Sectoral Snippets

India Industry Information

Issue 35 - September 2009

KPMG IN INDIA
 Page 2 of 18

Sectoral Snippets

Table of Contents

Russell Parera
1. Indian Economy 3
Chief Executive Officer
2. Auto and Auto Components 4
KPMG in India
3. Banking and Financial Services 5
Sectoral Snippets, Issue 35
4. Consumer Markets and Retail 6
RecentstatisticsreleasedbytheCentral
StatisticsOrganisationshowthatIndian
industrialoutputwhenmeasuredbytheindexof
5. Hospitality 7
industrialproductiontouchedanannualgrowth
paceof6.8percentinJuly’09,onthebackof 6. IT / ITeS 8
highergovernmentspending,andlower
borrowingcosts.BetweenOctober2008and 7. Media 9
April2009alone,theReserveBankofIndiacut
interestratesnolessthansixtimes. 8. Oil and Gas 10
Domesticconsumptionalsoremainedstrong
9. Pharma 11
withan8.8percentgrowthinconsumergoods
withinthemanufacturingsegment.Early
indicatorsforindustrialactivityinAugust‘09too 10. Power 12
areshowinganuptrend,includingsteel
production,cementdispatchandautomobile 11. Real Estate and SEZs 13
sales,butitremainstobeseenifindustrial
growththisyearcanpickupenoughpaceto 12. Telecom 14
offsettheimpactofthereducedgrowthin
agricultureonthecountry’sGDPgrowth. 13. Transport and Logistics 15
Ihopeyoufindthiseditionofthesnippets
informativeanduseful.
About Sectoral Snippets

Regards, 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
Russell news-briefs from across key sectors.

Contact mknowledge@in.kpmg.com if you are interested in receiving this newsletter on a

regular basis, or wish to unsubscribe.

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 3 of 18

Indian Economy
Inspiteoftheglobalfinancialcrisis,India’seconomyexpandedby6.1percentin
theApril-Junequarterofthecurrentfiscal.1 Theincreaseineconomicoutputwas
drivenbytrade,hotelandtransportationservices,aswellasminingand
manufacturing.

Whilethisgrowthhasbeenhigherthanthe5.8percentinthepreviousquarter,
therehasbeenadeclinewhencomparedtothe7.8percenteconomicexpansion
recordedduringthecorrespondingperiodofthelastfiscal.1

PoormonsoonsarealsolikelytoposemacroeconomicriskstoGDPgrowthand
inflation.Abelownormalrainfallhasalsocausedconcernsforagricultural
productionasonly40percentofIndia’sfarmlandisirrigated.2

Whileitisprematuretoevaluatehowmuchgrowthwillbeaffected,thedegree
ofdamageislikelytodependonIndianfarmers’abilitytoshifttoshorter-duration
cropsandpost-monsoonshowersthatwilldeterminesoilmoisture.

Nonetheless,India’seconomyhasstillmanagedtoemergeinabettershapethan
mostofitsregionalpeers.

Alongside,India’sFiveYearForeignTradePolicy(2009-14)wasannouncedon
August27,2009.Theshorttermobjectiveofthepolicyistoseizeandreverse
decliningtrendofexportsbyprovidingadditionalsupporttothosesectorswhich
havebeenhitbadlybyrecessioninthedevelopedworld.

Thepolicyhassetanannualexportgrowthtargetof15percent(USD200billion)
byMarch2011.IntheremainingthreeyearsofthisForeignTradePolicyi.e.upto

India’s GDP - Change from Previous Year 2014,thecountryisexpectedtocomebackonthehighexportgrowthpathof

9 around25percentperannum.By2014,thepolicyexpectstodoubleIndia’s
8 7.8 7.7
7
exportsofgoodsandservices.ThelongtermpolicyobjectiveoftheGovernment
6.1
5.8 5.8
% Change Y-o-Y

6
istodoubleIndia’sshareinglobaltradebytheyear2020.3
5
4
3 Throughthispolicy,theGovernmentintandemwithindustrystakeholdershopes
2
1
tomakeIndianexportsgloballycompetitiveandachievethepolicyobjectives.
0
1Q FY'09 2Q 3Q 4Q 1Q FY'10

Source:CentralStatisticalOrganization,August2009

1CentralStatisticalOrganization,August2009
2 www.usaid.gov
3ForeignTradePolicyDocument,GovernmentofIndia,August27,2009

Analyst: Asmita Deshmukh

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 4 of 18

Auto and Auto Components

• Ashok Leyland signs supply agreement with WABCO
IndiancommercialvehiclesmanufacturerAshokLeylandhasreportedlyentered
intoanagreementwithBelgium-basedWABCOforthedevelopmentof
transmissionautomationtechnologyandthelongtermsupplyofautomated
manualtransmissionsystemsfrom2010through2015.WABCOisexpectedto
supplytoAshokLeylanditsnewOptidrivemodularAMTsystemwhich,as
statedinaWABCOpressrelease,isabreakthroughintransmissionautomation
technologyandoneofthemostcreativelyengineeredproductsinWABCO’s
portfolio.ItisreportedthatAshokLeylandwillbethefirstmanufacturerinIndia
toadopttheOptidrivesysteminvolumeproduction.

• Nissan to shift Micra production base to India

JapaneseautomobilemajorNissanisplanningtotransferthemanufacturingof
itssmallcar,Micra,toIndiafromtheUK,postwhichthecompanyisexpected
tostartmanufacturingfourmoremodelsinIndia.Costadvantagesandahigh
qualityvendorbaseiskeyreasonfortheshift.Thetotalinvestmentisexpected
tobearoundUSD411.5million.TheMicrawillreportedlybemanufacturedat
Nissan’supcomingfacilityinOradagamnearChennai.Productionatthe
company’sChennaiplantislikelytocommenceinMay2010.

• Harley-Davidson to enter Indian markets

IthasbeenreportedthatAmericanmotorcyclemanufacturerHarley-Davidsonis
readytoenterIndianmarkets,withplanstoestablishalocaldealernetwork.
“Given the rapid development of Salesareexpectedtostartnextyear.Thecompanyhasreportedlyestablished
India's economy and physical anIndiansubsidiaryinGurgaon,Haryana.

HarleyDavidsonisreportedtohaveinitiallybeengrantedpermissionto
infrastructure, this is exactly the commenceoperationsinIndiain2007buttheseplanswereallegedlyputon
holdduetoanimportdutyofover100percent.
right time to bring the world's
greatest motorcycles to one of the
• General Motors to manufacture small cars in India
world's largest motorcycling GeneralMotorsisreportedlyplanningtomanufactureitssmallcar,M300,in
India,fromitsproductionfacilityinTalegaonwhichiscurrentlybeingsetup.The
nations” productionfromIndiaislikelytocatertotheAsianexportmarkets.Itisbelieved
Matthew Levatich, President and COO, Harley-Davidson thatGeneralMotorsintendstodevelopfuturemodelsatitsR&Dfacilityin
Motor Company Bangalore.
(Source: The Times of India, August 27, 2009 , ‘Harley-
Davidson ready for India launch; sales to start 2010’)
• Ford India begins export of cars from Chennai
FordIndiaPrivateLimitedplanstoexportcarsinbulkfromChennai.The
companyisexpectedtoinitiallylookintoexportingsmallcarstocountriesin
AfricaandtheAsia-Pacificregion.Itrecentlyshipped158carstoDurban,South
Africa.Ithasbeenreportedthatthecompanyplanstoexportmoremodelsof
itscars,inparticularitsproposedsmallcars.

