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Sectoral Snippets
About Sectoral Snippets
Sectoral Snippets is an India-focused, monthly, freely-distributable newsletter brought out by
KPMG in India. This newsletter provides an overview of the Indian economy in the form of
news-briefs from across key sectors.
Contact [email protected] if you are interested in receiving this newsletter on a
regular basis, or wish to unsubscribe.
Table of Contents
1. Indian Economy 3
2. Auto and Auto Components 4
3. Banking and Insurance 5
4. Consumer Markets and Retail 6
5. Hospitality 7
6. IT / ITeS 8
7. Media 9
8. Oil and Gas 10
9. Pharma 11
10. Power 12
11.Real Estate and SEZs 13
12.Telecom 14
13.Transport and Logistics 15
Sectoral Snippets, Issue 26
Amidst�the�uncertain�global�financial�situation,the�Indian�government�has�recently�undertakena�slew�of�measures�to�maintain�the�economy’sgrowth�momentum�including�targeted�measuresto�increase�mortgage�lending�and�support�smallbusinesses�and�exporters.�India’s�central�bankRBI�also�emphasised�the�need�for�financialstability�in�its�recent�'Report�on�Trend�andProgress�of�Banking�2007-08'�and�is�expected�tofacilitate�monetary�measures�to�ease�liquiditypressures.�The�report�also�indicated�the�impactof�the�global�situation�on�liquidity�and�credit�inIndian�financial�markets�while�maintaining�thatthe�banking�sector�in�India�is�relatively�healthy.
Apart�from�this,�Russian�President�DmitryMedvedev�recently�concluded�his�maiden�three-day�long�trip�to�India,�during�which�the�twocountries�fortified�relations�by�signingagreements�relating�to�nuclear�and�spacecooperation.
I�hope�you�find�this�edition�of�Sectoral�Snippetsinformative�and�useful.
Regards,
Russell
Russell Parera
Chief Executive Officer
KPMG in India
©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
The�global�economy�has�been�witnessing�several�critical�challenges�in�terms�of
large�imbalances�created�due�to�the�spurt�in�oil�prices�in�recent�times,�severe
credit�squeeze,�and�heightened�global�economic�and�political�issues�among
others.
The�US�financial�turmoil�has�engineered�a�slowdown�in�a�majority�of�the
country’s�export�centric�sectors�like�IT,�Auto,�Gems�&�Jewellery,�etc.
The�IT�sector�is�witnessing�a�downturn�on�mounting�worries�about�the�US
economy�after�the�Federal�Reserve�slashed�its�growth�forecasts�for�its�economy.
Indian�IT�firms�receive�majority�of�the�share�of�their�revenue�from�exports�to�the
US.�The�weakening�of�the�Indian�currency�is�likely�to�have�an�impact�on�their
revenues�as�companies�are�seeing�flat�billing�rates.
The�auto�sector�too�has�shown�a�decline�on�a�worsening�global�economic
condition�and�declining�domestic�demand�due�to�high�interest�rates�and�fuel
prices.�
With�the�liquidity�crunch�and�poor�performance�of�the�Sensex,�the�realty�sector
too�is�likely�to�witness�a�slowdown�owing�to�lower�demand.�
To�combat�the�current�weak�scenario,�the�Reserve�Bank�of�India�(RBI),�India’s
central�bank�has�announced�measures�to�improve�liquidity�and�help�exporters,
some�of�the�steps�include:
• Increasing�the�limit�on�export�credit�refinance�available�to�banks
• Allowing�housing�finance�companies�to�raise�funds�through�short-term
overseas�borrowings
• Reduction�in�risk�weights�for�banks�on�commercial�real�estate�and�on�unrated
claims�on�corporates.
Thus,�the�government�plans�to�take�necessary�steps�to�augment�the�economy�to
compensate�for�the�downside�caused�by�the�world�economy.�
On�the�bright�side,�inflation�was�hovering�around�8-9�percent�and�has�been
softening�ever�since�it�hit�a�16-year�high�of�close�to�14�percent�in�the�earlier
months.�The�rising�prices�of�oil�in�the�first�half�of�2008,�have�now�corrected
owing�to�a�gradual�slowdown�in�demand.
In�spite�of�the�weak�global�scenario,�India�is�capable�of�emerging�strong�from
the�global�economy�crisis.�The�government�is�taking�various�steps�to�ensure�that
the�shortage�of�demand�from�the�global�slowdown�is�neutralised�to�the�greatest
possible�extent�through�use�of�fiscal�and�monetary�policies�and�increased�public
investment.
Indian EconomyPage 3 of 16
Analyst: Asmita Deshmukh©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Source:�Credit�Suisse
Cooling Inflation:
• Anand Automotive plans to invest USD 120 mn to set up 13 plants
Anand�Automotive�Systems,�an�Indian�automotive�components�and�systems
manufacturer,�has�planned�to�invest�USD�120�mn�to�set�up�13�plants�across
India�by�2010.�The�Anand�Group�produces�shock�absorbers,�struts,�front�forks,
engine�bearings,�piston�rings,�castings�and�gaskets,�through�18�companies�at
44�manufacturing�locations,�at�present.�Some�of�the�key�OEM�clients�of�the
company�include�Maruti�Suzuki,�Tata�Motors�and�Mahindra�&�Mahindra.�It�plans
to�increase�exports,�which�account�for�nearly�20�percent�of�total�revenues,�by
entering�new�markets�in�South�East�Asia�and�South�America.
• Sogefi Group acquires 60 percent stake in MN Rama Rao Filters
Sogefi�group,�an�Italian�auto�parts�manufacturer�has�reportedly�acquired�60
percent�stake�in�MN�Rama�Rao�Filters�(MNR�Filters)�of�Bangalore�for�an
undisclosed�sum�through�its�subsidiary�Filtrauto�of�France.�MNR�Filters
manufactures�air�filters�for�two�and�three�wheelers.�Its�major�clients�are�Hero
Honda,�Bajaj�Auto�Ltd.�and�TVS�Motors.�The�acquisition�is�expected�to�help
both�companies�expand�their�product�portfolio�and�allow�Sogefi�to�utilise�India's
low�cost�structure�to�create�products�for�exports’�markets.�Sogefi�also�plans�to
manufacture�engine�oil�filters�and�diesel�and�gasoline�filters�in�India.
