Japanese Investment in India - Report (download at IndiaAnalysis.com)

Japanese Investment in India

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An analysis of Japanese trade and investment in India

Japanese investment in India

ABOUT THE AUTHOR

India Analysis provides research, analysis and advisory services on Indian business. For more details please visit the website IndiaAnalysis.com. India Analysis is a part of Heernet Ventures Limited.

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Publication date: October 2009

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© Heernet Ventures Limited 2009 (All Rights Reserve d)

IMPORTANT INFORMATIONEvery attempt has been made to ensure that the information in this report is correct at the time of publication. Heernet Ventures Limited and its directors do not

accept any liability for any errors or omissions in the report’s content. This report does not in anyway constitute investment advice or investment

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The content of this report can not be reproduced without the permission of the authors. Unless specified, the views expressed in this report are purely those of

the author.


Contents

1. India country profile 5

2. Analysis of Japanese – Indian trade and investment 13

3. Sector-specific analysis 23

Automotive 24

Automotive components 25

Chemicals 26

Cosmetics 27

Electronics 28

Financial services 29

IT services 31

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Media and marketing 32

Oil and gas 33

Pharmaceuticals 34

Power 35

Telecoms 36

Textiles 37

Transportation 38

4. Our services 39


Foreword

Japanese investment in India has been relatively low compared to the investment India has received from countries

such as the USA. Much of the Japanese investment to date has focused on industry sectors such as automotive

vehicles and components, IT and engineering. But recent investment activity suggests that Japanese companies are

becoming more emboldened with respect to pursuing opportunities in India and are beginning to broaden their

interest into new sectors. NTT Docomo’s investment in Tata Teleservices and Daiichi Sankyo’s acquisition of Ranbaxy

are both landmark investments.

During the Indian Prime Minister’s visit to Japan in 2008, a number of new initiatives were announced to promote

both trade and investment and improve things such as air transport links. Future opportunities for Japanese

companies are extremely attractive with sectors such as power generation and transmission, renewable energy,

Harjinder Singh-Heer

Director

Heernet Ventures Limited

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transportation and chemicals requiring substantial foreign investment if India is to meet its longer term growth

objectives.

This study aims to provide Japanese companies considering opportunities in India with a short introduction to the

country and its foreign investment regime. It also assesses the level of investment to date in a number of sectors of

the Indian economy.

We have built a strong track record of advising companies on their entry strategy for the Indian market. Key areas

where we assist our clients include initial market analysis, development of an entry strategy, identification of suitable

investment opportunities and commercial due diligence. From our offices in India, we can deliver comprehensive, on

the ground support at every stage of the investment process.

Email: [email protected]

Tel: +44 (0) 208 180 7223

India Country Profile

1

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The economic crisis of 1991 was a turning point for India

Pre - 1991 1991 1990s to present Future

• Closed economy

• Growth rate of 2% p.a.

• Manufacturing economy dominated by large, family controlled groups and state owned companies

Bus

ines

s en

viro

nmen

t

• Currency crisis – country in danger of running out of

• IT sector emerges as major export-focused industry

• GDP growth increases to 8% p.a.

• Indian companies expand abroad

• Increased focus on improving energy and transport infrastructure to lift growth to 10% p.a.

• Government keen to drive investment in education and healthcare

• Minimal foreign presence

inve

stm

ent • Many areas of the economy • Remaining sectors (e.g.

Pre-liberalisation Crisis Liberalisation Globalisation

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danger of running out of foreign currency reserves

• Government forced to begin process of economic liberalisation

• Manmohan Singh (current prime minister) appointed finance minister and begins financial and economic reform process

• Minimal foreign presence

• Complex restrictions on foreign investment designed to protect domestic companies F

orei

gn

inve

stm

ent • Many areas of the economy

are opened up to foreign investment and full ownership

• Remaining sectors (e.g. organised retail) likely to be opened up for foreign players

Japa

nese

inve

stm

ent i

n In

dia

• Relation started with provision of development aid and loans (1958).

• Largest investment was the joint venture between Indian government and Suzuki Motor Corporation, resulting in the formation of Maruti Udyog (1982).

• FDI investment of US$332 million (1951-91).

• Contributed 4.3% in India total FDI inflow, especially in automotive sector (1991-07).

• Bilateral trade improved, with a growth of 22% in imports and 11% in exports (2001-07).

• Rise in interest in private sector with about 840 companies operating their branches in India.

• Entering into new agreements to promote FDI like CEPA, DMIC and civil aviation arrangements.

• Relaxing the FDI and trade norms.

• Planning to explore natural gas resources in India in 2010, through private sector cooperation.


India is targeting economic growth of 10% p.a.

India China Brazil Russia

Population (million) 1,189.7 1,346.8 192.0 141.8

Workforce (million) 480.0 764.0 92.9 74.1

Literacy rate 70% 91% 89% 99%

Key observations

• Among the BRIC economies, India has the greatest growth potential

• India has not yet undergone industrial growth in the way that China has.

• India benefits from a young population (compared to other BRIC countries) which will provide a large workforce in the medium term

Key economic indicators for the BRIC countries

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GDP (US$ billion) 2008 1,171 3,823 1,573 1,671

2009 1,351 4,239 1,461 1,428

GDP (Local currency billion) 2008 53,218 26,555 2,890 41,540

2009 58,851 29,005 3,018 43,128

Real GDP growth (08-09) 6.1% 8.1% -0.6% -7.8%

GDP per capita (US$) 2008 670 2,839 7,501 11,786

• Urbanisation and growing middle class India’s urban population has grown by 150 million in the last 15 years.

• Middle class is approx. 300 million (growing by 10% p.a).

• Consumer spend is booming in the urban areas –driven by the rapidly growing middle class and greater levels of disposal income.

Source: Business Monitor International


Delhi

Kolkata

Economic development varies considerably on a regio nal basis

Delhi and Northern states

“Cow belt”

The “cow belt” states (across the centre of India) have not experienced strong economic growth and remain relatively poor.

Delhi and the states of Haryana and Punjab have experienced major investment in IT, services, manufacturing and agriculture.

