Monthly Report. MAY 2018

Transcription

1 Monthly Report MAY 218

2 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Steady double digit growth (15%) recorded in May Economy's growth momentum continues in May 218 Growth across regions not uniform with west growing fastest at 17% and east slowest at 12% Sectors maintained positive growth trend Auto Components (1%), Automobiles (4%), Consumer Durables (6%), Engineering Products (19%), Metals and Mining (12%), MHE (25%), Welding (14%) New order inflows (indicative of future growth) also grew by 8% Positive price variation ( ) observed in all regions except North 1

3 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Survey results 2

4 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. May 218: Double digit growth continues in second month of FY'19 Summary all respondents Regional growth All respondents 1 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Value 4% 4% 6% 6% 8% 8% 8% 6% 15% 15% 12% 13% 14% 13% 16% 16% 13% 1% 13% 11% 15% 14% YoY growth % Volume Peer growth comparison Volume growth (%) Industry growth comparison FP Auto Comp Cons CD Chem BM Auto EP MHE Wel MM Value growth (%) North 14% (15%) West 17% (15%) South 16% (15%) East 12% (11%) XX:- Region XX% Value (YY%) Volume 1. Not all respondents filled in regional growth numbers. Average of regional growths therefore, may not coincide with national average. The growth numbers reported are on an year-on-year basis Note: Industry average is displayed only when there are 3+ responses per industry. Other industries where responses were received include: chemicals, consulting services, infrastructure, paper, pharma, textile and apparel. Regional averages may not fully align with national average because of different regional exposures of respondent industries. All averages are 'simple averages' (i.e. not weighted by size of company). Auto comp.= Auto components, BM= Building Materials, CD= Consumer Durables, Chem= chemicals, CV= Commercial Vehicles, EP= Engineering Products, FP= Fluid Power, MHE= Material Handling Equipment, MM= Metals and Mining, PV= Passenger Vehicles, Wel= Welding 2W= 2-wheelers, 3W= 3-wheelers, Cons = Consulting, Auto = Automobiles Source: CII BCG Growth Index Survey; Industry association data on automotive sales 3

5 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Growth in new order inflow continued in May'18 May records above average growth rate y-o-y Welding industry recorded 15% growth in new order flow YoY Growth (%) YoY Growth (%) Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar '18 Apr '18 May '18 Auto Comp. BM Chem Cons EP MHE T&A Wel Industry Note: Auto comp.= Auto components, BM= Building Material, Cons.= Consulting, EP= Engineering Products, MHE= Material Handling Equipment, MM= Metals and Mining, T&A= Textile and Apparel, Wel= Welding. Source: CII BCG Growth Index survey 4

6 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Building Materials experienced growth at 1% Building Materials Peer growth comparison Regional growth All respondents 1 Building Materials experienced growth at 1% Volume growth (%) 4 South and West recorded positive growth - 13% each; value growth higher or at par with volume growth 2 North 5% (3%) East and North showed comparatively moderate growth 8% and 5% respectively; value growth higher or at par with volume growth New order inflows were valued at 1% Slight change in prices ( ) were recorded across regions Turnover < Rs 5 Cr Value growth (%) Value growth Y-O-Y (%) 4 2 Jul-17 Oct-17 Jan-18 Apr-18 Average Median Ø 8 West: 13% (11%) South: 13% (12%) East 8% (5%) XX:- Region XX% Value (YY%) Volume -2 All Industry Avg. YTD value growth (%) 1. Not all respondents filled in regional growth numbers. Average of regional growths therefore, may not coincide with national average. The growth numbers reported are on an year-on-year basis. No. of "visible" data points on the graph is less than the number of respondents due to overlaps. Source: CII BCG Growth Index Survey 5

