SectorSnippets Issue 27:TP4 WhitePaper A4.QXD · Page 2 of 16 Sectoral Snippets About Sectoral...
Transcript of SectorSnippets Issue 27:TP4 WhitePaper A4.QXD · Page 2 of 16 Sectoral Snippets About Sectoral...
Sectoral SnippetsIndia Industry Information
Issue 27 - January 2009
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.
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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 27
Even�as�the�Indian�Government�announced�afresh�set�of�economic�and�fiscal�measures�in2009,�Satyam’s�founder�and�CEO�B�RamalingaRaju�formally�admitted�to�manipulating�hiscompany’s�accounts�for�years�to�the�tune�ofaround�INR�7000�crores,�earlier�this�month.While�investigations�into�the�extent�andmechanism�of�the�fraud�are�underway�by�thecapital�markets�regulator�(SEBI),�Serious�FraudOffice�(SFIO)�and�other�regulatory�authorities;the�Government�has�stepped�in,�appointing�anew�board�and�considering�other�ways�ofrestoring�confidence.�
As�the�Indian�economy�aims�for�all�inclusivegrowth�in�the�year�ahead�amidst�the�presentinvestment�climate�and�economic�conditions,efforts�are�on�amongst�all�the�constituents�tostrengthen�shareholder�and�investor�confidence
I�hope�you�find�this�edition�of�Sectoral�Snippetsinformative�and�useful.
Regards,
Russell
Russell Parera
Chief Executive Officer
KPMG in India
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
As�a�bleak�economic�scenario�persists�globally,�the�Reserve�Bank�of�India�(RBI)
has�sharply�cut�interest�rates�since�July�2008�to�re-instill�confidence�and�improve
spending�in�the�domestic�economy.
In�December�2008,�RBI�slashed�its�repo�rate�to�6.5�percent�from�7.75�percent�at
the�beginning�of�last�year,�when�it�had�to�raise�rates�to�provide�respite�from�a
rapidly�rising�inflation.�It�also�cut�the�reverse�repo�rate�to�five�percent�from�six
percent.
To�ease�the�pressure�on�liquidity�in�the�banking�system,�RBI�had�also�cut�the
cash�reserve�ratio�(CRR)�to�a�low�of�5.5�percent�in�November�2008�from�7.50
percent�in�the�beginning�of�last�year.
Inflation�too�has�cooled,�after�peaking�to�a�16-year�high�of�12.91�percent�in
August,�a�trend�that�may�allow�RBI�to�effect�more�cuts�in�key�rates�to�boost
economic�expansion.�Declining�food�and�fuel�prices�have�enabled�inflation�to
hover�in�single�digits�around�6.0�percent,�the�lowest�in�the�past�nine�months.
With�crude�oil�prices�dipping�from�an�all-time�high�of�USD�147�a�barrel�in�July
2008�to�under�USD�45�a�barrel;�the�Government�cut�petrol�price�by�INR�5�a�litre
and�diesel�by�INR�2�per�litre�earlier�in�December.�
The�Government�of�India�has�also�announced�a�fiscal�stimulus�package�offering:
• Increased�planned�expenditure�of�USD�4.1�billion
• A�cut�of�four�percent�in�excise�duties�across�the�board�and�interest�rate�cuts
on�loans�for�infrastructure�and�exports
The�fiscal�stimulus�package�is�expected�to�provide�support�to�exports,�housing,
Micro,�Small�and�Medium�Enterprises�(MSME)�sector,�textile,�infra�financing
sectors,�in�addition�to�shield�the�Indian�economy�from�impact�of�global
slowdown.
As�per�Government�estimates,�Indian�Inc.�can�look�forward�to�an�economic
growth�of�seven�percent�in�the�year�ending�31�March�2009,�albeit�down�from
nine�percent�or�more�in�the�previous�three�years,�still�the�second-fastest�among
the�major�economies�--�behind�only�China.
Indian EconomyPage 3 of 16
Analyst: Asmita Deshmukh©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Source:�Reuters
RBI’s Tough Call
• Jagdish Khattar plans to open 100 "multi-brand auto solution hub"
by 2010
Jagdish�Khattar�armed�with�funds�from�Premji�Invest�and�IFCI�Venture�Funds
plans�to�open�100�"multi-brand�auto�solution�hub"�in�three�years�under�the
name�of�Carnation�Auto�India�Limited�Premji�Invest�and�IFCI�have�invested�USD
16�million�and�USD�5.6�million�respectively�in�the�form�equity.�Carnation�is�a
third�party�multi-brand�car�service�provider�and�is�expected�to�sell�tyres,
batteries,�car�detailing,�insurance�and�other�four-wheeler�related�issues,
besides�servicing�cars.�Each�unit�of�Carnation�is�likely�to�have�20�to�40�work
bays,�with�each�bay�capable�of�handling�three�to�four�cars�a�day.�The�first�set�of
these�solutions�hub�are�expected�to�be�in�Kochi,�Chennai,�Bangalore,
Hyderabad,�Amritsar,�and�two�in�Noida.
• Swiss Finance Corp increases its stake in Amtek Auto to 8 percent
Mauritius-based�Swiss�Finance�Corporation�(SFC)�bought�an�additional�4
percent�stake�in�Amtek�Auto�through�open�market�purchases.�SFC�acquired�a
total�of�57.2�lakh�shares�for�about�USD�6.2�million�on�December�12�2008.�Post-
acquisition,�SFC's�stake�in�the�company�rose�to�8.2�percent.�Warburg�Pincus,
Citigroup,�Credit�Suisse�Singapore,�CLSA�Mauritius�and�Sansar�Capital
Mauritius�are�among�other�major�foreign�institutional�investors�holding�a
substantial�stake�in�the�company.
• Bajaj Auto increases its stake in KTM to 25 percent
Two�and�three-wheeler�manufacturer�Bajaj�Auto�Ltd�(BAL)�has�increased�its
stake�in�Austrian�sports�bike�maker�KTM�to�25�percent.�In�2007,�BAL�acquired
14.5�percent�stake�in�the�firm�for�about�USD�60.4�million�which�has�been�now
increased�to�25�percent.�BAL�has�announced�that�it�is�expected�to�continue�to
increase�its�stake�in�the�company�but�has�not�disclosed�any�further�details.
