Picking eight names out of thousands of possible contenders is not an easy
job. It becomes challenging especially when those eight (and those thousand
contenders) are companies in a growing economy like India. And, forget not, we
were considering not the long-term potential of the companies, but their action
in the next 12 months as the criterion.
Since we did try that, it is probably apt to briefly articulate what were our
guiding principles. As the name suggests, they are eight companies to watch out
for in 2008. That means these companies are not necessarily the most innovative,
or most well-managed, or most likely to grow faster than others or anything like
that. They may be all that and more, but the primary reason for picking them is:
we believe that they are the companies where most action would happen. Again,
that is a relatively broad word
For a company like Tata Technologies, action could mean buyout or big
customer wins; for a concept start-up like Connectgaia that could mean
successfully selling the concept of its existence; for a company like Zapak, it
could mean pioneering a culture in India. Yes, you may find one underlying
commonality among all these: these are the companies that are in areas that will
be hot in 2008 and these are the ones that will significantly define the trends
in their respective areas in India.
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Sumit Goel is betting big on increasing concerns about energy usage |
Of course, the list is subjective. And we are unequivocal about that. It is
what we at Dataquest have decided after quite a few sessions of brain-storming,
followed by research, followed by brain-storming againtill we arrived at a
complete consensus. If you think we have missed a really deserving company,
which fits the above criteria, we would love to hear from you.
Here are those eight companies presented in no particular order.
Connectgaia.com: Greener Pasture
Indian enterprises have come to realize that being green makes better
business sense as it provides energy efficiency. Connectgaia, launched in May
2007 by specialized IT firm, KLG Systel, was not only a pioneer in telling
people that to minimize energy usage, you must first measure how much energy you
are using as you use (as opposed to after you have used), but even provided a
way by which you can monitor and regulate your energy usage anywhere, any time,
using the Web. And you do not have to be a pro to use it.
In 2008, we expect that the sensitiveness about energy efficiency will become
mainstream and there will be a better appreciation of the idea that Connectgaia
is trying to sell. The company plans to create an intelligent network by
establishing communication with power generation, transmission, and distribution
system.
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Rohit Sharma is determined to make Indians play more games |
We believe there is one challenge that Connectgaia would have to manage.
While in 2007, it kept selling the concept, in less than 12 months it will see a
pull situation. Like the Indian services industry, the challenge will shift from
selling the idea to execution. If it can manage that even moderately (as it has
no serious competition now), it will emerge as a sure winner.
Zapak: Games Indians Play
Zapak was listed by Google India as one of the top ten most searched phrases in
India. Zapaks popularity shows that this is a segment which cannot be ignored
by anyone planning anything around online. Zapaks is a case of belief in the
potential of the opportunity, and doing all that is possible to turn that
opportunity to a viable business.
Zapak, owned by Reliance Anil Dhirubhai Ambani Group, is now creating what it
calls Zapak Zones, gaming cafes, across the country. It is also working on MMOG
(Massively Multiplayer Online Games), which has generated huge interest in the
developed world.
The company is banking on the fact that India has the largest number of under
25-year-olds in the world apart from the fact that Internet penetration is
increasing at a fast pace. The company has much at stake as it intends to spend
about $100 mn over the next 3 years. With its over 5 lakh registered users,
Zapak is also trying to ride the social networking wave through its
www.bigadda.com portal.
The year 2008 will see more action in the space and as a trend-definer in
this segment, Zapak will see a lot of action.
Cranes Software: Statistically Speaking
Those who watched the Gujarat election results unfold must have noticed and
wondered at the ticker of Cranes Software on CNN-IBN news channel. The results
analysis had utilized the analytics expertise of Cranes to sharpen the findings.
Cranes Software, which provides enterprise analytics and engineering simulation
software products and solutions, has been credited with being one of the most
innovative product companies in India.
This is an area that is being looked at seriously by companies in all
segments. We expect a lot of action to happen in this area in both India and
abroad, as media becomes more tech-savvy. Cranes is well positioned to leverage
on its strength, especially in a year that will see quite a few state assembly
elections and possibly general elections in 2009.
Financial Technologies: On the Fast Lane, Literally
Online trading is on the boom in India; right from equities to commodities,
Financial Technologies (FT) has played a small but important role in spurring
this growth. Ever since the launch of its computerized trading platform, ODIN in
the late 80s till the recent launch of Tickerplant Infovending, FT has been at
the forefront of all technology solutions related to all sorts of commodities
exchange.
The company, founded by Jignesh Shah, has managed to make good inroads into
some of the PSU banks in India as well as exchanges outside India. Its biggest
success has been its flagship product suite, ODIN, which is targeted at
securities and commodities exchanges and has managed to grow to 220,000 trading
licenses.
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Devang Narela is helping everyones trade by creating exchanges |
FT, according to is Devang Narella, MD, is right now working on a pilot for
Atom Technologies, the mobile payment platform, and in 2008, he expects a
definitive solution in that space. There have also been talks of a major
acquisition in the new year. Indias first national level power exchange, Indian
Energy Exchange Limited (IEX) for trading electricity power exchange, is
proposed to be set up by FT and Power Trading Corporation of India and has
received approval from the Central Electricity Regulatory Commission (CERC).
