SectorSnippets Issue 26:TP4 WhitePaper A4.QXD...

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Sectoral Snippets India Industry Information Issue 26 - December 2008 KPMG IN INDIA

Transcript of SectorSnippets Issue 26:TP4 WhitePaper A4.QXD...

Sectoral SnippetsIndia Industry Information

Issue 26 - December 2008

KPMG IN INDIA

Page 2 of 16

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 Insurance 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 26

Amidst�the�uncertain�global�financial�situation,the�Indian�government�has�recently�undertakena�slew�of�measures�to�maintain�the�economy’sgrowth�momentum�including�targeted�measuresto�increase�mortgage�lending�and�support�smallbusinesses�and�exporters.�India’s�central�bankRBI�also�emphasised�the�need�for�financialstability�in�its�recent�'Report�on�Trend�andProgress�of�Banking�2007-08'�and�is�expected�tofacilitate�monetary�measures�to�ease�liquiditypressures.�The�report�also�indicated�the�impactof�the�global�situation�on�liquidity�and�credit�inIndian�financial�markets�while�maintaining�thatthe�banking�sector�in�India�is�relatively�healthy.

Apart�from�this,�Russian�President�DmitryMedvedev�recently�concluded�his�maiden�three-day�long�trip�to�India,�during�which�the�twocountries�fortified�relations�by�signingagreements�relating�to�nuclear�and�spacecooperation.

I�hope�you�find�this�edition�of�Sectoral�Snippetsinformative�and�useful.

Regards,

Russell

Russell Parera

Chief Executive Officer

KPMG in India

©�2008�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�global�economy�has�been�witnessing�several�critical�challenges�in�terms�of

large�imbalances�created�due�to�the�spurt�in�oil�prices�in�recent�times,�severe

credit�squeeze,�and�heightened�global�economic�and�political�issues�among

others.

The�US�financial�turmoil�has�engineered�a�slowdown�in�a�majority�of�the

country’s�export�centric�sectors�like�IT,�Auto,�Gems�&�Jewellery,�etc.

The�IT�sector�is�witnessing�a�downturn�on�mounting�worries�about�the�US

economy�after�the�Federal�Reserve�slashed�its�growth�forecasts�for�its�economy.

Indian�IT�firms�receive�majority�of�the�share�of�their�revenue�from�exports�to�the

US.�The�weakening�of�the�Indian�currency�is�likely�to�have�an�impact�on�their

revenues�as�companies�are�seeing�flat�billing�rates.

The�auto�sector�too�has�shown�a�decline�on�a�worsening�global�economic

condition�and�declining�domestic�demand�due�to�high�interest�rates�and�fuel

prices.�

With�the�liquidity�crunch�and�poor�performance�of�the�Sensex,�the�realty�sector

too�is�likely�to�witness�a�slowdown�owing�to�lower�demand.�

To�combat�the�current�weak�scenario,�the�Reserve�Bank�of�India�(RBI),�India’s

central�bank�has�announced�measures�to�improve�liquidity�and�help�exporters,

some�of�the�steps�include:

• Increasing�the�limit�on�export�credit�refinance�available�to�banks

• Allowing�housing�finance�companies�to�raise�funds�through�short-term

overseas�borrowings

• Reduction�in�risk�weights�for�banks�on�commercial�real�estate�and�on�unrated

claims�on�corporates.

Thus,�the�government�plans�to�take�necessary�steps�to�augment�the�economy�to

compensate�for�the�downside�caused�by�the�world�economy.�

On�the�bright�side,�inflation�was�hovering�around�8-9�percent�and�has�been

softening�ever�since�it�hit�a�16-year�high�of�close�to�14�percent�in�the�earlier

months.�The�rising�prices�of�oil�in�the�first�half�of�2008,�have�now�corrected

owing�to�a�gradual�slowdown�in�demand.

In�spite�of�the�weak�global�scenario,�India�is�capable�of�emerging�strong�from

the�global�economy�crisis.�The�government�is�taking�various�steps�to�ensure�that

the�shortage�of�demand�from�the�global�slowdown�is�neutralised�to�the�greatest

possible�extent�through�use�of�fiscal�and�monetary�policies�and�increased�public

investment.

Indian EconomyPage 3 of 16

Analyst: Asmita Deshmukh©�2008�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:�Credit�Suisse

Cooling Inflation:

• Anand Automotive plans to invest USD 120 mn to set up 13 plants

Anand�Automotive�Systems,�an�Indian�automotive�components�and�systems

manufacturer,�has�planned�to�invest�USD�120�mn�to�set�up�13�plants�across

India�by�2010.�The�Anand�Group�produces�shock�absorbers,�struts,�front�forks,

engine�bearings,�piston�rings,�castings�and�gaskets,�through�18�companies�at

44�manufacturing�locations,�at�present.�Some�of�the�key�OEM�clients�of�the

company�include�Maruti�Suzuki,�Tata�Motors�and�Mahindra�&�Mahindra.�It�plans

to�increase�exports,�which�account�for�nearly�20�percent�of�total�revenues,�by

entering�new�markets�in�South�East�Asia�and�South�America.

• Sogefi Group acquires 60 percent stake in MN Rama Rao Filters

Sogefi�group,�an�Italian�auto�parts�manufacturer�has�reportedly�acquired�60

percent�stake�in�MN�Rama�Rao�Filters�(MNR�Filters)�of�Bangalore�for�an

undisclosed�sum�through�its�subsidiary�Filtrauto�of�France.�MNR�Filters

manufactures�air�filters�for�two�and�three�wheelers.�Its�major�clients�are�Hero

Honda,�Bajaj�Auto�Ltd.�and�TVS�Motors.�The�acquisition�is�expected�to�help

both�companies�expand�their�product�portfolio�and�allow�Sogefi�to�utilise�India's

low�cost�structure�to�create�products�for�exports’�markets.�Sogefi�also�plans�to

manufacture�engine�oil�filters�and�diesel�and�gasoline�filters�in�India.

• Delphi Corporation announced to invest USD 50 mn

Delphi�Corporation,�an�automotive�component�manufacturer,�plans�to�set�up�a

new�electronics�manufacturing�facility�in�Oragadam�near�Chennai.�The�new

facility�is�expected�to�be�operational�by�end�of�2009,�and�is�to�be�put�up�with

an�investment�of�USD�50�mn,�in�phases,�over�the�next�5�years.�The�new�unit�is

expected�to�manufacture�electronic�products�in�the�areas�of�controls�and

security,�safety�and�entertainment�and�communications.

