Key Macroeconomic Highlights of FY15. GDP: Growth (%) FY14 FY15 FY16 (E) -2. India's exports & imports (US$ bn) 0.0 FY16*

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1 Idustry cursor CONTENTS Strictly for Private Circulatio Issue 92 April 216 Macroecoomic Update Auto Compoets Bakig Commercial Vehicle Gems & Jewellery Healthcare & Pharmaceutical Hi-Tech Hospitality IT-Hardware Logistics & Supply Chai Passeger Vehicle Retail Steel MACROECONOMIC UPDATE Key Macroecoomic Highlights of Real Gross Value Added (GVA) at basic prices grew at a average rate of 7.3% durig Apr-Dec as compared to 7.% durig Apr-Dec. The agriculture, idustry ad services sectors grew by.6%, 7.% ad 9.2% respectively durig Apr-Dec as agaist.3%, 5.9% ad 1.7% respectively durig Apr-Dec. The Private Fial Cosumptio Expediture (PFCE) grew by 6.1% durig Apr-Dec, while Govermet Fial Cosumptio Expediture grew by mere 3.3% durig Apr-Dec. Durig Apr-Feb, the Idex of Idustrial Productio (IIP) registered a growth of 2.6% (y-o-y) agaist 2.8% (y-o-y) i the correspodig period of the previous fiscal. The miig ad maufacturig sectors grew by 2.% ad 2.3% respectively durig Apr-Feb, while growth i electricity sector witessed sigificat moderatio to 5.1% durig Apr-Feb as agaist 9.1% durig Apr-Feb. Durig, combied CPI iflatio moderated to.9% as compared to 6.% i. Durig, WPI reported a declie of 2.5% as agaist a growth of 2.% durig. Growth i bak credit revived to 11.3% (y-o-y) as o Mar 18, 216 as agaist 9.% (y-o-y) durig the correspodig period of the previous fiscal. Idia's exports declied by 16.7% durig Apr-Feb, while imports declied by 1.7% durig Apr-Feb leadig to a trade deficit of US$ 113. billio durig Apr-Feb as agaist a trade deficit of US$ billio durig Apr-Feb. The curret accout deficit arrowed to US$ 22 billio (1.% of GDP) durig Apr-Dec as agaist US$ 26.2 billio (1.7% of GDP) durig Apr-Dec. Textile & Garmet 1 GDP: Growth (%) IIP ad core ifrastructure: Growth (%) Two ad Three-Wheeler (E) -2 Agriculture Idustry Services Gross value added at basic prices FY8 FY9 FY1 Eight core idustries IIP * E: D&B estimate Source: CSO *Upto Feb-16 Source: Miistry of Commerce & Idustry, CSO Idia's exports & imports (US$ b) Macroecoomic triad (estimate) Iflatio -2.5% % FY8 FY9 FY1 * Exchage rate 66.3 Iterest rate 6.9% Exports (LHS) Imports (RHS) *Up to Feb-16; Source: Miistry of Commerce ad Idustry Note: Exchage rate: INR/US$ at moth ed Iterest rate correspods to yield o T-Bills days Source: D&B Idustry Research Service

2 AUTO COMPONENTS INDUSTRY Steel prices (Mumbai) (`/toe) 6, 5,, 3, 2, 1, FY7 FY8 FY9 FY1 Rubber prices* (Kottayam) (`/quital) 25, 2, 15, Key Highlights of Nipma Fasteers Idustries etered ito a techical tie-up with South Korea's IL-Ryug Co to maufacture steerig compoets ad subassemblies at a ivestmet of about US$ 35 millio. Hitachi Automotive Systems Idia, part of the Hitachi Group, set up a auto parts maufacturig facility with a ivestmet of ` 3.13 billio to cater to domestic ad overseas markets. Tata AutoComp GY Batteries, a JV betwee Tata AutoComp Systems ad GS YUASA Iteratioal of Japa, iaugurated a maufacturig facility for valve regulated lead-acid batteries, at Rajagao ear Pue. Itegral Compoet Maufacturers Pvt Ltd etered ito a JV with Japa-based Nishuira Seiko Co Ltd to cater to Japaese cliets i Idia ad abroad. Apollo Tyres opeed first braded retail outlet 'Apollo Zoe' i Lebao, takig the total braded retail outlet i the West Asia regio to three after Dubai ad Kuwait. The compay also forayed ito two wheeler tyre segmet with the lauch of Apollo Acti series for bikes ad scooters. Mahidra & Mahidra Ltd etered ito a agreemet to sell its etire 71.19% stake i Swaraj Automotives Ltd, a maufacturer of seats ad seat mechaisms, to bs Solutios for ` 28. millio. Tyre maufacturer Ceat made a foray ito the tubeless tyre segmet for scooters with the lauch of Milaze tubeless tyres i the coutry. ZF Hero Chassis Systems, a 5:5 JV betwee ZF Idia ad Hero Motors opeed its ew plat i Oragadam, Cheai to assemble frot ad rear chassis systems for BMW cars. Major Expasio Aoucemets durig 1, 5, FY7 FY8 FY9 FY1 *Rss- US-based Vehicle Access Systems Techology acquired 5% stake i Mida Corporatios' veture maufacturig vehicle keys ad access systems. Apollo Tyres acquired Reifecom GmbH, oe of the largest tyre distributors i Germay, for Euros 5.6 millio (` 3.2 billio). As part of its strategy to veture ito commercial heat treatmet, surface coatig ad metallurgical services, Kalyai Group, through its arm Kalyai Techoforge acquired the Idia operatios of Bodycote, a player i thermal processig services. Elgi Rubber Co Ltd acquired US retreadig equipmet maufacturer America Equipmet Maufacturig Ic. Cotietal acquired 1% stake i Emitec Emissio Cotrol Techologies. Amtek Auto Ltd acquired the Iro & Alumiium Castig, Forgig ad Machiig busiess of Asahi Tec Corporatio. The compay also acquired Volvo Cars' auto compoet plat i Floby, Swede. LyodellBasell etered ito a defiitive agreemet for acquirig polypropylee compouds (PPC) maufacturer, SJS Plastibleds Pvt Ltd. Sigapore-based PE firm Everstoe Capital acquired over 51% i domestic auto compoets maker SJS Eterprises for ` 3.5 billio. Pricol Ltd sold its 1% shareholdig of its wholly owed subsidiary compay, Coimbatore Metal Works Ltd for ` 13 Millio. Rae (Madras) Ltd's wholly owed subsidiary Rae (Madras) Iteratioal Holdigs B V (WOS) i Netherlads etered ito share purchase agreemet with US-based PDC Holdigs Ic to acquire Precisio Die Castig Ic with a ivestmet of US$ two millio. Heatig, vetilatio ad air coditioig systems maker Lloyd Electric ad Egieerig acquired Noske-Kaeser's rail ad vehicles busiess i Germay, New Zealad, Australia, Brazil ad the US for Euros 2.3 millio.