• Delphi Corporation announced to invest USD 50 mn
Delphi�Corporation,�an�automotive�component�manufacturer,�plans�to�set�up�a
new�electronics�manufacturing�facility�in�Oragadam�near�Chennai.�The�new
facility�is�expected�to�be�operational�by�end�of�2009,�and�is�to�be�put�up�with
an�investment�of�USD�50�mn,�in�phases,�over�the�next�5�years.�The�new�unit�is
expected�to�manufacture�electronic�products�in�the�areas�of�controls�and
security,�safety�and�entertainment�and�communications.
• Toyota plans to invest USD 639 mn for its new plant
Toyota�Motor�Corporation�(TMC)�is�expected�to�invest�USD�639�mn�for�the
second�manufacturing�plant�in�Bangalore�through�Toyota�Kirloskar�Motor�(TKM).
TKM�is�a�joint�venture�company�between�TMC�and�the�Kirloskar�Group.�The
company�plans�to�invest�USD�329�mn�for�the�buildings�and�basic�equipment
and�USD�310�mn�for�both�the�general-purpose�and�specialised�equipment
necessary�for�manufacturing�a�new�compact�vehicle.�The�new�plant�is�expected
to�be�operational�by�2010�and�is�reported�to�have�an�annual�production�capacity
of�100,000�units.
• Suzuki Motorcycles to invest USD 30 mn for capacity expansions
Suzuki�Motorcycles�India�Pvt.�Ltd.,�the�Indian�two-wheeler�unit�of�Suzuki�Motor
Corp.�is�expected�to�invest�USD�30�mn�to�expand�its�production�capacity�of
scooters�and�motorcycles�at�its�Gurgaon�plant.�The�company�currently
manufactures�150,000�units�annually�which�is�expected�to�be�increased�to
250,000�units�by�June�2009.
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Auto and Auto Components
Analyst: Rajiv Somani©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Source:�Ministry�of�Petroleum�and�Natural�Gas
CNG Vehicles in selected cities (as of April
2008)
81%�of�the�CNG�run�vehiclesare�concentrated�in�Delhi�andMumbai�combined
• SBI forms alliance with IAG for general insurance business
India’s�leading�public�sector�bank,�State�Bank�of�India�(SBI)�and�InsuranceAustralia�Group�(IAG)�has�signed�a�joint�venture�agreement�to�set�up�generalinsurance�business�in�India.�IAG,�the�largest�general�insurance�group�inAustralia,�is�to�hold�26�percent�stake�in�the�new�entity,�while�SBI�is�to�hold�therest.�SBI�is�already�present�in�the�life�insurance�business�in�India�through�itssubsidiary�SBI�Life�Insurance�Company�of�India.�IAG�has�operations�in�Australia,New�Zealand,�Thailand,�Malaysia,�China�and�the�UK�and�its�current�businessesunderwrite�nearly�USD�5�billion�of�premium�annually.�
According�to�industry�sources,�insurance�penetration�in�India�is�very�low�andthe�general�insurance�industry�is�expected�to�grow�at�15–20�percent�perannum�over�a�period�of�the�next�10�years.�The�general�insurance�business�inIndia�recorded�a�growth�of�12.5�percent�in�premium�in�2007-08,�with�presenceof�13�players.�
• Yes Bank ties-up with UAE's Mashreq Bank
India’s�private�sector�lender�Yes�Bank,�has�formed�strategic�alliance�with�UAE'sMashreq�Bank�to�offer�its�services�to�Mashreq�Gold�customers�in�UAE.�Thepartnership�is�to�allow�Mashreq�Gold�customers�in�the�UAE�to�open�Indianrupee�savings�account�and�fixed�deposits.�Through�this�alliance,�Yes�is�also�toprovide�its�UAE�customers�with�Yes�First�program,�which�aims�at�providingcustomized�solutions�for�multiple�investment�opportunities�in�India�through�arange�of�products�and�advisory�services.�Mashreq�is�a�leading�private�bank�inthe�UAE�and�with�large�presence,�particularly�in�retail�banking.
• BNP Paribas forms joint-venture with Sundaram Finance
Sundaram�Business�Services�(SBS),�a�unit�of�Sundaram�Finance,�and�BNPParibas�Securities�Services�have�formed�an�alliance�to�provide�securitiesservices�in�India.�The�new�venture�is�to�be�called�Sundaram�BNP�ParibasSecurities�Services.�SBS�is�hold�51�percent�and�BNP�Paribas�is�to�hold�the�rest.Sundaram�BNP�Paribas�Securities�Services�is�likely�to�be�dedicated�to�provide�afull�range�of�securities�services,�including�fund�accounting�and�transfer�agencyto�both�domestic�and�off-shore�investors�in�India.�BNP�Paribas�has�an�existingjoint�venture�to�provide�asset�management�and�housing�finance�services�withthe�Sundaram�Group.�
SBS�is�the�Business�Process�Outsourcing�(BPO)�arm�of�Sundaram�Finance,engaged�in�providing�transaction�processing�services�primarily�to�the�financialservices�industry.
• Actis to invest USD 1billion in India
Global�private�equity�firm,�Actis�plans�to�invest�USD�1�billion�in�India�over�thenext�3-4�years.�Actis�has�raised�USD�2.9�billion�for�investing�across�emergingmarkets,�under�its�Actis�Emerging�Markets�3�Fund�(AEM3).�The�AEM3�fundplans�to�invest�a�minimum�of�USD�50�million�in�buyout�and�growthtransactions.�AEM3�includes�commitments�from�a�group�of�100�investors�fromacross�the�globe.�Actis�has�been�a�operating�in�India�for�over�10�years�and�hasmade�several�good�exits�in�India.
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Banking and Insurance
Analyst: Kunal Jain©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"Entering the Indian generalinsurance market has been apriority for IAG for some time, tosupport our longer term growthand profitability. India has a largeand expanding economy, with ageneral insurance marketpredicted to grow 15–20 percentper annum over the next 10years.” Michael Wilkins - Managing Director and ChiefExecutive Officer, Insurance Australia Group Limited(IAG)(Source: IAG Company Press Release, 24 November,2008.)