• Toyota plans to invest USD 639 mn for its new plant

Toyota�Motor�Corporation�(TMC)�is�expected�to�invest�USD�639�mn�for�the

second�manufacturing�plant�in�Bangalore�through�Toyota�Kirloskar�Motor�(TKM).

TKM�is�a�joint�venture�company�between�TMC�and�the�Kirloskar�Group.�The

company�plans�to�invest�USD�329�mn�for�the�buildings�and�basic�equipment

and�USD�310�mn�for�both�the�general-purpose�and�specialised�equipment

necessary�for�manufacturing�a�new�compact�vehicle.�The�new�plant�is�expected

to�be�operational�by�2010�and�is�reported�to�have�an�annual�production�capacity

of�100,000�units.

• Suzuki Motorcycles to invest USD 30 mn for capacity expansions

Suzuki�Motorcycles�India�Pvt.�Ltd.,�the�Indian�two-wheeler�unit�of�Suzuki�Motor

Corp.�is�expected�to�invest�USD�30�mn�to�expand�its�production�capacity�of

scooters�and�motorcycles�at�its�Gurgaon�plant.�The�company�currently

manufactures�150,000�units�annually�which�is�expected�to�be�increased�to

250,000�units�by�June�2009.

Page 4 of 16

Auto and Auto Components

Analyst: Rajiv Somani©�2008�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:�Ministry�of�Petroleum�and�Natural�Gas

CNG Vehicles in selected cities (as of April

2008)

81%�of�the�CNG�run�vehiclesare�concentrated�in�Delhi�andMumbai�combined

• SBI forms alliance with IAG for general insurance business

India’s�leading�public�sector�bank,�State�Bank�of�India�(SBI)�and�InsuranceAustralia�Group�(IAG)�has�signed�a�joint�venture�agreement�to�set�up�generalinsurance�business�in�India.�IAG,�the�largest�general�insurance�group�inAustralia,�is�to�hold�26�percent�stake�in�the�new�entity,�while�SBI�is�to�hold�therest.�SBI�is�already�present�in�the�life�insurance�business�in�India�through�itssubsidiary�SBI�Life�Insurance�Company�of�India.�IAG�has�operations�in�Australia,New�Zealand,�Thailand,�Malaysia,�China�and�the�UK�and�its�current�businessesunderwrite�nearly�USD�5�billion�of�premium�annually.�

According�to�industry�sources,�insurance�penetration�in�India�is�very�low�andthe�general�insurance�industry�is�expected�to�grow�at�15–20�percent�perannum�over�a�period�of�the�next�10�years.�The�general�insurance�business�inIndia�recorded�a�growth�of�12.5�percent�in�premium�in�2007-08,�with�presenceof�13�players.�

• Yes Bank ties-up with UAE's Mashreq Bank

India’s�private�sector�lender�Yes�Bank,�has�formed�strategic�alliance�with�UAE'sMashreq�Bank�to�offer�its�services�to�Mashreq�Gold�customers�in�UAE.�Thepartnership�is�to�allow�Mashreq�Gold�customers�in�the�UAE�to�open�Indianrupee�savings�account�and�fixed�deposits.�Through�this�alliance,�Yes�is�also�toprovide�its�UAE�customers�with�Yes�First�program,�which�aims�at�providingcustomized�solutions�for�multiple�investment�opportunities�in�India�through�arange�of�products�and�advisory�services.�Mashreq�is�a�leading�private�bank�inthe�UAE�and�with�large�presence,�particularly�in�retail�banking.

• BNP Paribas forms joint-venture with Sundaram Finance

Sundaram�Business�Services�(SBS),�a�unit�of�Sundaram�Finance,�and�BNPParibas�Securities�Services�have�formed�an�alliance�to�provide�securitiesservices�in�India.�The�new�venture�is�to�be�called�Sundaram�BNP�ParibasSecurities�Services.�SBS�is�hold�51�percent�and�BNP�Paribas�is�to�hold�the�rest.Sundaram�BNP�Paribas�Securities�Services�is�likely�to�be�dedicated�to�provide�afull�range�of�securities�services,�including�fund�accounting�and�transfer�agencyto�both�domestic�and�off-shore�investors�in�India.�BNP�Paribas�has�an�existingjoint�venture�to�provide�asset�management�and�housing�finance�services�withthe�Sundaram�Group.�

SBS�is�the�Business�Process�Outsourcing�(BPO)�arm�of�Sundaram�Finance,engaged�in�providing�transaction�processing�services�primarily�to�the�financialservices�industry.

• Actis to invest USD 1billion in India

Global�private�equity�firm,�Actis�plans�to�invest�USD�1�billion�in�India�over�thenext�3-4�years.�Actis�has�raised�USD�2.9�billion�for�investing�across�emergingmarkets,�under�its�Actis�Emerging�Markets�3�Fund�(AEM3).�The�AEM3�fundplans�to�invest�a�minimum�of�USD�50�million�in�buyout�and�growthtransactions.�AEM3�includes�commitments�from�a�group�of�100�investors�fromacross�the�globe.�Actis�has�been�a�operating�in�India�for�over�10�years�and�hasmade�several�good�exits�in�India.

Page 5 of 16

Banking and Insurance

Analyst: Kunal Jain©�2008�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.

"Entering the Indian generalinsurance market has been apriority for IAG for some time, tosupport our longer term growthand profitability. India has a largeand expanding economy, with ageneral insurance marketpredicted to grow 15–20 percentper annum over the next 10years.” Michael Wilkins - Managing Director and ChiefExecutive Officer, Insurance Australia Group Limited(IAG)(Source: IAG Company Press Release, 24 November,2008.)

