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Indian Muslims Inc.
Their Market & Global Business Impact
Introduction
It may surprise many, but Muslims’ trade links to the Indian Subcontinent go back to the time of Prophet Muhammad (peace be upon him, c. 571 – 632) when Arab traders used to visit the Malabar region, which was a link between them and the trading ports of South East Asia.
According to historians Elliot and Dowson, the first Arab Muslims settled on the Indian coast as early as 630 AD.
It is also claimed that the first Indian mosque was built in 629 A.D in Kodungallur (Kerala) by Malik Bin Deenar, an Arab trader who reached the ancient port of Musuris on the spice route in Malabar.
Today, this heritage of trade relations is richly evident in major business families of Gulf Arab States who hail from the Indian State of Kerala. Mr. Yusuf Ali, a Kerala native, leads one of the largest regional conglomerates based in Dubai, UAE, called the EMKE Group (it owns Lulu Supermarkets and others with revenue of $1.2 billion in 2006.) Many other major business powerhouses such as the Fatimah Group, KMT Group, Gulfar also have deep connections to the region of Kerala.
According to the World Fact Book, Muslims in India are today estimated to be 151 million (2007), making them the third largest Muslim population in the world, trailing only Indonesia (201 million) and Pakistan (159 million).
On the one hand, the socio-economic state of this demographic is reflected in the success of Muslim communities of Kerala, or by the fact that one of the richest Indians is a Gujarati Muslim, Azim Premji, chairman of the global IT services giant Wipro Ltd (est. wealth by Forbes at US $17 bill), or that the many global cultural and media icons of India are Muslims (from Bollywood movie stars Salman Khan and Shahrukh Khan to tennis pro Sania Mirza and recognized artist MF Hussain). At the same time, these iconic representations are also tainted by communal tensions, bias and the dismal socio-economic state of much of India’s larger Muslim population.
Nevertheless, given the significant size of this demographic in a country that is becoming a global economic powerhouse, very little is known or explored about the overall market of Muslims in India. For example:
Which industries are Indian Muslims most active in?
Given their Muslim identity – do they offer a unique set of market opportunities?
What is their role in the recent IT services boom in India? and,
What are their business relationships globally and in other Muslim countries that can be leveraged?
In this brief report, we profile the huge population of Muslims in India who represent a mixed bag of prosperous local, regional and global business owners as well as those living in a dismal socio-economic state. We look at their market opportunity, as well as review successful Indian Muslim run businesses as partnership potentials.
For the entrepreneurs in the Indian Muslim community, closer to home, is a set of unique business opportunities to tap into..
For Muslim foreign investors, Indian Muslims not only offer an opportunity to tap into their lifestyle sectors of Islamic finance in particular, but also provide a means to benefit from the overall economic boom of India and partner with the successful pharmaceutical, technology, media, construction and other Muslim run enterprises.
For Indian and global consumer goods and services marketers, the Indian Muslim community is a lucrative segment whose needs could be better addressed while building profitable brand loyalty.
The Indian Muslim market population is 151 million strong. DinarStandard estimates their total annual household income of $48 billion (Avg. Household Income x Avg. Household size x Population).
It also boasts the highest level of household goods expenditure compared to any other religious segment in India (at 69% of income according to Survey of Household Income and Expenditure (2004-05.)
For any marketer, this has to be an attractive market demanding exclusive focus.
While all categories of common household goods and services would apply to this market, a segment of offerings that uniquely cater to Muslim needs provides tremendous potential.
This global category, termed as the Muslim Lifestyle Market™ by DinarStandard , covers services such as halal food, Islamic finance, muslim clothing, muslim media, educational institutions, travel services, and more.
Many Indian Muslim Lifestyle Market™ offerings exist today--some of which are sampled below. However, there is also evidence of a huge gap between the fragmented options currently available and the opportunity for national and regional brands to be built to serve this seemingly vast need.
Islamic Finance:
Islamic Finance is today a global phenomenon with institutions operating in over 75 countries whose assets are estimated at more than US$265 billion. The average annual growth of the industry is estimated between 10 and 20% (according to the International Islamic Finance Forum.)
In India, major attempts have been made to comply with Muslim financing options based on interest free, socially sensitive financing and other Islamic financing conjunctions.
Dr Shariq Nisar who writes regularly on Islamic Finance in India has chronicled much of these efforts on his blogpost, “Challenges for Islamic Banking in India.” First, he talks about the existence since the 1930s of Trusts which Muslims adapted as ‘Muslim Funds’ which still exist to this day. These however are non-profit institutions. It wasn’t until the early 1980s that for-profit Islamic finance options began to appear. However, many of the efforts have failed either due to Indian statutory hurdles or due to a lack of professional management.
