Chartered Accountant
Introduction
India’s FMCG sector being the fourth largest contributor to its economy is worth $35 billion. As per Nielsen’s global consumer confidence index (a measure of how people feel about their own finances and their country’s current and future financial positions) India maintains the top spot.
The share of Food and beverages is more than 50 percent share of the FMCG market in India. While the rest of the share in the pie are shared by Personal care products (20 percent), tobacco products (15 percent), and household care products (10 percent).
Problem Faced by Retail and Consumer Industry
The level of competition in Retail and Consumers Industry has increased many folds not only with the emergence of new players but also by the diversification by the existing players. Intensity of competition has affected R&C companies by plugging their ability to grow and maintain profit margins as a result of a deflationary operating environment, market saturation, slowing population growth, and more discerning but less loyal consumers.
This has shifted the strategic focus of the sector toward the expanding consumer markets which offer new opportunities for growth through global sourcing, off-shoring, the development of modern retailing and most importantly taking into account the taste and preferences of the consumers belonging to different sects of society.
Providing Solutions
For R&C companies, SGA offers a strong and reliable network of dedicated industry experts who will provide client specific solutions according to their problem in the following areas of operation including at their strategic level:
Introduction
Manufacturing sector has emerged as one of the high growth sectors in India. Under the visionary program of ‘Make in India’ launched by Prime Minister of India, Mr Narendra Modi, to place India on the world map as largest manufacturing hub and give global recognition to the Indian economy. Government targets to provide at least 10 crore new jobs in this particular sector by 2022. The sector’s GVA at current prices was estimated at US$ 397.14 billion in FY20PE.
Problem Faced
Foregoing analysis shows that India has emerged as the 10th largest Industrialized country in the world showing a promising and sufficient achievement in industrial development during the last five decades. But after being compared with the demography and available potential of the country this development is far from satisfactory. An attempt has been made to highlight some of these problems in the following points:
Providing Solutions
We assist industrial manufacturing companies across India to reduce cost, transform and improve performance and grow. By providing them following strategic and operational guidance we not only help them to overcome existing problems but also to safeguard them from coming ones.
Introduction
The printing industry in India is of significant importance. Currently, It is the biggest and fastest-growing sector within the country with its allied industries like Printing Machinery Manufacturers, Packaging industries, Paper manufacturing, Ink manufacturing, manufactures of raw material and consumables.
The estimated value of the print industry across the country is over 330 billion Indian rupees as of fiscal year 2019. This is expected to surge up to almost 410 billion rupees by fiscal year 2024.
Problems Faced
Providing Solutions
We at SGA are providing industry specific solutions to almost every problem faced by a particular concern operating in the said industry.
Introduction
Under the leadership of Prime Minister of India Shri Narendra Modi emphasis has been laid on Minimum Government and Maximum Governance, Consequently, Public sector organizations are under pressure to deliver more for their citizens, from seamless digital services to policies and programs that address major societal challenges and crisis. In order to serve people, we need to be responsive, agile, and able to devise creative solutions to complex problems, many public sector organizations remain hierarchical and bureaucratic. They’re built for another era. To perform on all fronts—from providing basic services to citizens to solving the most pressing societal challenges and responding to crises—governments need to transform how they’re organized and how they operate.
Problem Faced
Providing Solutions
Our government and public services practice focus on providing audit and assurance, tax and consulting services to local, national, and regional government entities. We work together with our clients, looking for practical, workable and innovative solutions that make a difference in solving the pressing challenges that are being faced every day across a range of areas in the public domain, including education, digital government, local government and public finance.
Introduction
The insurance industry of India consists of 57 major insurance companies of which 24 are in Life insurance business and Life Insurance Corporation is the only public sector entity remaining 33 are non-life insurers. Apart from that, there are six public sector insurers in non- life insurer segment of the market. Agents (individual and corporate), brokers, surveyors and third-party administrators servicing health insurance claims are other stakeholders in the Indian Insurance Market.
Government’s initiative of insuring the uninsured has gradually pushed insurance penetration in the country and proliferation of insurance schemes. Gross direct premiums reached US$ 13.66 billion in FY20 (up to September 2019) from non-life insurers in India, Gross direct premiums reached Rs 410.71 billion (US$ 5.87 billion), showing a year-on-year growth rate of 14.47 per cent.
