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10 opportunities in services sector

October 14, 2004 10:39 IST

The list of opportunities ready for the taking in the food and other service areas is rather long. Amongst the most interesting ones in the food sector are the following:

MacDonald's and Pizza Hut can be the role models in terms of efficiency of service, hygiene, quality, and overall value but the menu should be "Indian" rather than Indianised version of American food.

Lack of success in the recent past of some of the start-ups only highlights the need for a better conceptualisation and execution of the format, rather than a lack of market opportunity.

Moving beyond the food and looking at other service opportunities, the following stand out (amongst many):

Creating specialised options for high-end tourists from the West offers a tremendous potential, with many segmentation possibilities based on the target market as well as special interests. Role models can be the likes of Abercrombie & Kent.

Yet, the ambient infrastructure, as well as relatively low income levels, requires most of these gadgets to be given for repair unlike the more affluent countries where many faulty appliances/gadgets may just be "written off" by the consumer in view of high cost of repairs.

India's low labour related service costs can provide a cost-effective solution to the millions, while generating good returns on investment for the entrepreneur.

Many of these businesses will need a wide range of documentation-related services that are typically done in-house by larger companies. Kinko's (now a FedEx company) has thrived on this need in the US and other countries. A pan-Indian model can provide excellent opportunities to a few Indian entrepreneurs.

This list, by no means, is not exhaustive but only illustrative of the incredible entrepreneurial opportunity India currently provides in the services sector. What is needed (again) is the ability to think on the obvious.

In many cases, global role models already exist. In others, models have to evolve on the basis of current Indian market needs and preferences. Once again, I hope many of these opportunities would be grabbed by existing Indian business groups as well as new entrepreneurs.

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Arvind Singhal