Under�the�agreement,�the�companies�planned�to�jointly�develop�high-efficiency
bikes,�sourcing�for�production�and�assembling�of�KTM�bikes�in�India.�The�jointly
developed�bikes�would�be�produced�at�BAL's�Chakan�facility�for�export�to
Europe�under�KTM�brand.
• Daimler to launch financial services subsidiary in India
German�auto�major�Daimler�has�proposed�to�launch�its�financial�services�arm�-
Daimler�Financial�Services�-�in�India.�The�aim�is�to�deal�with�the�liquidity
shortage�situation�which�is�decreasing�the�demand�for�its�luxury�passenger
cars�and�commercial�vehicles,�manufactured�by�the�Mercedes-Benz�unit.�The
company�feels�that�the�consumers�were�not�buying�their�vehicles�due�to
difficulty�in�getting�funds�from�the�financial�institutions.�Currently,�Mercedes-
Benz�has�a�tie-up�with�ICICI�for�offering�financial�services�to�customers�in�India.
Daimler�Financial�Services�offers�vehicle�financing,�leasing,�insurance�and�fleet
management.�
Page 4 of 16
Auto and Auto Components
Analyst: Rajiv Somani©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"It's not that there is no demand,but funding is a challenge intoday's market situation. That'swhy we are looking at bringingour financial services arm in thecountry.” Wilfried Aulbur, Managing Director and CEO,
Mercedes-Benz
(Source: DNA-Daily News & Analysis, 6 December2008 )
• Financial Technologies acquires stake in Bourse Africa
Financial�Technologies�India�Limited�(FTIL)�group�has�signed�a�deal�to�acquire60�percent�stake�in�Botswana-based�Bourse�Africa�Limited.�Bourse�Africa�hasbeen�licensed�by�government�of�Botswana,�to�set-up�spot�and�derivative�multi-asset�exchange�for�trading�in�commodities,�currencies,�bonds�and�diamonds.Bourse�Africa�is�likely�to�have�a�pan-Africa�presence�through�a�hub�and�spokemodel,�connecting�major�African�countries.�
FTIL�is�a�market�leader�in�exchange�and�distribution�technologies�and�haspromoted�Multi�Commodity�Exchange�(MCX),�India’s�leading�commodityexchange.�With�the�acquisition�of�Bourse�Africa,�FTIL�has�set�up�ten�exchangeventures�across�Asia,�Middle�East�and�Africa.
• Switzerland-based Amas Bank buys 40 percent stake in PATCO
Investments
Amas�Bank,�the�banking�entity�of�Hinduja�Group,�has�acquired�a�40�percentstake�in�Paterson�Investment�and�Consultancy�Services�(PATCO),�for�anundisclosed�amount.�The�acquisition�is�part�of�Amas�Bank's�strategy�to�expandits�presence�in�the�India.�Amas�also�has�plans�to�launch�asset�management�andprivate�equity�business�in�India.
Patco�is�a�Chennai-based�Non�Banking�Finance�Company�(NBFC)�offeringservices�like�stock�broking,�derivatives�trading,�portfolio�and�wealthmanagement,�corporate�advisory,�investment�banking�and�allied�financialservices.�Patco�has�20�retail�branches�across�India,�a�majority�of�which�are�inthe�South�India.
• 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.�Sundaram�BNP�Paribas�Securities�Services�is�likely�to�bededicated�to�provide�a�full�range�of�securities�services,�including�fundaccounting�and�transfer�agency�to�both�domestic�and�off-shore�investors�inIndia.�BNP�Paribas�has�an�existing�Joint�Venture�(JV)�to�provide�assetmanagement�and�housing�finance�services�with�the�Sundaram�Group.�
SBS�is�the�Business�Process�Outsourcing�(BPO)�arm�of�Sundaram�Finance,engaged�in�providing�transaction�processing�services�primarily�to�the�financialservices�industry.
• HDFC Bank to acquire 10 percent stake in MMTC-Indiabulls
commex
HDFC�Bank,�India’s�leading�private�sector�bank,�has�sought�approval�fromReserve�Bank�of�India�to�buy�10�percent�stake�in�a�commodity�exchangepromoted�by�MMTC-Indiabulls.�Indiabulls�and�MMTC�have�received�approvalfrom�Forward�Markets�Commission�(FMC),�the�commodity�market�regulator,�inJuly�2008.�The�exchange�is�expected�to�be�operational�from�March�2009.�Thenew�exchange�would�be�the�fourth�national�level�commodity�exchange�besidesMCX,�NCDEX�and�NMCE.�India�has�22�commodity�exchanges,�including�threenational�exchanges,�with�a�combined�turnover�of�USD�934.5�billion�in�2007-08.
