INDIA – OPPORTUNITIES &

POTENTIAL GROWTH SECTORS

SEPTEMBER 14, 2010IMTS CHICAGO

1

9.30 9.609.00

6.707.40

8.509.10 9.00

8.10

‐10.00

‐5.00

0.00

5.00

10.00

15.002005

2006

2007

2008

2009

2010

 EST.

2011

 EST.

2012

 EST.

2015

 EST.

INDIA

CHINA

USA

EURO ZONE

UK

S. KOREA

RUSSIA

BRAZIL

MEXICO

World Real GDP Growth in Annual Percentage

IMF DATA 2

9.9

4.46.5

9.9 9.7 10.1 9.8

-25

-20

-15

-10

-5

0

5

10

15

2020

07

2008

2009

2010

EST

.

2011

EST

.

2012

EST

.

2013

EST

.

CHINA INDIA JAPANBRAZIL MEXICO USARUSSIA EUROPE

OXFORD ECONOMICS DATA 3

Industrial Production Data -

%Change

Year Under 15 15-64 65+ Total

20002000 361361 604604 4545 10101010

20052005 368368 673673 5151 10931093

20102010 370370 747747 5858 11751175

20152015 372372 819819 6565 12561256

20202020 373373 882882 7676 13311331

DISTRIBUTION OF POPULATION BY AGE GROUP

64%

31%

5%

15‐64 0‐14 > 65

Young India -

Over

700 Million Consumers

Population Projections ( In Millions)

Median age of population is only 25

Presently Only 10 cars / 1000 people

4

Indian Machine Tool Import in Million US $ of TOTAL consumption, ~ 80% is imported (!)

36 67 71 87 7425 32 41 47 68123

204

336

364

187

140

199

280

224

156

59 96 94 114

103

0

50

100

150

200

250

300

350

400

2005‐06 2006‐07 2007‐08 2008‐09 2009‐10

USA SWITZERLAND JAPAN GERMANY ITALY

6.5%7.2%

IMTMA DATA

6

14.8816.54

20.90

27.01

34.2936.61

38.24

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

2002‐03 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09

7SIAM data

Automobile Sector Turnover in US $ Billion

4.41%

74.83%

4.03%

16.74%

2 WHEELERSFY2009~10 (10512889)FY2008~09 (8419792)

CHANGE 24.86%

PASSENGER VEH.CARS,MPV,SUV

FY2009~10 (2351240)FY2008~09 (1838593)CHANGE 27.88 %

C VFY2009~10 (566608)FY2008~09 (416870)

CHANGE 35.92 %

3 WHEELERSFY2009~10 (619093)FY2008~09 (497020) CHANGE 24.56 %

SIAM data 8

Auto Industry Market Segments for 2009-10 (April-March)

Total Production: 14,049,830 Y-O-Y Growth 25.7%

0.723

0.9891.2

1.3

1.541.77 1.83

2.35

0

0.5

1

1.5

2

2.5

2002

‐0320

03‐04

2004

‐0520

05‐06

2006

‐0720

07‐08

2008

‐0920

09‐10

Production  data  in million vehicle

Market Share DataMaruti Suzuki

Hyundai

Tata Motors

Mahindra

GM

Honda

Toyota

Ford

Fiat

Others

9SIAM data

Passenger Vehicles ( PVs)

203

275

353391

519549

417

566

0

100

200

300

400

500

600

2002‐03

2003‐04

2004‐05

2005‐06

2006‐07

2007‐08

2008‐09

2009‐10

Production data in ‘1000’ vehicles Market Share Data

Tata Motors

Mahindra

Ashok Leyland

Eicher

Force Motors

Piaggio

Swaraj Mazda

Others

India is the World’s 4th

Largest Truck Manufacturer

10SIAM

data

Commercial Vehicles ( CVs)

5.075.622

6.527.6

8.46 8.02 8.41

10.51

0

2

4

6

8

10

12

2002

‐0320

03‐04

2004

‐0520

05‐06

2006

‐0720

07‐08

2008

‐0920

09‐10

Production Data in Million Vehicles Market Share Data 

Hero Honda

Bajaj Auto

TVS Motors

Honda

Yamaha

Suzuki

Others

India is the World’s 2nd

Largest 2 Wheeler Market

11SIAM data

Two Wheelers

276

356 374434

556500 497

619

0

100

200

300

400

500

600

700

2002

‐03

2003

‐04

2004

‐05

2005

‐06

2006

‐07

2007

‐08

2008

‐09

2009

‐10

Production Data ‘1000’ vehicleMarket Share Data

Piaggio

Bajaj Auto

Mahindra

TVS Motor

Atul Auto

Scooters India

Force Motors

12SIAM data

Three Wheelers

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India: The global small car hub “

