June 2014AUTOMOBILES & AUTO ANCILLARIES AMEYA BOTHARA Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON |1 Tesla opens its tech for all 12 June, California Teslamadeitspatentsfreelyavailabletoanyonewho wantstouseit!CEOElonMuskreasonsthatthe adoptionofEVs(ElectricVehicles)willincreaseifthe technology is provided to all so that all auto majors will nothavetostartafreshbutwithTeslastechnologyas base to build upon. They had closely guarded its patents earliertobuildacompetitiveadvantagebuttheEV volumeswerenoteven1%oftotalUScarproduction. Musk hopes with this move, many companies will join in withTeslatechnologyasbaseandhenceexpandthe market.Ifthingsgowell,Teslatechnologyof superchargers(electricchargingstations)willbethe mainstayofindustry.Mahindrahasalreadybegunto review the patents for its EV business Abizarremovewhichmaynotonlyhelpincreasethe marketbyprovidingstandardchargingstationsbut also increase acceptability of EVs. Ashok Leyland transforms itself during slowdown 16June, Chennai Thecommercialvehicleindustryhasplummetedto abysmallowsduetomacroeconomicfactorsleadingto hugelossesbornebytheindustryplayers.Ashok Leylandtooborelossesbutturnedthisslowdown opportunitytoimprovebyfocusingonchangingorg structure,increasingsalespresenceanddrivingcost efficiency in its plants. The result is increased presence intheNorthIndianmarket,reducedworkforceandup to33percentsavingsinoverheadcost.Thesemoves havealsoinstilledinvestorconfidencedespitebleak financials of the company sending the stock prices to its 52weekhigh.Withtheeconomypickingup,Ashok Leyland will definitely have an impact on the industry TheconfidenceinstilledininvestorsisduetoAshok Leylands ability to be nimble footed and transform into a more efficient company Honda to double auto exports from India 3 June, Tapukara TheJapaneseautomobilecoviestodoubleits componentaswellascarexportsfromIndiatodouble inthisfinancialyear.Depreciatingrupeeandexcess capacitycoupledwithtechnicallysoundlaborgives IndiaanadvantageoverLatAm&Africa.Prioritizing deliveriesofcarsinIndia,thecompanyplanstoutilize excesscapacityitwillhaveforexports.Theauto componentsdivisionalreadyexportsmakingHonda IndiaoneofthekeyplayersintheHondafamily.A3rd plant is rumored to come up in Gujarat Honda plans to maximize its plant utilization by not only serving India but also the global market through cheap and reliable products Special Focus Spot potential, Acquire it and Enjoy! 11 successful acquisitions in 12 years is a feather in VC Sehgalscap.ThechairmanandCMDofMotherson Grouphasakeeneyeforspottingbusinesswhichcan addsignificantvaluetohisbusiness.Acquisitionof Visiocorp, Peguform and now Stoneridge has given the grouptechnologyandmostimportantlytheentryinto markets difficult to crack.With the markets have come the customers which would not have given the business easilyandquickly.Essentially,eachacquisitionhas advancedthegroupsmarketentrybytwotothree years and significant contribution to the financials. The acquisitionstrategyhashelpedMothersongrow12 times over 5 years and become a $5bn group, one year beforetheirinternaltarget.Thecompanysacquisition isdrivenbythestrategyofnocountry,nocommodity and no customer should account for more than 15% of turnover Industry Talk More Measures needed to revive sector: Industry TheextensionofexcisedutycuttillDecemberhas broughtcheertotheindustrylongreelingundera slowdown.Thoughthismoveaffirmsthatthe governmentisconcernedwiththeissues,theindustry experts have urged the government to take a long term view.IssueslikeGST,standardizedfuelavailability acrossthecountryaswellasskilledlaboravailability have plagued the value streams of the sector and need clearpolicydecisionsfromthegovernment.Two wheelers,tractorsfaceasluggishuptakescenariodue totheweakmonsoonstart.Commercialvehiclesare awaitingimprovementinmacroeconomicscenario. Passengervehiclesareofferingheavydiscountsto realizesales.Theextensionofthedutycutwasmuch neededatthetimeandthegovernmenthasnot disappointed the industry and the markets. Strategist Voice Localized car needed to succeed hereSuzuki did it, Toyota did it, Honda did it and now Ford isinthefraytodesignIndiacentricproducttowin maximummarketshare.NotonlydidtheIndiacentric brandhelpthesecompaniesinwinningIndian customersbutalsogavevitalinputstotheirglobal operations which took these products and sold all over theglobe.TheIndianoperationsbecameexporthubs helpingthecompaniesutilizethecapacitywhichwas dormantforyears.Productextensionfromhatchback to sedan to MPV to UV has helped the companies keep costlowandchurnproductssuitingIndiantastes quickly.LetshopeFordcanalsopullthetrickand deliver its much needed boost. June 2014AVIATION, SHIPPING & LOGISTICSNITIN DANGWAL Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON |2 Huge Losses In Aviation Sector New Delhi The civil aviation sector is on the vergeof collapse with accumulatedlossesofRs49,000croreandneedsan