Analyst: Ranjeet Javeri and Kudrat Puri

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 5 of 18

Banking and Financial Services

• L&T Financial service to focus on new business segment
L&TFinancialService(LTF),thecaptivefinancingarmofL&Tisplanningtoforay
intoanewbusinesssegment.Thecompanyisplanningtosetupacommercial
bankandenterintosegmentssuchasgeneralinsuranceandasset
management.Thefocusonthenewbusinesssegmentispartofcompany’s
strategytohavepresenceacrosstheentiregamutoffinancialservicesinIndia.
Thecompanyisplanningtostartthegeneralinsurancebusiness,independently
bysettingupaseparateentity,suspendingtheearlierclaimtoforma
partnershipwiththeTravellersGroupofUSA.Thecompanyisraisingfunds
throughtheissueofNon-ConvertibleDebentures(NCDs),amountingtoUSD
102million,tosupportitsexpansionplans.

• Edelweiss in talks with Tokio Marine for Joint Venture (JV)

EdelweissCapitalhasplanstoenterthelifeinsurancebusinessthroughaJV
withJapaneseinsurancegroupTokioMarineHoldings.TheJapaneseinsurer
alreadyhaspresenceinIndiathroughanon-lifeJVwithfertilizerco-operative
IFFCO.Accordingtoindustrysources,Edelweisshasalsoreceivedproposals
fromoverseascompaniessuchasGermaninsurerErgo,NipponLifeanda
Malaysianlifeinsurer.TokioMarineHoldingsistheholdingcompanyforthe
group’snon-life,lifeandfinancialservicesbusinesseswhichincludesasset
management,investmentbankingandrealestatemanagement.

• MetLife enters health insurance segment

MetLifeIndiaInsuranceCompanyLtd(MetLife)hasenteredintotheIndian
healthinsurancesegment,oneofthefastestgrowinginsurancesectors,with
thelaunchof'MetHealthCare’.Thenewsegmentislikelytooffercustomersa
dailycashbenefitincaseofhospitalizationandalumpsumbenefitincaseof
criticalillnessoraccidentalandpermanentdisability.Further,thecustomersare
notrequiredtoundergoanymedicalteststoavailtheplan.
Thelaunchof'MetHealthCare’islikelytocomplementthecompany’sexisting
productsandservices.Ithasbeenlaunchedwithcomprehensivetrainingtoall
Credit and Deposit growth in
financialadvisorsofthecompanyacrossthecountrytoprovideneeds-based
Q1 2009-2010 (y-o-y)
solutionstoitscustomers.
50
38 36 38
40
27 28
30
15
22 20 22
24
• Reserve Bank of India (RBI) sets up financial stability unit
20
percent

8 11
10 5 7 RBIhasconstitutedaFinancialStabilityUnit(FSU)toreviewthefinancial
0
situationowingtothecurrenteconomiccrisis.Theunitisexpectedtoprepare
ia
Bs

nk

nk
SB

- 10
E

n
Ind

PN
SC

Ba

Ba

Ba

-12 -10 financialstabilityreportsanddevelopadatabaseofkeyvariableswhichare

of

FC

is

ra

- 20
Ax

ind
nk

HD
Ba

ah
nk

likelytoimpactfinancialstabilityincoordinationwiththesupervisorywingsof
M
Ba

tak
CI

Ko
ICI

theReserveBank.Theunitisalsolikelytodevelopatimeseriesofacoresetof
financialindicatorsandconductsystemicstressteststoassessresilienceinthe
Credit Growth Deposit Growth
timeofeconomicdownturnanddevelopmodelsforassessingfinancialstability
Source: CRISIL Research, August 24, 2009 induecourse.

• Birla Sun Life has undergone structural revamp

AdityaBirlaGrouplifeinsurancebusiness,BirlaSunLifeInsurance,ajoint
venturewithCanada’sSunLife,hasreorganizeditsoperations.Thecompany
hasstructureditsbusinessintoeightzonalcenters;twoeachinthenorth,the
southandthewest,headedbyzonaloperationsmanager.Theoperationswere
earlierhandleddirectlybythebranches.Thenewstructureisexpectedto
reducecostandimprovetheefficiencyofthecompany.

Analyst: Kunal Jain and Ruchika Anand

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 6 of 18

Consumer Markets and Retail

• Middle Eastern hypermarket chain sets eyes on India
EmkeGroup,whichoperatesthebiggesthypermarketchainintheMiddleEast
undertheLuLuandAlFalahbrands,isenteringthelucrativeIndianmarketby
developingthebiggestshoppingmallinKerala,India.Themallisexpectedto
haveanareaofabouttwomillionsquarefeetandislikelytoopeninJuly,2011.
Followingitscompletion,thegrouphasplanstodevelopmoremallsacross
India.TheGroupcontrolsroughlyathirdoftheUAE'sorganisedretailmarket
andisplanningtoinvestUSD1.2billiontoexpanditsnetworkof75
supermarketsandhypermarketsto100withinthenextthreeyears.

• India’s FMCG major Godrej Consumer Products plans overseas

acquisitions
GodrejConsumerProducts(GCPL)isactivelyscoutingforacquisitionsinChina,
LatinAmericaandtheMiddleEast.Thecompanyaimstoscaleupthe
contributionofitsinternationalbusinessfromthepresent23percentto50
percentofGCPL’sannualrevenue.Godrejiseyeingcompaniesthathavea
significantpresenceinthehaircolorandsoapssegmentintheirlocalmarkets.
Atpresent,GCPLhasapresenceintheUK,SouthAfricaandMiddleEast.With
internationalvaluationsatanall-timelowandseveralattractivecompaniesnow
available,thecompanyisopentodealsvalueduptoapproximatelyUSD200
million.

• Whirlpool to invest USD 61.7 million in India

Whirlpool,Indiahasdecidedtocompletelyalteritsbusinessstrategyforthe
“India’s organized retail market is fiscal.TheIndianofthehomeappliancesmajor,theWhirlpoolCorpofUS,plans
toincreaseitsinvestmentonproductdevelopment,marketing,salesand
growing at the rate of 40 percent serviceinfrastructure.Towardsthis,WhirlpoolplanstoinvestaroundUSD61.7
millioninIndiaoverthenextthreeyears.Forthepastoneyear,thecompany’s
and is anticipated to grow at a focuswasoncost-controlandmaximizingmargins.However,thisyearthe
faster pace over the next three companyhasaggressivegrowthplansandhasreviseditsrevenuegrowth
projectionsfrom15percenttomorethan20percentforthisfiscal.The
years, especially in view of the companyplanstorolloutanewlineofrefrigerators,microwaveovensand
washingmachinesandalsoforayintoside-by-sideandthree-doorrefrigerator
fact that global players and Indian segments.

corporate houses are entering the • Dubai-based Landmark expands its Indian footprint
TheLandmarkGroupislookingtoinvestaboutUSD41.1milliontoexpandits
fray in a big way. At the current footprintinIndia.Thegroupcurrentlyoperates60-oddstoresinIndiaandis
growth rate it is expected to touch lookingtoopenanother20-25storesoverthenext12months.Thefocusis
likelytobeonthegroup’sdepartmentalstore,homedecorandvalueapparel
USD 90 billion by 2010” brands.Thegroupaimstoadd8Lifestylestores,2HomeCentres,11Max
(Source: Indian Retail Research 2009 Edition, storesand5Splashstorestoitspresentcountof15Lifestylestores,9Home
Centres,19Maxstoresand3Splashstores.Theretailerislookingtoincrease
Northbridge Capital Research)
itspresenceintierIandtierIIcitiesasitistargetingthemiddleandupper
middleclasssegmentsoftheIndianpopulation.Landmarkhastargeteda
growthrateofabout25percentinIndia.

