DOMESTIC:

Sun Pharma receives eight observations on conclusion of USFDA inspection of Halol facility

Granules India to sell a stake in China JV to Hubei Biocause for 109 million Japanese yen

Reliance arm buys 51.78% stake in Asteria Aerospace

Adani Transmission receives LoI for transmission project in the state of Maharashtra

UPL gets green nod for Rs353cr pesticide unit expansion project in Gujarat

PFS gets Rs145cr from resolution of stressed account Prayagraj Power Generation Company

RIL arm inks pact to get over Rs25,000cr investments from Canada’s Brookfield

Cipla acquires brand, trademark for anti-diabetic drug Vysov in India

Reliance Industries ends IOC's 10-year reign to become India's largest company

ELGI Equipments Ltd board acquisition of Michigan Air Solutions LLC

Glenmark's Baddi manufacturing unit receives GMP certificate from European regulator

Tata Motors in alliance talks with Chinese firms

Petco selects TCS Optumera to drive its intelligent merchandising strategy

NMDC gets 20-year extension for four iron ore mines

Nestle examining show-cause notice on GST benefits

SPARC acquires Bioprojet's rights for SCD-044

Lemon Tree Hotels signed a new property licence agreement

Natco launches cut price versions of cancer drug Ibrutinib in India

Panacea Biotec bags orders worth USD24mn from UN agencies

NBCC bags Rs1,393cr project from DDA to develop 'East Delhi Hub'

IL&FS Group gets court's approval for sale of its education business

L&T Technology Services opens design centre in United States

Lupin receives approval for Betamethasone Dipropionate Ointment USP

ECONOMY:

Moody’s keeps India GDP growth forecast at 5.6%

Wholesale price inflation rises to 0.58% in November

India, Germany ink pact for Rs1,958cr finance to develop energy-efficient housing programme

RBI announces OMO on Dec 23 to bridge liquidity gap

INDUSTRY:

Drug cos under NPPA lens for self-exemption from price cap

Housing sales may rise marginally by 4% in 2019: Report

India cannot achieve USD5tn economy with slowing automotive industry

Pharma sector likely to grow at 10-12% during FY19-22, outlook stable: ICRA

Investment in real estate up 9% at Rs44,000cr in 2019

The week that went by: The week started on a strong note with the IT stocks taking the lead with the strong USDINR. Following the strong global cues, Indian markets commenced trade on a steady note. After the strong performance in the previous session, new record highs were seen at 12,200 on the Sensex in the midweek trade. Some cool off was seen post the new highs ending the day however at new highs. Last trading day of the week opened flat with a positive bias.

