Google India has announced its financials for FY18, thereby recording a 30% increase in its business over the previous year. This is more than 50% increase over the past three years.
Google India registered a turnover of $1.2 Bn (INR 9337.7 Cr) in FY18 for the period ending March 2018 as compared to the previous year. to $978 Mn (INR 7,208.9 Cr), while profit jumped 33% to $55.2 Mn (INR 407.2 Cr). Sales had expanded 22% in fiscal 2017, according to latest Registrar of Companies filing.
As per reports, nearly 69% of Google India’s revenues are driven by advertising service that displays ads next to search results. This includes an array of services such as Google AdSense, Google Ads, and more.
Here, Google competes with Facebook, and together they hold 80% share in the entire digital industry.
To be noted, as per IBEF, the Indian advertising industry is projected to be the second fastest growing advertising market in Asia after China. At present, advertising revenue accounts for around 0.38% of India’s gross domestic product.
Further, The Indian digital advertising industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 32% to reach $2.93 Bn (INR 18,986 Cr ) by 2020, backed by affordable data and rising smartphone penetration.
The Google India’s revenue is still 1% of its parent’s revenue. Though, digital media has gained momentum in India, it is far less as compared to the western world.
Earlier this year, in August 2018, Google revealed its three way plan to strengthen its position in India:
- Making internet work for more Indians;
- Making Google’s products relevant to Indians; and
- Taking the best of India to the rest of the world”
Google has already reached its target of 400 free Wi-fi enabled stations in India.It has plans to expand its free WiFi services to public places such as malls, cafés, and universities. Also, it will now provide high-quality internet access to secluded areas. Google Station will collaborate with Andhra Pradesh to cover over 12,000 villages covering one crore population.
Taking a step ahead, Google has partnered with phone makers like Micromax, Lava, Nokia and Transsion to create Android (Go edition) at suitable prices
Also, Google will soon launch a new feature in Google Go that will let people listen the webpages in vernacular languages. It will support 28 languages including Hindi, Bengali, Malayalam, Marathi and Tamil — even on slow 2G internet.
In July 2017, Google also rolled out its professional consulting services in India to work directly with large clients to offer IT-based consulting solutions. The company also see India as a prime market for its cloud services. Last year, Google also launched its first data centre in India.