• Esprit betting big on India - Plans to expand to 21 Indian cities and
to set up 100 stores
Esprit,�the�international�luxury�watch�and�apparel�brand�retailed�by�MaduraGarments�in�India,�plans�to�broaden�its�India�presence�from�9�cities�to�21�citiesover�the�next�3�years.�The�company�plans�to�open�about�100�stores�in�a�span�of3�years�but�does�not�intend�to�take�the�franchise�route�for�the�expansion.�Espritalso�plans�to�open�a�big�format�store�of�approximately�10-15,000�sq.�ft.�area�inDelhi�in�the�next�2�years.�Esprit,�which�has�been�growing�at�167�percentcompound�annual�growth�rate,�sees�India�as�one�of�the�key�markets�forexpansion.�Currently,�Esprit�has�43�stores,�including�20�outlets�and�23�shop-inshops�outlets.�It�is�looking�at�Tier-I�and�Tier-II�cities�for�its�growth�plans.
• Reliance retail to set up 55 stores for home appliances by 2010
Reliance�Retail�plans�to�set�up�55�multi-brand�showrooms�stores�for�homeappliances�and�electronic�goods�across�the�country�over�the�next�2�years.�Thestores�would�be�set�up�under�Reliance�Digital,�the�consumer�durables�arm�ofReliance�Retail.�The�company�also�inaugurated�the�'iStore'�outlet�in�Chennaiunder�Reliance�Digital.�The�'iStore'�outlet,�which�houses�the�entire�Apple�rangeof�products,�is�built�on�an�area�of�1,100�sq.�ft.�The�company�already�has�twoiStores�in�Bangalore�and�one�each�in�Hyderabad,�Mumbai,�Ahmedabad,�Bhopal,Jaipur�and�Ludhiana.
• Dabur India acquires 72.2 percent stake in Fem Care Pharma
Dabur�India,�acquired�a�72.2�percent�stake�in�Fem�Care�Pharma,�an�Indianplayer�in�the�women’s�skin�care�products�market,�for�USD�41�million�in�an�all-cash�deal.�The�transaction�assigns�a�price�per�share�of�USD�16,�whichtranslates�into�an�equity�valuation�of�USD�56.8�million�and�an�enterprisevaluation�of�approximately�USD�60.3�million�for�Fem�Care�Pharma.�Dabur�is�tomake�an�open�offer�for�an�additional�20�percent�stake�in�the�company�asrequired�under�the�takeover�regulations.�Fem�Care’s�acquisition�is�in�line�withDabur’s�strategy�to�aggressively�expand�the�latter’s�scale�of�operations�andstrengthen�its�presence�in�the�fast�moving�consumer�goods�(FMCG)�space.�Thetransaction�is�likely�to�give�Dabur�a�full-�size�entry�into�the�high-growth�skincare�market�with�Fem�Care’s�established�brand,�‘FEM’.�Fem�Care�Pharma�alsohas�a�sizeable�international�market�presence�in�Yemen,�Maldives,�Mauritius,Malaysia,�UAE,�Oman,�etc.�Its�distribution�reach�covers�125�thousand�retailoutlets�and�25�thousand�parlours�directly.�
• Titan industries plans major Indian expansion
Titan�Industries�plans�to�open�300�retail�stores�of�Titan�Eye�by�2011�acrossIndia.�The�company�also�plans�to�add�another�20�exclusive�optical�showroomsby�the�end�of�the�fiscal�year�2009.�Titan�aims�to�capture�a�substantial�share�inthe�Indian�eyewear�market.�It�intends�to�confine�market�worth�USD�10�millionby�2009-2010�and�USD�60-100�million�by�2010-2011.
Page 6 of 16
Consumer Markets and Retail
Analyst: Sonia Topiwala ©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"The Indian eyewear market isestimated to be worth USD 300million to USD 400 million.Approximately 30 percent of theIndian population requires visioncorrection, thereby creating ahuge potential for companies totap.”(Source: Financial express, 24 November, 2008)
• Oakwood Launches Service Apartment in Bangalore
Oakwood,�a�US-based�service�apartment�major�has�launched�its�secondproperty�in�India�at�Bangalore.�This�177�serviced�residences�property�has�beenbuilt�at�an�investment�of�INR�100�crore.�The�service�apartment�is�expected�totarget�both�corporate�and�leisure�travels.�The�company�had�a�tie-up�withPrestige�Group,�a�Bangalore�based�developer�for�the�development�of�thisproperty.�Oakwood’s�first�property�in�India�was�opened�in�Pune�–�‘OakwoodResidence’�in�2007.�The�company�also�plans�to�operate�a�portfolio�of�10properties�in�Mumbai,�Pune,�New�Delhi,�Hyderabad�and�Chennai�by�2011.
• Bharat Hotels to expand its business
Bharat�Hotels,�one�of�the�leading�hospitality�groups�in�India�plans�to�set�up�8more�hotels�in�India�and�another�two�in�Dubai�and�Thailand�in�next�three-fouryears.�The�group�is�likely�to�invest�INR�1,200�crore�for�the�development�ofthese�hotels.�These�planned�additions�are�expected�to�take�the�company’sinventory�to�3,600�rooms�from�its�current�inventory�of�1,500�rooms.�BharatHotels’�new�properties�are�likely�to�be�opened�in�Kolkata,�Jaipur,�Ahmadabadand�Chandigarh�in�India.�
The�group�has�also�decided�not�to�renew�its�franchise�agreement�with�theglobal�hospitality�chain�‘InterContinental’.�These�hotels�are�reportedly�being�re-branded�as�‘The�Lalit’.
• Royal Orchid forms alliance with Ramada Worldwide
Royal�Orchid,�one�of�the�leading�hospitality�players�in�south�India�has�securedan�exclusive�development�rights�for�the�Ramada�brand�of�Ramada�Worldwide.Under�this�agreement�Royal�Orchid�plans�to�open�and�manage�10�more�hotelsin�Pune,�Chennai,�Nagpur,�Hyderabad,�Jaipur,�Coimbatore�and�Mumbai�by�2012.This�strategic�alliance�with�Ramada�Worldwide,�a�part�of�Wyndham�Group�islikely�to�enable�Royal�Orchid�to�double�its�room�inventory�and�spread�itspresence�across�India.��
The�company�currently�operates�10�hotels�in�India�under�the�five-star�and�four-star�category.�It�also�plans�to�open�its�first�overseas�property�in�Dar-Es-Saalamin�Tanzania�by�2010.