Price Performance

Company 1M 3M 12M

Supreme Petrochem Ltd -6.5% -10.4% -26.0%

Shanthi Gears Ltd -2.2% 8.6% -23.9%

Hind Rectifiers Ltd -8.7% 39.8% 68.9%

KCP Ltd -11.4% -22.5% -40.4%

The Hi-Tech Gears Ltd -6.2% -10.8% -51.1%

Bharat Bijlee Ltd -5.2% -13.4% -33.7%

Triveni Turbines Ltd -4.0% 1.9% -22.8%

Siemens Ltd -0.3% 16.0% 54.4%

GMM Pfaudler Ltd 8.0% 15.8% 47.9%

Alicon Castalloy Ltd -5.1% -5.8% -43.9%

Gufic Biosciences Ltd -8.9% -11.2% -37.6%

Excel Industries Ltd 1.1% -8.8% -43.0%

Vesuvius India Ltd 13.1% 12.6% -1.4%

Munjal Showa Ltd -4.2% -7.0% -34.1%

Bharat Rasayan Ltd -0.9% 16.0% 13.5%

Alkyl Amines Chemicals Ltd 7.9% 38.0% 75.4%

Grauer and Weil (India) Ltd 0.0% 0.4% -8.8%

Texmaco Rail & Engineering Ltd -22.0% -33.4% -44.4%

Nagarjuna Agrichem Ltd -4.6% -6.7% -9.4%

ITD Cementation India Ltd -19.0% -23.2% -58.8%

Westlife Development Ltd -2.8% 10.0% -6.2%

Dynamatic Technologies Ltd -10.7% -24.7% -38.0%

Hitech Corporation Ltd -47.5% 1.7% -26.4%

NRB Bearings Ltd -3.3% -6.4% -53.4%

Kokuyo Camlin Ltd -0.3% 1.2% -32.7%

Timken India Ltd 1.0% 16.1% 47.0%

Morganite Crucible (India) Ltd -2.6% -5.0% -6.9%

Vardhman Special Steels Ltd -6.8% -16.7% -39.3%

Zen Technologies Ltd -9.7% -14.9% -27.6%

KSB Ltd -4.2% 0.4% -13.8%

Thermax Ltd 3.3% -3.5% -5.0%

Transpek Industry Ltd -9.2% -5.6% -17.7%

BASF India Ltd 1.4% -6.3% -39.4%

Artson Engineering Ltd -9.7% -22.4% -46.6%

Remsons Industries Ltd -2.5% -20.5% -32.2%

Snowman Logistics Ltd -2.8% 41.4% 12.9%

Alembic Pharmaceuticals Ltd -0.5% 5.3% -8.65%

SKF India Ltd -2.3% 1.2% 13.6%

HFCL Ltd -0.9% -10.4% -20.4%

Sudarshan Chemical Industries Ltd 2.2% 21.4% 13.8%

Huhtamaki PPL Ltd 7.0% 7.9% 26.5%

Mishra Dhatu Nigam Ltd -11.1% 17.6% 22.8%

Anuh Pharma Ltd -2.7% -14.9% -23.9%

Kirloskar Pneumatic Co. Ltd -12.1% -24.5% -32.4%

Integra Engineering Ltd 10.0% -3.6% -30.2%

ICICI Bank Ltd 10.3% 30.8% 50.7%

Indian Hume Pipe Co. Ltd -4.8% -27.1% 18.7%

Engineers India Ltd 0.0% -8.7% 67.7%

Gulshan Polyols Ltd -1.2% -23.8% -42.4%

Nesco Ltd 0.9% 18.3% 41.8%

Castrol India Ltd -15.8% -1.1% 65.8%

Hikal Ltd -2.0% -30.4% 1.4%

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20 Dec 2019

Page No: 1

Recommendations adjusted as per Corporate Actions

Company Reco Target Corp Action Adj Price Adj Tgt Price Appreciation

IHP Ltd 341 600 Bonus 1 : 1 171 500 18%

Engineers India Ltd 211 200 Bonus 1 : 1 105 200 -1%

Gulshan Polyols Ltd 390 500 Stock Split from Rs.FV 5 to Rs.FV 1 110 78 -51%

Nesco Ltd 2397 3200 Stock Split from Rs.FV 10 to Rs.FV 2 479 640 34%

Castrol India Ltd 447 550 Bonus 1 : 1 223 200 -42%

Hikal Ltd 143 325 Bonus 1 : 2 95 216 14%

Coverage Universe Valuations

Company Reco Adj Reco CMP Tgt price Upside Mcap EPS PE(x) EV/EBITDA (x)

(Rs) (Rs) (Rs) (%) (Rs bn) FY20 FY20 FY20

IHP Ltd BUY 341 201 500 148.4 9.7 20.1 10.0 6.7

Engineers India Ltd BUY 211 104 200 91.7 35.2 7.0 14.9 12.6

Gulshan Polyols Ltd BUY 390 38 78 105.3 1.8 5.1 7.5 3.7

Nesco Ltd BUY 2397 640 800 25.0 9.0 23.7 27.0 21.7

Castrol India Ltd BUY 223 129 200 55.5 63.6 15.6 8.3 10.8

Hikal Ltd BUY 143 109 175 61.2 8.9 10.1 10.8 7.1

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20 Dec 2019

Page No: 2

Coverage Universe Valuations

Company Reco Reco at CMP Tgt price Upside Mcap EPS/ ABV

PE/ (P/ABV) [x]