Muhammad Hussain Khatkhatay, was the Managing Director of India’s once largest Islamic Financial Institution, the Barkat Investment Group which had been highly successful in India in 1980s and till mid 1990s. However, the business went south and was liquidated in May 2000 due to a variety of reasons including a recession in the real estate market (in which they had heavy exposure), poor management and statutory hurdles.
First, India’s financial system also comprises Non-banking Financial Companies (NBFCs), Mutual Funds, Insurance Companies and Developmental Institutions. The mutual funds, venture capital and a number of likely instruments based on equity financing are considered to be identical to Islamic principles of profit and loss sharing. Some efforts in this regard are underway.
Examples are:
Idafa.com: Shariah compliant stocks investment firm. Idafa Investments Pvt. Ltd.
IslamicEquicty.co.in run by Parsoli Corporation, facilitating Islamic wealth management http://islamicequity.co.in/
An additional opportunity is the entry of foreign Islamic banks in the country either through the capital markets or through joint venture partnerships with Indian counterparts.
These are serious opportunities given the large market size. Dr. Nisar estimates that there are over Indian Rs. 40 billion of funds to invest by Indian Muslims annually. Add to that, the need for business financing in a community which boasts 50% self-employment and, as pointed out in the Sachar Report, has very few avenues for financing and loans, which in-turn affects there ability to compete and grow.
Media
Media that caters to the specific needs of Muslims in India is perhaps the most mature of the Muslim Lifestyle Market offerings in India. However given the fast moving changes in the media industry, opportunities still abound.
Indian Muslim media is shaped by the most popular language amongst Muslims - Urdu. According to the Indian Audit Bureau of Circulation, Urdu enjoys the third highest number of publications. Some examples of these publications are Roz Name Salar (by Al Amin Group); Munsif; Inquilab (popular in Bombay), Zindagi e Nao; Tehqiqate Islami. Also, a few online publications are also catering to the needs of the Indian Muslim Diaspora --such as The Milli Gazette, and Indian Muslims.info
There is also a whole segment of religious media. On the broadcast side, ETV Urdu from Hyderabad is a popular channel .
New Delhi based Goodword Books Pvt. Ltd. Produces Islamic cultural children games and books that are marketed globally. (http://www.goodwordbooks.com/index.php)
In addition there are various Islamic literature publishing houses. Some of these are: Markaza Maktaba Islami Publishers: mipublishers.net; publishing wing of Jamaat-e-islami; Farid Book Depot : Urdu publisher; and Idara Ishaat-e-Diniyat.
Educational Institutions
While Muslims participate in mainstream Indian education institutions and aspire to attend its premium institutes such as the IITs, there are many institutions administered by Muslims which provide generic education based on Indian curricula as well as Muslim specific courses.
While the Aligarh Muslim University was a beacon of education for Indian Muslims it has lost its glory while other institutions have gained prominence. Jamia Millia Islamia based in Delhi (Jamia Millia Islamia) is a well recognized liberal arts and media studies institute with around 11000 students. The University’s students, faculty and administration are mostly Muslim. In early 2006, the King of Saudi Arabia paid a historic visit to the University and donated a record $30 million for construction of a new library.
Other key Muslim institutes across the north include:
• Crescent Ed Society (Chennai)
• Madraessae Azam
• Calcutta Madrassa College
• Saboo Sadiqui (Eng. Colleges)
• Rafiq Zakaria (Aurangabad)
• Hamdarad Univ in Delhi
• Al Amin, (Big Karnatuka Med Colleges/ eng. Colleges)
• Aligarh Muslim (Serving mostly Muslims of Eastern UP)
Key Muslim institutes across the south include:
• Ansar Charitable Trust (a premium education institute having a number of education institutions ranging from kinderschools to post graduate colleges – all in huge campus).
• MES (Muslim Education Society), has a large number of educational institutions across Kerala.
• Islamic University in Shanthapuram
• SMART, a relatively new institution, and one of its kind among Muslims. SMART is a muslim version of Verkey’s GEMS (Global Education Management Solutions). SMART is an educational institutions management, operations and consulting firm. Their first project is called ‘ Knowledge Corridor’ in Calicut
Other areas
Many other categories of products and services catering to the unique Muslim needs exist. For example, availability of Halal food (Muslim dietary requirements) is a huge segment which is today informally served in India. No formidable Halal standardization/certification body exist. Much of this is done through the approval of local Imams while Muslim dietary sensitivities are recognized in restaurants/ stores across India.