Page 5 of 16
Banking and Insurance
Analyst: Kunal Jain©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Source:�Source:�FMC
Note:�1USD�=�43.5
Commodity Group-wise Value of Trade (USD
Billion
• Indian FMCG sales not affected by slowdown
The�fast�moving�consumer�goods�(FMCG)�sector�in�India�is�likely�to�grow�by�25percent�and�reach�USD�25�billion�in�2008�as�against�USD�20�billion�in�2007.Furthermore�FMCG�sales�have�grown�at�a�faster�rate�in�the�rural�markets�thanin�urban�centres�and�are�expected�to�touch�USD�5�billion�in�2008.�Theincreased�market�penetration�in�rural�regions�can�be�attributed�to�higherconsumption�of�products�such�as�consumer�durables�including�refrigerators,television�sets�and�electrical�appliances�
• Indian ice cream market attracts Snowberry USA
Snowberry�USA�Inc,�a�US-based�ice�cream�maker,�plans�to�make�its�entry�intothe�Indian�organised�icecream�market�with�a�planned�investment�of�USD�50million.�The�company�plans�to�set�up�1,000�parlours�and�kiosks�across�thecountry�by�2010�for�which�it�has�entered�into�a�franchise�agreement�with�Delhi-based�realty�finance�company�Soni�Buildcom.�Snowberry�is�planning�to�investUSD�5�million�to�set�up�a�21,000�sq�ft�manufacturing�facility�at�Manesar�whichwould�start�operations�in�2010.�The�company�is�targeting�a�sales�volume�ofUSD�25,000-30,000�from�each�outlet�within�six�months�of�starting�operationsand�is�aiming�to�capture�20�percent�of�the�USD�165�million�organised�ice�creammarket�in�India�by�2010
• Belvedere’s vodka to hit Indian market soon
Belvedere�Group,�a�France-based�vodka�producer,�plans�to�venture�into�Indiathrough�the�travel�retail�channel.�The�company�is�entering�into�a�distribution�tie-up�for�two�east�European�vodka�brands,�Danzka�and�Sobieski.�India’s�travelretail�market,�estimated�at�over�one�million�cases�currently,�has�been�growingat�over�25�percent�with�international�airlines�connecting�more�cities�andexisting�aviation�hubs�undergoing�modernization.�Belvedere�through�itssubsidiaries�controls�over�20�vodka�brands�with�substantial�market�share�in�theeastern�European�markets
• Italy's Loro Piana plans India foray
Loro�Piana�SpA�plans�to�enter�India�through�single�brand�retail�window.�Thecompany�has�opted�for�a�51�percent�stake�in�a�JV�called�LP�Retail�with�theKishor�Bajaj-promoted�Bada�Saab�Design,�which�is�also�a�franchisee�for�anotherItalian�brand,�Brioni,�in�India.�The�privately-owned�Loro�Piana�has�a�globalpresence�with�approximately�113�stores�world-wide
• Kohinoor Foods takes Indian foods to USA
India’s�Kohinoor�Foods�Ltd,�a�ready-to-eat�food�product�manufacturer,�has�tiedup�with�a�US-based�retail�chain�Target�Corporation�for�marketing�Indian�foodproducts�in�America.�With�this�partnership,�the�company�aims�to�serve�theincreasing�demand�for�Indian�food�in�the�US.�Target�Corp,�which�operatesapproximately�1,500�stores�in�47�states�of�US,�is�expected�to�source�and�sellover�16�different�Indian�delicacies�of�Kohinoor�Foods.��Initially,�Target�plans�totake�forward�four�selected�categories:�cook-in�sauces,�microwave�rice,microwave�meal�and�meal�kit.�Kohinoor�Foods,�which�is�also�known�for�itsbranded�basmati�rice,�has�a�plant�capable�of�producing�over�1,20,000�meals�perday.�
Page 6 of 16
Consumer Markets and Retail
Analyst: Sonia Topiwala ©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“India is one of the mostattractive markets for retailinvestment. Many national andglobal players have been investingin the retail segment and haveambitious plans for furtherexpansion. The vast middle classwith rising purchasing power areattracting global retail giants intothe almost untapped retailindustry.”(Source: India retail report-Images Retail, January2009)
• ITC looking for acquisition of hotels
ITC�Limited,�one�of�the�diversified�conglomerates�in�India�is�seeking�for�aninvestment�opportunity�through�take�over�or�acquisition.�There�has�been�acorrection�in�the�valuations�of�many�hotel�properties�which�were�priced�at�apremium�a�year�before.�The�current�down�turn�in�the�economy�has�createdopportunities�for�major�players�in�the�hotel�industry�to�take�over�valuableproperties�at�attractive�prices.�ITC�plans�to�acquire�properties�in�the�three�starhotels�to�seven�star�hotels�category.�Apart�from�this�acquisition�plan�thecompany�would�continue�with�its�capex�plans�declared�last�year.
• Unitech to develop 35 hotels with an investment of USD 625
million
Unitech,�one�of�the�realty�majors�in�India�plans�to�develop�about�35�hotels�withan�inventory�of�5,000�rooms�in�3-5�star�categories.�These�hotels�would�be�openin�the�national�capital�region�(NCR),�Kolkata,�Chennai,�Goa,�Mysore,�Bangalore,Hyderabad,�Chandigarh,�Siliguri�and�Assam.�The�company�has�a�land�bank�inthese�cities�and�would�build�hotels�on�the�same.�About�50�percent�of�thehotels�would�be�constructed�in�Kolkata�and�NCR.�It�is�likely�to�invest�USD�625million�in�the�next�6-7�years�to�develop�these�hotels.�The�company�also�plans�tosell�these�hotels�after�developing�them.����
• Ginger hotel bets on flexible model for expansion
Roots�Corporation,�a�wholly-owned�subsidiary�of�The�Indian�Hotels�CompanyLimited�is�adopting�a�flexible�model�for�its�budget�brand�‘Ginger’.�The�companywould�operate�hotels�on�management�contract�and�long�lease�basis�instead�ofowning�it.�It�has�leased�the�existing�‘Rail�Yatri�Niwas’�in�Delhi�and�MadhyaPradesh�from�Indian�Railways.�The�company�has�tied�up�with�restaurant�chainssuch�as�Sayaji�Hotels�and�The�Harbour�Market�to�provide�restaurant�facilities�atits�Baroda�and�Goa�properties.�The�company�also�has�a�national�tie�up�withCafe�Coffee�Day.
• Taj plans makeover for luxury hotels
Taj�Hotels�Resorts�&�Palaces�has�opened�its�new�premium�business�hotel�inBangalore�under�the�brand�name�Vivanta.�The�200�room�hotel�is�located�atWhitefield,�Bangalore's�IT�hub.�It’s�the�fifth�property�of�Taj�in�Karnataka.�Thecompany�plans�brand�makeover�of�its�other�Indian�hotels�such�as�Mumbai's�TajPresident,�Fisherman's�Cove�in�Chennai�and�the�nine�Taj�Residency�propertiesas�well.�Its�international�properties�would�continued�with�the�same�brand�name‘Taj’�as�the�brand�is�globally�recognized.�The�company�is�following�the�currenttrend�in�the�hospitality�where�players�are�branding�hotel�properties�with�aunique�name�instead�of�using�their�family�name�for�their�business.
