n The capital goods output contracted for 11 successive months. It fell by 21.6% in Sep 16, as against the growth of 10.1% in Sep 15.

Transcription

1 Idustry cursor CONTENTS Strictly for Private Circulatio Issue 99 November 2016 Macroecoomic Update Auto Compoets Bakig Commercial Vehicle Gems & Jewellery Healthcare & Pharmaceutical Hi-Tech Hospitality IT-Hardware Logistics & Supply Chai Passeger Vehicle Retail MACROECONOMIC UPDATE The Idex of Idustrial Productio grew by 0.7% i Sep 16, as agaist the growth of 3.7% i Sep 15. The maufacturig ad electricity sectors grew by 0.9% ad 2.4% respectively i Sep 16, as agaist the growth of 2.7% ad 11.4% i Sep 15. Growth i miig dropped by 3.1% as agaist the cotractio of 5.6% i Aug 16. The capital goods output cotracted for 11 successive moths. It fell by 21.6% i Sep 16, as agaist the growth of 10.1% i Sep 15. At 3.4% i Oct 16, WPI iflatio cotiues to moderate for two cosecutive moths from rate of aroud 3.9% reached durig Aug 16. Retail iflatio moderated further to 4.20% i Oct 16 lowest sice 14 moths (Sep 15) led by the fall i the iflatio rate for food ad beverages (3.7%). The Govermet of Idia has decided that the five hudred ad oe thousad rupee otes will o loger be legal teder from midight, Nov 8, Growth i deploymet of credit to Idustry (Mirco & Small, Medium ad Large) sigificatly moderated to 0.9% i Sep 16, as agaist the growth of 4.9% i Sep 15. Durig Oct 16, exports grew by 9.6% (y-o-y) to US$ 23.5 b. Imports grew by 8.1% (y-o-y) to aroud US$ 33.7 b, turig positive for the first time sice Nov 14. Trade deficit wideed to US$ 10.2 b ad stood at a 10-moth high. FDI equity iflows icreased sigificatly by 30.0% to US$ 21.6 b durig H1 FY17 as agaist a icrease of 13.2% durig H1 FY16. O Nov 18, 2016, the rupee fell to a 8-moth low of per US$, lowest sice Mar 1, Steel Textile & Garmet Two ad Three-Wheeler GDP: Growth Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 (E) Q2 FY17 (F) IIP ad core ifrastructure: Growth Ja-16 Ju-16 Agriculture Idustry Services Real GVA Eight core idustries IIP E: Estimates; F: D&B forecast Source: CSO Source: Miistry of Commerce & Idustry, CSO Idia's exports & imports (US$ b) Macroecoomic triad (estimate) Iflatio 3.0% - 3.2% Nov-16 Ja-16 Ju-16 Exchage rate Iterest rate 6.2 % % Exports (LHS) Imports (RHS) Follow Du & Bradstreet Idia o: 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 DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

2 AUTO COMPONENTS INDUSTRY Steel prices (Mumbai) (`/toe) HR coils 2.00 mm Rubber prices* (Kottayam) (`/quital) 15,000 14,000 Ja-16 Ju-16 CR coils 0.63 mm Mahidra CIE Automotive completed the acquisitio of Bill Forge Pvt Ltd makig it a wholly owed subsidiary with a ivestmet of aroud US$ 200 m. Apollo Tyres is settig up greefield plat i Hugary with a ivestmet of Euros 475 m to produce early 6.2 m tyres per aum for passeger cars ad heavy commercial vehicles. The compay also plas to set-up a ew maufacturig facility i Adhra Pradesh with a ivestmet of aroud 5 b to maufacture tyres for two-wheeler ad pick-up vehicles. Volta Automotive Idia etered ito a JV with Chiese compay, the Fueg Group to itroduce lithium - io cells for autos. Cotietal Automotive iaugurated a electroic brakig system maufacturig facility for four-wheelers i Maesar, Haryaa. Wheels Idia, a TVS Group compay egaged i maufacturig of steel wheels plas to ivest 750 m i FY17 to expad plat capacity. Gas ad diesel egies maker Perkis plas to make Idia the maufacturig hub for its 4,000 Series egies to cater to domestic as well as Asia Pacific markets. Madras High Court sactioed the amalgamatio of Pricol Ltd with its wholly owed subsidiary Pricol Pue Ltd. 13,000 12,000 11,000 10,000 9,000 Ja-16 Ju-16 *Rss-4 Source for all above charts: CMIE Nissa Motor Co decided to sell its etire stake i Japaese auto parts maker Calsoic Kasei Corp to US private equity firm KKR & Co as part of a US$ 3.8 b takeover. Samsug Electroics plas to buy US auto parts maker Harma Iteratioal Idustries for US$ 8 b to eter the growig market for automotive techology to produce "coected" cars. Germa car idustry maufacturer Cotietal bought Horschuch, a maker of films, foam lamiates ad artificial leather for cars ad other applicatios, to help it expad ito other idustry sectors. Maga Iteratioal itroduced its ew rage of automotive seatig - the Pitch Slide ad Tip Slide 2d Row EZ Etry vehicle seats specifically egieered for the 2d row passeger side ad for the 2d row driver's side respectively. Germa automotive compoets maufacturer ZF established a compay, Zukuft Vetures GmbH to ivest i techology compaies. UK Egieerig Compay GKN Plc to sell its auto parts uits, Stromag to automobile parts maker Altra Idustrial Motio Corp for Euros 184 m. Auto Compoets: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Operatig profit ( b) Net profit ( b) PBDIT margi PAT margi M R F Ltd Bosch Ltd Apollo Tyres Ltd Exide Idustries Ltd Motherso Sumi Systems Ltd Note: Operatig profit: PBDIT et of prior period ad extra-ordiary items (P&E) & Other icome; Net profit: PAT et of P&E DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

