The year 2011 started off quite well for me. There were some personal accomplishments, new professional alliances, projects and work to look forward to. But half way down the year, I lost my father suddenly. It was a bolt from the blue, absolutely unexpected. Not that I do not believe in life and death but it was too abrupt and I was totally unprepared, never saw it coming so soon. I felt the earth shifting beneath my feet and everything seemed extremely challenging and tough. A remarkable inner revelation occurred while I was grappling with this tragedy. I realized that since now my protective shield is down, I have only two choices – to remain exposed and get hit or consolidate my position, take stock of what strengths and assets I have and rebuild everything. I realized that I still have rest of my family around, my education, experience, network of acquaintances, friends and well-wishers to bank upon. When our life hits rock bottom, the only way out is towards the top. Pushed in a corner by any kind of adversity, either we have to fight back or we can choose to perish. It is the choices and our attitude which guide the future course of our lives.

The macro-economic scenario has also been something similar this year. The initial pseudo-turnaround gave way and the dark clouds of inflation and recession are looming in the background. But unlike my case where I was unprepared, businesses have seen how bad things can go as recently as 2008 – 2009. Most had learnt their lesson and have become frugal and cautious. The economic trend at the end of this year is quite similar and there are lots of uncertainties around. In these days of slowdown, sky-rocketing costs and low investor confidence, some sectors are still resilient and are promising enough to remain focused on or to invest in. These sectors are not gravity-defying areas but highly grounded, essential and reasonably contemporary businesses with tremendous growth potential and market size to fit many. In this article, I will focus briefly on few such sectors which hold fair promises as sustainable investment options for entrepreneurs in the coming years.   

 Creating Innovative Services

A major part of Indian GDP is attributed to the service sector. This is in sharp contrast to China whose GDP is strongly driven by the sheer force of its manufacturing drive. Keeping this comparison and its merits (and demerits) aside, growing India and its aspiring population ensures that there is a huge scope and market for innovative services however large or small they might be. India also has a growing rural and urban work-force which can be harnessed for various kinds of service – related business. I will not go into the domain of services for industries which is well-established and has a demonstrated track record.    

There is a growing demand for innovative services aimed at families and individuals. There are many compelling factors. The reason why services have good scope is because work environment is becoming demanding each day and equally stressful. If salaries are good, the commitment in terms of hours is equally high. Add to that the commute factor which is a struggle even in smaller cities. If purchasing power is on the rise in the economic sphere, then on the social front families are steadily shifting to nuclear pattern.

Thus, these factors are pushing into the forefront many business opportunities for micro and small level which may not have nation-wide appeal but will have demand in specific cities. This will be large enough for many enterprises to co-exist and remain in the black.

Bill payment, taxi services, day care centers, security companies, old age homes, housekeeping enterprises and facilities management, financial services for retail customers, home delivery of food and provisions, hobby classes, travel services are few examples which have been in existence and still hold appeal for the future. The differentiating factor would be reliability, quality and personal service.

For example, earlier we had Meru cabs, now many more have mushroomed and doing quite well. Home delivery of food has entire spectrum of providers like local restaurants to home-cooked meals by enterprising ladies who run the business from their house. There is a latent demand for many ideas; all that is needed is to be perceptive enough to identify it.   

Flight of the Food Firms

Food is today a serious business. India is considered as the second largest producer of food in the world. A large part of rural India is still dependent on agriculture and allied businesses as their mainstay. The domestic food market in India is supposed to reach ~ USD 260 by the year 2015 based on the current trends.

Food processing and sales both domestically and as exports is on the roll. A short stroll through any store like Star Bazaar, DMart or Big Bazaar will speak volumes of the diversity of offerings in packaged food segment. Food products are being regularly exported. It is heartening to see packets of bhel puri made by Haldiram's with instructions in European languages.

The palate of middle class India is also undergoing a sea of change. Gone are the days of chappati and sabji. People have made smooth transition to pasta, paella or gnocchi. It is very easy to procure broccoli, brussel sprouts or parmesan cheese even at the local kirana stores at times. Fun foods (www.oetker.in) have flooded the market with a whole range of sauces and dips which was unheard of a decade ago. Entire range of food and drink items in packaged form is dotting our shops.



There is equal space for Mother's pickle and any local brand amongst buyers. People are ready to try and embrace new food items and cuisine. Earlier, Chinese food used to be cooked with only dark soy sauce in our homes, now we have various sauces of x number of brands. Oyster sauce is available made of shitake mushrooms to make it edible for vegetarians. There are unending examples today.

Larger retails chains have come out with their own branded products to compete with the established ones. A carton of Kellog's cereals stands next to a similar but cheaper priced carton with the brand name of say Star Bazaar. The quality is hardly discernable to an average price conscious Indian. Even packaged water has so many brands. Have you ever given a thought to the difference between mineral water, tonic water and sparkling water? Next time, read the labels.

Food processing businesses are also giving a steady thrust to packaging sector which has to step up its game to support the growth. Internationally, exporting food and related products is not a child's play. There are established certification standards like HACCP etc which need to be complied with. The challenge in this sector is adoption of technology and percolating the knowledge and skills to the rural and especially the worker's level as buyers and consumers are becoming extremely conscious.

Accessibility and Technology in Education

Education is a lucrative segment today. I had earlier written an entire piece on the opportunities in this sector in SMEWORLD. I stand by my conviction that this sector can become a cash cow for most entrepreneurs. And the best part is there is a huge room and stupendous demand which any one entity cannot fulfill. This sector also has various levels of delivery of goods and services thus creating huge scope for employment.