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Mumbai

Chennai

Major industrialised states

Emerging industrial states

Four largest cities (combinedpopulation of over 75 million)

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South India

The southern states were the first to benefit from the growth of the Indian IT industry in the 1990s. States with low level of industrialisation


Many industries are still underdeveloped, but will be key in driving future economic growth

Sector Current characteristics Developments

Manufacturing � Product quality in many sectors is poor and not good enough for export markets – but is improving

� Lack of good distribution infrastructure means that meeting international demand is difficult

� Sectors such as automotive components and textiles are now competing globally.

� Strong domestic demand for products such as steel and building materials

� Investments: Volkswagen and BMW are both building factories in India

Infrastructure and energy

� Poor transport infrastructure (roads, railways, ports and airports)

� Over US$320 billion in investment expected through to 2012. Investment sought through PFI-type initiatives with

Trends in key sectors

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and energy ports and airports)

� Energy shortages in most parts of the country

2012. Investment sought through PFI-type initiatives with foreign investors

� Investment of US$200 billion for power and US$40 billion for ports and airports

� Investments: New international airport for Delhi, Delhi Metro

Consumer � General and food retailing is highly fragmented and dominated by mom and pop stores

� No proper logistics infrastructure retards development of retail chains

� Large market opportunity in retail (US$640 billion by 2010 from US$300 billion in 2005)

� World class, out of town shopping malls are growing rapidly in urban areas (from 25 malls in 2003 to 375 by 2008)

� Investments: Wal-Mart joint venture with Bharti in retailing

9


Consumer spend has grown very rapidly in the last f ive years

� Increased prosperity has driven strong growth in de mand for consumer products

� Growth in these sectors is spreading from the large cities to smaller cities and semi-urban areas

CAGR for sales (2005-09) for key consumer sectors

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10.0%

12.8%

8.4%

12.2%

10.8%

11.9%

0% 5% 10% 15%

Retail sales

Clothing

Cosmetics

New car sales

Healthcare

Pharmaceuticals

% CAGR (2005 - 09)

Source: Industry estimates


The global economic downturn has had a short term i mpact in India, but the long term fundamentals are still attractive

� India’s non-agricultural economy has achieved doubl e digit GDP growth over the last 3 years, but is forecast to slow to between 6%-7% in 2009/2010.

� Whilst India’s banking sector has escaped the banki ng crisis (due to a conservative regulatory environment), a fall in demand for Indian IT and bu siness services primarily from the US is having a negative economic impact on the major cities

� The long term perspective is more attractive with I ndia’s GDP growth expected to exceed China by 2015. India’s GDP growth will be 2 – 3 times that o f developed countries such as UK and USA.

GDP growth in India (2000 – 2011) GDP growth for selected countries through to 2020

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GDP growth in India (2000 – 2011) GDP growth for selected countries through to 2020


India’s FDI policy

Sector FDI limit (%)

Telecoms 49 - 74

Coal and lignite 49 - 74

Mining 74

Private sector banking 74

Domestic airlines 40

Petroleum (other than refining) 100

� India’s FDI policy operates under a range of approval processes and limits on foreign equity ownership

� The Automatic route (which is open to many sectors) only requires companies to inform the Reserve Bank of India within a month of receipt of funds and issuance of shares

� In some sectors, prior government approval is required

Indian FDI limits

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Investment companies (for infrastructure/services) 49

Atomic materials 74

Defence industry 26

Satellite broadcasting 49

DTH broadcasting 20

Cable TV networks 49

Insurance 26

Trading 51

Print media 26 - 100

� Sectors not open to FDI:

– Housing and retail estates (except integrated residential/commercial developments and townships)

– Retail trading

– Lottery and gambling

– Agriculture (except tea plantations)

Source: DIPP

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Analysis of Japanese-Indian trade and investment

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Japanese companies have a strong track record in fo reign direct investment

Sector 2004 (US$ million)

Number of deals

Average investment per deal (US$

million)

Finance and Insurance 11,613 1,579 7.4

Transport (Manufacturing) 3,601 145 24.8

Chemical 3,530 79 44.7

Transportation 2,386 163 14.6

Service 2,360 158 14.9

Mining 2,054 17 120.8

� Japanese companies have a strong track record of foreign direct investment (FDI)

� In 2004 (latest year available), Japanese companies were involved in almost 2,500 overseas investments

� Key sectors that attracted Japanese FDI include financial services and a number of industrial sectors such as transportation equipment and chemicals

Japanese FDI by industry

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Mining 2,054 17 120.8

Electrical 2,039 113 18.0

Trade 1,884 132 14.3

Metal 1,391 65 21.4

Machinery 1,108 71 15.6

Food 1,088 50 21.8

Branches 788 N/A N/A

Others (Manufacturing) 702 92 7.6

Real Estate 370 15 24.7

Construction 280 11 25.5

Textile 172 26 6.6

� In terms of investment size, the largest average investment per deal is within the mining industry

� Japanese companies also invest heavily in establishing subsidiaries in India (both wholly and part owned).

Source: JETRO

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India accounts for a relatively modest 4% of Japane se foreign direct investment

� Japanese FDI into India did not show any material i ncrease until 2006, when it reached US$512 million – but since then it has grown rapidly to ove r US$5.5 billion (2008)

� India accounts for approximately 4% of Japan’s FDI in 2008. The USA is the largest recipient accounting for a third.

Japanese FDI into India (1996 – 2008)% of Japanese FDI by recipient country (2008)

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262485 460

261 175 150 146 124 139 266512

1,506

5,551

0

1,000

2,000

3,000

4,000

5,000

6,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Jap

ane

se F

DI i

nto

Ind

ia (U

S$ M

illio

ns)

USA, 34.2%

China, 5.0%

India, 4.2%

Brazil, 4.1%

Russia, 0.2%Netherlands,

5.0%

UK, 5.2%

Cayman

Islands, 17.2%

Others, 24.9%

Source: JETRO


Indian investment into Japan is less than US$1 mill ion

� Indian FDI into Japan has been insignificant

� In 2008, it was US$1 million and prior to that has never exceeded US$3 million in a single year

� The BRIC countries as a whole account for a very small proportion of FDI into Japan

� Chinese investment is also relatively low at only US$437 million (2008)

92

66

66

53

37

33

13

6

3

1

1

Sweden

Taiwan

Spain

Australia

China

Italy

Malaysia

Thailand

Philippines

India

Russia

FDI into Japan by country (2008)

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� The largest investor is the USA, which invested almost US$12 billion in 2008

� Singapore and the Cayman Islands also register high among FDI investors, but this is primarily due to their attractiveness as domains for structuring FDI investments

16

11,792

3,592

2,716

2,692

1,873

1,185

477

279

257

213

204

177

92

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

U.S.A.