EV/EBITDA (x)

(Rs) (Rs) (Rs) (%) (Rs bn) FY20 FY20 FY20

Supreme Petrochem Ltd BUY 77 158 275 74.1 15.2 6.4 24.7 8.8

Shanthi Gears Ltd BUY 107 98 150 52.7 8.0 3.9 25.2 18.4

Hind Rectifiers Ltd BUY 69 200 275 37.5 3.0 5.3 37.8 18.9

KCP Ltd BUY 71 57 105 83.2 7.4 7.0 8.2 6.3

The Hitech Gears Ltd BUY 298 164 300 82.7 3.1 21.2 7.7 6.0

Bharat Bijlee Ltd BUY 787 786 1500 90.8 4.4 37.4 21.0 16.4

Triveni Turbines Ltd BUY 92 94 150 60.0 0.3 3.1 30.1 18.9

Siemens Ltd BUY 1128 1540 1750 13.7 548.1 53.6 28.7 39.1

GMM Pfaudler Ltd BUY 332 1760 2000 13.6 25.7 26.7 66.0 40.5

Alicon Castalloy Ltd BUY 288 356 650 82.5 4.4 46.6 7.6 4.8

Gufic Biosciences Ltd BUY 50 60 120 99.5 4.6 3.1 19.3 11.0

Excel Industries Ltd BUY 380 828 1200 45.0 10.7 112.2 7.4 4.5

Vesuvius India Ltd BUY 1165 1118 1300 16.2 22.4 56.3 19.9 10.3

Munjal Showa Ltd BUY 191 122 191 56.8 4.9 21.5 5.7 3.7

Bharat Rasayan Ltd BUY 2747 6230 7500 20.4 26.2 257.5 24.2 15.3

Alkyl Amines Chemicals Ltd BUY 391 1090 1300 19.3 22.2 38.9 28.0 15.5

Grauer and Weil (India) Ltd BUY 45 48 65 35.4 10.9 3.0 16.2 10.6

Texmaco Rail & Engineering Ltd BUY 91 33 91 172.0 20.2 1.8 18.5 11.6

Nagarjuna Agrichem Ltd BUY 29 26 45 73.7 4.0 0.8 32.8 11.9

ITD Cementation India Ltd BUY 158 48 130 173.7 7.4 9.8 4.8 3.5

Westlife Development Ltd BUY 266 346 450 30.1 53.8 1.6 218.0 50.4

Dynamatic Technologies Ltd BUY 2160 985 2160 119.3 6.2 51.1 19.3 7.1

Hitech Corporation Ltd BUY 175 82 125 51.6 1.4 6.4 12.9 6.0

NRB Bearings Ltd BUY 138 94 138 46.5 9.1 10.4 9.1 5.9

Kokuyo Camlin Ltd BUY 132 74 132 77.7 7.5 1.5 50.5 18.3

Timken India Ltd BUY 883 865 1000 15.7 58.8 19.0 45.6 22.9

Morganite Crucible (India) Ltd BUY 1047 1520 2000 31.6 4.3 63.9 23.8 2.8

Vardhman Special Steels Ltd BUY 151 63 110 73.8 2.3 8.7 7.3 6.0

Zen Technologies Ltd BUY 115 56 125 123.2 4.3 0.8 69.6 41.6

KSB Ltd BUY 820 652 1100 68.6 22.7 21.2 32.8 13.8

Thermax Ltd BUY 1019 1055 1230 17 125.7 26.8 39.4 29.0

Transpek Industry Ltd BUY 1547 1170 2000 70.9 6.5 76.0 15.4 11.9

BASF India Ltd BUY 1954 958 1400 46.1 41.5 43.5 22.0 11.8

Artson Engineering Ltd BUY 64 26 55 107.9 1.0 2.3 11.5 13.9

Remsons Industries Ltd BUY 104 71 130 82.7 0.4 7.9 9.0 6.7

Snowman Logistics Ltd BUY 33 41 55 33.7 6.9 0.1 285.9 15.1

Alembic Pharmaceuticals Ltd BUY 605 546 751 37.5 102.9 26.7 20.4 14.4

SKF India Ltd BUY 1942 2165 2620 21.0 111.1 60.7 35.7 23.7

HFCL Ltd BUY 25 17 35 104.1 21.4 1.7 10.2 6.6

Sudarshan Chemical Industries Ltd BUY 372 400 500 25.1 25.8 13.8 29.0 13.8