Analyst: Sonia Topiwala

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 7 of 18

Hospitality
• Park Hotels to add 4 more hotels in the country
ParkHotels,thehotelsubsidiaryofApeejaySurrendraGroup,isexpectedto
open4morehotelsinHyderabad,PuneandJaipurbesidesopeningitssecond
hotelinKolkatainthenext3-4years.Thecompany’sHyderabadhotelis
scheduledtoopenthisyearfollowedbyhotelsinPune,JaipurandKolkata.
Theseexpansionplansareexpectedtoraisetheinventoryofroomsofthis
luxuryboutiquehotelchainfrom834roomsto1,700rooms.Thecompanyis
likelytoinvestUSD205.3millioninthehoteldevelopmentsatHyderabad(USD
65.7million),Pune(USD55.4million),JaipurandKolkata(USD102.7million)
property.

• Premier Inn expanding their hotel network in India

PremierInnIndiaPvt.Ltd,ajointventurecompanybetweenUK'sPremierInn
HotelgroupandEmaar-MGFPrivateLimitedisplanningtosetup5properties
by2013.ItislikelytoinvestUSD191.4milliontodevelop5propertieswithan
inventoryof700roomsby2013.Giventheincreasingdemandformid-market
hotelsinIndiathecompanyisplanningtoexpandinthiscategory.Ithas
identifiedlocationsinBengaluruandNewDelhiforitsupcomingproperties.The
JVhaslong-termplanstosetup80hotelsacrossIndiawithaninventoryof
12,000rooms,inthenext12years.

• EIH plans for nine more hotels in India and abroad

EastIndiaHotelsLtd(EIH),theflagshipoftheOberoiGroup,isonexpansion
spreedespiteademandslowdown.Thecompany’s9projects(including4
“Although there is a demand for overseas)areunderdevelopment.Thecompanyislookingatthemanagement
modelofbusinessratherthanowningthehotel.Amongstitsnewprojects
1.6 million rooms in India, there Trident-BKCistheonlyownedhotel,theremaininghotelprojectsareunder
managementcontracts.TheBandra-Kurlapropertywith440roomsisexpected
are only 1,30,000 operational toopenshortly.Its252-roomOberoihotelatAbuDhabiisscheduledtoopenin
rooms, of which only 25-30 per 2011andotherprojectsareintheplanningstage.Thecompanywasalsolooking
atsettingupanotherhotelinKolkata.ItisidentifyingthelocationsinKolkata,
cent are in the mid-market buthasnotmademuchdevelopment.Basedonthelocationandmarketthe
companyislikelytodecideonthehotelbrand-TridentorOberoibrand.
segment. The high demand in the
• Duet India Hotels to ink USD 45 million
mid-priced segment is due to the DuetIndiaHotelsplanstoinvestUSD45millionintheIndianhotelindustry.This
IndianarmofUK-basedinvestmentgroupDuethasacquiredtheassetsof
lack of reasonably acceptable anotherUKfirm,DawnayDayHotels,forUSD33millionlastyearandaland
hotels and this demand will parcelinHyderabadforUSD12millionforaproposedhotelof220-rooms.The
company’shotelsareunderconstructioninJaipur,Pune,AhmedabadandIndore
continue to rise as awareness fordevelopingtotal650roomsinthesecities.Allthesepropertieswouldbe
categorizedunderthemid-markethotelsegment.
levels of this model increase”
Aradhana Lal, VP, Sales and Marketing, Lemon Tree
Hotels
(Source: Deccan Chronicle, August 25, 2009, New
players in mid-market hotel segment)

Analyst: Pallavi Phatak

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 8 of 18

IT / ITeS
• HCL acquires a data centre in Parsippany, NJ
HCLTechnologies(HCL)hasacquiredadatacentreinParsippany,NewJersey
andplanstoinvestaboutUSD15millioninthisfacility.HCLbelievesthatthis
acquisitionwouldenableittoincreaseitsglobalfootprintandmeetgrowing
customerdemandforend-to-endservices,includingnear-shoreservicesand
cloudcomputing.HCLtookoverthisdatacentrefromaFortune500company
inOctober2008andthenupgradedthetechnologyandservicelandscape.Itis
furtherupgradingthefacilitytoanext-generationdatacentrebydeployingbest
available,eco-friendlytechnologiesfromleadingvendorsandacquiring
certifications.Thecompanyplanstohiremorethan100localUSworkersfor
thisdatacentre.

• Mphasis acquires AIG's captive unit

MphasiS,aHewlettPackard(HP)-controlledITandBPOcompany,hasacquired
AIGSystemsSolutions(AIGSS),theIndiaITcaptiveunitofAmerican
InternationalGroupforanundisclosedsum.Mphasishadalongterm
relationshipwithAIGasacustomersince2006.Thecompanybelievesthatthe
captivearmhastremendouscapabilitiesintheinsuranceverticalandwould
strengthenitsexistingcapabilities.ThisacquisitionisinlinewiththetrendofIT
captivesbeingtakenoverbytheserviceprovider,whichhashadanongoing
relationshipwiththeparentcompany.

• Vertex to re-establish India operations

Vertex,oneofthelargestUK-basedBPOfirmsisre-establishingitsIndia
operations.Thecompany,whichhadaworkforceofaround3,000in2003,had
scaleditdowntothecurrent400peopleduetotheexitoftwoofitsmajor
“Emerging markets including clients,oneofthembeingamajorUK-basedtelecomfirm.However,the
companyisnowagainlookingatstrengtheningitspresenceinthecountry.
India, Australia and Japan are
• HCL partners with Optimation in New Zealand
growth engines for us. We are HCLTechnologieshasenteredintoanagreementwithNewZealand-based
OptimationtoofferinnovativeandflexiblesolutionstoNewZealand
largely focusing on government, Governmentandcustomers.ThenewpartnershipwouldcombineHCL'sglobal
scaleanddemonstratedcapabilityindeliveringhighqualityITserviceswith
telecom and defence utilities and Optimation'slocalNewZealandexpertise.TheHCL-Optimationpartnership
are expecting a growth of at least wouldoffercustomersasolutionmixfromarangeofpartnersincludingSAP,
Oracle,MicrosoftandEMC.Serviceswouldincludebusinesstransformation,
50 percent in Indian market this remoteinfrastructuremanagement,businessprocessoutsourcing,application
development&maintenance,testing,documentmanagementandbusiness
financial year” processmanagement,service-orientedarchitectureandmiddlewareupgrades.
Amit Chatterjee, Managing director, Computer
• Indian Education Sector’s IT Spend to reach USD 704 million by
Associates (India) Technologies
2012
(Source: The Financial Express, August 17, 2009, ‘CA AccordingtoSpringboardResearch,theIndianeducationsectorisexpectedto
eyes 50 percent growth in India operations’) increaseitsITspendingfromUSD356millionin2008toUSD704millionby
2012,ataCAGRof19percent.Thesectorwouldprimarilyfocusonareassuch
asnetworking,basicinfrastructure,andITsecuritysolutionsimplementation.
ThestudyalsostatesthatthewirelessLAN(WLAN),storageareanetwork
(SAN),andERParelikelytobethethreemostpopularITsolutionsadoptedby
Indianeducationinstitutions.