Page 7 of 16
Analyst: Pallavi Phatak
Hospitality
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“The next 18 to 24 months aretesting times for the industry, buthoteliers with a proven trackrecord will take things in theirstride and come out of therecession with learning andexperience.”M P Purushothaman, President, FHRAI(Source: Express Hospitality, 8 December, 2008 )
• Wipro acquires Citi Technology Services Limited
India’s�leading�IT�service�provider�Wipro�Technologies�has�acquired�CitiTechnology�Services�Limited�(CTS),�the�India�based�captive�unit�of�Citigroupengaged�in�infrastructure�and�technology�outsourcing�business,�from�US�basedCitigroup�Inc,�for�about�USD�127�million.�The�acquisition�has�enabled�Wipro�tobag�Citigroup�as�a�key�client�and�provide�Technology�Infrastructure�Services(TIS)�and�domain�led�Application�Development�Management�(ADM)�services�toCiti’s�business�segments.�With�this�acquisition,�Wipro�expects�to�strengthen�itsinfrastructure�and�facilities�management�business.�Apart�from�strongcompetencies�in�TIS,�CTS�has�strong�expertise�in�ADM�for�cards,�capitalmarkets�and�corporate�banking.�The�move�is�also�expected�to�enable�Citi�to�cutdown�its�employee�strength�and�cost.
• Rolta acquires Chicago based Piocon Technologies
Rolta,�a�Mumbai-based�IT�firm�has�acquired�Chicago-based�Piocon�Technologies(Piocon).�Rolta�expects�that�the�acquisition�is�likely�to�give�it�access�tosolutions�to�address�critical�operational�needs�of�refineries.�Piocon�that�hasmajor�customers�in�the�oil�and�gas�sector�are�mostly�based�in�the�US�and�Roltaplans�to�expand�this�to�the�Middle-East�and�India.�Rolta�also�intends�to�cross-sell�these�services�to�its�existing�customers�for�engineering�design,�which�aremostly�in�oil�and�gas,�petrochemical�and�energy�sectors.�
• Core Projects buys Princeton unit
Core�Projects�and�Technologies�(Core),�a�India�based�education�managementsystems�provider�has�acquired�a�unit�of�The�Princeton�Review,�a�US-basededucation�company�for�about�USD�20�million.�The�Company�expects�theacquisition�to�add�approximately�USD�24�million�to�Core’s�global�revenues�overthe�period�of�next�four�quarters�after�the�buyout.�
• Satyam confesses to huge fraud in India
Satyam�founder�and�CEO,�B�Raju�resigned�on�January�07,�2009�afterconfessing�that�his��company�had�been�falsifying�its�accounts�for�years.�TheCEO�in�his�resignation�to�the�Board�of�Directors�disclosed�inconsistencies�inSatyam’s�financials�resulting�from�inflated�profits�over�the�last�several�years�forSatyam’s�standalone�accounts.�In�a�related�development,�the�ministry�ofcompany�affairs,�SEBI�and�other�regulatory�authorities�have�beguninvestigations�into�the�fraud.
• Infosys bags AstraZeneca deal
India’s�leading�IT�player�Infosys�Technologies�has�won�a�five-year�deal�fromUK’s�leading�pharmaceutical�company�AstraZeneca.�As�per�the�terms�of�thedeal,�Infosys�is�to�deliver�complete�application�maintenance�services�to�thefirm's�global�operations�in�areas�such�as�manufacturing,�supply�chain,�finance,human�resources�and�other�corporate�functions.�The�deal�signifiesAstraZeneca’s�transformation�initiative�to�accelerate�innovation�and�getproducts�faster�to�the�market,�and�is�expected�to�help�improve�its�operationalefficiency�significantly.�
Page 8 of 16
Analyst: Parnika Patil
IT / ITeS
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“This partnership enables Citi toleverage Wipro’s expertise ininformation technology serviceswhere we have significant plansfor driving higher efficiencies byleveraging the Global DeliveryModel.”Marty Lippert, Chief Operations and Technology Officer,Citigroup Inc(Source: Wipro Press Release, 23 December, 2008)
• CDI to invest in animation and gaming
Integrated�media�and�entertainment�company�Compact�Disc�India�(CDI)�is�likelyto�invest�USD�63�million�for�animation�feature�film�and�multi�platform�gaming.This�budget�is�also�likely�to�include�the�merchandising�of�a�project�with�formerBrazilian�football�player�Pele.�Further,�the�company�has�plans�to�invest�approx.USD�19�million�for�gaming�development�and�publishing�project.�In�2008-09,�thecompany�is�expected�to�acquire�Laser�Infomedia,�to�set-up�a�developing�andpublishing�gaming�software�studio�at�New�Delhi�in�collaboration�withSingapore-based�Golden�Games�Pte�Limited
• UTV, Moser Baer signs pact for home video distribution
UTV�Motion�Pictures�and�Moser�Baer�Entertainment�have�entered�into�anagreement�for�their�home�video�distribution�business.�This�strategic�alliancebetween�the�two�companies�is�an�attempt�to�build�on�each�other's�strengths.The�agreement�provides�Moser�Baer,�the�video�rights�to�25�films�of�UTV�whichincludes�9�under�production�films,�10�UTV's�premium�catalogue�films�and�6recently�released�premium�films.�
With�pirated�copies�of�films�available�in�less�than�24�hours�and�companiesfailing�to�stop�piracy,�theatres�have�witnessed�a�fall�in�the�footfalls.�The�homevideo�business�in�such�a�scenario�is�thus�not�likely�to�be�a�threat�to�theatres.
• PVR plans to set up 15 fun centres
Multiplex�operator�PVR�has�plans�to�set�up�15�entertainment�centres�withbowling�alleys�and�gaming�zones�by�2012.�These�centres�are�expected�to�comeup�at�shopping�malls�and�are�likely�to�be�named�‘BlueO’.�Earlier,�the�companyhad�formed�a�JV�with�Thailand’s�Major�Cineplex�group�to�set�up�and�runbowling�alleys�in�the�country.�The�company’s�first�bowling�alleys�are�expectedto�come�up�at�Gurgaon.�In�the�first�stage,�PVR�plans�to�open�these�centres�at�4to�5�destinations�like�Bangalore�and�Chennai�followed�by�2�more�in�2009.