7 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Material Handling Equipment witnessed a steady growth at ~25% MHE Peer growth comparison Regional growth All respondents 1 Material Handling Equipment recorded growth rate of ~25% Volume growth (%) 6 Very high growth rates were witnessed in South and West 4 North 14% (22%) South and West focused on value growth whereas North focused on volume growth New order inflows grew at ~11%, decreased by 2% compared to last month Significant price increase witnessed in South and West region whereas it decreased in North and east Value growth Y-O-Y (%) Jul-17 Oct-17 Jan-18-2 All Industry 6 Apr-18 Turnover < Rs 5 Cr Average Median Value growth (%) Ø 19.2 Avg. YTD value growth (%) West 4% (3%) South 44% (26%) East 1% (7%) XX:- Region XX% Value (YY%) Volume 1. Not all respondents filled in regional growth numbers. Average of regional growths therefore, may not coincide with national average. The growth numbers reported are on an year-on-year basis. No. of "visible" data points on the graph is less than the number of respondents due to overlaps. Source: CII BCG Growth Index Survey 6

8 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Engineering Products witnessed a steady growth at ~19% Engineering Products Peer growth comparison Regional growth All respondents 1 Engineering products grew at ~19% Volume growth (%) 1 All regions experienced steady growth rates ranging between 13% and 24% West and East registered homogenous growth rates in terms of sales value and volume New order inflows growth fell to ~1% Price were flat across the country while it fell in North Value growth Y-O-Y (%) 2 1 Jan Jul-17 All Industry Turnover < Rs 5 Cr 35 4 Value growth (%) North 13% (22%) West 19% (19%) South 18% (17%) East 24% (24%) XX:- Region XX% Value 1. Not all respondents filled in regional growth numbers. Average of regional growths therefore, may not coincide with national average. The growth numbers reported are on an year-on-year basis. No. of "visible" data points on the graph is less than the number of respondents due to overlaps. Source: CII BCG Growth Index Survey Jan-18 Average Median Jul-18 Ø 9. Avg. YTD value growth (%) (YY%) Volume 7

9 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Welding industry grew at ~14%, lower than previous month Welding Peer growth comparison Regional growth All respondents 1 Welding industry recorded a lower growth rate of ~14% compared to last month Southern region had a substantial lower growth compared to other regions North, West and East played in value New order inflows grew at moderate 15% Significant price increase was witnessed across all regions except South where price decrease was observed Volume growth (%) Turnover < Rs 5 Cr Average Value growth (%) Value growth Y-O-Y (%) Jan-17-1 Jul-17 All Industry Jan-18 Median Jul-18 Ø 8.7 Avg. YTD value growth (%) North 28% (19%) West: 25% (14%) South: 15% (19%) East 23% (1%) XX:- Region XX% Value (YY%) Volume 1. Not all respondents filled in regional growth numbers. Average of regional growths therefore, may not coincide with national average. The growth numbers reported are on an year-on-year basis. No. of "visible" data points on the graph is less than the number of respondents due to overlaps. Source: CII BCG Growth Index Survey 8

10 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Metals and Mining registered a ~13% growth rate Metals and Mining Peer growth comparison Regional growth All respondents 1 Metals & Mining witnessed a ~13% growth rate, an increase compared to last month Volume growth (%) 2 All 4 regions showed homogenous growth in value and volume 15 North 13% (13%) 1 South, North & West drove the growth showing ~13% growth both in terms of value and volume New order inflows continued their positive trend and recorded ~8% growth Prices remained flat across regions Value growth Y-O-Y (%) 4 2 Jan-17 Jul Jan-18 2 Turnover < Rs 5 Cr Average Median Value growth (%) Jul-18 Ø 1.9 West: 13% (13%) South: 13% (13%) East 1% (1%) XX:- Region XX% Value (YY%) Volume -2 All Industry Avg. YTD value growth (%) 1. Not all respondents filled in regional growth numbers. Average of regional growths therefore, may not coincide with national average. The growth numbers reported are on an year-on-year basis. No. of "visible" data points on the graph is less than the number of respondents due to overlaps. Source: CII BCG Growth Index Survey 9