Huhtamaki PPL Ltd BUY 254 250 320 28.1 18.9 11.2 22.3 8.0

Mishra Dhatu Nigam Ltd BUY 123 153 190 24.5 23.0 7.0 21.9 15.4

Anuh Pharma Ltd BUY 142 128 175 36.7 3.2 9.3 13.7 10.8

Kirloskar Pneumatic Co. Ltd BUY 134 118 192 63.1 7.6 8.6 13.7 8.3

Integra Engineering Ltd BUY 37 41 50 20.9 1.4 3.2 12.7 16.8

ICICI Bank Ltd BUY 535 546 657 20.4 3526.0 151.4 3.6 -

*Castrol, Vesuvius – Dec Ending | Siemens—Sept ending|

Recommendations adjusted as per Corporate Actions

Company Reco Target Corp Action Adj Price Adj Tgt Price Appreciation

IHP Ltd 341 600 Bonus 1 : 1 171 500 18%

Engineers India Ltd 211 325 Bonus 1 : 1 105 200 -1%

Gulshan Polyols Ltd 390 500 Stock Split from Rs.FV 5 to Rs.FV 1 110 78 -51%

Nesco Ltd 2397 3200 Stock Split from Rs.FV 10 to Rs.FV 2 479 640 34%

Castrol India Ltd 447 550 Bonus 1 : 1 223 200 -42%

Hikal Ltd 143 325 Bonus 1 : 2 95 216 14%

*Castrol, Vesuvius – Dec Ending | Siemens—Sept ending| * T= Target

Coverage Performance Sheet

Company Reco at CLS Target Price (Rs) Appreciation

(Rs) (Rs) T1 T2 T3 T4 T5 T6 T7 T8 T9

IHP Ltd 341 201 500 600 500 - - - - 18% - -

Engineers India Ltd 211 104 200 250 200 - - - - -1% - -

Gulshan Polyols Ltd 390 38 110 78 - - - - - -51% - -

Nesco Ltd 2397 640 640 800 - - - - - 34%

Castrol India Ltd 223 129 275 250 200 - - - - -42% - -

Hikal Ltd 143 109 200 250 325 216 175 - - 14% - -

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20 Dec 2019

Page No: 3

Coverage Performance Sheet

Company Reco at CLS Target Price (Rs) Appreciation

(Rs) (Rs) T1 T2 T3 T4 T5 T6 T7 T8 T9

Supreme Petrochem Ltd 77 158 120 150 200 275 350 500 275 - - 105%

Shanthi Gears Ltd 107 98 150 200 150 - - - - - - -8%

Hind Rectifiers Ltd 69 200 110 140 175 220 275 - - - - 190%

KCP Limited 71 57 105 150 200 150 125 105 - - - -19%

The Hitech Gears Ltd 298 164 450 600 500 450 300 - - - - -45%

Bharat Bijlee Ltd 787 786 1100 1500 2000 1500 - - - - - 0%

Triveni Turbines Ltd 92 94 135 150 - - - - - - - 2%

Siemens Ltd 1128 1540 1500 1350 1500 1750 - - - - - 36%

GMM Pfaudler Ltd 332 1760 500 700 800 1000 1300 1600 2000 - - 430%

Alicon Castalloy Ltd 288 356 450 600 750 1000 850 650 - - - 24%

Gufic Biosciences Ltd 50 60 75 100 140 175 150 120 - - - 20%

Excel Industries Ltd 380 828 550 650 800 1100 1400 1800 2200 1800 1200 118%

Vesuvius India Ltd 1165 1118 1500 1300 - - - - - - - -4%

Munjal Showa Ltd 191 122 250 300 350 300 250 191 - - - -36%