Problems Faced
The transition of the insurance industry in India from a public monopoly to a competitive environment, now with the entry of large private players presents very interesting challenges, both to the new players and to the customer. The benchmark of success of organization is not only determined by the rate of return but also by the quality of services like settlement of claim either for life insurance or for general insurance, return on investment, corporate governance etc. Even though LIC has done commendable work, it is not immune from the changing market equations of the developing economy and there is still a great deal of scope for bringing in innovative products and distribution channels to tap insurance market.
Providing Solutions
We at SGA have benefitted our Clients to Insurance which is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of the advantages as an investment option as well. Insurance products yield more compared to regular investment options and this is besides the added incentives offered by insurers. At the same time borrowing from small scale Insurance companies are also a viable fund-raising option rather than borrowing from available and established Lenders.
Introduction
As per the Reserve Bank of India (RBI), India’s banking and money market sector is sufficiently capitalised and well-regulated. The financial and economic conditions prevailing in the country are far better to any other country in the world.
Indian banking industry has recently witnessed the roll out of innovative and significant changes in banking models like payments and small finance banks. RBI’s new measures may go a long way in helping the restructuring of the domestic banking industry.
During FY16-FY20, credit off-take grew at a CAGR of 13.93 per cent. As of FY20, total credit extended surged to US$ 1,936.29 billion.
During FY16-FY20, deposits grew at a CAGR of 6.81 per cent and reached US$ 1.90 trillion by FY20. Credit to non-food industries increased 3.3 per cent y-o-y, reaching US$ 1.26 trillion on February 28, 2020 and US$ 1.42 trillion on March 13, 2020.
Problems Faced
The biggest risk to India’s banks is the rise in bad loans. The slowdown in the economy in the last few years led to a rise in bad loans or non-performing assets (NPAs).
Public-sector banks are seeing more employees retire these days. So, younger employees are replacing the elder, more-experienced employees.
In the past few years, many banks have tried to delay setting aside money as provisions (for future bad loans).
In а closely held company, the shareholders are adequately protected against takeover as the number of shareholders is few and the shareholders’ agreements impose restrictions on transfer.
Competition for financial service clients has never been fiercer. While brand loyalty may not be dead, it is definitely on life support.
Providing Solutions
We put innovation at the centre of everything we do and help organizations future- proof their businesses by developing capabilities to penetrate this competitive sector by providing following services:
Introduction
The hospitality industry in India is diverse and includes everything from hotels and other accommodation types, through to restaurants, bars, travel agents and tour operators. In India it operates in a complex environment with the presence of old system of working and new digitised platform of PAN India presence
The hospitality industry is extremely competitive, and it is important for businesses operating within it to keep up with the latest trends, in order to avoid being left behind. Furthermore, remaining updated with the wider industry throughout the world is one of the ways owners can help to ensure their business is delivering an excellent customer experience.
Problems Faced
Providing Solutions
We at SGA with experience across a range of sectors–including hotels and resorts, restaurants and foodservice–we offer the strategic, operational, and IT solutions for our clients to be confident in the delivery of a premium customer experience.
Introduction
There is a strong two-way relationship between economic development and energy consumption.
On one hand, growth of an economy, with its global competitiveness, is determined by the availability of cost-effective and environmentally benign energy sources, and on the other hand, the level of economic development has been observed to be reliant on the energy demand
India’s energy requirements have grown significantly since market reforms were initiated by the Government of India in the 1990s. Energy sector reforms, capacity addition and improvement in existing infrastructure are the government’s primary focus areas as energy is a key necessity for meeting the country’s high economic growth expectations.
Problems Faced
The challenges facing utility companies around the globe include increased competition, limited government subsidies, stricter CO2 regulations, customer churn and technological disruption.
To remain competitive over the next decade, utilities will need to make significant investments and have focused efforts to renew and expand their generation capacity, improve operational efficiency and retain and expand their customer base. Decisions will require tough choices due to several new realities, including:
Providing Solutions
Our energy consultants help enhance performance across the industry value chain, We also work with clients to strengthen key capabilities, drawing on our experience to optimize the organization and improve operational performance by providing following services:
Introduction
An Asset Management Company, more known as AMC, is a company that manages different forms of funds of retail clients and invests it in different areas in order to enhance the returns on funds. The funds are invested in stocks, bonds, mutual funds and property. These days Asset Management companies are more known as asset managers or money managers. Such companies help in diversifying investments in different areas.
An Asset Management Company has asset managers who will evaluate the framework of the investment that has to be made. After evaluating this framework of investment, they would do market research and suggest possible investment options. Based on this, they would go ahead with the investment strategy.