3 BANKING INDUSTRY Deposits, credit ad growth rates ` b 110, ,000 Note: Data for is as o Oct 28, 2016 Movemet i call moey rates ,000 80,000 70,000 60,000 50,000 Ja-16 Ju-16 Ja-16 Deposits (LHS) Credit (LHS) y-o-y growth rates of deposits (RHS) y-o-y growth rates of credit (RHS) Ju-16 Call moey rate- High Call moey rate- Low Note: Call rates for Nov-16 are up to Nov 12, 2016 Source for all above charts: RBI % Nov-16 Govermet of Idia aouced that 500 ad 1,000 deomiatios of bak otes of the existig series issued by the RBI shall cease to be legal teder with effect from Nov 9, The RBI set up the secod Bakig Ombudsma office i New Delhi i order to deal with customers comig to it with complaits agaist baks. The RBI's secod Bakig Ombudsma office i New Delhi will have the jurisdictio over Haryaa (except Pachkula, Yamua Nagar, ad Ambala districts), ad Ghaziabad, ad Gautam Buddha Nagar districts of Uttar Pradesh. Cetral Vigilace Commissio made it madatory for baks to report to it frauds of oe m ad above. The role of Bak Board Bureau is beig expaded to help baks i their capital raisig plas ad develop busiess strategies. The Board of SBI approved issuace of m shares to miority shareholders of its three listed subsidiaries i.e. State Bak of Bikaer ad Jaipur, State Bak of Mysore, ad State Bak of Travacore ad the Govermet of Idia. The British subsidiary of ICICI Bak, ICICI Bak UK Plc, aouced the lauch of olie moey trasfer service 'Moey2Idia Europe' to facilitate trasactio from ay bak accouts i Swede, Norway ad Demark to ay recipiet accout based i Idia. Ujjiva Small Fiace Bak received fial licese from RBI for small fiace bak ad is likely to commece bakig operatio i early Kumbakoam, Tamil Nadu-based City Uio Bak lauched the artificial itelligece powered robot amed Lakshmi as the o-site bak helper. HDFC Bak plas to set up 10 ew braches i Madhya Pradesh as part of its expasio pla. Axis Bak i partership with Flipkart lauched 'Buzz Credit Card' for olie shoppers. Five ew baks amely State Bak of Idia, Allahabad Bak, Bak of Baroda, HDFC Bak ad IDFC Bak joied the Uified Paymets Iterface (UPI), thereby takig the total umber of baks usig UPI to 26. Yes Bak lauched Yes Mobile 2.0 its ew mobile bakig app with multiple ew features ad extesive support for bakig trasactios o all mobile devices icludig Adroid tablets, Apple ipads i additio to smartphoes ad wearables. th I a orgaisatioal restructurig, Uited Bak of Idia set up its 36 regioal office i Hyderabad to boost busiess i Adhra Pradesh ad Telagaa. Bakig: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( m) Net profit ( m) Net profit margi State Bak Of Idia H D F C Bak Ltd I C I C I Bak Ltd Pujab Natioal Bak Axis Bak Ltd Net profit: PAT et of prior period ad extraordiary items DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

