Manufacturingand

ConstructionSectorinIndia
MonthlyUpdate
July2013

TopStory

Indiagrantscoalminingrightstopowerproducers
CoalminingrightshavebeengrantedtotheIndianpowerproducersbythegovernmentafter
fiveyearswithaviewtospeedupproductionandattractinvestments.Righttomininghas
beenawardedto14blocksandNTPCalonehasobtainedminingrightsfor4blocks.The14
blocksallocatedareestimatedtoyieldaround159mntonnesofcoalayearthatwouldhelp
togenerateabout31,800MWofpower.TheminesallocatedtoNTPCareestimatedtohave
geologicalreservesofaround2bntonnes.

The government plans to auction mining rights for seven explored coal blocks to private
companies in order to increase production. The allocation process will be carried out
through competitive bidding instead of recommendations from the state or central
government.

NewsUpdate
General

EconomiccrisisaffectsIndianmanufacturingsector
Manufacturing sector activity for the month of June was broadly flat primarily owing to a
decline in new orders coupled with power cuts and fragile economic conditions. Weak
economicconditionshaveresultedinpoordemand.Therupeedepreciationwasanalltime
lowagainstdollaronheavycapitaloutflowsandmonthenddollardemandfromimporters.
Inputpricesregisteredariseandoutputpricesalsoroseslightlyowingtothedepreciationin
rupee.

However, June recorded the highest rise in employment as manufacturers increased the
workforceduetothebacklogsinwork.

RiseinwagesinChinaexpectedtobenefitIndia
Wages are expected to register an increase in China as a result of which it is expected to
evolveasahighcosteconomy.CompanieswhohadestablishedbasesinChinaarebeginning
to reverse the process and have established bases in Brazil and Indonesia. The question
arises whether India will be able to fill the gap and emerge as the global centre of
manufacturing. The new manufacturing policy in India aims at increasing the share of
manufacturingsectorinIndiasGDPto25%in2020alongwiththecreationof100mnjobs
inthemanufacturingsector.

Establishment of large scale manufacturing base in India requires India to emerge as an

attractivedestinationforinvestment.Itshouldbecharacterizedbythepresenceofeasyland,
ManufacturingandConstructionMonthlyUpdate

labor and capital. Establishment and closing businesses should be less cumbersome, along
withbeinglessexpensiveandtimeconsuming.

AtlasCopcowinsminingorderinIndia
AtlasCopco,aleadingplayerintheglobalconstructionequipmentindustryhaswonrepeat
miningequipmentorderinIndia.Theorderincludesfacedrillingrigsaswellasloadingand
hauling machines and is expected to be delivered in 2013. The repeat order is from
Hindustan Zinc, a company of Vedanta Resources PLC. The company engages in the
production of zinc, lead and silver and has been investing in modern construction
equipmentswithaviewtoboostproductivity.InMay2013,thecompanyannouncedabout
obtainingtheorderfromHindustanZincforuseintheRampuraAguchamine.

AtlasCopco,basedinSwedenwasfoundin1873andhasaglobalreachacross170countries.

ToshibalaunchessubwattLEDs
ToshibahasannouncedthelaunchofnewwhiteLEDproduct.ThewhiteLEDsarefabricated
withgalliumnitrideonsilicon.TheLEDisofthesubwatttype,mainlyduetothereduction
offorwardvoltage.TheproductsthatwouldbemadeavailableincludetheTL2FKserieswith
3.0x1.4mmpackageandtheTL3GAserieswith3.0x3.0mmpackage.Massproductionofthe
productisexpectedtostartfromAug2013.

The product will find widespread applications in general lighting, including straight tube
lights,lightbulbs,baselightsandceilinglights.

Paperindustrytoregisteramoderategrowth
The paper industryinIndia isexpectedto register a moderate growth on themedium and
long term basis owing to a rise in literacy levels and growth in print media industry.
Governmentinvestmentsineducationandchangeinurbanlifestylesisexpectedtoboostthe
development of the paper industry. However, with the rise in input costs, the favorable
demand supply scenario for paper is unlikely to translate into higher profits for the
companiesoperatingintheindustry.

ThepaperindustryinIndiahasreportedarobustgrowthinrevenueoverthelastfiveyears
owingtosteadygrowthinconsumptionsandincreaseinrealizations.

ManufacturingandConstructionMonthlyUpdate

IndustryExpertSpeak

Atlas Copco wins mining contract in India Bob Fassl, Business Area President, Atlas
CopcoMiningandRockExcavationTechnique
WeshareavaluablepartnershipwithVedanta,andthisrepeatorderunderlinesourstrong
focus on customer satisfaction and ability to deliver products and solutions that boost
customerproductivity,

Transactions(May2013Jul2013)

Date

Buyer

Target

DealSize
(INRmn)

%stake

DealStatus

Typeof
Transaction

16thJul
2013

JSWSteel

Sandur
Manganese&
IronOre

N.A

N.A

Pending

M&A

28thJun
2013

JindalSteel&
PowerLtd,

WologiziMine

N.A.