• Esprit betting big on India - Plans to expand to 21 Indian cities and

to set up 100 stores

Esprit,�the�international�luxury�watch�and�apparel�brand�retailed�by�MaduraGarments�in�India,�plans�to�broaden�its�India�presence�from�9�cities�to�21�citiesover�the�next�3�years.�The�company�plans�to�open�about�100�stores�in�a�span�of3�years�but�does�not�intend�to�take�the�franchise�route�for�the�expansion.�Espritalso�plans�to�open�a�big�format�store�of�approximately�10-15,000�sq.�ft.�area�inDelhi�in�the�next�2�years.�Esprit,�which�has�been�growing�at�167�percentcompound�annual�growth�rate,�sees�India�as�one�of�the�key�markets�forexpansion.�Currently,�Esprit�has�43�stores,�including�20�outlets�and�23�shop-inshops�outlets.�It�is�looking�at�Tier-I�and�Tier-II�cities�for�its�growth�plans.

• Reliance retail to set up 55 stores for home appliances by 2010

Reliance�Retail�plans�to�set�up�55�multi-brand�showrooms�stores�for�homeappliances�and�electronic�goods�across�the�country�over�the�next�2�years.�Thestores�would�be�set�up�under�Reliance�Digital,�the�consumer�durables�arm�ofReliance�Retail.�The�company�also�inaugurated�the�'iStore'�outlet�in�Chennaiunder�Reliance�Digital.�The�'iStore'�outlet,�which�houses�the�entire�Apple�rangeof�products,�is�built�on�an�area�of�1,100�sq.�ft.�The�company�already�has�twoiStores�in�Bangalore�and�one�each�in�Hyderabad,�Mumbai,�Ahmedabad,�Bhopal,Jaipur�and�Ludhiana.

• Dabur India acquires 72.2 percent stake in Fem Care Pharma

Dabur�India,�acquired�a�72.2�percent�stake�in�Fem�Care�Pharma,�an�Indianplayer�in�the�women’s�skin�care�products�market,�for�USD�41�million�in�an�all-cash�deal.�The�transaction�assigns�a�price�per�share�of�USD�16,�whichtranslates�into�an�equity�valuation�of�USD�56.8�million�and�an�enterprisevaluation�of�approximately�USD�60.3�million�for�Fem�Care�Pharma.�Dabur�is�tomake�an�open�offer�for�an�additional�20�percent�stake�in�the�company�asrequired�under�the�takeover�regulations.�Fem�Care’s�acquisition�is�in�line�withDabur’s�strategy�to�aggressively�expand�the�latter’s�scale�of�operations�andstrengthen�its�presence�in�the�fast�moving�consumer�goods�(FMCG)�space.�Thetransaction�is�likely�to�give�Dabur�a�full-�size�entry�into�the�high-growth�skincare�market�with�Fem�Care’s�established�brand,�‘FEM’.�Fem�Care�Pharma�alsohas�a�sizeable�international�market�presence�in�Yemen,�Maldives,�Mauritius,Malaysia,�UAE,�Oman,�etc.�Its�distribution�reach�covers�125�thousand�retailoutlets�and�25�thousand�parlours�directly.�

• Titan industries plans major Indian expansion

Titan�Industries�plans�to�open�300�retail�stores�of�Titan�Eye�by�2011�acrossIndia.�The�company�also�plans�to�add�another�20�exclusive�optical�showroomsby�the�end�of�the�fiscal�year�2009.�Titan�aims�to�capture�a�substantial�share�inthe�Indian�eyewear�market.�It�intends�to�confine�market�worth�USD�10�millionby�2009-2010�and�USD�60-100�million�by�2010-2011.

Page 6 of 16

Consumer Markets and Retail

Analyst: Sonia Topiwala ©�2008�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 Indian eyewear market isestimated to be worth USD 300million to USD 400 million.Approximately 30 percent of theIndian population requires visioncorrection, thereby creating ahuge potential for companies totap.”(Source: Financial express, 24 November, 2008)

• Oakwood Launches Service Apartment in Bangalore

Oakwood,�a�US-based�service�apartment�major�has�launched�its�secondproperty�in�India�at�Bangalore.�This�177�serviced�residences�property�has�beenbuilt�at�an�investment�of�INR�100�crore.�The�service�apartment�is�expected�totarget�both�corporate�and�leisure�travels.�The�company�had�a�tie-up�withPrestige�Group,�a�Bangalore�based�developer�for�the�development�of�thisproperty.�Oakwood’s�first�property�in�India�was�opened�in�Pune�–�‘OakwoodResidence’�in�2007.�The�company�also�plans�to�operate�a�portfolio�of�10properties�in�Mumbai,�Pune,�New�Delhi,�Hyderabad�and�Chennai�by�2011.

• Bharat Hotels to expand its business

Bharat�Hotels,�one�of�the�leading�hospitality�groups�in�India�plans�to�set�up�8more�hotels�in�India�and�another�two�in�Dubai�and�Thailand�in�next�three-fouryears.�The�group�is�likely�to�invest�INR�1,200�crore�for�the�development�ofthese�hotels.�These�planned�additions�are�expected�to�take�the�company’sinventory�to�3,600�rooms�from�its�current�inventory�of�1,500�rooms.�BharatHotels’�new�properties�are�likely�to�be�opened�in�Kolkata,�Jaipur,�Ahmadabadand�Chandigarh�in�India.�

The�group�has�also�decided�not�to�renew�its�franchise�agreement�with�theglobal�hospitality�chain�‘InterContinental’.�These�hotels�are�reportedly�being�re-branded�as�‘The�Lalit’.

• Royal Orchid forms alliance with Ramada Worldwide

Royal�Orchid,�one�of�the�leading�hospitality�players�in�south�India�has�securedan�exclusive�development�rights�for�the�Ramada�brand�of�Ramada�Worldwide.Under�this�agreement�Royal�Orchid�plans�to�open�and�manage�10�more�hotelsin�Pune,�Chennai,�Nagpur,�Hyderabad,�Jaipur,�Coimbatore�and�Mumbai�by�2012.This�strategic�alliance�with�Ramada�Worldwide,�a�part�of�Wyndham�Group�islikely�to�enable�Royal�Orchid�to�double�its�room�inventory�and�spread�itspresence�across�India.��

The�company�currently�operates�10�hotels�in�India�under�the�five-star�and�four-star�category.�It�also�plans�to�open�its�first�overseas�property�in�Dar-Es-Saalamin�Tanzania�by�2010.