Another category is modest/ Muslim clothing which is also very much an informal industry in India and is more influenced by regional cultures.
Other Muslim services represented as small operations include Muslim travel services, legal advisory services (Wills/Trusts), matrimonial services, event management and more. All of these are yet to be tapped into with national or regional operations, brands and efficiency.
Key Business Centers
As stated earlier, 50% of Indian Muslims are self-employed implying a high-level of business/ entrepreneurial activity within the community.
Indeed, the gamut of this entrepreneurial activity by Indian Muslims--spans from small traditional craftsmanship, retail vending to large national and even global trade, manufacturing and technology businesses who are benefiting from the global economic boom of the Indian economy.
North/ North East - traditional crafts/ textile
In the Northern states with Muslim populations, traditional craftsmanship and trade around them have been historically strong. Centered in and around Uttar Pradesh, these traditional industries have included:
Aligarh’s locks (UP)
Moradabad’s brass (UP)
Firozabad’s glass (UP)
Varanasi’s silk (UP)
Ansaris (Julahas) Weavers/ Looms textiles in Northern India (Bihar and UP)
Lucknow’s Chikan cloth work (UP)
Woodcrafts: Saharanpur – (UP), also (Indian Administered Kashmir)
Silk carpets, shawls (Indian Administered Kashmir)
Various challenges are faced by many of these traditional craft industries which include low profits, margins being squeezed by middlemen / traders, and a lack of technological innovation and financial support.
South/ South West – Traditional Mercantile groups;
Whereas more of the traditional craft based industries take prominence in the Northern Indian Muslim communities, the South/ South West region has the more established mercantile groups as well as new economy industrialists. Some of these communities include:
Memons (Gujrat) – wholesalers/ traders. Many migrated to Karachi after the India/ Pakistan partition
Bohras (Gujrat / Mumbai) – Shopkeepers, merchants
Nawiyat of Bhatkal (Karnataka) - wholesalers/ traders
Labbay (Tamil Nadu, Kerala, Karnataka) - a trading community specializing in leather, tanning, tobacco, grains and spices
Marikars (Tamil Nadu) - Shipping magnates
Rowthars (Tamil Nadu)
Indian Muslim Business Diasporas
Apart from the communities focused on business activity in India, a strong Indian Muslim merchant diaspora exists, usually owning businesses on a small to medium scale across the globe. Some of these key concentrations are as follows (this is not meant to be an exhaustive list):
Eastern/Southern Africa and U.K.: Gujarati speaking Muslims managing stores, textiles, hardware, and international trade.
Gulf Countries (specifically the UAE, Oman, Kuwait, Bahrain): The Nawayaths (descendants of Arabs from coastal south India), Malayalam speaking Muslims from Malabar region of the southern state of Kerala dominate retail trade, like EMKE Group, Fatimah Group, KMT Group, Gulfar etc. Also many from Kerala are professionally employed in the Gulf States
Malaysia/Singapore: Tamil speaking Muslims engaged in shipping, retail trade/international trade in textiles, general merchandise, jewelry, etc.
Success Stories - Local, Regional & Global
The biggest and most often referenced name amongst successful Muslim businessmen/women in India is that of Azim Hashim Premji, Chairman & CEO of one of the largest software companies in India, Wipro Technologies.
Mr. Premji is today one of the richest Indians with an estimated worth of $17 billion (according to Forbes magazine) which he amassed as a true entrepreneur -- turning his family’s small vegetable oil business into a global IT powerhouse.
Mr. Azim Premji however is not an exception. Indian Muslims are at the helm of many national and global enterprises concentrated around pharmaceuticals, construction, media, technology, food, shipping and leather industries.
Mr. Yusuf Hamied leads the second largest pharmaceutical firm in India named Cipla Pharmacueticals which boasts strong R&D and global presence deriving annual revenues of US $760 million (2006). Another major pharmaceutical and biotechnology company is Wokhardt, led by Habil Khorakiwala and family. The Company has a market capitalization of over US$ 1 billion and an annual turnover of US$ 650 million. Similarly, Himalaya Healthcare and Shahnaz Herbals are global players in herbal medicine and services.
Even within India, some of its nationally recognized businesses are Muslim led as well. Two such examples are Bangalore based construction house Prestige Group led by Mr. Razack Sattar and Mumbai based Lokhandwala Construction led by Mr. Siraj Lokhandwala. Both have built quality reputations and are benefiting from the real estate boom in India.
