The status of Agribusiness in India has somewhat shifted over the last decade or so. While it is true that Agriculture’s share in India’s GDP has been shrinking over the years to about 17percent today, it still continues to play a significant role, especially in Rural India impacting about 70percent of the population. Performance of this sector has a ripple effect on various other sectors of the economy, as rural India drives nearly 50percent of the demand for various product categories. The Indian government has been taking some positive measures to augment the status – but faced with limited resources and inadequate mechanisms, these measures fall short of what is required. Despite regulatory hurdles the private sector has played its part in supplementing this effort with significant investments in various stages of the agri supply chain.

There are huge opportunities across the value chain – right from improving yields at the farm level to agri-processing, retailing and exports. With rising income levels, consumers are moving up the value chain, demanding better quality products from cereals to fruits and vegetables and other high value products. Such discerning consumers with their growing needs are opening up several new opportunities for the farm sector.

Moving into H2 of 2010, the Indian automotive industry is shifting its focus to sustaining the recovery trajectory, as it faces the prospect of economic stimuli being scaled back or removed. Going forward, India’s light vehicle production is expected to boom on the back of multiple low cost compacts serving the growing domestic and export markets.

Production capacity limitations could dampen this growth story unless additional investments are made across the supply chain in the short term. By and large the Indian automotive industry has recovered earlier than anticipated from the slowdown.

• Strategy development and support implementation for setting up a chain of used car stores executed for a diversified Indian automobile company
• Evaluation of opportunity for Parts Franchisee Network to gain control of the spare retail market done for a leading corporate dealer of parts in India
• Growth strategy for a multi-franchisee car dealership business in Oman
• New opportunity identification for an auto dealership in Sri Lanka
• Concept development and opportunity assessment for a passenger commercial vehicle done for a leading Indian auto major
• Global aftermarket opportunity assessment for a leading Indian auto company

Usage of chemicals pervades human life through food, water, air, clothes and shelter. In the Indian context chemical industry with over USD 60 Billion in size is an important component of the manufacturing sector. There is a significant change in the global landscape of chemical sector due to shift in production centres for commodity as well as intermediate chemicals to developing economies. Companies need to evaluate their competitiveness, develop suitable growth and sourcing strategies.

• Entry strategy into the crowded commodity chemicals market in India for a diversified business house
• Profitability enhancement for a leading fertilizer company in India
• Opportunity assessment and business planning for 3rd and 4th generation derivatives of oil seeds for a global chemicals major
• Business due diligence of a construction chemicals company for a strategic investor
• Market landscaping exercises for plastic packaging products, intermediates and specialty chemicals for Indian and MNC chemicals companies

Education is a key element of a nation’s infrastructure, as important as its roads, ports, bridges and highways. Developed countries across the world have consistently and systematically made large scale investments in their education systems with a view to improving the social and economic health of the nation. If India is to continue on the path of high GDP growth, both government and industry will need to recognize the importance of investing in high quality education systems.

Avalon has worked on assignments across the length and breadth of the education value chain helping clients – educational institutions, corporations looking to foray into the education sector and Private Equity Houses to understand markets, identify opportunities and execute plans to capitalize on these opportunities. We have worked for clients across segments ranging from schools to higher education institutions to vocational training businesses.

Conventional Energy, mainly coal and oil has fuelled the growth of human civilization at least since the industrial revolution. As developing countries like India seek rapid growth, an exponential increase in energy demand is expected. At the same time, concerns about the environment have triggered research and development of various renewable energy sources like Solar, Wind, Geothermal, Biomass etc. Thus energy is today an exciting frontier of rapid development of technology as well as huge investments to cater to the spiralling demand.

Avalon has vast experience in both the conventional and renewable space and across the value chain in power generation, transmission and distribution. We have helped clients enter emerging business areas, enable partnerships, implement innovative concepts like “Energy hub”, as well as advised them on strategy and operational improvement.

Engineering and Capital Goods sector in India is growing at a fast pace. These industries have witnessed an average CAGR of 8.5percent over the last year 2009-10 and are expected to continue on a similar growth track. MSCI India Capital Goods Index is likely to grow at 21percent and 37percent in 2010 and 2011 respectively.

Avalon has experience across the following categories in this sector-

• Capital Goods Airport Equipment, Construction Equipment, etc.
• Machinery Injection Moulding, Industrial Refrigeration etc.
• Components PUF Panels, Heavy Castings, Forgings
• Consumables Tools and Dies, Coolants etc.
• Engineering Services Metal Cladding, Engineering Designing etc.
• Electrical Goods Transformers, Motors, DG Sets

Infrastructure development is the key to the economic growth of a developing economy like India. The inadequacy of our infrastructure is apparent by the state of our urban agglomerations and the capacity shortfall in enabling components such as logistics hubs and energy producing utilities. In our nation’s drive to achieve faster economic growth, the pressure on current infrastructure and the need for further investment cannot be emphasised enough.

Government of India has ear-marked over USD 500 bn in the XI th Five year plan, which has provided continued impetus to the growth of the sector. The Government’s focus on increasing private participation in infrastructure development is expected to lead to an increasing proportion of infrastructure projects being awarded to companies based on the BOT model.