3 BANKING INDUSTRY Deposits, credit ad growth rates ` b 1, 9, 8, 7, 6, 5,, 3, 2, 1, Deposits (LHS) Credit (LHS) y-o-y growth rates of deposits (RHS) y-o-y growth rates of credit (RHS) Note: Data for Mar-16 is as o Mar 18, 216 Movemet i call moey rates (%) Apr-15 May-15 Ju-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Ja-16 Call moey rate- High (%) Call moey rate- Low (%) Feb-16 Note: Call rates for Apr-16 are up to Apr 13, 216 Source for all above charts: RBI Mar-16 % Apr-16 Key Highlights of Iterest rates of Small Savig Schemes recalibrated w.e.f. Apr 1, 216 o a quarterly basis to alig the small savig iterest rates with the market rates of the relevat govermet securities. The Regioal Rural Baks (RRB) Amedmet Bill was passed by the Parliamet. The Bill seeks to help RRBs to raise their authorised capital ad eables them to raise fuds from the capital market. The Uio Budget FY17 provided ` 25 billio towards recapitalisatio of public sector baks. The Uio Cabiet approved 1% foreig direct ivestmet uder the automatic route for white label ATMs to promote fiacial iclusio ad ease ad expedite foreig ivestmet iflows. Key RBI Aoucemets i The RBI reduced repo rate twice by total 75 basis poits durig to 6.75% as at ed of the fiscal. The RBI released guidelies (effective from Apr 1, 216) o computig iterest rates o advaces based o the margial cost of fuds (MCLR). The RBI issued ew orms for Strategic Debt Coversio (SDR) which gave leders the right to covert their outstadig loas ito a majority equity stake if the borrower fails to meet coditios stipulated uder the restructurig package. It also allowed baks to acquire 51% or more stake i compaies, where debt restructurig has failed to revive them withi a stipulated timeframe. Measures were aouced to further ope debt ad currecy markets which iclude upward revisio of the preset US$ 3 billio ceilig for foreig ivestmets i govermet bods by ` 1.2 trillio by March 218 i stages, ad allowig overseas fuds to purchase debt issued by Idia states. The RBI wideed the pool of iteratioal ivestors eligible to led to Idia compaies ad also eased repaymet optios. The RBI aouced two measures that would eable higher remittaces ad also ease the process of raisig fuds through exteral commercial borrowigs (ECB). The limit o trade-liked remittaces trebled to ` 15 lakh from the earlier ` five lakh, ad baks ca ow regularize paymets exceedig the limit if they are satisfied with the boafide of the trasactio. The RBI also allowed overseas baks to eter ito swaps with other overseas baks besides domestic baks to facilitate disbursals of rupee loas by overseas leders. The target for direct ledig to small ad margial farmers uder the orms was icreased to 7% for ad to 8% for FY17. The RBI grated i-priciple od to 11 applicats icludig Aditya Birla Nuvo, Airtel M Commerce Services, Departmet of Posts, Fio PayTech, Natioal Securities Depository Ltd, Reliace Idustries, Tech Mahidra ad Vodafoe m-pesa to set up paymets baks. Te microfiace ad small fiace compaies received 'i-priciple' od from the RBI to start small fiaces baks across the coutry. These iclude Au Fiaciers, Capital Local Area Bak, Disha Microfi, Equitas Holdigs, ESAF Microfiace ad Ivestmets, Jaalakshmi Fiacial Services, RGVN (Northeast) Microfiace, Suryoday Micro Fiace, Ujjiva Fiacial Services ad Utkarsh Micro Fiace. The RBI desigated State Bak of Idia (SBI) ad ICICI Bak as domestic systemically importat baks requirig them to keep aside additioal capital to cover risk. The RBI permitted promoters, or ivestors to ow more tha 1% stake i a private bak if the applicat meets certai coditios icludig if 'it is i public iterest' ad i the 'desirability of diversified owership'.

4 Tred i domestic CV sales ' % FY7 FY8 FY9 FY1 Sales (LHS) Tred i domestic Passeger Carriers sales Chage (RHS) ' % FY7 FY8 FY9 FY1 Tred i domestic Goods Carriers sales FY Segmetal tred i CV exports (Nos) Sales (LHS) Chage (RHS) ` % FY8 FY7 FY9 Sales (LHS) FY8 FY1 FY9 FY1 Passeger carriers Chage (RHS) Goods carriers COMMERCIAL VEHICLE INDUSTRY Key Highlights of saw a 12.2% growth i domestic sales of commercial vehicles after witessig a declie of 1.1% i. Exports of CVs, recorded growth of 16.9% i as agaist 12.8% i. The Supreme Court hiked the gree cess o commercial vehicles by 1%. Japaese auto major Isuzu siged a Memoradum of Uderstadig with the Adhra Pradesh Govermet to facilitate ivestmet by its suppliers i the state uder the Automobile ad Auto Compoet Policy Seve auto compoet compaies omiated by Isuzu Motors Idia also siged MoUs with the state govermet. Germa auto major Daimler iaugurated its ew bus maufacturig facility at Oragadam, ear Cheai with a maufacturig capacity of 1,5 uits. Tata Motors lauched a small commercial vehicle, Tata ACE Mega. The compay also lauched its ext geeratio rage of 'Ultra' commercial vehicles i Bagladesh i partership with Nitol Motors Ltd. Tata Motors received a order for the supply of 1,2 uits of high-mobility multiaxle trucks from the Idia Army. Mahidra & Mahidra Ltd (M&M) aouced settig up of a ew start-up veture called Trrigo, the first ever orgaised retal service for the sector. With a iitial ivestmet upwards of ` 1 millio by M&M, the startup is hopeful of establishig a presece i five states (Maharashtra, Gujarat, MP, Karataka ad Rajastha) by ed of Aug-16. The compay also plas to ivest ` 8 billio i its automotive plats i Maharashtra over a period of seve years for ifrastructure developmet, product developmet ad capacity expasio. Mahidra & Mahidra Ltd lauched several variats of its light commercial vehicle Jeeto rage. Jeeto is the first product i its category with a modular rage of eight mii trucks caterig to the varied eeds of the sub-oe toe segmet. Decca Auto Ltd set up a bus maufacturig plat with a capacity to produce 3, buses i Telagaa. The plat is set up with a ivestmet of ` 2.5 billio ad will serve both domestic ad export markets i Asia ad Africa. Volvo Group lauched its customer fiacig arm Volvo Fiacial Services i Idia offerig loas, leases, isurace, maiteace, ad other aftermarket services, to customers ad dealers of the Volvo Group ad VE Commercial Vehicles Ltd. Eicher Trucks ad Buses, part of the Volvo Eicher Commercial Vehicles lauched Eicher Live - a advaced telematics solutio for the commercial vehicle idustry. Eicher Live provides real time dashboard data aalytics of the fleet, trackig fuel maagemet ad fault idetificatio. Volvo Buses Idia merged with Volvo Idia Pvt Ltd. I aother developmet, Volvo Buses partered with the Navi Mumbai Muicipal Trasport to itroduce hybrid buses i the coutry uder a pilot project which will commece i the first half of 216. Chia-based, Foto Motor received all liceses icludig evirometal clearace for settig up ` 1.7 billio plat ear Pue to maufacture a rage of vehicles icludig SUVs, vas ad trucks. Ashok Leylad expaded its desig ad service traiig cetre at its Ras Al Khaimah (RAK) maufacturig facility i UAE. Daimler Trucks Asia lauched DICV-made FUSO trucks i South Africa, makig it oe of the largest market for exports from Idia. Ashok Leylad bagged a order for 68 vehicles ad spare parts i Jauary 216 worth US$ 5 millio from the Miistry of Local Govermet, Public Works ad Natioal Housig, Govermet of Republic of Zimbabwe. The state of Himachal Pradesh plas to itroduce iter-state electric buses for which Cetral Govermet has sactioed ` 35 millio. The Delhi govermet decided to ru 1, ew air-coditioed low-floor buses o public-private partership (PPP) model i the atioal capital.

