Incredible India, Incredible

Opportunities

RRS NRI Services

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 Understanding India
 Growing Consumer Spending
 Growth of Services
 Indian Manufacturing establishing itself on the global stage
 Pervasive communications : Satellite and Cable TV, Basic
and Mobile Telephony, Fibre/Broadband
 Infrastructure growth: Highways, Ports, Urban Transport
 Growth in literacy & higher education
 Mature political economy with development as its core
agenda

 As the world's fastest growing free market democracy

“Quite simply, I was blown
away by what I saw on my paces itself for even further growth, can you afford to be
first trip to India” – Stephen left behind ?
Roach, Chief Global
Economist, Morgan Stanley
on his visit on 2004.

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 India and the Developed markets
 1 year returns – BSE Sensex, FTSE , Dow Jones

“Best Country to be an
investor in” – Newsweek,
July 2004.

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 India v/s Brasil and China
 1 year returns – BSE Sensex, Shangai , Sao Paolo

“India's unique approach to

development is preparing it
to overtake China in the
economic growth race.” –
Far Eastern Economic
Review, 2004.

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 US Companies in India
 India has been identified as one of Coke’s most profitable
global markets.
 According to a study conducted by BCG, the Indian arms
of two American banks, Citibank and Bank of America are
more profitable in India than their global average.
 American multinationals are scaling up as if there’s no
tomorrow. India is already Reebok’s fastest growing
market in the Asia Pacific
 Motorola’s third largest market.
 Ford arrived in India at the turn of the millennium with 12
dealerships in 8 cities; today it has 90 dealers in 70 cities.
The US auto major has just completed what it calls “its
best ever year” in terms of sales.
 In segments such as Information technology and software,
“India produces 3 million
graduates, 700,000 post- an overwhelming 83% of American companies said they
graduates and 1,500 Ph.Ds were very happy with their experience in India.
every year.”

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“FDI will continue to be
encouraged and actively
sought, particularly in the
areas of infrastructure, high
technology and exports.” –
P. Chidambaram, Finance
Minister, Government of
India
11/04/21
FDI in India
 India is likely to emerge as one of the largest consumer
markets in the world. On an average, 30-40 million join the
consuming class every year. Political empowerment and
economic trickle-down have now fuelled ambitions and
aspirations in more Indians than in any other period of
history.
 India is now the third most favoured destination for Foreign
Direct Investment (FDI), behind China and the USA,
according to an AT Kearney survey that tracked investor
confidence among global executives to determine their
order of preferences.
 There has been a sharp rise in the number of FDIs
approved in 2004. During the first seven months of 2004,
between January and July, Rs 5,220 crore worth of FDI
was approved.
 Non-resident Indians (NRI) repatriated close to $1 billion
parked in various NRI deposit schemes in May and June.
 Almost a third of these FDI inflows went into shares
acquisition by NRIs in various Indian firms.
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 2005 – The year of Equity Market

3500 firms operating out of

39 Software Parks export
over US$8 billion worth of
IT products and services

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 2005 – The year of Equity Market
 Net FII investments of $10 billion (Rs 45,000 crore; up by
$2 billion — Rs 9,000 crore — over 2004) have only
reaffirmed the interest that India commands among the FII
community
 Mutual funds had raised a staggering Rs 25,000 crore
through New Fund Offers
 The year 2005 turned out to be another good one for public
issues, with about 70 offerings hitting the market, quality
offers that gave investors reason to cheer included those
of Shoppers' Stop, IDFC Shree Renuka Sugars and Suzlon
Energy while Gateway Distriparks was one that must have
considerably swelled investors' coffers.
 Stocks from Sugar, Textile Mills, Construction and Small
and mid-cap where considerable gainers
GE Capital saves up to US
$ 340 million a year by
performing 700 tasks in
India