Analyst: Parnika Patil

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 9 of 18

Media
• Dainik Bhaskar plans for an Initial Public Offering
DBCorp,publisherofDainikBhaskar,hasfiledaDraftRedHerringProspectus
withtheSecuritiesandExchangeBoardofIndiaforaninitialpublicoffering
(IPO).Thecompanyproposessaleofupto24.78millionequityshares.The
companyplanstoutilizetheproceedsoftheIPOtofunditsexpansionplans
andrepayingdebt.WarburgPincus-affiliatedcompanyCliffroseInvestmentsLtd.
whichholds7.14percentstakeinthecompanyhasanoptionofmakingapre-
IPOplacement.ThecompanyreportedaconsolidatednetprofitofUSD9.8
millioninFY2009down37percentfromthepreviousyear.

• Sun TV consolidates FM Radio stations

SunTVNetworksLtd,hasre-brandeditsFMradiostationotherthanthoseof
TamilNaduandPondicherryunderRedFMbrand.There-brandingisexpected
toinvolve38FMradiostationsincluding23stationsofSouthAsiaFM,14
stationsofKalRadioand1stationofUdayaFMPvtLtd.Theconsolidationhas
helpedRedFMgainapanIndianetwork.SunTVNetworkhas48.9percent
stakeinRedFM,whichoperatedradiostationsinMumbai,DelhiandKolkata.

• Prime Focus to invest in equipment rental division

PrimeFocusplanstoinvestUSD8.3milliontowardsexpansionofitsequipment
rentaldivision.Toheaditsequipmentrentaldivision,thecompanyhas
appointedcinematographerKamalakarRaoasChiefTechnologyOfficer.The
companyalsohasanewfacilityforitsequipmentrentaldivisioninFilmCity.The
strategiclocationwouldhelpthecompanytapalargerfilmfraternityandadfilm
makers.Thenewfacilitywouldalsohouseamaintenancedepartmentto
providetechnicalsupportwithrentalservices.
“The launch of three new
• India TV to launch another 24x7 news channel
networks reflects the company's RajatSharma-promoted,IndependentNewsServices(INS),isexpectedto
launchanew24x7newschannel:IndiaTVWiz.Thechannelisexpectedtobea
focus on India and furthers our bilingualchannelinHindiandEnglishandisexpectedtolaunchinthenextsix
months.Thechannelisexpectedtobesimultaneouslylaunchedonnewmedia
strategy of increasing our reach andmobileplatforms.ThechannelcouldalsobeavailableonINS'sdigitalmedia
and distribution in key markets business,IndiaTVInteractive.

around the world” • Discovery Networks gets approval to launch three channels
DiscoveryNetworks,hasreceivedapprovalfromInformationandBroadcast
Tom Keaveny, Executive Vice President and Managing
MinistrytolaunchthreenewEnglishchannelsinIndia.Thechannelsinclude:
Director, Discovery Networks Asia-Pacific DiscoveryScience,DiscoveryTurboandDiscoveryHD.Withthelaunchofthese
(Source: BBC News, August 13, 2009, ‘ Discovery channels,Discovery’schannelofferingwouldextendtosixchannels.Discovery
network secures approval to launch three new currentlybroadcastsDiscoveryChannel,DiscoveryTravelandLivingandAnimal
PlantinIndia.DiscoveryScienceandDiscoveryTurboareexpectedtobe
channels in India’)
launchedonbothanaloganddigitalplatforms,whileDiscoveryHDondigital
platformalone.Thelaunchofthesechannelsreflectsthecompany’sfocusin
increasingthereachanddistributionintheIndianmarket.

• Warburg Pincus plans to acquire stake in DB Corp’s radio business

SynergyMediaEntertainment(SME),theFMRadiobroadcastingarmofDB
Corp,hasreceivedapprovalfromForeignInvestmentPromotionBoardtoget
WarburgPincusasaninvestmentpartner.WarburgPincus,isexpectedto
acquire3.2percentstakeforUSD0.3million,valuingtheradiobusinessatUSD
9.8million.SMEoperates17radiostationsunderthebrandMyFM.

Analyst: Mehul Desai

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 10 of 18

Oil and Gas

• PM inaugurates Cairn’s Barmer oil fields
CairnIndia’sMangalaoilfieldswereofficiallyinauguratedbythePrimeMinister
(PM)ManmohanSinghontheAugust29,2009.ThePMhasdedicatedthese
fieldstothenation.

Withthistheoilandgassectorhaswitnessedyetanotherhistoriceventwhich
hasthepotentialtochangethedynamicsofthesector.TheMangalaoilfieldis
expectedtotouchitspeakproductionof125,000barrelsperday(bpd)inthe
firsthalfof2010whereastheaggregatepeakproduction,includingBhagyam
andAishwaryafieldsisexpectedtobe175,000bpd.Thesefieldswouldhelp
meet20percentofIndia’sdomesticproductionandtheadditionaloilisthus
expectedtobringintherequiredreliefforthecountry.However,issues
pertainingtoitscessliabilityandthecrudeoilpricingconcernsstillprevail.Cairn
andOilandNaturalGasCorporation(ONGC)havespentUSD2billiononthe
RajasthanblockuptonowandplantospendanotherUSD1.5to1.8billioninthe
nexttwoyears.

• The battle continues between the two brothers

Theon-goingrowbetweenMukeshAmbaniledRelianceIndustriesLtd.(RIL)
andAnilAmbaniledRelianceNaturalResourcesLtd.(RNRL)continueswiththe
latterreleasingadvertisementsinnewspapersandallegingthatRILis
deliberatelyunderproducinginordertocreateanartificialscarcityinthemarket
andhasalsoquestionedRIL’sgasfieldcapex.

RILontheotherhandhasstatedthatcustomersforaboutone-fourthofthe
“Despite the increase in costs, initialoutputwereyettodrawgasduetofailureattheirends.Regardingitsgas
fieldcapex,RILstatedthattheincreaseinitscapitalexpenditurewasdueto
Goldman Sachs' study of the variousfactorssuchasincreaseinreservesby2.5times,doublingofitspeak
production,hikeinthechargesofequipmentandservicesindustry,fieldlifeand
major E&P projects across the others.Inaddition,RILalsotermedtheadvertisementsasmaliciousandill-
world verifies that the finding and informed.

development costs of about USD 5 • Australia approves gas deal with India, China
Australiahasapprovedamammothenergyprojectthatisexpectedtosupply
per barrel of oil equivalent are naturalgastoIndiaandChina.TheGorgonliquefiednaturalgas(LPG)plantoff
WesternAustraliaholdsmorethan40trillioncubicfeetofgas.Theprojectisa
amongst the lowest in the world” JVbetweenChevron,ShellandExxonMobil,whichhassignedaUSD41billion
PMS Prasad, President and CEO (Petroleum), Reliance contractwithPetroChinaofChinaandUSD21billioncontractwithPetronetof
Industries Ltd. India.
(Source: The Economic Times, August 24, 2009, ‘Gas
row: RIL wants ADAG's malicious ad campaign nipped • Reliance Gas wins rights to retail gas in three cities
AunitofRIL,RelianceGashaswonrightstoretailCompressedNaturalGas
in bud’)
(CNG)toautomobilesandpipenaturalgastohouseholdsinthreecitiesin
AndhraPradeshandMadhyaPradesh.ReliancehadtocompetewiththeJVof
AdaniEnergyandIndianOilCorporationLtd.(IOC)inRajahmundryinAndhra
Pradeshandemergedasawinner.ThecompanyalsowontherightsforYannan
inAndhraPradeshandShahdolinMadhyaPradesh,whereitwasthesole
bidder.

