INVESTMENT OPPORTUNITIES IN INDIA

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INVESTMENT OPPORTUNITIES IN INDIA

• Presented By,
• SAN Corporate Advisors.

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GOVERNMENT

• India is Parliamentary Form of government,
  governed under the Constitution of India. 
• Indian Democracy is the LARGEST AMONGST All.
• Democracy is governed by Two level Control i.e
  Central Level 2. State Level.
• Macro Level Financial and Foreign policies are
  governed by Central Government.
• India consists of 28 states and seven Union
  Territories. Almost 80 states speaks local
  languages. Hindi is National Language English
  is Business Language.

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DEMOGRAPHY

• Total Population 1.17 bn (July 2009 est. CIA)
• Rural Population72.2,
• Median age 25.1 years
• 60 population is between 15 to 60 years.
• Population growth rate 1.548 (2009 est.)
• Literacy rate71.7 (Age 7 above) 
• Percent of the population under the poverty line
  22 (2006 est.)

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INDIAN ECONOMY

• The economy of India is the eleventh
  largest economy in the world by  GDP and
  the fifth largest by purchasing power
  parity (PPP).
• Following strong economic reforms from the
  socialist inspired economy of a post-independence
  Indian nation, the country began to develop a
  fast-paced economic growth, as free
  market principles were initiated in 1990 for
  international competition and foreign investment.
  Economists predict that by 2020, India will be
  among the leading economies of the world.
• Fixed exchange ratesUSD  45.6100 INR(September
  21, 2010)
• Fiscal year Calendar year (1 April 31 March)

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GDP

• GDP 1.250 trillion (nominal 11th 2009)
• 3.526 trillion (PPP 4th 2009)GDP growth8.8
  (2010, Q1)GDP per capita1,031 (nominal 139th
  2009)

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LIST OF COUNTRIES WITH GDP ON THE BASIS OF
PUCHASING POWER PARITY(BY IMF) (Fig in US Bn)
COUNTRY 2010 2011 2012 2013 2014
EU 15046.88 15543.84 3.3 16175.82 4.06 16854.03 4.2 17554.03 4.2
US 14799.56 15397.16 4.04 16048.20 4.2 16761.26 4.4 17490.34 4.4
CHINA 9711.71 10828.77 11.5 12101.27 11.75 13521.45 11.75 15106.65 11.75
JAPAN 4267.50 4414.48 3.4 4584.82 3.8 4755.10 3.8 4933.50 3.8
INDIA 3862.00 4248.30 10 4671.51 10 5144.83 10.12 5667.58 10.16
GERMANY 2859.77 2951.96 3.2 3064.77 3.8 3180.25 3.8 3292.25 3.8
RUSSIA 2209.04 2314.75 4.7 2443.29 5.5 2591.27 6.05 2758.22 6.5
INDUSTRIAL GROWTH IN (BY WORLD FACE BOOK) INDUSTRIAL GROWTH IN (BY WORLD FACE BOOK) INDUSTRIAL GROWTH IN (BY WORLD FACE BOOK) INDUSTRIAL GROWTH IN (BY WORLD FACE BOOK) INDUSTRIAL GROWTH IN (BY WORLD FACE BOOK) INDUSTRIAL GROWTH IN (BY WORLD FACE BOOK) INDUSTRIAL GROWTH IN (BY WORLD FACE BOOK) INDUSTRIAL GROWTH IN (BY WORLD FACE BOOK)
COUNTRY CHINA INDIA US EUROPE GERMANY RUSSIA JAPAN
2008 10.7 6.5 0.2 0.2 2.2 3.5 0.5
2010 12.5 9.0 1.5 0.75 3.5 2.5 2.5
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REGULATORY AGENCIES

• RBI (Reserve Bank of India) 
• i. Act as the Central Bank of all Banks
  of India 
• ii. Controls the monetary policy of
  the Rupee as well as US287.37
• billion (2009) of currency reserves.
• iii. FDI is also regulated by RBI.
• SEBI
• SEBI controls and regulates Capital
  Market operations