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 Foreign Institutional Investors (FII)
 Number of FIIs has also increased, from zilch in 1992-93 to
528 in 2000-01 to 803 in 2005-06.
 Many Japanese and European funds have started eyeing
India. Registrations from non-traditional countries like
Denmark, Italy, Belgium, Canada, Sweden and Ireland
rise. CALPERS (California Public Employees Retirement
System), the world's biggest pension fund with a base of
US $165 billion has recently decided to invest US $100
million in India
FII Inflows in India

1000
800
600 No. of FIIs
400 In US $ billion)

Global economic survey 200

ranks India as the sixth- 0

1992-93 1995-96 2000-01 2001-02 2002-03 2003-04 2004-05 2005-
fastest growing country in 06*
terms of construction Year

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 Foreign Institutional Investors (FII)
 The year 2005 has been a remarkable year for stock
markets — the indices scaled new peaks, the foreign
inflows crossed an eye-popping US$ 10.57 billion (crossing
the US$ 10-billion mark for the first time in a calendar)
 FIIs are the single largest shareholders with a 15.28 per
cent (Rs 3,63,354 crore market capitalisation) holding in
Indian companies now.
 Net FII Buy Positions in 2005 stand at Rs. 47181.93 Cr.
 Foreign shareholders own almost a third of corporate India.
 In 164 companies, foreign holding is above 50%
 In 180 companies, between 25% & 49.95%
 In 334 companies, between 10% & 24.95%
According to the Indian
Minister for Commerce and
 In 240 companies, between 5% & 9.90%
Industry, of all the foreign
investors in India, at least
77 per cent make profit and
8 per cent break even.

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 Beyond 2005
 Indices have scaled new peaks to the worry of many, but
still no slowdown looks likely in the near future as the
market awaits a further flush of funds to the tune of $3
billion raised by three India-specific funds in Japan
 Valuations do look stretched. But FIIs seem to be looking
for the long term and hence, the current valuations are not
relevant for them.
 Year 2006 is predicted to be a `dream year for capital
market’ as FIIs inflows into it is expected to be touching
US$ 50 billion from their cumulative investment level which
touched US$ 40 billion in October 31, 2005,  according to
The Associated Chambers of Commerce and Industry of
India (ASSOCHAM).
 It is the sheer size of India’s consuming class that is
causing the maximum excitement among US companies.
According to Richard Celester, the former US ambassador
to India, the country has grown by a Brazil in the last 10
3/4th of SEI CMM Level 5 years, and will grow by another Brazil in this decade.
companies in the world are
Indian

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 India Inc. going Global
Buyer Acquisition Price

Reliance Industries Flag Telecom, Bermuda US$ 212m

Tata Motors Daewoo, Korea US$ 118m

Infosys Technologies Expert Information Services, Australia US$ 3.1m

Bharat Forge Carl Dan Peddinghaus, Germany N/A

Ranbaxy RPG (Aventis) Laboratories, France N/A

Wockhardt CP Pharmaceuticals, UK US$ 18m

Cadila Health Alpharma SAS, France US$ 5.7m

"Toyota Motor has chosen
to source from India due to Hindalco Straits Ply, Australia US$ 56.4m
its competitive cost of
Wipro NerveWire Inc, USA US$ 18.5m
manufacture, availability of
abundant engineering Aditya Birla Dashiqiao Chem, China US$ 8.5m
talent, and strong
indigenous machine tool." United Phosphorus Oryzalin Herbicide, USA US$ 21.3m

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"India is not just about IT or
business process
outsourcing. We see it as
an incubator for giant
global corporations driven
by IT strategy.“ Prof
Warren McFarlan, Senior
Associate Dean, Harvard
Business School
11/04/21
What are people talking about?
 "India has a fantastic pool of software professionals. The
world needs to benefit from this.“ Bill Gates, Microsoft
Chairman
 "This market (India) is critical to our plans for building a
Ford Motor Co. for the 21st century.“ Bill Ford, Chairman
and CEO
Ford Motor Company
 "India on its way to becoming IT, manufacturing kingdom of
the world.“ Mr Yasukuni Enoki, Japanese Ambassador to
India
 "The dynamism shown by India in the last 15 years is
phenomenal.“ Paul Wolfowitz, President, World Bank
 "The Indian banking system is now perhaps better than
any other in Asia.“ Stephen Roach, Chief Global
Economist & Managing Director Morgan Stanley
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 Not a re-run of 2004 or 2005
 After the stellar showing over the past three years, investor
expectations have also been marked up considerably.
 But to expect a re-run of what happened in 2005 or, for
that matter, 2004, may be a case of suspending reality
 There are ample opportunities still for the focused investor

