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Sectoral SnippetsIndia Industry Information
Issue 30 - April 2009
KPMG IN INDIA
Page 2 of 18
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 30
As�India�prepares�for�the�forthcomingparliamentary�elections—scheduled�to�takeplace�later�this�month�and�in�the�next—businesses�are�hopeful�for�political�stability�anda�continuation�of�economic�reforms�to�drivegrowth�in�the�year�ahead.��
The�Committee�on�Financial�Sector�Assessment(CFSA)�also�recently�released�its�assessmentreport�of�the�Indian�financial�sector,�concludingthat�while�it�believed�the�financial�system�issound,�there�are�issues�that�need�to�beaddressed.�The�concerns�listed�include�fundingconstraints�for�NBFCs,�corporate�governance�inthe�co-operative�sector,�lack�of�accurate�data�toassess�household�indebtedness,�etc.�The�CFSAwas�constituted�to�perform�a�detailed,�in-depthassessment�of�the�Indian�financial�sector,�by�theIndian�Government�in�consultation�with�RBI�in2006,�after�India�participated�in�World�Bank�andIMF’s�financial�sector�assessment�program�in2001.�
I�hope�this�you�find�this�edition�of�SectoralSnippets�useful�and�informative.
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.
While�it�was�less�than�a�year�ago�that�India�witnessed�inflation�touching�13-year
high,�policymakers�are�now�worried�about�the�country�heading�into�deflation�as
Asia's�third-largest�economy�is�likely�to�log�a�growth�of�less�than�7�percent�this
fiscal.�
The�year-on-year�change�in�the�Wholesale�Price�Inflation�(WPI)�which�is�now�at
0.27�percent;�is�expected�to�slip�into�negative�territory�in�the�coming�weeks.
Although�the�Reserve�Bank�of�India�(RBI)�uses�the�WPI�as�its�preferred�measure
of�inflation�since�it�has�a�broader�basket�of�goods,�negative�growth�may�not�have
any�major�impact�on�demand�as�the�Consumer�Price�Index�(CPI)�is�still�hovering
around�9�percent.�Thus,�retail�prices�continue�to�remain�at�comparatively�higher
levels.�Therefore,�consumers�are�yet�to�reap�the�benefits�of�lower�inflation.
However,�bearing�in�mind�the�current�economic�scenario,�deflation�may�also�be�a
result�of�low�money�supply�and�credit�in�addition�to�a�curb�in�spending�by
households,�industry�or�the�Government.�
Accordingly,�with�the�intention�to�maintain�aggregate�demand�in�the�economy,
India’s�central�bank�is�likely�to�announce�further�rate�cuts�in�addition�to�the
Government’s�stimulus�measures�which�may�further�boost�spending.�Thus,�to
spur�consumer�demand,�interest�rates�need�to�come�down.�However,�the
Government�needs�to�ensure�not�only�rate�cuts�but�adequate�flow�of�credit�in
the�system.�Increased�fiscal�expenditures�by�the�Government�are�likely�to�ensure
adequate�liquidity�in�the�system.�Doing�so�is�expected�to�aid�gradual�phasing�out
of�the�recessionary�trends�in�the�demand�and�consumption�patterns.
Indian EconomyPage 3 of 18
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.
“More than cutting rates, ensuringthe flow of credit is important. Ifcredit does not flow then anyamount of interest rate cuts willnot help. We have room for cuts,but cuts should be only a part ofthe plan. The main objectiveshould be credit flow, which is nothappening now.” Subir Gokarn, Chief Economist - Asia-Pacific, S&P
(Source: DNA, ‘It’s disinflation, not deflation, we arefacing right now’, March 22 2009)
• Peugeot plans to re-enter Indian market
Post�its�2001�pull�out�from�the�Joint�Venture�(JV),�a�European�automaker�PSA
Peugeot�Citroen,�is�planning�on�a�re-entry�in�the�Indian�market.�It�is�currently
searching�for�a�greenfield�manufacturing�location�in�Tamil�Nadu�and�Andhra
Pradesh.�The�firm�had�opened�an�office�in�Chennai�in�October�2008.�It�plans�to
introduce�the�307�hatchback�and�C5�sedan�in�India.�As�per�media�reports,
Peugeot�has�already�held�meetings�with�Andhra�Pradesh�and�Tamil�Nadu
Government�to�discuss�the�investment�opportunities.
• Temsa Global to enter Indian bus market
Turkish�commercial�vehicle�maker,�Temsa�Global�is�looking�to�enter�the�Indian
bus�market.�The�firm�has�already�undertaken�a�feasibility�study�on�the
commercial�potential�to�set-up�an�integrated�bus�manufacturing�facility�in�India
and�may�consider�forming�a�JV�with�a�local�company.�The�company�plans�to
make�India�as�the�manufacturing�base�for�Asian�markets�and�also�develop�a
sourcing�base�for�automotive�components�for�its�global�manufacturing
operations.�Temsa�Global�is�also�looking�for�local�component�vendors�for�major
components�like�gears,�engines,�seats,�glass,�axles�and�metal�parts.�It�plans�to
introduce�its�long-distance�inter-city�coaches�under�the�Safari�brand�for�the
urban�markets.�
• Mahindra & Mahindra in talks to form a JV with Lockheed Martin
and BAE
Mahindra�&�Mahindra�(M&M)�is�reported�to�be�in�talks�with�Lockheed�Martin
and�BAE�for�a�naval�business�JV.�It�is�looking�at�the�defense�sector�as�a
strategic�business�interest�and�is�looking�to�grow�this�business�through�global
partnerships.�It�has�already�tied�up�with�BAE�for�a�land�systems-specific�JV.
Earlier�the�company�had�spun�off�its�land�and�naval�businesses�into�wholly-
owned�subsidiaries�of�Mahindra�Defense�Systems,�its�defense�business
vertical.�It�plans�to�offer�26�percent�stake�in�both�subsidiaries�to�global
partners.�It�aims�to�take�its�land�systems�business�to�USD�388�million�by�2015.�
• MRP Autorub enters into JV with MDI
MRP�Autorub�Private�Limited�(MRP),�a�Chennai�based�rubber�extrusion�and
molding�manufacturer�has�entered�into�a�JV�with�Molded�Dimensions�Inc
(MDI),�a�US-based�company�manufacturing�rubber�and�plastic�molded�and
extruded�parts.�The�JV�is�primarily�to�set�up�a�cost�competitive�manufacturing
base.�The�JV�would�have�India�as�the�manufacturing�hub�and�would�sell�to
customers�in�India,�USA,�Europe,�Australia,�Middle�East�and�South�America.
MDI�is�expected�to�initially�hold�26�percent�stake�in�the�company�and�would
have�the�option�to�increase�the�equity�up�to�49�percent�within�a�period�of�5
years.�
Page 4 of 18
Auto and Auto Components
Analyst: Rajiv Somani©�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.
