International publishers forced to re-write approach in India

"According to Mr Seshadri, international publishers can expect to make 45 to 50 per cent gross profit margins in India, which translates into 10 per cent earnings before interest, tax, depreciation and amortisation. That compares with gross margins of 65 to 75 per cent and ebitda of 15 to 20 per cent in more developed markets such as the UK.

Copyright infringement is not the only hurdle in India. Academic publishers saw their market abruptly shrink by about 18,000 schools in February when the government decided all schools affiliated to the Central Board of Secondary Education should use only state-published textbooks.

Meanwhile, ministers have also decided to impose a 12 per cent tax on paper as part of the new national goods and services tax due to come into force on July 1.

Those buying the books have little sympathy for the publishing companies, though."