N.A.

Pending

M&A

22ndMay
2013

JSWIspat

Heidelberg
CementIndiaLtd.

N.A.

N.A.

Pending

M&A

22ndMay
2013

Mitsubishi
HitachiMetals
Machinery,Inc.

ConcastIndiaLtd.

N.A.

N.A.

Completed

M&A

AnnualFinancialResultsRevenue(INRmn)

Companies

FY10

FY11

FY12

FY13

1,026,655.8

1,201,338.7

1,473,057.2

1,614,491.5

HindalcoIndustriesLtd.

607,079.2

722,022.7

808,213.7

801,928.0

CoalIndiaLtd.

467,840.0

502,292.8

624,154.3

683,027.4

GailIndiaLtd.

270,353.0

351,916.1

441,821.4

508,927.1

BharatHeavyElectricalsLtd.

331,991.9

418,975.5

476,109.0

481,063.1

OilandNaturalGasCorp.Ltd.

ManufacturingandConstructionMonthlyUpdate

SterliteIndustries(India)Ltd.

244,903.0

302,472.0

412,063.0

451,622.9

GrasimIndustriesLtd.

200,870.8

214,612.3

251,470.9

279,043.2

AdityaBirlaNuvoLtd.

157,699.4

183,839.4

220,732.5

251,804.5

AlokIndustriesLtd.

44,243.4

66,149.0

97,847.2

135,630.0

AshokLeylandLtd.

72,447.1

111,771.1

128,419.9

122,030.8

CromptonGreavesLtd.

91,408.7

100,051.1

112,485.8

120,944.4

WelspunCorpLtd.

73,636.7

80,220.8

89,765.8

108,700.5

NMDCLtd.

62,390.9

113,693.1

112,618.9

106,986.7

JBFIndustriesLtd.

49,409.1

64,711.2

71,792.5

74,496.7

HavellsIndiaLtd.

51,625.7

56,126.3

65,182.0

72,218.0

NationalAluminiumCo.Ltd.

51,745.1

60,565.7

66,115.7

68,094.5

JindalSawLtd

56,947.1

45,863.3

60,364.0

67,559.7

DCMShriramConsolidated
Ltd.(DSCL)

35,704.5

41,345.1

50,067.2

55,169.0

VoltasLtd.

47,574.7

51,913.8

51,857.4

55,140.6

JainIrrigationSystemsLtd.

34,348.0

41,745.6

49,384.6

49,168.8

AnnualFinancialResultsIncome(INRmn)

Companies

FY10

FY11

FY12

FY13

OilandNaturalGasCorp.Ltd.

194,035.3

224,559.3

281,436.2

242,196.4

HindalcoIndustriesLtd.

39,254.7

24,563.7

33,969.5

30,268.9

ManufacturingandConstructionMonthlyUpdate

CoalIndiaLtd.

96,224.5

108,673.5

147,882.0

173,563.6

GailIndiaLtd.

33,278.3

40,209.7

44,436.1

43,736.0

BharatHeavyElectricalsLtd.

43,269.2

60,533.6

70,874.4

66,933.7

SterliteIndustries(India)Ltd.

39,263.0

48,898.0

38,998.0

60,603.2

GrasimIndustriesLtd.

30,955.3

22,790.1

26,474.6

27,043.9

AdityaBirlaNuvoLtd.

1,545.6

8,221.0

8,901.3

10,588.9

AlokIndustriesLtd.

1,377.1

3,115.4

929.9

N.A.

AshokLeylandLtd.

4,236.7

6,313.0

5,659.8

4,337.1

CromptonGreavesLtd.

8,598.7

8,886.7

3,735.9

(361.4)

WelspunCorpLtd.

6,104.0

6,330.3

2,385.4

(703.2)

NMDCLtd.

34,472.6

64,992.2

72,653.9

63,423.7

JBFIndustriesLtd.

1,864.0

5,460.0

2,228.8

1,134.8

HavellsIndiaLtd.

695.6

3,035.7

3,699.2

5,814.3

NationalAluminiumCo.Ltd.

8,142.2

10,693.0

8,495.0

5,928.3

JindalSawLtd

5,495.3

4,446.6

1,891.1

(188.7)

842.5

(142.7)

119.2

2,028.9

VoltasLtd.

3,809.9

3,572.4

1,620.6

2,077.8

JainIrrigationSystemsLtd.

2,475.9

2,807.1

2,235.0

30.8

DCMShriramConsolidated
Ltd.(DSCL)

ManufacturingandConstructionMonthlyUpdate

QuarterlyFinancialResultsRevenue(INRmn)

AprJun
2012

JulSep
2012

OctDec
2012

JanMar
2013

OilandNaturalGasCorp.Ltd.