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FDI FACT SHEET
From April 2000 to June 2010 AMOUNT (In million )
CUMULATIVE AMOUNT OF FDI INFLOWS IN INDIA 170,323
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Sector-Wise Distribution of FDI Equity Inflow
NAME OF INDUSTRY GROWTH RATE AS ON DEC 2009
POWER 3
AUTOMOBILE 5.2
METALLURGICAL 8.6
PETROLEUM 6.2
CHEMICAL 12
FINANCIAL 8.5
SOFTWARE/HARDWARE 33
TELECOM 14
REAL ESTATE 11
CONSTRUCTION 8.5
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INVESTMENT OPPORTUNITIES TO NRI/ FOREIGN NATIONAL
ENTITIES
SR NO EVALUATION CRITERIA MUTUAL FUND SHARES OF LISTED COMPANIES BUSINESS REAL ESTATES DEPOSITES WITH BANKS
1 RESTRICTION ON INVESTMENT Subject to FDI Rules FREELY PERMITTED FREELY PERMITTED TO PVT SECTOR UPTO 100 IN NEARLY ALL SECTORS FREELY PERMITTED (Large Projects) OTHER THAN AGRICULTURE FREELY PERMITTED
2 RETURN ON INVESTMENT EQUITY BASE 25-30,DEBT 10-15,DIVIDEND EXEMP FROM TAX 20-25, DIVIDEND EXEMP FROM TAX DEPEND ON BUSINESS MODEL, AVG 15-20 15-20 6-9
3 RISK OF LOSSES EQUITY HIGH,DEBT-LOW HIGH LOW LOW LOW
4 LIQUIDITY HIGH HIGH DEPENDS ON BIZ MODEL MEDIUM HIGH
5 PROCEDURAL SIMPLICITY YES YES YES YES YES
6 REPATRIATION OF POST TAX INCOME FREE FREE FREE FREE FREE
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FOREIGN DIRECT INVESTMENT (FDI)

• Reserve Bank of India, Apex Bank of India
  regulates FDI in India.
• FDI is allowed under automatic route in almost
  all sectors except a few of national interest.
• FDI can be brought in via three routes
• i. Automatic Route (Without RBI Approval)
• ii. Approval Route (RBI Approval)
• iii. Government Approval Route
• 4 Indian companies can issue equity shares,
  fully, compulsorily and mandatorily convertible
• debentures and fully, compulsorily and
  mandatorily convertible preference shares.

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External Commercial Borrowing(ECB)

• RBI regulates ECB in India
• Almost all sectors are permitted ECB upto USD 500
  Mn
• ROI is LIBOR based and repayment tenure from 3
  years to 10 years.
• All multinational Banks have presence in India to
  raise ECB
• At present RBI Approval is required for ECB.
  Proposed automatic route.

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Indias Investment Opportunities

• Power - Short Supply of 100000 MW
• Engineering Automobiles Short of Technology
• Information Technology
• Banking Financial Sector
• Agricultural Short of Investment in agro
  processing
• Infrastructure Mining, Steel, Oil Gas, Public
  Transort, Roads
• Jewelry Diamond Processing
• Aviation
• Logistics Transportation
• Healthcare
• Education

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TO CONCLUDE

• Indigenous demand and potential of exports makes
  it the best investment destination.
• Indias resources and sincere government efforts
  assures the success.
• Economy has passed acid test of recession in last
  few years showing unparallel success. During
  2008-2009 global recession, India posted 7 rise
  in GDP.
• Its industrial performance is the main selling
  point in last few years.
• India is a country with stable government with
  deep rooted democracy

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TAXATION IN INDIA

• India has corporate tax rate _at_ 30 at present and
  proposed rate _at_ 25 in new Act.
• Dividend Tax Rate _at_ 16.5. Dividend Exempted in
  the hands of recipient.
• India has DTAA with almost all major countries.
• Direct Tax is now getting computerized.
• Almost 90 tax departments are now computerised.
• Presently Indirect Taxes are at multiple level
  and charged separately.
• GST is proposed to consolidate major indirect tax
  under one roof.

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WHO WE ARE?

• SAN Corporate Advisors Provides comprehensive
  financial services, corporate and investment
  advisory services primarily to mid-market
  companies.
• Due Diligence
• Tax Advisory
• Legal Services
• M A
• Accounting Assurance Services
• Investment Trustee Services
• All other business support Services

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SUCCESS STORIES

• Major deals completed in the year 2009
• Debt Syndication for a listed public company in
  the business of manufacturing auto spares 20
  Mn
• Equity and Debt Tie-up for a Healthcare Company
  13 Mn
• Advisory and funding arrangement on Acquisition
  of Italian Car Design Company 5 Mn
• Debt arrangement for an Aluminum Extrusion
  Company 5 Mn
• Financial Restructuring Syndication of Finance
  for a Sugar, Power and Ethanol Greenfield Project
  80 Mn
• Major deals in progress in the year 2010
• Collaboration/Acquisition proposal between India
  based Company with a company in Germany . Deal
  size approx. 15 million Euros.
• Acquisition proposal between Rio Tinto with
  Jindal Steel Works- 150 millions .
• Strategic alliance and Acquisition of forging
  units by Listed Company in India . Deal size 10
  millions.
• Deals Already completed --
• Fund raising for Hospitality project - 5
  millions from USA based Company.
• Fund raising for Hospitality project - 5
  millions from USA based Company.

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CONTACT DETAILS

• Address 1, Shree Shailya Apartments,
• Lane no. 14, Prabhat Road,
• Pune-411004, Maharashtra,
  India.
• Telefax 20-25459205 / 0091 9822348498 ,
  0091 9822433132
• Email anand_at_sanadvisors.com ,
  sanjay.landge01_at_gmail.com.
• Web www.sanadvisors.com

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WELCOME TO INDIA