+ All Categories
Home > Documents > SectorSnippets Issue 37:TP4 WhitePaper A4.QXD · • Nissan to source 80 percent of components for...

SectorSnippets Issue 37:TP4 WhitePaper A4.QXD · • Nissan to source 80 percent of components for...

Date post: 17-May-2018
Category:
Upload: doliem
View: 217 times
Download: 2 times
Share this document with a friend
19
Sectoral Snippets India Industry Information Issue 37 - November 2009 KPMG IN INDIA
Transcript

Sectoral SnippetsIndia Industry Information

Issue 37 - November 2009

KPMG IN INDIA

Page 2 of 19

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.”

Page 4 of 19

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.

Page 5 of 19

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.

Page 6 of 19

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

Rajesh JainHead - Information, Communication &Entertainmente-Mail: [email protected]: +91 22 3090 2370

Jai MavaniHead - Infrastructure & Governmente-Mail: [email protected]: +91 22 3090 1920

Yezdi NagporewallaHead - Industrial Marketse-Mail: [email protected]: +91 22 3983 5101

Vikram UtamsinghHead - Private Equitye-Mail: [email protected]: +91 22 3090 2320

Research�Inputs�by�KPMG’s�IndiaResearch�Center

MumbaiLodha Exclus, Apollo Mills Compound, N.M. Joshi Marg, MahalaxmiMumbai 400 011Tel: +91 22 3989 6000Fax: +91 22 3983 6000

DelhiDLF Building No. 10,8th Floor, Tower B,DLF Cyber City, Phase 2, Gurgaon 122 002Tel: +91 124 307 4000Fax: +91 124 254 9101

BangaloreSolitaire, 139/26, 3rd Floor,Inner Ring Road, Koramangala,Bangalore 560 071Tel: +91 80 3980 6000Fax: +91 80 3980 6999

ChennaiNo.10 Mahatma Gandhi RoadNungambakkamChennai 600 034Tel: +91 44 3914 5000Fax: +91 44 3914 5999

Hyderabad8-2-618/2Reliance Humsafar, 4th FloorRoad No.11, Banjara HillsHyderabad - 500 034Tel: +91 40 6630 5000Fax: +91 40 6630 5299

KolkataInfinity Benchmark, Plot No. G-110th Floor, Block – EP & GP, Sector VSalt Lake City, Kolkata 700 091Tel: +91 33 44034000Fax: +91 33 44034199

Pune703, Godrej CastlemaineBund GardenPune 411 001Tel: +91 20 305 85764/65Fax: +91 20 305 85775

Kochi4/F, Palal TowersM. G. Road, Ravipuram,Kochi 682 016Tel: +91 484 309 4120Fax: +91 484 309 4121

KPMG�in�India


Recommended