4 COMMERCIAL VEHICLE INDUSTRY M&HCV: Domestic sales (Nos.) 40,000 35,000 30,000 25,000 20,000 15,000 Ja-16 Ju-16 LCV: Domestic sales (Nos.) 45,000 40,000 Ashok Leylad received the Competitio Commissio of Idia s approval to buyout its Japaese parter Nissa Motors' stake i JVs which were floated to maufacture ad market light commercial vehicles. Ashok Leylad lauched the Circuit rage of 100% electric bus, desiged ad egieered etirely i Idia. Ashok Leylad also wo a US$ 170 m order from the Govermet of the Uited Republic of Tazaia for the purchase of vehicles, gesets, spares ad equipmet for developmet of workshops, traiig modules ad allied equipmet to be fitted o ambulaces. Volvo Buses uveiled its ew Itercity Coach Rage icludig the New Volvo m coach ad the Volvo m multi-axle coach. Volvo Idia's R&D team plas to develop medium duty trucks for global markets scheduled to go ito productio i MG Group uveiled special applicatio coach (tarmac coach) - 'Columbus', a fully Moocoque ultra-low flat-floor Tarmac coach developed curretly for iteratioal markets with a passeger etry floor height at 290 mm (after keelig). The compay also plas to lauch its first premium luxury coach 'Mammoth' i Idia. Tata Motors plas to commercially lauch eco-friedly LNG bus by April ,000 30,000 25,000 Ja-16 Ju-16 Source for all above charts: CMIE Scaia ad Higer iaugurated a ew, state-of-the-art bus ad coach factory i Suzhou, Chia for exclusively buildig Scaia Tourig ad Scaia-Higer dualbraded high-ed buses ad coaches. Volvo plas to sell its govermet sales uit which maufactures ad sells especially desiged vehicles to govermets, the defese idustry, peacekeepig forces ad aid orgaizatios. Commercial vehicle sales (Nos.) Segmets y-o-y growth Apr-Oct FY16 Apr-Oct FY17 y-o-y growth M&HCV 22,181 25, , , LCV 36,415 39, , , Total domestic sales 58,596 65, , , Exports 8,168 10, ,917 66, Total sales 66,764 75, , , Commercial Vehicles: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Operatig profit ( b) Net profit ( b) Note: Operatig profit: PBDIT et of prior period ad extra-ordiary items (P&E) & Other icome; Net profit: PAT et of P&E PBDIT margi PAT margi Ashok Leylad Ltd Force Motors Ltd S M L Isuzu Ltd DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

5 GEMS AND JEWELLERY INDUSTRY Gold prices i Mumbai market `/10 gm % 32,000 30,000 28,000 26,000 24,000 Ja-16 Ju-16 Price (LHS) Chage (RHS) Gems & Jewellery exports (` b) Accordig to the Gems ad Jewellery Export Promotio Coucil, et exports from the gems ad jewellery sector durig Apr-Sep FY17 stood at US$ 17.8 b, a growth of 14.4% over the US$ 15.6 b exported i the same period of the previous year. The All Idia Gems ad Jewellery Trade Federatio (GJF) sought 1.25% GST for the gems ad jewellery sector. It also urged to icrease the madatory PAN card limit to 0.5 m ad above for purchase of gold jewellery. The Odisha govermet cleared a proposal of Geetajali Exports to set up a gems ad jewellery maufacturig uit at Trisulia with a ivestmet of two b. Divie Solitaires etered ito a strategic partership with H Dipak & Co, maufacturer ad distributor of pricess cut diamods, to boost further growth ad expasio of its brad both withi Idia ad globally. Sarie Techologies Ltd developed ew techology that will provide automated, objective ad cosistet clarity measuremet ad gradig for the diamod idustry. Muthoot Exim Pvt Ltd, the precious metals divisio of the 129-year-old Muthoot Pappacha Group, lauched ''Mobile Muthoot Gold Poit, a mobile gold buyig vehicle that will help customers who wish to sell gold to do so at their doorstep Ja-16 Ju-16 Gems & Jewellery imports (` b) Ja-16 Ju-16 Source for all above charts: CMIE Global demad for gold jewellery cotiued to remai subdued, decliig by 21% y-o-y i the quarter edig Sep 30, 2016, as the gold prices remaied high, the World Gold Coucil (WGC) said i its quarterly report Gold Demad Treds. A group of private ivestor fuds maaged by Bai Capital Private Equity ad Bow Street LLC siged a defiitive agreemet with Blue Nile to acquire 100% stake i the leadig olie jeweller for approximately US$ 500 m. The De Beers Group of Compaies aouced the pilot lauch of a ew service uder which the Auctio Sales busiess will offer other midstream diamod compaies the opportuity to sell certai types of polished diamods through its platform. Storoway Diamod Corporatio aouced the official opeig of Reard Diamod Mie. Stellar Diamods plc siged joit veture agreemets with a Dubai-based commodities group, Citigate Commodities Tradig, for its projects i Guiea ad Liberia. The Dalumi Group, a Israel-based diamod idustry eterprise acquired olie diamod ad luxury jewellery e-commerce brad Zoara.com. Gems & Jewellery: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( m) Operatig profit ( m) Net profit ( m) PBDIT margi PAT margi Rajesh Exports Ltd Tita Compay Ltd Tribhovadas Bhimji Zaveri Ltd Thagamayil Jewellery Ltd Reaissace Jewellery Ltd Note: Operatig profit: PBDIT et of prior period ad extra-ordiary items (P&E) & Other icome; Net profit: PAT et of P&E DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