5 GEMS AND JEWELLERY INDUSTRY Gold prices i Mumbai market `/1 gm % 35, 3, 25, 2, 15, 1, 5, Price (LHS) Chage (RHS) Gems & Jewellery Exports & Imports (` b) FY7 FY9 *Up to Feb-16 FY8 FY1 FY9 FY1 Exports Imports Gems & Jewellery: Ivestmet sceario* (` b) * Key Highlights of Gems ad jewellery exports declied by 12.% (y-o-y) to US$ 29. billio durig Apr-Feb due to slowdow i global demad, while imports declied by 23.% (y-o-y) to US$ 21.7 billio durig Apr-Feb. The Gem & Jewellery Export Promotio Coucil (GJEPC) ad Bharat Diamod Bourse (BDB) lauched the 'Idia Diamod Tradig Cetre' (IDTC) i Mumbai, markig a sigificat milestoe i 'Make i Idia' campaig to promote Idia as a global diamod - tradig hub. The IDTC special otified zoe is spread across, sqft at the Bharat Diamod Bourse (BDB), with ie fully equipped viewig rooms as per iteratioal stadards, a strog room, a coferece room, ad state-of-the-art security systems. Idia Bullio Jewellery Associatio Ltd (IBJA) aouced the lauch of 'World Silver Coucil' that will help i edig ambiguity ad malpractices i tradig by followig a bechmark stadard for the precious metal, thus beefitig cosumers. The coutry's first B2B portal for the gems ad jewellery idustry, myheera.com was lauched i New Delhi, with a aim to provide complete busiess solutios to idustry players o a sigle olie platform. Major Policy Aoucemets durig The Cabiet approved gold bod ad gold moetisatio schemes. The gold bod scheme has bee proposed to develop a fiacial asset as a alterative to gold ad decrease demad of gold i physical form. The gold moetisatio scheme has bee proposed to attract idividuals ad other etities that hold physical gold by offerig iterest o deposit of gold. The gold deposited with the agecies will be loaed to jewellers, which is expected to brig dow import demad from the jewellery maufacturig sector. The RBI made amedmets i the 'Gold Moetisatio Scheme', accordig to which depositors will be allowed to withdraw medium term ad log term govermet deposits pre-maturely after the miimum lock-i period, though with a pealty. I the case of large teders of gold, the metal ca be deposited directly with refiers wherever they have the assayig capacity. The Govermet of Maharashtra aouced its decisio to set up a jewellery ad kowledge smart city i the state to promote the growth of the gems ad jewellery sector. Major Mergers & Acquisitios durig Mar-6 Mar-7 Mar-8 Mar-9 Mar-1 Mar-11 Mar-12 Mar-13 Mar-1 Mar-15 Mar-16 Note: * Outstadig ivestmets as of March every year The Board of Directors of Rajesh Exports accorded approval to form a subsidiary i Europe to sell jewellery i Europe. The Board also approved acquisitio deals of US$ 25-5 millio i Europe to ehace the domestic ad global presece of the compay i gold busiess ad to stregthe its backward itegratio. Rajesh Exports acquired Valcambi for US$ millio i a all-cash deal. The compay purchased the stakes of Newmot Miig Corporatio ad a group of global ivestors to ow 1% equity i Valcambi. PC Jewellers acquired bridal jewellery brad Azva from World Gold Coucil. Tara Jewels siged a exclusive maufacturig ad supply agreemet with Sterlig Jewelers Ic (USA) for the desiger brad Agel Sachez. Diamods Direct ad Blackstoe aouced that fuds maaged by Blackstoe Tactical Opportuities have acquired Diamods Direct, a leadig US idepedet jewellery compay. LVMH aouced to take a miority stake i the Italia Jeweller Repossi to support its growth pla. De Beers Cosolidated Mies siged a agreemet to sell Kimberley Mies (icludig the tailigs mieral resources) to Ekapa Mierals (Pty) Limited - a ivestor cosortium. The cosortium comprises Ekapa Miig (Pty) with a share of 5.1% ad Petra Diamods Limited with a share of 9.9%.