Analyst: Sidharth Balakrishna and Suman Lala

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 11 of 18

Pharma
• Fortis to acquire 10 Wockhardt hospitals, in line with its plan to
enhance its footprint in India
WockhardtHospitalshasagreedtosell8operatinghospitalsand2hospital
projectsunderconstruction(acrossMumbai,Bengaluru,andKolkata)toFortis
Healthcare,foraconsiderationofUSD187million.Postthisacquisition,Fortis’
bedcapacityisexpectedtobeincreasedby1902bedsto~5180bedsspread
over38hospitals,therebystrengtheningitspositioninthehealthcarebusiness
segmentinSouthern,EasternandWesternregionsofIndia.
FortishasalsoannounceditsplanstoraisearoundUSD206millionthrougha
2:5rightsissueofshares.Thefundsarelikelytobeutilizedprimarilyfor
repaymentofdebt,settingupahospitalinGurgaon,redemptionofpreference
shares,andacquisitions.
Wockhardtisexpectedtousethefundstoretireitsdebtaswellastofundits
expansionplans.

• UNICEF awards contract to Panacea Biotec for supplying its

‘EasyFive’ pentavalent vaccine
PanaceaBiotec,oneofIndia’sleadingbiotechnologycompanies,hasreceiveda
three-yearcontractworthUSD222.4millionfromUNICEFforsupplyingits
‘EasyFive’pentavalentvaccine.EasyFiveisusedforimmunizingchildrenagainst
fivediseases–Diptheria,Tetanus,wholecellPertussis,Hepatitis-B,and
HemophilusInfluenzaTypeB.
Ithasreceivedpre-qualificationbyWHOforothertwocombinationvaccines,
EasyFourandEcovac.Thecompanyisalsoapre-qualifiedsupplierofOralPolio
“The Indian generic industry is VaccineandHepatitis-BvaccinestoUNagencies.
well positioned to benefit from the
• Indian pharmaceutical industry attracts USD 441 million FDI in 2007-09
structural and macro-economic AccordingtotheDepartmentofPharmaceuticals,theIndianpharmaceutical
industryreceivedaroundUSD441millionthroughtheForeignDirect
changes affecting the healthcare Investment(FDI)routeduringtheperiodApril2007toApril2009,from36
countries.Around82percentofthetotalinvestmentwascontributedbythetop
industry globally...” fivecountries,namelyMauritius,Singapore,US,UAEandCanada.Mauritius
A report by Noble, a UK investment bank aloneaccountedfor56percentoftheinvestmentsflownin.Therewerearound
208foreigncollaboratorsfordrugsandpharmaceuticalsduringtheperiod.
(Source: Livemint, August 2, 2009, ‘USD 70 bn drugs to
go off-patent, benefiting India: report’) • Ranbaxy ventures into the protein supplements market with the
launch of ‘Revitalite’
RanbaxyLaboratories,oneofIndia’sleadingpharmaceuticalcompanies,forayed
intotheproteinsupplementsmarketthroughthelaunchofitsprotein
supplement‘Revitalite’.TheproteinsupplementsmarketinIndiaisestimatedto
havebeengrowingat6percentannuallyandiscurrentlyvaluedataroundUSD
52million.ThisforaystrengthensRanbaxy’sfootholdinthenutritional
supplementmarket.

• Perrigo Company acquires 85 percent stake in Vedants Drugs

PerrigoCompany,aUS-basedover-the-counterpharmaceuticalproduct
manufacturer,hasreportedlypurchasedan85percentstakeinVedantsDrugs
andFineChemicals,aMumbai-basedcontractmanufacturingcompany,forUSD
12million.PerrigoisreportedlyplanningtomakeIndiaitsmanufacturingbase
andtransferapartofitsactivepharmaceuticalingredientsproductionfrom
IsraelandGermanytoIndia.
Analyst: Nandita Kudchadkar and Parnika Dayal
©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 12 of 18

Power
• Prime Minister to lay foundation stone for USD 1.2 billion power
equipment manufacturing unit proposed by NTPC
ThepublicsectorgiantsNationalThermalPowerCorporation(NTPC)andBharat
HeavyElectricalsLimited(BHEL)havejoinedhandstosetupamajorpower
projectsequipmentmanufacturingunit.NTPC–BHELPowerProjectsPvt.Ltd,
thejointventurecompany,incorporatedlastyearbyNTPCandBHEL,aimsto
setupagreenfieldunitthatisexpectedtomanufactureequipmentforpower
plants.TheyhaveproposedaUSD1.2billionpowerequipmentmanufacturing
unitatMannavaraminChittoordistrictofAndhraPradesh.Theprojectis
estimatedtoprovide6,000jobsdirectlyandabout30,000jobsin400ancillary
units.

• JSW Energy plans to hit the capital markets in the third week of
October to raise around USD 617.3 million by diluting 10 percent
equity stake
JSWEnergyplanstoraiseapproximatelyUSD617.3millioninthethirdweekof
Octoberbydiluting10percentequitystake.Thecompanyplanstodeploy
approximatelyUSD439.3millionfromtheproceedsoftheIPOfordeveloping
identifiedprojectsaggregatingto2,790MWoverthenextfouryears.Apartof
thefundsislikelytobeusedforsettingupa400KVtransmissionline,amining
ventureandtoservicedebt.

JSWEnergyisthethirdpowerfirmtogoforapublicissuethisyearafterstate-
runNHPCLimitedandAdaniPower.

• Reliance Power acquires Special Purpose Vehicle (SPV) to

implement Jharkhand's Tilaiya UMPP
TheAnilAmbani-ledReliancePoweracquiredJharkhandIntegratedPower,a
SPVfloatedtoimplementthe4,000-MWTilaiyaUltraMegaPowerPlantproject,
LNG: Existing and Proposed Capacity fromPowerFinanceCorp(PFC).ThisisthethirdUltraMegaPowerPlant
acquiredbythecompany.
Existing Commisioned
MTPA Expansion
Capacity by Thecoal-basedthermalpowerplantisbeingdevelopedinJharkhandatan
PetronetLNG- estimatedcostofUSD4.1billion.
10.0 - -
Dahej

PetronetLNG- • Petronet LNG agrees to arrange 2.2 million tonnes of liquefied

Nil 2.5 FY2011
Kochi natural gas for NTPC plant - NTPC seeks gas for its Kayamkulam
ShellHazira
power plant
4.0 - -
debottlenecking PetronetLNGhasagreedtoprovide2.2milliontonnesofliquefiednaturalgas
(LNG)peryeartoNTPCLtd.NTPCisincreasingcapacityby1950MWatits350
SpiceEnergy,
GSPC-Adani Nil 7.5 FY2012 megawatt(MW)KayamkulampowerplantinKerala.Theinitialcontractis
Consortium
expectedtobesignedfor1.2milliontonnesayearonafirmbasis,butinfuture
Petronetisalsoexpectedtoarrangeforthebalanceamount.
Dabhol Nil 5.0 FY2010
Earlierinthemonth,PetronetalsoinkedadealwithExxonMobilCorptobuy1.5
Source: IDFC-SSKI Research, Enam Research,
Company Websites, Inudustry Sources milliontonnesofLNGayearfor20yearsfromAustralia'sGorgonprojecttobe
re-gassifiedatitsupcomingKochiterminalinsouthIndia.

