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Sectoral Snippets
About Sectoral Snippets
Sectoral Snippets is an India-focused, monthly, freely-distributable newsletter brought out by
KPMG in India. This newsletter provides an overview of the Indian economy in the form of
news-briefs from across key sectors.
Contact [email protected] if you are interested in receiving this newsletter on a
regular basis, or wish to unsubscribe.
Table of Contents
1. Indian Economy 3
2. Auto and Auto Components 4
3. Banking and Financial Services 5
4. Consumer Markets and Retail 6
5. Hospitality 7
6. IT / ITeS 8
7. Media 9
8. Oil and Gas 10
9. Pharma 11
10. Power 12
11. Real Estate and SEZs 13
12. Telecom 14
13. Transport and Logistics 15
Sectoral Snippets, Issue 37
Indian�policy�makers�are�facing�a�fresh�set�ofchallenges�given�the�improved�industrial�growthrate�and�higher�inflationary�pressures,�in�termsof�timing�and�planning�a�gradual�withdrawal�oftheir�accommodative�liquidity�measures.�Thegovernment�had�provided�monetary�and�fiscalmeasures�accounting�to�around�12�percent�ofthe�country’s�GDP�over�the�last�year,�to�shieldthe�economy�in�the�wake�of�the�globaleconomic�crisis.��
In�other�developments,�a�recent�RBI�report�onthe�Indian�banking�sector’s�progress�and�trendssummarises�the�impact�of�the�global�crisis�onthe�sector,�and�the�measures�put�in�place�toresolve�them.�The�report�observes�that�whilecredit�growth�has�slowed,�bank�profits�grew�by23�percent�and�there�is�good�scope�for�morefinancial�inclusion.�
I�hope�you�find�this�edition�of�Sectoral�Snippetsuseful.
Regards,Russell
Russell Parera
Chief Executive Officer
KPMG in India
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
The�Reserve�Bank�of�India�(RBI),�India’s�central�bank�announced�the�second
quarter�review�of�Monetary�Policy�2009-10�last�month.�
In�its�monetary�policy�review,�RBI�increased�the�statutory�liquidity�ratio�(SLR)�by
100�basis�points�while�maintaining�status�quo�in�key�policy�rates�and�the�cash
reserve�ratio�(CRR).�It�has�also�revised�its�inflation�forecast�upwards�to�6�percent
by�the�end�of�the�current�fiscal.
The�bank�announced�that�local�banks�would�have�to�boost�their�reserves,�partly
through�the�purchase�of�Government�bonds,�in�an�effort�to�withdraw�liquidity
from�the�system�and�to�ward�off�the�renewed�inflation�threat.
According�to�the�RBI,�6.1�percent�growth�in�the�first�quarter�of�2009-10�which�is�a
modest�recovery�over�the�5.8�percent�recorded�in�the�preceding�two�quarters�of
2008-09;�represents�a�sustained�but�gradual�recovery.
The�RBI�had�adopted�an�accommodative�monetary�policy�stance�in�response�to
the�global�financial�crisis,�particularly�post-September�last�year.�While�the�aim�of
the�policy�has�been�to�provide�ample�rupee�liquidity,�ensure�comfortable�dollar
liquidity�and�maintain�a�market�environment�conducive�for�the�flow�of�credit�to
the�productive�sectors,�thereby�facilitating�a�revival�in�the�domestic�economy,�the
RBI�has�now�taken�steps�to�tighten�this�policy.
Although�the�key�policy�rates�and�the�cash�reserve�ratio�were�left�unchanged,
investor�sentiment�is�likely�to�have�been�impacted�as�the�1�percent�hike�in�SLR�is
expected�to�drain�liquidity�by�over�USD�6�billion�(INR�300�billion)�from�the�system.
Further,�availability�of�funds�is�likely�to�become�more�expensive�for�certain�sectors
with�the�hike.
Nonetheless,�the�steps�taken�by�the�RBI�indicate�that�the�attention�of
policymakers�has�now�shifted�from�managing�the�crisis�to�managing�the�recovery
without�compromising�on�stability.
Indian EconomyPage 3 of 19
Analyst: Asmita Deshmukh©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“Global prospects matter for thetrajectory of our performance, butI think domestic factors willmatter much more going forward.Getting from 6 percent to 8percent GDP growth has to bedriven by domestic consumptionand domestic investment.” D. Subbarao, RBI Governor
(Source: Business World, Time Wasn’t Ripe for a CRRHike, October 31, 2009)
• Nissan to source 80 percent of components for new small car from
India
Japanese�automobile�major�Nissan�Motor�Company�is�reportedly�planning�tosource�about�80�percent�of�components�for�its�new�small�car�from�local�vendorsin�India.�The�company�is�expected�to�commence�production�of�the�new�smallcar�in�May�2010�at�a�new�manufacturing�facility�in�Chennai.�The�facility�isreportedly�being�built�by�Nissan,�and�its�partner�Renault�S.A.�Nissan�is�likely�toexport�the�car�from�India�to�Europe,�Africa�and�the�Middle�East.
• Volkswagen begins sourcing components from India
German�car�manufacturer�Volkswagen�(VW)�has�reportedly�started�to�sourcecomponents�including�light�systems,�plastic-related�items,�and�metal�from�Indiafor�its�European�factories.�VW’s�upcoming�hatchback�Polo�is�likely�to�have�a�50percent�localization�rate�initially,�which�is�to�be�ultimately�increased�to�75percent.
The�company�is�also�expected�to�increase�the�number�of�dealers�in�India�from120�to�200�by�2012.�This�development�concurs�with�VW's�aim�of�sourcing�USD1.46�billion�worth�of�components�from�India�for�its�globally�built�cars�by�the�endof�2010.
• Tata Motors acquires Hispano Carrocera
Indian�automaker�Tata�Motors�Limited,�which�owned�a�21�percent�stake�inSpanish�bus�manufacturer�Hispano�Carrocera�SA,�has�reportedly�purchased�theremaining�stake�of�79�percent�in�Hispano�after�a�mutual�pact�with�Hispano’sother�shareholding�company�Investalia�SA,�Spain.�The�size�of�the�deal�remainsundisclosed.�As�per�a�statement�issued�by�Tata�Motors,�the�company�plans�tofurther�strengthen�the�ongoing�initiatives�to�improve�operational�efficiencies�suchas�productivity�improvement,�cost�reduction,�and�new�product�development,�toimprove�the�market�share�of�the�company�and�enhance�brand�value.
• Audi plans to expand its presence in India
German�automobile�manufacturer�Audi�has�reportedly�expressed�intentions�toexpand�its�presence�in�India�and�assemble�more�models�in�the�country.�Thecompany�is�expected�to�increase�its�dealership�network�from�the�current�12�upto�18�dealers�by�2011.�“Our�target�is�to�grow�by�over�50�per�cent�both�in�thisyear�and�2010.�In�2008,�we�sold�around�1,050�units�in�India�and�this�year�ourtarget�is�to�sell�1,600�units�and�then�continue�the�momentum�next�year”,�MartinBirkner,�Audi�India,�reportedly�commented.