6 Tred i Drugs ad Pharmaceuticals export *Upto Feb-16 Tred i Drugs ad Pharmaceuticals import ` b *Upto Feb-16 Drugs & Pharma: Ivestmet sceario* (` b) ` b FY7 FY7 Mar-7 FY8 FY8 Mar-8 FY9 Value (LHS) FY9 Value (LHS) Mar-9 FY1 FY1 Mar-1 Mar-11 Mar-12 Chage (RHS) Chage (RHS) Mar-13 Mar-1 *Outstadig ivestmets as of March every year * Mar-15 % * % Mar HEALTHCARE & PHARMACEUTICAL INDUSTRY Key Highlights of The pharmaceuticals sector cotiued its growth mometum o accout of icreasig peetratio of healthcare services, ad higher healthcare spedig by private ad public players. Foreig ivestmets ito the pharmaceuticals idustry slowed dow i (Apr- Dec) to US$ 352 millio, as compared with US$ 1,216 millio i (Apr-Dec). Exports of drugs were markedly higher, postig a 9.9% year-o-year gai i (up to Feb) at US$ 15. billio compared with early US$ 1. billio i the correspodig period a year ago. A spate of mergers ad acquisitios were aouced durig, with the most promiet oes beig betwee Su Pharma ad Rabaxy, Lupi ad Gavis, Cipla ad IvaGe, Cipla ad Exela. A draft atioal medical device policy was issued i. The policy, which proposes a ew regulatory body, the Natioal Medical Device Authority of Idia, as the apex body for the devices idustry, aims to stregthe the 'Make i Idia' iitiative ad reduce depedece o imports. Major Policy Aoucemets durig The govermet took a host of measures to brig fair practices ito play i the sector. The Natioal Pharmaceutical Pricig Authority, which moitors prices of medicies i the coutry, sought chages to the existig Drug Price Cotrol Order, 213 ad proposed a fie o those violatig pricig orms. A seve-member pael Drugs Cosultative Committee was formed to look ito the issue of olie sales of drugs. Maufacture ad sale of over 3 drug combiatios sold without approval from the Cetral Govermet was baed. The atioal list of essetial medicies was revised to add 16 more drugs while 7 other drugs, which are ot prescribed frequetly or where better alteratives are available i the market, were take off the list. Plas to set up ` 5 crore pharma techology upgradatio fud to facilitate cheaper loas to compaies lookig to upgrade their maufacturig facilities. The cetre also aims to set up a 1-acre pharma park i Karataka i a bid to boost the idustry. Customs duty exemptio o three drugs maily used for treatmet of hormoal disorders, growth failure, ad haemophilia, was retaied. Major Aoucemets durig Global pharma firm Myla received govermet approval to ivest US$ 75 millio i its Idia arm to help it to acquire Jai Pharma Ltd. Switzerlad-based Ferrig Pharmaceuticals proposed to ivest US$ 1 - US$ 25 millio for settig up a facility i the upcomig Pharma City o the outskirts of Hyderabad. Apollo Hospitals Eterprise aims to add 1,37 beds at six locatios with a estimated cost of `15.5 billio by Idoco Remedies plas a ivestmet of `1.25 billio for expasio of its sterile ophthalmic facility at Goa ad for settig up a gree field API facility at Patalgaga. Kyowa, a wholly-owed subsidiary of Lupi, plas to istall a maufacturig uit at Tattori i Japa, i lie with the compay's expasio plas i the coutry. Makid Pharma etered ito the US market with a ivestmet of ` three billio to set up a maufacturig plat i New Jersey. Strad Life Scieces acquired 68% stake i a US-based diagostic firm Veaxis. Piramal Eterprises acquired five brads from Orgao Idia Pvt Ltd ad MSD BV for ` 92 millio to beef up its offerigs i the over-the-couter (OTC) healthcare segmet.

7 Civil aviatio: Cargo statistics (mail toe km i m) * Up to Feb Civil aviatio: Load factor (%) Mail toe km (LHS) * % growth (RHS) % 3% 2% 1% % -1% -2% -3% -% HI-TECH INDUSTRY Key Highlights of Durig (up to Dec), the electroics sector received FDI equity iflows of aroud US$ millio. Govermet grated i-priciple approval for buildig 15 greefield airports to hadle the icreasig air traffic i the coutry. This icludes Mopa i Goa, Navi Mumbai, Shirdi ad Sidhudurg i Maharashtra, Bijapur, Gulbarga, Hasa ad Shimoga i Karataka. Taiwa Electrical ad Electroic Maufacturers' Associatio siged a MoU with the Govermet of Karataka's KIADB to set up US$ 5 millio Taiwa Electroic Maufacturig Cluster ear Begaluru. Uited Techologies siged a MoU with the Govermet of Haryaa to set up a eight-acre uit i Gurgao to maufacture air-coditioers, creatig 2, jobs i the process. Etihad Airways ivested early ` 2 billio i Jet Airways. Turbo Megha Airways received flyig permit or air operatio permit from the Directorate Geeral of Civil Aviatio. Haier siged a memoradum of uderstadig with the Maharashtra Govermet to ivest ` 3.7 billio i its Pue plat to scale up operatios. Godrej & Boyce Maufacturig Compay etered ito a techology licese agreemet with Sure Chill Compay, a UK based compay for maufacturig ad marketig of medical refrigerators i Idia. Crompto Greaves sold its 5% holdig i JV, CG Lucy Switchgear, to its parter W Lucy & Compay for `.2 millio. Hitachi acquired 1% stake i its subsidiary Hitachi Hi-Rel Power Electroics Pvt Ltd that maufactures ad sells power electroics products i Idia * Passeger load factor Weight load factor * Up to Feb-16 Major Policy Aoucemets durig The Govermet of Idia set up a fud of ` 1 billio to boost electroic maufacturig, to promote iovatio, research ad product developmet i electroics, ao electroics ad IT. Haryaa State Idustrial & Ifrastructure Developmet Corporatio siged MoU with Jaia Mobiles Idustries for settig up of a electroics cluster i Idustrial Model Towship Soha, district Mewat, Haryaa. The govermet of Maharashtra approved a ew electroics policy which aims to create oe lakh jobs over the ext five years ad attract ivestmets of U$ three billio. The Govermet of Idia approved the proposal of settig up Electroic Maufacturig Cluster (EMC) i Chhattisgarh's upcomig capital Naya Raipur. The govermet baed the sale of etry-level oe-star ACs i the Idia market ad itroduced improved eergy efficiecy guidelies for frost-free refrigerators. Civil aviatio: Airport traffic statistics (*) Parameters Aircraft traffic Passeger traffic Cargo traffic Nos. y-o-y growth (%) Nos. y-o-y growth (%) Toes y-o-y growth (%) Domestic traffic 1, , Iteratioal traffic , ,52 7. Total airport traffic 1, , , *Upto Feb Source: CMIE