Cayman Islands

Singapore

Netherlands

Switzerland

Germany

Luxembourg

R.Korea

Hong Kong

Canada

New Zealand

France

Sweden

Inward investment into Japan (US$ Millions)

Source: JETRO


Japanese imports from India reached US$4 billion in 2008

� Japanese imports from India reached US$4 billion on 2008

� Over the last 3 years, Indian imports have grown by a third

� The value is insignificant in the context of China’ s US$127 billion in exports to Japan

4,153India

Japanese imports by country (2008)Japanese imports from India

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127,644

70,836

32,298

31,161

27,252

26,445

19,809

19,388

17,368

16,942

4,153

0 40,000 80,000 120,000

China

United States

United Arab Emirates

Australia

Korea

Indonesia

Taiwan

Germany

Malaysia

Qatar

India

Japanese imports by country (US$ Millions)

3,216

4,058 4,153

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2005 2006 2007

Jap

ane

se im

po

rts

fro

m In

dia

(US$

Mil

lio

ns)

Source: JETRO


Japanese exports to India amounted to US$6 billion

� Japanese exports to India have doubled in three yea rs to US$6.1 billion (2007)

� Again, this value is insignificant when compared to trade with China and USA

6,152India

Japanese exports by destination country (2008)Japanese exports to India

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143,383

109,060

54,199

44,780

38,818

25,553

22,581

21,784

18,513

16,268

6,152

0 40,000 80,000 120,000 160,000

United States

China

Republic of Korea

Taiwan

Hong Kong

Thailand

Germany

Singapore

Netherlands

United Kingdom

India

Japanese exports by country (US$ Millions)

3,539

4,457

6,152

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2005 2006 2007

Jap

ane

se E

xpo

rts

to In

dia

(U

S$

Mil

lio

ns)

Source: JETRO


Japanese investment in India has focused on sectors such as automotive and engineering

� In the last two years, Japanese companies have made a number of large investments in India.

� The two transactions that stand out are Daiichi San kyo’s investment in Ranbaxy and NTT Docomo’s investment in Tata Teleservices

54.8 Telecoms

Japanese investment in India by industry (2008)

Player Segment Value Details

Nomura Asset Management

Financial services

INR 3.1 billion

Nomura Asset management, a wholly owned subsidiary of Nomura Holdings, acquired

Recent Japanese investments in India

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792.7

385.0

145.7

59.1

0 200 400 600 800 1,000

Automotive

Electrical equipment

Trading

Services

Japanese investment in India by industry (US$ Millions)

Management services billion subsidiary of Nomura Holdings, acquired 35% stake in LIC Mutual Fund AMC. LIC Mutual Fund AMC holds average assets under management of INR. 324.1 billion.

Nomura is also active in investment banking.

Toshiba Corporation

Power plants US$160 million

Toshiba Corporation launched a joint venture with JSW to manufacture turbines for power plants in Tamil Nadu. Toshiba has a 75% stake.

Daiichi Sankyo Pharma INR 197.8 billion (US$4.6 billion)

Daiichi Sankyo is the Japan’s third largest pharmaceutical company, acquired 51% stake in Ranbaxy Laboratories, India’s largest producer of generic drugs.

NTT Docomo Telecom US$2.7 billion

NTT Docomo Inc. acquired 26% stake in Tata Teleservices. NTT Docomo is the world's leading mobile operator and provider of advanced mobile services.

Source: JETRO, Industry analysis


Sector-specific analysis

Sector Key observations FDI rules and limits Examples of Japanese entrants

Automotive � Largest sector in terms of FDI from Japan.

� Enormous scope for future growth. Aims to attract investment of US$35-40 billion by 2016.

100% through automatic route. Toyota, Nissan, Suzuki, Yamaha, Honda

Automotive Components

� Growing in tandem with the automotive sector 100% through automatic route. Sumitomo Corporation, Yanmar Group, Stanley Electric, Toyoda Gosei.

Chemicals � Has accounted for a substantial share of FDI (12% of Japanese FDI into India)

� Future demand for FDI is likely to remain strong due to excellent domestic demand

100% through automatic route. Mitsubishi Chemical Corporation, Nitto Denko Corporation, Sakata Inx Corporation, Idemitsu

Cosmetics � No material FDI from Japan to date Through single brand retailing (51%) and through automatic route in wholesale retailing (100%).

No examples

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Electronics � Increasingly important sector with Japanese companies establishing both distribution and manufacturing operations

No restrictions on foreign investment in electronic hardware.

Toshiba, Fujitsu, Panasonic (Matsushita), Shinko Electric Co.

Financial services

� India’s retail and wholesale banking and insurance industries provide enormous growth opportunities

� Emerging as an important target for Japanese investment

Financial collaboration (51%), Insurance sector (26%), Public banks (20%) and Private banks (74%).

No restriction in non banking financial services.

Nomura Holdings Inc., Mizuho Financial Group, Sompo Japan Insurance Inc., Shinsei Bank

IT services � Arguably one of India’s most important export generators

� Japanese companies have made investments in areas such as semi-conductors, network solutions and data storage hardware and services

100% FDI permitted. Hitachi Data System, OKI Electric Industry Co., NTT Communication Corporation

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Sector Key observations FDI rules and limits Examples of Japanese entrants

Media and Marketing � The only major activity has been by Japanese companies in the marketing services industry

� Animation industry may provide some good prospects for future collaboration

Range from 20% limit on FDI in radio to no limits in magazine publishing (non current affairs titles only)

Dentsu, ADK (Asatsu-DK)

Oil and Gas � No major investment to date, but some emerging interest in natural gas resources

Private refineries (100%) and government owned refineries (26%).

Pharmaceuticals � Japanese companies have invested through alliances with Indian firms to conduct their contract manufacturing and clinical trials.

� Also saw one of the biggest acquisitions in India with Daiichi Sankyo acquiring Ranbaxy

100% FDI is permitted, except in some specialist areas.

Daiichi Sankyo, Astellas Pharma Inc., Eisai Corporation

Power � Indian government is keen to attract significant foreign 100% in power generation, Shinko Electric Co.; Hitachi-GE

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investment in both traditional and renewable power industries for both production and distribution

� Leading Japanese companies are active.

transmission and distribution (except nuclear power projects).