• Global crisis hits Indian PR industry
The�global�meltdown�has�resulted�in�public�relations�firms�facing�the�heat�withthe�business�houses�going�slow�on�image�building�and�advertisementcampaigns.�After�witnessing�a�30�percent�growth�rate,�PR�firms�are�finding�itdifficult�to�retain�clients.�Negotiations�are�on�and�cost�reduction�is�likely�to�be�anatural�phenomenon�under�such�circumstances.�Wherever�possible,�theindustry�is�providing�the�required�support�to�the�already�suffering�businesshouses.�Being�an�essential�part�in�the�business�arena,�the�Indian�PR�industry�islikely�to�bear�the�brunt�if�the�global�or�Indian�business�is�disturbed.
• Nalanda Capital acquires 1.8 percent in Sun Network
Singapore-based�Nalanda�Capital�has�acquired�a�1.8�percent�stake�in�SunNetwork�for�approx.�USD�20�million.�The�stake�was�picked�from�the�BombayStock�Exchange�through�an�open�market�bulk�deal�transaction.�Nalandapurchased�70�lakh�shares�of�Sun,�each�valued�at�about�USD�3.�Sun�Network�isa�diversified�media�player�with�interests�in�TV�channels,�MSO,�radio,newspapers,�magazines�and�movie�production.
Page 9 of 16
Media
Analyst: Mehul Desai©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"As against the normal 25-30percent growth rate the industryhas been experiencing over thepast 5 years, growth this year maybe 10-15 percent. The Indian PRindustry is an integral part of thelarger business landscape.Anything that impacts global orIndian business will indirectlyimpact the industry here" Madan Bahal, Managing Director-Adfactors PublicRelation (Source: Economic Times, 14 December 2008)
• Nelp-VIII likely to offer 100 blocks
The�petroleum�ministry�has�plans�to�auction�over�100�potential�areas�for�oil�and
gas�exploration�by�March�2009�under�the�eighth�round�of�New�Exploration
Licensing�Policy�(Nelp�VIII).�Nelp�VII�was�considered�as�the�largest�round�with
150,000�sq�km�of�area�offered�and�Nelp�VIII�is�expected�to�be�even�bigger�with
400,000�sq�km�of�area�being�offered.�The�government�has�already�started�its
interactions�with�stakeholders�for�bid�evaluation�criteria�of�oil�and�gas
exploration�blocks�and�coal�bed�methane�(CBM)�assets.
• India’s OIL, ONGC to co-operate in exploration and marketing of oil
and gas
Oil�and�Natural�Gas�Corporation�(ONGC)�and�Indian�Oil�Corporation�(IOC)�have
signed�a�Memorandum�of�Understanding�(MoU)�for�exploration�and�marketing
of�oil�and�gas.�The�MoU�anticipates�ONGC�to�provide�support�to�IOC�in
exploration�under�Nelp,�and�IOC�to�support�ONGC�for�marketing�its�Aviation
Turbine�Fuel�(ATF).�The�two�companies�are�also�expected�to�jointly�build
strategies�for�the�marketing�of�natural�gas�produced�by�ONGC.�Besides�this,
the�MoU�also�incorporates�IOC�to�supply�diesel�to�ONGC�in�order�to�meet�its
operational�requirements.�
• India curbs LNG buying; prefers Naphtha
Asia’s�already-slow�spot�market�for�Liquefied�Natural�Gas�(LNG)�has�come�to�a
standstill�with�Indian�buyers�switching�to�Naphtha.�An�alternate�to�LNG,
Naphtha�has�noticed�a�recent�dramatic�drop�in�prices.�Naphtha�prices�are
currently�at�almost�half�of�the�price�at�which�LNG�is�assessed�in�Asia.�This�is
the�primary�reason�why�Indians�have�stopped�buying�LNG.�LNG�on�the�other
hand�is�not�fighting�an�easy�battle�especially�since�India’s�gas�supply�is�about�to
increase�from�next�year,�thereby�creating�Naphtha�as�its�rival�not�only�in�liquid
fuels�but�also�in�Indian�gas.
• BP ready to explore Indian deepwater
British�Petroleum�(BP)�and�Reliance�Industries�Limited�(RIL)�have�signed�a
production�sharing�contract�with�the�Government�of�India�for�the�block�KG-
DWN-2005/2.�This�1949�sq�km�block�was�offered�to�BP�in�the�seventh�round�of
NELP.�It�is�located�about�40�kilometers�off�the�Krishna�Godavari�coast�and�is
close�to�the�existing�deep�water�discoveries�in�the�KG�basin.�BP,�with�30
percent�participating�interest�in�the�block�expects�to�conduct�detailed�2D�and
3D�seismic�surveys�and�reprocess�the�existing�seismic�data.
• IOC puts petrochem project on hold, to focus on refinery
One�of�the�country’s�largest�refiners,�Indian�Oil�Corporation�Limited�(IOC)�has
put�a�stay�on�its�petrochemical�complex.�The�global�meltdown�alongside�the
liquidity�crunch�and�a�three�fold�increase�in�the�combined�project�cost�has
forced�the�company�to�shift�its�focus�to�the�refinery�project.�The�petrochemical
complex�is�expected�to�come�up�in�the�second�phase�since�the�company’s
borrowing�has�more�than�doubled�from�the�previous�year�(approx.�USD�1.2
billion),�thereby,�pressurizing�IOC�to�disburse�approx.�USD�32�million�crore�by
way�of�interest�cost.
Page 10 of 16
Oil and Gas
Analyst: Suman Lala©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Parameter NELPI
NELPII
NELPIII
NELPIV
NELPV
NELPVI
NELPVII
No. of
Blocks
Offered
48 25 27 24 20 55 57
No. of
Blocks
Bid for
28 23 24 21 20 52 45
No of
Bids
Received
45 44 52 44 69 165 45
No of
blocks
awarded
25 23 23 21 20 52 44
No of
PSC
signed
24 23 23 20 20 55 44
Source:�Press�Articles
NELP History
• Piramal Healthcare acquires Minrad International, Inc.