• Unitech to sell hotel properties

Unitech,�one�of�the�leading�real�estate�players�in�India�plans�to�sell�all�its�sixhotel�properties�being�constructed�at�Gurgaon�and�Kolkata.�The�company�is�intalks�with�a�few�private�equity�investors�to�sell�these�hotels�to.�The�sale�isexpected�to�enable�the�company�to�raise�funds�for�its�ongoing�projects�andreduce�the�capital�expenditure.�The�company�has�also�curtailed�its�hotelexpansion�plan�from�2,500�rooms�to�1,500�rooms.

Page 7 of 16

Analyst: Pallavi Phatak

Hospitality

©�2008�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 tourism and travel industrywill be impacted in the near-term.However in the long-term,sentiment to invest and travel toIndia won't be affected."By Adrian Mowat, MD, JPMorgan on Terror attacks inMumbai(Source: CNBC-TV18, 27 November, 2008)

• Satyam acquires Motorola's Malaysia Software Development

Center

One�of�India’s�leading�IT�players,�Satyam�Computers,�has�acquired�Motorola'sMalaysia�Software�Development�Center�(SDC).�As�per�the�terms�of�the�deal,Satyam�is�to�take�over�the�unit’s�assets�and�absorb�the�centre’s�128employees.�The�acquisition�is�expected�to�bring�in�synergies�and�boostcompetitiveness�of�both�the�players�not�only�in�Malaysia�but�throughout�theAsia-Pacific�region.�The�deal�is�in�line�with�the�company’s�decision�to�exit�fromnon-core�businesses.

• Campus Management acquires CRM Business of nGenera

Florida-based�Campus�Management�Corp�(CMC)�has�acquired�nGenera’sTalisma�Customer�Relationship�Management�(CRM)’s�line�of�business.�TalismaCRM�is�a�leading�software�product�suite�providing�multi-channel�CustomerRelationship�Management�for�a�range�of�industries.�It�includes�entire�CRMsoftware�product�suite,�the�Talisma�Higher�Education�business�unit�based�inBellevue�WA,�and�Talisma�Corporation�Private�Ltd.�in�Bangalore,�India.�As�perthe�terms�of�the�agreement,�CMC�is�to�own�the�Talisma�brand,�while�nGenerais�to�have�ownership�of�Talisma’s�Customer�Interaction�Management�(CIM)software�products�and�business.

• TCS inaugurates delivery centre at Tianjin in China

To�support�local�business�opportunities�as�well�as�BPO�opportunities�in�the�US,the�Japanese�and�European�markets,�Tata�Consultancy�Services�(TCS)�hasopened�a�global�delivery�centre�in�Tianjin,�China.�This�300-seat�delivery�centreat�Tianjin�is�company’s�fourth�global�delivery�centre�in�China�after�Beijing,Shanghai�and�Hangzhou.�It�is�also�to�serve�as�an�extended�Centre�ofExcellence�for�Microsoft,�Oracle�and�SAP�to�meet�the�unique�technology�needsof�customers.

• I-Vista Digital acquired by R K Swamy Hansa

RK�Swamy�Hansa�(Hansa),�a�leading�advertising�and�marketing�agency,�hasacquired�a�strategic�stake�in�enterprise�solutions�provider�i-Vista�DigitalSolutions.�The�40�percent�stake�is�to�be�acquired�in�2�stages-�26�percent�in�thefirst�stage�and�further�increasing�it�to�40�percent�over�the�next�2�years.�Withthis�deal,�I-Vista�expects�to�strengthen�its�presence�in�the�US�market�to�cross-sell�and�up-sell�while�Hansa�believes�the�deal�is�likely�to�enhance�its�serviceofferings�to�200-plus�clients�in�the�sub-continent�and�about�20�in�the�US.

• Trans-India Acquisition Corporation to acquire Solar

Semiconductor Ltd.

Trans-India�Acquisition�Corporation�has�signed�a�definitive�agreement�to�acquirenot�less�than�80�percent�of�privately�held�Solar�Semiconductor�Ltd.�(Solar).�Themerger�is�expected�to�ease�the�pressures�in�the�current�financial�climate�andcontribute�towards�the�continuation�of�Solar’s�expansion�plans,�as�well�as�theincrease�in�production�to�meet�current�orders.�Solar�Semiconductor�designs,manufactures�and�sells�solar�photovoltaic�modules�for�industrial,�commercial,public�utility�and�residential�applications�internationally.�Incorporated�in�theCayman�Islands,�Solar�has�subsidiaries�in�the�United�States�and�India.

Page 8 of 16

Analyst: Parnika Patil

IT / ITeS

©�2008�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 Tianjin and Shenzhenfacilities are strategic investmentsto strengthen our informationtechnology infrastructure in orderto leverage the local talent pool.These facilities will help usservice the vibrant local marketand support our internationaloperations in Japan, the US andEurope."Girija Pande, Executive Vice-President and Head ofAsia Pacific division, Tata Consultancy Services.(Source: Livemint, 12 November, 2008)

• NDS to invest USD 150 million in Indian operations

NDS�Group�is�expected�to�invest�USD�150�million�over�the�next�4�years�in�Indiato�enhance�its�operations.�With�this�invested�amount�the�company�is�likely�toenhance�its�research�and�development�alongside�other�commercial�andcustomer�support�operations.�The�company�has�in�the�past�invested�USD�120million�in�India�and�is�accelerating�their�investments�to�keep�up�with�theexpected�growth�of�pay�TV.�NDS�is�a�UK-based�global�digital�pay�and�aninteractive�TV�technology�provider.�

• Shemaroo to invest USD 40 million on biz expansion

Media�house�Shemaroo�Entertainment�is�likely�to�invest�about�USD�40�millionin�the�next�18�months.�The�company�plans�to�expand�its�operations�acrossvarious�verticals�in�the�film�and�video�business.�Initially,�Shemaroo�wasprimarily�into�the�home�video�business�but�now�it�plans�to�expand�into�otherareas�of�entertainment�as�well,�for�which�this�investment�has�been�earmarked.

• NDTV signs distribution pact with ITV

NDTV�has�entered�into�a�distribution�pact�with�UK-based�ITV�for�the�telecastrights�of�its�Granada�TV,�across�India�and�other�South�Asian�countries.�Granadais�a�general�entertainment�channel�which�is�to�offer�its�Indian�viewerscontemporary�dramas,�like�Prime�Suspect,�The�Jeremy�Kyle�Show,�The�FridayNight�Project,�Ballroom�Bootcamp,�Airline�and�Vroom�Vroom.�As�per�theagreement,�the�channel�is�expected�to�be�broadcasted�in�English�initially,�withlocal�sub-titles�available�in�the�launch�markets.