“This is an exciting opportunity and is thefirst step in BAE Systems’ plans to growlong term businesses in India in multiplesectors across the breadth and depth ofthe company’s global capabilities in land,sea, air and security.”
Ian King, Chief Executive, BAE Systems
(Source: Economic Times, ‘M&M in Defense JV TalksWith Lockheed Martin, BAE’, March 04, 2009)
• IDBI Fortis to invest USD 48 million for expansion
IDBI�Fortis�Life�Insurance�plans�to�infuse�further�capital�of�approximately�USD
48�million�from�its�shareholders,�namely�IDBI�Bank,�Federal�Bank�and�Fortis.
The�contribution�of�each�of�the�shareholders�is�expected�to�be�in�proportion�to
their�shareholding�in�the�venture.�The�new�capital�infusion�is�likely�to�help�IDBI
Fortis�towards�expanding�operations�and�in�meeting�solvency�requirements.
The�company�has�plans�to�set�up�100�branches�across�the�country.�IDBI�Fortis
also�sells�its�products�through�more�than�1,100�branches�of�IDBI�and�Federal
Bank.�
IDBI�Fortis�commenced�its�operations�in�March�2008�with�an�initial�capital�of
USD�50�million.�
• Aviva plans to venture into mutual fund business
Aviva�India�plans�to�establish�asset�management�business�in�India,�as�part�of
its�expansion�strategy�in�Asia�Pacific�and�India.�Aviva�is�looking�at�various
options�for�venturing�into�the�asset�management�business,�including
greenfield,�acquisition,�or�alliance.��
Private�sector�life�insurer�Aviva�India�is�a�JV�between�Aviva�and�Dabur.�A
majority�of�life�insurance�players�in�India�have�asset�management�arms,
including�ICICI�Prudential,�Reliance�Mutual�Fund,�HDFC�Mutual�Fund�and�SBI
Mutual�Fund.
• SBI ties-up with Diebold for ATM expansion
India’s�leading�public�sector�bank,�State�Bank�of�India�(SBI),�has�tied�up�with
Diebold�for�the�largest�automated�teller�machines�(ATM)�expansion�in�the
country.�Post�expansion,�SBI’s�total�ATM�network�is�likely�to�grow�to�12,000.
Under�the�terms�of�the�contract,�Diebold�plans�to�provide�ATM�site�preparation
and�managed�services.�Diebold,�a�global�leader�in�integrated�financial�self-
service�delivery,�plans�to�supply�SBI�with�its�full-function�model�D450�ATM,
which�is�specially�designed�for�the�Indian�market.�
The�RBI�has�recently�issued�guidelines�for�free�use�of�third-party�bank�ATMs
from�April�1,�2009.�Considering�that�banks�charge�an�inter-change�fee�for
providing�the�ATM�facility�to�the�customers�of�other�banks,�this�move�is�expected
to�benefit�larger�players�such�as�State�Bank�of�India,�ICICI�Bank,�HDFC�Bank�and
Axis�Bank,�as�they�have�well�expanded�ATM�networks�across�the�country.
• IIFL seeks permission to launch AMC arm in Singapore
Leading�financial�services�provider,�India�Infoline�Limited�(IIFL),�is�seeking
license�for�brokerage�and�investment�banking�services�in�Singapore�in
collaboration�with�Deutsche�Bank.�The�company�expects�its�operations�to
commence�within�next�6�to�12�months.�IIFL�already�has�an�office�in�Singapore.�
IIFL�is�also�planning�to�float�an�Asset�Management�Company�(AMC)�with�a
focus�on�non-brokerage�business.�Currently,�brokering�revenues�account�for
about�60�percent�for�the�group’s�revenue.�IIFL�also�offers�services�like�wealth
management,�insurance�brokering�and�investment�banking.�
Page 5 of 18
Banking and Financial Services
Analyst: Kunal Jain©�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.
“As part of our expansion strategyin Asia Pacific and keeping inmind the opportunity Indiapresents, we would like to explorethe potential for establishingasset management business inIndia.” Pablo Isla, Deputy Chairman and Chief Executive,
Inditex
(Source: Mint, ‘Aviva plans to foray into mutual fundbusiness’, March 05, 2009)
• KPMG on India’s retail industry
KPMG’s�recent�report�on�India’s�retail�industry�highlighted�the�current�andfuture�scenario�of�India’s�retail�market.�The�report�presented�a�fine�picture�ofIndian�companies’�strategic�actions�to�cope�with�the�current�economic�stress.According�to�the�report,�some�of�the�future�trends�in�Indian�retailing�includeincreased�focus�on�value�retail�and�food�retailing,�more�concentration�towardsTier�II�and�Tier�III�cities�and�increased�investments�in�supply�chain�efficiencies.The�study�also�emphasized�that�the�long�term�outlook�for�retail�in�Indiacontinues�to�be�attractive�and�prospects�for�expansion�are�still�appealing.�
• DKNY enters India through DLF Brands
Donna�Karan�International,�part�of�the�luxury�goods�group,�LVMH,�signed�anagreement�with�DLF�Brands,�the�retail�arm�of�real�estate�major�DLF�Group,�toset�up�DKNY�stores�in�India.�The�alliance�was�formed�to�bring�the�two�brands—�Donna�Karan�New�York�and�DKNY�—�to�India.�Three�DKNY�freestandingstores�are�expected�to�be�set�up�in�India�to�showcase�the�DKNY�ready-to-wearand�accessories�collections.�Other�Donna�Karan�New�York�and�DKNYfreestanding�stores�are�expected�to�be�launched�in�Delhi�soon.�DKNY�has�along-term�vision�on�the�potential�of�the�Indian�market�and�plans�to�fullyleverage�on�the�next�big�destination�for�luxury.�It�recently�forayed�into�SouthKorea�and�Mainland�China.�
DKNY�also�plans�to�form�a�JV�with�S�Kumars�Nationwide�(SKNL),�an�Indiantextiles�and�apparels�firm,�where�SKNL�can�be�the�sole�supplier�of�rawmaterials�to�most�of�DKNY’s�retail�outlets.
• Tata Tea in a consolidation, transformational and acquisitive phase
Tata�Tea,�the�beverage�arm�of�India’s�Tata�Group,�is�in�a�transformational�andconsolidation�phase.�The�company�announced�its�foray�into�the�branded�colddrink�market.�This�move�is�significant�for�Tata�Tea,�which�has�been�steadilytransforming�itself�from�a�primarily�tea�company�to�a�beverages�companyfocusing�on�wellness�and�health.�The�company�is�also�looking�at�consolidatingall�of�its�beverages�businesses�such�as�tea,�water�and�soft�drinks�under�asingle�entity�to�simplify�operational�issues,�reduce�costs�and�raise�funds�forfurther�expansion.�
The�company�is�also�in�an�acquisitive�phase.�Its�overseas�unit,�along�with�theEuropean�Bank�for�Reconstruction�and�Development�(EBRD),�is�likely�to�acquire51�percent�in�a�firm�named�Grand,�a�Russian�branding,�packaging�anddistribution�company�and�a�well�known�Russian�player�in�the�coffee�and�teasegment.�The�acquisition�is�likely�to�be�completed�in�the�first�half�of�2009�andis�expected�to�help�Tata�Tea�strengthen�its�presence�in�the�Russian�market.