Similarly, other large businesses led by Muslims span the food, media, leather & tanning, logistics, and software industries such as the Allana Group, Mid-Day Multimedia, Mirza Tanners, Patel Roadways, and Cranes Software. (see list below)
In addition, the Indian Muslim diaspora has also fared well in many countries. The most prominent of these examples is the Dubai based $4 billion diversified business group ETA-ASCON which is engaged in construction and shipping and manufacturing and is led by Mr. Syed M. Salahuddin. Mr. Salahuddin is an example of the many South Indian Muslims who have established large enterprises in the Gulf countries.
Meanwhile, Kumpulan Barakath is one of the largest food services companies based in Malaysia and run by Tamil speaking Indian Muslims where many are also known for their leadership in the shipping industry. In the western hemisphere, Sir Gulam Noon of Noon Products based in the UK has built a successful business and has made a name for himself as “the curry king of UK” for his ethnic food products and services.
These are just some of the prominent examples of successful business operations being run and managed by Muslims of India. Weighing this success against the dismal state of many Indian Muslims as painted by the Sachar Report and the diversity and huge size of this market, we can certainly ascertain the tremendous opportunities this large population segment presents.
Demographics & State of the Community
As estimated by the World Fact Book, in 2007 Muslims in India form about 13.4% (151 million) of India’s 1.13 billion population. According to the last Indian Census in 2001, the population of Indian Muslims was 138 million.
The largest concentrations--about 47% of all Muslims in India, according to the 2001 census--live in the 3 Northern states of Uttar Pradesh (30.7 million having famous Muslim urban centers of Aligarh, Luckhnow, Allahabad), West Bengal (20.2 million, with Calcutta as its urban center), and Bihar (13.7 million, with Patna as its urban center).
Meanwhile, the Indian administered territory of Jammu & Kashmir is the only state with a Muslim majority at 67% and a total population of 6.8 million.
NOTE: The percentage has changed much and its estimated around 20% now.
Other major Muslim concentrations are in the South and Western States of India—Maharahstra (10 million, with Mumbai as its main urban center), Andhra Pradesh (7 million with Hyderabad as its largest urban center) and Kerala (8 million.)
Muslims are generally more educated, urban, integrated and prosperous in the Western and Southern states of India than in the Northern and Eastern ones.
The Sachar Report:
In November 2006, the Rajinder Sachar Committee, appointed by Prime Minister Manmohan Singh of India produced the first ever national report on social, economic and educational status of the Muslim community of India. This report called the ‘Sachar Report’ had the following key findings:
On Education,
The literacy rate among Muslims in 2001 (59.1%) was far below the national average (65.1%).In the premier colleges in the country, only one out of the 25 Under-Graduate students (4%) and one out of 50 Post-Graduate students (2%) was a Muslim.
Muslims are grossly underrepresented in the elite Indian Institutes of Management (IIMs) and the Indian Institutes of Technology (IITs). In 2005-6 Muslims were only 1.3% of the total number of students in all the IIM courses. In case of the IITs, out of 27,161 students enrolled in all the courses, only 894 (3.3%) were Muslims.
Meanwhile, only 3% of Muslim children among the school going age go to Madrasas.
On Economics,
According to the report, the unemployment rate among Muslim graduates is the highest among all socio-religious communities.
Also, representation of Muslims is very low in banks, universities and government departments and does not match their population share. Their share as police constables is only 6%, in health 4.4%, in transport 6.5%.
At the same time, Muslim workers are engaged more in self employed manufacturing and trade activities (A National Sample Survey states that 49% Muslims in India are self employed compared to 36% Hindus and 27% Christians.)
The average amount of bank loans disbursed to Muslims is 2/3 of the amount disbursed to other minorities. In some cases it is half.
There are about 500,000 registered Waqfs with 600,000 acre land, and Rs 6,000 crore (approx. US $1.5 billion) book value supporting various Muslim institutions. However, the gross income from all these properties is only 163 crores i.e. 2.7%.
On Women,
The very low participation of Muslim women compared to other socio-religious communities in economic activity is one of the important highlights of the Report. While overall about 44 % of women are engaged in economic activity, the figure for Muslim women is 25% overall and as low as 18% in urban areas. This is bound to adversely affect the overall economic status of the community.
http://dinarstandard.com/index.html
Going through the report it is notable that Muslim community have embraced business institutions as their main priority and are having a sound financials than many other communities.
PS: Please feel free to disagree. Who Cares !!!
