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Technology Stocks : Satyam Infoway Ltd-(Nasdaq:SIFY) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (190)	11/17/1999 1:07:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 1471

Net connectivity to spur the domestic market for IT products Spurred primarily by the growth in Internet connectivity, the domestic market for IT products in 1999-2000 is expected to grow at the rate of 40 per cent compared in 30 per cent the previous year. The Internet market in India is growing exponentially. From 2.6 million users by end-1999, the number is expected to go up to 4.8 millions by 2000 end and to 70 millions by December 2003. A Manufacturers' Association of Information Technology - Indian Market Research Bureau survey forecasts the IT products market for 1999-2000 as follows: Desktop PCs - 1,450,000 units (1,027,190 last year), dot matrix printers - 160,000 (187,239), inkjet printers - 217,000(155,825), laser jet printers 55,000 (53,305) and uninterrupted power supply systems - 215,000 (166,124). This is a 40 per cent growth compared to the previous year. In 1998-99, the desktop PCs market grew by nearly 30 per cent. There was a negative growth in the notebooks and the dot matrix printers market. There was a 33 per cent growth in the laser printer market. The PC market structure in 1998-99 was over 1 million units. The unorganized sector constituted 53 per cent of the total PC market. In the organized sector, the domestic manufactured brands stood at 25 per cent and the fully-imported brands at 22 per cent. The grey market is growing at over 50 per cent per annum. The total Indian hardware exports are only about $33.9 billions. IT product exports grew at a rate of 2.6 per cent in 1997-98 and hardware products exports is less than 1 per cent of the country's total exports. Against this, hardware exports out of Singapore were at $186 billions, China over $151 billions. Thailand $59 billions and Malaysia over $87 billions in 1997. In the Philippines, exports of finished IT products grew from $10 millions per month in 1996 to $150 millions per month in 1997 to $1.5 billions in 1998. However, PC volumes in India are expected to be fuelled under the structure proposed by the hardware panel report. Penetration is expected to grow from 3 per 1,000 to 30 per 1,000 by 2005, i.e. the installed base will grow from 3 millions to 30 millions by 2005. And the annual PC market growth rate will be 50 per cent CGAR if the hardware panel report is implemented. It is expected that the grey market will be curbed, as there will be no incentives to operate in that market. Even assuming that at least 20 per cent of the unorganized sector is not grey and pays taxes, the loss of revenue to the Government is still substantial, according to MAIT. The soft-bonded IT unit scheme also proposes incentives for MNCs to manufacture in India so that they have a long-term commitment to the country. Also proposed is reduction in PC prices to fuel domestic market demand and to create a multiplier effect. Source : MI Nov 17, 1999