• Swedish Company taps India’s wellness product market
Oriflame,�a�Swedish�cosmetics�company,�is�set�to�launch�a�range�of�wellnessproducts�in�India�to�cater�to�high-income�groups.�The�company�plans�to�importthese�products�from�China�and�Sweden�initially�and,�based�on�market�demand,plans�to�manufacture�these�products�in�India�at�a�later�stage.�The�company�hasalready�launched�these�products�in�Europe�and�the�rising�health�awarenessamong�Indians�prompted�it�to�bring�these�products�to�India.�Since�1996,Oriflame�has�invested�around�USD�50�million�in�India.�This�includes�theinvestment�to�set�up�a�manufacturing�unit�in�Noida.
Page 6 of 18
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.
“India is fast becoming a majorfashion hub and the next bigdestination for luxury.” Kelvin Coyle, DLF Brands, Managing Director
(Source: Business Standard, ‘DLF arm to launch DonnaKaran stores in India’, March 27, 2009)
Analyst: Sonia Topiwala
• WelcomHeritage plans to pick up stake in group property
WelcomHeritage,�part�of�the�ITC’s�hospitality�division,�which�operates�a�chainof�heritage�hotels�on�franchise�model�is�looking�at�acquiring�stake�in�some�ofthe�properties�owned�by�the�group.�WelcomHeritage,�a�JV�between�ITC�andthe�erstwhile�Maharaja�of�Jodhpur,�Gaj�Singh,�has�a�total�of�64�propertiesacross�India.�Currently,�the�company�receives�around�5-8�percent�of�theproperties’�revenues�as�fees�for�services�like�marketing�and�branding�at�aglobal�level,�consultancy�in�restoration�related�work�and�assistance�in�sales.However,�now�the�company�is�seeking�for�equity�investments�which�areexpected�to�give�them�a�profit�sharing�in�the�property�instead�of�the�franchiseefee.�It�is�currently�approaching�some�property�owners�in�Uttar�Pradesh,�MadhyaPradesh,�West�Bengal,�North�East�and�Uttaranchal�for�JV�partnership.�
The�company�is�looking�at�picking�up�stakes�instead�of�complete�buy-outs.�Itaims�to�have�70�properties�by�end�of�March�2010�and�expanding�its�presence�inSouth�India�and�North�Eastern�states.
• The Leela Group opens its first Northern Indian property
The�Leela�Group,�one�of�the�leisure�and�business�hotel�group�in�India�hasopened�its�Gurgaon�property,�The�Leela�Kempinski.�This�is�the�first�property�ofthe�group�in�Northern�India.�The�320-�room�property�has�an�outdoor�pool,�afitness�center,�yoga�and�aerobic�studios,�a�beauty�salon�and�a�large�spa.�Itplans�to�offer�ballrooms,�boardrooms�and�meeting�rooms,�and�a�businesscentre.�Leela’s�Gurgaon�property�is�likely�to�be�managed�by�the�AmbienceGroup.
• Sarovar group's five-star hotel to operate by 2012
Sarovar�Hotels�&�Resorts'�five-star�hotel�property�is�expected�to�come�up�inBhubaneswar.�The�company�is�likely�to�invest�about�USD�13.4�million�for�thedevelopment�of�this�property.�The�company�is�opening�a�hotel�in�Bhubaneswarconsidering�the�increased�demand�for�quality�accommodation�for�both�businessand�leisure�travelers.�The�hotel�is�scheduled�to�be�operational�by�2012.Bhubaneswar�is�likely�to�be�the�fourth�hotel�property�of�Sarovar�Hotels�&Resorts�in�the�Eastern�region.�It�has�properties�in�Kolkata�(Peerless�Inn),Gangtok�(The�Royal�Plaza)�and�Durgapur�(Peerless�Sarovar�Portico).�Anotherproperty�is�expected�to�open�in�the�Nayapalli�area�on�the�Kolkata-Chennainational�highway�which�is�likely�to�have�150�rooms.�The�hotel�chain�also�plansto�set�up�new�hotels�in�other�locations�of�Eastern�India�like�Siliguri,�Guwahatiand�Tezpur�(Assam).
• Marriott to open 6 properties in 2009
Marriott�International�Inc,�a�US-based�hotel�management�company�plans�to�addminimum�of�6�more�properties�in�its�portfolio�of�6�hotels�in�India�by�end�of2009.�Being�a�management�company,�Marriot�has�tie�ups�with�real�estatedevelopers�and�partners�for�development�of�a�hotel�property.�The�six�newproperties�are�likely�to�be�opened�under�the�brand�name�Courtyard�in�Pune,Gurgaon,�Hyderabad,�Mumbai�and�Ahmedabad,�and�Marriott�ConferenceCentres�in�Pune.
Also,�JW�Marriott�Hotels�&�Resorts�at�Bangalore�is�expected�to�start�towardsthe�end�of�2009�and�early�2010.�The�group's�14�Courtyard�hotels,�8-9�JWMarriott�Hotels�&�Resorts�and�a�few�Marriott�Executive�Apartments�are�undervarious�stages�of�development�in�India.
The�group�also�plans�to�launch�its�6th�brand�in�India,�the�luxury�Ritz-Carltonbrand,�by�end�of�2010.
Page 7 of 18
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.
Note: ARRs – Average Room Revenue
Source: CRISIL Monthly Report, March 25, 2009
• HCL bags IT service contract with National Insurance Corporation
HCL�Technologies�has�signed�a�7�year,�USD�75.4�million�IT�services�contract
with�one�of�India's�leading�general�insurance�firm�National�Insurance�Company
(NIC).�As�per�the�terms�of�the�contract,�HCL�is�to�be�responsible�for�setting�up
and�managing�a�new�enterprise-wide�IT�landscape�for�NIC.�The�contract�is�for
business�process�re-engineering,�application�blueprinting�and�roll-out�of�19
applications,�systems�integration�and�management�services�across�over�1,034
branches�of�NIC.�It�also�involves�the�physical�hosting�of�data�centers�and
provisioning�of�business�continuity�services.
• Infosys Wins USD 100 million contract from Telstra
Infosys�Technologies�has�bagged�~�USD�80-�100�million�multi-year�outsourcing
contract�from�Australia-based�Telstra.�It�is�second�win�for�Infosys�in�Australia,
after�Rio�Tinto�had�earlier�selected�it�over�Accenture�for�a�USD�50�million
application�development�deal.�Telstra�has�undertaken�a�vendor�consolidation
exercise�to�reduce�its�IT�service�providers�from�four�--�EDS,�IBM,�Infosys�and
Satyam�--�to�two�as�a�part�of�its�transformation�strategy.�Analysts�believe�that
Telstra�has�chosen�Infosys�over�the�others�due�to�its�track�record�with�British
Telecom�and�the�front-end�capabilities�it�gained�with�the�acquisition�of�Expert
Information�Services.