Bharat Rasayan Ltd 2747 6230 3500 4250 5000 6500 9000 5000 6500 7500 - 127%

Alkyl Amines Chemicals Ltd 391 1090 550 700 850 1000 1300 - - - - 179%

Grauer and Weil (India) Ltd 45 48 65 80 100 65 - - - - - 7%

Texmaco Rail & Engineering Ltd 91 33 125 150 91 - - - - - - -63%

Nagarjuna Agrichem Ltd 29 26 45 60 75 60 45 - - - - -11%

ITD Cementation India Ltd 158 48 225 180 130 - - - - - - -70%

Westlife Development Ltd 266 346 350 425 525 450 - - - - - 30%

Dynamatic Technologies Ltd 2160 985 3000 2750 2160 - - - - - - -54%

Hitech Corporation Ltd 175 82 230 180 150 125 - - - - - -53%

NRB Bearings Ltd 138 94 200 240 138 - - - - - - -32%

Kokuyo Camlin Ltd 132 74 175 132 - - - - - - - -44%

Timken India Ltd 883 865 1200 1000 - - - - - - - -2%

Morganite Crucible (India) Ltd 1047 1520 1500 1750 2300 2000 - - - - - 45%

Vardhman Special Steels Ltd 151 63 225 140 110 - - - - - - -58%

Zen Technologies Ltd 115 56 170 125 - - - - - - - -51%

KSB Ltd 820 652 1100 - - - - - - - - -20%

Thermax Ltd 1019 1055 1230 - - - - - - - - 4%

Transpek Industry Ltd 1547 1170 2000 - - - - - - - - -24%

BASF India Ltd 1954 958 2500 2000 1700 1400 - - - - - -51%

Artson Engineering Ltd 64 26 95 75 55 - - - - - - -59%

Remsons Industries Ltd 104 71 155 130 - - - - - - - -32%

Snowman Logistics Ltd 33 41 55 - - - - - - - - 25%

Alembic Pharmaceuticals Ltd 605 546 751 - - - - - - - - -10%

SKF India Ltd 1942 2165 2620 - - - - - - - - 11%

HFCL Ltd 25 17 35 - - - - - - - -31%

Sudarshan Chemical Industries Ltd 372 400 500 - - - - - - - - 7%

Huhtamaki PPL Ltd 254 250 320 - - - - - - - -2%

Mishra Dhatu Nigam Ltd 123 153 160 190 - - - - - - - 24%

Anuh Pharma Ltd 142 128 175 - - - - - - - -10%

Kirloskar Pneumatic Co. Ltd 134 118 192 - - - - - - - - -12%

Integra Engineering Ltd 37 41 50 - - - - - - - 12%

ICICI Bank Ltd 535 546 657 - - - - - - - - 0.02

TERM OF THE WEEK:

Financial Leverage: Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. This generally magnifies the increase in EPS during periods of rising operating income but adds significant risks for stockholders and creditors because of the interest obligations.

COVERAGE NEWS:

Texmaco Rail & Engineering Limited: NCLT has admitted an insolvency petition of Veekay General Industries, an operational creditor of Bright Power Projects (India) Ltd u/s 9 of IBC against Texmaco for an alleged operational debt of ~Rs63 lakhs. Pursuant to the petition, Texmaco has filed an appeal before the National Company Law Appellate Tribunal.

