With a new governmental push towards building smart cities in India, there lies a huge technological and business opportunity. The report takes a detailed look at these.

1. This report is solely for the use of Zinnov Client and Zinnov Personnel. No part of it may be quoted, circulated or reproduced for distribution outside the client organization without prior written approval from Zinnov
Technology Opportunity
in Smart Cities: India
Oct, 2016
1

2. Government of India aims to leverage “Smart Cities” to improve the economy
Note: 1Cities: Areas having population more than 100K | 2Urbanization Rate: % of the total population living in urban areas | Urban area is the region surrounding a city with most inhabitants having non-agricultural jobs
Source: World Bank | IMF | Zinnov Analysis
# of Cities1
300+ 70+ 650+ 500+
Urbanization
Rate2
82% 83% 56% 33%
35 269 146 441Population Density
(Population
/Sq.Km)
Area (Mn Sq. Km)
9.8 0.2 9.6 3.3
GDPPPP(Bn)
Population (Bn)0 2
25
0
UK
India
China
US
Size of bubble indicated
GDP PPP/Population
Infrastructure Overview by Country-2015 India has Weaker GDP PPP Per Capita-2015
2

3. Massive urbanization and plaguing challenges are augmenting the demand for smart cities
Note: 1Urban Population for 500+ cities in India | 2GIS: Geo Spatial Information System
Source: Press Releases | Zinnov Analysis
India is trying
to address its
urban
challenges by
building
Smart Cities
Transportation
Power &
Energy
Water
Sanitation
• 2nd largest road network but ranks 76th
for its quality
• Limited dependency on public
transport
• ~$62 Bn expenditure on crude oil
imports in FY16
• ~18% of total energy output lost in
distribution
• ~80% of sewage directly flows into the
rivers
• ~54% of cultivable land is dependent
on monsoons
• ~76Mn citizens have limited access to
water
• ~7.5% of urban population1 uses open
defecation
Smart Cities will Leverage Technology to Address Challenges
Water
• Analytics: Real time analysis of water
availability patterns
• GIS2: Assessment of water consumption
patterns
Power &
Energy
• Analytics: Predict demand and analyze
operations
• Smart Meters: Reduce theft and pilferage
Transportation
• Smart tolls: Efficiently reduce the queues and
collect user charges
• Smart traffic lights: Regulate traffic based on
real-time traffic conditions
3
Waste
Management
• Maintenance Decision Support Systems:
Provides intelligence on roads and pavements
for repairs
• Analytics: Projections about capacity
management

4. “Smart City” program is supported by various other government initiatives for faster results
• 100 Smart cities being developed across
6-industrial corridors
• 90 Mn new jobs to be created by 2022
• 16 Technology Business Incubators being
planned in smart cities
• 7 Research centers and 13 startup
centers being built in smart cities
• Leverage GIS1, Big Data/Analytics to
deliver direct benefit transfer schemes
• 500Mn+Broadband users by 2020
• $20 Bn investment in Metro rail projects
by 2020
• $10.5 Bn investment for 534Km
Mumbai-Ahmedabad high speed rail
project
Transportation
• $26 Bn investment by Power Grid
Corporation of India by 2020
• 8 Smart Grid projects being
implemented
Power & Energy
Note: 1Geographical Information System
Source: Press Releases | Zinnov Analysis | USD to INR conversion: $1 = 65INR 4

5. 100 potential cities have been identified based on the recommendations from the States/UTs
Jammu & Kashmir*
1
Chandigarh 1
Punjab
Amritsar, Jalandhar, Ludhiana
3
Haryana
Faridabad, Karnal
2
New Delhi
Municipal
Corporation
1
Rajasthan
Ajmer, Jaipur, Kota, Udaipur
4
Madhya Pradesh
Bhopal, Gwalior, Indore,
Jabalpur, Sagar, Satna, Ujjain
7
Gujarat
Ahmedabad, Dahod,
Gandhinagar, Rajkot, Surat,
Vadodara
6
Daman & Diu
Diu
1
Dadra & Nagar Haveli
Silvassa
1
Maharashtra
Amravati, Aurangabad, Thane,
Greater Mumbai, Kalyan-
Dombivali, Nagpur, Nashik,
Navi Mumbai, Pune, Solapur
10
Goa
Panaji
1
Lakshadweep
Kavarrati
1 Tamil Nadu
Chennai, Coimbatore, Dindigul, Erode,
Madurai, Salem, Thanjavur, Vellore,
Thoothukudi, Tiruchirapalli,
Tirunelveli, Tiruppur
12
Kerala
Kochi
1
Karnataka
Belagavi, Davanegere,
Hubballi-Dharwad, Mangaluru,
Shivamogga, Tumakuru
6
Himachal Pradesh
Dharamshala1
Uttarakhand
Dehradun
1
Uttar Pradesh*
Agra, Aligarh, Allahabad, Bareilly, Ghaziabad, Jhansi, Kanpur,
Lucknow, Moradabad, Rampur, Saharanpur, Varanasi
13
Bihar
Bhagalpur, Biharsharif, Muzaffarpur
3
Sikkim
Namchi
1
Arunachal Pradesh
Pasighat
1
Assam
Guwahati1
Manipur
Imphal1
Tripura
Agartala
1
Meghalaya
Shilong
1
Jharkhand
Ranchi
1
Odisha
Bhubaneshwar, Raurkela
2
Andaman & Nicobar Islands
Port Blair
1
Chhattisgarh
Bilaspur, Raipur
2
Andhra Pradesh
Kakinada, Tirupati, Vishakhapatnam
3
Puducherry
Oulgaret
1 Telangana
Greater Hyderabad,
Greater Warangal
2
Nagaland
Kohima
1
Mizoram
Aizawl
1
West Bengal
Bidhannagar, Durgapur,
Haldia, New Town
Kolkata
4
Note: *1 city each in UP and J&K to be decided later on by the Government of India | Madhya Pradesh is considered to be a part of West Region
Source: Press Releases | Zinnov Analysis
# Shortlisted Smart Cities in that State
Colour represents Region of the State
5