• DiacriTech acquires US-based LaurelTech
Chennai-based�Knowledge�process�outsourcing�(KPO)�company�DiacriTech(DT)
has�acquired�US-based�e-publishing�outsourcing�firm�LaurelTech�Integrated
Publishing�Solutions,�for�an�undisclosed�sum.�With�this�acquisition,�the
company�expects�to�work�in�a�hybrid�onshore/offshore�model,�capable�of
delivering�design,�editorial�and�project�management�capabilities�in�the�US.�DT
has�a�headcount�of�700�people�across�facilities�in�Chennai,�Madurai�and
Kottayam.�The�company�is�believed�to�be�looking�for�more�acquisitions�in�the
US�and�Europe.��
• TCS signs deal with Infineon Technologies
Tata�Consultancy�Services�(TCS),�a�leading�Indian�IT�services�provider�has�won
a�multi-year�contract�with�Germany-based�Infineon�Technologies�AG,�one�of�the
leading�semiconductor�manufacturers.�The�contract�is�to�operate�and�maintain
solutions�within�the�Infineon’s�Supply�Chain�Management�(SCM)�landscape.
With�this�deal,�Infineon�expects�to�optimize�its�operations�in�the�area�of�SCM
Planning�to�achieve�efficiency.�
• India PC Market Shipments Drop in 2008
According�to�IDC's�India�Quarterly�PC�Tracker�2008,�the�desktop�PC�shipments
in�India�have�dropped�by�10.1�percent�for�the�calendar�year�2008,�while
notebook�PC�shipments�have�recorded�a�growth�of�31.5�percent�on�a�year-on-
year�basis.�India’s�Client�PC�(Desktop�+�Notebooks)�shipments�were�1.56
million�units,�a�drop�of�22.7�percent�over�Q4�2007.�Hewlett�Packard�retained�its
market�leadership�with�15.6�percent�market�share,�followed�by�Dell�and�HCL.
RBI’s�move�to�relax�credit�and�expenditures�planned�for�infrastructure,�public
sector,�e-governance�and�development�projects�are�expected�to�revive�the
industry.
Page 8 of 18
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.
Source: IDC, India Quarterly PC Tracker 2008, 4Q
2008 March 26, 2009
Note: 1 USD = INR 52.09
• PVR partners with Thailand's Major Cineplex
Indian�entertainment�firm�PVR�Limited�announced�a�foray�into�the�fashion
bowling�business�in�a�JV�with�Thailand-based�Major�Cineplex�Group�and�has
plans�to�invest�USD�19.6�million�over�the�next�3�years�to�open�500�bowling
lanes�across�India.�The�two�companies�have�entered�into�a�51:49�JV�to�bring
the�global�fashion�bowling�brand�'Blu-O'�into�the�country.�The�company�plans�to
focus�on�metros�and�Tier�I�cities�for�opening�the�bowling�lanes.�
• Sony forays into regional TV with buy of Bengali movie channel
Sony�has�made�a�foray�into�the�regional�broadcasting�space�through�the
acquisition�route.�Sony�Pictures�Television�International�(SPTI)�has�acquired
Channel�8,�a�Bengali�movie�channel,�for�an�undisclosed�amount.�The�channel�is
expected�to�be�under�the�management�of�SPTI's�international�networks�group.
Kolkata-based�Channel�8,�also�known�as�Bangla�Entertainment�(BEPL),�was
launched�in�March�2008�and�has�licensed�a�library�of�Bengali�films�and
telefilms.�Channel�8�is�currently�available�throughout�West�Bengal,�Tripura�and
some�parts�of�Assam�and�Orissa.�SPTI�already�has�television�networks
business�in�India,�Multi�Screen�Media�Private�Limited,�which�includes�the�Hindi-
language�channels�Sony�Entertainment�Television�(SET),�Max,�Sab�and�English-
channel�Pix.�SPTI's�AXN�and�Animax�channels�also�air�in�India.
• Turner, Warner Brothers to launch channel
Turner�and�Warner�Brothers�have�launched�a�new�English�entertainment
channel�WB�showcasing�movies�and�serials�which�is�expected�go�on�air�from
March�15.�The�channel�‘WB’�is�targeted�at�the�upwardly�mobile,�15�to�45-year-
old�global�citizens�residing�in�India.�WB�is�expected�to�be�distributed�by�Zee-
Turner�and�could�be�a�pay�channel�after�an�initial�free-to-air�window.�It�is�also
expected�to�be�on�the�DTH�platforms,�which�serve�the�same�audience�it�is
targeting.�
• Prices of home video rights fall 40 percent in past 6 months
The�prices�of�home�video�rights�of�movies�(one�of�the�key�revenue�streams�for
producers�and�distributors)�have�dropped�30-40�percent�in�the�past�6�months.
Home-video�rights�which�are�sold�for�a�period�of�3-5�years�along�with�satellite
rights�for�the�movies�contribute�about�20-25�percent�of�the�overall�revenue�of
the�film.�Commenting�on�the�situation,�Mr.�Hiren�Gada,�Director�of�Shemaroo
Entertainment�said�that�the�home�video�entertainment�firms�are�also�getting
into�revenue�sharing�deals�with�production�houses�to�de-risk�their�business
model�and�expanding�the�period�of�home�video�rights.��
• Compact Disc arm to set up gaming publishing studio
Compact�Disc�India’s�subsidiary�Laser�Infomedia�is�planning�to�set�up�a�gaming
publishing�and�development�studio�in�Jaipur,�Rajasthan�with�an�approximate
investment�of�USD�20�million.�Rajasthan�State�Industrial�and�Investment
Corporation�had�recently�allotted�the�company�13,000�square�meters�of
industrial�land�at�Export�Promotion�Industrial�Park�(EPIP)�Sitapur�in�Jaipur.
Page 9 of 18
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.
“This is part of our effort to evolvePVR from a film entertainmentcompany to a retail entertainmentplayer with a focus to enhancethe out of home entertainmentexperience for our patrons.” Ajay Bijli, Chairman and Managing Director PVR Ltd.
(Source: Asia Pulse, ‘India's PVR, Thailand's MajorCineplex to Open 500 Bowling Lanes’, March 12, 2009)
• Reliance enters into GSPA with 12 fertiliser companies
Reliance�Industries�Limited�(RIL)�has�formally�entered�into�gas�sale�and
purchase�agreements�(GSPA)�with�12�fertilizer�firms.�Some�of�the�companies
that�signed�the�agreement�with�RIL�for�buying�the�gas�are�Indian�Farmers
Fertiliser�Cooperative�(IFFCO),�Krishak�Bharti�Cooperative�(KRIBHCO),�Tata
Chemicals�and�Indo�Gulf�Fertiliser.�As�per�the�contract,�RIL�is�expected�to�sell
gas�to�the�companies�at�USD�4.2�per�million�British�thermal�unit�(mmBtu).�The
agreement�may�result�in�annual�fertiliser�subsidy�savings�of�USD�600�million.