HFCL Limited: The company has completed the acquisition of the balance 50.10% equity shares held in DragonWave HFCL India Private Limited through DragonWave Pte. Ltd for total consideration of Rs2.25cr; thereby making it a wholly owned subsidiary of HFCL.

Castrol India Limited: The company has entered into a strategic partnership with Renault India Private Ltd, under which Castrol will be aftersales engine oil lubricants supplier effective 1st January, 2020.

Alembic Pharmaceuticals Limited: The company’s joint venture, Aleor Dermaceuticals Ltd., has received EIR from USFDA for inspection at JV’s formulation facility at Karakhadi, Gujarat from 16th-20th September, 2019.

Anuh Pharma Limited: The company has received consent to operate for expansion with Amalgamation of existing consent to operate.

ECONOMY:

Moody’s keeps India GDP growth forecast at 5.6% Moody’s has reiterated India’s GDP growth forecast for 2019 at 5.6%, which it had lowered from 5.8% in October, 2019. This expected growth at 5.6% is lower than 7.4% growth in 2018. The forecast is affected by demand that has cooled down and also slower employment growth that is impacting consumption. Economic growth started decelerating since mid-2018, with real GDP slipping to approx. 5% from nearly 8% then. Moody’s is of the view that boosters by the government have not directly attacked the main pain point, consumption demand. Also, rate cuts by RBI have not been effectively transmitted to lending rates due to the existing credit crunch caused by the NBFC sector meltdown. Our comments: Though growth is expected to be subdued this 2019, Moody’s expects economic growth to pick up in 2020 at 6.6% and 2021 at 6.7%.

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20 Dec 2019

Page No: 4

Weekly Sectoral Gainers & Losers in (%)

Corporate Announcement

Acquisition Update

Castrol-Renault Partnership

EIR For Alembic

Corporate Announcement

Lower GDP Forecast

ECONOMY:

Wholesale price inflation rises to 0.58% in November Wholesale price inflation rose to 0.58% in November, while that of October was 0.16%. This was attributable to a sharp increase in food prices. Spike in the inflation for primary food articles to a 71 month high 11.1%, drove up the WPI inflation in November 2019. Inflation in manufactured products remained unchanged at -0.84 % in November, while that in fuel and power was -7.32%. Retail inflation rose to over a 3 year high of 5.54% in November due to costlier food products like vegetables, pulses and protein-rich items. However, Core-WPI displayed a y-o-y disinflation for the fourth consecutive month indicating that the demand in the economy is still low. Our comments: These indicators need to be monitored to understand whether or not India is facing stagflation, as current economic trends suggest fast decelerating economic growth and sharply rising inflation.

INDUSTRY:

Drug cos under NPPA lens for self-exemption from price cap Various Pharmaceutical Companies have come under the scanner of the National Pharmaceutical Pricing Authority (NPPA) for excluding products from the price control regime without first applying for the exemption. Companies such as Sun Pharmaceutical Industries, Abbott, AstraZeneca, Lupin, and Boehringer Ingelheim have launched products by bypassing the regulatory framework as they are violating the Drug Price Control Order (DPCO). Para 32 of DPCO gives powers to NPPA to exempt certain classes of drugs from price control for a period of 5 years with a prerequisite that the companies have developed the drug with proper unique and indigenous process. However, some of the companies mentioned above have launched anti-diabetes drugs under Para 32 of DPCO without submission of the requisite documents and if the drug company fixes the price via a self-exemption mode, the NPPA can direct them to get the prices either fixed or recover it in case the drug is overpriced. Our comments: The companies have been asked to provide data on manufacturing, import and sales since the launch of the products. The NPPA shall take further necessary action as applicable. COMPANY:

