in decision makingSingleTwo Various levels

29. Quantum of buying Small quantities Bulk quantities Payment Terms 7 days Needs to be reminded Adhere to credit period 15 to 20 days Adhere to credit period 30 to 45 days Vendor Strength ---- Strong vendors with warehouse Very strong vendors with warehouse Service Expect fast service Expect excellent service Rate Contract ---- 6 months 1 year contract Factors Small Org. Medium Org. Large Org.

30. Why India Will be the Biggest OP Market ? 1.12 bn population 1.12 bn population Youngest nation in the world over 890 million people below 45 years Youngest nation in the world over 890 million people below 45 years Remains young nation beyond 2050 Remains young nation beyond 2050 < 20 years population 442mn currently < 20 years population 442mn currently < 20 years population 479mn by 2050 < 20 years population 479mn by 2050 10 million finishing school, 6 lakhs engineers 3 million graduates per annum 10 million finishing school, 6 lakhs engineers 3 million graduates per annum

31. Literacy likely to hits 100 % in coming years Literacy likely to hits 100 % in coming years English speaking population more then whole Europe English speaking population more then whole Europe Highest working population Highest working population India ranked 1 st in global retail development index India ranked 1 st in global retail development index India is rated among the top 10 FDI destinations India is rated among the top 10 FDI destinations Middle class likely to be 600mn by 2025 (MGI) Middle class likely to be 600mn by 2025 (MGI)

32. One of the fastest growing economy in the world One of the fastest growing economy in the world India projected GDP by 2050 is 44 Trillion EUR India projected GDP by 2050 is 44 Trillion EUR Key sectors contributing to extra ordinary growth will be – Telecom, IT, ITES, Biotechnology, Health, Education, Insurance, Banking & Retail Key sectors contributing to extra ordinary growth will be – Telecom, IT, ITES, Biotechnology, Health, Education, Insurance, Banking & Retail Sizeable presence of MNC’S Intel, IBM, Cisco, Motorola, Nokia, Samsung, LG etc. Sizeable presence of MNC’S Intel, IBM, Cisco, Motorola, Nokia, Samsung, LG etc.

33. Come.. explore.. be a part of the great Indian opportunity! Thank you!