• STAR Jupiter to hold majority stake in Asianet

STAR�has�entered�into�a�joint�venture�(JV)�with�Jupiter�Entertainment�forenhancing�the�viewing�experience�for�audience�in�South�India.�The�new�jointventure�STAR�Jupiter�Entertainment�is�to�hold�majority�interest�in�AsianetCommunications.�Asianet�currently�broadcasts�general�entertainment�channels(GECs)�in�languages�such�as�Kannada,�Telugu,�Malayalam�and�Tamil.�STARJupiter�is�also�expected�to�additionally�invest�for�developing�new�entertainmentassets�in�the�southern�markets.�The�JV�is�also�likely�to�introduce�several�areasof�co-operation,�including�film�co-production�by�Fox�STAR�Studios�India�andIndigo�Movies,�Jupiter�Entertainment’s�movie�production�arm.

• Adlabs plans investments worth USD 40 Million

R-ADAG�owned�Adlabs�film�has�planned�investments�worth�USD�40�million�inits�integrated�film�service�and�movie�exhibition�business.�The�company�is�likelyto�invest�USD�20�million�in�the�expansion�of�its�film�service�business�and�theremaining�USD�20�million�for�adding�100�screens�in�India,�40-50�screens�inMalaysia�and�few�screens�in�America.�The�company�is�also�setting�up�one�ofthe�largest�film�studios�in�Mumbai�which�is�expected�to�commence�by�the�endof�next�year.

Page 9 of 16

Media

Analyst: Mehul Desai©�2008�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 business of alternativecontent is an unexplored territoryand Shemaroo aims to make it bigin this area. We intend to expandthe market itself by creatingnewer avenues to explore andlead the industry to newerhorizons. This kind of content iscertainly a unique entertainmentgenre that audiences will love toconsume.” Hiren Gada, Shemaroo Entertainment Director,commenting on Shemaroo’s investments across variousverticals.(Source: Economic Times, 2 November, 2008.)

• GAIL and IOC to set up petrochemical plant

State-run�Gas�Authority�of�India�Ltd.�(GAIL)�and�refiner�Indian�Oil�Corporation

Ltd.�(IOC)�have�entered�into�an�agreement�to�set�up�a�petrochemical�plant�at

Barauni�in�Bihar.�The�proposed�chemical�plant�is�expected�to�cost�approx.�USD

203�million.�The�chemical�plant�is�also�expected�to�utilise�250,000�tonnes�of

naphtha.�A�130�km�spur�line�is�likely�to�be�laid�from�Gaya�to�transport�gas�to

the�Barauni�fertilizer�plant�and�GAIL’s�Jagdishpur-Haldia�pipeline�is�expected�to

transport�the�gas�found�in�eastern�offshore.

• OVL bags Colombia oil block

ONGC�Videsh�Ltd�(OVL),�the�overseas�arm�of�Oil�&�Natural�Gas�Corporation

Ltd.�(ONGC)�and�Pacific�Stratus,�a�local�oil�and�gas�firm�have�together�bagged

an�oil�block�in�Colombia�through�an�auction.�The�consortium�is�expected�to

invest�USD�23�million�in�the�first�phase�of�exploration.�The�block�is�550�km�long

consisting�of�270,702�hectares�of�total�area.�

• GAIL signs agreement with Himachal state government

Gas�Authority�of�India�Ltd.�(GAIL)�has�entered�into�an�agreement�with�the

Himachal�Pradesh�government�to�study�the�feasibility�of�extending�their�Dadri-

Bawana-Nangal�natural�gas�pipeline�to�the�state.�GAIL�is�expected�to�assess

the�potential�demand�of�natural�gas�and�its�allied�products�in�Himachal�Pradesh.

The�Dadri-Bawana-Nangal�is�a�610�km�pipeline�project,�which�is�to�pass�through

Uttar�Pradesh,�Delhi,�Haryana�and�Punjab.

• OVL and IRP strike oil in Egypt

ONGC�Videsh�Ltd.�(OVL)�and�its�partner�IRP�Red�Sea�Inc.�have�made�a�second

oil�discovery�in�an�offshore�block�in�Egypt.�This�discovery�was�made�in�the�Gulf

of�Suez,�off�the�North�Ramadan�Concession.�The�block�struck�113�feet�of�oil

bearing�sands�and�was�drilled�to�a�depth�of�11,700�feet.�During�its�testing,�it

produced�800�barrels�per�day�of�oil�and�0.50�million�standard�cubic�feet�per�day

(mmscfd)�of�gas.

• EEPL buys two Australian oil blocks

Conglomerate�Essar�has�become�the�first�Indian�oil�company�to�enter�Australia

through�ESSAR�Exploration�&�Production�(EEPL).�EEPL�has�been�awarded�2

offshore�petroleum�exploration�block�permits�NT/P77�and�NT/P78�in�shallow

offshore�in�the�northern�territory�of�Australia.�These�blocks�are�placed�in�a

proven�petroliferous�basin�close�to�producing�oil�and�gas�fields.�Essar�was�the

sole�bidder�for�the�NT/P77�block,�located�in�the�Bonaparte�basin.

• SpiceGas to invest USD 80 million by 2015

Delhi-based�SpiceGas�has�plans�to�invest�approx.�USD�80�million�over�the�next

7�years.�The�company�plans�to�set�up�about�700�gas�stations�by�2015.�Funds

are�expected�in�the�form�of�internal�accrual�and�outside�investors�as�well.�The

company�is�looking�at�both�organic�and�inorganic�routes�for�growth.�It�is

expected�to�adopt�a�mixed�approach�with�20�percent�company-owned�stations

and�the�rest�through�the�franchisee�route.�In�the�first�year,�the�company�is

likely�to�introduce�about�40�stations�in�the�states�of�Gujarat,�Maharashtra,

Madhya�Pradesh,�Chhattisgarh�and�Andhra�Pradesh..