6 HEALTHCARE & PHARMACEUTICAL INDUSTRY Tred i Drugs ad Pharmaceuticals export Tred i Drugs ad Pharmaceuticals import ` b ` b % Ja-16 Ju-16 Value (LHS) Ja-16 Value (LHS) Source for all above charts: CMIE Growth (RHS) Ju-16 Growth (RHS) % Natioal Pharmaceutical Pricig Authority revised ceilig prices of 45 scheduled formulatios of Schedule-I uder Drugs (Price Cotrol) Amedmet Order, 2016 ad retail price of 11 formulatios uder DPCO, Su Pharma acquired 100% equity i the US-based eye care specialist Ocular Techologies Sarl, owed by the private equity firm Auve Therapeutics for US$ 40 m. Apollo Health ad Lifestyle plas to raise 4.5 b ad to double the etwork of cliics to 150 cetres i the ext three years. Apollo Hospitals plas to ivest 14 b over the ext couple of years i ew hospitals ad expasio of already existig healthcare cetres. Dr Reddy's Laboratories etered ito a strategic collaboratio with Glad Pharma to market ad distribute eight ijectable Abbreviated New Drug Applicatios. The compay also lauched Raloxifee hydrochloride tablets used i treatmet ad prevetio of osteoporosis followig the approval from USFDA. Abbott is settig up a iovatio ad developmet cetre (I&D) i Mumbai aimed at developig ew drug formulatios, ew idicatios, dosig, packagig ad other differetiated offerigs. Private equity firm Everstoe Group bought a cotrollig 70% stake i Mumbaibased Rubico Research, which is ito drug delivery techology, for US$ 33 m. The cetral govermet plas to ope 300 pharmacy AMRIT outlets i differet parts of the coutry to provide affordable medicies to people at a discout rate of 60-70%. SRL Diagostics plas to add laboratories i South Asia, Middle East ad Africa. Phytotech Extracts plas to ivest 250 m for settig up a advaced maufacturig uit o a 2 acre space as per USFDA orms at Chikkaballapura, Karataka. Germa drug maker Merck merged its pharmaceuticals ad cosumer healthcare busiesses as part of a major makeover uique to Idia aimed at buildig scale ad rampig up local busiess with a hybrid model. Ajata Pharma lauched Amlodipie Olmesarta Medoxomil tablets used i the lowerig of blood pressure post USFDA approval. Glemark Pharmaceuticals received approval from the USFDA for ati-fugal oitmet ystati ad triamcioloe acetoide. Drugs & Pharmaceuticals: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Operatig profit ( b) Net profit ( b) Note: Operatig profit: PBDIT et of prior period ad extra-ordiary items (P&E) & Other icome; Net profit: PAT et of P&E PBDIT margi PAT margi Lupi Ltd Cipla Ltd Dr. Reddy'S Laboratories Ltd Glemark Pharmaceuticals Ltd Su Pharmaceutical Ids. Ltd DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

7 HI-TECH INDUSTRY Civil Aviatio: Cargo statistics (freight toe km ad mail toe km i m) 25,000 20,000 15,000 10,000 5,000 Ja-16 Ju-16 Freight toe km (LHS) Mail toe km (RHS) Civil Aviatio: Load factor Idia's secod gree airport after Kochi was iaugurated i Vadodara. Airlies Techology, a IT solutios provider fuded by Travel Startups, siged a commercial agreemet with British Airways as a iterface betwee the airlie ad its passeger. Air Caada commeced its first o-stop flight services betwee Vacouver ad Delhi. Air Caada also plas to lauch flight services to Mumbai from Toroto ext year. Jet Airways etered ito code share agreemets with America carrier Delta Airlies ad UK-based Virgi Atlatic to expad coectivity to 24 ew wester cities via Lodo Heathrow. Jet Airways also expaded its services i Ido-Gulf route with the itroductio of a ew daily service from Thiruvaathapuram to Dubai. Holitech Techology, a maufacturer of LCD ad touch scree paels used i mobile phoes, plas to ivest US$ 1 b i Idia by ext year. Paasoic's cosumer brad Sayo to exclusively offer televisios ad smart phoes olie. UK-based cosumer electroics maker Dyso plas to eter Idia with its rage of pateted products ext year Smartphoe chipmaker Qualcomm Ic agreed to buy NXP Semicoductors NV for about US$ 38 b Ja-16 Ju-16 Passeger load factor Weight load factor Source for all above charts: CMIE Civil aviatio: Airport traffic statistics (September 2016) Parameters Nos. Aircraft traffic Passeger traffic Cargo traffic y-o-y growth Nos. y-o-y growth Toes y-o-y growth Domestic traffi c 132, ,218, , Iteratioal traffic 32, ,675, , Total airport traffi c 165, ,893, , Aviatio*: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Net profit ( b) PAT margi Jet Airways (Idia) Ltd Iterglobe Aviatio Ltd Global Vectra Helicorp Ltd *Air Trasport Services Net profit: PAT et of prior period ad extraordiary items DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