• GAIL likely to form a new company
Gas�Authority�of�India�Ltd.�(GAIL)�is�expected�to�split�its�marketing�business
into�a�separate�entity�with�effect�from�April.�GAIL�India�is�expected�to�continue
to�be�a�gas�transmission�company�whereas�GAIL�Gas�Ltd.�(GSL),�the�new
entity,�is�likely�to�carry�out�the�marketing�business�of�the�company.�GSL�is�also
expected�to�be�listed�shortly�on�the�bourses.�The�policy�guidelines�introduced
by�the�Petroleum�and�Natural�Gas�Regulatory�Board�(PNGRB),�requires�splitting
of�a�company’s�gas�transportation�and�marketing�and�trading�activities,�in�order
to�restrain�integrated�companies�to�cross-subsidise�its�activities.
• Reliance raises its marketing margin
Reliance�Industries�has�raised�its�marketing�margin�by�25�percent�from�the
current�0.12�mmBtu�to�0.15�mmBtu.�This�rate�is�to�be�charged�over�and�above
the�USD�4.2�mmBtu�base�gas�price.�However,�RIL’s�margin�is�lower�when
compared�to�state-run�GAIL.�The�increase�in�price�is�due�to�the�additional�risk
of�‘ship�or�pay’�under�which�a�company�has�to�transport�the�committed
volumes�or�pay�for�the�gas.
• Shell to tie up with Reliance
Shell�India�is�expected�to�tie�up�with�RIL�in�order�to�sell�its�line�of�automobile
lubricants�in�India.�The�lubes�are�expected�to�be�available�across�all�Reliance
petrol�pumps�once�the�company�decides�to�reopen�them.�The�company�feels
that�the�market�for�performance�lubricants�is�showing�signs�of�improvement
and�this�would�be�the�right�time�to�capture�the�market.�Besides�this,�the�firm
feels�that�Reliance’s�petrol�pumps�may�be�able�to�provide�good�visibility�and
reach�for�Shell’s�products.
• BRPL merges with IOC
State-refiner�Indian�Oil�Corporation�Ltd.�(IOC)�has�merged�Bongaigaon�Refinery
Petrochemicals�Ltd.�(BRPL)�with�itself.�The�swap�ratio�has�been�decided�at�4:
37�i.e.�4�shares�to�be�given�for�every�37�shares�of�BRPL�held.�The�merger�took
place�after�the�Government�decided�to�sell�its�stake�in�BRPL�to�IOC,�which
already�held�a�74�percent�holding�in�it.
• Reliance resumes and shuts its crude oil production
Reliance�Industries�had�recommenced�its�crude�oil�production�from�their
Krishna�Godavari�(KG)�basin�which�had�stopped�in�the�month�of�December�due
to�an�equipment�failure.�On�restarting�its�production,�the�field�pumped�about
5,000�barrels�a�day�(bpd).�The�firm�however�shut�down�its�production�for�a
period�of�45�days�in�order�to�connect�more�oil�wells�so�as�to�raise�its�output�to
approximately�10,000-12,000�bpd.
Page 10 of 18
Oil and Gas
Analyst: 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.
“Our lubricant line is going to beavailable with Reliance petrolpumps across the country as andwhen they open. We have a tie-up.”M Balachandran, Vice President, Marketing, Shell India(Source: Infraline, ‘Shell to tie up with RelianceIndustries to sell its line of automobile lubricants inIndia’, March 20, 2009)
Note: 1 USD = INR 52.09
• Lupin acquires majority stake in Multicare Pharmaceuticals
Philippines, Inc
Lupin�Limited,�an�Indian�pharmaceutical�company,�has�acquired�51�percent
stake�in�Philippines-based�Multicare�Pharmaceuticals�Philippines,�Inc�a�branded
generics�player�in�Women’s�health�and�Child�care�segments.�With�this
acquisition,�Lupin�has�made�its�entry�in�the�Philippines�market�estimated�at
USD�2.5�billion.�Through�this�acquisition,�Multicare�is�expected�to�be�able�to
leverage�on�Lupin’s�product�portfolio,�while�Lupin�is�expected�to�benefit�from
Multicare’s�supply�chain.�Multicare�reported�revenues�of�USD�6�million�for�year
ending�December�2008.�
• Zydus Cadila enters into a drug discovery and development
agreement with Eli Lilly
Zydus�Cadila,�one�of�India’s�leading�pharmaceutical�companies,�has�entered�into�a
new�drug�discovery�and�development�collaboration�agreement�with�Eli�Lilly�and
Company.�This�research�collaboration�which�focuses�on�the�cardiovascular
diseases�segment�may�extend�up�to�a�period�of�six�years.�Zydus�is�expected�to
commence�the�drug�discovery,�lead�identification�and�optimization�activities�and
carry�out�preclinical�studies�and�clinical�trials�up�to�Phase�II�Human�Proof-of-
Concept.�Eli�Lilly�is�expected�to�provide�chemical�starting�points�and�bring�in�its
experience�and�provide�feedback�regarding�toxicology,�ADME,�chemistry,�biology,
clinical�and�regulatory�aspects�that�can�help�increase�the�productivity�of�the
programme�and�the�probability�of�its�success.�
• Avesthagen enters into a JV with Chilean biotech company
Avesthagen�Limited,�an�Indian�integrated�systems�biology�platform�company,
has�entered�into�a�JV�with�Uxmal�SA,�a�Chile-based�biotechnology�company,�to
develop�new�bioactives�and�tissue�culture�on�the�bioinformatics�platform�based
on�Latin�America’s�medicinal�plants.�Avesthagen�also�plans�to�market�bioactives
in�Latin�America.�To�begin�with,�Avesthagen�is�expected�to�own�75�percent
stake,�while�Uxmal�the�balance�25�percent.�Avesthagen�is�expected�to�bring�in
technology�support�and�R&D�experience�in�the�JV.��
• Aurobindo Pharma enters into licensing agreements with Pfizer for
finished dosage drugs
Aurobindo�Pharma�Ltd.,�an�Indian�manufacturer�of�generic�pharmaceuticals�and
Active�Pharmaceutical�Ingredients,�has�entered�into�licensing�and�supply
agreements�with�Pfizer�Inc.,�for�several�finished�dosage�products�(generic�pills
and�injectible�medicines).�According�to�this�agreement,�Aurobindo�is�expected
to�manufacture�the�products�while�Pfizer�is�expected�to�market�them�targeting
the�US�and�European�markets.�This�agreement�is�likely�to�facilitate�Pfizer�in
expanding�its�Established�Products�Business�Unit,�its�division�which�focuses�on
commercialization�of�drugs�which�have�lost�market�exclusivity�and�have�gone
offpatent.�
Page 11 of 18
Pharma
Analyst: Nandita Kudchadkar & Dhruti Parikh
©�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 is already recognised for itsgeneric medicines. The fundwould now help companies focuson specific areas of research likeNew Chemical Entities (NCEs),process and life cycle R&D, bio-similars and holistic medicine.”Ram Vilas Paswan, Chemicals and Fertilizers Minister(Source: http://www.eatg.org/, Commenting on theproposed investment (over USD 1 billion) over the next5 years in promoting innovation, a proposal drawn upby the Ministry of Chemicals and Fertilizers andawaiting the approval of Prime Minister, March 3,2009)
• BHEL Bags USD 66 million contract from NPCIL
State-owned�Bharat�Heavy�Electricals�Limited�(BHEL)�has�bagged�USD�66million�contract�from�Nuclear�Power�Corporation�of�India�(NPCIL)�tomanufacture�steam�generators�for�its�atomic�power�plant�in�Gujarat.�As�per�thecontract,�BHEL�plans�to�supply�4�steam�generators�of�700�MWe�(megawattelectric)�which�is�expected�to�be�used�in�primary�cycle�of�nuclear�power�plants.BHEL�is�expected�to�carry�designing,�manufacturing,�and�testing�according�toAmerican�Society�of�Mechanical�Engineers�(ASME�Sec�III�Standards).