Their Market & Global Business Impact
Introduction
It may surprise many, but Muslims’ trade links to the Indian Subcontinent go back to the time of Prophet Muhammad (peace be upon him, c. 571 – 632) when Arab traders used to visit the Malabar region, which was a link between them and the trading ports of South East Asia.
According to historians Elliot and Dowson, the first Arab Muslims settled on the Indian coast as early as 630 AD.
It is also claimed that the first Indian mosque was built in 629 A.D in Kodungallur (Kerala) by Malik Bin Deenar, an Arab trader who reached the ancient port of Musuris on the spice route in Malabar.
Today, this heritage of trade relations is richly evident in major business families of Gulf Arab States who hail from the Indian State of Kerala. Mr. Yusuf Ali, a Kerala native, leads one of the largest regional conglomerates based in Dubai, UAE, called the EMKE Group (it owns Lulu Supermarkets and others with revenue of $1.2 billion in 2006.) Many other major business powerhouses such as the Fatimah Group, KMT Group, Gulfar also have deep connections to the region of Kerala.
According to the World Fact Book, Muslims in India are today estimated to be 151 million (2007), making them the third largest Muslim population in the world, trailing only Indonesia (201 million) and Pakistan (159 million).
On the one hand, the socio-economic state of this demographic is reflected in the success of Muslim communities of Kerala, or by the fact that one of the richest Indians is a Gujarati Muslim, Azim Premji, chairman of the global IT services giant Wipro Ltd (est. wealth by Forbes at US $17 bill), or that the many global cultural and media icons of India are Muslims (from Bollywood movie stars Salman Khan and Shahrukh Khan to tennis pro Sania Mirza and recognized artist MF Hussain). At the same time, these iconic representations are also tainted by communal tensions, bias and the dismal socio-economic state of much of India’s larger Muslim population.
Nevertheless, given the significant size of this demographic in a country that is becoming a global economic powerhouse, very little is known or explored about the overall market of Muslims in India. For example:
Which industries are Indian Muslims most active in?
Given their Muslim identity – do they offer a unique set of market opportunities?
What is their role in the recent IT services boom in India? and,
What are their business relationships globally and in other Muslim countries that can be leveraged?
In this brief report, we profile the huge population of Muslims in India who represent a mixed bag of prosperous local, regional and global business owners as well as those living in a dismal socio-economic state. We look at their market opportunity, as well as review successful Indian Muslim run businesses as partnership potentials.
For the entrepreneurs in the Indian Muslim community, closer to home, is a set of unique business opportunities to tap into..
For Muslim foreign investors, Indian Muslims not only offer an opportunity to tap into their lifestyle sectors of Islamic finance in particular, but also provide a means to benefit from the overall economic boom of India and partner with the successful pharmaceutical, technology, media, construction and other Muslim run enterprises.
For Indian and global consumer goods and services marketers, the Indian Muslim community is a lucrative segment whose needs could be better addressed while building profitable brand loyalty.
The Indian Muslim market population is 151 million strong. DinarStandard estimates their total annual household income of $48 billion (Avg. Household Income x Avg. Household size x Population).
It also boasts the highest level of household goods expenditure compared to any other religious segment in India (at 69% of income according to Survey of Household Income and Expenditure (2004-05.)
For any marketer, this has to be an attractive market demanding exclusive focus.
While all categories of common household goods and services would apply to this market, a segment of offerings that uniquely cater to Muslim needs provides tremendous potential.
This global category, termed as the Muslim Lifestyle Market™ by DinarStandard , covers services such as halal food, Islamic finance, muslim clothing, muslim media, educational institutions, travel services, and more.
Many Indian Muslim Lifestyle Market™ offerings exist today--some of which are sampled below. However, there is also evidence of a huge gap between the fragmented options currently available and the opportunity for national and regional brands to be built to serve this seemingly vast need.
Islamic Finance:
Islamic Finance is today a global phenomenon with institutions operating in over 75 countries whose assets are estimated at more than US$265 billion. The average annual growth of the industry is estimated between 10 and 20% (according to the International Islamic Finance Forum.)
In India, major attempts have been made to comply with Muslim financing options based on interest free, socially sensitive financing and other Islamic financing conjunctions.
Dr Shariq Nisar who writes regularly on Islamic Finance in India has chronicled much of these efforts on his blogpost, “Challenges for Islamic Banking in India.” First, he talks about the existence since the 1930s of Trusts which Muslims adapted as ‘Muslim Funds’ which still exist to this day. These however are non-profit institutions. It wasn’t until the early 1980s that for-profit Islamic finance options began to appear. However, many of the efforts have failed either due to Indian statutory hurdles or due to a lack of professional management.