• Unitech to sell hotel properties
Unitech,�one�of�the�leading�real�estate�players�in�India�plans�to�sell�all�its�sixhotel�properties�being�constructed�at�Gurgaon�and�Kolkata.�The�company�is�intalks�with�a�few�private�equity�investors�to�sell�these�hotels�to.�The�sale�isexpected�to�enable�the�company�to�raise�funds�for�its�ongoing�projects�andreduce�the�capital�expenditure.�The�company�has�also�curtailed�its�hotelexpansion�plan�from�2,500�rooms�to�1,500�rooms.
Page 7 of 16
Analyst: Pallavi Phatak
Hospitality
©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"The tourism and travel industrywill be impacted in the near-term.However in the long-term,sentiment to invest and travel toIndia won't be affected."By Adrian Mowat, MD, JPMorgan on Terror attacks inMumbai(Source: CNBC-TV18, 27 November, 2008)
• Satyam acquires Motorola's Malaysia Software Development
Center
One�of�India’s�leading�IT�players,�Satyam�Computers,�has�acquired�Motorola'sMalaysia�Software�Development�Center�(SDC).�As�per�the�terms�of�the�deal,Satyam�is�to�take�over�the�unit’s�assets�and�absorb�the�centre’s�128employees.�The�acquisition�is�expected�to�bring�in�synergies�and�boostcompetitiveness�of�both�the�players�not�only�in�Malaysia�but�throughout�theAsia-Pacific�region.�The�deal�is�in�line�with�the�company’s�decision�to�exit�fromnon-core�businesses.
• Campus Management acquires CRM Business of nGenera
Florida-based�Campus�Management�Corp�(CMC)�has�acquired�nGenera’sTalisma�Customer�Relationship�Management�(CRM)’s�line�of�business.�TalismaCRM�is�a�leading�software�product�suite�providing�multi-channel�CustomerRelationship�Management�for�a�range�of�industries.�It�includes�entire�CRMsoftware�product�suite,�the�Talisma�Higher�Education�business�unit�based�inBellevue�WA,�and�Talisma�Corporation�Private�Ltd.�in�Bangalore,�India.�As�perthe�terms�of�the�agreement,�CMC�is�to�own�the�Talisma�brand,�while�nGenerais�to�have�ownership�of�Talisma’s�Customer�Interaction�Management�(CIM)software�products�and�business.
• TCS inaugurates delivery centre at Tianjin in China
To�support�local�business�opportunities�as�well�as�BPO�opportunities�in�the�US,the�Japanese�and�European�markets,�Tata�Consultancy�Services�(TCS)�hasopened�a�global�delivery�centre�in�Tianjin,�China.�This�300-seat�delivery�centreat�Tianjin�is�company’s�fourth�global�delivery�centre�in�China�after�Beijing,Shanghai�and�Hangzhou.�It�is�also�to�serve�as�an�extended�Centre�ofExcellence�for�Microsoft,�Oracle�and�SAP�to�meet�the�unique�technology�needsof�customers.
• I-Vista Digital acquired by R K Swamy Hansa
RK�Swamy�Hansa�(Hansa),�a�leading�advertising�and�marketing�agency,�hasacquired�a�strategic�stake�in�enterprise�solutions�provider�i-Vista�DigitalSolutions.�The�40�percent�stake�is�to�be�acquired�in�2�stages-�26�percent�in�thefirst�stage�and�further�increasing�it�to�40�percent�over�the�next�2�years.�Withthis�deal,�I-Vista�expects�to�strengthen�its�presence�in�the�US�market�to�cross-sell�and�up-sell�while�Hansa�believes�the�deal�is�likely�to�enhance�its�serviceofferings�to�200-plus�clients�in�the�sub-continent�and�about�20�in�the�US.
• Trans-India Acquisition Corporation to acquire Solar
Semiconductor Ltd.
Trans-India�Acquisition�Corporation�has�signed�a�definitive�agreement�to�acquirenot�less�than�80�percent�of�privately�held�Solar�Semiconductor�Ltd.�(Solar).�Themerger�is�expected�to�ease�the�pressures�in�the�current�financial�climate�andcontribute�towards�the�continuation�of�Solar’s�expansion�plans,�as�well�as�theincrease�in�production�to�meet�current�orders.�Solar�Semiconductor�designs,manufactures�and�sells�solar�photovoltaic�modules�for�industrial,�commercial,public�utility�and�residential�applications�internationally.�Incorporated�in�theCayman�Islands,�Solar�has�subsidiaries�in�the�United�States�and�India.
Page 8 of 16
Analyst: Parnika Patil
IT / ITeS
©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“The Tianjin and Shenzhenfacilities are strategic investmentsto strengthen our informationtechnology infrastructure in orderto leverage the local talent pool.These facilities will help usservice the vibrant local marketand support our internationaloperations in Japan, the US andEurope."Girija Pande, Executive Vice-President and Head ofAsia Pacific division, Tata Consultancy Services.(Source: Livemint, 12 November, 2008)
• NDS to invest USD 150 million in Indian operations
NDS�Group�is�expected�to�invest�USD�150�million�over�the�next�4�years�in�Indiato�enhance�its�operations.�With�this�invested�amount�the�company�is�likely�toenhance�its�research�and�development�alongside�other�commercial�andcustomer�support�operations.�The�company�has�in�the�past�invested�USD�120million�in�India�and�is�accelerating�their�investments�to�keep�up�with�theexpected�growth�of�pay�TV.�NDS�is�a�UK-based�global�digital�pay�and�aninteractive�TV�technology�provider.�
• Shemaroo to invest USD 40 million on biz expansion
Media�house�Shemaroo�Entertainment�is�likely�to�invest�about�USD�40�millionin�the�next�18�months.�The�company�plans�to�expand�its�operations�acrossvarious�verticals�in�the�film�and�video�business.�Initially,�Shemaroo�wasprimarily�into�the�home�video�business�but�now�it�plans�to�expand�into�otherareas�of�entertainment�as�well,�for�which�this�investment�has�been�earmarked.