Analyst: Sidharth Balakrishna and Sonam Gosalia

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 13 of 18

Real Estate and SEZs

• Government to roll out USD 46.3 billion housing plan for slum
dwellers
TheGovernmentofIndiaisexpectedtorolloutamassiveplantobuild5million
dwellingunitsin400townsandcitiesundertheprogrammenamedRajivAwas
Yojana.Tomakethisprojectareality,theministryofhousingandurbanpoverty
hassoughtanallocationofUSD46.3billion.Theprojectisexpectedtofreeup
thousandsofacresofGovernmentlandacrossthecountryandwouldbeof
specialinteresttorealestatedeveloperstoundertakethisslumrehabilitation
project.

• Housing venture capital fund by LIC housing Finance

LICHousingFinanceLtd.isplanningtofloatarealestateventurecapitalfund,
whichwillbeprimarilyownedbyLifeInsuranceCorporationanditsassociates.
TheinitialcorpussizeisexpectedtobeUSD103millionandthefundisexpected
toinvestprimararilyinrealestatedevelopersandconstructioncompanies.

• IFCI to expand presence in real estate business

IFCIInfrastructureDevelopmentLtd.,therealestatearmofstateowned
InfrastructureFinanceCorporationofIndia(IFCI)islikelytoincreaseits
presenceintherealestatebusiness.Thecompany,whichlaunchedserviced
apartmentprojectinDelhi,isexpectedtocomeupwithsimilarprojectsin
Lucknow,Guwahati&Delhi.Atotalof2twomillionsq.ftareaisexpectedtobe
developedinthesethreecities.

• Government offers 1 percent interest subsidy on housing loans and

also offers incentives to developers
Inamovethatmayhelprealestateindustry,theGovernmentofIndia
announced1percentinterestsubsidyonhousingloansuptoUSD0.02million.
Market Size of Housing Requirement by 2011 ThismoveisexpectedtobenefittheconsumersespeciallyinTierII&IIIcities.
in Major Indian Cities
Besidesthat,theGovernmenthasalsoofferedtaxholidaystodevelopersfor
Housing Area projectsapprovedbetweenApril1,2007,andMarch31,2008,witha
Market Size
Cities Requirements Requirement
(USD billion)
(Units) (million sq.ft.) completiondeadlineonorbeforeMarch31,2012.Thismayturnouttobean
indirectbenefittotheconsumer,providedthedeveloperpassestheadvantage
Mumbai 404673 324 13
tothebuyer.
Pune 134264 107 4

• 3C Company launches USD 309 million housing project in National

NCR 547434 438 18
Capital Region (NCR)
Bengaluru 327694 262 11 Realestatefirm3CCompanyisexpectedtolaunchUSD309millionworthof
housingprojectinNCR.Theprojectwouldbefundedbyrealestateprivate
Chennai 157471 126 5
equityfirmRedFortCapital,whichalreadyinvestedUSD30milliononthis
Hyderabad 225555 180 7 project.Theprojectislikelytobespreadover40acreswhichwillhaveupto
3,000residentialunitsandisexpectedtocostUSD226millionwitharealization
Kolkata 265242 212 9
valueofapproximatelyUSD319million.
Total 2062333 1650 67

Source: Real Estate Newsletter, India Infoline, • Merlin Launches Luxury Housing Project
August 14, 2009 MerlinGroup,aKolkata-baseddeveloper,haslaunchedaluxuryhousingproject
inKolkata.TheprojectissaidtocompriseoftwoG+3towerswith24luxury
apartmentsofthreeandfourbedrooms.Thethreebedroomapartmentissaidto
haveanareaof1,800squarefeetandthefourbedroomissaidtohaveanarea
of2706squarefeet.TheprojectisdesignedbyarchitectRitamSarkarofSarkar
&Associates.

Analyst: Rajiv Parekh

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 14 of 18

Telecom
• 3G and WiMax final reserve price announced
Thegridlockoverthereservepriceforthe3GspectrumandWiMaxhasfinally
beenresolved.TheEmpoweredGroupofMinisters(EGoM)headedbyPranab
Mukherjeefixedthereservepriceforthe3GauctionatINR35billionandfor
theWiMaxspectrumatINR17.5billion.Thegovernmentplanstoimplementthe
auctionwithinthenextthreemonthsandraiseclosetoINR250billionthrough
thesame.

• MNP rollout likely by December

TheTelecomRegulatoryAuthorityofIndiaannouncedthatitintendstolaunch
theMNPservicebyDecember01,2009.Theearlierdateplannedwas
September20,2009.

• Bharti offers MTN USD 13.1 billion

BhartiisbelievedtohaveofferedMTNUSD13.1billionincashfortheUSD23
billiondeal.EarlierBhartihadofferedtopayUSD13billionincash.This
sweetenerisbelievedtohavebeenaddedtoluretheMTNinvestorswhoare
notcompletelyconvincedaboutthedealandmayevendecidetowaitfora
higherprice.

• Datacom and Tata Tele ink infrastructure sharing agreement

Datacomsolutions,telecomsubsidiaryofconsumergoodsgiantVideocon,is
believedtohaveenteredintoatowersharingagreementwithTataTeleservices.
Aspertheagreement,TataTeleservicesLimited(TTSL)islikelytoprovidethe
transmissionservicesandWirelessTataTeleInfoservicesLimited(WTTIL),the
jointventurebetweenTTSLandQuippo,willprovidethepassiveinfrastructurein
theformoftowersandshelters.Videoconhaslicensestooperatein14telecom
circlesandplanstoinvestINR10billionontowerswithinthisfiscal.Both
DatacomandTTSLarerollingouttheirGSMservicestogetherandthisagreement
islikelytobeinstrumentalinhelpingthemtosaveonoperatingcosts.

• Reliance Communications inks infrastructure sharing pact with S Tel

RelianceCommunicationsisbelievedtohavesignedaninfrastructuresharing
agreementwithSTel,anewserviceproviderwhohaslicensestorolloutits
servicesinsixcircles.ThecirclesincludeOrissa,Bihar,HimachalPradesh,North
East,AssamandJammuandKashmir.Theagreementisunderstoodtoinclude
telecomtowerssharing,transmissionforBTSsitesandfiberbackbonefor
intercityconnectivity.