Muhammad Hussain Khatkhatay, was the Managing Director of India’s once largest Islamic Financial Institution, the Barkat Investment Group which had been highly successful in India in 1980s and till mid 1990s. However, the business went south and was liquidated in May 2000 due to a variety of reasons including a recession in the real estate market (in which they had heavy exposure), poor management and statutory hurdles.
First, India’s financial system also comprises Non-banking Financial Companies (NBFCs), Mutual Funds, Insurance Companies and Developmental Institutions. The mutual funds, venture capital and a number of likely instruments based on equity financing are considered to be identical to Islamic principles of profit and loss sharing. Some efforts in this regard are underway.
Examples are:
Idafa.com: Shariah compliant stocks investment firm. Idafa Investments Pvt. Ltd.
IslamicEquicty.co.in run by Parsoli Corporation, facilitating Islamic wealth management http://islamicequity.co.in/
An additional opportunity is the entry of foreign Islamic banks in the country either through the capital markets or through joint venture partnerships with Indian counterparts.
These are serious opportunities given the large market size. Dr. Nisar estimates that there are over Indian Rs. 40 billion of funds to invest by Indian Muslims annually. Add to that, the need for business financing in a community which boasts 50% self-employment and, as pointed out in the Sachar Report, has very few avenues for financing and loans, which in-turn affects there ability to compete and grow.
Media
Media that caters to the specific needs of Muslims in India is perhaps the most mature of the Muslim Lifestyle Market offerings in India. However given the fast moving changes in the media industry, opportunities still abound.
Indian Muslim media is shaped by the most popular language amongst Muslims - Urdu. According to the Indian Audit Bureau of Circulation, Urdu enjoys the third highest number of publications. Some examples of these publications are Roz Name Salar (by Al Amin Group); Munsif; Inquilab (popular in Bombay), Zindagi e Nao; Tehqiqate Islami. Also, a few online publications are also catering to the needs of the Indian Muslim Diaspora --such as The Milli Gazette, and Indian Muslims.info
There is also a whole segment of religious media. On the broadcast side, ETV Urdu from Hyderabad is a popular channel .
New Delhi based Goodword Books Pvt. Ltd. Produces Islamic cultural children games and books that are marketed globally. (http://www.goodwordbooks.com/index.php)
In addition there are various Islamic literature publishing houses. Some of these are: Markaza Maktaba Islami Publishers: mipublishers.net; publishing wing of Jamaat-e-islami; Farid Book Depot : Urdu publisher; and Idara Ishaat-e-Diniyat.
Educational Institutions
While Muslims participate in mainstream Indian education institutions and aspire to attend its premium institutes such as the IITs, there are many institutions administered by Muslims which provide generic education based on Indian curricula as well as Muslim specific courses.
While the Aligarh Muslim University was a beacon of education for Indian Muslims it has lost its glory while other institutions have gained prominence. Jamia Millia Islamia based in Delhi (Jamia Millia Islamia) is a well recognized liberal arts and media studies institute with around 11000 students. The University’s students, faculty and administration are mostly Muslim. In early 2006, the King of Saudi Arabia paid a historic visit to the University and donated a record $30 million for construction of a new library.
Other key Muslim institutes across the north include:
• Crescent Ed Society (Chennai)
• Madraessae Azam
• Calcutta Madrassa College
• Saboo Sadiqui (Eng. Colleges)
• Rafiq Zakaria (Aurangabad)
• Hamdarad Univ in Delhi
• Al Amin, (Big Karnatuka Med Colleges/ eng. Colleges)
• Aligarh Muslim (Serving mostly Muslims of Eastern UP)
Key Muslim institutes across the south include:
• Ansar Charitable Trust (a premium education institute having a number of education institutions ranging from kinderschools to post graduate colleges – all in huge campus).
• MES (Muslim Education Society), has a large number of educational institutions across Kerala.
• Islamic University in Shanthapuram
• SMART, a relatively new institution, and one of its kind among Muslims. SMART is a muslim version of Verkey’s GEMS (Global Education Management Solutions). SMART is an educational institutions management, operations and consulting firm. Their first project is called ‘ Knowledge Corridor’ in Calicut
Other areas
Many other categories of products and services catering to the unique Muslim needs exist. For example, availability of Halal food (Muslim dietary requirements) is a huge segment which is today informally served in India. No formidable Halal standardization/certification body exist. Much of this is done through the approval of local Imams while Muslim dietary sensitivities are recognized in restaurants/ stores across India.