11 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Auto Components grew steadily at ~1% Auto Components Peer growth comparison Regional growth All respondents 1 Auto Components witnessed a consistent monthly growth rate of ~1% Volume growth (%) 4 South led showing 12% volume growth followed by North and West at 9% and 7% respectively North 9% (8%) 5 South experienced homogenous growth rates both in terms of value and volume New order inflows grew at ~8%, a marginal increase over last month -5 Value growth Y-O-Y (%) 2 1 Jan-17 Jul-17 Jan-18 Turnover < Rs 5 Cr Average Median Value growth (%) Jul-18 Ø 1 West: 7% (6%) South: 12% (12%) East 3% (3%) XX:- Region XX% Value (YY%) Volume All Industry Avg. YTD value growth (%) 1. Not all respondents filled in regional growth numbers. Average of regional growths therefore, may not coincide with national average. The growth numbers reported are on an year-on-year basis. No. of "visible" data points on the graph is less than the number of respondents due to overlaps. Source: CII BCG Growth Index Survey 1

12 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Chemicals industry observed a 5% growth rate Chemicals Peer growth comparison Regional growth All respondents 1 Chemicals witnessed a ~5% growth rate, an increase compared to last month Marginal value growth rates were witnessed in East, West and South Volume growth (%) North 1% (2%) North recovered and observed near 1% growth with volume recovering to 2% New order inflows recorded a positive growth of ~3% Price increases were witnessed in the Eastern region Value growth Y-O-Y (%) Sep-17 All Nov-17 Industry Turnover < Rs 5 Cr Average Value growth (%) Jan-18 West: 5% (4%) South: 3% (5%) East 8% (1%) XX:- Region XX% Value Avg. YTD value growth (%) 1. Not all respondents filled in regional growth numbers. Average of regional growths therefore, may not coincide with national average. The growth numbers reported are on an year-on-year basis. No. of "visible" data points on the graph is less than the number of respondents due to overlaps. Source: CII BCG Growth Index Survey Mar-18 Median May-18 Ø 11.7 (YY%) Volume 11

13 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Industry Deep Dives 12

14 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Organized sector players set to take advantage of an attractive Plastic Pipes market Organized players have consolidated market shares in fast growing plastic pipe market Organized players will continue to take advantage Building Materials INR Bn 4 2 Substitution Growth Organized Sector PMKSY: Pradhan Mantri Krishi Sinchayee Yojana; AIBP: Accelerated Irrigation Benefits Programme Source: Industry reports, press articles, BCG analysis +15% Unorganized Sector Increasing replacement of metal pipes due to Higher durability due to lesser corrosion Higher life span by 2-3% Price advantage of 25-3% Growing demand Investment in urban infra of ~INR 4 tn over FY18-22 to drive 11-12% growth in plumbing market Irrigation demand to grow at 12-13% pushed by Govt. schemes like PMKSY and AIBP Key enablers for organized players. Neutral GST rate and stringent surveillance to erode unorganized players' competitive edge Larger players likely to benefit from brand play and lower transportation costs in regional markets Aggressive marketing, stronger dealer network and economies of scale Differentiated play to further strengthen their market position Unmatched manufacturing network and continuous product innovation Brand centric player with focus in agriculture sector Targets ubran sector through celebrity endorsements 13

15 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Mono Ethylene Glycol (MEG): Import dependency to continue to meet growing demand in textiles and plastics Chemicals Lack of domestic capacity has led to higher dependency on imports Growth in end-use segments to drive domestic consumption Mn MT % % % 2.3 Production Consumption Textile Estimated at around $15 Bn, is expected to reach $23 Bn by 22 (~9% CAGR) Capacity addition insufficient to meet growing demand Packaging Beverage and food packaging to drive growth of PET bottles at CAGR 14% Domestic supply dominated by 3 players MMTPA Current 218+ Chemicals Domestic demand for Polyester based paints is expected to reach $45 Mn by 222 (CAGR ~1%) PET: Polyethylene Terephthalate Source: Industry reports, Broker Reports, Govt. Statistics, BCG analysis 14