Top Telecom Operators, Subscriber Base and Market Share (July, 2009)
Others
17% Bharti Airtel
Bharti Airtel 108 23%

BSNL 85
Idea Cellular
Reliance 83 9%

Vodafone Essar 79
BSNL
Idea Cellular 44 18%
Vodafone Essar
0 20 40 60 80 100 120 16%

Reliance
Subscriber Base (Millions)
17%

Source:TRAI,August20,2009

Analyst: Neha Dayal and Rishabh Chadha

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 15 of 18

Transport and Logistics

• Madhya Pradesh (MP) to Build Integrated Logistics Park
TheMPGovernment,asapartofitsinitiativetomakethestateawarehousing
andlogisticshub,isplanningtodevelopanintegratedlogisticshub.TheMP
WarehousingandLogisticsCorporation(MPWLC)hascurrentlyidentified
Pawarkheda,JabalpurandRatlamasthelocationsfordevelopingthelogistics
hub.TheGovernmentisplanningtodevelopthishubonapublicprivate
participation(PPP)basisandiscurrentlytalkingtosomeprivateplayerstotake
thisinitiativeforward.Thefirstphaseissaidtobedevelopedon120acresof
landandisexpectedtobeoperationalinnext18months.

• DHFL in JV with Redwood

DewanHousingFinanceCorporation(DHFL)VentureCapitalhasenteredintoa
50:50jointventure(JV)withRedwoodGroup,arealestatefirm,toraiseafund
inordertoinvestinIndianlogisticsandwarehousingindustry.Thefundissaidto
betargetingtoraiseaboutUSD150to200millionfrominternationalinvestors
andaboutUSD31.4to41.8millionfromthelocalmarket.

• LDA, ABG Ports to offer Logistics Services

LouisDreyfusArmateurs(LDA),theFrenchshippingandlogisticscompany,and
ABGPortsPvt.Ltd.haveformeda49:51JVtooffervariousportandlogistices
servicestovariouscustomersandportsinIndia.Thenewcompanybeingcalled
ABG-LDAisexpectedtoinvestaboutUSD80millionbyOctober2009for
buyingbargesandcranesforoperations.Thecompanyisprojectingearningsof
aboutUSD37to62millioninthecurrentyear.Thecompanyisplanningtooffer
customizedbargingsolutionsatHaldia.

• India to Hold Road Show at Zurich

TheIndianGovernmentisplanningtoholdaroadshowatZurich,financial
centerofSwitzerland,toinvitebidsforUSD20.68billionworthroadprojectsof
Projected Commodity-wise traffic at
14,395kilometerstobeawardedin2009-10.TheGovernmentisalsoplanningto
Indian Ports
vesttheownershipofroadswithNationalHighwaysAuthorityofIndia(NHAI),
500 440.6
whichinturncanleasethemouttoprivatedeveloperswhocouldraiseloan
400
againstthisproperty.Currently,theroadsareentrustedwiththeauthoritywhich
277.8
Million tonnes

300 licencesthemtoprivatedeveloperswhocannotprovidesuchroadsassecurity
189 178.7
200 130 131 toavailloansfrombanksandotherinstitutions.
91.9 106.4
100

0 • JSW to Develop Ports in India and Overseas

POL Coal Iron Ore Container
JSWGroupisplanningtodevelopportsinIndiaandoverseasasapartofits
2008 - 09E 2013 - 14P backwardintegrationprocess.Thecompanyisplanningtodevelopfourports
Source: Indian Ports Association, Crisil Report on
alongtheIndiancoastlineandoneeachinMozambiqueandChile.The
Ports 2009. Mozambiqueportisexpectedtobedevelopedina51:49JVwiththelocal
GovernmentandtheoneinChileistobedevelopedindependentlybyJSW.

• DCI to Buy Three Dredgers

DredgingCorporationofIndia(DCI),theGovernmentowneddredgingcompany,
isplanningtobuythreedredgersatacostofaboutUSD354million.The
companyisplanningtoexpanditsfleetbasedontheupcomingopportunityof
275dredgingprojectsunderthenationalmaritimedevelopmentprogramme
(NMDP).DCIissaidtobebuyingthedredgersfromHolland-basedIHCHolland
BV.Thecompanyislookingatinductingthethreedredgerstoitsfleetby2013.

Analyst: Nitin Dehadraya

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 16 of 18

Reference material for preparing this document was taken

from the following sources:

Note:
1USD=48.6INR
Foreword:
• EconomicTimes,'With6.8%rise,JulyIIPbacksuprevival',12Sep2009
• SteelGuru,'Macroeconomicindicators-Indianindustrialproductionrisesfor7straightmonth',13Sep2009
• Bloomberg,India’sIndustrialProductionRisesforSeventhMonth',11September,2009

Auto
• TheHinduBusinessLine,-AshokLeylandsignssupplyagreementwithWABCO–August12,2009
• TheTimesofIndia-NissantoshiftMicraproductionbasetoIndia,August28,2009
• TheTimesofIndia,Harley-DavidsontoenterIndianmarkets,August27,2009
• IndianBusinessInsight-GeneralMotorstomanufacturesmallcarinIndia,August18,2009
• BusinessStandard,FordIndiabeginsexportofcarsfromChennai,August10,2009

BFSI:
• BusinessStandard,L&TFinancialservicetofocusonnewbusinesssegment,August18,2009
• TheEconomicTimes,EdelweissintalkswithTokioMarineforJointVenture,August10,2009
• TheFinancialExpress,MetLifeentershealthinsurancesegment,August10,2009
• Livemint,ReserveBankofIndia(RBI)setsupfinancialstabilityunit,August13,2009
• TheEconomicTimes,BirlaSunLifehasundergonestructuralrevamp,August27,2009

CM:
• RediffBusiness,SwissfoodchainsinksitsteethintoIndia’sgrubhub,July24,2009
• Datamonitor,GCPLtoexpandinternationalbusinessthroughacquisitions,August06,2009
• EconomicTimes,WhirlpooltoalteritsIndiabizstrategy,August13,2009
• Fiber2fasion,LandmarkGroupplansexpansionofstorecount,August27,2009
• EconomicTimes,WiproConsumerCareeyesAfricaforgrowth,August26,2009

Hospitality:
• TheEconomicTimes,ParkmayinvestRs1kcroretoadd4hotels,August10,2009
• TheHinduBusinessLine,Premierinnplans80hotels,August10,2009
• TheTimesofIndia,EIHexpansionplanbucksslump,August24,2009
• TheEconomicTimes,UK'sDuetlinesup$45mnforIndiahospitalitypush,August10,2009

IT:
• TheEconomicTimes,‘HCLacquiresdatacentreinParsippany’August04,2009
• TheFinancialExpress,‘MphasisacquiresAIG'scaptiveunit’,July22,2009
• TheFinancialExpress,Vertextore-establishIndiaoperations,August11,2009
• DeccanChronicle,‘HCLTechpartnersNewZealandfirm,August26,2009
• Evalueserve-EmergingMarketsNOW,‘IndianEducationSectortoHikeitsITSpendtoUSD704millionby2012’,
August26,2009

Media:
• Indiantelevision.com,DainikBhaskarplanspublicfloat;DNAlossesatRs1.5bninFY'08,August17,2009
• BBCNews,DiscoverynetworksecuresapprovaltolaunchthreenewchannelsinIndia,August13,2009
• Indiantelevision.com,PrimeFocustoinvestUSD8.3millioninequipmentrentaldivision,August13,2009
• Indo-AsianNewsService,RajatSharmatolaunchanother24x7newschannel,August12,2009
• Indiantelevision.com,WarburgPincustotake3.2percentinDainikBhaskar’sradioarmforUSD0.3million,August
18,2009