Page 10 of 16

Oil and Gas

Analyst: Suman Lala©�2008�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:�Petroleum�Planning�and�Analysis�Cell

Note:�Figures�for�2008-09�are�estimates

September International Prices of Indian

Basket Crude Oil

• Zydus Cadila acquires a research based subsidiary of Dutch

Biopharma Company

Zydus�Cadila,�a�leading�Indian�pharmaceutical�company�with�global�operations,has�acquired�Etna�Biotech,�a�wholly�owned�subsidiary�of�Crucell�N.V.,�a�Dutchbiopharma�company.�Etna�Biotech�is�mainly�involved�in�vaccine�related�researchand�development�and�is�the�first�ever�research-based�company�acquired�byZydus.�It�is�expected�to�provide�Zydus�with�a�research�platform�for�developingnew�vaccines�and�technology.�This�acquisition�is�also�expected�to�give�Zydus�anaccess�to�Etna’s�technologies�as�well�as�its�vaccine�pipeline�with�productsunder�different�stages�of�development.�Some�of�Etna’s�prominent�vaccineprograms�are�in�areas�of�Hepatitis�and�Malaria.�This�move�marks�Zydus’�entry�inthe�vaccine�research�space.

• ICON Central Laboratories, a division of ICON plc, Ireland has set

up a laboratory in India

ICON�plc,�a�company�that�offers�outsourced�development�services�topharmaceutical,�biotechnology�and�medical�device�industry,�has�set�up�a�fullservice�central�laboratory�in�India.�The�company�believes�that�India�has�become�ahub�for�global�clinical�trials.�ICON�also�offers�a�test�menu�that�does�not�require�theneed�to�export�samples�thereby�enabling�it�to�be�a�one-stop-shop�for�conductingcomplex�clinical�trials�in�India.�

ICON�Central�Laboratories�is�a�division�of�ICON�plc,�a�company�that�offers�fullservice,�global�central�laboratory�services�from�its�core�facilities�in�New�York,Dublin,�Singapore�and�India,�as�well�as�through�quality�affiliate�laboratories�in�Chinaand�Japan.

• Jubilant Organosys has acquired a Canadian web-based Electronic

Data Capture (EDC) solutions company

Jubilant�Organosys�Ltd.,�one�of�India’s�leading�Custom�Research�andManufacturing�Services�companies,�has�through�its�subsidiary�Clinsys�ClinicalResearch,�Inc.,�New�Jersey,�acquired�TrialStat�ClinicalAnalytics,�Canada�for�apurchase�consideration�of�USD�604,420.�TrialStat�CA�is�a�web-based�EDCsolutions�company�that�allows�all�aspects�of�a�study�to�be�configured,�deployedand�managed�through�a�browser�interface�resulting�in�quick�and�cost�effectivestudies.�This�acquisition�is�expected�to�enhance�Jubilant’s�integrated�solutionsto�include�web-based�EDC�services�as�well�as�enable�TrialStat�to�provide�abroad�range�of�services�to�its�contract�research�and�biopharmaceutical�clients.

• Astellas Pharma, Japan has set up a marketing subsidiary in India

Astellas�Pharma�Inc.,�a�Research�and�Development�(R&D)�driven�globalpharmaceutical�company�in�Japan,�has�set�up�its�subsidiary�in�India�-�AstellasPharma�India�Private�Limited.�The�subsidiary�would�mainly�be�involved�in�thedevelopment�of�sales�and�marketing�activities�of�its�in-house�productsspecifically�in�the�areas�of�immunology�and�urology.�With�this�move,�Astellas�isexpected�to�further�expand�its�reach�in�the�Asian�market.�Astellas�already�hasmarketing�subsidiaries�in�seven�areas�within�Asia-�across�China,�Korea,�Taiwan,Hong-Kong,�the�Philippines,�Thailand�and�Indonesia.

Page 11 of 16

Pharma

Analyst: Nandita Kudchadkar & Dhruti Parikh

©�2008�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 has become a key region forglobal clinical trials, which hasgreatly boosted the demand forlocal laboratory testing within aglobal laboratory network”.Bob Scott-Edwards, President, ICON CentralLaboratories (Commenting on setting up of a fullservice laboratory in India)(Source: Company Press Release, 12 November, 2008)

http://www.iconclinical.com/index.asp?GetPress=TRUE&id=241&sid=4&ssid=0&sssid=0Rate for converting Canadian Dollars to USD - 0.80533/ 0.80589 (bid/ask)

• Coal linkages approved for 35,000 MW power projects

The�Standard�Linkage�Committee�of�central�government�has�approved�coallinkages�for�power�projects�with�a�combined�capacity�of�35,000�MW�that�areexpected�to�start�production�by�the�end�of�XIth�Plan.�With�this�approval�thetotal�coal�linkage�available�to�all�power�projects�under�XIth�plan�has�touched80,000�MW.�This�80,000�MW�worth�of�projects�with�allocated�coal�linkages�islikely�to�nearly�consume�400�million�tones�of�coal�every�year�under�100�percentcapacity�utilization�levels.

• TNEB enters into JV with BHEL to set up USD 1737 million power

plant

State�run�Bharat�Heavy�Electricals�Limited�(BHEL)�has�entered�into�anagreement�with�Tamil�Nadu�Electricity�Board�(TNEB)�to�set�up�2�x�800�MWthermal�power�plant�at�Udangudi�in�Tamil�Nadu�with�an�estimated�investmentof�USD�1737�million.�The�project�is�to�be�executed�through�Special�PurposeVehicle�(SPV)�known�as�Udangudi�Power�Corporation�Ltd.�Equipment�for�theproject�is�to�be�provided�by�BHEL�while�TNEB�is�to�run�and�execute�the�project.

• Solar module manufacturing facility in Nashik

PLG�Power�Ltd.�belonging�to�PLG�Group�is�planning�to�invest�USD�100�millionto�set-up�a�solar�module�manufacturing�facility�at�Sinnar�near�Nashik.�Theproposed�facility�is�to�be�100�percent�Export�Oriented�Unit�(EOU)�in�technicalcollaboration�with�Spire�Corporation�of�US.�In�the�first�phase,�the�companyplans�to�achieve�an�annual�turnover�of�USD�90�million�and�USD�200�million�bythe�end�of�the�second�phase.�The�company�already�signed�MoUs�and�long-termagreements�with�suppliers�and�buyers�worldwide�to�back�its�expansion�plans.