CARS FOR INDIA, CARS FOR THE WORLD”

Will produce 31% of world’s ‘A’

segment cars by 2013

GOVERNMENT OF INDIASIAMACMA

AMP 2016AMP 2016

Turnover to $145 bn

from $32 bn Export revenue to $35 bn

from $4.1 bnEmployment of 25 Million

By 2016 Automotive sector is expected to contribute

10 % of the GDP from 5% at present

On 29th

January 2007 Prime Minister released 10 years Automobile Plan 2006~16 to give a roadmap

to Indian automobile industry

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Auto Manufacturing Plan

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AMT-

CHENNAI TECHNOLOGY CENTRE

2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10

8.7

12

15

18 18.419.2

0

2

4

6

8

10

12

14

16

18

20

16

Auto Component Turnover in US $ Billion

18%

15%

3%

15%4%3%

%

2%5%

7%

TVS

MNCs

AMALGAMATION GP.

OTHERS

AMTEK

TATA GP.

UNORGANIZED MKT

RANE GP.

MUNJAL GP.

KALYANI GP.

0%

ENGINE PARTS31%

DRIVE TRANSMISSION& STEERING 

PARTS19%

BODY & CHASIS12%

SUSPENSION&

BRAKING PARTS12%

EQUIPMENT10%

ELECTRICAL PARTS9%

OTHERS7%

COMPREHENSIVE RANGE OF PRODUCTS

PRODUCTION WISE MKT SHARE

Over 2500 manufacturers spread across the country

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Auto Component Sector

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Auto cos. to invest US$ 30 b over next 4 years

period

US$ 55 million for expansion of Powertrain

facility in Rajasthan

Toyota is putting up 2nd

plant at an investment of US$ 700 million and additional investment of US$ 110 million to make engine and gear boxes for small car, Etios.

Daimler trucks is investing over US$ 1 billion for setting up plant near Chennai

Volvo –Eicher

JV will invest US$ 65 million for production and assembly of medium –

duty engines.

Ashok Leyland-

Nissan JV will invest US$ 500 million to make LCV and powertrain.Ashok Leyland will further invest US$ 435 million for Capex.

Bosch to invest US$ 435 million to expand in capacity and R&D.

Maruti

Suzuki to invest US$ 2 b for capex

& technological upgradation.

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New Investments in Auto Sector

67.5780.39

97.32

119.78

148.98

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.0020

07

2008

2009

2010

2011

TOTAL

RAILWAYS

POWER

ROADS &BRIGES

PORTS

AIRPORTS

FINANCE MIN. DATA

$ 66 bn

$ 167 bn

$ 79 bn

$ 22 bn

$ 8 bn

$ 514 bn

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Total US $ 514 Billion Planned Investments for Infrastructure Development in 11th 5 Year Plan (2007~2011)

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80.76

51.1630.44

0

50

100

STATE SECTOR CENTRALSECTOR

PRIVATESECTOR

TOTAL  162.36 GW

52.5% 34% 13.5%

104.4, 64%

36.95, 23%

4.56, 3%

16.43, 10%

THERMAL HYDRO

NUCLEAR RENW.

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PRESENT FUEL WISE INSTALLED CAPACITY IN

GW

INDIA RANKS 5TH

IN TERMS OF POWER GENERATION CAPACITY

Installed Capacity as of June 30, 2010

By the end of 11th plan annual per capita consumption will be around 1000 units.

Planned investments in power sector in 11th plan is close to US $ 200 b & US $ 250 b for 12th plan.

Over next 10 years period Nuclear power generation is going to attract an investment of US $10 b.

National Solar energy mission aims to increase the solar energy capacity from present 5 MW to 20 GW with planned investments of more than US$ 45 b.