• Kalpataru bags USD 72 million order from Power Grid
Kalpataru�Power�Transmission�has�received�an�order�worth�USD�72�million�fromPower�Grid�Corporation�of�India�Limited�(PGCIL)�for�supply�of�powertransmission�equipment�to�the�Sasan�ultra�mega�power�project.�As�per�theorder,�Kalpataru�plans�to�supply�and�erect�transmission�towers�for�413�km�andalso�provide�765�KV�transmission�lines�between�Silwar-Satna�and�Satna-Binasection.�The�project�is�expected�to�be�completed�within�27�months.
• RTPL to invest USD 345 million for 1500 km transmission line
Anil�Ambani�controlled�Reliance�Power�Transmission�Limited;�a�wholly-ownedsubsidiary�of�Reliance�Infrastructure�plans�to�invest�USD�345�million�to�set�up�a1500�km�transmission�line�that�is�expected�to�pass�through�Maharashtra,Madhya�Pradesh,�Gujarat�and�Karnataka.�The�project�is�expected�to�evacuatesurplus�power�from�Eastern�states�to�demand�centers�of�Western�region�withexpected�completion�by�2010.
• Award of coal-to-liquid projects
The�Central�Government�has�awarded�two�separate�coal�blocks�in�Orissa�toJindal�Steel�&�Power�(JSPL)�and�a�JV�between�Tata�Group�and�South�Africa’sSasol�to�build�coal-to-liquid�plants.�According�to�Government�estimates,�boththe�projects�are�expected�to�produce�about�80,000�barrels�of�crude�oil�a�dayand�would�cost�USD�8�billion�each.
• CERC enforcing grid discipline by restructuring UI regime
The�Central�Electricity�Regulatory�Commission�(CERC)�has�notified�newregulations�on�unscheduled�interchange�(UI)�for�electricity�grid�operations�toenforce�grid�discipline�and�to�rationalize�the�UI�rates�for�entities�who�abide�bythe�specified�grid�operation�parameters.�CERC�has�also�restructured�the�UI�ratevector,�wherein�now�there�is�a�differential�between�rates�applicable�tooverdrawal�and�under�drawl�as�against�the�schedule.
Page 12 of 18
Power
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.
Note: 1 USD = INR 52.09
• Foreign Investments in Real Estate Locked for Three Years
The�Foreign�Investment�Promotion�Board�(FIPB)�has�issued�a�new�ruling�that
foreign�investors�in�Indian�real�estate�cannot�sell�their�stakes�to�another�foreign
investor�before�three�years�are�completed.�The�provision�that�currently�exempts
non-residents�investors�to�transfer�their�investments�to�other�investors�has
now�been�cancelled.�The�FDI�policy�till�now�had�a�lock-in�of�three�years�only�for
foreign�investment�in�real�estate.
• Lodha to Develop Township
Lodha�Group,�an�Indian�Real�Estate�developer�has�planned�to�develop�a
township�in�Dombivli�near�Mumbai�with�an�investment�of�about�USD�185
million.�The�township�is�to�be�built�on�125�acres�and�comprise�of�6300�housing
units.�The�apartments�are�to�be�priced�between�USD�24,000�and�USD�48,000
(INR�12�to�24�lakh).�
• Orange Realty to Get Foreign Investment
The�cabinet�committee�on�economic�affairs�(CCEA)�has�accepted�a�proposal�of
Orange�Realty�to�get�in�foreign�investment�of�USD�400�million.�An�investment
company�by�the�name�IRVO-III�is�said�to�be�investing�in�Orange�Realty.
• Hampton Showcases Indian Realty Projects in London
Hampton�International,�a�global�real�estate�consultant,�showcased�12�Indian
residential�projects�in�London�worth�about�USD�800�million�in�order�to�attract
NRIs�and�people�of�Indian�origin.�The�projects�that�were�displayed�included
villas,�plots�and�apartments�by�Emaar�MGF,�Collage�Group,�Expat�Property�and
Ansal�Buildwell�in�the�price�range�of�USD�60,000�to�USD�200,000.�Some�of�the
properties�include�Commonwealth�Games�Village�in�Delhi,�Palm�Drive�in
Gurgaon,�and�Mohali�Hills�and�Mall�of�Jalandhar.
• Omaxe Launches USD 50 million Residential Project
Omaxe�Ltd,�a�real�estate�developer,�has�launched�a�residential�project�in
Vrindavan,�in�Uttar�Pradesh.�The�project,�to�be�called�Omaxe�Eternity,�is�to�be
built�on�a�52�acre�area�and�consist�of�residential�flats�and�independent�plots.
The�project�is�expected�to�cost�about�USD�50�million.
Page 13 of 18
Real Estate and SEZs
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 market is still pretty tough.In the last 4-5 months, investorsand customers adopted a wait andwatch policy, thereby deferringtheir purchase decisions. But nowpeople are coming back again.” Shruti Gupta, Country Head (India) HamptonInternational(Source: DNA, ‘Hamptons Showcase USD 800 millionIndian Realty Projects in London’, March 20, 2009)
Page 14 of 18
Telecom
Analyst: Neha 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.
• CDMA players allowed to launch GSM services
The�telecom�tribunal�has�upheld�the�government’s�decision�to�allow�CDMA
companies�to�launch�GSM�services.�The�tribunal�has�also�stated�that�GSM
players�are�not�entitled�to�radio�frequencies�beyond�6.2MHz.�
• TRAI reports Bharti network as most congested
As�per�a�TRAI�press�release,�Bharti�Airtel’s�network�is�the�most�congested
among�all�pan-India�operators,�with�Tata�Teleservices�being�the�least�congested.