6. Current Persona of 100 Shortlisted Cities
Contribution to India’s GDP
Population of 100 cities
Tier-III1 cities
Cities having population over 1 Mn
Cities from UP, Tamil Nadu & Maharashtra
$190
Bn
125
Mn
41
65
35
Shortlisted cities are a mix of urban, semi-urban, business and financial hotspots
Note: 1Definition of City Categories by Population : Tier I – >5 Mn, Tier II – 1-5 Mn, Tier III - <1 Mn
Source: Press Releases | Zinnov Analysis | USD to INR conversion: $1 = 65INR 6

7. Key Components of Smart City
Global MNCs, Indian enterprises and startups have capabilities to address the rising demand
Power
Transportation
Video Surveillance
Traffic Management
Water & Wastage
Start-upsLarge Enterprises
*Illustrative List of Companies
Source: Press Releases | Zinnov Analysis 7
Global Technology MNCs
Smart Buildings

8. Total Spending (E)
(Across 100 Smart Cities during 2015-
2020)
$31 Bn investment would be required to build 100 cities sustainable and future ready
33
%
22
%
19
%
13
%
2%
11
%
Transportation Power Water & Sewage Governance Waste Management Others
100-120 100-120 130-150
30-50 20-30
140-160
430-450
240-260 170-190
170-190
3-5
30-40
Pan-city
ABD
3
530-570
340-380
300-340
200-240
23-35
160-200
%age of Total
Technology Spend
Technology
Spend by
Key Categories
($ Mn)
Note: ABD : Replacing the existing built-up portion of a city and enabling co-creation of a new layout ; Pan-city : Development and implementation of smart solutions to the existing city-wide infrastructure |1Cloud includes Public, Private &
Hybrid | 2Governance include Infrastructure, Security & Surveillance, Traffic Management etc. | 3Others include Education, Healthcare, Cross functional elements such as Thematic Mapping etc. | E denotes estimated values
Source: Analysis based on Proposals of Top 20 Smart Cities | Press Releases | Zinnov Analysis
$31 Bn
$800-900
Mn
Cloud based service delivery platforms for E-Governance
initiatives
20% of Indian smart city solutions will be IoT-enabled
by 2020
Cloud based Analytics solutions for smart grids and tax
collection systems
Technology Spend
Cloud1 Spend
2
Area Based Development
(ABD)
Pan-city
60-70%
30-40%
$1.5-2
Bn70-75%
25-30%
8

9. West
# Smart Cities: 30
Population1: 62 Mn (49%)
Total Spend: 10,000-11,000
(36%)
Technology Spend: 540-590
(34%)
South
# Smart Cities: 27
Population: 28 Mn (22%)
Total Spend: 7,200-7,500 (24%)
Technology Spend: 430-470
(27%)
East
# Smart Cities: 19
Population: 8 Mn (7%)
Total Spend: 4,200-4,400 (14%)
Technology Spend: 200-250
(14%)
# Smart Cities: 24
Population: 27 Mn (22%)
Total Spend: 8,000-8,200 (26%)
Technology Spend: 380-430 (25%)
North
Spending Split By Region ($ Mn)
Note: 1Population of Smart Cities in that State
Source: Press Releases | Zinnov Analysis
Of total & technology
spending will be driven by
UP, Maharashtra & Tamil
Nadu
~44%
Of total technology
spending will be on tier-
III cities>60%
Of total spending will be
on tier II and III cities91%
Tier-III cities will witness maximum spending for transforming into a Smart City
(%)Represents share in Total Spend Value
9

10. Low
High
Technology
Spend
HighLow Total Spend
Total Spend vs. Technology Spend for Smart Cities
States in West India are expected to lead the overall spend followed by states in South India
A&N Islands
Arunachal Pradesh
Assam
Andhra PradeshBihar
Chandigarh
Dadar & Nagar Haveli
Daman & Diu
New Delhi
Goa
Chhattisgarh
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Gujarat
Karnataka
Kerala
Lakshadweep
Madhya Pradesh Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Puducherry
Punjab
Rajasthan
Sikkim
Tamil Nadu
West Bengal
Telangana
Tripura
Uttar Pradesh
Uttarakhand
Source: Press Releases | Zinnov Analysis
North
West
South
East
# States/UTs : 13
# Smart Cities : 75
Total Spend : $26 Bn
Technology Spend : $1.4 Bn
Leader
Zone
# States/UTs : 17
# Smart Cities : 19
Total Spend : $4.1 Bn
Technology Spend : $218 Mn
Contenders
Zone
10
Bubble Size indicates Number of
Smart Cities in the respective State