8 HOSPITALITY INDUSTRY Foreig tourist arrivals i Idia ('000 os.) Foreig exchage earigs ` b % Ja-16 Ja-16 Foreig exchage earigs (LHS) Ju-16 Ju-16 Growth (RHS) Miistry of Tourism lauched the implemetatio of the Sustaiable Tourism Criteria for Idia (STCI) i associatio with Ecotourism Society of Idia (ESOI). The Maharashtra govermet plas to dilute orms for grat of additioal buildable space for luxury hotels i Mumbai by settig aside the coditio that a star category residetial hotel must have come up o a plot of over 2,500 sq. m. or more. Sarovar Hotels & Resorts aouced a 60 room hotel, Presidium Sarovar Portico i Dalhousie, Himachal Pradesh which will be operatioal by ed Sigapore-based Geeral Hotel Maagemet Ltd aouced their etry ito the Idia hospitality sector with 'The Chedi Mumbai' i Powai (Mumbai) with 316 guestrooms, five restaurats, extesive meetig facilities with state-of-theart equipmet ad techology, ad a holistic spa ad welless facility i partership with Rajesh LifeSpaces. Luxury boutique hotels operator MRS Group lauched the 82 room Naredra Bhawa i Bikaer ad will ope two ew hotels i Rajastha ad Madhya Pradesh i the ext three to four years. Berggrue Hotels plas to add up to 20 properties uder its mid-market segmet 'Keys Hotels' brad across Idia by the ed of 2018 as part of its aggressive expasio plas. JW Marriott opeed its first property i east Idia i Kolkata. Olie hospitality firm HotelBids plas to ivest m for expasio withi Idia ad overseas ext year. Bookig.com aouced the iitial test pilot of 'Bookig.com for Travel Agets', a ew platform desiged specifically with the uique eeds of travel agets. Millitoos Etertaimet plas to make a foray ito hospitality sector by acquirig 9 compaies i the US which ow well established hotels. Growth i foreig tourist arrivals Hospitality: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Net profit ( b) PAT margi Idia Hotels Co. Ltd Thomas Cook (Idia) Ltd E I H Ltd Mahidra Holidays & Resorts Idia Ltd Hotel Leelaveture Ltd Net profit: PAT et of prior period ad extraordiary items Ja Feb Mar Apr May Ju Jul Aug Sep Oct Nov Dec Source for all charts: CMIE DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

9 IT HARDWARE INDUSTRY Domestic Computer Hardware & Peripheral productio (` b) Ja-16 Ju-16 Cao Idia lauched high-speed eterprise laser priters desiged to address the eeds of the govermet, large eterprises, BFSI ad healthcare segmets. Priced i the rage of 87, ,999, the sigle-fuctio "LBP 351x, LBP 352x" laser priter ad multi-fuctio "MF 515x" priters have features such as higher duty cycle, better memory capacity ad high-yield toer cartridges. HP Ic lauched LaserJet ad A3 multifuctioal priters (MFPs) i Idia priced betwee 22,999-89,068 that will esure cost-effective ad mobile-eabled pritig for small ad medium busiesses (SMBs) i the coutry. HP Ic is testig out a cloud model for its laptops ad priters i Idia called device-as-a-service, wherei the compay ot oly leases its devices to eterprises but also maages ay techical or software-related issues. Wipro3D etered ito a alliace with EOS accordig to which Wipro will sell the suite of stadard ad customised additive maufacturig solutios, products ad services, based o the laser meltig techology, to a rage of idustries icludig aerospace, space, idustrial, automotive ad oil & gas. Apple Ic uveiled ew Mac computers i a move to revitalize the product lie. The ew MacBook Pro has a Touch ID figerprit scaer which makes it easier to buy olie usig the Apple Pay paymets system. Chipmaker Broadcom plas to purchase etwork gear maker Brocade Commuicatios Systems Ic for US$ 5.5 b i cash, to expad its fibre chael ad data storage busiesses. IT-Hardware: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( m) Operatig profit ( m) Net profit ( m) Note: Operatig profit: PBDIT et of prior period ad extra-ordiary items (P&E) & Other icome; Net profit: PAT et of P&E PBDIT margi PAT margi Moser Baer Idia Ltd V X L Istrumets Ltd Ze Techologies Ltd DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

10 LOGISTICS & SUPPLY CHAIN INDUSTRY Airports Authority of Idia lauched a cargo subsidiary i the ame of AAI Cargo logistics ad Allied Services Compay Ltd. Cochi Shipyard Ltd siged a MoU with Egieers Idia Ltd for desig ad costructio of small-scale LNG carriers. Essar Ports & Shippig sold 60.09% stake i Essar Shippig to Essar Africa Steel Holdigs by way of iter-se trasfer. The Great Easter Shippig Compay Ltd siged a cotract to buy a Supramax Dry Bulk Carrier of about 58,000 Deadweight toage (dwt). Caisse de depot du Quebec, a Caada-based pesio-fud maager, plas to ivest 10 b to acquire a 'sizeable' miority stake i TVS Logistics. Apollo Logisolutios (ALS) etered ito a pact with Pacific Iteratioal Lies (PIL) to explore logistics opportuities i Idia. The first MoU is for mutual cooperatio i cotaier freight statio & allied services, while the secod MoU betwee ALS ad Sigamas (a subsidiary of PIL) is to joitly pursue trasportatio of specialised liquids i Idia. FedEx plas to ivest a total of Euro 1.4 b i its logistics hub at Paris Charles de Gaulle airport, icludig a ivestmet of Euro 200 m i a ew facility ad a 30- year lease. DP World siged a MoU with the Govermet of Ukraie to develop logistics capability i the coutry. MAB Kargo lauched freighter service from Kuala Lumpur to Guagzhou (Chia). Cathay Pacific Airways started its ew cargo service at Portlad Iteratioal Airport uder which the airlie will fly a 747 cargo plae twice a week betwee Portlad ad Hog Kog. APL expaded Asia-Middle East service etwork with the lauch of New Red Sea Express 2 service directly likig Chia to the Red Sea Ports of Jeddah, Sokha ad Aqaba. APL also plas to lauch a weekly feeder service that coects the major markets of Colombia ad Kigsto i Jamaica, braded the Colombia Bridge Express. IAG Cargo to expad its services to US gateways to 25 with the lauch of two ew Lodo Gatwick services to Fort Lauderdale ad Oaklad i Logistics*: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Net profit ( b) PAT margi Blue Dart Express Ltd Trasport Corporatio Of Idia Ltd Sical Logistics Ltd Gati Ltd Gateway Distriparks Ltd *Trasport logistics services Net profit: PAT et of prior period ad extraordiary items DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