• NDTV signs distribution pact with ITV
NDTV�has�entered�into�a�distribution�pact�with�UK-based�ITV�for�the�telecastrights�of�its�Granada�TV,�across�India�and�other�South�Asian�countries.�Granadais�a�general�entertainment�channel�which�is�to�offer�its�Indian�viewerscontemporary�dramas,�like�Prime�Suspect,�The�Jeremy�Kyle�Show,�The�FridayNight�Project,�Ballroom�Bootcamp,�Airline�and�Vroom�Vroom.�As�per�theagreement,�the�channel�is�expected�to�be�broadcasted�in�English�initially,�withlocal�sub-titles�available�in�the�launch�markets.
• STAR Jupiter to hold majority stake in Asianet
STAR�has�entered�into�a�joint�venture�(JV)�with�Jupiter�Entertainment�forenhancing�the�viewing�experience�for�audience�in�South�India.�The�new�jointventure�STAR�Jupiter�Entertainment�is�to�hold�majority�interest�in�AsianetCommunications.�Asianet�currently�broadcasts�general�entertainment�channels(GECs)�in�languages�such�as�Kannada,�Telugu,�Malayalam�and�Tamil.�STARJupiter�is�also�expected�to�additionally�invest�for�developing�new�entertainmentassets�in�the�southern�markets.�The�JV�is�also�likely�to�introduce�several�areasof�co-operation,�including�film�co-production�by�Fox�STAR�Studios�India�andIndigo�Movies,�Jupiter�Entertainment’s�movie�production�arm.
• Adlabs plans investments worth USD 40 Million
R-ADAG�owned�Adlabs�film�has�planned�investments�worth�USD�40�million�inits�integrated�film�service�and�movie�exhibition�business.�The�company�is�likelyto�invest�USD�20�million�in�the�expansion�of�its�film�service�business�and�theremaining�USD�20�million�for�adding�100�screens�in�India,�40-50�screens�inMalaysia�and�few�screens�in�America.�The�company�is�also�setting�up�one�ofthe�largest�film�studios�in�Mumbai�which�is�expected�to�commence�by�the�endof�next�year.
Page 9 of 16
Media
Analyst: Mehul Desai©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"The business of alternativecontent is an unexplored territoryand Shemaroo aims to make it bigin this area. We intend to expandthe market itself by creatingnewer avenues to explore andlead the industry to newerhorizons. This kind of content iscertainly a unique entertainmentgenre that audiences will love toconsume.” Hiren Gada, Shemaroo Entertainment Director,commenting on Shemaroo’s investments across variousverticals.(Source: Economic Times, 2 November, 2008.)
• GAIL and IOC to set up petrochemical plant
State-run�Gas�Authority�of�India�Ltd.�(GAIL)�and�refiner�Indian�Oil�Corporation
Ltd.�(IOC)�have�entered�into�an�agreement�to�set�up�a�petrochemical�plant�at
Barauni�in�Bihar.�The�proposed�chemical�plant�is�expected�to�cost�approx.�USD
203�million.�The�chemical�plant�is�also�expected�to�utilise�250,000�tonnes�of
naphtha.�A�130�km�spur�line�is�likely�to�be�laid�from�Gaya�to�transport�gas�to
the�Barauni�fertilizer�plant�and�GAIL’s�Jagdishpur-Haldia�pipeline�is�expected�to
transport�the�gas�found�in�eastern�offshore.
• OVL bags Colombia oil block
ONGC�Videsh�Ltd�(OVL),�the�overseas�arm�of�Oil�&�Natural�Gas�Corporation
Ltd.�(ONGC)�and�Pacific�Stratus,�a�local�oil�and�gas�firm�have�together�bagged
an�oil�block�in�Colombia�through�an�auction.�The�consortium�is�expected�to
invest�USD�23�million�in�the�first�phase�of�exploration.�The�block�is�550�km�long
consisting�of�270,702�hectares�of�total�area.�
• GAIL signs agreement with Himachal state government
Gas�Authority�of�India�Ltd.�(GAIL)�has�entered�into�an�agreement�with�the
Himachal�Pradesh�government�to�study�the�feasibility�of�extending�their�Dadri-
Bawana-Nangal�natural�gas�pipeline�to�the�state.�GAIL�is�expected�to�assess
the�potential�demand�of�natural�gas�and�its�allied�products�in�Himachal�Pradesh.
The�Dadri-Bawana-Nangal�is�a�610�km�pipeline�project,�which�is�to�pass�through
Uttar�Pradesh,�Delhi,�Haryana�and�Punjab.
• OVL and IRP strike oil in Egypt
ONGC�Videsh�Ltd.�(OVL)�and�its�partner�IRP�Red�Sea�Inc.�have�made�a�second
oil�discovery�in�an�offshore�block�in�Egypt.�This�discovery�was�made�in�the�Gulf
of�Suez,�off�the�North�Ramadan�Concession.�The�block�struck�113�feet�of�oil
bearing�sands�and�was�drilled�to�a�depth�of�11,700�feet.�During�its�testing,�it
produced�800�barrels�per�day�of�oil�and�0.50�million�standard�cubic�feet�per�day
(mmscfd)�of�gas.
• EEPL buys two Australian oil blocks
Conglomerate�Essar�has�become�the�first�Indian�oil�company�to�enter�Australia
through�ESSAR�Exploration�&�Production�(EEPL).�EEPL�has�been�awarded�2
offshore�petroleum�exploration�block�permits�NT/P77�and�NT/P78�in�shallow
offshore�in�the�northern�territory�of�Australia.�These�blocks�are�placed�in�a
proven�petroliferous�basin�close�to�producing�oil�and�gas�fields.�Essar�was�the
sole�bidder�for�the�NT/P77�block,�located�in�the�Bonaparte�basin.
• SpiceGas to invest USD 80 million by 2015
Delhi-based�SpiceGas�has�plans�to�invest�approx.�USD�80�million�over�the�next
7�years.�The�company�plans�to�set�up�about�700�gas�stations�by�2015.�Funds
are�expected�in�the�form�of�internal�accrual�and�outside�investors�as�well.�The
company�is�looking�at�both�organic�and�inorganic�routes�for�growth.�It�is
expected�to�adopt�a�mixed�approach�with�20�percent�company-owned�stations
and�the�rest�through�the�franchisee�route.�In�the�first�year,�the�company�is
likely�to�introduce�about�40�stations�in�the�states�of�Gujarat,�Maharashtra,
Madhya�Pradesh,�Chhattisgarh�and�Andhra�Pradesh..