N.A.

N.A.

N.A.

1,614,491.5

HindalcoIndustriesLtd.

N.A.

N.A.

N.A.

N.A.

CoalIndiaLtd.

165,005.9

145,725.4

173,250.4

199,045.7

GailIndiaLtd.

N.A.

N.A.

N.A.

N.A.

BharatHeavyElectricalsLtd.

N.A.

N.A.

N.A.

N.A.

SterliteIndustries(India)Ltd.

105,913.9

112,877.1

106,924.0

126,091.8

GrasimIndustriesLtd.

68,319.6

66,021.4

67,678.3

76,724.1

AdityaBirlaNuvoLtd.

52,535.8

59,213.9

62,347.4

69,069.2

AlokIndustriesLtd.

N.A.

N.A.

N.A.

N.A.

AshokLeylandLtd.

29,409.8

32,960.5

23,225.0

36,484.1

CromptonGreavesLtd.

28,111.4

29,241.7

29,718.3

33,873.0

WelspunCorpLtd.

25,497.2

20,606.3

28,518.8

33,163.5

NMDCLtd.

28,379.0

26,118.4

20,468.3

32,021.0

JBFIndustriesLtd.

17,965.3

18,093.3

17,406.7

21,031.4

HavellsIndiaLtd.

17,778.0

16,992.0

18,143.0

19,305.0

NationalAluminiumCo.Ltd.

17,480.7

16,083.2

16,700.6

18,351.7

JindalSawLtd

N.A.

N.A.

N.A.

N.A.

DCMShriramConsolidated
Ltd.(DSCL)

N.A.

3,144.1

3,635.8

4,339.3

16,766.5

11,601.0

11,501.7

15,922.2

Companies

VoltasLtd.

ManufacturingandConstructionMonthlyUpdate

JainIrrigationSystemsLtd.

N.A.

N.A.

N.A.

N.A.

QuarterlyFinancialResultsIncome(INRmn)

AprJun
2012

JulSep
2012

OctDec
2012

JanMar
2013

OilandNaturalGasCorp.Ltd.

N.A.

N.A.

N.A.

242,196.4

HindalcoIndustriesLtd.

N.A.

N.A.

N.A.

N.A.

CoalIndiaLtd.

44,692.6

30,780.8

43,951.1

54,139.1

GailIndiaLtd.

N.A.

N.A.

N.A.

N.A.

BharatHeavyElectricalsLtd.

N.A.

N.A.

N.A.

N.A.

SterliteIndustries(India)Ltd.

12,015.9

12,547.1

11,914.1

19,246.3

GrasimIndustriesLtd.

7,180.0

6,195.8

5,491.7

8,176.4

AdityaBirlaNuvoLtd.

2,668.4

3,041.8

3,232.1

1,988.7

AlokIndustriesLtd.

N.A.

N.A.

N.A.

N.A.

AshokLeylandLtd.

669.4

1,426.0

741.4

1,500.3

CromptonGreavesLtd.

859.0

420.5

(1,893.6)

252.7

WelspunCorpLtd.

74.7

43.6

(805.9)

(15.7)

19,060.0

16,786.2

12,928.0

14,649.5

JBFIndustriesLtd.

337.0

494.3

298.4

5.1

HavellsIndiaLtd.

713.0

2,423.0

1,178.0

1,500.3

2,230.8

47.8

1,189.4

2,460.3

Companies

NMDCLtd.

NationalAluminiumCo.Ltd.

ManufacturingandConstructionMonthlyUpdate

JindalSawLtd

N.A.

N.A.

N.A.

N.A.

DCMShriramConsolidated
Ltd.(DSCL)

N.A.

288.8

607.5

823.3

640.1

429.3

768.1

89.2

N.A.

N.A.

N.A.

N.A.

VoltasLtd.
JainIrrigationSystemsLtd.

EventsCalendar
ManufacturingExcellenceMission,Indore
Date:6th7thAug2013
Venue:VECommercialVehiclesLtd,Force
MotorsLtd,CumminsTurboTechnologies&
KirloskarBrothers,Indore,MadhyaPradesh,
India
ContactPerson:MrGauravLamba
ContactNo:+911352745120
Organizer:ConfederationofIndianIndustry
Website:http://www.cii.in

NorthEastMSMEConclave2013
Date:22nd23rdAug2013
Venue:NEDFiHouse,Guwahati,Assam,India
ContactPerson:Ms.NandineeKalita
ContactNo:+913612731966
Organizer:ConfederationofIndianIndustry
Website:http://www.cii.in

ManufacturingandConstructionMonthlyUpdate

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ManufacturingandConstructionMonthlyUpdate