Indian Laptop Industry

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Strategic management Report
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The Laptop Industry in India

By: Abhishek Dutta
Ayush Palod
Amit Jha
Aditya Patnaik
Debanjan Roy
Kanwardeep Singh
Mukesh Lohan
Pallavi Arora
Ravinder Pal Singh
Shantanu Sinha
Sujay Kher
Somdipto Ghosh

A brief Introduction on the Laptop Industry of India
Computers
One industry which continues to hold its head high even in an environment of industrial slowdown is information technology (IT) - with annual growth rates of software value hovering between 20% and 30%. Growth rates for the industry earlier were as high as 40% to 60%. The soft-ware industry is supported, on the one hand, by the hardware industry - computers, peripherals and components, and on the other, by IT-related services. Software exports have been a source of strength for the economy as a whole and for the hardware segment.

The industry recorded an exponential annual growth rate over 24% in the years from Rs 801 bn in 2001-02 to Rs 2,911 bn in 2007-08. IT and electronics exports at Rs 305 bn in 2000-01 were up 64% from Rs 185 bn in 1999-2000. During the period 2001-02 to 2007-08, exports of software increased from Rs 365 bn in 2001-02 to 1630 bn in 2007-08, recording a CAGR of over 28%.

At the time when Indian PC market is experiencing slowdown, market players are focusing on new growth drive through low price laptops 'notebooks'. While the average price of a PC is Rs 20,000, the price of an entry level notebook starts from Rs 35,000.

With several sectors reeling under the impact of global slowdown, expenditure on IT is ex-pected to decline 3.7% in 2009. A survey by research firm, Gartner says that budgets for IT hardware will bear the brunt of cuts of almost 14.9%.

The advent of the sub-Rs 10,000 PC, it is expected, will help India achieve the 80 mn PC usage target by 2010 from 15 mn right now. Taking into account the annual population growth, this means PC sales as well as penetration in the country will more than double every three years. From 3.77 mn in



References: http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4349 http://www.soc.duke.edu/~s142tm04/laptop1.html http://www.wikipedia.org/wiki/Dell http://www.shoreyconsulting.com

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