Page 10 of 16
Oil and Gas
Analyst: Suman Lala©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Source:�Petroleum�Planning�and�Analysis�Cell
Note:�Figures�for�2008-09�are�estimates
September International Prices of Indian
Basket Crude Oil
• Zydus Cadila acquires a research based subsidiary of Dutch
Biopharma Company
Zydus�Cadila,�a�leading�Indian�pharmaceutical�company�with�global�operations,has�acquired�Etna�Biotech,�a�wholly�owned�subsidiary�of�Crucell�N.V.,�a�Dutchbiopharma�company.�Etna�Biotech�is�mainly�involved�in�vaccine�related�researchand�development�and�is�the�first�ever�research-based�company�acquired�byZydus.�It�is�expected�to�provide�Zydus�with�a�research�platform�for�developingnew�vaccines�and�technology.�This�acquisition�is�also�expected�to�give�Zydus�anaccess�to�Etna’s�technologies�as�well�as�its�vaccine�pipeline�with�productsunder�different�stages�of�development.�Some�of�Etna’s�prominent�vaccineprograms�are�in�areas�of�Hepatitis�and�Malaria.�This�move�marks�Zydus’�entry�inthe�vaccine�research�space.
• ICON Central Laboratories, a division of ICON plc, Ireland has set
up a laboratory in India
ICON�plc,�a�company�that�offers�outsourced�development�services�topharmaceutical,�biotechnology�and�medical�device�industry,�has�set�up�a�fullservice�central�laboratory�in�India.�The�company�believes�that�India�has�become�ahub�for�global�clinical�trials.�ICON�also�offers�a�test�menu�that�does�not�require�theneed�to�export�samples�thereby�enabling�it�to�be�a�one-stop-shop�for�conductingcomplex�clinical�trials�in�India.�
ICON�Central�Laboratories�is�a�division�of�ICON�plc,�a�company�that�offers�fullservice,�global�central�laboratory�services�from�its�core�facilities�in�New�York,Dublin,�Singapore�and�India,�as�well�as�through�quality�affiliate�laboratories�in�Chinaand�Japan.
• Jubilant Organosys has acquired a Canadian web-based Electronic
Data Capture (EDC) solutions company
Jubilant�Organosys�Ltd.,�one�of�India’s�leading�Custom�Research�andManufacturing�Services�companies,�has�through�its�subsidiary�Clinsys�ClinicalResearch,�Inc.,�New�Jersey,�acquired�TrialStat�ClinicalAnalytics,�Canada�for�apurchase�consideration�of�USD�604,420.�TrialStat�CA�is�a�web-based�EDCsolutions�company�that�allows�all�aspects�of�a�study�to�be�configured,�deployedand�managed�through�a�browser�interface�resulting�in�quick�and�cost�effectivestudies.�This�acquisition�is�expected�to�enhance�Jubilant’s�integrated�solutionsto�include�web-based�EDC�services�as�well�as�enable�TrialStat�to�provide�abroad�range�of�services�to�its�contract�research�and�biopharmaceutical�clients.
• Astellas Pharma, Japan has set up a marketing subsidiary in India
Astellas�Pharma�Inc.,�a�Research�and�Development�(R&D)�driven�globalpharmaceutical�company�in�Japan,�has�set�up�its�subsidiary�in�India�-�AstellasPharma�India�Private�Limited.�The�subsidiary�would�mainly�be�involved�in�thedevelopment�of�sales�and�marketing�activities�of�its�in-house�productsspecifically�in�the�areas�of�immunology�and�urology.�With�this�move,�Astellas�isexpected�to�further�expand�its�reach�in�the�Asian�market.�Astellas�already�hasmarketing�subsidiaries�in�seven�areas�within�Asia-�across�China,�Korea,�Taiwan,Hong-Kong,�the�Philippines,�Thailand�and�Indonesia.
Page 11 of 16
Pharma
Analyst: Nandita Kudchadkar & Dhruti Parikh
©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"India has become a key region forglobal clinical trials, which hasgreatly boosted the demand forlocal laboratory testing within aglobal laboratory network”.Bob Scott-Edwards, President, ICON CentralLaboratories (Commenting on setting up of a fullservice laboratory in India)(Source: Company Press Release, 12 November, 2008)
http://www.iconclinical.com/index.asp?GetPress=TRUE&id=241&sid=4&ssid=0&sssid=0Rate for converting Canadian Dollars to USD - 0.80533/ 0.80589 (bid/ask)
• Coal linkages approved for 35,000 MW power projects
The�Standard�Linkage�Committee�of�central�government�has�approved�coallinkages�for�power�projects�with�a�combined�capacity�of�35,000�MW�that�areexpected�to�start�production�by�the�end�of�XIth�Plan.�With�this�approval�thetotal�coal�linkage�available�to�all�power�projects�under�XIth�plan�has�touched80,000�MW.�This�80,000�MW�worth�of�projects�with�allocated�coal�linkages�islikely�to�nearly�consume�400�million�tones�of�coal�every�year�under�100�percentcapacity�utilization�levels.
• TNEB enters into JV with BHEL to set up USD 1737 million power
plant
State�run�Bharat�Heavy�Electricals�Limited�(BHEL)�has�entered�into�anagreement�with�Tamil�Nadu�Electricity�Board�(TNEB)�to�set�up�2�x�800�MWthermal�power�plant�at�Udangudi�in�Tamil�Nadu�with�an�estimated�investmentof�USD�1737�million.�The�project�is�to�be�executed�through�Special�PurposeVehicle�(SPV)�known�as�Udangudi�Power�Corporation�Ltd.�Equipment�for�theproject�is�to�be�provided�by�BHEL�while�TNEB�is�to�run�and�execute�the�project.