Piramal�Healthcare�Limited,�one�of�India’s�leading�pharmaceutical�companies,has�signed�an�agreement�to�acquire�Minrad�International,�Inc.,�a�supplier�ofgeneric�inhalation�anesthetics.�Minrad�is�expected�to�merge�with�Piramal’snewly�incorporated�wholly-owned�subsidiary.�The�total�consideration�of�the�dealis�expected�at�USD�40�million.�
This�acquisition�is�expected�to�provide�Piramal�an�access�to�vital�intellectualproperty�pertaining�to�the�production�of�inhalation�anesthetics.
• Ranbaxy signs an exclusive licensing agreement with US-based
BioPro Pharmaceuticl, Inc.
Ranbaxy,�one�of�India’s�leading�pharmaceutical�companies,�has�entered�into�anexclusive�licensing�agreement�with�US-based�BioPro�Pharmaceuticl,�Inc.,�tomarket�Gliadel®�Wafer,�a�drug�for�brain�tumor,�in�India.�Ranbaxy�has�alreadyreceived�the�import�permission�for�marketing�the�US�FDA�approved�drug.�Thisagreement�is�expected�to�strengthen�Ranbaxy’s�presence�in�the�oncologytherapeutic�segment.�
• Glenmark is likely to launch drug for HIV-associated diarrhea in
developing economies by 2010
Glenmark�Pharmaceuticals,�an�Indian�research-oriented�pharmaceuticalcompany,�is�expecting�to�file�the�New�Drug�Application�(NDA)�for�the�launch�itsnovel�drug�being�development�for�multiple�indications�including�HIV-associateddiarrhea�–�Crofelemer�–�by�2010�in�the�US.�It�is�likely�to�complete�the�regulatoryprocedures�and�seek�approvals�for�the�drug�in�the�ROW�countries�during�thisperiod.�The�opportunity�in�the�ROW�countries�is�estimated�at�USD�80�million.�
At�present,�Crofelemer�is�in�the�Phase�III�in�the�US�and�Glenmark�has�theproduct�rights�for�diarrhea�indications�in�140�countries.�
• 20 more biotech parks likely to be set up in India
Kapil�Sibal,�the�Union�Minister�of�Science�and�Technology,�is�reported�to�haveannounced�that�20�more�biotech�parks�plan�to�be�set�up�in�India,�in�order�topromote�life�sciences-related�research.�Currently,�there�are�only�three�functionalbiotech�parks�situated�in�Pune,�Hyderabad�and�Punjab�besides�the�recentlyinaugurated�Lucknow�Biotech�Park.�
Page 11 of 16
Pharma
Analyst: Nandita Kudchadkar & Dhruti Parikh
©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"Setting up of new biotech parksis one of our initiatives forpromoting quality research inbiotechnology and its appliedfield."Kapil Sibal, the Union Minister of Science andTechnology(Source: Economic Times, 7 December, 2008)
• NPCIL in agreement with Areva to supply uranium
State�run�Nuclear�Power�Corporation�India�Limited�(NPCIL)�has�entered�into�anagreement�with�French�energy�firm�Areva�to�supply�300�tones�of�uraniumannually.�The�fuel�is�likely�to�generate�1500�MW�power,�which�represents�35percent�of�country’s�installed�nuclear�power�generation�capacity.�PresentlyNPCIL’s�plants�are�operating�at�45�percent�Plant�Load�Factor�(PLF).�Howeverwith�availability�of�fuel;�the�plants�are�expected�to�operate�at�full�capacities.NPCIL�currently�operates�17�nuclear�reactors�at�6�locations�with�a�totalgeneration�capacity�of�4,120�MW.�
• BHEL bags USD 237 million order from Bina Power
Government�owned�equipment�maker�Bharat�Heavy�Electrical�Limited�(BHEL)has�bagged�USD�237�Million�order�from�Jaypee�group’s�company�–�Bina�PowerCompany�Limited.�The�contract�is�for�setting�up�a�500�MW�thermal�power�plantat�Bina�in�Madhya�Pradesh.�BHEL�would�install�2�units�of�250�MW�each(2x250),�which�is�expected�fall�during�the�XIth�Plan�period�(2007-12).�BHEL'sscope�of�work�includes�design,�engineering,�manufacturing,�supply,�erection,testing�and�commissioning�of�boilers,�turbines�and�associated�auxiliaries.
• Punj Lloyd to form JV with Thorium Power
Punj�Lloyd�has�enetered�into�an�Memorandum�of�Understanding�(MoU)�to�forma�50:50�JV�company�with�US�based�Thorium�Power�Ltd�for�building�nuclearpower�plants.�The�new�company�is�likely�to�combine�Punj�Lloyd’s�expertise�inEngineering,�Procurement�and�Construction�(EPC)�contract�work�and�ThoriumPower’s�technological�expertise�in�the�use�of�thorium�to�generate�nuclearpower.�The�JV�is�expected�to�undertake�fuel�designing�for�the�reactors;�provideservices�to�build�nuclear�reactors�as�well�as�advisory�services�to�exploreinvestment�opportunities�in�the�nuclear�energy�sector.