TRAI�has�also�stated�that�the�overall�network�congestion�is�improving.�The
number�of�PoIs�having�congestion�has�decreased�from�129�in�September�2008
to�66�in�December�2008.�
• Vodafone plans to hive-off telecom infrastructure business
Vodafone’s�Indian�arm�is�likely�to�put�all�its�towers�and�mobile�infrastructure
assets�into�a�new�company�called�Ortus�Infratel�and�Holdings�Pvt.�Ltd.�Ortus�is
also�likely�to�hold�Vodafone�Essar’s�42�percent�stake�in�Indus.�
• TRAI regulation to reduce domestic termination charges by 33
percent
TRAI�has�issued�the�“Telecommunications�Interconnection�Usage�Charges
(Tenth�Amendment)�Regulations”,�to�be�effective�from�April�01,�2009.
Termination�charge�for�all�domestic�calls�has�been�reduced�to�0.4�cents�per
minute.�Termination�charge�for�incoming�international�calls�has�been�increased
to�0.8�cents�per�minute�with�the�expectation�that�the�service�providers�will
pass�this�benefit�to�customers�in�the�form�of�lower�tariffs�for�outgoing
international�calls.�The�ceiling�of�1.3�cents�per�minute�has�been�retained�for�the
carriage�of�domestic�long�distance�calls�to�encourage�national�long�distance
operators�to�expand�into�rural�areas.
• Gartner predicts flat handset sales in 2009
Weak�market�sentiments�and�consumer�caution�is�likely�to�cause�handset�sales
in�India�to�remain�flat�through�2009,�predicts�Gartner.�The�year�2008�saw
around�124�million�handsets�sold�in�India,�up�from�98�million�in�2007.�However,
2009�sales�are�expected�to�be�around�125�million�units.�Consumers�purchasing
high-end�phones�are�likely�to�be�driven�by�need�rather�than�desire�and�are
expected�to�look�for�‘value�for�money’�phones.
Top Telecom Operators, Subscriber Base and Market
Share (February, 2009)
Source:�TRAI,�March�19,�2009
• Shipping firm Mercator bags rig from Keppels for USD 192 million
Shipping�company�Mercator�Lines�has�acquired�a�rig�from�Singapore-based
shipyard�Keppels�FELS�for�USD�192�million.�The�company,�through�its
Singapore�subsidiary�Mercator�Offshore,�has�taken�delivery�of�the�jack-up�rig,
Mercator�Lines.�The�rig�has�the�capability�to�work�at�a�depth�of�350�feet�under
water�and�has�a�drilling�capability�of�30,000�feet.
• Apeejay acquires 67,359 deadweight tonnage gearless Panamax
Apeejay�Shipping�Ltd,�an�Apeejay�Surrendra�Group�company,�acquired�67,359
Deadweight�Tonnage�(DWT)�gearless�Panamax�of�Japanese�make�for�an
undisclosed�amount.�The�ship�is�expected�to�be�renamed�as�‘APJ�Mahalaxmi’.
This�is�in�line�with�Apeejay�Shipping’s�target�to�become�1�million�DWT
company�offering�total�sea�logistics�solutions�by�2010.�The�expansion�plans�of
Apeejay�Shipping�is�also�as�per�schedule�with�‘APJ�Kais’�the�first�of�the�3
geared�Supramaxes�that�the�company�has�ordered�from�China’s�Cosco
Shipyard�Group�which�is�expected�to�join�by�April�2009.�
• Arshiya Rail plans to raise USD 19 million via PE route
Arshiya�rail�Infrastructure,�a�container�rail�service�provider,�has�initiated
discussions�with�PE�players�to�raise�around�USD�19�million�by�divesting�15-18
percent�stake.�The�funds�are�likely�to�be�utilized�to�part-finance�the�second-
phase�expansion�of�the�container�railway�infrastructure�project.�A�total�of�30
rakes�are�likely�be�built�in�the�just-begun�first�phase�and�45�rakes�are�expected
to�be�added�in�the�second�phase�at�an�estimated�investment�of�USD�307
million.�
• Qatar Airways plans expansion in India
Doha-based�air-carrier,�Qatar�Airways,�plans�to�expand�its�operations�in�India
with�new�routes.�The�expansion�in�India�should�see�new�routes�of�Goa�and
Amritsar.�The�two�new�routes-Amritsar�and�Goa�are�expected�to�increase�Qatar
Airways’�Indian�capacity�from�9�to�11�destinations.�The�expansion�is�part�of�the
airlines�ongoing�growth�strategy,�which�entails�a�long�term�commitment�to
develop�its�route�infrastructure�as�new�aircraft�join�the�fleet�at�an�average
delivery�rate�of�one�a�month.
• Mahindra Logistics plans USD 192 million investments
Mahindra�Logistics,�the�100-percent�subsidiary�of�Mahindra�&�Mahindra,�plans
investment�of�USD�192�million�over�the�next�3-4�years.�The�company�plans�to
kick�off�with�an�investment�of�USD�726�million�over�the�next�18-24�months.�The
money�would�be�primarily�utilized�for�modern�warehouses.�Currently,�it�has�6.5
million�feet�of�warehousing�space�and�plans�to�add�2.7�million�square�feet�in
the�next�few�months.�
Page 15 of 18
Transport and Logistics
Analyst: Ashish Punjabi©�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.