• Fiat likely to manufacture LCVs in India
It�has�been�reported�that�Italy-based�carmaker�Fiat�SpA�(Fiat)�is�planning�tomanufacture�light�commercial�vehicles�with�a�capacity�of�between�0.8�tonnesand�1.8�tonnes�in�India.�As�reportedly�commented�by�Silverio�Bonfiglioli,�FiatGroup�Automobiles�International’s�Chief�Operating�Officer,�“We�have�sufficientcapacity�to�build�light�commercial�vehicles�in�India.�Our�passenger�car�segmentis�growing�at�a�good�rate�and,�as�the�market�develops�for�Fiat�vehicles,�wemight�think�of�manufacturing�light�commercial�vehicles�in�India.”
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Auto and Auto Components
Analyst: Ranjeet Javeri and Kudrat Puri©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“India in the future is one of thebiggest markets. Our estimationsays that India will be the fifthlargest automobile market in theworld by 2015” Benoit Tiers, Managing Director, Audi India
(Source: Economic Times, India to be fifth-largest automkt by 2015: Audi India MD, October 7, 2009)
• Reserve Bank of India (RBI) announces second quarter review of
the monetary policy 2009-10
RBI�in�its�second�quarter�review�of�the�monetary�policy�2009-10�has�kept�allmajor�policy�rates�like�Bank�rate,�CRR,�repo�and�reverse�repo�rates�unchangedat�6.0�per�cent,�5.0�per�cent,�4.75�per�cent�and�3.25�per�cent�respectively.However,�the�RBI�has�increased�the�Statutory�Liquidity�Ratio�(SLR)�from�24percent�to�25�percent,�effective�from�November�7,�2009.�Meanwhile,�the�RBIhas�elucidated�that�the�monetary�policy's�priority�will�be�to�contain�theinflationary�expectation,�which�is�expected�to�touch�6.5�percent�by�March�2010.��
The�RBI�has�also�advised�banks�to�increase�the�provisioning�cover�to�not�lessthan�70�percent�including�the�specific�and�floating�provisions.�Further,�the�RBIhas�increased�the�provisioning�requirement�for�advances�to�the�commercial�realestate�sector�from�the�present�level�of�0.4�percent�to�1�percent.�
• Reliance Capital plans to venture into the investment banking
business
Reliance�Capital�through�its�wholly�owned�subsidiary�Reliance�Securities�isplanning�to�enter�into�a�strategic�alliance�with�Japan-based�investment�bankDaiwa�Securities,�to�set�up�an�investment�banking�business�in�India.�RelianceSecurities�has�already�received�the�merchant�banking�license�from�SEBI.�Thedeal�will�enable�Reliance�Securities�to�tap�Daiwa’s�high�net�worth�clients�whoare�looking�to�invest�outside�their�country.�
Reliance�Capital�plans�to�leverage�its�existing�relationships�across�corporateIndia�and�a�wide�distribution�network�to�create�a�significant�presence�in�theinvestment�banking�business.�
• Standard Chartered receives RBI approval to list on the Indian stock
exchanges
UK-based�Standard�Chartered�(StanChart)�Group�has�received�RBI�approval�forlisting�on�the�country's�stock�exchanges.�The�bank�is�planning�to�list�its�shares�inthe�Indian�stock�exchange�market�by�issuing�Indian�Depository�Receipts�(IDR).India�is�the�second�largest�market�for�StanChart�after�Hong�Kong�and�the�listingcan�provide�an�opportunity�to�grow�its�business�and�brand�presence�in�theIndian�financial�services�market.�If�the�proposal�is�approved�by�the�bank’s�board,StanChart�is�likely�to�be�the�first�foreign�entity�to�use�the�IDR�route�and�raisecapital�in�India.�
• Aditya Birla Private Equity raises USD 120 million through its
maiden fund
Aditya�Birla�private�equity�has�raised�USD�120�million�to�invest�in�companiesengaged�in�infrastructure,�logistics,�education,�and�healthcare�business.�Thecompany�plans�to�raise�an�additional�USD�100�million�by�the�end�of�2009.�
The�USD�29�billion�Adiya�Birla�Group�is�planning�to�merge�all�its�financial�servicebusinesses�comprising�of�asset�management,�insurance,�private�equity,�stockbroking�and�distribution�into�a�subsidiary�of�the�parent�Aditya�Birla�Nuvo�tounlock�its�shareholders’�value.
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Banking and Financial Services
Analyst: Kunal Jain and Ruchika Anand©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
35%
7%
-4%
-23%
4%
-23% -25%
-9%-5%
-15%
29%19%
14% 16%9%
29%35%
12%
-23% -27%
-16%-6%
-12% -17%-18%
-5%
-40%
-20%
0%
20%
40%
Sep-08
Oct -08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Private Players LIC
Annual Premium Equivalent (APE) YOY
Growth
Source:�IRDA�and�India�Infoline�Research,�InsuranceMonthly�Update,�October�26,�2009�
• UK’s leading shoe retailer Clarks enters into a JV with India’s
Future Group
One�of India’s�largest�retailing�house,�Future�Group,�and�a�leading�UK�shoeretailer,�Clarks,�have�agreed�to�form�a�JV�to�retail�footwear�in�India.�WinnerSports,�a�subsidiary�of�the�Future�Group’s�firm,�Pantaloon�Retail,�is�likely�to�forma�JV�with�Clark�inorder�to�launch�the�UK�brand�in�India�in�2011�throughstandalone�stores�and�shop-in-shop�formats�in�large�retail�stores.�The�twopartners�are�currently�putting�in�place�a�strong�sourcing�infrastructure�to�identifyvendors�and�manufacturers�to�source�products�for�exports.�Future�group�isbanking�heavily�on�the�experience�and�design�capability�of�the�UK�shoe�retailer,which�sells�over�1,000�different�styles�of�footwear.
• India to be a sourcing hub for Parker pens
The�US-based�Newell�Rubbermaid�plans�to�make�India�a�sourcing�hub�for�itspremium�writing�instruments�brand,�Parker.�The�company�also�plans�tocollaborate�with�its�Indian�partner,�the�Luxor�Group,�to�launch�Parkeraccessories�that�include�men’s�jewellery,�leather�products�and�eyewear.�Parkerpen�claims�to�control�over�50�percent�of�the�premium�segment�market.�Thebrand�is�currently�worth�USD�16�million�in�India�and�is�expected�to�become�aUSD�63.7�million�brand�in�the�next�five�years�through�portfolio�expansion.�Luxor,which�sells�its�entire�Indian�annual�production�of�12�million�Parker�pens�in�thedomestic�market,�plans�to�export�pens�to�Europe,�North�America,�Japan,�Chinaand�other�countries�from�2010.�
The�company�also�has�plans�to�spend�USD�21.2�million�to�expand�manufacturingand�retail�base�of�Parker�in�India�in�the�next�15�months.�While�half�theinvestment�is�expected�to�be�used�to�set�up�a�new�pen-making�facility�at�Noidawith�a�capacity�of�100�million�units,�the�other�half�is�likely�to�go�towards�opening100�exclusive,�shop-in-shop�stores�across�the�country.�The�domestic�writinginstruments�market�is�valued�at�USD�425�million,�70�percent�of�which�is�in�theorganized�sector.