8 HOSPITALITY INDUSTRY Foreig tourist arrivals i Idia (' os.) ' % 9, 2 8, 7, 6, 5,, 3, 2, 1, FY7 *Up to Feb-16 Source: CMIE Foreig exchage earigs US$ b *Up to Feb-16 Source: CMIE Earigs (LHS) Chage (RHS) FDI equity iflows i hotels & tourism sector (US$ m) 1, 9, 8, 7, 6, 5,, 3, 2, 1, FY7 FY8 FY8 3,259 FY9 * Apr-Dec ** Apr- to Dec-15 Source: DIPP FY1 No. of tourists (LHS) FY9 FY1 86 Chage (RHS) * * % * Cumulative** Key Highlights of Major Aoucemets durig Major Expasios durig Growth i foreig tourist arrivals moderated to 5.7% (y-o-y) i (up to Feb- 16) as compared to 9.3% (y-o-y) i the correspodig period of. Foreig tourist arrivals i Idia stood at 7. millio durig Apr-Feb Fy16. Outstadig ivestmet projects i the hotels & tourism sector stood at ` 1, billio i (up to Dec-15) compared with ` 1,128. billio i (up to Dec-1). The 'Tourist Visa o Arrival-Electroic Travel Authorizatio (TVoA-ETA) scheme' was reamed as 'e-tourist Visa' (etv) i a bid to avoid icoveiece to tourists who, misled by the scheme's ame, presumed visa would be grated upo arrival i Idia. The Govermet of Idia idetified five ITDC-ru hotels for privatisatio as part of its pla to disivest eight such loss-makig properties. The properties i which the stake to be offloaded were Hotel Japath, Hotel Patliputra Ashok; Hotel Bharatpur Ashok ad property at Kosi; Hotel Doyi Polo Ashok ad Hotel Podicherry Ashok. Kolkata-based Mai Group siged a MoU with the tourist departmet of the govermet of Rajastha to set up a orgaic resort i Nagaur, at a ivestmet of US$ 1.1 billio. Thomas Cook acquired Swiss tour operator Kuoi Group's busiess i Idia ad Hog Kog for aroud ` 5.35 billio. I aother developmet, Thomas Cook (Idia) Ltd etered ito a strategic partership with OYO Rooms offerig access to over 3,2 hotels, spread across over 1 cities pa Idia. SAMHI Hotels acquired a five-star hotel from Ahmedabad-based Sidhi Gujarat Hospitality for a estimated ` 1.35 billio. The compay also acquired Hyatt Regecy i Pue from RK Jatia Group-owed Ascet Hotels for a estimated ` 3.5 billio. Hello Curry, a Hyderabad-based Idia fast food chai, acquired food delivery start-up Paratha Post. R&A Foods, which operates the Paiaro ad Proto brads, acquired quick service restaurat chai Pico Express i a all-stock deal. Begaluru-based MRG Hospitality ad Ifrastructure acquired the four-star busiess hotel Aura Grade i Mumbai for ` oe billio. Mirah Hospitality aquired a 3% stake i Gritty Foods LLP-owed brad Hoppig Chef. IterCotietal Hotels Group siged a maagemet pact with Adyar Gate Hotels for IterCotietal Cheai Mahabalipuram Resort, to joi IterCotietal Marie Drive as the secod hotel uder its luxury brad i Idia. Mexica-style quick service restaurat chai Taco Bell aouced its expasio ito New Delhi through a tie-up with Burma Hospitality Pvt Ltd, its first frachisee parter i Idia. Malaysia restaurat chai Mahatta Fish Market lauched its first outlet i Idia i Cheai. Swosti Group aouced the lauch of a luxury resort at Chilika lake i Odisha at a ivestmet of over `.8 billio. The Hiduja Group took acquisitio of the heritage buildig, Old War Office i Lodo, from the British Miistry of Defece. The compay plas to restore ad redevelop the 1,1-room structure ito a five-star hotel ad residetial apartmet. Paytm partered with RoomsToite to offer last miute hotel bookigs.

9 IT HARDWARE INDUSTRY Domestic computer hardware & peripheral productio (` b) *Up to Ja-16 Source: CMIE * Key Highlights of Domestic computer hardware ad peripheral productio remaied relatively stagat (-.1%) i (upto Ja 16). Productio of persoal computers rebouded to 5.1% durig Apr-Ja as compared to a sharp declie of.1% i the correspodig period a year ago. However, productio of computer peripherals slid 1.7% durig Apr-Ja, castig a shadow over the overall productio figures. Durig (up to Dec 15), FDI equity iflows ito the computer software ad hardware idustry icreased to US$ 5,36 millio. Hewlett-Packard split ito two compaies effective November 1, HP Ic. cosistig of persoal computers ad priters; ad Hewlett Packard Eterprise (HPE), dealig i servers, data storage, etworkig ad cosultig services. Foxco siged a US$ five billio pact with the Maharashtra State Govermet to set up uits i Maharashtra ad maufacture Iphoes, IPads, Laptops ad silico chips. Itel Idia siged a agreemet with Telagaa govermet to develop a electroics compoet maufacturig ecosystem i the state. Key Policy Aoucemets durig The Uio Budget aouced withdrawal of exemptio from basic customs duty, coutervailig duty ad special additioal duty o certai parts, compoets ad accessories i the maufacture of persoal computers, laptops, mobile phoes ad tablets, ad their sub-parts. The Budget retaied excise duty of 2% without CENVAT credit or 12.5% with CENVAT credit o tablet computers. Excise duty has bee exempted o iputs, parts ad compoets, subparts for maufacture of charger/adapter, battery ad wired headsets/speakers of mobile phoe, subject to actual user coditio. Major Acquisitios ad Joit Vetures durig HCL Techologies acquired US-based CRM services provider, PowerObjects for US$ 6 millio. I a separate move, HCL Techologies iked a deal with Swedish auto major Volvo to take over its exteral IT busiess for US$ 138 millio. Japaese priter firm Koica Miolta, through its sales subsidiary Koica Miolta Busiess Solutios Idia, acquired the productio pritig busiess of Mootech Systems, which was the compay's distributor i Idia. IBM Idia etered ito a seve-year strategic relatioship with BTI Paymets Pvt Ltd, to trasform its IT ifrastructure. FIH Mobile Ltd, a subsidiary of Foxco Techology Group made a ivestmet to acquire a 1% stake i MoMagic techologies to further stregthe FIH's busiess presece i Idia. Optiemus Ifracom Ltd ad Wistro Corporatio etered ito a joit veture agreemet to set up maufacturig facilities for telecom products i Idia. Times Iteret ivested US$ 15 millio to acquire a majority stake i Taskbucks, a mobile-oly tasks marketplace that matches cosumers with brads ad eterprises o its uique platform. Qualcomm Icorporated ad Leovo Group etered ito a ew 3G ad G patet licese agreemet for Chia, which covers devices marketed by both Motorola ad Leovo. Uder the terms of the agreemet, Qualcomm grated Leovo a royalty-bearig patet licese to develop, maufacture ad sell 3Gad G, icludig 3-mode complete devices. Competitio Commissio of Idia gave its od to the US$ 37 billio acquisitio of Broadcom Corporatio by Avago Techologies Ltd.