The investment required to setup ventures in education varies a lot but for any good product especially due to the R&D factor a decent amount of invest is necessary. Many enterprises have started from one end of the spectrum and slowly moved up the value chain. Growth is usually in an organic manner and not big-bang theory. It takes time and effort to build quality, name and fame. It also takes effort to sustain it.

With rising aspiration levels of our countrymen, demand for good institutions, courses, teaching aids and products are steadily increasing. This is not the story of metros but even the Tier II cities. The significant improvement has been the infusion of technology to make learning more enjoyable, enriched and interesting.




A school in Mumbai was in the eye of a storm for directing parents to get Apple iPads which will be used for teaching and dissemination of study material. It is a financial burden on many parents but looking at it from a different angle it seems revolutionary. The need to lug those heavy school bags would become a thing of the past not to mention the use of animation and videos to explain trigonometry or geometry or geography. Students will not be forced to read only one prescribed text book rather their horizon will be broadened with a compilation of study material from various sources. And there are cheaper brands and models of tablets (Akash) to implement this idea.

The most important part of education which will be lucrative for entrepreneurs is increasing the accessibility of education to a larger population at primary, secondary and tertiary levels.

Managing Waste for Environment and Energy

Consumerism and technology does not come without its fair share of downside. The amount of waste churned by us each day is unimaginable. And the way this garbage is collected and disposed by rag pickers or contract workers is appalling.

Waste is broadly categorized into four segments – Municipal, Industrial, Bio-Medical and Electronic Waste. Management of waste is governed by various laws but there is no such law specifically for electronic waste which is very hazardous. Waste needs to be collected, disposed, dissembled and recycled. Waste and garbage can be harmful for people as well as resources like ground water after continuous exposure. The need for proper handling and disposal has become more crucial today than earlier.

 Waste management and conversion of waste to renewable energy is big business abroad especially the developed countries. There are specific rules and regulations of segregating and handling them. India of course is yet to raise herself to that level. Glass, chemicals, plastic all need proper disposal and not blatantly thrown into a dustbin and later dumped in a random landfill. Improper exposure to medical waste can become the source of serious infection which can be communicable.



This area is still under-researched and latent in India. There is huge scope for automation and system – driven garbage and waste disposal. Lot of harmful chemicals can be safely disposed off to protect the environment.

Converting garbage to energy can help make best use of limited resources around us. Though presently, green energy is considered expensive and futuristic, we are really running out of time before the energy problem becomes magnified and unmanageable.

The demand for this sector and solution providers will gain momentum as we move ahead in this decade and beyond. It is definitely worth placing our bets here.

Information, Communication and Technology (ICT) is a Necessity

Some people would write – off this sector outright stating it as being highly over-rated and shallow. Fact of the matter, this sector is more of a necessity than want. Keeping aside large complex database applications, CRM tools, ERP solutions, more fundamental requirements make ICT business profitable and appealing option.

 The huge quantum of data that we are generating needs proper storage, backup, retrieval and security. Antivirus business is no longer in a wish-list; rather it features as one of the top must haves. The advent of smartphones, Android handsets, Internet access has increased the vulnerability of the devices towards malicious content. Social networking has moved away from the domain of personal use to an effective tool for corporate communication and advertising. The medical sphere and its need for stringent compliance have increased the demand for custom-made solutions. Today even a single doctor in an isolated clinic needs a soft database of his/ her patients and their case history. Somewhere it makes a positive appeal to the minds of the patient though it has nothing to do with one's medical skills. But it is helpful for due diligence and compliance. Clinical research and pharmaceutical companies need software solutions for tracking information from start to end. Networking and cheaper connectivity has become more vital than ever. As part of e-governance initiative, many government bodies are shifting towards electronic records, data and return submission as well as acknowledgment and tracking. Nowadays, individuals like us also have to pay our income tax amount online through our bank accounts and file returns online. Thus, even small businesses are compelled to adopt ICT tools to comply if not compete.

 The price of devices like tablets, netbooks, smartphones are coming down and becoming accessible to the masses. The price of telecommunication is also much cheaper. The need for mobile apps and payment solutions have increased and made their presence felt. I am not even touching the veritable issue of content development for media, education and community support.

 This sector is here to stay and grow. The future does not seem clouded rather cloud is the future. 

 New Year, New Beginnings

I still believe that it is manufacturing which is the real economy driver be it MSME or Large enterprise. There is huge demand for manufacturing to cater to infrastructure development, power generation and distribution, construction, logistics etc but we have to figure out ways of better R&D, improved quality and lower costs else other nations in this sub-continent will dominate the market.

The sectors discussed above are not the only ones that look promising but which are sustainable enough for wide range of entrepreneurs and investment figures.

 Though the economic scenario looks bleak at the moment, it will not remain so forever. That is the rule of nature and life. When things will turn around is anybody's guess but let us not make a blanket statement that things are slowing down and becoming challenging. There is too much speculation, hearsay and half-baked knowledge based statements floating around us. It is not the time to speculate and panic. This is the time to sit-up, fasten the seat belts and do some serious introspection of how to make things work and get the “elephant to dance” again.

 By the way, on the personal front, I have made progress in the fourth quarter of this year. I have regained my confidence and strength, renewed my faith in my abilities and have learnt the lesson that life is unpredictable and we have only the present to make a difference. I have taken up newer challenges, converted opportunities to action, to learn, to do more everyday then I have ever done before and to lead a much more fulfilled life. And I am doing my bit to preserve my father's legacy.

Here's wishing everyone

a Happy and Joyous

New Year 2012.