• Global Beer-maker Carlsberg expands Indian operations
The�Denmark-based�global�beer-maker,�Carlsberg�has�started�work�on�its�fifthbrewery�in�India,�indicating�the�fastest�ramp-up�by�any�international�brewer�inthe�Indian�market.�The�USD�20�million�plus�brewery�is�expected�to�come�up�inIndia’s�southern�state�Andhra�Pradesh�with�monthly�capacity�of�half-a-millioncases.�Carlsberg�has�acquired�40�acres�of�land�in�India’s�Medak�district�andexpects�to�put�the�plant�on�stream�within�12�months.�In�the�third�year�of�Indianoperations,�Carlsberg�already�has�four�existing�breweries�in�Rajasthan,Maharashtra,�Himachal�Pradesh�and�West�Bengal�with�a�combined�capacity�ofnearly�10�million�cases�of�7.8�liters�each�annually.�India�is�one�of�the�fastestgrowing�beer�markets,�where�consumption�is�projected�to�rise�15�percentannually�in�the�medium-term.
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Consumer Markets and Retail
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Analyst: Sonia Topiwala
“Indian market is gettingimportant day by day. Currently itsshare in the global sales is lessthan 1 percent, but our plan is toreach 3 percent in 2-3 years” Kenichi Tanaka, Managing Director, Fujifilm India (Source: Economic Times, Fujifilm's Indian share toglobal biz to treble in 3 yrs, October 01, 2009)
• India's Taj Group to enter the Philippines
Indian�hotels�are�eyeing�the�expansion�opportunities�in�Philippines.��Thecompany�is�likely�to�launch�its�budget�hotel�brand�Ginger�in�the�country.�Thebrand�is�built�around�the�concept�of�limited-services�at�affordable�prices.�It�islooking�to�expand�through�green�field�projects�and�joint�ventures�as�well.
• Oberoi Hotels to expand in Qatar
Oberoi�Hotels,�has�signed�a�Memorandum�of�Understanding�(MOU)�withQatar’s�real�estate�developer�Al�Wa'ab�to�develop�a�five-star�property�in�the�AlWa'ab�City.�As�per�the�MOU,�Oberoi�group�is�likely�to�develop�a�225�roomluxury�property�which�is�likely�to�include�30�serviced�apartments�and�premiumoutlets�for�fine�dining.�The�hotel�is�expected�to�be�operational�by�2014.�
• Radisson on an expansion spree in Chennai
Radisson�Hotels�plans�to�develop�a�162-room�hotel�project,�adjacent�to�itsexisting�hotel�in�Chennai.�It�is�likely�to�invest�USD�31.9�million�in�the�project.�Thehotel�project�of�Radisson�is�scheduled�to�be�operational�by�December�2010.�Italso�plans�to�add�another�30�rooms�to�its�existing�inventory�in�Chennai.
• Starwood to open Westin Resort in Kolkata
Starwood�Hotels�&�Resorts�Worldwide�has�tied-up�with�Shristi�InfrastructureDevelopment�Corporation�to�develop�a�hotel�in�Kolkata�under�the�Westin�brand.The�company�is�likely�to�invest�USD�170�million�for�the�project�and�is�scheduledto�be�completed�by�the�end�of�2011.�This�proposed�business�hotel�is�likely�to�bea�part�of�a�mixed�use�development�in�Rajarhat,�Kolkata.
• UK’s Duet hotels to add 5000 rooms in India
Duet�India�Hotels,�the�hospitality�arm�of�UK-�based�Duet�Group�is�looking�for�asuitable�location�to�expand�its�portfolio�in�India.�The�company�plans�to�add�morethan�1,300�rooms�by�the�end�of�this�fiscal.�As�a�part�of�its�expansion�strategy,�itplans�to�develop�20-�30�mid-market�and�premium�segment�hotels�with�aninventory�of�5,000�rooms�in�the�next�two�to�three�years.�Additionally,�it�has�alsoentered�into�a�franchise�agreement�with�Starwood�Hotels�&�Resorts�Worldwideto�open�the�Four�Points�hotels�by�Sheraton.�The�company�has�opened�its�firstproperty�in�Jaipur�and�is�also�developing�four�such�properties�in�Ahmedabad,Hyderabad,�Indore�and�Pune.�
Page 7 of 19
Analyst: Pallavi Phatak
Hospitality
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“Occupancies in Gurgaon andBangalore have already witnessedan improvement and I believe thewinter season would result inbetter times for the industry. Therecent RBI notification which hasdelinked hotels from the ‘high riskcategory’ of real estate businesswill provide hospitality firms witheasy access to funds for hoteldevelopment” Vivek Nair, Vice Chairman & Managing Director, LeelaHotels & Resorts(Source: Economic Times, Hotel industry to add 55000rooms in 4 years, Oct 03, 2009)
• Cognizant buys UBS’s Indian captive for USD 75 million
Cognizant�Technology�Solutions�(Cognizant)�has�acquired�Switzerland-basedUBS’�captive�center�in�India�for�about�USD�75�million.�It�has�also�won�a�five-yearoutsourcing�contract�worth�upto�USD�442�million�along�with�the�deal.�Cognizantbelieves�that�the�acquisition�would�expand�its�Business�Process�Outsourcing(BPO)�practice�and�also�help�it�strengthen�its�relations�with�UBS,�an�existingclient.
• TechM wins USD 50 million Saudi Telecom Deal
Tech�Mahindra�(TechM)�has�won�a�deal�with�Saudi�Telecom,�which�is�rolling�outits�GSM�services�in�Bahrain.�The�deal�that�includes�IT�implementation�andmanaged�services�is�estimated�to�be�in��the�range�of�USD�40-50�million.�SaudiTelecom�has�a�presence�in�Indonesia,�Malaysia,�Turkey,�South�Africa,�Lebanon,Jordan,�and�Kuwait.�In�India,�it�has�a�presence�through�a�25�percent�stake�inMaxis�Telecom,�a�Malaysian�operator�with�a�majority�stake�in�Aircel.�
• TCS wins outsourcing deal from Singapore-based People's
Association
Tata�Consultancy�Services�(TCS)�has�won�a�two-year�multi-�million-dollar�dealfrom�Singapore-based�People's�Association�(PA)�for�application�managementservices.�As�per�the�terms�of�the�deal,�TCS�would�develop�and�maintain�PA’sbusiness�and�citizen-centric�applications,�including�mission�critical�applications.PA�is�a�statutory�board�under�Singapore's�Ministry�of�Community�Development,Youth�and�Sports.�
TCS�has�established�its�presence�in�Singapore�for�over�20�years,�and�has�over30�customers�including�Singapore�Airlines,�Citibank�Asia�Pacific�and�GeneralElectric.
• Indian IT sector spending to touch USD 37.6 billion by 2013
According�to�a�study�conducted�by�IDC-Microsoft,�India's�IT�spend�is�expectedto�touch�USD�37.6�billion,�accounting�for�2.3�percent�of�the�GDP�by�2013.�ITspending�is�likely�to�reach�about�USD�21�billion�in�2009,�and�is�expected�togrow�to�USD�37.6�by�2013�at�a�compounded�growth�rate�of�growth�of�11.8percent.�As�per�the�study,�IT�as�a�percentage�of�India’s�GDP�would�increasefrom�1.8�percent�now�to�2.3�percent�by�2013.�The�study�also�notes�that�thisspending�is�likely�to�create�nearly�7,000�new�businesses�and�add�0.32�millionjobs�between�2009�and�2013.