16 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Expanding private sector coupled with new technology acquisition to drive diagnostic equipment market Growth in second half of decade to outperform first due to increase in demand for radiation equipment Engineering Products Government initiatives to drive local manufacturing of diagnostic equipment Diagnostic Imaging Market USD Mn 2, +8.2% 1,5 +5.1% 1, 1,795 1,539 1,17 1, , National: Key Players: Multinational: Growth by product/ equipment (FY ) USD Bn 8 +34% ED +49% Radiation +31% Imaging NMDP to support local private players Higher taxes on imported 2 nd hand diagnostic equipment Other financial incentives include Tax concessions & concessional power tariff for up to 5-1 years, Low cost funding for MSEs Minimum/zero duty on import of raw materials Setting up 3 "one-stop" medical device parks: Dedicated support to be provided to companies for faster market access Logistical support, training & development, regulatory compliance, legal services Easing FDI 1% FDI allowed via automatic route for both the greenfield and brownfield routes ED- Electrodiagnostic, NMDP National Medical Device Policy Source: Broker Reports, BCG analysis 15

17 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Flexibility, productivity, reliability and precision of Collaborative Robots to drive its adoption across manufacturing sector MHE Cobots to bring efficiencies in many material handling and other industrial processes Machine Tending Welding Painting COBOT Text Classified by payload weight handling capacity Component Handling Assembly Quality Testing... Early adopters from auto, healthcare and machine manufacturing reap benefits Select Examples Installed ~12 Cobots 58.5% increase in productivity VPY 3kg to 1kg payload co-bots cost Rs Mn per unit 1 Assembled Cobots imported in CKD form Brought down the costs 2 by 35-4% Installed 8 Cobots Improved production from 15 to 1, IOLpd ROI less than 2 years Installed 1 Cobot Increased production from 3 pieces per week to 8-9 pieces per week - 3% increase Weight Limit Est. Cost <=5 kg $25 K $35 K <=1 kg $35 K $45 K >1 kg $48 K $6 K Other early adopters 1: Inclusive of entire set up cost; 2: Including the software and hardware setup cost; COBOT: Collaborative Robots; EC: Average per Unit Equipment Cost; WL: Average Payload Weight Limit; VPY: per Vehicle per Person per Year; OEM: Original Equipment Manufacturer; CKD: Completely Knocked Down; ROI: Return on Investment; IOLpd: Intra Ocular Lenses per day Source: Press Articles, BCG analysis 16

18 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Increasing production leading to resurgence in India's iron ore exports Metals and Mining Govt. initiatives and favorable market conditions driving production Mining ceilings raised in key iron ore producing states Karnataka: SC lifted annual iron ore mining ceiling to 35 mn tonnes Orissa: Approval of environment clearance limit of 18 mn tonnes for iron ore production at working and non-working mines Exports to boost from govt. tax cuts No Export tax on low grade iron ore (fines and lumps below 58% Fe grade) from FY17 Changes in global market condition to further strengthen exports Rise in import prices of Chinese iron ore by 16% by 22 to result in increasing margins Systemic shift in policy making Govt's plan to shift iron ore mining under Ministry of Steel Leading to better integration of supply and demand Mn tonnes Key players Exports expected to continue to grow and sustain Export (E) Production + Import (E) Consumption (E) SC: Supreme Court; mn: millions; Source: Industry reports; Govt dashboards; BCG analysis 17

19 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Adoption of industrial welding robots gaining traction in India's manufacturing sector Auto OEMs early adopters Welding Robotic welding prevalent in various automotive manufacturing processes Automobile companies invest and innovate to increase adoption of robotic welding RSW GMAW LBM Avg of 4,5 spot welds on steel body of a car Used in drive train, engine, axle and frame sections Select Examples Used in automatic transmission components, roofto-side panel joints Select Examples 7 spot welding robots in Pune and Sanand plants 1% automated welding in Sriperumbudur plant MPW Used for joining dissimilar metals like Al and steel Robotic weld technology deployed subject to assessment of key factors Material properties Required quality and precision >2, robots deployed in the weld shop at Manesar ~12 robots per car Opened a robotic welding application center in Pune Time to breakeven Impact on productivity Indigenously developed welding robot Reach of 85 mm and payload capacity of 6kg Targeted at Tier 3 and 4 suppliers RSW: Resistance Spot Welding; GMAW: Gas Metal Arc Welding; LBM: Laser Beam Welding; MPW: Magnetic Pulse Welding; Al: Aluminum; mm: Millimeters; kg: Kilogram; OEM: Original Equipment Manufacturer Source: Press articles, industry reports, BCG analysis 18