Nuclear Energy; Japan Bank for International Corporation (for funding power projects).

Telecoms � Rapidly growing segment of the Indian economy.

� Has attracted new entrants such as NTT Docomo into the mobile segment and KDDI into wholesale services

74% FDI in various telecom services, (requires FIPB approval above 49%)

NTT Docomo, KDDI Corporation, Softbank Telecom Group

Textiles � The Indian textiles industry has suffered at the hands of strong competition from other Asian countries

� Access to India’s raw materials and a large workforce are proving attractive to Japanese companies

100% FDI is permitted through automatic route.

Tokai Senko, Nihon Sanmo Dyeing, Kawashima Selkon Textiles Co.

Transportation � Transport infrastructure has been a major recipient of overseas aid from the Japanese government

� Projects such as Delhi Mumbai Industrial Corridor and Delhi Metro have benefited

Except railways, FDI is permitted in most industry segments (with various ownership limits).

Japan ODA.

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The Japanese and Indian governments have signed a n umber of agreements to enhance trade between the two countri es

Agreements Description

Comprehensive Special Economic Partnership Agreement (CEPA)

Aims to enhance trade in both goods and services

Identifies a number of measures for trade promotion, promotion, facilitation and liberalization of investment flows and measures for promoting economic cooperation in identified sectors.

The countries are still negotiating on a number of issues including items in the negative list of products to be proposed for tariff-cuts and quality control standards for import of agricultural goods.

Delhi -Mumbai Industrial Corridor The Delhi-Mumbai Industrial Corridor has been identified as a key industrial infrastructure project in

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Delhi -Mumbai Industrial Corridor (DMIC)

The Delhi-Mumbai Industrial Corridor has been identified as a key industrial infrastructure project in India.

The countries have agreed to develop the Delhi-Mumbai Freight Corridor and to cooperate on other projects such as power facilities, rail connectivity to ports en-route and to develop ports on the west coast of India.

The working authorities for the project include Vice-Minister METI and Secretary and Department of Industrial, Policy and Promotion.

Japan has announced to provide US$4 billion for the project.

Relaxation of Civil Aviation arrangements

This agreement includes provisions for designated airlines in both countries to offer increased scheduled services.

This includes; three more points in each country for code sharing operations; enhancing the capacity to 21 services weekly; designated airlines for cargo services with a weekly frequency of seven; and setting up a mechanism on code sharing arrangements including the domestic code share.

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Automotive industry

Key observations

� The largest recipient of Japanese FDI, with INR 800 billion in 2007.*

� Japanese investment began in the mid-80s with Suzuki’s joint venture with the state-owned Indian automotive company, Maruti Udyog. The partnership saw the launch of Maruti Suzuki which has become one of India’s leading car manufacturers.

� In recent years, most of the leading Japanese automotive manufacturers have entered the Indian market in the two wheeler, passenger cars and commercial vehicle segments.

� 100% FDI is allowed under automatic route.

Company Selected investments

Toyota � Has partnership with the Indian group, Kirloskars. Current market share is approx. 3%. Strategy is to develop India as a key production centre for compact cars.

� Investment of INR 32 billion in plant in Karnataka

Nissan � Established a production unit for manufacturing of car products at Chennai, India through a 50:50 joint venture with Mahindra Alliance for an estimated consideration of US$900 million (February 2007).

� Joint venture with commercial vehicle manufacturer, Ashok Leyland. Investment of INR 20 Billion in majority controlled joint ventures to produce vehicles and components

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� There is no regional concentration of Japanese Automobile companies, but states such as Haryana have proved particularly attractive to new entrants.

� Automotive production in India has increased with a CAGR of 12.6% (2001-08) and reached 10.8 million units in 2007-08. India is expected to become world’s third largest automobile market by 2030 (UNCTAD).

� The Indian government sees the automotive sector as a key employer in the future and is keen to attract more foreign investment. The Automotive Mission Plan 2016 has a target to attract investments of approximately US$35 billion to US $40 billion by 2016.

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� Nissan Renault has established a joint venture with Bajaj Auto to manufacture ultra low cost cars.

Honda � Entered market in 1980s in joint venture with Hero Group to manufacture motorcycles. In the car market, Honda Siel Cars India incorporated in 1995 as a joint venture between Honda and Siel Limited.

� Plant at Noida with a second production plant (in Rajasthan) to become operational in 2009. Manufacturing capacity of 350,000 units p.a. with focus on small car market

Yamaha Motors

� Yamaha Motor (70% stake) formed a joint venture with Mitsui Co. (30% stake) to establish a motorcycle manufacturing company, India Yamaha Motor

Sumitomo � Car subsidiary, Mazda has Indian joint venture, Swaraj Mazda

*Department of Industrial Policy and Promotion


Automotive components industry

Key observations

� Since 2000, the automotive components industry has attracted FDI of US$530 million.*

� The industry generated a turnover of US$18 billion in 2007-08 with a CAGR of 27.2% (2000-08); industry forecasts estimate the industry will be worth US$40 billion by 2015-16.

� In the last 5 years, there have been at least 8 major investments by Japanese auto companies with a value of INR 1.2 billion.

� Japanese investments began in the early 1980s with the partnership between Maruti Udyog and Suzuki Motors.

� The FDI regime is relaxed with 100% equity ownership


Toyota Group � Acquired 1.5% stake in Tube Investment of India (TII) for INR 190 million (September 2009).

Sumitomo Metal Industries

� Formed joint venture with Amtek Auto (50%) and Sumitomo Corporation (10%) for production and distribution of crankshafts (May 2009).

Nippon Leakless

� Joint venture with Talbros to manufacture gaskets and forgings for Japanese manufacturers in India

Toyoda Gosei � Invested INR 450 million to establish a new subsidiary, Toyoda Gosei India, in Rajasthan, India, to provide safety system parts such as steering wheels and airbag modules (June 2008).

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� The FDI regime is relaxed with 100% equity ownership permitted for both automotive component manufacturing.

� The industry has hundreds of players, but the largest companies are primarily located in the Delhi region, Maharashtra, Chennai and parts of Andhra Pradesh

� The Indian government is keen to increase India’s share in the global auto components market from 0.9% to 2.5% by 2015. It estimates that to reach this target it will require an additional US$5 billion in FDI.