• Alstom sets up hydro power R&D center in Gujarat and forms JV

with Bharat Forge

Alstom,�the�French�equipment�manufacturer,�has�set�up�its�R&D�centre�for�thehydro�power�sector�in�Vadodra,�Gujarat.�The�centre�is�expected�to�enable�thecompany�to�develop�innovative�products�to�serve�Indian�hydro�market.�Thecompany�has�also�formed�a�JV�with�domestic�auto�component�manufacturer,Bharat�Forge�to�manufacture�super-critical�turbines�and�generator�sets�forthermal�power�plants�and�also�plans�to�supply�nuclear�power�generationequipment�in�the�future.

• Distribution network revival to cost CESC USD 400 million

RPG�group�owned�Calcutta�Electric�Supply�Company�(CESC)�plans�to�investUSD�400�million�over�next�5�years�to�revive�its�power�distribution�infrastructure.CESC�has�appointed�SP�Global�Solutions�as�consultants�for�the�proposedproject.�SP�Global�Solutions�plans�to�help�the�company�in�strategic�planning,technology�application�and�process�standardization�for�upgrading�thedistribution�network�within�the�567-km�licensed�area.�The�proposed�investmentis�likely�to�reduce�the�Transmission�&�Distribution�(T&D)�losses�of�the�company.�

Page 12 of 16

Power

Analyst: Rajiv Parekh©�2008�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.

Sectoral

Interventions

Potential

Energy

Savings

Likely Investments

by Private Sector

(USD million)*

Agriculture 60�b�KWh 2994

Municipalities 3.7�b�KWh 319

Buildings 3.52�b�KWh 240

Industry 98�b�KWh 4790

Lighting 70�b�KWh 798

Source:�National�DSM�Roadmap,�BEE*�1�USD�=�INR�50.1

Demand Side Interventions-Potential &

Oppurtunities

• Falcon to invest USD 60 million for group housing

Falcon�Realty�Services,�the�Gurgaon-based�real�estate�company,�is�planning�to

invest�about�USD�60�million�to�develop�a�group�housing�project�in�Haryana.�The

project�is�to�be�developed�on�a�35�acre�plot�and�is�expected�to�have�5000�flats

of�360�square�feet�each�and�would�be�sold�at�about�USD�11,000�each.�Through

this�project,�the�company�wants�to�enter�the�affordable�housing�segment.�The

project�is�expected�to�be�completed�by�the�first�quarter�of�2011.�The�company

plans�to�fund�the�project�by�investing�about�USD�20�million�from�its�internal

accruals�and�raising�USD�50�million�from�private�firms.

• Parsvnath forms JV with Constructora San Jose

Parsvnath�Developers�has�formed�a�50:50�JV�with�Constructora�San�Jose,�a

Spanish�infrastructure�company,�to�enter�the�infrastructure�space.�The�JV,�to�be

called�The�SanJose�—�Parsvnath�Consortium,�plans�to�bid�for�various

infrastructure�development�projects.�The�JV�has�qualified�for�submitting�a

financial�bid�for�construction�of�an�elevated�expressway�on�NH-4�and�the

contract�is�valued�at�USD�244�million.�The�JV�plans�to�bid�for�various

infrastructure�projects�in�the�transportation,�aviation,�power�generation�and

transmission�segments.

• Golden Gate to develop affordable housing

Golden�Gate,�the�Hyderabad-based�real�estate�company,�is�planning�to�develop

affordable�housing�township�near�Hyderabad�with�an�investment�of�about�USD

100�million.�The�township�will�have�3,500�units�of�2�and�3�bedrooms�with�area

of�990-1,490�square�feet�and�the�prices�are�expected�to�start�at�USD�40,000.

The�company�launched�its�first�such�project�in�Bangalore�and�plans�to�set�up

similar�projects�in�10�cities�in�the�south,�beginning�with�Chennai,�and�followed

by�Vizag,�Vijayawada,�Mysore,�Coimbatore,�Cochin�and�others.

• Vipul launches USD 80 million project

Vipul�Limited,�a�Gurgaon-based�real�estate�company,�has�launched�an

integrated�township�project�in�Ludhiana�with�an�investment�of�about�USD�80

million.�The�township�is�to�be�spread�over�an�area�of�109�acres�and�comprises

of�a�hotel,�plots,�lifestyle�villas,�premium�apartments,�commercial�complex,

shopping�arcade�and�a�clubhouse.�The�plots�are�to�be�priced�at�about�USD�260-

300�per�square�yard.�The�company�has�raised�debt�of�USD�20�million�from�LIC

Housing�Finance�and�has�also�tied�up�with�Solitaire�Capital�India,�real�estate

venture�fund,�which�would�invest�25�percent�of�the�total�amount�in�the�project.

The�company�also�plans�to�use�its�internal�accruals�and�other�sources�of�debt

to�fund�the�project.

• Barwa enters into a JV with Sun

Barwa�Real�Estate,�a�Qatar-based�real�estate�developer,�has�entered�into�a�JV

with�Sun�Group,�an�India-based�business�conglomerate,�to�invest�in�the�Indian

real�estate�market.�The�JV�is�to�be�called�Sun-Barwa�Land�and�would�raise

funds�from�investors�in�Qatari�and�Middle�East�to�acquire�and�develop�land

banks�in�high�growth�corridors�in�India.

Page 13 of 16

Real Estate and SEZs

Analyst: Nitin Dehadraya ©�2008�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.

“Most of the real state companiesare now looking at addressing theaffordable housing market fromthe earlier focus on luxurysegment a couple of years ago.We believe this trend willindirectly propel the demand in aslowing sector.”K. Pratap, Managing Director-Golden GateProperties(Source: The Hindu, 15 November, 2008)

• Alternate network for defence to be completed by 2011

The�Department�of�Telecommunication�(DoT)�has�informed�the�defenceministry�that�an�additional�fibre�optic�network�is�being�laid�for�defence�forces,which�would�be�completed�by�2011�at�an�estimated�cost�of�USD�2�billion.�Thedefence�forces�currently�occupy�the�bulk�of�the�3G�spectrum�in�9�out�of�22circles.�The�defence�forces�would�vacate�the�existing�network�only�if�they�areprovided�with�an�alternate�network.