59.7

15.6

3.3

14

THERMAL

HYDRO

NUCLEAR

RENEWABLE

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Planned Capacity Addition in 11th

Plan (2007~2012)

TOTAL 92.7 GW

Scale Of Opportunity

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WINDPOWER SCENARIO IN INDIA

INDIA RANKS 5th

POSITION IN THE WORLD

Aggregate installed capacity as on July 31st

2010-

12 GW

Estimated potential of Wind power in India > 48.5 GW

10 YEARS GROWTH OF INDIAN WIND MKT.CUMULATIVE INSTALLED CAPACITY

IN MW

Total of 19 Manufacturers With Multiple Plants

VestasWinwindSouthern WindfarmsSiva Wind TurbinesShriram

EPCRRB EnergyRegen

PowertechPioneer WinconLeitner

ShriramGamesha

Windturbines

SuzlonKenersys

IndiaGlobal WindpowerEssar

WindpowerEnercon

IndiaIndia Windpower

GE IndiaChiranjeevi

Wind

Inox

Wind

25

Wind Turbine Manufacturers in India

26

27

HYDERABAD(ANDHRA PRADESH)BANGALURU

( KARNATAKA)

KORAPUT(ORRISA)

MUMBAI& NASHIK(MAHARASHTRA)

LUCKNOW & KANPUR(UTTAR PRADESH)

Aerospace hub of India

Indian Aerospace Industry

Projected investment in Indian Aerospace segment -

$ 110 billion

$ 80 billion in procurement of new aircraft$ 30 billion in airport related infrastructure

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PASSENGERS ( IN MILLIONS) CARRIED AT MAJOR AIRPORTS

CARGO HANDLED ( IN 1000 TONNE ) AT INTERNATIONAL AIRPORTS

Indian Aerospace--Vision 2020

JV to assemble AW 119 helicopters in Hyderabad for Indian and global market.

Tata Advanced Systems tied up with Sikorsky to manufacture S-92 helicopters in India. Deal has been struck for $350 million and plant is set up in an SEZ at Hyderabad.First 19 seater

S-

92 aircraft would

be delivered by end of 2010.

HAL –

Rolls Royce 50:50 % JV in

Bangalore to manufacture civil aero engine components for exports.

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Opportunities In Aerospace Sector

First manned mission to moon by 2016. Project is likely to attract an investment of $ 3 billion.

ISRO is enhancing the capacity for commercial launching of Foreign satellites.

Quest bags contract from SAAB to manufacture and supply sheet metal parts for Boeing 787 Dreamliner

cargo doors.

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Opportunities In Aerospace Sector

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DEFENCE SECTOR

Achieving Self Reliance in Defence

21

25.5

3032.03

2007‐08 2008‐09 2009‐10 2010‐11

ANNUAL BUDGET IN US$ Bn PLANNED DEPARTMENT WISE % OF TOTAL DEFENCE EXPENDITURE FROM 

2011‐15

50

15

27

8

ARMY

NAVY

AIRFORCE

DEFENCE PRODUCTION + R&D

Likely Spending 11th

plan (2007-12)> US$100b 12th

plan (2012-17)> US $120b

3rd

Largest Importer of Defence

Hardware

32SOURCE-

MINISTRY OF DEFENCE

40 Ordnance Factories8 Public Sector Undertakings50 R & D Laboratories.

Opening up of Defence Sector –

100% equity participation from Indian Company with 26% FDI ( likely to increase) permissible under license.

30% Defence Offset clause ( Deal value > US$ 75 million)-Will drive modernization of defence

industrial base and create an opportunity worth more than US$ 11 b.

This ‘BUY & MAKE”

policy applies to all capital acquisitions from Foreign Suppliers. They are obligated to purchase directly, or execute export orders for defence products and components manufactured ( or services provided) by Indian Defence Industries.

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Defence Sector Highlights

CHENNAI

AMT- CHENNAI TECHNOLOGY CENTRE ( CTC )

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AMT -

Chennai Technology Centre

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January 20 -

26, 2011 at Bangalore, India

South East Asia’s biggest machine tool event

Participation of over 940 companies from India and 24 overseas countries, with over 80,000 business visitors. Also, for 2011, there will be an AMT USA Pavilion and Mini Trade Mission in Chennai.

AMT-

India Staff at your service

ARUN MAHAJANTel-

+91 9790887032arunmahajan@amtindia.org

PRAKASH ANTONYTel-

+91 9677095472prakash@amtindia.org

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THANK YOU

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And see you in India soon…