urgentboosttopreventmoreKingfisher-type meltdownsandjoblosses.AirIndiacontributesa staggeringRs30,000croretotheaccumulatedRs 49,000crorelossesinthecivilaviationsectorandthe ministry outlined the need for a credible, result-oriented capital infusion plan Thegovernmentneedstodealwiththeelephantinthe roomAirIndiaotherwisethecurrentscenariocan spark off more Kingfishers like fiascos. AirAsia take-off sparks fierce sky contest New Delhi AirAsia India announced its launch with an Airbus A320 aircraft takingoff from Bangaloreon June 12 to land in Goa. The launch comes ata timethepeakseasonwas to end in days. This announcement was a big surprise as Industry Pundits expected AirAsia to wait for the current leanperiodtoend.Theleanperiodcombinedwiththe intense price wars could mean the risk of compounding losses. The coming of AirAsia with its unconventional strategies isgoingtoputmorepressureonthealreadyailing industry Flash Sales spurs flight booking New Delhi The flash season sale has boosted the flight bookings by 3-5times.AirlinesinIndiahavebeenfallingovereach othertoofferdiscountsinairfareinviewofthe increasingcompetitionandaslowingdownofthe economy.Thishasledtoapricewar,benefittingthe passengersthemost.Often,withinhoursofaflash discountbeingannouncedbyoneairline,itsrivalstoo join the bandwagon, resulting in a surge in bookings The customer is the real winner in this price war. But the airlines need to devise other strategies to create differentiation in the market.

New Rail Fares good news for airlines New Delhi TheriseintherailfareatatimewhenBudgetcarriers are offering discounted tickets every other day has now madeflyingcheaper.Withaggressivefarewarriorslike AirAsiaenteringthemarketandSpiceJetcomingwitha newdiscounteveryfewdays,thefightforthetraveler has just entered a new phase Thesituationpresentsanopportunityforairlinesto increase its customer base. Special Focus Intense Rivalry in Air AnalystssaidAirAsiasentrycouldtriggerafresh roundofpricewarsatatimesomeleadingplayers have reported huge losses. AirAsia India, the domestic arm of the Malaysian no-frills airline AirAsia headed by TonyFernandes, will become the fourth budget carrier inthecountryafterIndiGo,SpiceJetandGoAir.On May 30, AirAsia India had announced the availability of 15,000 tickets at a base fare of Rs 5, excluding airport taxes and other fees. Tickets under this offer were sold outbyJune1.TocounterAirAsiasaggressivepricing, other airlines have also come out with matching fares. Industry Talk Revamp of Aviation Industry high on Modis Government Agenda The downgrading of safety ranking of Indian airlines by USFederationAviationauthority&comingofnew government has resulted into positive looking steps for AviationIndustry.Astringofstepslikereductionin stateleviedontaxes,openaccesstoaviationturbine fuels are some of steps that can be much needed shot inthearmforthisindustry.TheAirIndiasentryinto thestar allianceis amajorstepin thesamedirection. This step is expected to boost Air Indias earnings by 2-3%Strategist Voice AirIndiaLtdhasjoinedtheStarAlliancegroupof carriers.MembershipallowsAirIndiatoshareroutes with the other airlines to more than 1,200 destinations.Themembershipisexpectedtoresultinseveral benefitsfortheairlineanditspassengers.The membership would mean that its passengers travelling to the US would have easier access to many more cities there. But these advantages would be beneficial only if AirIndiaclampsdownonitsbabuculturethathas beenservingclassesthanmasses. Influentialpeople andtheirkinhaveenjoyedforyearsbybuyingthe cheapesteconomyticketsbutgetting'bumped'upto businessorfirstclass.WithAirIndiacontributingto 60%oflosses,thiswasthemuchneededstep.The largercustomerbase,morerefuelingpointsand learningfromthebluebloodairlinespresentsanever likebeforeopportunityforAirIndia.Whatremainsto bethesamethathowmuchAirIndiaiswillingto capitulate on this opportunity.June 2014BFSI ADITI RATHI Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON |3 RBI keeps key rates unchanged New Delhi RBI kept the repo rate unchanged to 9% and keeping in mind the need to increase the availability of credit, decreased the statuary liquidity ratio by 50 basis points to 22.5%. TheRBIagaindidntgoforaratecut.Withinadequate monsoons there is quite a possibility of spike in inflation inthecomingfuture.Itishopedthatoncethesupply sideconstraintsareironedout,theinflationtrajectory will be more responsive to monetary policy changes. Banks' asset quality better but systemic risks up New Delhi The banking stability indicator reflects a high risk in the sector compared to last year. Marginal increase in the asset quality partially owing to the sale of NPAs is offset by the concerns of liquidity and profitability. Stress tests indicate higher vulnerability for public sector banks as compared to their private sector counterparts," the RBI said in its ninth Financial Stability Report.