Stanley Electric

� Acquired 19% stake in Lumax Industries which provides automobiles lights and gear shifters (February 2007).

Bellsonica Corporation

� Formed joint venture with Maruti Udyog (70% stake in JV) for an investment of INR 120 million, to establish Bellsonica Auto Component India to manufacture car body parts for Maruti (July 2006).

Yanmar Group

� Acquired 12% stake in International Tractors for INR 20 billion (October 2005).

Mitsubishi Heavy Industries

� Acquired an India-based gear cutting tool manufacturer, SRP Tools – now known as Mitsubishi Heavy Industries India Precision Tools (February 2005).

25* Automotive Component Manufacturers Association of India (ACMA).


Chemicals industry

Key observations

� India offers both an attractive domestic market and export base for the chemicals industry

� The Indian chemical industry is projected to reach US$70 billion industry by 2012 (i) with exports forecast to reach US$300 billion by 2015 (ii)

� Approximately 10% of Japanese technical collaborations in India have been in the chemicals industry (August 1991-March 2006).

� Indian chemicals sector attracted FDI of US$749 million in 2008-09. The industry accounted for 12.2% of the Japanese FDI into India (FICCI).


Nitto Denko Corporation

� Invested ¥300 million to establish a subsidiary in Haryana for the distribution of adhesive tapes (September 2009).

Sakata Inx Corporation

� Invested INR 500 million to establish a manufacturing plant at Gujarat, India for producing printing inks for packaging industry through its Indian subsidiary (September 2009).

Dainippon Ink and Chemicals

� Invested US$33 million to establish a printing ink manufacturing plant in Gujarat (June 2008).

Mitsubishi Chemical Corporation

� Invested approximately ¥ 180 million to establish a subsidiary Mitsubishi Chemicals India in Haryana for production and marketing of the company's products (March 2008).

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� Japanese Investments started in the late 1990s. In 2000, Mitsubishi Chemicals Corporation established an India operation with an investment of INR 14.8 billion – this was the largest Japanese investment in the chemicals Industry.

� 100% FDI is allowed.

� Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) have been established to attract more FDI into the sector. These regions consist of Special Economic Zones, Industrial Parks, and free trade and warehousing zones offering investors attractive tax and investment regimes.

26

2008).

Toyo Ink � Established an ink factory in India to manufacture ink for sheet feed offset printing (February 2008).

Sekisui Chemical

� Established its subsidiary, Sekisui Chemical India in Delhi to import and distribute its products, with an investment of INR 150 million (May 2007).

Nippon Bee Chemical

� Formed a joint venture with Berger Paints India (49% stake) to establish a company for manufacturing of plastic coatings for an investment of INR 90 million (April 2007).

Idemitsu � Through its subsidiary, Idemitsu Lube Pte Ltd. entered intoa five year technical collaboration with Savita Chemicals(November 2006).

Nippon Paint � Nippon Paint invested INR 800 million to establish a subsidiary, Nippon Paint (India) in Chennai, India (July 2006). The company invested an additional INR 4.5 billion to expand the operations (2008).

i - Department of Policy and Promotion; ii - Associated chambers of commerce and industry of India;


Cosmetics and personal care industry

Key observations

� The industry has not yet seen any substantial Japanese FDI, but many foreign manufacturers distribute their products in India

� In fact, FDI has been relatively low, reaching only US$151 million in the 9 years to April 2009

� For the retail segment, FDI rules allow foreign ownership of up to 49% for single brand retailing in the cosmetic sector, and 100% for wholesaling.

� For manufacturing, foreign players can own up to 49% of a joint venture.

� The industry consists of a number of domestic players who have typically focused on low priced, products targeted at both India’s

Company Key product areas

Hindustan Unilever

� Home care (Laundry); Personal care (Personal wash, Skin care, hair care, oral care, deodorants and Color cosmetics); Health care.

Dabur India � Health care (Hair care, oral care, Skin care) and Home care. Leading in the Ayurvedic products.

Emami � Health care (Baby products, Skin care, Hair care, ailments, health supplements). Focuses on Ayurvedic products.

Leading Indian cosmetics and personal care companies

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typically focused on low priced, products targeted at both India’s urban and rural markets and multinationals such as Unilever who have been active in India for many decades

� In recent years, as urban affluence as grown many foreign brands have become available

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Ayurvedic products.

VLCC Group � Body firming and shaping solutions, Skincare and hair care solutions. Focuses mainly on beauty products.

Shahnaz Hussain

� Hair care, Skin care. Focuses mainly on beauty products.

VICCO � Health care (Skin care, oral care). Focuses on Ayurvedic products.

Godrej Consumer Products

� Health care (Hair care, Skin care (soaps, toiletries); Household care (fabric care, floor and dish cleaners).

Paramount Group

� Health care and Skin care (deodorants, shaving gels, bindis, and hair gels)


Electronics industry

Key observations

� The electronics industry has been an important destination for Japanese FDI, accounting for approx. 7% of investment in the 5 years to 2005.*

� In the last five year, there have been 3 major deals including the Matsushita’s investment of INR 2 billion to acquire 80% stake in Anchor Electronics in India.

� The first Japanese investment in the electronics industry began in the early 1990s with the entry of players such as Toshiba, Sony, Panasonic.

� India allows 100% FDI in electronics hardware.

� The Government has recently set up Electronic Hardware


Elpida Memory

� Elpida Memory, a DRAM memory company established Edison semiconductor in India

Fujitsu � Invested in India to launch ultra portable laptops in India (January 2008).

Matsushita (Panasonic)

• Acquired 80% stake in Anchor Electronics for INR 2 billion.� Matsushita also established a subsidiary, Panasonic Home

Appliances India Co.

Hitachi • Entered into joint venture with Toshiba (25%) and Matsushita Electric (25%) to launch IPS Alpha Technology, for manufacturing and distributing LCD panels for TV. It holds a 50% stake in the joint venture

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� The Government has recently set up Electronic Hardware Technology Parks to encourage investment; these have been established in a number of major cities including Chennai, Bengaluru and Cuttack.

� The electronics sector is expected to be worth US$62 billion by 2010

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holds a 50% stake in the joint venture

Sony Corporation

� Invested in India through its subsidiary Sony India. The company also set up Sony Ericsson company, a mobile handset company in India.

Toshiba � Established its subsidiary, Toshiba India, for marketing of its electronic products.