11 PASSENGER VEHICLE INDUSTRY Passeger cars: Domestic sales (Nos.) 220, , , , , , ,000 Utility vehicles: Domestic sales (Nos.) 75,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000 Maruti Suzuki Idia Ltd: Profit Margis Q2 FY16 Ja-16 Ja-16 Q3 FY16 Q4 FY16 Source for above charts: CMIE Q1 FY17 Ju-16 Ju-16 PBDIT Margi (LHS) PAT Margi (RHS) Q2 FY Hoda Motor Co Ltd plas to itroduce ew products, icludig SUV ad bigger sedas, as well as add more features i future models i the Idia market. BMW ad taxi hailig app Ola siged a MoU to provide o-demad luxury cab services i Idia. Fiat Chrysler Automobiles opeed a ew store i Mumbai which will display Fiat, Abarth ad Jeep vehicles. Geeral Motors Co plas to lauch a ew SUV productio lie at its JV i Chia durig the first half of Audi AG ad Chia's SAIC Motor Corp siged cooperatio framework agreemet to weigh joitly makig Audi cars i Chia with SAIC. Volkswage itroduced ew America-built 7-passeger SUV Atlas which comes with two egie choices ad eight-speed automatic trasmissios. BMW-owed British luxury car maufacturer MINI to itroduce its first plug-i hybrid model featurig a combustio egie ad a electric motor. Hyudai Motor Co aims to make more Chia-oly ad eviromet-friedly cars at two ew Chiese plats to battle local brads. The compay also plas to begi makig ad sellig its ew Tucso ad compact SUV Creta models i Brazil ext year. Pak Suzuki Motor Compay Ltd to itroduce 660cc versio of Alto i Pakista. The compay also plas to itroduce the imported Celerio 1,000cc, Suzuki Grad Vitara SUV ad 1,300cc Seda Ciaz i the coutry by ext year. New Lauches D:Diesel, P: Petrol; *I ` crore Passeger vehicle sales (Nos.) Variat Compay Price (I lakh) (ex-showroom) Segmet F-PACE Jaguar Luxury SUV 3 Series Gra Turismo BMW 43.3 Luxury seda e20 Plus Mahidra 5.46 Electric car Accord Hybrid Hoda 37 Seda Cooper S Carbo Editio MINI 39.9 Luxury Hatchback Polo GTI Volkswage Hatchback New Rapid Facelift Skoda Seda S90 Volvo 53.5 Luxury Seda Tucso Hyudai SUV All New Fortuer Toyota SUV Kwid AMT Reault 4.25 Hatchback RS 7 Performace Audi 1.59* Luxury Seda C300 Cabriolet; S500 Cabriolet Mercedes - Bez 60; 2.25* Luxury Seda Segmets y-o-y growth Apr-Oct FY16 Apr-Oct FY17 y-o-y growth Micro 2, ,621 5, Mii & Compact 166, , ,582 1,070, Super Compact ad Mid Size 23,504 22, , , Executive 1,303 1, ,783 7, Premium ,400 2, Vas 16,351 15, , , Passeger cars 210, , ,274,044 1,330, Multi-utility vehicles 58,121 70, , , Domestic sales 268, , ,598,504 1,774, Exports 59,253 67, , , Total sales 327, , ,975,945 2,209, DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