Another category is modest/ Muslim clothing which is also very much an informal industry in India and is more influenced by regional cultures.
Other Muslim services represented as small operations include Muslim travel services, legal advisory services (Wills/Trusts), matrimonial services, event management and more. All of these are yet to be tapped into with national or regional operations, brands and efficiency.
Key Business Centers
As stated earlier, 50% of Indian Muslims are self-employed implying a high-level of business/ entrepreneurial activity within the community.
Indeed, the gamut of this entrepreneurial activity by Indian Muslims--spans from small traditional craftsmanship, retail vending to large national and even global trade, manufacturing and technology businesses who are benefiting from the global economic boom of the Indian economy.
North/ North East - traditional crafts/ textile
In the Northern states with Muslim populations, traditional craftsmanship and trade around them have been historically strong. Centered in and around Uttar Pradesh, these traditional industries have included:
Aligarh’s locks (UP)
Moradabad’s brass (UP)
Firozabad’s glass (UP)
Varanasi’s silk (UP)
Ansaris (Julahas) Weavers/ Looms textiles in Northern India (Bihar and UP)
Lucknow’s Chikan cloth work (UP)
Woodcrafts: Saharanpur – (UP), also (Indian Administered Kashmir)
Silk carpets, shawls (Indian Administered Kashmir)
Various challenges are faced by many of these traditional craft industries which include low profits, margins being squeezed by middlemen / traders, and a lack of technological innovation and financial support.
South/ South West – Traditional Mercantile groups;
Whereas more of the traditional craft based industries take prominence in the Northern Indian Muslim communities, the South/ South West region has the more established mercantile groups as well as new economy industrialists. Some of these communities include:
Memons (Gujrat) – wholesalers/ traders. Many migrated to Karachi after the India/ Pakistan partition
Bohras (Gujrat / Mumbai) – Shopkeepers, merchants
Nawiyat of Bhatkal (Karnataka) - wholesalers/ traders
Labbay (Tamil Nadu, Kerala, Karnataka) - a trading community specializing in leather, tanning, tobacco, grains and spices
Marikars (Tamil Nadu) - Shipping magnates
Rowthars (Tamil Nadu)
Indian Muslim Business Diasporas
Apart from the communities focused on business activity in India, a strong Indian Muslim merchant diaspora exists, usually owning businesses on a small to medium scale across the globe. Some of these key concentrations are as follows (this is not meant to be an exhaustive list):
Eastern/Southern Africa and U.K.: Gujarati speaking Muslims managing stores, textiles, hardware, and international trade.
Gulf Countries (specifically the UAE, Oman, Kuwait, Bahrain): The Nawayaths (descendants of Arabs from coastal south India), Malayalam speaking Muslims from Malabar region of the southern state of Kerala dominate retail trade, like EMKE Group, Fatimah Group, KMT Group, Gulfar etc. Also many from Kerala are professionally employed in the Gulf States
Malaysia/Singapore: Tamil speaking Muslims engaged in shipping, retail trade/international trade in textiles, general merchandise, jewelry, etc.
Success Stories - Local, Regional & Global
The biggest and most often referenced name amongst successful Muslim businessmen/women in India is that of Azim Hashim Premji, Chairman & CEO of one of the largest software companies in India, Wipro Technologies.
Mr. Premji is today one of the richest Indians with an estimated worth of $17 billion (according to Forbes magazine) which he amassed as a true entrepreneur -- turning his family’s small vegetable oil business into a global IT powerhouse.
Mr. Azim Premji however is not an exception. Indian Muslims are at the helm of many national and global enterprises concentrated around pharmaceuticals, construction, media, technology, food, shipping and leather industries.
Mr. Yusuf Hamied leads the second largest pharmaceutical firm in India named Cipla Pharmacueticals which boasts strong R&D and global presence deriving annual revenues of US $760 million (2006). Another major pharmaceutical and biotechnology company is Wokhardt, led by Habil Khorakiwala and family. The Company has a market capitalization of over US$ 1 billion and an annual turnover of US$ 650 million. Similarly, Himalaya Healthcare and Shahnaz Herbals are global players in herbal medicine and services.
Even within India, some of its nationally recognized businesses are Muslim led as well. Two such examples are Bangalore based construction house Prestige Group led by Mr. Razack Sattar and Mumbai based Lokhandwala Construction led by Mr. Siraj Lokhandwala. Both have built quality reputations and are benefiting from the real estate boom in India.