• Telecom equipment industry to cross USD 10 billion by fiscal end

According�to�Telecom�Equipment�Manufacturers�Association�(TEMA),�the�Indiantelecom�equipment�manufacturing�industry�is�expected�to�cross�USD�10�billionby�end�of�this�fiscal.�The�telecom�manufacturing�industry�has�been�recordingmore�than�100�percent�growth�rates�in�past�2�years�with�strong�growthrecorded�in�wireless�equipment�manufacturing�where�production�grew�fromUSD�2100�million�in�2006-07�to�USD�5700�million.�

• Tata Telecom to launch telepresence rooms in association with

Cisco

Tata�Communications�in�association�with�Cisco�will�provide�public�and�privateCisco�TelePresence�rooms�to�companies�globally.�Presently,�TataCommunications�has�launched�Cisco�Telepresence�rooms�for�public�use�in�theUS�and�UK�and�has�linked�them�with�public�rooms�in�Mumbai,�Bangalore�andChennai�in�India.�This�service�could�be�used�by�companies�and�individuals�forone-off�meetings.�

• MTNL launches 3G services

State�owned�MTNL�(Mahanagar�Telephone�Nigam�Limited)�is�the�first�Indiantelecom�operator�to�launch�3G�services.�The�service�is�initially�expected�to�belaunched�in�Delhi�and�then�it�would�be�extended�to�Mumbai.�Initially,�theservice�is�likely�to�be�offered�free-of-cost�to�MTNL’s�existing�customers.Besides�3G�services,�the�company�is�expected�to�offer�other�services�like�high-speed�internet,�audio�and�video,�and�streaming�as�well�as�live�televisionchannels�on�mobile�phones.�The�company�has�already�built�a�capacity�toservice�7,�50,000�customers�in�Delhi.�

Page 14 of 16

Telecom

Analyst: Mehul Desai©�2008�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:�MVAS�in�India,�IAMAI�&�eTechnology

• Merrill Lynch acquires stake into Rajlaxmi’s new warehousing

project

Merrill�Lynch,�the�US-based�investment�bank,�has�picked�up�a�minority�equitystake�in�Hyderabad-based�logistics�provider�Shree�Rajlaxmi�group’s�upcomingwarehousing�development�project�for�an�undisclosed�amount.�The�project�islikely�to�be�a�high-quality�warehousing�development�that�offers�solutions�tocustomers�to�enhance�efficiency�in�their�distribution�channels.�Rajlaxmi�hasstrong�domain�knowledge�in�warehousing�and�execution�capabilities,�which�isexpected�to�enable�the�project�to�offer�space�well�suited�to�customerrequirements.��

• L&T has bagged Mumbai monorail project

A�consortium�of�Larsen�&�Toubro�(L&T)�and�Scomi�Engineering�of�Malaysia�hasbagged�an�USD�4.9�billion�order�from�the�Mumbai�Metropolitan�RegionDevelopment�Authority�(MMRDA)�to�design�and�build�the�first�monorail�systemin�India.�L&T,�being�the�lead�consortium�player�with�a�55�percent�share,�is�tohave�a�revenue�share�of�USD�2.8�billion.�The�above�developments�suggest�thatthe�project,�though�prestigious,�may�carry�a�few�challenges�to�the�L&T-ledconsortium,�in�terms�of�deadlines�as�well�as�standards.�As�part�of�its�newinitiatives,�L&T�had�come�up�with�a�dedicated�Railway�Business�Unit�to�tapemerging�opportunities�in�the�rail�sector.

• DHL Express maintains India investment with USD 25 million

facility

DHL�Express�is�continuing�to�invest�in�India�with�the�opening�of�a�USD�25million�Bangalore�air�terminal�and�plans�further�facilities.�The�express�operatorand�its�domestic�air�unit�Blue�Dart�Aviation�have�inaugurated�an�integrated�airterminal�at�Bangalore�International�Airport�to�strengthen�their�network�insouthern�India.�The�220,000�sq�ft�(20,440�sq�m)�is�expected�to�provide�fasterclearance�and�seamless�handling�of�inbound�and�outbound�international�anddomestic�shipments,�with�throughput�times�cut�by�60�minutes.�

The�company�has�already�won�design�and�build�contracts�from�the�Delhi�MetroRail�Corporation.

• GPPL to invest USD 52million in Pipavav Port

GPPL�(Gujarat�Pipavav�Port�Limited),�is�likely�to�invest�an�additional�USD�todredge�14.5�metre�draft�and�further�improve�accessibility�to�the�port.�GPPL�hasentered�into�a�contract�with�Zinkcon�Marine�(Singapore)�Pte.�Ltd.,�a�subsidiaryof�Royal�Boskalis�Westminster�to�undertake�capital�dredging�to�increase�theacceptance�draught�from�12.5m�to�14.5m.�It�is�scheduled�to�be�completed�bymid-2009.�Pipavav�offers�a�safe�port�for�even�larger�container�vessels�thatcannot�anchor�at�major�ports�in�India.�The�port�has�road�and�rail�connectivityand�the�rail�freight�costs�from�on-dock�facility�to�the�north�Indian�inlandcontainer�depots�(ICDs)�are�lower�and�the�current�maximum�capacity�of�the�raillink�is�22�trains�per�day�in�each�direction.

Page 15 of 16

Transport and Logistics

Analyst: Ashish Punjabi©�2008�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.

"Indian warehousing sector hasemerged as an attractive sector ofinvestment for private equity. Thesector offers significant growthopportunities, but currently therearen’t too many investors in thisspace”.Timothy Grady, Managing director and Head ofcommercial real estate, Merrill Lynch AsiaPacific.(Source: The Economic Times, 14 November, 2008)

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Reference material for preparing this document is

taken from following sources:

Asia Pulse

Business India

Business Standard

Business Today

Central Statistical Organisation (CSO)

Confederation of Indian Industries (CII)

Dow Jones International News

Energy Asia News

Factiva

Financial Express

Hindustan Times

India Infoline

Indian Brand Equity Foundation (IBEF)

Indian Business Insight

Infraline

India Today

Mergerstat

NASSCOM

Oil Asia Magazine

Petrobazar

Petromin News

Pharma Biz

Press Trust of India

RBI

Reuters News

The Asian Age

The Economic Times

The Financial Times

The Hindu Business Line

The Namibian

The Statesman

Times of India

Voice & Data Magazine

Xinhua News Agency

Antara News

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Research Inputs by KPMG’s India Research Center