• MphasiS plans expansion in India
India-listed�subsidiary�of�Hewlett�Packard,�MphasiS�Ltd.�plans�to�increase�itsfocus�on�domestic�IT�market.�It�is�looking�for�business�from�verticals�such�ashealthcare,�government,�telecom�and�banking�and�financial�services.�It�has�asignificant�presence�in�the�Indian�BPO�market�but�derives�less�than�a�10th of�itstotal�IT�revenues�from�the�Indian�market.
Page 8 of 19
Analyst: Parnika Patil
IT / ITeS
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“We would like to grow ourdomestic business in India. Ibelieve that there are lot ofservices contracts in the Indianmarket, which truly reflect bestglobal practices that could beexported” Ganesh Ayyar, Chief Executive Officer, MphasiS (Source: The Hindu Business Line ‘Mphasis plansexpansion in India’, October 14, 2009)
• Videocon launches DTH services in India
Videocon�Group�has�launched�its�DTH�services�in�India�under�the�brand�nameD2H.�The�group�has�launched�the�DTH�services�through�three�alternativeplatforms:�DTH-enabled�satellite�DVD,�DTH-enabled�LCD�TV�and�DTH-enabledTV�sets.�The�group�expects�to�have�2�million�subscribers�in�one�year.�Withapproximately�16�million�DTH�subscribers�in�the�country,�Videocon�Group�is�thesixth�largest�private�DTH�player�in�the�market.
• Dainik Bhaskar gets approval for Foreign Equity Proposal
Dainik�Bhaskar�group�has�received�approval�from�India’s�Foreign�InvestmentPromotion�Board�(FIPB)�to�increase�foreign�equity�in�the�company.�DB�Corp�Ltd.the�holding�company�of�the�group�is�expected�to�increase�foreign�shareholdingin�the�company�from�a�current�7.14�percent�to�26�percent.�Synergy�Media,�theFM�Radio�arm�of�the�group�is�also�expected�to�increase�foreign�shareholding�to17.9�percent�from�7.1�percent.
• Cinepolis entered in a deal with Mukta Arts
Cinepolis,�the�Latin�American�multiplex�chain,�has�entered�into�a�three�yearcontract�with�the�distribution�arm�of�Mukta�Arts�to�supply�films�for�its�upcomingrollout�of�multiplexes�across�the�country.�The�tie-up�also�opens�avenues�forIndian�movies�going�overseas�for�international�distribution�to�the�Latin�andSouth�American�markets�where�Cinepolis�has�a�strong�presence.�Cinepolis�Indiais�expected�to�build�110�multiplexes�in�eight�cities�over�two-three�years�andeventually�scale�upto�500�screens�in�40�cities�by�2017.
• Mudra forms a joint venture with Clear Channel
The�Mudra�Group�has�launched�an�Out-of-Home�(OOH)�venture�under�an�equalratio�joint�venture�with�Clear�Channel�Outdoor.�The�joint�venture�Clear�ChannelMudra�LLP�is�expected�to�leverage�Clear�Channel’s�global�resources�andMudra’s�local�expertise�to�offer�OOH�solutions�in�the�country.�Clear�Channel�hasover�1�million�displays�in�50�countries�and�has�partnerships�with�over�270airports�while�Mudra�group�has�its�presence�in�13�states�across�the�country.
• Sun Direct plans to invest USD 300 million
Sun�Direct,�an�80:20�joint�venture�between�the�Sun�Group�and�Astro�Group�ofMalaysia,�plans�to�invest�USD�250�-�300�million�in�the�next�4-5�years�to�grow�itssubscriber�base.�The�Direct�to�Home�(DTH)�service�provider�currently�has�asubscriber�base�of�4.3�million�and�aims�to�reach�6�million�subscribers�by�the�endof�this�fiscal�and�10�million�in�the�next�five�years.�The�100�percent�debt-freecompany�is�also�considering�raising�money�from�the�stock�market�in�the�nextfiscal.
Page 9 of 19
Media
Analyst: Mehul Desai©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“Market share growth is our firstpriority. Quality and service is nota problem. But competition withcable operators on price-points isthe biggest challenge. Theregulations should facilitate equityin pricing, be it cable operators,CAS or DTH. If the industry has togrow like the telecom sector,there has to be a level playingfield. It is then that the DTHsegment will get its inflex pointand start growing rapidly” Tony D’Silva, COO, Sun Direct
(Source: Economic Times, Sun Direct to invest USD 300million over next 5 yrs, October 10, 2009)
• NELP VIII receives lukewarm response
India’s�largest�oil�and�gas�auction�New�Exploration�Licensing�Policy�(NELP)round�VIII�has�received�a�lukewarm�response�from�Exploration�and�Productioncompanies.�NELP-VIII�failed�to�attract�the�kind�of�interest�that�the�Ministry�ofPetroleum�and�Natural�Gas�(MoPNG)�had�hoped�for.�The�number�of�bidders�wassubstantially�lower�than�the�last�round�and�once�again,�there�was�little�tangibleinterest�shown�by�the�global�majors,�such�as�Shell,�ExxonMobil,�Chevron,�etc.This�was�not�unexpected,�since�in�the�past�as�well,�the�big�global�players�seemto�prefer�large,�already-discovered�fields.�NELP�VII�received�76�bids�for�36�out�ofthe�70�blocks�on�offer.
• GAIL looking to expand operations through partnerships
Gas�Authority�of�India�Ltd.�(GAIL)�has�entered�into�its�first�foreign�joint�venture(JV)�with�China�Gas�Holdings�Ltd.�Such�alliances�are�expected�to�help�GAIL�gainan�entry�in�the�international�arena.�Alongside�this,�GAIL�has�also�signed�aMemorandum�of�Understanding�(MoU)�with�Vadodara�Mahanagar�Seva�Sadan(VMSS)�for�the�distribution�of�natural�gas�to�use�in�residential,�commercial�andindustrial�sectors.�In�addition�to�this,�the�firms�are�also�expected�to�supplyCompressed�Natural�Gas�(CNG)�and�Auto�Liquefied�Petroleum�Gas�(LPG)�to�theautomotive�sector�in�Gujarat.
• Cairn to sell crude to private refiners
Exploration�and�Production�firm,�Cairn�India�Ltd.�(Cairn)�has�received�thegovernment’s�nod�to�sell�crude�oil�to�private�refiners.�This�permission�is�likely�tohelp�Cairn�secure�a�better�price�for�the�crude�produced�at�the�Barmer�block�inRajasthan.�While�Indian�Oil�Corporation�(IOC),�Hindustan�Petroleum�CorporationLtd.�(HPCL)�and�Mangalore�Refinery�&�Petrochemicals�Ltd.�(MRPL)�are�thegovernment�nominees,�Reliance�Industries�Ltd.�(RIL)�and�Essar�Oil�Ltd.�(EOL)are�the�only�two�private�refiners�in�the�country�to�receive�Cairn�crude.�
• Hardy abandons KG well
British�explorer,�Hardy�Oil,�has�abandoned�exploration�of�Krishna�Godavari�(KG)D9�well.�Hardy�owns�a�10�percent�stake�in�the�field�and�along�with�partner�RIL,had�planned�a�four-well�drilling�programme�at�D9�in�the�KG�basin;�but�has�nowdiscontinued�drilling�at�the�KGD-A1�well�as�it�encountered�poor�reservoir�sandsin�the�middle�and�lower�Miocene�target�levels.�Hardy�had�earlier�this�yearestimated�the�prospective�resources�at�Block�D9�at�10.8�trillion�cubic�feet�of�gasand�143�million�barrels�of�oil�which�were�almost�equal�to�the�reserves�of�the�KG-D6�block.