10 Ivestmet sceario: Logistics* (` b) Mar-6 Mar-7 Mar-8 Mar-9 Mar-1 Mar-11 Mar-12 Mar-13 Mar-1 *Trasport logistics services; Outstadig ivestmets as of March each year Source: CMIE Mar-15 Mar-16 LOGISTICS & SUPPLY CHAIN INDUSTRY Key Highlights of The Natioal Waterways Bill, 215, was passed by the Parliamet. Uder the bill, 16 additioal ilad waterways are added to the list of atioal waterways, takig the umber to 111. The Uio Cabiet approved exchage of Airports Authority of Idia's lad measurig 11.5 acres at Visakhapatam Airport with a equivalet area offered by the Visakhapatam Port Trust for settig up of a multi-modal logistics park by Cotaier Corporatio of Idia. Delhi Mumbai Idustrial Corridor Trust ad Japaese IT firm NEC Corporatio siged a shareholders' pact with 5:5 equity participatio to establish a Logistic Data Bak (LDB) which will be operated by a special purpose vehicle. Cosiderig the growig export-import cargo traffic of Begaluru, a direct cotaier trai service was aouced betwee Cotaier Corporatio of Idia's Whitefield Depot i Begaluru ad Krishapatam Port o the Easter Coast to cater to customers i the regio. Sigapore-based Geshippig Pacific Lie started its Idia operatios with its compay ame Geshippig Pacific Lie (Idia) Pvt Ltd headquartered i Cheai. GVK Mumbai Iteratioal Airport Ltd alog with its strategic techology parter Kale Logistics Solutios lauched Idia's first Cargo Mobile App as a extesio to its air cargo commuity platform, GMAX. The app eables complete vehicle trackig withi the air cargo complex, i.e. right from the etry gate to the vehicle gate-out. ASR Logistics Idia Pvt Ltd established a ew divisio i Dubai i the ame of ASR Cargo LLC Dubai to provide complete logistics solutios to the customers operatio from the Gulf ad to focus o trasportatio ad warehousig services i UAE. Aegis Logistics received the allotmet of three acres of lad at Magalore Port to build a storage termial. The lad has bee allotted o a lease for a period of 3 years by New Magalore Port Trust. Major Aoucemets durig CMA CGM, a Marseilles-based group, through its logistics arm CMA CGM LOG, acquired 6% stake i logistics operator LCL Logistix, to expad its forwardig ad itermodal operatios. LetsTrasport acquired Begaluru-based Shifter, a mii truck service provider. Blue Dart Express Ltd acquired additioal 21% stake i Blue Dart Aviatio Ltd thus makig it a subsidiary with the majority shareholdig of 7%. Logistic service provider Parsel merged with a third party logistics provider Ecom Solutios. Delhi-based logistics ad delivery start-up Turat Delivery acquired Begalurubased logistics service provider Zippo. TVS Asiaics Supply Chai Solutios, the Sigaporea JV of TVS Logistics acquired a majority stake i Australia-based Trastar. Air Liquide group subsidiary, CRYO Iteratioal acquired pharma logistics firm, PDP Couriers. Hyperlocal delivery start-up Grofers acquired busiess-to-busiess logistics service provider Towrush. FM Logistic acquired majority stake i Pue-based Spear Logistics from Ambit Pragma. Great Easter Shippig to close dow Great Easter Shippig Co Lodo Limited, its wholly owed subsidiary i UK. Europea supply chai operator, GEODIS etered ito a agreemet to acquire US third party logistics firm, Ozbur-Hessey Logistics. The GEFCO Group siged a agreemet with PE fud Nimbus to acquire the Dutch compay IJS Global, a freight forwardig compay specialisig i air ad sea freight operatios.

11 Passeger cars: Domestic sales (Nos) 2,5, 2,, 1,5, Utility vehicles: Domestic sales (Nos) Domestic sales (LHS) % growth (RHS) PASSENGER VEHICLE INDUSTRY Key Highlights of Durig, domestic sales of multi-utility vehicles cars recorded decet growth of 12.1%. Exports of multi-utility vehicles grew sigificatly by 5.1% durig. Durig, several PV maufacturers aouced capacity up-gradatio ad parts distributio cetres to meet the growig demad. - Mercedez-Bez started its secod maufacturig facility i Chaka, Pue thereby doublig capacity to 2, uits per aum. p Hoda Cars is expadig the capacity at its Tapukara, Rajastha plat from 1.2 lakh uits to 1.8 lakh uits, with a ivestmet of ` 3.8 billio. p Nissa Motor Idia iaugurated its ew regioal parts distributio cetre at Luhari i Gurgao district. p Jaguar Lad Rover Idia started its parts distributio cetre i Bhiwadi ear Mumbai. Durig, several PV maufacturers made several attempts to tap the growth potetial i the overseas market. Hoda Cars Idia iitiated the export of Jazz to South Africa from its Rajastha plat. Mahidra & Mahidra set up a separate busiess uit to tap the Africa market. Tata Motors' subsidiary Jaguar Lad Rover to ivest US$ two billio to build a plat i Slovak Republic. Mahidra & Mahidra ad Ford Motors siged MOU with Tamil Nadu Govermet. M&M siged MOU to ivest ` 2 billio, icludig ivestmets i Mahidra Research Valley (MRV), a ew test track for MRV ad a automotive plat while Ford Motors siged MOU for augmetig maufacturig capacity ad buildig a global egieerig ad techology ceter i Tamil Nadu. I Uio Budget , ifrastructure tax of 1% was levied o small petrol, LPG, ad CNG cars. Similarly, 2.5% ad % levied o diesel cars ad higher egie capacity vehicles such as luxury cars ad SUVs respectively. Further, govermet plas to levy 1% cess o luxury cars that cost over ` oe millio. Major Aoucemets durig Domestic sales (LHS) % growth (RHS) -1 Tata Motors aouced its ew IMPACT Desig laguage for its upcomig passeger vehicles. With the recetly uveiled ZICA as the first ew product uder this desig laguage, the IMPACT Desig forms the over-archig desig brad which stads for 'Immediate IMPACT at first sight. Lastig IMPACT over time. The Japa-based Isuzu Motors icorporated a ew compay called Isuzu Egieerig Busiess Cetre Idia Pvt Ltd i Idia. Passeger vehicle sales (Nos) Segmets y-o-y growth (%) Micro cars 16,91 21, Mii cars 5,2,27 5,2, Compact cars 1,8,13 11,9, Super compact cars 7,28 72, Mid-size cars 1,86,58 1,81, Executive cars 2,26 15, Premium cars 2,6 2,15 2. Vas 1,71,395 1,77, Passeger cars 2,9,9 22,3,1 7.5 Multi-utility vehicles 5,52,135 5,86, Domestic sales 26,1,229 27,89, Exports 6,21,31 6,53, Total sales 32,22,57 3,3, Source: CMIE