• Solar module manufacturing facility in Nashik
PLG�Power�Ltd.�belonging�to�PLG�Group�is�planning�to�invest�USD�100�millionto�set-up�a�solar�module�manufacturing�facility�at�Sinnar�near�Nashik.�Theproposed�facility�is�to�be�100�percent�Export�Oriented�Unit�(EOU)�in�technicalcollaboration�with�Spire�Corporation�of�US.�In�the�first�phase,�the�companyplans�to�achieve�an�annual�turnover�of�USD�90�million�and�USD�200�million�bythe�end�of�the�second�phase.�The�company�already�signed�MoUs�and�long-termagreements�with�suppliers�and�buyers�worldwide�to�back�its�expansion�plans.
• Alstom sets up hydro power R&D center in Gujarat and forms JV
with Bharat Forge
Alstom,�the�French�equipment�manufacturer,�has�set�up�its�R&D�centre�for�thehydro�power�sector�in�Vadodra,�Gujarat.�The�centre�is�expected�to�enable�thecompany�to�develop�innovative�products�to�serve�Indian�hydro�market.�Thecompany�has�also�formed�a�JV�with�domestic�auto�component�manufacturer,Bharat�Forge�to�manufacture�super-critical�turbines�and�generator�sets�forthermal�power�plants�and�also�plans�to�supply�nuclear�power�generationequipment�in�the�future.
• Distribution network revival to cost CESC USD 400 million
RPG�group�owned�Calcutta�Electric�Supply�Company�(CESC)�plans�to�investUSD�400�million�over�next�5�years�to�revive�its�power�distribution�infrastructure.CESC�has�appointed�SP�Global�Solutions�as�consultants�for�the�proposedproject.�SP�Global�Solutions�plans�to�help�the�company�in�strategic�planning,technology�application�and�process�standardization�for�upgrading�thedistribution�network�within�the�567-km�licensed�area.�The�proposed�investmentis�likely�to�reduce�the�Transmission�&�Distribution�(T&D)�losses�of�the�company.�
Page 12 of 16
Power
Analyst: Rajiv Parekh©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Sectoral
Interventions
Potential
Energy
Savings
Likely Investments
by Private Sector
(USD million)*
Agriculture 60�b�KWh 2994
Municipalities 3.7�b�KWh 319
Buildings 3.52�b�KWh 240
Industry 98�b�KWh 4790
Lighting 70�b�KWh 798
Source:�National�DSM�Roadmap,�BEE*�1�USD�=�INR�50.1
Demand Side Interventions-Potential &
Oppurtunities
• Falcon to invest USD 60 million for group housing
Falcon�Realty�Services,�the�Gurgaon-based�real�estate�company,�is�planning�to
invest�about�USD�60�million�to�develop�a�group�housing�project�in�Haryana.�The
project�is�to�be�developed�on�a�35�acre�plot�and�is�expected�to�have�5000�flats
of�360�square�feet�each�and�would�be�sold�at�about�USD�11,000�each.�Through
this�project,�the�company�wants�to�enter�the�affordable�housing�segment.�The
project�is�expected�to�be�completed�by�the�first�quarter�of�2011.�The�company
plans�to�fund�the�project�by�investing�about�USD�20�million�from�its�internal
accruals�and�raising�USD�50�million�from�private�firms.
• Parsvnath forms JV with Constructora San Jose
Parsvnath�Developers�has�formed�a�50:50�JV�with�Constructora�San�Jose,�a
Spanish�infrastructure�company,�to�enter�the�infrastructure�space.�The�JV,�to�be
called�The�SanJose�—�Parsvnath�Consortium,�plans�to�bid�for�various
infrastructure�development�projects.�The�JV�has�qualified�for�submitting�a
financial�bid�for�construction�of�an�elevated�expressway�on�NH-4�and�the
contract�is�valued�at�USD�244�million.�The�JV�plans�to�bid�for�various
infrastructure�projects�in�the�transportation,�aviation,�power�generation�and
transmission�segments.
• Golden Gate to develop affordable housing
Golden�Gate,�the�Hyderabad-based�real�estate�company,�is�planning�to�develop
affordable�housing�township�near�Hyderabad�with�an�investment�of�about�USD
100�million.�The�township�will�have�3,500�units�of�2�and�3�bedrooms�with�area
of�990-1,490�square�feet�and�the�prices�are�expected�to�start�at�USD�40,000.
The�company�launched�its�first�such�project�in�Bangalore�and�plans�to�set�up
similar�projects�in�10�cities�in�the�south,�beginning�with�Chennai,�and�followed
by�Vizag,�Vijayawada,�Mysore,�Coimbatore,�Cochin�and�others.
• Vipul launches USD 80 million project
Vipul�Limited,�a�Gurgaon-based�real�estate�company,�has�launched�an
integrated�township�project�in�Ludhiana�with�an�investment�of�about�USD�80
million.�The�township�is�to�be�spread�over�an�area�of�109�acres�and�comprises
of�a�hotel,�plots,�lifestyle�villas,�premium�apartments,�commercial�complex,
shopping�arcade�and�a�clubhouse.�The�plots�are�to�be�priced�at�about�USD�260-
300�per�square�yard.�The�company�has�raised�debt�of�USD�20�million�from�LIC
Housing�Finance�and�has�also�tied�up�with�Solitaire�Capital�India,�real�estate
venture�fund,�which�would�invest�25�percent�of�the�total�amount�in�the�project.
The�company�also�plans�to�use�its�internal�accruals�and�other�sources�of�debt
to�fund�the�project.
• Barwa enters into a JV with Sun
Barwa�Real�Estate,�a�Qatar-based�real�estate�developer,�has�entered�into�a�JV
with�Sun�Group,�an�India-based�business�conglomerate,�to�invest�in�the�Indian
real�estate�market.�The�JV�is�to�be�called�Sun-Barwa�Land�and�would�raise
funds�from�investors�in�Qatari�and�Middle�East�to�acquire�and�develop�land
banks�in�high�growth�corridors�in�India.
Page 13 of 16
Real Estate and SEZs
Analyst: Nitin Dehadraya ©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
“Most of the real state companiesare now looking at addressing theaffordable housing market fromthe earlier focus on luxurysegment a couple of years ago.We believe this trend willindirectly propel the demand in aslowing sector.”K. Pratap, Managing Director-Golden GateProperties(Source: The Hindu, 15 November, 2008)
• Alternate network for defence to be completed by 2011
The�Department�of�Telecommunication�(DoT)�has�informed�the�defenceministry�that�an�additional�fibre�optic�network�is�being�laid�for�defence�forces,which�would�be�completed�by�2011�at�an�estimated�cost�of�USD�2�billion.�Thedefence�forces�currently�occupy�the�bulk�of�the�3G�spectrum�in�9�out�of�22circles.�The�defence�forces�would�vacate�the�existing�network�only�if�they�areprovided�with�an�alternate�network.