Page 10 of 19
Oil and Gas
Analyst: Sidharth Balakrishna and Suman Lala©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“We did not find a reservoir ofgood quality, so we haveabandoned this well. We arelooking at the data to plan ournext drilling sequence. So far, wehave drilled nothing in this block” Yogeshwar Sharma, COO, Hardy Oil
(Source: The Economic Times, RIL slumps four percentas Hardy boys pull out of KG-D9 well, October 24,2009)
• Merck acquires Indian bioscience company
Merck�Specialities�Private�Limited,�the�wholly-owned�subsidiary�of�Merck�KGaAin�India,�announced�the�acquisition�of�Bangalore�Genei�(India)�Private�Ltd.(BGIP),�a�bioscience�company�that�was�a�part�of�the�Sanmar�Group.�BGIPfocuses�on�the�development,�production�and�marketing�of�products�forproteomic�and�genomic�research�and�reportedly�generated�revenues�of�USD�4.3million�in�FY09.�Merck�is�expected�to�further�strengthen�its�presence�in�thebioscience�segment�in�India�by�combining�BGIP's�activities�with�its�existingbioscience�business.
• Hospital chains on an expansion spree
The�healthcare�industry�in�India�is�witnessing�expansion�plans�by�major�hospitalchains�who�are�trying�to�capitalize�on�the�growing�demand-supply�gap�in�healthcaredelivery.�
Apollo�Group,�one�of�the�largest�hospital�chains�in�India,�reportedly�plans�to�add2,000�beds�to�its�country-wide�inventory.�The�plan�is�expected�to�involveinvestments�to�the�tune�of�USD�319–383�million�over�the�next�2�years.�The�groupplans�to�open�at�least�one�hospital�every�three�months�for�the�next�one�year.�
Meanwhile,�Max�hospitals�has�also�reportedly�lined�up�investments�of�close�toUSD�128�million�to�expand�its�bed�capacity�by�1,200�beds�to�over�2,000�by�2011.Recently,�in�August,�Fortis�Healthcare�agreed�to�acquire�10�hospitals�fromWockhardt,�which�is�expected�to�increase�its�bed�capacity�by�1902�beds�to�~5180beds.
• Glenmark Generics files for IPO to raise up to USD 121 million
Glenmark�Generics�Limited.�(GGL),�a�subsidiary�of�Glenmark�PharmaceuticalsLimited�(GPL),�has�reportedly�filed�the�draft�red�herring�prospectus�with�theSecurities�and�Exchange�Board�of�India�for�an�initial�public�offer�(IPO).�Thecompany�expects�to�raise�up�to�USD�121�million�through�this�route.�The�fundsare�likely�to�be�utilized�for�funding�the�equity�investment�in�its�subsidiaryGlenmark�Finance�SA,�Switzerland,�for�part�payment�of�the�loan�as�well�as�forgeneral�corporate�purposes.�Through�the�IPO,�GPL�is�expected�to�dilute�a�15–20percent�stake�in�the�generics�arm,�which�was�spun-off�into�a�separatesubsidiary�last�year.
• GE, Wipro planning to extend healthcare partnership
GE�Healthcare,�a�part�of�US�conglomerate�General�Electric,�has�announced�itsplans�to�integrate�three�of�its�standalone�healthcare�subsidiaries�—�GEHealthcare�Life�Sciences,�GE�Healthcare�Medical�Diagnostics�and�GE�MedicalSystems�India�—with�the�49:51�Joint�Venture�(JV)�Wipro-GE�Healthcare.�Theintegration�into�a�single�entity�is�likely�to�help�GE�to�consolidate�its�presence�inthe�USD�3�billion�medical�devices�market�in�India,�which�has�reportedly�beengrowing�at�12–13�percent�per�annum.�The�company�expects�to�achieve�effectivemanagement,�resource�mobilization�and�higher�growth,�through�Wipro�GEHealthcare’s�wide�distribution�network.
Page 11 of 19
Pharma
Analyst: Nandita Kudchadkar and Parnika Dayal
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“We feel that, going forward,more innovation will betransported from India to the US,particularly in the healthcarespace.” Jeffrey Immelt, Chairman and CEO, GE
(Source: The Economic Times, GE, Wipro join hands forhealthcare push, October 3, 2009)
• Toshiba-JSW JV to commence work
The�Joint�Venture�(JV)�between�Japanese�major�Toshiba�Corporation�and�SajjanJindal-led�Jindal�South�West�(JSW)�Group,�which�is�setting�up�a�USD�213�millionpower�plant�equipment�manufacturing�unit�in�Chennai,�is�expected�to�start�workby�December�2009.�The�JV�shall�manufacture�steam�turbines�and�generators�forthermal�power�plants�and�is�expected�to�have�a�total�capacity�of�3000�MW.�Thefirst�phase�is�expected�to�be�commissioned�by�2011�and�the�second�by�2012.
• India to allocate new site to Russia for power project
India�is�likely�to�provide�Russia�with�land�in�West�Bengal�for�a�second�powerproject.�The�Haripur�site�in�Bengal�with�a�capacity�to�house�up�to�eight�Russian‘WER’-series�reactor�units,�is�being�considered�for�the�project.�Earlier,�theKoondankulam�site�in�Tamil�Nadu�had�been�allocated�to�Russia�for�a�powerproject.�The�first�phase�of�the�Koondankulam�project�is�in�advanced�stages�ofcommissioning,�and�the�contracts�for�the�second�phase�are�expected�to�befinalized�soon.�
• India plans to establish eight ultra supercritical power plants
The�Government�is�planning�to�establish�eight�ultra�supercritical�power�plants(USCPPs)�with�800�MW�capacity�each.�In�addition,�it�is�also�planning�tomandate�equipment�manufacturers�to�establish�manufacturing�units�in�thecountry�to�cater�to�these�projects.�As�the�USCPPs�operate�at�a�temperature�andpressure�above�the�critical�point�of�water,�they�offer�higher�efficiencies,�and�useless�coal�use�per�megawatt�hour.�Such�units�are�thus�preferred�across�China,�USand�Europe�to�conventional�boiler�units.�
• RFQs for UMPPs expected by January, 2010
The�Request�for�Qualifications�(RFQs)�for�four�ultra�mega�power�projects(UMPPs)�are�expected�by�January�2010.�Two�of�the�4,000-MW�projects�areplanned�in�Orissa,�and�one�each�in�Andhra�Pradesh�and�Tamil�Nadu.�Till�date,four�UMPPs�have�been�awarded�by�the�Centre,�of�which�three�[Sasan�(MadhyaPradesh),�Krishnapatnam�(Andhra�Pradesh)�and�Tilaiya�(Jharkhand)]�have�beenbagged�by�Reliance�power�and�one�[Mundra�(Gujarat)]�by�Tata�Power.