"We are very bullish on our

growth prospects in India.“
Charles Prince, CEO,
Citigroup

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"It makes sense for pharma
companies to look to
India...Indian scientists are
well trained...India has
more pharmaceutical
facilities approved by the
U.S. Food & Drug
Administration (USFDA)
than any foreign country.“
Business Week Magazine
11/04/21
Key Sectors
 If the Government and bureaucracy deliver on the promise,
the Indian industry is strongly positioned to deliver. And
this will be reflected in the stock markets
 Rise of the Indian Consumer – More than half of India's
population is over 25 years with an increasing willingness
to consume and spend providing ample opportunities in the
retailing sector
 To watch out for FDI in Retailing and Insurance
 Infrastructure impetus going to be strong
 IT Still the flavour thanks the robust business model
 Construction to benefit from the government’s focus on
Infrastructure and rapid economic development
 Consumer Products to benefit from the growing middle
class and growing incomes
 Mid-Cap pharma and auto-components yet to fulfil their
potential
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 How can you be a part of this market?
 Equity investments and investments in Mutual Funds can now be
done directly by NRIs and PIOs, with simplified procedures
 In order to invest in Mutual Funds, all you need is a NRE Account.
 For direct investment in equities, you need
 A PIS a/c , in a designated Bank Branch
 A NRE a/c, preferably in the same branch
 A NRI Demat account
 Documents Required
 Copy of Passport ( 5 Copies )
 3 Passport Size Photographs
 Power of Attorney to operate the NRE Account
 Bank Details ( 2 Copies of Cancelled Cheque of NRE
Accounts)
RRS can assist you  Address Proof ( 2 Copies, Can be Driving License , Bank
through out the entire
Statement)
process, visit our NRI
Section on our website and  Proof of Correspondence address in India ( Typically address
download all the required proof of Power of Attorney holder)
application forms.

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 Equities and Mutual Funds
 Equities
 Higher Returns, More Risk
 Easy tracking
 Easy entry and Exit
 No hidden loads or expenses
 Mutual Funds
 Relatively less risky, with lesser returns
 Not very transparent tracking
 Complicated entry and exit
 Does not require active management & tracking

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 Why RRS
 Benefit from our experience
 RRS provides its clients with range of services
personalized investment services like equity
investments, Derivatives and mutual funds. Our
people have a 20 years experience in the capital
market, giving RRS a unique advantage from which
you can benefit.
 Smile every time to work with us
 Using modern technologies, RRS ensures that all
transactions done are a pleasant and a hassle free
experience for you. All end of the day reports are
instantly available on our website and our friendly staff
are always there with you.
 Team RRS
 RRS Team includes a talented and experienced staff
of 12 dealers and 18 support staff, who constantly
thrive to service our clients.

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 RRS Online – www.rrs.in
 What can you view ?
 Detail Summary of transactions
 Your Ledger Account
 Stock Ledger – Profit & Loss , Long term and
Speculative
 End of day/Historic Contracts
 Main Benefits
 Instant, anywhere access anytime, over the Internet
thru www.rrs.in
 Saves time, no more calling
 Access historical records with ease ( upto 2 years)

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 References
Data used in this presentation can be found at
 India Brand Equity Foundation ( www.ibef.org )
 The Hindu Business Line
 Business Standard
 The Economic Times
 BusinessWorld
 Outlook Money
 The Associated Chambers of Commerce and Industry of
India (ASSOCHAM)

Contact RRS
Contact Details

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