• RIL to sell solar energy in Rajasthan
Reliance�Industries�Limited�(RIL)�has�entered�into�an�agreement�with�threepower�companies�of�Rajasthan�viz.�Jaipur�Discom,�Ajmer�Discom�and�JodhpurDiscom�to�sell�solar�energy.�RIL�is�expected�to�set�up�a�five�MW�solar�powergeneration�plant�at�Khimsar�village�in�Nagaur�district.�As�per�the�agreement�RILis�expected�to�receive�INR�15.78�per�unit.�The�power�purchase�rate�would�beINR�3.67�for�10�years�while�Indian�Renewable�Energy�Development�Agency(IREDA)�is�expected�to�pay�INR�11.33�per�unit�as�per�the�directives�ofRenewable�Energy�Regulatory�Commission�(RERC)�to�promote�solar�greenenergy.�Apart�from�that,�the�discoms�is�likely�to�pay�0.78�paise�per�unit�to�thepower�generation�company.�
Page 12 of 16
Power
Analyst: Rajiv Parekh©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Source:�White�Paper�on�Strategy�for�XIth�Plan�,�CEA
Requirement for various materials for planned
capacity additions during XIth Plan
MaterialXIth�Plan�
78577�MW(�Fig�in�lakh�tonnes�)
Cement 306.3
Structural Steel 80.4
Reinforcement Steel 51.3
CRGO Steel 10.7
Castings 0.4
Forgings for TG sets 0.4
Special Steel for Sub-Stations 3.3
Steel for Conductors in
Transmission Lines2.7
Steel for Conductors in Distribution
Lines4.5
Aliminium 16
Copper 8.1
Zinc 1.5
Thermal Insulation 2.5
• Trikona to Invest USD 400 million in India
Trikona�Capital�is�planning�to�invest�about�USD�400�million�in�Indian�real�estate
market�in�2009.�It�plans�to�invest�about�USD�120-160�million�for�affordable
housing�aimed�at�middle�income�groups.�The�company�is�investing�in�a�project
that�is�coming�up�in�Virar,�near�Mumbai,�on�a�217-acre�plot.�The�apartments�are
expected�to�be�priced�starting�at�USD�26178.�700�apartments�are�to�be
constructed�in�the�first�phase�and�there�are�plans�to�develop�about�13000
apartments�over�a�period�of�7�years.�The�company�is�targeting�a�return�of
20-25�percent�on�this�investment�in�2009.
• Unitech to Build Houses for Middle Class
Unitech,�Indian�real�estate�developer,�is�planning�to�invest�about�USD�500
million�to�build�affordable�housing�for�the�middle�income�group�in�Gurgaon,
Noida,�Greater�Noida,�Kolkata�and�Chennai.�The�company�plans�to�build�about
10,000�units�in�the�USD�60000-100,000�price�category.
• Vascon Developing Residential Project in Pune
Vascon�Engineers,�a�Pune�based�real�estate�company,�is�developing�a
residential�project�called�Willows,�at�Baner�near�Pune’s�IT�hub�Hinjewadi.�The
company�plans�to�spend�about�USD�81�million�towards�developing�this�project.
The�project�would�consist�of�high-end�apartments�of�2,500�square�feet�to
3,000�square�feet�and�penthouses�of�over�6,000�square�feet�spread�in�4
towers.�The�first�phase�is�expected�to�be�completed�by�mid�2009.�The�price�of
the�apartments�is�set�at�USD�86�per�square�feet�(INR�4250�per�square�feet).
• Ansal to Develop Housing Project in Jammu
Ansal�Housing�&�Construction�Ltd,�a�real�estate�developer�in�India,�has
announced�its�plans�of�a�residential�project,�called�Ansal�Grace,�in�Jammu.�The
residential�units�would�be�priced�between�USD�48,000�and�USD�70,000.�The
company�has�planned�several�modern�amenities�like�Clubhouse,�Swimming
Pool,�Landscaped�parks,�children�play�area�and�Tennis�Court,�amongst�others�in
the�project.
• AMRL to Develop SEZ
AMRL�International�Tech�City,�a�JV�of�Hyderabad-based�AMR�Constructions�Ltd
and�Tamil�Nadu�Industrial�Development�Corporation�Ltd�(Tidco),�is�planning�to
invest�around�USD�161�million�to�develop�a�multi-product�special�economic
zone�(SEZ)�in�Tamil�Nadu.�The�SEZ�has�been�given�notification�in�November
2008.�The�construction�of�first�phase�of�the�project�has�begun�and�is�expected
to�go�full�swing�by�January�2009.�The�project�is�expected�to�attract�investments
of�about�USD�3�billion�and�generate�about�7000�jobs.�The�SEZ�is�expected�to
support�sectors�like�engineering,�auto�components,�pharmaceuticals,
electronics�and�hardware,�bio-technology,�IT�and�ITeS,�textiles�and�logistics.
Page 13 of 16
Real Estate and SEZs
Analyst: Nitin Dehadraya ©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“The thrust given by the CentralGovernment to bring the economyto its full momentum isencouraging. The correction inreal estate prices supported bylower interest is a trigger thatwould lead to many positivethings.”Sanjay Dutt, CEO, Jones Lang LaSalle Meghraj(Source: India Real Estate Monitor, 27 December, 2008)
• Tata Tele sells 49 percent stake to Quippo
Tata�Teleservices�Limited�has�sold�49�percent�stake�in�its�telecom�tower�andinfrastructure�arm�to�Quippo�Telecom�Infrastructure�Ltd�(QTIL).�As�per�theunderstanding�QTIL�is�likely�to�make�an�upfront�cash�payment�of�USD�483million�and�also�transfer�its�5000�towers�to�the�Tatas�tower�company�–�WirelessTata�Telecom�Infrastructure�(WTTI).�Quippo,�in�return�is�expected�to�receive�49percent�stake�and�management�control�of�merged�entity.�The�combined�entityis�likely�to�have�over�18,000�towers.
• Opportunity in an adverse scenario
The�financial�meltdown�has�affected�almost�all�the�business�verticals�across�theglobe,�however�networking�companies�in�India�are�looking�for�an�opportunity�ingovernment,�defence�and�telecom�companies.�Juniper�Networks�–�one�of�theleading�networking�company�is�aggressively�pursuing�e-government�dealsespecially�for�State�Wide�Area�Networks�(SWAN).�These�includes�deployingrouting�and�security�solutions�to�link�its�public�agencies�and�deliver�e-government�citizen�services�that�are�secured�using�online�validation�and�digitalcertificates.�Juniper�is�currently�working�with�states�of�Chhattisgarh,�Bihar�andHimachal�Pradesh�while�Cisco�is�working�with�states�of�Karnataka,�Haryana,Maharashtra,�Madhya�Pradesh,�West�Bengal�and�Kerala�for�their�SWANprojects.�As�per�Juniper�Networks,�the�total�opportunity�in�e-governance�fornetworking�equipment�is�about�USD�200�to�250�million.