Page 12 of 19
Power
Analyst: Sidharth Balakrishna and Neha Saraf©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“Our next step would be setting upUSCPPs. The government isplanning to set up eight plantsacross the country with 800 Mweach. We are planning to start theinitiative by next year.” S Seshadri, Member of the Central Electricity Authority
(CEA)
(Source: Business Standard, 8 new ultra supercriticalpower plants on anvil, October 7, 2009)
• Hike in risk weightage likely to make commercial real estate loans
dearer
Recent�announcement�by�Reserve�Bank�of�India�(RBI)�in�its�credit�policy�to�hikethe�risk�weightage�given�to�commercial�real�estate�(CRE)�loans�from�0.4�percentto�1�percent�may�lead�to�an�upward�movement�in�interest�rates.�The�move�fromRBI�comes�on�the�back�of�a�concern�for�potential�rise�in�non-performing�assets(NPAs)�due�to�large�scale�restructuring�of�advances�in�last�one�year.�Therestructuring�proportion�of�bank�loans�to�CRE�is�14�percent,�against�4�percent�atan�aggregate�level.
• Marg to develop affordable housing project in Colombo
South�India-based�real�estate�company�Marg�Ltd.�is�expected�to�enter�the�SriLankan�real�estate�market�as�part�of�its�international�expansion�plans.�Thecompany�has�signed�a�MoU�with�the�Ministry�of�Urban�Development�and�SacredArea�Development�of�Sri�Lanka�for�constructing�affordable�dwelling�units�inColombo.�The�company�would�develop�500�dwelling�units�at�Dmatogoda,�whichis�being�promoted�by�the�Sri�Lankan�government�with�assistance�from�the�AsianDevelopment�Bank�and�World�Bank.
• Rajasthan announces new urban housing policy
Rajasthan�Government�has�announced�new�urban�housing�policy�whichpromises�1.25�lakh�dwellings�over�next�five�years�for�the�economically�backwardsection.�As�per�the�policy�statement,�the�state�Government�would�rope�inprivate�developers�under�public-private�partnership�(PPP)�model�for�developinglow�cost�housing�with�Awas�Vikas�Limited�as�the�nodal�agency.�Under�thepolicy,�the�state�Government�has�made�it�compulsory�for�the�Rajasthan�HousingBoard�(RHB)�to�construct�50�percent�of�the�total�dwellings�for�EconomicallyWeaker�Section�(EWS)�and�Lower�Income�Group�(LIG).
• Century Textiles to develop mill land
Mumbai-based�textile�company,�Century�Textiles�plans�to�start�commercial�realestate�development�at�its�Worli�mill�land�and�is�likely�to�float�a�separate�divisionto�control�it.�The�company�has�40�acres�of�land�including�10�acres�leased�to�it�bythe�Wadias.�The�company�is�expected�to�exclusively�develop�commercialcomplexes�that�will�be�leased�to�banks,�financial�institutions�and�for�othercommercial�purposes.�The�initial�estimated�cost�for�first�phase�of�the�projectwould�be�over�USD�127�million.
• Parsvnath to invest USD 319 million to finish ongoing projects
Real�estate�company�Parsvnath�Developers�will�invest�about�USD�319�million�tocomplete�more�than�30�ongoing�projects�in�next�two�and�half�years.�Presentlythe�company�has�a�land�bank�of�193�million�sq.�ft.�of�which�42�million�sq.�ft.,comprising�over�30�projects,�have�been�put�on�fast�track.�The�company�expectsto�realize�approximately�USD�1732�million�from�the�sale�of�42�million�sq.�ft.�ofsaleable�area.
Page 13 of 19
Real Estate and SEZs
Analyst: Rajiv Parekh©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Source: Report on Real Estate Developers,
Goldman Sachs, October 26, 2009
30
25
2015 11 11 11 11 11 11 11
1315
21
30
3732
25
2017
13 12 1315
10
5
0
Jan
- 08
Feb
- 08
Mar
- 08
Apr -
08
May
- 08
Jun
- 08
Jul -
08
Aug
- 08
Sep
- 08
Oct -
08
Inventory Months
Nov
- 08
Dec
- 08
Jan
- 09
Feb
- 09
Mar
- 09
Apr -
09
May
- 09
Jun
- 09
Jul -
09
Aug
- 09
3540
Residential Inventory Trends
Page 14 of 19
Telecom
Analyst: Neha Dayal and Rishabh Chadha ©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
• DoT ban on Chinese mobiles from December 01, 2009
The�DoT�has�announced�that�from�December�01,�2009�services�to�all�Chinesehandsets�without�the�International�Mobile�Equipment�Identity�(IMEI)�numberwill�be�barred�completely.�It�is�expected�that�25�million�such�handsets�are�incirculation�currently�and�this�directive�is�in�order�to�help�ensure�security�of�thecountry.
• Government offers tax benefits for aggressive 3G bids
The�Financial�Ministry�has�indicated�some�lucrative�offers�for�successful�3Gbidders’�in�order�to�ensure�maximum�participation�in�the�auction.�The�successfulbidders�will�most�likely�be�allowed�to�treat�the�bid�amount�for�the�license�as�acapital�expenditure�for�a�period�of�20�years�and�save�taxes�on�the�same.�Asimilar�norm�is�to�be�followed�for�BWA�as�well.�In�fact,�the�government�hasallowed�players�to�raise�funds�through�External�Commercial�Borrowings�as�wellfor�the�WiMax�spectrum.�It�is�also�expected�that�the�players�offering�3G�may�beallowed�a�tax�break�of�100�percent�on�their�profits�for�the�first�five�years�andthen�a�30�percent�tax�break�thereafter.
• 3G spectrum auction deferred to January 14, 2009
The�Department�of�Telecommunications�has�announced�that�the�initial�deadlinefor�the�3G�spectrum�auctions�has�been�delayed�from�December�7,�2009�toJanuary�14,�2009.�This�happened�as�a�result�of�the�Defence�Ministry�not�beingable�to�release�the�spectrum�in�time.�The�reserve�price�for�the�pan�India�licensehas�been�fixed�at�USD�740�million.�There�are�4�blocks�of�20�Mhz�spectrum�to�beauctioned�in�each�circle.�However�there�is�a�shortage�in�the�Delhi�and�Gujaratcircle�and�as�a�result�only�three�blocks�will�be�auctioned�out�of�which�one�hasalready�been�allotted�to�the�national�operator�MTNL�and�BSNL.
• CBI conducts raids on DoT offices
The�CBI�has�conducted�a�search�in�the�DoT�offices,�on�account�of�the�irregularitiesidentified�as�a�result�of�the�DoT�awarding�2G�licenses�with�start�up�spectrum�toas�many�as�eight�new�players�in�2008,�at�spectrum�prices�fixed�in�2001.�Inconnection�to�this,�the�CBI�also�conducted�raids�in�the�offices�of�10�telcos,�toprobe�further�into�the�issue.
• Eight telcos lose USD 11.5 billion in market cap
The�mobile�phone�sector�has�been�facing�tremendous�tariff�pressures.�Thispressure�was�alleviated�when�the�Telecom�Regulatory�Authority�of�India�proposedmandatory�implementation�of�per�second�billing.�The�confidence�of�the�investorsabout�the�profit�sustainability�of�the�telcos�further�declined�causing�major�telcoslike�Bharti�Airtel,�Reliance�and�Idea�Cellular�along�with�five�other�players�to�loseUSD�11.5�billion�in�market�capitalization.�Airtel�lost�as�much�as�USD�7.5�billion�andReliance�lost�almost�21�percent�of�its�market�value.�This�led�TRAI�to�declare�thatper�second�billing�would�not�be�mandatory�until�and�unless�it�gets�approval�of�allthe�players�in�the�market.