Problems Faced
Providing Solutions
We at SGA provide a one stop solution for the prospective investor that will enable them to concentrate their expertise and knowledge to their main job while entrusting us with the followings:
Introduction
The Building and Construction industry in India consists of the Real estate as well as the Urban development segment. The Real estate segment covers residential, office, retail, hotels and leisure parks, among others. While Urban development segment broadly consists of sub-segments such as Water supply, Sanitation, Urban transport, Schools, and Healthcare.
The Construction industry in terms of value is expected to record a CAGR of 15.7% to reach $ 738.5 bn by 2022.
The Construction industry in India is expected to grow at 5.6% during 2016-20, compared to 2.9% during 2011-15. The activities that registered the highest growth include export cargo (10%), highway construction/widening (9.8%), power generation (6.6%), import cargo (5.8%) and cargo at major ports (5.3%).
Problems Faced
If you run a business in the building and construction industry, you need to know the relevant legislation, licences and permits, and other business requirements.
State or territory governments manage the licenses and permits for the building and construction industry.
The building and construction industry have specific Goods and Service Tax (GST) measures.
Security of payment laws apply to building and construction contractors in most states and territories.
Simple steps can help you to prevent disputes and unpaid debts by your creditors.
Providing Solutions
We at SGA having, a vast experience of working with leading players of the Building and Constructions Industry, will provide client specific solutions for the problems faced by them in any of their operations area or be at its strategic planning level.
Introduction
Exponential growth of metropolises and with the increased emphasis of Government on building smart city or developing existing cities as a Smart City has led to great demand for new roads, flyovers, pipelines, power plants, ports, airports, schools, hospitals, housing sewers, water recycling facilities, and other vital infrastructure. We are facing a challenge of planning, building, and maintaining this infrastructure.
Problems Faced
Most of the players in this particular industry faces the following issues due to the very nature of Industry they are operating in
Providing Solutions
Whether delivering a new railway, developing a mine or acquiring a stake in a pipeline, investing in infrastructure assets and other large capital projects represents a major investment and a complex challenge.
Optimizing the return and outcomes throughout the lifecycle of an asset takes a highly skilled and experienced team of specialists.
We can lighten their burden by helping them with the following problems:
Introduction
The TME industry is going through an important transition phase characterized by dynamic trends. With the growing popularity of OTT and entry of Global biggies in India market either directly or with Joint Ventures. These new players have entered the market with disruptive offerings, competing directly with the incumbents. Telecom and media companies reacted with an increase in merger and acquisition activity, creating bigger conglomerates.
This year, we saw telecom-media-technology (TMT) convergence take centre stage and the emergence of new media ecosystems. This has the potential to significantly change how media is created, distributed and consumed and media companies need to take a relook at their strategies and business models to successfully operate and thrive in the new paradigm.
Problems Faced
TME companies are facing two kinds of challenges. On one hand, revenue growth is slowing down because of increased competition. Companies are trying to react through growth via acquisition, as previously mentioned, and through expansion to new businesses. On the other hand, costs need to be contained to maintain adequate levels of profitability. This means that TME companies need to streamline their operations and make them as efficient as possible, which includes ensuring a positive customer experience. Retaining a customer is far less expensive than winning a new one. Required investments in new technologies contribute to the surge of costs
Providing Solutions
We being a catalyst for our Clients not only help them to tap these opportunities but also enable them to extract the most out of these by providing them with:
Introduction
Forest products represent a variety of cellulosic (wood-based) materials harvested from forests, and include paper, wood pulp, lumber, sawmill products, forest-derived millwork products, and livestock feed. Generally speaking, forest products and paper are all derived from wood or woody plant matter.
In India, companies use 46 per cent raw material from recovered paper, 29 per cent from agro residue like bagasse, straw etc and 29 per cent from plantation wood
Problems Faced
Though non-timber forest products, edible fruits and nuts, fungi, medicinal herbs, and other natural products, are collected in an ecologically, economically, and socially sustainable matter, there are huge pressures on timber-based forest products. Deforestation and global warming, among other environmental concerns, have questioned the sustainability and availability of forest products.
Providing Solutions
SGA’s Forest, Paper & Packaging (FP&P) team has developed an in-depth understanding of the interplay among marketplace issues within industry and delivers this insight to industry leaders. We offer a broad range of solutions as FP&P companies address issues and challenges.