*Ministry of Commerce and Industry


Financial services industry

� India is the fifth-largest country in Asia in terms of total insurance premium. It has grown with a CAGR of 28.1% (2002-07). In 2007, FDI of approximately INR 2.5 billion was received in the sector.

� In the last two years, eight Japanese foreign institutional investors have obtained the required SEBI registration and have entered the Indian market.

� In the last five years, three major deals have been done by Japanese financial companies, totalling an amount of INR 88.7 billion.

� In 1991, banking and insurance deregulation began ; it included the relaxation of restrictions on private and foreign

Key observations Sector Foreign ownership allowed

Financial sector � 51% allowed under a financialcollaboration.

Insurance � Up to 26%.

Non Banking financial services

� Up to 100%.

Private sector bank � 100% allowed to a foreign bank or itsregulated wholly owned subsidiary inIndian Private sector bank.

� 74% through automatic root.

� Must have credit rating.

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included the relaxation of restrictions on private and foreign investment. From 1992, foreign institutions were allowed to invest in Indian securities.

� The government is considering raising some foreign ownership limits. In the insurance sector, the government is considering raising the FDI limits from 26% to 49%.

� Must have credit rating.

Public sector unit banks � Up to 20% through automatic route.

Financial Sub-sectors (commodity exchanges, asset reconstruction, insurance and credit information)

� Up to 49%.

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Financial services industry

Company Example investments

Asset Management

Nomura Holdings � Through its subsidiary, Nomura Asset Management Co. Ltd. acquired 35% stake in LIC Mutual Fund AMC for approximately INR 3.1 billion (July 2009).

� Also has an established investment banking operation in India.

Shinsei Bank � Entered into an alliance with UTI AMC to invest US$300 million from Japanese retail investors (August 2006).

� Launched Shinsei UTI India Fund in 2006 and Shinsei UTI India Infrastructure Equity Fund in 2008.

Securities market

Mitsubishi UFJ Securities � Established an Indian subsidiary, Mitsubishi UGJ Securities (April 2008). The company has collaborated with ICICI Bank to provide financial services to Japanese investors in India.

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Mizuho Financial group � Formed an alliance with Tata Capital to launch Tata Mizuho Financial group. It offers a range of financial services including investment banking, private equity, broking and wealth management (February 2008).

Daiwa Securities SMBC � Launched its second India-dedicated equity fund for Japanese investors (March 2009).

� Established an Indian subsidiary to offer financial services to Japanese corporations, financial institutions and governments (July 2006).

Insurance

Sompo Japan Insurance � Established Universal Sompo General Insurance Co., through a joint-venture between Allahabad Bank, Sompo Japan Insurance Inc. (26% stake), Dabur Investments, Karnataka Bank and Indian Overseas Bank (November 2007).

Dai-ichi Mutual Life Insurance � Bank of India, Union Bank of India and Dai-ichi Mutual Life Insurance company (26% stake) entered into a joint venture to form Star Union Dai-ichi Life Insurance, an insurance provider (September 2007).


IT services

Key observations

� India’s IT sector is arguably India’s most successful export-orientated industry.

� Indian companies such as Wipro, Infosys and TCS have established substantial international operations.

� Japanese companies have been active technology suppliers to Indian IT companies (837 ‘collaborations’ in 2006 alone).**

� Japanese companies are particularly investing in Tier I cities because of their better infrastructure, IT special economic zones and parks. They have also moved from being hardware suppliers to developing joint ventures and partnerships for the development of software and related services


Hitachi Data Systems

� Partnered with HCL Infosystems to provide IT storage solutions in India (September 2009).

� Launched a Research and development facility in Bangalore.

NTT Data Corporation

� Acquired 68.7% stake in Vertex Software – a software developer specialising in mobile and web applications development.

NTT Communication Corporation

� Partnered with Tulip IT Services to offer IT and communication services in India.

Turbolinux � Formed Joint Venture with India Action Plan Company

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services

� India’s IT markets are expected to sustain growth of over 20% p.a. over the next 3-5 years

Turbolinux � Formed Joint Venture with India Action Plan Company (45% stake in JV) and established Turbolinux India company to provide software services.

NEC Corporation

� Entered a joint venture with HCL Technologies (49% stake in JV) - NEC HCL Systems Technologies - to provide IT enabled services in India.

EXA Corporation

� Formed strategic partnership with HCL Technologies, for IT solutions and system integrated services with an investment of US$100 million.

Hitachi � Entered into a partnership with Intelligroup and Satyam Computer Services, to launch Hitachi Global Solution Center to provide IT Solutions in India.

31*NASSCOM

** Ministry of Commerce and Industry


Media and marketing Sector

Key observations

� Foreign ownership restrictions in the media sector have been substantially relaxed in the last five years, particularly in the television and publishing sectors.

� The sector has had relatively limited investment from Japanese companies. Much of the investment has been by leading Japanese agencies in the marketing services industry

� Foreign investment into the media industry has primarily been driven by companies from English language markets -in particular, the USA and UK

� For Japanese companies, there are clear cultural and language barriers when considering investment in Indian


Dentsu Inc. � Formed a joint venture with Connecturf India (49% stake), to launch Clickstreamers, a digital advertising agency in India (May 2008).

� Established an alliance with the Indian marketing company, Mogae Consultants. Dentsu holds 74% stake in the company.

ADK

(Asatsu-DK)

� Formed joint venture with JWT India (a subsidiary of WPP Group), to form ADK Fortune, an advertising agency.

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language barriers when considering investment in Indian media.

� In the longer term, there should be opportunities for Japanese companies to outsource some media production work in areas such as animation

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Oil and gas industry

Key observations

� The foreign investment in oil and gas started after the liberalization policy of India in 1991 and in 1997, when the New Exploration License Policy (NELP) was established. The Refinery sector was de-licensed in 1998.

� In the nine years to April 2009, India received FDI worth US$2.6 billion in the oil and gas sector.

� Till now, Japan has made no significant investment in the oil and gas sector but it has a wide scope for investment.

� 100% FDI is allowed in private refineries through automatic route where as in government-owned refineries only 26% FDI is allowed. For petroleum products, exploration, pipelines and marketing/retail, 100% FDI is permitted through

Coal, 51%

Oil, 32%

Natural

gas, 9%

Hydro-

electricity,

7%

Nuclear,

1%

India’s energy consumption by energy type

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pipelines and marketing/retail, 100% FDI is permitted through automatic route.