12 RETAIL INDUSTRY Key Highlights of Retail idustry cotiued its upward streak i, buoyed by robust growth i retail sales ad strog prospects of future ecoomic growth. Olie retail sales charted higher growth o the back of growig popularity of mobile commerce, extesive peetratio of smart phoes ad tablets, ad easy access to iteret. The govermet relaxed foreig direct ivestmet (FDI) orms for 15 sectors icludig retail trade. The govermet eased orms to spur growth of e- commerce space ad relaxed restrictive local sourcig coditios for siglebrad retailers. Maufacturers were allowed to sell their products through wholesale ad/or retail, icludig through e-commerce without govermet approval. The govermet also approved 1% FDI i e-commerce marketplaces subject to certai stipulatios, which is aimed at brigig fair-play ito the market ad remove malpractices or moopolies i the segmet. Sports apparel giat Adidas AG became the first foreig sportswear compay to receive govermet od to ope 1% foreig-owed stores i Idia. Furiture retailig giat IKEA acquired its first piece of lad i Idia i Hyderabad to build a retail store, etailig a ivestmet of aroud US$ 75 - US$ 9 millio. It also siged a MOU with the Haryaa govermet to ope stores i the state with a ivestmet of aroud ` 2 billio. I additio, the compay also siged MoU with the Govermets of Uttar Pradesh, Telagaa, Karataka ad Maharashtra to roll out its large outlets. Alibaba.com opeed its first physical trade facility cetre i the coutry at Jaipur ad a hidi portal. The Departmet of Posts tied up with more tha e-commerce agecies like Flipkart, Amazo ad Sapdeal for deliverig e-commerce pre-paid ad casho-delivery (COD) orders. Grocery chai operator BigBasket raised US$15 millio i fresh fudig from UAE's Abraaj Group ad other ivestors with a view to expad ito smaller cities. Major Aoucemets i The Future Group agreed to merge its retail busiess with Bharti Retail i a allstock deal valued at a estimated ` 7.5 billio. Aditya Birla Group merged its retail apparel busiesses ito a sigle etity called Aditya Birla Fashio & Retail Limited (ABFRL). Further, Aditya Birla Retail Limited (ABRL) agreed to acquire Total Superstore, the retail divisio of Jubilat Agri & Cosumer Products i a all-cash deal. As part of the deal, ABRL aouced to acquire the leasehold rights to four Total hypermarkets i Begaluru. Retail chai V-Mart aouced ivestmets worth ` 2 billio for addig about 2 ew stores across the coutry over the ext five years. Dogo, a Turkish brad etered the Idia market through a alliace with e- commerce portal FashioAdYou. Dogo sells bags, footwear, clothes, accessories ad home décor products. Departmet store chai Shoppers Stop etered ito a deal to lauch its ow store o olie marketplace Sapdeal. Dutch food retailer SPAR, i partership with Max Hypermarkets, plas to operate 25 hypermarket stores by 217. Walmart Idia plas to add 5 more cash-ad-carry stores i Idia over the ext four to five years. Iteratioal Fiace Corporatio plas to ivest early US$ 25 millio (` 1.7 billio) i Leskart Solutios with a view to expad its ivestmet portfolio i olie retailers.

13 Tred i HRC ad CRC prices - Mumbai (`/toe) 6, 5,, 3, 2, 1, FY6 Fiished Steel Productio 1,. 8,. 6,. FY7 FY8 FY9 FY1 HR Coils (2. mm) CR Coils (1 mm) ' toes % STEEL INDUSTRY Key Highlights of Idia's fiished steel productio bouced back, postig a modest growth of.6% i (up to Feb) as compared with a drop of 2.6% witessed i the correspodig period a year ago. Cosumptio of fiished steel also spurred up.2% i (up to Feb) after decliig 1.7% i the same period of the previous year. Steel imports amouted to ` billio i the Apr-Ja period of, clockig a 2% (y-o-y) icrease as compared with early 75% (y-o-y) icrease i. The govermet plas to set up four steel plats i Jharkhad, Karataka, Odisha ad Chhattisgarh ad the Steel Miistry is i the process of facilitatig settig up of SPVs for these mieral-rich states. Tata Steel commissioed the first phase (three millio toes per aum) of its six MTPA capacity Kaligaagar Steel Plat - the largest sigle-locatio greefield steel project i Idia - i Odisha. Steel Authority of Idia Limited (SAIL) ad Natioal Mieral Developmet Corporatio (NMDC) iked a deal to set up a three millio toe ultra-mega steel plat (UMSP) with a ivestmet of ` 18 billio.,. 1 Major Policy Aoucemets of 2,. Growth i exports & imports of fiished steel (%) *Upto Dec Exports Imports Steel: Ivestmet sceario (` b) *Upto Feb FY6 FY6 FY7 FY7 FY8 FY8 FY9 FY9 FY1 FY1 Fiished Steel Cosumptio (LHS) * Chage (RHS) * 5 The govermet imposed duties i the rage of US$ 18 ad US$ 316 per toe o certai idustrial-grade stailess steel imported from Chia, Malaysia ad South Korea, ad these will be valid for a period of five years. A miimum import price (MIP) ragig from US$ 31 to US$ 752 per toe has bee imposed o 173 steel products to provide relief to the domestic steel idustry. New MIP rates would be applicable for a period of six moths from the date of otificatio i.e. Feb 5, 216. The Directorate Geeral of Safeguards levied a provisioal safeguard duty of 2% o imports of hot-rolled flat products of o-alloy ad other alloy steel, with a view to cushio domestic maufacturers from recet upsurge i shipmets from coutries like Chia. The safeguard duty of 2%, which will be reduced to 1% i stages over the ext two years, shall ot be imposed o steel products which are imported at or above the miimum import price (MIP). Import duty o flat steel products was hiked from 7.5% to 1% ad o log steel products from 5% to 7.5%. Import duty o selective steel products was raised by 2.5%. Import duty o semi igots products, stailess steel log products, alloy steel log products, oalloy log products ad alloy steel flat products icreased to 1%. Import duty o o-alloy flat products ad some specified alloy steel products raised to 12.5%. The Uio Steel Miistry issued Stailess Steel Products (Quality Cotrol) Order 215 to itroduce striget quality orms ad curtail risig imports. The Govermet issued a advisory to large steel compaies to icrease R&D ivestmet up to 1% of sales turover for developmet of value added products that are import substitutes. Major Expasio Aoucemets durig 6 SAIL plas to ivest aroud ` 1,5 billio to icrease its steel productio from 2 millio toes (MT) to 5MT by Rashtriya Ispat Nigam Ltd plas to ehace its capacity to 16 millio toes per aum (MTPA) by 225 with a ivestmet of `35 billio. Mar-6 Mar-7 Mar-8 Mar-9 Mar-1 Mar-11 Mar-12 Mar-13 Mar-1 *Outstadig ivestmets as of March every year Mar-15 Mar-16 Mesco Steel plas to ivest ` 135 billio over the ext three to five years to icrease aual capacity to.5 MT.