11. Additional contribution of
shortlisted cities in the GDP after
transformation
Real-Estate industry’s
contribution to Indian GDP
by 2020 from 6% in 2015
Source: Press Releases | Zinnov Analysis
Contribution of Smart Cities in
urban population of India
(70% in the economy) by 2020
Smart Cities will have positive impact across key development areas
Number of jobs created due to
Smart City initiative, a rise of
10-15% in the employment
Savings in traffic congestion with
the help of smarter technology
Reduction in energy consumption
due to smarter infrastructure,
15% saving in water losses
Impact of 100 Smart Cities by 2020
11

12. Entity
Role
Initiative
2
Note: 1Technology Vendors include Product Vendors, System Integrators, Network Service Providers & Managed Service Providers | 2Illustrative initiatives
Source: Press Releases | Zinnov Analysis
Participating entities are adopting various measures to win “Smart City” contracts
Cross-Border
Collaborations
Cross-border government
agencies that are willing to
invest in upcoming Smart
City projects
India, Japan signed MoU to
develop Varanasi into a
Smart City
Technology
Vendors1
Partnering with government
to execute Smart City
projects
Cisco and IL&FS
collaborated to utilize IoT
to develop digital solutions
for India's infrastructure
and Smart Cities
Real Estate
Developers
Building Smart Cities in a
defined premise
In Pallava project, Lodha
builders partnered with
GE for treatment of waste
water, to be re-used in
flushing, landscaping, etc.
Government
owned Bodies
Government forms bodies
such as Special Purpose
Vehicle (SPV), local
municipal corporations etc.
to manage the
implementation of Smart
City projects
Delhi Development
Authority is building
Delhi’s first flagship Smart
City project in East Delhi
Industry
Associations
Taking initiatives to build
platforms for pilot testing
and encouraging/ inviting
stakeholders to participate
CII, Siemens and Hitachi
formed consortia to lead
the conceptualization and
implementation of pilot
projects in Smart Cities
12

13. Limited technology vendors have offerings across key focus areas of the initiative
Note: 1Capability is measured on the basis of solution offerings and case studies available across each category globally | 2Others include Healthcare, Education etc.
Source: Press Releases | Company Websites | Zinnov Analysis
High Very Low
Capability1 Mapping of Key Vendors across Smart City Components
13
*Illustrative List of Companies
Transportation GovernanceWater & SewagePower Waste Management Others2
System
Integrators
Technology
Vendors

14. Note: 1Subject Matter Experts | 2Banking, Financial Services and Insurance
Source: Press Releases | Zinnov Analysis
Regulations
Management
3 Set up its datacenters in India to cater verticals like Government and BFSI2 etc.
Setting up a surveillance system and integrating it with existing CCTV cameras for
Lucknow Police Department
Open to Flexible
Payment Options
Special Focus on
Regulated Industry
Verticals
Adherence to
Local Laws
Technology vendors need to augment their capabilities to address the Smart City opportunity
14
Development of
Local Ecosystem
1 Consultants
Local
Government
Bodies
India based ISV
Partnerships
SME1 on Best Practice
Applications
Developing multiple solutions around waste & water management
Ebix & Educomp have partnered to set-up Smart Classroom and E-learning
solutions in Udaipur
Solution
Customization
2 Scale & Requirement
of Indian cities
Focused towards Key
Pillars (smart energy,
waste management, etc.)
Addresses Native
Indian Languages
Integration with
Existing Initiatives
Reduced the prices of its LED products following Governments initiative to replace
bulbs with LEDs and resulted in ~4X increase in revenue
Allowing local users to create and consume content in regional Indian languages
Recommendations Illustrative Examples

15. Zinnov Worldwide
21, Waterway Ave,
Suite 300
The Woodlands
TX – 77380
PH: +1-281-362-2773
Meilifang Tower 4, Entrance 4,
10/F #1003,
11 Beiyuan Shuangying Road,
Chaoyang District,
Beijing China 100012
Level 42,
Suntec Tower Three
8 Temasek Boulevard
Singapore 038988
PH:+65 6829 2123
69 "Prathiba Complex", 4th 'A' Cross,
Koramangala Ind. Layout
5th Block, Koramangala
Bangalore – 560095
PH: +91-80-41127925/6
First Floor,
Plot # 131,
Sector - 44,
Gurgaon – 122002
PH: +91-124- 4420100
3080, Olcott Street
Suite A125,
Santa Clara, CA 95054
PH: +1-408-716-8432
info@zinnov.com
www.zinnov.com
@Zinnov
Thank You…
15