12 RETAIL INDUSTRY Arvid Ltd split its brads ad retail divisio ad sold 10% stake i its brad busiess subsidiary Arvid Lifestyles to PE firm Multiples Alterate Asset Maagemet for 7.4 b. Heritage Foods Ltd plas to acquire the dairy busiess of Reliace Retail through a slump sale. Future Retail agreed to purchase Heritage Foods retail busiess icludig a chai of 124 Heritage Fresh stores i Hyderabad, Begaluru ad Cheai i retur for 3.65% stake worth 2.95 b i Future Retail. Mytra is set to ope its first store by Jauary 2017 i Begaluru uder its private brad Roadster with digital walls allowig cosumers to avigate ad browse products. Clothig brad Sabhyata plas to take its store cout to 100 by 2017ed from the curret 42. It plas to ope ew stores i Kerala, Gujarat ad West Begal where it does ot have a presece. Srei Group lauched digital platform, iquippo.com, for olie sale ad leasig of costructio ad miig equipmet. Pepperfry (Tredsutra Platform Services Pvt Ltd) lauched house brad 'Magiamo' for modular kitches. Flipkart plas to lauch private labels i home ad furishigs category early ext year. Aditya Birla Group plas to ivest of 200 b i Madhya Pradesh across retail, telecom ad cemet sectors. Keeth Cole plas to close early all its US stores over the ext six moths ad shift its strategy to focus o olie sales. Retail tradig: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Net profit ( b) PAT margi Future Lifestyle Fashios Ltd Shoppers Stop Ltd Tret Ltd V-Mart Retail Ltd V 2 Retail Ltd Net profit: PAT et of prior period ad extraordiary items DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

13 STEEL INDUSTRY Tred i HRC ad CRC prices - Mumbai (`/toe) 42,000 40,000 38,000 36,000 34,000 32,000 30,000 HR Coils (2.00 mm) Fiished Steel productio Source for above charts: CMIE CR Coils (1 mm) '000 Toes % 8,800 8,300 7,800 7,300 6,800 Ja-16 Ja-16 Productio (LHS) Ju-16 Ju-16 Growth (RHS) Accordig to the latest data from the Joit Plat Committee (JPC), part of the Steel Miistry, total fiished steel cosumptio i Oct 2016 stood at 7.1 m toes dow by 1.4% (y-o-y). Durig Apr-Oct FY17, fiished steel cosumptio registered a growth of 2.8% to 48.1 m toes. Fiished steel imports durig Apr-Oct FY17 declied by 40.2% (y-o-y) to 4.1 m toes, while exports of total fiished steel icreased by 42.1% (y-o-y) to 3.6 m toes durig Apr-Oct FY17, accordig to the JPC. Accordig to World Steel Associatio, world crude steel productio grew by 2% y-o-y i Sep 2016 to m toes. Idia imposed a provisioal ati-dumpig duty o imports of hot-rolled steel products from Chia for six moths. Directorate Geeral of Ati-Dumpig ad Allied Duties (DGAD) recommeded ati-dumpig duty i the form of a referece price o import of colour coated steel origiatig ad exported from Chia ad Europea Uio (EU) regio ito Idia. The govermet excluded 40-odd grades of stailess steel used i auto ad egieerig sectors from the Stailess-Steel Quality Cotrol (QC) Order, The Miistry of Steel ad MSTC Ltd lauched a olie market place 'M3 Metal Madi' for medium ad small scale steel maufacturers ad traders. POSCO ad Steel Authority of Idia Ltd siged a Memoradum of Uderstadig (MoU) o techical collaboratio for operatioal improvemets ad huma resource developmet. JSW Group plas to ivest 10 b i West Begal i ext three years to set up a dowstream steel processig uit to produce cold rolled, galvaised ad colour coated sheets. Tata Steel Mierals Caada together with its paret compaies siged defiitive agreemets for cocludig ivestmets of Caadia Dollar 125 m as equity ad Caadia Dollar 50 m as debt with the govermet of Quebec's ivestmet etities, Resources Quebec (RQ) ad Ivestmet Quebec, (IQ) respectively, to set up miig operatios i Quebec Newfoudlad ad Labrador Peisula i Caada. Steel: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Operatig profit ( b) Net profit ( b) Note: Operatig profit: PBDIT et of prior period ad extra-ordiary items (P&E) & Other icome; Net profit: PAT et of P&E PBDIT margi PAT margi J S W Steel Ltd Tata Steel Ltd Natioal Steel & Agro Ids. Ltd Uttam Value Steels Ltd Mukad Ltd DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

14 TEXTILE & GARMENT INDUSTRY Fabrics productio (Millio sq. metres) 6,000 5,800 5,600 5,400 5,200 5,000 4,800 Cotto ad sythetic yar productio ('000 toes) Ja-16 Ju-16 The Adhra Pradesh State Ivestmet Promotio Board approved Gokaldas Exports' proposed garmet maufacturig uit at a ivestmet of 1.8 b i Aatapur district of Adhra Pradesh. Patajali Ayurved plas to eter the textile sector, maufacturig saris, kurtapajamas, shirts ad coats i additio to 'swadeshi jeas' rage. Chemicals ad textiles firm GHCL plas to ivest 670 m i its textile divisio comprisig yar ad home textiles towards purchasig machies i yar divisio, settig up a widmill project, buyig looms ad icreasig processig capacity. Derby Jeas that specializes i Me's casual wear plas to ope a ew maufacturig facility at a ivestmet of 65 m, which will be operatioal ext year. Khadi ad Village Idustries Commissio expects khadi to cross 50 b sales mark by the ed of FY18. Apparel Traiig ad Desig Cetre (ATDC) siged a MoU with Uttar Pradesh Skill Developmet Missio (UPSDM) to reduce gap betwee skilled mapower requiremets ad availability i the apparel idustry. Ethic apparel brad BIBA partered with the Miistry of Textiles, Govermet of Idia to lauch Idia Hadloom Brad garmets at BIBA's flagship Lajpat Nagar store i Delhi Ja-16 Ju-16 Cotto yar productio Sythetic yar productio Source for all above charts: CMIE Textiles & Garmets: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Operatig profit ( b) Net profit ( b) Note: Operatig profit: PBDIT et of prior period ad extra-ordiary items (P&E) & Other icome; Net profit: PAT et of P&E PBDIT margi PAT margi Grasim Idustries Ltd Arvid Ltd Tridet Ltd Raymod Ltd R S W M Ltd DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