20 Entry of New Market Players Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Auto Components Auto component manufacturers need to revisit product portfolio to strengthen their position in the growing EV market Regulations to drive adoption of EVs Leading to opportunities for new market entrants in the auto component value chain First movers likely to gain long term benefits NEMMP: Outlay of Rs 14, Cr till 22 to promote hybrid & electric mobility FAME: Incentives to promote technology development, demand creation and charging infrastructure High ICE Space Electric Motors PMSS Power Electronics Interior Electronics Displays/ Infotainment Batteries HVAC VHMSS Autonomous Sensors BTM Select Examples Supplier of EV Components Batteries, starter motors, power electronics and transmission Modifications in Electricity Act: No separate license required for building EV charging stations National Auto Policy 228: Stringent emission standards and its harmonization with global standards Low Transmission Exhausts Reduced Electrical Components Axle Engine Components Brakes Steering Systems Content per Vehicle Lightweight Materials EV Space Increased Development of a compact & ultra highefficiency powertrain Plans to enter EV segment with a lithiumion battery plant EV: Electric Vehicle, BTM: Battery Thermal Management, PMSS: Power Management Software Solution, VHMSS: Vehicle Health Management Software Solution, ICE: Internal Combustion Engine, FAME: Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles), RE: Renewable Energy, NEMMP: National Electric Mobility Mission Plan Source: Press Research, Broker Reports, BCG Analysis 19

21 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Rising fuel prices contribute to slow growth in PV segment while demand from infrastructure sector drive CV segment's growth Automobiles Passenger vehicles (PV) Commercial vehicles (CV) 2 Wheelers Volume growth (%) 1 Volume growth (%) 1 Volume growth (%) All industry average Value growth (%) Passenger vehicles grew by 19.7% with domestic sales reaching ~31 thousand units Growth in passenger cars (19.6%) outperform the UV segment (17.5%) Maruti Suzuki strengthened its position as market leader in PV segment with an YoY growth of 24% in May Value growth (%) All industry average Commercial Vehicles, led the growth of the Auto sector (43% YoY) Domestic sales of Tata Motors in CV segment during May 218 saw an increase of 6% compared to May 217 Small CVs in high demand as growth in E- commerce and the hub and spoke model push for providing last mile connectivity across rural and urban markets Value growth (%) All industry average The two-wheeler industry reported a growth of 9.2% YoY during May 218 2W sales stood at 1.85 Mn units, close to breaching 2 Mn units Hero MotoCorp & Honda Motorcycle continue to dominate 2W market together having ~65% market share Source: CII BCG growth index survey, Industry association data on automotive sales 2

22 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. PV segment remained steady however rising commodity and fuel prices might impact customer sentiment and future sales Automobiles Domestic sales break up of total passenger vehicles sales # vehicles (in s) Y-o-Y growth % (May '18 vs May '17) Vans Utility Vehicles(UVs) Passenger Cars PV growth Y-o-Y (%) May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May Source: SIAM, ICRA report, BCG analysis 21

23 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Automobiles CV segment witnessed buoyant growth with progress in infrastructure projects and robust demand in the private consumption-led sectors Domestic sales break up of total commercial vehicles sales # vehicles (in s) Y-o-Y growth % (May '18 vs May '17) M&HCVs LCVs May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 CV growth Y-o-Y (%) Source: SIAM, ICRA report, BCG analysis 22

24 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. Inventory corrections at Honda and Hero MotoCorp contribute to drop in two wheeler sales in May Automobiles Domestic sales break up of total 2-wheelers sales # vehicles (in s) 2,5 2, 1,5 1, 1, , , , , , , , , , , , , Y-o-Y growth % (May '18 vs May '17) Mopeds Scooters Motorcycles/ Step-Through , ,49 1,136 1,27 1, ,54 1,53 1,145 1,23 1,222 2W growth Y-o-Y (%) May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May Source: SIAM, ICRA report, BCG analysis 23