The company looks all set to make good use of its domain expertise in 2008.
After all, the company was recognized by World Economic Forum amongst the top
125 Founding Global Growth Company Members at Dalian, China, Summer Davos -
2007; 2008 is beckoning to be an equally interesting time.
We expect FT to expand its portfolio/capability by taking organic/inorganic
route in 2008. Both ways, it will have a lot of action.
Zicom: Sense of Security
Like most other companies in the list, Zicom stands out because of the
conviction with which it is doing what it is: developing a market for its
surveillance products. While no one needs to be convinced about the need for
these products in places such as airports, banks, and such public places, what
sets Zicom apart is its belief that there is a real need for its video phones
among home users. It has not just caught everybodys imagination with its
advertising blitz; it is going all out channeling its products through large
departmental stores.
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Santonu Choudhury, CEO, Consumer Services, Zicom, is going all out to make life a little safer for home users |
From providing CCTV services on suburban trains in Mumbai to coming up with
products like fingerprint door lock, burglar alarm system, the company has
diversified and expanded its operation to thirty cities. Some of the other
innovations include Electronic Gas Leak Sensor.
In the coming year, while the public security systems markets will continue
to grow, we believe Zicom has identified a real opportunity for growth in the
home surveillance market. With new suburbs coming up around most cities in India
with professionals buying homes in these places like never before, Zicom has
identified a real need and has not been deterred by the fact that it has to do a
lot of ground work to make this a real business opportunity.
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Kiran Kulkarni is using IT to provide better infotainment to people |
Geodesic: IT is InfotainmenT
This is one product company in India that has leveraged the Web 2.0
technology in real sense. Mundu has been one of the biggest successes stories in
this arena. It is targeting OEMs, media and publishing, and social networking
sites for its innovative applications it has developed around Mundu platform.
Enhancing the mobile phone users entertainment and collaboration capabilities
by offering applications that enable them. Other Mundu IM applications are aimed
at publishing industry and social networking sites. Its products have good
compatibility with some of the leading names in the IM space. It has also got
into content aggregation and self-service ad management space.
Geodesic came into being in the late nineties in Mumbai at a time when the
Internet ruled supreme, informs Kiran Kulkarni, MD, Geodesic, and every other
corner shop was going online. Geodesic developed an e-commerce engine
hamarashop.com. As time flew and the euphoria faded, the directors realized that
being a straitjacket online company could no longer guarantee success. The
directors went into a huddle, and after much deliberation they decided that the
future spelt products. The company would now focus on creating products that not
only stood out in the Indian marketplace but globally as well. And Mundu was
thus born.
Other Mundu innovations include Mundu Radio, which allows access to digital
Internet Radio stations on mobile phone. Excitements in 2008 could include work
on video and handwriting technology.
Apart from the Mundu suite, Geodesic also made news when it acquired majority
stake in Chandamamaa popular multi lingual monthly magazine for kids and
youngsters. In all probability, Chandamama is all set to go digital, leveraging
Geodesics expertise in the Web and messaging space.
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Patrick McGoldRick, could make Tata Technologies Indias first specialized software giant |
Amit Prasad is riding on the navigation wave |
Tata Technologies: On the Fast Lane, Literally
Yes, Tata Technologies is working for the winning Williams F1 racing team by
developing software for them. But that is not the reason why we have listed Tata
Technologies here. This company, still an arm of Tata Motors, grew significantly
in the last two years by acquiring INCAT. In 2008, it could well become Indias
first specialized IT firm to make it to the Big League.
This IT arm of Tata Motors, through its operating companies INCAT and Tata
Technologies iKS, has emerged as a leading player in providing IT services in
the engineering and design domain, primarily to the manufacturing industry
across twelve countries. The primary verticals for this company are aerospace,
consumer durable, and automotive. It made headlines in 2005, by acquiring the
UK-based INCAT, a company with PLM expertise, for about Rs 400 crore.
Incidentally, INCAT was one of the largest PLM solution providers in the world;
the marriage with Tata Technologies catapulted it into the international big
league. At the same time, this has given INCAT the leverage to tap the
burgeoning domestic market in India.
While helping F1 teams to win races, it is also working on the design of its
parent Tata Motors dream projectthe Rs 1-lakh car. Its relation with TCS,
initiated last year, could mean added forays into the world of F1 as TCS is
servicing both Ferrari and Fiat currently.
SatNav: Sky is the Limit
This year may well be the year of navigation technologies. And, SatNav has
worked hard for this day. Through its products, SatGuide (Car and mobile
navigation systems), SatTtracx (web-based vehicle tracking system), and
roadsofindia.com (Indias first direction portal), SatNav has focused on
creating opportunities for itself (and others) around the navigation space.
And when Indians are finally waking up to the need of a good navigation tool,
SatNav has made it easier for them to make the choice by dropping product prices
to almost half. Today, a GPS receiver can be bought at sub Rs 6,000.
SatNav has taken pioneering steps in this area, but with this opportunity
becoming bigger and bigger, this year will see more players jumping into this
arena. We expect SatNav will work with many of these companiessuch as mobile
service providers, phone vendors, websites, automotive companiesto expand this
space.
Team DQ
maildqindia@cybermedia.co.in