257367702-ICICI-global-expansion-strategy.pptx -...

ICICI’S GLOBAL EXPANSION
Ashutosh Kedawat | Krittika Adhikary | Rohit Singh Sahani | Vishal Kedia

Opportunity sizing: Domestic retail market (1/3)
ICICI’s contribution in Housing loans to reach $70 mn in 2006
Domestic Retail (Exhibit 6a)
Year
Base year 2002 2003 2004 2005 2006
Housing Loans
2001 Market size
Market Size ($ bn) 6.38 8.46 11.20 14.85 19.67 26.06
Annual Growth Rate 32.50% 32.50% 32.50% 32.50% 32.50% 32.50%
Incremental Market Size ($ bn) - 2.07 2.75 3.64 4.82 6.39
Share in Incremental Loans 11% 11% 11% 11% 11%
ICICI's Share 3% 3% 3% 3% 3% 3%
ICICI's Loan Size ($ bn) 0.42 0.72 1.12 1.65 2.36
ICICI's Incremental Loans ($ bn) 0.23 0.30 0.40 0.53 0.70
Spread 1.80% 1.80% 1.80% 1.80% 1.80% 1.80%
Fees 4% 4% 4% 4% 4% 4%
Contribution ($ mn) 10.33 16.68 25.09 36.23 50.99 70.55
Assumption:
Annual growth rate assumed to be 32.5%; given to vary between 30-35% in Case

Opportunity sizing: Domestic retail market (2/3)
Contribution from Auto finance will also close in on $50 Mn in 2006
Domestic Retail (Exhibit 6a)
Year
Base year 2002 2003 2004 2005 2006
Auto Finance
Market Size ($ bn) 1.81 2.31 2.94 3.75 4.78 6.10
Annual Growth Rate 27.50% 27.50% 27.50% 27.50% 27.50% 27.50%
Incremental Market Size ($ bn) 0.50 0.63 0.81 1.03 1.31
Share in Incremental Loans 20% 20% 20% 20% 20% 20%
ICICI's Share 16% 16% 16% 16% 16% 16%
ICICI's Loan Size ($ bn) 0.39 0.52 0.68 0.88 1.15
ICICI's Incremental Loans ($bn) 0.10 0.13 0.16 0.21 0.26
Spread 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%
Fees 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%
Contribution ($ mn) 12.79 16.10 21.22 27.76 36.09 46.71
Assumption:
Annual growth rate assumed to be 27.5%; given to vary between 25-30% in Case

Opportunity sizing: Domestic retail market (3/3)
Contribution from Credit cards to sky rocket to $170 Mn
Domestic Retail (Exhibit 6a)
Year
Base year 2002 2003 2004 2005 2006
Credit Cards
Market Size (mn cards) 5.00 6.13 7.50 9.19 11.26 13.79
Annual Growth Rate 22.50% 22.50% 22.50% 22.50% 22.50% 22.50%
ICICI's Current Share 5% 5% 5% 5% 5% 5%
Incremental Size (mn) 1.13 1.38 1.69 2.07 2.53
Share in Incremental Size 15% 15% 15% 15% 15% 15%
Number of ICICI cards (mn) 0.42 0.63 0.88 1.19 1.57
Income per card ($) 31.91 31.91 31.91 31.91 31.91 31.91
Contribution ($ mn) 7.98 13.36 19.96 28.04 37.94 50.06
Total Contribution ($ mn) 31.10 46.14 66.27 92.02 125.01 167.32
Assumption:
Annual growth rate assumed to be 22.5%; given to vary between 20-25% in Case