“We have estimated that 35percent of Indian subscribers havemore than one SIM card.Operators can still make profits ifcosts are down. Customer churn isas high as 40 percent, the highestin the world. In other markets,there was not much of a churnbefore telecom penetrationreached 60 percent. As anewcomer, we would target bothnew and existing customers” Sigve Brekke, Asia Head, Telenor Group
(Source: The Hindustan Times, November 02, 2009)
• Clearstone and granite invest additional USD 2.55 million in Elbee
Elbee�Express,�a�Mumbai-based�logistics�and�courier�company,�has�received�athird�round�of�funding�from�its�existing�shareholders�Clearstone�Ventures�andGranite�Hill.�The�two�private�equities�are�said�to�have�invested�about�USD�2.55million�in�the�company�and�raised�their�combined�stake�to�58.15�percent�fromthe�current�50.43�percent.�At�the�beginning�of�this�year,�Clearstone�and�Granitehad�raised�their�stake�to�50.43�percent.�The�fund�raising�is�said�to�be�in�line�withElbee’s�plan�to�expand�its�operations�in�the�retail�segment�logistics.
• Shree Shubham Logistics Ltd. signs MoU with NCDEX Spot
Exchange Ltd.
NCDEX�Spot�Exchange�Limited�(NSPOT),�a�wholly�owned�subsidiary�of�NationalCommodity�&�Derivatives�Exchange�Limited�(NCDEX),�has�entered�into�anagreement�with�Shree�Shubham�Logistics�Limited�(SSLL),�a�subsidiary�ofKalpataru�Power�Transmission�Limited,�to�promote�spot�markets�for�the�benefitsof�agricultural�commodity�value�chain�participants�like�farmers,�traders�andprocessors�etc.�As�per�the�MOU�SSLL�is�expected�to�provide�warehousing�andlogistics�support�to�all�market�participants�of�NSPOT�in�storage�and�preservationof�goods,�testing�and�certifications,�arranging�finance�against�the�stock�lyingwith�them�as�well�as�its�delivery�from�SSLL�and�other�NSPOT�accreditedwarehouse/delivery�centers�in�order�to�benefit�farmers�and�traders.�Theagreement�is�said�to�be�valid�for�a�period�of�two�years�and�is�beingimplemented�in�Rajasthan�and�Gujarat�and�other�states.
• Safexpress Opens New Logistics Part at Salem and Plans to Add
More
Safexpress,�India�based�logistics�and�supply�chain�company,�inaugurated�itslogistics�park�near�Salem.�The�facility�is�said�to�be�spread�over�2.7�lakh�squarefeet�having�warehouses�equipped�to�provide�third�party�logistics�andtransshipment�services.�The�company�is�also�planning�to�invest�about�USD�127.5million�to�set�up�logistics�parks�at�various�locations�in�India.�It�is�said�that�thecompany�is�planning�to�concentrate�more�in�the�Southern�region�and�investabout�USD�42.5�million�of�this�investment�there.�Apart�from�this�the�company�isalso�planning�to�invest�about�USD�85�million�in�upgrading�its�fleet�andtechnology.
• InterGlobe to Sell Sikorsky Helicopters
InterGlobe�General�Aviation�Pvt.�Limited,�a�subsidiary�of�InterGlobe�Enterprises,has�announced�that�it�is�expanding�its�portfolio�of�helicopter�sales�by�addinghelicopters�manufactured�by�Sikrosky�Aircraft�Corporation�in�India.�InterGlobecurrently�is�said�to�be�the�only�representative�for�Hawker�BeechcraftCorporation,�Atlanta�Jet�and�Aircraft�services�Group�in�India.�This�addition�inportfolio�is�said�to�be�in�line�with�the�growing�demand�for�helicopters�in�India.
Page 15 of 19
Transport and Logistics
Analyst: Nitin Dehadraya©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“The retail sector boom, theexpansion of markets and themanufacturing sector growthwould necessitate outsourcing ofsupply chain services and logisticsparks would play a crucial role inradically altering supply chain andlogistic practices” Vineet Kanauji, General manager, Marketing,Safexpress(Source: Expressbuzz, October 10, 2009)
Page 16 of 19
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Reference material for preparing this document was takenfrom the following sources:
Note:1�USD=�47.06�INR
Sources
Foreword:
• Moneycontrol.com,�Indian�banks�pass�with�flying�colours�in�RBI�report,�Oct�22,�2009
• Bloomberg.com,�India�Faces�‘Challenge’�Timing�Monetary�Stimulus�Exit,�Nov.�10,�2009�
• Reuters,�RPT-POLL-India's�Sept�industrial�output�seen�up�7.3�pct�y/y,�Nov�12,�2009
Economy:
• Businessworld,�Time�Wasn’t�Ripe�for�a�CRR�Hike,�October�31,�2009
• Reuters,�India�Begins�Unwinding�Loose�Monetary�Policy,�October�27,�2009
• Financial�Times,�India�Starts�to�Tighten�Monetary�Policy,�October�27,�2009
• Businessworld,�Sensex�Down�387�Points�on�Credit�Policy�Review,�October�27,�2009
• The�Hindu�Business�Line,�End�of�Easy�Money�Says�RBI,�October�28,�2009
Auto
• Auto�Business�News,�Fiat�likely�to�produce�LCV�in�India,�October�28,�2009
• Dow�Jones�International�News,�Nissan�Exec:�To�Buy�80%�Parts�For�New�Small�Car�From�India�Cos,�October�27,2009
• IHS�Global�Insights�Daily�Analysis,�VW�Begins�Component�Sourcing�from�India,�October�6,�2009
• Tata�Motors�Limited�press�release,�Tata�Motors�acquires�remaining�79%�in�Hispano�Carrocera,�October�20,�2009
• Car�Trade�India,�Audi�Set�to�Expand�in�India,�October�27,�2009
BFSI:
• The�Economic�Times,�Aditya�Birla�Private�Equity�(PE)�raised�USD�120�million�through�its�maiden�fund,�October�28,2009�
• The�Economic�Times,�Standard�Chartered�receives�Reserve�Bank�of�India�(RBI)�approval�to�list�on�the�Indian�stockexchanges,�October�30,�2009�
• The�Economic�Times,�Reliance�Capital�plans�to�venture�into�the�investment�banking�business�by�March�2010,October�20,�2009�
• Financial�Chronicle,�Dhanalakshmi�Bank�plans�to�foray�into�venture�capital�and�asset�management�business,October�16,�2009�
• The�Economic�Times,�DBS�plans�to�start�retail�operations�in�the�Indian�financial�service�market,�October�30,�2009
CM:
• Business�Week,�Future�Group,�Clarks�to�set�up�footwear�retail�JV,�October�04,�2009�
• Economic�Times,�Write�here:�India�likely�to�become�a�global�sourcing�hub�for�Parker�pens,�October�04,�2009�
• www.imagesfood.com,�Carlsberg�sets�up�brewery�in�Medak�district�of�AP,�October�20,�2009
• Economic�Times,�Genesis�Colors�sells�12%�to�Henderson�for�$17�mn,�October�27,�2009