� The government established NELP (New Exploration Licensing Policy) in 1997 in order to attract more investment in the sector.

33

55%

65%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1997 2000 2007

Imp

ort

s as

a %

of

Ind

ian

oil

con

sum

pti

on

Oil imports as a % of oil consumption

Source: Industry analysis


Pharmaceuticals industry

Key observations

� Japanese drug manufacturers are forming alliances with Indian firms to conduct contract manufacturing and clinical trials. The drug manufacturing cost in India is up to 50% less costly than in Western industrial countries.

� One of the largest acquisitions in India by a foreign company was Daiichi Sankyo’s acquisition of a controlling stake in Ranbaxy in 2008 for US$4.6 billion

� There is no restriction, 100% FDI is allowed, for the production of drugs and pharmaceutical, but the venture should not require compulsory licensing.


DaiichiSankyo

� Acquired 51% stake in Ranbaxy Laboratories, India’s largest producer of generic drugs for INR 197.8 billion (US$4.6 billion, June 2008).

� Currently holds 63.9% stake in Ranbaxy Laboratories (June 2009).

AstellasPharma

� Established its subsidiary, Astellas Pharma India, in Mumbai with an investment of approximately ¥ 300 million (US$3.1 million, November 2008).

� The subsidiary sells drugs developed by Astellas Pharma Inc., especially products in immunology and urology.

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� The Indian pharmaceuticals market is expected to grow at approx. 13% p.a. reaching to US$15.5 billion (by 2014).

ARKRAY � Entered into a joint venture with Nicholas Piramal India to market diagnostic products in India. Nicholas Piramal transferred its blood glucose monitoring systems business into the venture for INR 40 million (December 2007).

� Holds 51% stake in venture and the rest 49% by Nicholas Piramal.

EisaiCorporation

� Established a manufacturing and research facility in Andhra Pradesh

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Power sector

� There have been a number of major Japanese investments in the Indian power sector.

� Foreign investment in the sector started with the adoption of the Private Power Policy in 1991. This allowed private investment and ownership in the generation and distribution of electricity.

� The Japanese state development bank, Japan Bank for International Corporation has provided substantial loans to Indian power projects

� 100% FDI is allowed in the projects related to electricity generation, transmission and distribution, except nuclear power plants.


Hitachi-GE Nuclear Energy

� Partnered with Nuclear Power Corporation and Bharat Heavy Electricals Ltd, to provide nuclear power technology (March 2009).

� It is a joint-venture between Hitachi Ltd, Japan and General Electric Co., the US.

The New Energy and Industrial Technology Development Organization (NEDO)

� Formed an agreement with India’s Coal and Finance Ministry, to provide technology assistance worth ¥ 1.7 billion for processing coal for thermal power generation (October 2008).

Mitsubishi Heavy Industries

� Formed agreement with Larsen and Turbo to provide INR 4.5 billion technology assistance

Key observations

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power plants.

� The power sector will need very substantial investment over the next 10-15 years; by 2012, an additional 100,000 MW of capacity is required.

� In order to promote FDI, the Indian government has provided a range of tax breaks including a 10 year income tax holiday in the first 15 years of operation and removal of import duties on mega power projects (above 1,000 MW generation capacities).

� There are also incentives for the development of power projects in renewable energy

Industries provide INR 4.5 billion technology assistance for steam turbine and boiler manufacturing.

Shinko Electric Co. � Partnered with India Power Company, to sell wind power generation units in India.

Chubu electric Power Corporation

� Together with Hokkaido Electric Power Co., Mitsubishi Corporation, Japan Bank for International Corporation and others announced plans to build hydroelectric power plant in India.

35


Telecoms industry

Key observations

� The mobile telecoms market is expected to grow 27% annually, reaching 500 million subscribers by March 2010

� The market’s scale and excellent growth prospects have made it in attractive destination for foreign investment.

� NTT Docomo’s investment in Tata Teleservices has been one of the largest Japanese investments in India

� The government has raised the FDI limit to 74% for various telecom services, but any foreign investment exceeding 49% has to obtain FIPB approval. In telecom equipment manufacturing, 100% FDI is permitted.

� There is an investment opportunity of approximately US$76


NTT Docomo Inc. � Launched GSM mobile services (Tata DoCoMo) with an investment in Tata Teleservices.

� Acquired 26% stake in Tata Teleservices for US$2.7 billion (November 2008).

NTT Communications

� Entered into an agreement with BSNL to develop new business opportunities (2009).

� Extended its partnership with VSNL to launch IP-VPN services in Bangalore, India (December 2004).

KDDI Corporation � Established an Indian subsidiary, KDDI India (September 2007).

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� There is an investment opportunity of approximately US$76 billion in many telecom areas including network infrastructure, WIMAX, 2G, 3G, software for voice, data and broadcasting services.**

36

Softbank Telecom Corporation

� Established an Indian subsidiary, Japan Telecom India (May 2007).

NEC Corporation � Established an Indian subsidiary, NEC India (June 2005).

*Associated chambers of commerce and industry of India.

** Ministry of Commerce and Finance


Textiles industry

Key observations

� The sector has received total FDI amounting to US$677 million (April 2000 to March 2009).

� In the last five years, there have been a number of investments by Japanese companies in the Indian textiles sector but no major acquisitions.

� No restrictions on FDI with 100% foreign ownership allowed through the automatic route.

� The Indian Ministry of Textiles has announced plans to establish 40 textile parks to attract investment of US$4.4 billion to the sector. These parks will provide foreign companies with various investment incentives


Nisshinbo Textile Inc.

� Entered into a joint venture with Vardhman Group, to set up a company to manufacture shirts in Ludhiana, Punjab (May 2009).

� The products will be sold in both India and Japan.

Kawashima Selkon Textiles

� Formed an alliance with Bhilwara Melba De Witte, to provide technical support for designing, development and manufacturing.

� BMD is an automobile interior fabric manufacturer.

Flex Japan � Entered into Joint venture partnership with Raymond, to provide technology for a shirt factory in Bangalore.

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to provide technology for a shirt factory in Bangalore.

� Flex Japan is a leading Japanese shirt apparel firm.

37


Transport industry

Key observations

� Japan has provided considerable government aid for the development of India’s transport infrastructure.

� From January 2000 to March 2006, Japan invested US$714.7 million in transportation (58.1% of the total Japanese investment); however, this was all in the form of government aid and loans.