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 Page 17 of 18

Oil and Gas:

• TheEconomicTimes,PMlaunchesCairnIndia'soilfieldsinBarmer,29thAugust,2009
• TheEconomicTimes,RILdenies'gashoarding'charges,31stAugust,2009andGasrow:RILhitsback,saysKG
costamongworld'slowest,25thAugust2009
• TheEconomicTimes,AustraliaapproveshugegasdealwithIndia,China,26thAugust,2009

Pharma:
• http://www.fortishealthcare.com,Fortistoacquire10hospitalsfromWockhardt,August24,2009
• http://www.livemint.com,FortistospendRs660cronhospitals,pref-cap,retiringdebt,August122009
• www.panacea-biotec.com,EasyFive*InjectsCheerforPanaceaBiotec;USD222.37millionAwardforPanacea
BiotecbyUNICEF,August19,2009
• http://pharmaceuticals.gov.in,ThirdRoundUpofDevelopmentsinthePharmaceuticalSector,July2009
• http://www.ranbaxy.com/,Ranbaxylaunchesproteinsupplement–‘Revitalite’inIndia,August12,2009
• BusinessStandard,Perrigoacquires85percentinVedantsDrugs,August23,2009

Power:
• TheBusinessLine,“NTPC-BHELunitcomestoAP“,August30,2009
• TheBusinessLine,“JSWEnergyIPOlikelyin3rdweekofOct”,August25,2009
• TheEconomicTimes,“ReliancePowerbuysJharkhand'sTilaiyafirm”,August7,2009
• ReutersIndia,“PetronettoarrangeLNGforNTPCplant–officials”,August20,2009
• TheBusinessLine,“MahanadicoalforKrishnapatnamthermalplant”,August15,2009

Real Estate:
• TheEconomicTimes,‘GovttorolloutRs225kcrplantohouseslumdwellers’,August12,2009
• TheEconomicTimes,‘LifeInsuranceCorptosetuphousingventurecapital’,August24,2009
• TheTimesofIndia,‘IFCItoexpandpresenceinrealestatebusiness’,August19,2009
• TheEconomicTimes,‘1%loansubsidytoboostaffordablehousinginTierII&IIIcities’,August09,2009
• EquityBulls,‘The3CCompanylaunchesIndia'sLargestGreenResidentialEstate’,August06,2009

Telecom:
• TheHinduBusinessLine,‘3GandWiMaxfinalreservepriceannounced’,August31,2009
• DNABusinessStandard,‘MNProlloutlikelybyDecember’,August12,2009
• TheFinancialExpress,‘BhartioffersMTNUSD13.1billion’,August31,2009
• TheEconomicTimes,‘DatacomandTataTeleinkinfrastructuresharingagreement’,August17,2009
• TheEconomicTimes,‘RelianceCommunicationsinksinfrastructuresharingpactwithSTel’,August29,2009

Transport and Logistics:

• EconomicTimes,‘MPplanscountry'slargestintegratedlogisticspark’,August24,2009
• Alassets,‘DHFLinjointventurewithrealestateinvestorRedwoodforIndianPEfund’,August10,2009
• EconomicTimes,‘LDA,ABGPortsteamuptoofferlogisticsservicestoIndianports’,August5,2009
• SiliconIndia,‘GovtmayvestownershipofroadswithNHAI’,August26,2009
• Reuters,‘RPT-Indiatoholdroadshowfor$20.68blnroadprojects’,August31,2009
• Steelguru,‘JSWgrouptodevelopportsinIndiaandabroad’,September1,2009
• FinancialExpress,‘DCItobuy3dredgersforINR1,722crore’,August,21,2009

©2009KPMG,anIndianpartnershipandamemberfirmoftheKPMGnetworkofindependentmemberfirms
affiliatedwithKPMGInternational,aSwisscooperative.Allrightsreserved.
 in.kpmg.com

KPMGinIndia Contactus:
Mumbai Hyderabad For further information about this
KPMG House, Kamala Mills Compound 8-2-618/2 newsletter, please contact:
448, Senapati Bapat Marg Reliance Humsafar, 4th Floor
Lower Parel Road No.11, Banjara Hills Ramesh Srinivas
Mumbai 400 013 Hyderabad - 500 034 Head - Consumer Markets
Tel: +91 22 3989 6000 Tel: +91 40 6630 5000 e-Mail: ramesh@kpmg.com
Fax: +91 22 3983 6000 Fax: +91 40 6630 5299 Tel: +91 80 3980 6800

Delhi Kolkata Abizer Diwanji

DLF Building No. 10, Infinity Benchmark, Plot No. G-1 Head - Financial Services
8th Floor, Tower B, 10th Floor, Block – EP & GP, Sector V e-Mail: adiwanji@kpmg.com
DLF Cyber City, Phase 2, Gurgaon 122 002 Salt Lake City, Kolkata 700 091 Tel: +91 22 3983 5301
Tel: +91 124 307 4000 Tel: +91 33 44034000
Fax: +91 124 254 9101 Fax: +91 33 44034199 Rajesh Jain
Head - Information, Communication &
Bangalore Pune Entertainment
Solitaire, 139/26, 3rd Floor, 703, Godrej Castlemaine e-Mail: rcjain@kpmg.com
Inner Ring Road, Koramangala, Bund Garden Tel: +91 22 3983 5300
Bangalore 560 071 Pune 411 001
Tel: +91 80 3980 6000 Tel: +91 20 305 85764/65 Jai Mavani
Fax: +91 80 3980 6999 Fax: +91 20 305 85775 Head - Infrastructure & Government
e-Mail: jmavani@kpmg.com
Chennai Kochi Tel: +91 22 3983 5724
No.10 Mahatma Gandhi Road 4/F, Palal Towers
Nungambakkam M. G. Road, Ravipuram, Yezdi Nagporewalla
Chennai 600 034 Kochi 682 016 Head - Industrial Markets
Tel: +91 44 3914 5000 Tel: +91 484 309 4120 e-Mail: ynagporewalla@kpmg.com
Fax: +91 44 3914 5999 Fax: +91 484 309 4121 Tel: +91 22 3983 5101

Vikram Utamsingh
Head - Private Equity
e-Mail: vutamsingh@kpmg.com
Tel: +91 22 3983 5302

ResearchInputsbyKPMG’sIndia
ResearchCenter

©2009KPMG,anIndianPartnershipandamemberfirm
Theinformationcontainedhereinisofageneralnatureandisnotintendedtoaddressthecircumstancesofanyparticularindividual oftheKPMGnetworkofindependentmemberfirms
orentity.Althoughweendeavourtoprovideaccurateandtimelyinformation,therecanbenoguaranteethatsuchinformationis affiliatedwithKPMGInternational,aSwisscooperative.
accurateasofthedateitisreceivedorthatitwillcontinuetobeaccurateinthefuture.Nooneshouldactonsuchinformation Allrightsreserved.
withoutappropriateprofessionaladviceafterathoroughexaminationoftheparticularsituation. KPMGandtheKPMGlogoareregisteredtrademarksof
KPMGInternational,aSwisscooperative.