• Tata Tele and Nortel to jointly offer managed services
Tata�Tele�Services�Limited�(TTSL)�in�collaboration�with�Nortel�has�launched�anew�service�to�address�the�communication�needs�of�the�small�and�mediumbusiness�(SMB).�Under�this�new�service,�Tata�Tele�would�provide�a�singleinterface�solution�to�the�SMBs�for�their�communications�requirements,including�digital�ISDN�connectivity,�voicemail�services,�interactive�voiceresponse�and�Mobile�Extension�Services.�The�services�would�be�available�on�amonthly�rental�model�and�would�not�require�any�upfront�payment�towards�thepurchase�of�telecom�equipment.
• RComm dials GSM
Reliance�Communication�Limited�(RComm)�–�country’s�second�largest�wirelesstelecom�operator�has�launched�nationwide�GSM�services�which�is�likely�tocover�11,000�towns�and�3,40,000�villages�and�is�expected�to�invest�USD�2billion�for�the�proposed�roll-out.�Currently�majority�of�wireless�subscribers�useGSM�services,�which�is�expected�to�complement�RComm’s�current�CDMAservices.�It�is�expected�that�RComms�GSM�services�is�likely�to�cover�over�onemillion�retailers�in�India.
Page 14 of 16
Telecom
Analyst: Rajiv Parekh©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Source:�TRAI
Tele-Density (percent)
• Jet Airways join hands with Emirates
India�based�airline�Jet�Airways�and�UAE�based�Emirates�Airline�have�planned�aunilateral�code�share�agreement�and�a�reciprocal�frequent�flyer�arrangement.Effective�from�15�December,�Emirates�along�with�Jet�Airways�share�daily�flightsfrom�Mumbai�and�New�Delhi�to�Dubai�which�aims�to�give�travelers�betterconnectivity�and�an�expanded�range�of�services�between�India�and�Dubai.Emirates'�customers�are�likely�to�have�the�option�to�travel�on�its�four�dailyflights,�as�well�as�on�Jet�Airways'�daily�service�between�Mumbai�and�Dubai.Likewise�on�the�New�Delhi-Dubai�sector,�Emirates�would�offer�its�customersthe�choice�of�25�flights�per�week�on�its�aircraft�and�an�additional�seven�flightsper�week�on�Jet�Airways.��
• Reliance Infrastructure won Haryana road projects
Reliance�Infrastructure,�the�infrastructure�arm�of�Reliance�Anil�DhirubhaiAmbani�Group,�has�been�bagged�a�four-laning�of�Gurgoan-Faridabad�road�andup-gradation�of�Ballabgarh-Sohana�road�on�build-operate-transfer�(BOT)�mode.The�project�involves�construction�of�a�66�mm�of�highways.�It�is�expected�to�becompleted�in�2�years�from�the�date�of�commencement�with�a�concessionperiod�of�17�years---the�period�in�which�the�company�is�expected�to�recover�itsinvestment�by�collecting�tolls.�The�company�is�presently�in�the�advanced�stagesof�a�project�which�involves�four-laning�of�five�national�highway�projects�in�TamilNadu,�covering�a�length�of�400�Km�at�an�estimated�cost�of�USD�632�million.With�the�latest�addition,�its�roads�and�national�highway�portfolio�has�nowreached�to�466�Km.
• IRCTC, Cox & Kings to launch luxury train service
The�Indian�Railway�Catering�Tourism�Corporation�(IRCTC),�the�tourism�arm�ofIndian�Railways,�has�tied�up�with�travel�company�Cox�&�Kings�India�(CKI)�tolaunch�a�pan-India�luxury�rail�service.�According�to�the�deal,�IRCTC�is�expectedto�run�the�train�while�CKI�is�likely�be�responsible�for�the�marketing.�Theestimated�cost�of�the�new�project�is�around�USD�102�million,�and�both�partieshave�a�profit-sharing�agreement.�The�train�is�expected�to�start�functioning�bythe�third�quarter�of�2009.�
• GoAir to increase fleet size to 35 by March 2011
Wadia�Group’s�no-frills�airline�GoAir�is�expanding�its�operations�and�increasingfleet.�The�airline�has�decided�to�scale�up�its�fleet�size�to�35�by�March�2011�fromthe�existing�six�in�two�tranches.�It�is�likely�to�add�20�aircraft�by�this�year�andlater�bring�in�another�nine�in�the�next�two�years.�The�proposed�expansioncoupled�with�the�tumbling�crude�and�aviation�turbine�fuel�prices�would�help�thebusiness�break-even�faster.�GoAir�is�looking�at�an�alliance�with�foreign�carriersto�expand�services�and�increase�its�market�share�to�more�than�10�percent�fromthe�existing�2.3�percent
• MARG Ltd has been awarded contract for airport project
Infrastructure�and�Real�Estate�Company�MARG�Ltd�has�won�a�contract�fordeveloping�and�operating�greenfield�airport�in�Karnataka�on�build,�own�andtransfer�basis.�The�airport�is�expected�to�come�up�on�a�727�acres�of�land�inBurnapur�village�north�Karnataka.�MARG�has�won�a�30-year�deal�to�design,develop,�operate�and�manage�the�airport.�Thereafter�the�term�can�be�extendedby�the�company�for�another�30�years.�After�expiry�of�the�60-year�term,�theagreement�may�be�extended�by�a�further�period�of�30�years�based�on�mutualconsent�of�both�parties�--�Government�of�Karnataka�and�MARG�Limited.
Page 15 of 16
Transport and Logistics
Analyst: Ashish Punjabi©�2009�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"The agreements betweenEmirates and Jet represent asignificant step forward instrengthening the relationshipbetween two airlines andbetween long-standing partners,India and the UAE”Mr. Salem Obaidalla, Senior Vice PresidentCommercial Operations, Emirates(Source: Jet Airways website, 12 December, 2008 )
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The�information�contained�herein�is�of�a�general�nature�and�is�not�intended�to�address�the�circumstances�of�any�particular�individualor�entity.�Although�we�endeavour�to�provide�accurate�and�timely�information,�there�can�be�no�guarantee�that�such�information�isaccurate�as�of�the�date�it�is�received�or�that�it�will�continue�to�be�accurate�in�the�future.�No�one�should�act�on�such�informationwithout�appropriate�professional�advice�after�a�thorough�examination�of�the�particular�situation.
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
Travers Smith
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Research Inputs by KPMG’s India Research Center