� FDI limit ranges from-100% for highways and roads, ports, inland waterways and transport through automatic route; 74% for airports; 40% for Civil Aviation; and in Railway transport, it is not permitted.

Key development aid projects

� Following investments announced by ODA (Official Development Assistance) :

− Committed to invest US$4 billion in Delhi Mumbai Industrial Corridor.

− Haryana Transmission System Project (loan of US$163.7 million)

− Delhi MRTS Project Phase-II - US$564.6 million

− Kolkata-East-West Metro project - US$50.4 million

− Hyderabad Outer Ring road project - US$327.7 million

− Tamil Nadu Urban Infrastructure project - US$66.8 million.

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− Tamil Nadu Urban Infrastructure project - US$66.8 million.

38

Our services

4

heernet ventures 39


Overview

� Business research and advisory firm specialising in India

� Deep local knowledge, analytical expertise and a highly responsive client service model

� Dedicated team of experienced industry analysts based in India

� Experience of working in a wide range of industry sectors including media, textiles, telecoms infrastructure, speciality chemicals and oil

� Offices in UK (London) and India (Delhi)

heernet ventures 40

� Established in 2004

� Part of Heernet Ventures Limited, a UK-based, privately owned company


Our services are focused on four key areas

Entry strategy

We can assist companies with the development and execution of a comprehensive market entry strategy for the Indian market.

Typical assignments include:

� Analysing market attractiveness (market sizing, growth prospects, competition, regulatory environment )

� Identifying and approaching potential partners

We can undertake expert interviews, mystery shopping and local surveys.

Competitive analysis

Assisting companies to develop a better understanding of their competitive in India.Research methodologies include:

� Analysing the strategies and market positioning of peer group companies

� Benchmarking analysis in areas such as product strategy and pricing

heernet ventures 41

Capital raising

Our primary focus is on working with young companies in India to source investment from established companies and investors in developed markets.

For companies seeking investment, we can assist with preparation of information memoranda, identification and targeting of potential investors and negotiations.

For investors, we can identify suitable investment opportunities and assist with the whole investment process.

Acquisitions

We can advise companies and investors on: � acquisition search; � commercial due diligence; � and general transaction support.

We work with both companies and investors.


Our client base includes a wide range of companies and professional services firms

Companies

Al WahdaBT Group BurdaConduitChemturaCyber Media Dentsu Deutsche TelekomDMGTDRI Japan

Mediaset Nippon OilNTT NZWPages JaunesRizzoliSeat Pagine Gialle SensisShellSiddhant Industries

Banks, consultants and investors

BanksABN AMRO CitigroupCredit Suisse Deutsche BankLazardJP MorganMacquarie Morgan Stanley

ConsultantsAmittArc MediaAT KearneyBoston Consulting Group Cap GeminiCavendish CapitalInfocom ResearchKPMG

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DRI JapanEenadu GroupEniro Eskay KnitEureditFindexa FinproGuardian Media Group HolmenKrakLotus CommunicationsLubrizol

Siddhant IndustriesSutterSterling Biotech (India)Telefonica Publicidad TelegateTelstra Trader Media GroupVaretisYBR Group

UBS

Private equityApax PartnersBain CapitalChrys Capital Sandler CapitalVeronis Suhler

These companies have purchased research products or advisory services from IndiaAnalysis and its sister operations.


Example assignments

Client

Asian oil products company

Review of Indian lubricants industry

Context and Approach

Context� One of Asia’s leading oil companies with a strong presence in oil-based products with a small presence in India’s

lubricants industry

� The company was keen to assess the future prospects of the Indian lubricants industry and identify which niches (automotive, aviation, engineering) were attractive.

Approach� Methodology included field research and expert interviews with manufacturers, distributors and retailers

� Key elements of analysis including market sizing, future growth prospects and competitive environment

� Based on agreed criteria, we ranked the attractiveness of the various industry segments

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Japanese telecoms operator

Potential opportunities for mobile handset recycling

Context� A Japanese telecoms operator keen to explore the commercial potential to launch a mobile handset recycling

business

� The company wanted to analyse the handset recycling market in India (and a number of other countries including UK, USA and South Korea)

Approach� Market structure and attractiveness assessed through a series of expert interviews and market research

� Researched the regulatory situation in each market, including incentives for recycling and waste legislation

� Identified opportunities for the client to meet significant demand from various emerging markets


Example assignments

Client

UK-based classifieds publisher

Entry strategy

Context and Approach

Context� Market leader in both print and online in key segments of the classifieds market

� Keen to explore targeted opportunities in India to replicate its highly successful business model. Will consider both acquisitions and organic investment

Approach� Analysed the classifieds segment in Mumbai and Delhi

� Methodology included field research, mystery shopping and expert interviews

� Key elements of analysis including market sizing, future growth prospects and competitive environment

� Recommended an entry strategy

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UK-based diversified media group

Entry strategy

Context� Leading UK group with strong presence in publishing and broadcasting

� Considering expansion into various English language media markets, including India.

� Preferred strategy is to find a local partner in each market

Approach� Analysed the English language publishing market in India (size, structure, degree of competition)

� Profiled potential partners and scored their partner potential (based on agreed criteria)

� Facilitated discussions with selected potential partners


Example assignments – Capital raising and investment

� We have worked with a number of Indian companies on capital raising and equity placement

� Our role has included preparation of information memoranda, research and identification of potential investors

� We often work in partnership with corporate finance advisors

heernet ventures 45

Clients

Speciality chemicals group

Capital raising for expanding capability in Q10 production

Textiles and garment manufacturer

Equity placement

Telecoms tower manufacturer

Capital raising for expansion of tower manufacturing capacity


Contact information

For further information, please contact:Harjinder Singh-HeerManaging Director

Heernet Ventures Limited147 Dalling RoadLondon W6 0ETUnited Kingdom

Heernet Ventures India Heernet Media Services (Private) LimitedK5A/11DLF Phase 2Opposite First India Place, MG Road

heernet ventures 46

Tel: +44 (0) 208 180 7223, +44 (0) 79806 14738Email: [email protected]: heernet.com , IndiaAnalysis.com, G2Mi.com

Opposite First India Place, MG RoadGurgaonHaryana – 12002India

Documents

Japanese Investment in India - Report (download at IndiaAnalysis.com)