• Telecom equipment industry to cross USD 10 billion by fiscal end
According�to�Telecom�Equipment�Manufacturers�Association�(TEMA),�the�Indiantelecom�equipment�manufacturing�industry�is�expected�to�cross�USD�10�billionby�end�of�this�fiscal.�The�telecom�manufacturing�industry�has�been�recordingmore�than�100�percent�growth�rates�in�past�2�years�with�strong�growthrecorded�in�wireless�equipment�manufacturing�where�production�grew�fromUSD�2100�million�in�2006-07�to�USD�5700�million.�
• Tata Telecom to launch telepresence rooms in association with
Cisco
Tata�Communications�in�association�with�Cisco�will�provide�public�and�privateCisco�TelePresence�rooms�to�companies�globally.�Presently,�TataCommunications�has�launched�Cisco�Telepresence�rooms�for�public�use�in�theUS�and�UK�and�has�linked�them�with�public�rooms�in�Mumbai,�Bangalore�andChennai�in�India.�This�service�could�be�used�by�companies�and�individuals�forone-off�meetings.�
• MTNL launches 3G services
State�owned�MTNL�(Mahanagar�Telephone�Nigam�Limited)�is�the�first�Indiantelecom�operator�to�launch�3G�services.�The�service�is�initially�expected�to�belaunched�in�Delhi�and�then�it�would�be�extended�to�Mumbai.�Initially,�theservice�is�likely�to�be�offered�free-of-cost�to�MTNL’s�existing�customers.Besides�3G�services,�the�company�is�expected�to�offer�other�services�like�high-speed�internet,�audio�and�video,�and�streaming�as�well�as�live�televisionchannels�on�mobile�phones.�The�company�has�already�built�a�capacity�toservice�7,�50,000�customers�in�Delhi.�
Page 14 of 16
Telecom
Analyst: Mehul Desai©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
Source:�MVAS�in�India,�IAMAI�&�eTechnology
• Merrill Lynch acquires stake into Rajlaxmi’s new warehousing
project
Merrill�Lynch,�the�US-based�investment�bank,�has�picked�up�a�minority�equitystake�in�Hyderabad-based�logistics�provider�Shree�Rajlaxmi�group’s�upcomingwarehousing�development�project�for�an�undisclosed�amount.�The�project�islikely�to�be�a�high-quality�warehousing�development�that�offers�solutions�tocustomers�to�enhance�efficiency�in�their�distribution�channels.�Rajlaxmi�hasstrong�domain�knowledge�in�warehousing�and�execution�capabilities,�which�isexpected�to�enable�the�project�to�offer�space�well�suited�to�customerrequirements.��
• L&T has bagged Mumbai monorail project
A�consortium�of�Larsen�&�Toubro�(L&T)�and�Scomi�Engineering�of�Malaysia�hasbagged�an�USD�4.9�billion�order�from�the�Mumbai�Metropolitan�RegionDevelopment�Authority�(MMRDA)�to�design�and�build�the�first�monorail�systemin�India.�L&T,�being�the�lead�consortium�player�with�a�55�percent�share,�is�tohave�a�revenue�share�of�USD�2.8�billion.�The�above�developments�suggest�thatthe�project,�though�prestigious,�may�carry�a�few�challenges�to�the�L&T-ledconsortium,�in�terms�of�deadlines�as�well�as�standards.�As�part�of�its�newinitiatives,�L&T�had�come�up�with�a�dedicated�Railway�Business�Unit�to�tapemerging�opportunities�in�the�rail�sector.
• DHL Express maintains India investment with USD 25 million
facility
DHL�Express�is�continuing�to�invest�in�India�with�the�opening�of�a�USD�25million�Bangalore�air�terminal�and�plans�further�facilities.�The�express�operatorand�its�domestic�air�unit�Blue�Dart�Aviation�have�inaugurated�an�integrated�airterminal�at�Bangalore�International�Airport�to�strengthen�their�network�insouthern�India.�The�220,000�sq�ft�(20,440�sq�m)�is�expected�to�provide�fasterclearance�and�seamless�handling�of�inbound�and�outbound�international�anddomestic�shipments,�with�throughput�times�cut�by�60�minutes.�
The�company�has�already�won�design�and�build�contracts�from�the�Delhi�MetroRail�Corporation.
• GPPL to invest USD 52million in Pipavav Port
GPPL�(Gujarat�Pipavav�Port�Limited),�is�likely�to�invest�an�additional�USD�todredge�14.5�metre�draft�and�further�improve�accessibility�to�the�port.�GPPL�hasentered�into�a�contract�with�Zinkcon�Marine�(Singapore)�Pte.�Ltd.,�a�subsidiaryof�Royal�Boskalis�Westminster�to�undertake�capital�dredging�to�increase�theacceptance�draught�from�12.5m�to�14.5m.�It�is�scheduled�to�be�completed�bymid-2009.�Pipavav�offers�a�safe�port�for�even�larger�container�vessels�thatcannot�anchor�at�major�ports�in�India.�The�port�has�road�and�rail�connectivityand�the�rail�freight�costs�from�on-dock�facility�to�the�north�Indian�inlandcontainer�depots�(ICDs)�are�lower�and�the�current�maximum�capacity�of�the�raillink�is�22�trains�per�day�in�each�direction.
Page 15 of 16
Transport and Logistics
Analyst: Ashish Punjabi©�2008�KPMG,�an�Indian�partnership�and�a�member�firm�of�the�KPMG�network�of�independent�member�firmsaffiliated�with�KPMG�International,�a�Swiss�cooperative.�All�rights�reserved.
"Indian warehousing sector hasemerged as an attractive sector ofinvestment for private equity. Thesector offers significant growthopportunities, but currently therearen’t too many investors in thisspace”.Timothy Grady, Managing director and Head ofcommercial real estate, Merrill Lynch AsiaPacific.(Source: The Economic Times, 14 November, 2008)
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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
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Research Inputs by KPMG’s India Research Center
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