15 TWO-WHEELER AND THREE-WHEELER INDUSTRY Two-wheeler: Domestic sales volume (m) Three-wheeler: Domestic sales volume (Nos.) Ja-16 Ju-16 Mahidra & Mahidra acquired Classic Legeds Pvt Ltd to directly or idirectly maufacture, market, sell, ad distribute two wheelers globally by directly or idirectly acquirig/obtaiig licese of brads. Harley-Davidso Idia lauched its 2017 model-year lie up with the additio of two ew models - Roadster priced at 9.7 lakh ad Road Glide Special priced at lakh (all prices ex-showroom Delhi). Suzuki Motorcycle Idia Pvt Ltd lauched Hayabusa i the latest colours ad graphics schemes for 2017 priced at lakh (ex-showroom Delhi). Triumph lauched Boeville T100 i Idia priced at 7.78 lakh (ex-showroom Delhi). The ew Triumph Boeville T100 will be equipped with ABS alog with electroic ride-by-wire with differet ridig modes, tractio cotrol ad torqueassist clutch. Japaese motorcycle maufacturer Kawasaki lauched Nija H2, limited editio Nija H2 Carbo, ad H2R i Idia. Hero MotoCorp plas to ivest up to 2.05 b i oe or more traches, for approximately 26-30% shareholdig i Ather Eergy. The compay also uveiled the ew Daw 125 motorcycle developed specifically for the Africa regio. th Piaggio plas to lauch two ew scooters, the 70 Aiversary Editio ad the Vespa 946 Emporio Armai i Idia i Nov 16. TVS Motor plas to lauch the first vehicle from the TVS- BMW tie-up by March Ja-16 Ju-16 Source for above charts: CMIE BMW Motorrad commeced operatios at the Group's first 100% motorcycle productio plat, outside Germay, i Brazil. Two Wheelers & Three Wheelers Segmets Apr-Oct FY17 Vol (Nos) y-o-y growth Vol (Nos) y-o-y growth Domestic Sales Two wheelers 1,800, ,340, Three wheelers 54, , Exports Two wheelers 184, ,367, Three wheelers 28, , Two & three wheelers: Key fiacial idicators (Jul-Sep 2016) Compay Net sales ( b) Operatig profit ( b) Net profit ( b) Note: Operatig profit: PBDIT et of prior period ad extra-ordiary items (P&E) & Other icome; Net profit: PAT et of P&E PBDIT margi PAT margi Hero MotoCorp Ltd Bajaj Auto Ltd T V S Motor Co. Ltd Eicher Motors Ltd Atul Auto Ltd DISCLAIMER: The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliace or takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.

16 Passeger vehicle Commercial vehicle Auto Compoets 2 & 3- wheeler Bakig Services Hospitality Retail Gems & Jewellery Healthcare & Pharmaceutical Hi-Tech IT Hardware Steel Logistics & Supply Chai Textile & Garmet For more iformatio, please cotact - Akur Sigh: Du & Bradstreet Iformatio Services Idia Pvt. Ltd., ICC Chambers, Saki Vihar Road, Powai, Mumbai CIN - U74140MH1997PTC Tel: / 92 / 94 Fax: DNB_Idia-ecoomy@db.com Cotact FedEx: fedex.com/i DISCLAIMER: This Newsletter is strictly for private circulatio to the addressees oly ad ot for re-circulatio. Ay form of circulatio, replicatio, reproductio, dissemiatio, copyig, disclosure, modificatio, distributio ad/or publicatio of this Newsletter or cotets hereof, icludig by cachig, framig or similar meas, is strictly prohibited without the prior writte coset of Du & Bradstreet Iformatio Services Idia Pvt. Ltd. The cotets of this Newsletter are solely meat to iform. The iformatio cotaied i this Newsletter should be idepedetly verified before placig reliaceor takig ay decisio o the basis of the iformatio. Du & Bradstreet ad FedEx Express expressly disclaim all resposibility ad accept o liability for the cosequeces of ay perso actig, or refraiig from actig, o such iformatio. Copyright 2016, Du & Bradstreet, All rights reserved.