Similarly, other large businesses led by Muslims span the food, media, leather & tanning, logistics, and software industries such as the Allana Group, Mid-Day Multimedia, Mirza Tanners, Patel Roadways, and Cranes Software. (see list below)
In addition, the Indian Muslim diaspora has also fared well in many countries. The most prominent of these examples is the Dubai based $4 billion diversified business group ETA-ASCON which is engaged in construction and shipping and manufacturing and is led by Mr. Syed M. Salahuddin. Mr. Salahuddin is an example of the many South Indian Muslims who have established large enterprises in the Gulf countries.
Meanwhile, Kumpulan Barakath is one of the largest food services companies based in Malaysia and run by Tamil speaking Indian Muslims where many are also known for their leadership in the shipping industry. In the western hemisphere, Sir Gulam Noon of Noon Products based in the UK has built a successful business and has made a name for himself as “the curry king of UK” for his ethnic food products and services.
These are just some of the prominent examples of successful business operations being run and managed by Muslims of India. Weighing this success against the dismal state of many Indian Muslims as painted by the Sachar Report and the diversity and huge size of this market, we can certainly ascertain the tremendous opportunities this large population segment presents.
Demographics & State of the Community
As estimated by the World Fact Book, in 2007 Muslims in India form about 13.4% (151 million) of India’s 1.13 billion population. According to the last Indian Census in 2001, the population of Indian Muslims was 138 million.
The largest concentrations--about 47% of all Muslims in India, according to the 2001 census--live in the 3 Northern states of Uttar Pradesh (30.7 million having famous Muslim urban centers of Aligarh, Luckhnow, Allahabad), West Bengal (20.2 million, with Calcutta as its urban center), and Bihar (13.7 million, with Patna as its urban center).
Meanwhile, the Indian administered territory of Jammu & Kashmir is the only state with a Muslim majority at 67% and a total population of 6.8 million.
NOTE: The percentage has changed much and its estimated around 20% now.
Other major Muslim concentrations are in the South and Western States of India—Maharahstra (10 million, with Mumbai as its main urban center), Andhra Pradesh (7 million with Hyderabad as its largest urban center) and Kerala (8 million.)
Muslims are generally more educated, urban, integrated and prosperous in the Western and Southern states of India than in the Northern and Eastern ones.
The Sachar Report:
In November 2006, the Rajinder Sachar Committee, appointed by Prime Minister Manmohan Singh of India produced the first ever national report on social, economic and educational status of the Muslim community of India. This report called the ‘Sachar Report’ had the following key findings:
On Education,
The literacy rate among Muslims in 2001 (59.1%) was far below the national average (65.1%).In the premier colleges in the country, only one out of the 25 Under-Graduate students (4%) and one out of 50 Post-Graduate students (2%) was a Muslim.
Muslims are grossly underrepresented in the elite Indian Institutes of Management (IIMs) and the Indian Institutes of Technology (IITs). In 2005-6 Muslims were only 1.3% of the total number of students in all the IIM courses. In case of the IITs, out of 27,161 students enrolled in all the courses, only 894 (3.3%) were Muslims.
Meanwhile, only 3% of Muslim children among the school going age go to Madrasas.
On Economics,
According to the report, the unemployment rate among Muslim graduates is the highest among all socio-religious communities.
Also, representation of Muslims is very low in banks, universities and government departments and does not match their population share. Their share as police constables is only 6%, in health 4.4%, in transport 6.5%.
At the same time, Muslim workers are engaged more in self employed manufacturing and trade activities (A National Sample Survey states that 49% Muslims in India are self employed compared to 36% Hindus and 27% Christians.)
The average amount of bank loans disbursed to Muslims is 2/3 of the amount disbursed to other minorities. In some cases it is half.
There are about 500,000 registered Waqfs with 600,000 acre land, and Rs 6,000 crore (approx. US $1.5 billion) book value supporting various Muslim institutions. However, the gross income from all these properties is only 163 crores i.e. 2.7%.
On Women,
The very low participation of Muslim women compared to other socio-religious communities in economic activity is one of the important highlights of the Report. While overall about 44 % of women are engaged in economic activity, the figure for Muslim women is 25% overall and as low as 18% in urban areas. This is bound to adversely affect the overall economic status of the community.
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Going through the report it is notable that Muslim community have embraced business institutions as their main priority and are having a sound financials than many other communities.
PS: Please feel free to disagree. Who Cares !!!
Hieghts of ignorance. 
You even can't compare yourself with an average Pakistani. Better to reach on that stage to compare yourselves with us.