14 TEXTILE & GARMENT INDUSTRY Fabrics productio (Millio sq. metres) 66, 6, 62, 6, 58, 56, 5, 52, 5, 8, *Up to Ja-16 Cotto ad Sythetic yar productio (' toes) 6,8 6,6 6, 6,2 6, 5,8 5,6 5, 5,2 5, *Up to Ja-16 Textiles: Ivestmet Sceario* (` b) FY7 Fabrics Productio (LHS) Yar Productio (LHS) FY8 FY9 FY1 * % growth ( RHS) *Outstadig ivestmets as of March every year * % Growth (RHS) Key Highlights of Productio of fabrics durig (up to Ja-16) showed a meager.7% growth to 5,589.8 millio square metres (msm) from 5,189.9 msm i the same period a year ago. Yar productio was up 1.8% durig Apr-Ja, compared with 1.% i the correspodig period of. The textiles sector (icludig dyed, prited) received FDI equity iflows to the tue of US$ 1,1.5 millio durig (up to Dec). Ameded Techology Upgradatio Fud Scheme (ATUFS) was lauched, providig 1% -15% subsidy o capital ivestmets subject to certai limits across two broad sub-sectors of textile idustry. The Govermet gave gree sigal to seve textile parks uder SITP (Scheme for Itegrated Textile Parks) i Rajastha with a view to geerate jobs ad attract ivestmets. The Federatio of Hosiery Maufacturers' Associatio of Idia devised FOHMA Hosiery Cost Idex (HOSEX) - a first-of-its-kid cost idex for ay textile idustry segmet i the coutry. HOSEX is aimed at eablig compaies to bechmark their pricig to a systematic cost plus sceario ad esure the same is accepted by the market. The Natioal Textile Corporatio commeced e-auctio of yar o December 1, 215 with a view to facilitiate greater trasparecy, efficiecy ad better price discovery. The US Govermet reewed geeralised system of preferece (GSP) beefits for Idia exporters, retrospectively from August 213 till December 217, eablig duty advatage o 3,5 product lies. Key Policy Aoucemets durig The Uio Budget allocated ` 1 billio towards the ATUFS ad ` three billio for developmet of mega clusters i the textile sector. Basic customs duty reduced to 2.5% for textile raw materials used i techical textiles. Basic customs duty for certai specified fabrics reduced to zero provided the articles are imported to maufacture garmet for export, ad the total value of goods imported shall ot exceed 1% of the Free o Board (FOB) value of textile garmets exported durig the precedig fiacial year. The Budget 216 levied 2% excise duty without iput tax creditor 12.5% with iput tax credit o braded readymade garmets ad made-up articles of textiles havig retail sale price of ` 1, or more. The govermet relaxed border trade orms with Chia. For border trade betwee Idia ad Chia, the CIF value per cosigmet was icreased from ` 1, to ` 2, i case of Nathula, while for Guji ad Namgaya Shipkila, the CIF value limit of ` 25, was ehaced to ` 1,. The Cabiet Committee o Ecoomic Affairs approved additioal fiscal allocatio to reimburse aticipated losses i disposal of cotto procured by Cotto Corporatio of Idia (CCI) ad Maharashtra State Cooperative Cotto Growers Marketig Federatio Ltd (MSCCGMFL) uder the miimum support price (MSP) operatios durig the cotto seaso The Committee also approved egagig the MSCCGMFL to udertake MSP operatios as a subaget of the CCI durig the cotto seaso (October-September). Major Expasios Aouced durig Raymod Ltd aouced plas to ivest $ five millio to lauch its products i the West Asia ad Africa regios through its subsidiaries. Chia Small ad Medium Eterprise Ivestmet Ltd, a Chiese ivestmet firm, siged a MoU with the Gujarat Govermet's Idustrial Extesio Bureau to set up a textile park ear the idustrial tow of Saad i Gujarat, i the first phase. Filatex Idia plas to set up maufacturig facilities of 1 MT/day of polyester fully draw yars at its existig uit at Dahej, etailig a cost of ` oe billio. Grasim Idustries aouced a capex pla of ` 1.5 billio for product developmet, R&D ad busiess developmet for its ew fabric brad Livai FY17.

15 TWO-WHEELER AND THREE-WHEELER INDUSTRY Two-wheeler: Domestic sales volume (m) Three-wheeler: Domestic sales volume (Nos.) Domestic sales (LHS) Domestic Sales (LHS) % growth (RHS) % growth (RHS) Key Highlights of Domestic sales of two-wheelers grew by 2.7% (y-o-y) at 18.9 millio uits i. Exports of two-wheelers durig the same period recorded a growth of mere.97% at 2.8 millio uits. I, domestic sales of three-wheelers icreased merely by.25% to.9 millio uits. Exports of three-wheelers declied by.8% to,1 uits durig. Durig, several two-three wheeler maufacturers aouced capacity upgradatio to meet the growig demad. Hoda Motorcycle & Scooter Idia iaugurated its fourth maufacturig plat at Gujarat i Idia with a maufacturig capacity of 1.2 millio uits aually. Royal Efield aouced to double its productio capacity to ie lakh uits by 218 with the settig up of its third plat i Tamil Nadu. Idia Yamaha Pvt Ltd aouced to icrease the productio capacity at its ew two wheeler plat i Tamil Nadu, from.5 lakh uits to 18 lakh uits by 218. Durig, several two & three wheeler maufacturers made several attempts to tap the growth potetial i the overseas market. Piaggio Idia lauched its first overseas operatio i Nepal with the lauch of Vespa i Kathmadu. Hero Moto Corp stated operatios at its first plat outside Idia at Colombia with a productio capacity of 8, uits per aum. Royal Efield set up a direct distributio subsidiary i the US, its first outside Idia, to cater to the North America market. Growig emergece of e-commerce led to may tie-up arragemets betwee olie marketplaces ad two-three wheeler maufacturers durig. Suzuki Motorcycle tied up with Sapdeal for the sales of its vehicles. Piaggio aouced the lauch of a olie store i partership with Sapdeal.com i Idia. Harley-Davidso also tied up with fashio portal Mytra to sell its casual merchadise through a exclusive olie store. The year witessed lauch of some battery operated vehicles. Kietic Group veture, Kietic Gree Eergy ad Power Solutios lauched its idigeously desiged battery operated e-three wheeler 'Kietic Safar' priced at ` 1.28 lakh (ex-showroom Delhi). Mahidra lauched its all electric scooter, GeZei the Califoria city i US. Major Aoucemets durig Royal Efield acquired UK-based Harris Performace Products Ltd, a motorcycle desig ad egieerig firm acquirig all its assets, employees, trade ames, techical kow-how ad itellectual property. Mahidra Two Wheelers Ltd acquired 51% stake i Peugeot Motocycles, a part of the Frace-based PSA Group. Hero MotoCorp etered ito a tie up with Pujab Natioal Bak to create a strog presece i the rural market by providig easy fiacig schemes. The Kietic Group re-etered the two wheeler market by lauchig super bikes i partership with Italia motorcycle maufacturer MV Agusta. Piaggio Idia opeed its first Motoplex store i Idia i Pue. The compay plas to ope 9 such stores across the world with three to four stores to be opeed i Idia. Major Policy Aoucemets durig Isurace Regulatory ad Developmet Authority made third party isurace madatory for battery operated three wheeled vehicles.

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