25 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Copyright 218 by The Boston Consulting Group, Inc. All rights reserved. May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Overall economic indicators: May review Growth Indices Balance of payment measures Commercial vehicle sales Latest month Previous month Economy statistics India GDP growth est. (%) Current account Latest month Exports growth (%),(y-o-y) 2.2 Previous month 5.2 ' +5% China GDP growth est. (%) Oil imports growth (%), (y-o-y) Inflation WPI (%) Non-oil imports growth (%),(y-o-y) 6. (4.3) BSE Sensex 4 35,322 35,16 Trade deficit (US$ Bn) (13.7) Select industry metrics IIP (%) 3, (y-o-y) Capital account NRI deposits (US$ Bn) Passenger vehicle sales ' +1% Energy req. growth (%), (y-o-y) FII flows (US$ Mn) (1,487.4) (845.9) PV Auto vol growth (%), (y-o-y) FDI flows (US$ Mn) 3 6,61 2,977 CV Auto vol growth (%), (y-o-y) Forex reserves (US$ Bn) Cement production (Mn Tn) Currency competitiveness Steel production (Mn Tn) Average of recent GDP estimates for FY18-19 for China and India made by leading international financial institutions; 2. As on May 25, 218; 3. For Mar'18 and Apr'18; 4. Month end value for Apr'18 and May'18 Note: PV and CV refer to passenger and commercial vehicles resp. FII inflows Includes only equity flows. Base year for WPI and IIP has been changed to from 24-5 earlier. Source: RBI, Thomson One, Office of Economic Advisors, EMIS, Press Search, BCG analysis 24

26 Copyright 217 by The Boston Consulting Group, Inc. All rights reserved. The services and materials provided by The Boston Consulting Group (BCG) are subject to BCG's Standard Terms (a copy of which is available upon request) or such other agreement as may have been previously executed by BCG. BCG does not provide legal, accounting, or tax advice. The Client is responsible for obtaining independent advice concerning these matters. This advice may affect the guidance given by BCG. Further, BCG has made no undertaking to update these materials after the date hereof, notwithstanding that such information may become outdated or inaccurate. The materials contained in this presentation are designed for the sole use by the board of directors or senior management of the Client and solely for the limited purposes described in the presentation. The materials shall not be copied or given to any person or entity other than the Client ( Third Party ) without the prior written consent of BCG. These materials serve only as the focus for discussion; they are incomplete without the accompanying oral commentary and may not be relied on as a stand-alone document. Further, Third Parties may not, and it is unreasonable for any Third Party to, rely on these materials for any purpose whatsoever. To the fullest extent permitted by law (and except to the extent otherwise agreed in a signed writing by BCG), BCG shall have no liability whatsoever to any Third Party, and any Third Party hereby waives any rights and claims it may have at any time against BCG with regard to the services, this presentation, or other materials, including the accuracy or completeness thereof. Receipt and review of this document shall be deemed agreement with and consideration for the foregoing. BCG does not provide fairness opinions or valuations of market transactions, and these materials should not be relied on or construed as such. Further, the financial evaluations, projected market and financial information, and conclusions contained in these materials are based upon standard valuation methodologies, are not definitive forecasts, and are not guaranteed by BCG. BCG has used public and/or confidential data and assumptions provided to BCG by the Client. BCG has not independently verified the data and assumptions used in these analyses. Changes in the underlying data or operating assumptions will clearly impact the analyses and conclusions. 25

27 Copyright 217 by The Boston Consulting Group, Inc. All rights reserved. Copyright (YEAR) Confederation of Indian Industry (CII). All rights reserved. No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), in part or full in any manner whatsoever, or translated into any language, without the prior written permission of the copyright owner. CII has made every effort to ensure the accuracy of the information and material presented in this document. Nonetheless, all information, estimates and opinions contained in this publication are subject to change without notice, and do not constitute professional advice in any manner. Neither CII nor any of its office bearers or analysts or employees accept or assume any responsibility or liability in respect of the information provided herein. However, any discrepancy, error, etc. found in this publication may please be brought to the notice of CII for appropriate correction. Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi 113, India, Tel: , Fax: ; info@cii.in; Web: 26

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