RIL arm inks pact to get over Rs25,000cr investments from Canada’s Brookfield Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), has entered into binding agreements with Brookfield Infrastructure Partners LP, and its institutional partners, for an investment of Rs25,215cr in the units to be issued by the Tower Infrastructure Trust. This transaction demonstrates the belief of global investors in the potential of India’s digital opportunity. Our comments: After the closure of the transaction, the Trust will own 100% of the issued and paid up equity share capital of Reliance Jio Infratel Private Limited (RJIPL). RJIPL has a portfolio of approximately 130,000 telecom towers that form the backbone of Reliance Jio Infocomm Limited’s network. The company plans to scale up to 175,000 towers eventually. UPL gets green nod for Rs353cr pesticide unit expansion project in Gujarat The company has received an environmental clearance from the government for its Rs353.43cr pesticide unit expansion project in Bharuch district of Gujarat. This approval has been granted subject to certain conditions which includes that the company shouldn’t produce banned pesticides/chemicals nor use any prohibited raw material that goes into the production of pesticides. The proposed projects aim at expansion of the manufacturing capacities of existing pesticide products of technical grade, intermediate products and solid/liquid formulations, also for adding new products. Our comments: The company plans to increase the pesticide capacity from 1520 Tonne Per Month (TPM) to 4720TPM and pesticide specific intermediate from 1120TPM to 2100TPM at Ankleshwar.

Marginal Rise In WPI

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20 Dec 2019

Page No: 5

Show-Cause Notice For Pharma Companies

UPL’s Unit Expansion

RIL’s Binding Deal

COMPANY:

Reliance arm buys 51.78% stake in Asteria Aerospace Reliance Strategic Business Ventures Ltd (RSBVL), a subsidiary of Reliance Industries has acquired over 51% stake in Asteria Aerospace for Rs23.12cr. RSBVL proposes to make further investments of upto Rs125cr, subject to Asteria achieving the agreed milestones and is expected to be completed by December 2021. Post this further investment, RSBVL’s stake would increase to 87.3% in Asteria. Our comments: The investment will further enable the group's initiatives in emerging technology. Sun Pharma receives eight observations on conclusion of USFDA inspection of Halol facility The USFDA has conducted a Good Manufacturing Practices inspection at the company’s Halol facility at Gujarat from 03-13th December, 2019. At the conclusion of the inspection, the agency issued a Form 483, with 8 observations. The company is committed to addressing these observations promptly and remains committed to working closely with the regulator thereby continuing to enhance its GMP compliance on an ongoing basis. Our comments: Sun Pharma is preparing the response to the observations, which will be submitted to the USFDA within 15 business days. Tata Motors: JLR acquired performance vehicles maker, Bowler Jaguar Land Rover Automobile has acquired a UK based company, Bowler. Bowler is a manufacturer of all terrain cars and parts also rally raid vehicles. Bowler would continue operations from its Belper premise and would now be a part of JLR's Special Vehicle Operations business. The amount spent by JLR for this acquisition is undisclosed. JLR looks to add new and innovative products to its Special Vehicle line and Bowler team's skills and experience to those of SV will pave the way for the same. Our comments: The main focus of JLR now is to foresee smooth transition of Bowler’s employees and customers. Piramal enterprises looks to sell 20% equity in healthcare business The company has put up 20% equity in its healthcare vertical for sale, seeking to expand the business. To realise this plan, the group is looking to raise funds or bring in a financial partner. The funds will be raised through the issue of a minority stake of up to 20% in the pharma business, which will be purely growth capital and infused into the pharma subsidiary. Our comments: PEL wants to accelerate growth for its healthcare division through acquisitions that will expand its portfolio of products, offer opportunities to buy brands or leverage its distribution network across the US, Europe and Asia.

20 Dec 2019

Page No: 6

JLR-Bowler Acquisition

RSBVL-Asteria Acquisition

USFDA Observations

Minority Stake Sale

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