*Note:�Container�traffic�at�12�major�ports
Source:�Bloomberg,�March�30,�2009
Note: 1 USD = INR 52.09
Page 16 of 18
©�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 is takenfrom following sources:
• Prime�Minister’s�Economic�Advisory�Council,�eac.gov.in,�March�2009
• DNA,�It’s�disinflation,�not�deflation,�we�are�facing�right�now,�March�22�2009
• Business�Standard,�Peugeot�Scouts�for�Plant�Location�in�India,�February�23,�2009;�Auto�Business�News,�Peugeotplans�to�re-enter�Indian�market,�February�23,2009;�The�Press�Trust�of�India�Limited,�Peugeot�Citroen�scouts�forgreenfield�plant�in�AP,�TN,�February�22,�2009
• The�Economic�Times,�Temsa�Global�to�enter�Indian�bus�market,�February�27,�2009
• The�Economic�Times,�M&M�in�Defense�JV�Talks�With�Lockheed�Martin,�BAE,�March�04,�2009
• United�News�of�India,�MRP�Autorub�enters�into�JV�with�MDI,�March�12,�2009
• Financial�Express,�Vibgyor�group�to�invest�USD�125�million�to�set�up�a�2-wheeler�unit�in�Bengal,�March�13,�2009
• Business�Standard,�IDBI�Fortis�to�infuse�USD�48�million�for�expansion,�March�17,�2009
• Live�Mint,�Aviva�plans�to�foray�into�mutual�fund�business,�March�05,�2009
• The�Hindu�Business�Line,�SBI�ties�up�with�Diebold�for�ATM�expansion,�March�09,�2009
• Business�Standard,�New�ATM�regime�spells�more�revenue�for�big�players,�March�27,�2009
• The�Economic�Times,�IIFL�seeks�license�in�Singapore,�offers�structured�products,�March�17,�2009�
• KPMG,�India�Retail�Report-Time�to�change�lanes,�March�2009
• Business�standard,�DLF�arm�to�launch�Donna�Karan�stores�in�India,�March�27,�2009
• Reuters,�Tata�Tea�acquires�stake�in�Russian�beverages�maker�Grand,�March�26,�2009�and�IBEF,�Tata�Tea�brewsconsolidation�plan,�March�24�2009
• Business�Week,�Oriflame�to�launch�wellness�products�in�India,March�29,�2009
• Financial�Express,�WelcomHeritage�Plans�to�Pick�up�Stake�in�Group�Property,�March�18,�2009
• TravelDailyNews,�The�Leela�Group�Opens�its�First�Northern�Indian�Property,�March�20,�2009
• Business�Standard,�Sarovar�Group's�Five-Star�Hotel�to�Operate�by�2012,�March�17,�2009
• Financial�Express,�Marriott�to�Open�Six�Properties�in�2009,�March�09,�2009
• The�Hindu�Business�Line�,�HCL�Tech�inks�deal�with�National�Insurance,�March�04,�2009
• The�Economic�Times,�Infosys�bags�USD�100�million�outsourcing�contract,�March�24,�2009
• The�Economic�Times,�Diacritech�buys�US-based�KPO�firm,�March�18,�2009
• TCS�Press�Release,�TCS�enters�into�a�long-term�engagement�with�Infineon�Technologies�AG,�March�10,�2009
• IDC,�India�Quarterly�PC�Tracker�2008,�4Q�2008�March�26,�2009
• Asia�Pulse,�India's�PVR,�Thailand's�Major�Cineplex�to�Open�500�Bowling�Lanes,�March�12,�2009
• Dow�Jones�International�News,�Sony�Pictures�Entertainment�Division�Buys�Bengali�Film�Channel,�March�5,�2009
• ENP�News�Wire,�Turner�and�Warner�Bros.�Entertainment�to�Entertain�India�with�the�Launch�of�a�New�Channel:�WB,March�6,�2009
• Economic�Times,�Prices�of�Home�Video�Rights�Fall�40�percent�in�Past�6�Months,�March�2,�2009�
• Indiantelevision.com,�Compact�Disc�arm�to�set�up�gaming�publishing�studio�in�Jaipur,�March�23,�2009�
• Indiantelevision.com,�Reliance�ADAG�floats�TV�production�division,�March�21,�2009
• Economic�Times,�RIL�inks�KG�gas�sale-purchase�contracts�with�12�fertiliser�cos,�March�28,�2009
• Economic�Times,�GAIL�to�be�split;�new�co�to�be�listed,�March�26,�2009
• Economic�Times,�RIL�to�charge�higher�margin�on�KG-D6�gas,�March�23,�2009
• Infraline�News�Update,�Shell�to�tie�up�with�Reliance�Industries�to�sell�its�line�of�automobile�lubricants�in�India,March�20,�2009
• Economic�Times,�IOC�gets�govt�nod�for�merging�BRPL�with�itself,�March�25,�2009
• Livemint,�Reliance�resumes�crude�oil�production�from�KG-D6,�March�12,�2009;�Business�Standard,�RIL�shuts�downcrude�oil�production�at�KG-DG�for�45�days,�March�30,�2009
• Economic�Times,�GAIL�plans�to�invest�USD�192�million�in�CNG�stations,�March�24,�2009
• Economic�Times,�Chennai�Petro�inks�MoU�with�TII�to�implement�integrity�pact,�March�27,�2009
• Company�Press�Release,�http://www.lupinworld.com/march2609.htm,�March�26,�2009
Page 17 of 18
©�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.
• Company�Press�Release,�http://www.zyduscadila.com/press/PressNote30-03-09.pdf,�March�30,�2009
• Financial�Express,�Avesthagen�in�global�foray�with�Chilean�JV,�March�21,�2009
• RTT�News,�Aurobindo�Pharma�Inks�Marketing�Deal�With�Pfizer�For�Finished�Dosage�Products,�March�3,�2009�
• The�Economic�Times,�BHEL�bags�USD�66�million�contract�from�NPCIL,�March�27,�2009
• The�Economic�Times,�Kalpataru�bags�orders�of�USD�72�million�from�Power�Grid,�March�04,�2009
• The�Economic�Times,�R-ADAG�co�to�invest�USD�345�million�for�1,500-km�power�link,�March�12,�2009
• The�Hindu�Business�Line,�Tata-Sasol,�JSPL�get�blocks�for�coal-to-liquid�projects,�March�04,�2009
• The�Financial�Express,�CERC�restructures�UI�regime�to�enforce�grid�discipline,�March�31,�2009
• Express�estates,�FIPB�locks�real�estate�investment�for�3�years,�March�30,�2009
• Mint�and�Business�Standard,�Lodha�Group�To�Develop�USD�185-Million�Township�In�Mumbai,�March�19,�2009
• Deccan�Herald,�The�Hindu,�Government�Allows�Multi-Crore�Foreign�Investment�In�Orange�Realty,�March�19,�2009
• DNA,�Hamptons�Showcase�INR�4,000�Crore�Indian�Realty�Projects�In�London,�March�20,�2009�
• The�Tribune,�Omaxe�Launches�INR�250�Crore�Project,�March�28,�2009
• The�Economic�Times,�CDMA�cos�can�now�offer�GSM�services,�April�01,�2009
• The�Economic�Times,�Bharti�network�most�congested:�Trai�report,�March�31,�2009
• The�Economic�Times,�With�Ortus,�Vodafone�joins�infrastructure�hive-off�club,�March�21,�2009
• TRAI�Press�Release,�March�09,�2009
• The�Financial�Express,�Handset�sales�expected�to�be�flat�in�India�in�09:�Gartner,�March�04,�2009
• Economic�Times,�Shipping�co�Mercator�acquires�rig�from�Singapore�firm�for�USD�192�million,�March�16�2009
• Economic�Times,�Apeejay�Shipping�acquires�67,359�DWT�gearless�Panamax,�March�24,�2009
• Economic�Times,�Arshiya�Rail�takes�PE�route�to�raise�USD�19�million,�March�9,�2009
• Economic�Times,�Qatar�Airways�unveils�expansion�plans�for�India,�March�12,�2009
• The�Hindu�Business�Line,�Mahindra�Logistics�phases�out�USD�192�million�investment�plan��March�02,�2009
• The�Economic�Times,�‘CDMA�cos�can�now�offer�GSM�services’,�April�01,�2009
• The�Economic�Times,�‘Bharti�network�most�congested:�Trai�report’,�March�31,�2009
• The�Economic�Times,�‘With�Ortus,�Vodafone�joins�infrastructure�hive-off�club’,�March�21,�2009
• TRAI�Press�Release,�March�09,�2009
• The�Financial�Express,�‘Handset�sales�expected�to�be�flat�in�India�in�09:�Gartner’,�March�04,�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.
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