Hospitality:
• India’s�Taj�Group�mulls�tourism�projects�in�RP,�October�25,�2009
• Middle�East�and�Africa�News�Digest,�Al�Wa'ab,�Oberoi�Hotels�sign�MoU�for�five-star�hotel�in�Al�Wa'ab�City,�October06,�2009
Page 17 of 19
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
• The�Economic�Times,�Radisson�to�add�new�162-room�hotel�in�Chennai,�October�26,�2009
• Journal�of�India,�Starwood�Hotels�&�Resorts�Worldwide,�Inc.�Starwood�Opens�Its�150th�Hotel�in�Asia�Pacific�andSigns�23�New�Deals�in�2009,�October�27,�2009
• Business�Standard,�Duet�India�Hotels�eyes�expansion,�October�04,�2009
IT:
• The�Economic�Times,�‘Cognizant�snaps�up�UBS'�Indian�captive�for�USD�75�million’,October�16,�2009
• The�Economic�Times�‘Tech�Mahindra�wins�USD�50�million�Saudi�Telecom�deal’�October�6,�2009
• Asia�Pulse,�India's�TCS�inks�Outsourcing�Deal�With�Singapore�Firm,�October�01,�2009
• Infotech�India,�‘India's�IT�spend�to�touch�USD�37.6�billion’,�October�13,�2009
• The�Hindu�Business�Line�‘Mphasis�plans�expansion�in�India’,�October�14,�2009
Media:
• Indian�Business�Insights,�Videocon�offers�access�to�DTH�television�via�DVD�PLAYER,�October�23,�2009�
• Dow�Jones�International�News,�India's�FIPB�OKs�Dainik�Bhaskar�Foreign�Equity�Proposal,�October�20,�2009�
• Accord�Fintech,�Mukta�Arts'�distribution�arm�inks�agreement�with�Cinepolis�India,�October�22,�2009�
• Indian�Business�Insights,�Mudra�launches�out-of-home�50:50�venture�with�Clear�Channel,�October�14,�2009
• Economic�Times,�Sun�Direct�to�invest�$300�mn�over�next�5�yrs,�October�10,�2009�
• Economic�Times,�PVR�to�invest�Rs�160cr�to�expand�screen,�bowling�alley�network,�October�13,�2009
Oil and Gas:
• The�Economic�Times,�Poor�response�to�NELP�VIII�auction,�RIL�abstains,�October�12,�2009
• The�Economic�Times,�GAIL�signs�MoU�with�VMSS�for�gas�distribution,�October�14,�2009
• Infraline,�Cairn�gets�government’s�permission�to�sell�crude�oil�to�private�refiners,�October�30,�2009
• The�Economic�Times,�RIL�slumps�four�percent�as�Hardy�boys�pull�out�of�KG-D9�well,�October�24,�2009
Pharma:
• Company�Website,�Merck�KGaA�Acquires�Bioscience�Company�in�India,�October�13,�2009
• Livemint,�Apollo�Group�to�invest�Rs1,800�cr;�add�2,000�beds,�October�7,�2009
The�Financial�Express,�Max�lines�up�Rs�600-cr�expansion,�October�2,�2009
Company�Website,�Fortis�to�acquire�10�hospitals�from�Wockhardt,�August�24,�2009
• The�Economic�Times,�Glenmark�Generics�files�for�IPO,�October�1,�2009
The�Economic�Times,�Glenmark�Generics�aims�to�raise�Rs�570�cr�through�IPO,�October�4,�2009
• The�Economic�Times,�GE,�Wipro�join�hands�for�healthcare�push,�October�3,�2009
Power:
• The�Hindu�Business�Line,�Toshiba-JSW�venture�to�start�work�on�Chennai�power�equipment�plant�by�Dec,�October09,�2009
• The�Hindu�Business�Line,�Russia�may�get�Bengal�site�for�second�N-power�plant,��October�10,�2009
• Business�Standard,�8�new�ultra�supercritical�power�plants�on�anvil,�October�07,�2009
• The�Hindu�Business�Line,�RFQs�for�ultra�mega�power�projects�by�Jan,��October�22,�2009
Real Estate:
• The�Hindu�Business�Line,�Commercial�real�estate�loans�may�cost�more,�October�29,�2009
• Business�Standard,�Marg�enters�Sri�Lanka,�October�30,�2009
• The�Economic�Times,�Rajasthan�rolls�out�new�urban�housing�policy,�October�22,�2009
Page 18 of 19
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
• The�Economic�Times,�Century�takes�cue�from�Raymond,�October�19,�2009
• Business�Standard,�Parsvnath�to�invest�Rs�1,500�cr�to�complete�projects,�October�15,�2009
Telecom:
• The�Economic�Times,�Bharti�Airtel-MTN�deal�called�off,�October�01,�2009
• The�Economic�Times,�Number�portability�by�end�of�December,�September�24,�2009
• The�Economic�Times,�3G�auctions�on�December�07,�2009,�September�14,�2009
• The�Economic�Times,��New�operators�to�pay�3�percent�of�revenues�as�3G�spectrum�fee,�September�09,�2009
• The�Economic�Times,�Tata�Teleservices�takes�bill�off�the�pulse,�September�02,�2009
• Business�Standard,�Government�to�announce�uniform�telecom�license�fee,�September�01,�2009
Transport and Logistics:
• VCCircle,�‘Elbee�Express�Gets�INR�12�Crore�More�From�Clearstone,�Granite’,�October�21,�2009
• PRLog,�‘Shree�Shubham�Logistics�Ltd�signs�MoU�with�NCDEX�Spot�Exchange�Ltd.’,�October�10,�2009
• Expressbuzz,�‘Logistics�park�at�Salem�inaugurated’,�October�10,�2009�and�Business�Standard,�‘Safexpress�lines�upINR�600�crore’,�October�7,�2009
• Business�Standard,�‘InterGlobe�General�Aviation�adds�Sikorsky�to�its�portfolio’,�October�22,�2009
in.kpmg.com
©�2009�KPMG,�an�Indian�Partnership�and�a�member�firmof�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.All�rights�reserved.KPMG�and�the�KPMG�logo�are�registered�trademarks�ofKPMG�International,�a�Swiss�cooperative.
The�information�contained�herein�is�of�a�general�nature�and�is�not�intended�to�address�the�circumstances�of�any�particular�individualor�entity.�Although�we�endeavour�to�provide�accurate�and�timely�information,�there�can�be�no�guarantee�that�such�information�isaccurate�as�of�the�date�it�is�received�or�that�it�will�continue�to�be�accurate�in�the�future.�No�one�should�act�on�such�informationwithout�appropriate�professional�advice�after�a�thorough�examination�of�the�particular�situation.
Contact�us:
For further information about thisnewsletter, please contact:
Ramesh SrinivasHead - Consumer Marketse-Mail: [email protected]: +91 80 3065 4300
Abizer DiwanjiHead - Financial Servicese-Mail: [email protected]: +91 22 3090 2380
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Jai MavaniHead - Infrastructure & Governmente-Mail: [email protected]: +91 22 3090 1920
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Research�Inputs�by�KPMG’s�IndiaResearch�Center
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KolkataInfinity Benchmark, Plot No. G-110th Floor, Block – EP & GP, Sector VSalt Lake City, Kolkata 700 091Tel: +91 33 44034000Fax: +91 33 44034199
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