Introduction
India is the fourth-largest automotive industry in the world. India’s annual production of automobiles has been 29.08 million vehicles in 2018 as against 25.33 million in 2017, registering a growth of about 14.8%.
India has envisioned to become world’s third-largest passenger vehicle market by 2021. In FY 2018-19, sale of passenger vehicles has increased by 2.70%, two-wheeler by 4.86% and three-wheeler by 10.27% as compared to FY 2017-18.
In April-March 2019, overall automobile exports grew by 14.50%. The overall Commercial Vehicles segment registered a growth of 17.55% in April- March 2019.
Problems Faced
Entrepreneurs in the automotive manufacturing industry are confronted by many challenges. With changes in government regulations, altering world economy, relative prices and market dynamics it becomes difficult to adopt a strategic planning for the automotive business.
Profitability and Cash Flow: Unrealistic cost structures came out in the open during the downturn and companies have now learnt to keep costs low even in small volume sales.
Achieving Differentiation: Maintaining a unique image by differentiation is an uphill task faced by all players where it doesn’t take much time to convert a product into commodity.
Globally competitive landscape: OEMs are facing pressure in reorganizing their value chain suitable for global sourcing and delivery due to very different cultures and consumer preferences
Environment for Innovation: Evolving environmental concern, changing customer preferences and global uncertainty require an environment of change and capability to implement change faster to bring new products to market.
Providing Solutions
SGA expertise in tackling issues related to growth strategies sustainability and operational efficiency has made it suitably positioned to deliver tangible value to its clients in dealing with cost pressures by providing them following services:
Introduction
Healthcare industry in India comprises of hospitals, medical devices, clinical trials outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well as private players.
By 2020, India is expected to rank amongst the top 3 healthcare markets in terms of incremental growth.
Problems Faced
Providing Solutions
We at SGA have a team dedicated to this particular industry or sector which will provide client specific solutions on any of the matters related to the industry with utmost professionalism.
Introduction
From a market size of USD 12.6 billion in 2009, the Indian pharmaceutical market will grow to USD 55 billion by 2020, with the potential to reach USD 70 billion in an aggressive growth scenario.
India is the largest provider of generic drugs globally. Indian pharmaceutical sector supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in the UK.
Indian pharmaceutical sector is expected to grow to US$ 100 billion, while medical device market is expected to grow US$ 25 billion by 2025. Pharmaceuticals export from India stood at US$ 20.70 billion in FY20.
Problems Faced
Providing Solutions
At SGA we provide solutions to almost all the problems arising in day to day functioning as well as at strategic level after considering the views of known personalities of the industry and issues faced by the business partners.
Introduction
Information Technology sector in India is an industry consisting of two major components: IT services and business process outsourcing (BPO). The contribution of IT sector to India’s GDP has increased from 1.2% in 1998 to 7.7% in 2017. According to NASSCOM, the aggregated revenues of this particular sector is of US$180 billion in 2019, with revenue from exports is approximately US$99 billion and domestic revenue is approximately US$48 billion, growing at a rate of over 13%. As of 2020, India’s IT Industries employs around 4.36 million people. The United States is the largest export destination and accounts for two-thirds of India’s IT services exports.
Problems Faced
As most of the key players of Indian IT industry are having a global presence so they need to maintain their Books that not only satisfies the laws of the land in which they are incorporated but should also satisfy regulatory requirements of other countries in which they are operating.
Being an IT company having international presence is a pre requisite but they will generally face difficulties in operating in different countries with different sets of Tax and Tariff norms.
An IT company of Global presence has to operate according to the rules of the different countries in which they operate.
Providing Solutions
We at SGA bring together our cross-line of service expertise, industry insights and collaborate across our business network to help technology companies achieve their business objectives and overcome challenges.
Introduction
India’s diversified financial sector is progressing through a rapid expansion, both in terms of growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The banking regulator has allowed entry new entities such as payment banks to be created recently, thereby adding to the type of entities operating in the sector. However, financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64 per cent of the total assets held by the financial system.
Problems Faced
The long-held promise of digital technology to transform financial institutions has not been broken. It just hasn’t been fully kept. The digitization of the financial industry was supposed to solve problems. And it has. It has also created some new ones in the process.
Providing Solutions
SGA is a financial services industry specialist provide comprehensive, integrated solutions to the banking & securities, insurance, and investment management sectors. SGA member firms’ breadth of services and industry knowledge allow us to understand each client’s unique business needs irrespective of their size and provide under mentioned services as per their requirement.