TheconcernoverNPAstillloomsmanyofthebanks. Many banks have started to sell their bad loans to asset restructuring firms because of the increased pressure to reducetherisingNPAs.Thisinvolvestakingvoluntary haircutsbythebankswhichagainraisesaquestion marks on the loans issued by public sector banks as this is more related to them. Indian black money parked outside New Delhi FinMin India has made a fresh request to Switzerland seeking bank details and names of Indians having unaccounted money in Swiss banks, as the government expands its efforts to combat the menace of black money. The request letter has cited the existing bilateral treaties and global protocols applicable to the two countries for getting information about bank and other details of Indians holding untaxed funds or hidden wealth. Theefforttobringbackthemoneystashedawayin Switzerlandisnowbeingpursuedaggressivelyand positive outcomes are expected as even the Swiss banks havestartedtorespond.Thiswillbringbacktheblack moneyandaddtothetaxrevenuesofthegovernment but however still lot of work remains to be completed Special Focus The rise of QIPs Post formation of the Modi Government, two financial services firm and two mobile telephony companies have raised Rs. 11142 crores in the past 30 days. This is more than what has been raised in the past two fiscal years. Investor confidence has increased thanks to the stable government. Expectations are that another $5 bn will be raised through this route and when combined with IPOs, sale of stakes in public companies total funds raised could be another $10 bn to $12 bn. These are indications of a buoyant capital market and this has enabled companies to time their fund raising to almost perfection. QIPs help them raise money faster and also does not impact the share price to that extent when compared to share purchases in heavy volumes from the market. Industry Talk Top 5 reforms expected from FinMin The focus of the new government should be more on creating opportunities for retail investors in financial markets. The disposable incomes of the middle class working population need a boost to combat inflation and to create savings. 1. Reduce STT (Securities Transaction Tax) 2. Measures to increase FDI 3. Reduce CTT (Commodities Transaction Tax) 4. Meaures to reduce Fiscal Deficit and 5. IPO limit for retail investors

Strategist Voice The much desired political stability has made its way to the centre in the form of Narendra Modi and his team. Small cabinet, streamlined processes, centralized control, Modi government is expected to answer all the hopes of India. Riding on huge expectations from the incoming Modi government, global investors are gung-ho on the Indian economy, which is expected to witness over 100% increase in foreign investment inflows both FDI and FIIs to above $60 billion in the current financial year, as against $29 billion during 2013-14, the Assocham study projected. The results hopefully would hit the road by next year and we could all apraise the "ache din". June2014CONSUMER GOODS & RETAIL SHREYAS DESAI Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON |4 Nestle to rejuvenate Nescafe brand 20 June, New Delhi NestleIndia,thecountrysbiggestfoodscompanyis comingoutwithfreshnewpackagingand communicationtitledItallstartswithaNescafeto strengthenthebrandsleadershippositionintheRs. 800crorepackagedcoffeemarket.Thischangeis alignedtotheglobalobjectiveofthebrandtomakeit more contemporary. The move could be an attempt to impart stimulus in the lowinnovationcategorywiththerisingincidenceofthe cafculturethreateningtoincreaseoutside consumption at the expense of home consumption. Nivea to setup 1000 cr. plant in Gujarat 24 June, New Delhi German personal care giant Beiersdorfs brand Nivea will soon setup its first manufacturing facility in the country inSanand inGujaratbyinvestingRs.1000crore.Itwill also house Niveas first R&D centre in the SAARC region. TheideaistocatertothegrowingIndianmarketby having better local responsiveness. HavingtheirownfacilitywithR&Dwillenablethemto focusonIndianconsumertrendswhilealsoreducing their dependence on imports by around 50%. They would evenbeabletopassthesesavingstoconsumersby making their products more affordable. FDI in e-commerce to be allowed soon? 4 June, New Delhi There are strong rumours of the Govt. plans to allow FDI ine-commerceinandaroundthebudget,whichcould beoneofthefirstbusinessreformsundertakenbythe ModiGovernment.Themovecouldbeahugeonewith expectations that this renewed online retail sector would spurmanufacturingandconsumptionandrevivea slowingIndianeconomy.Thismoveisdefinitelygoing toincreasecompetitioninthisboomingsector, expected to contribute to 4% to the economy by 2020. Expectedly,biggieslikeAmazonandmightbelicking theirlipswaitingforthischangebutitwouldbe interestingtoseehowthe Modigovernmentdecidesthe investmentguidelinesforthissuchasstate-wide implementation, foreign ownership cap, sourcing etc. Special Focus Companies taking on e-tailers head onConsumerelectronicsanddurablescompaniessuchas Samsung,LGIndiaamongothersareplanningtheirown versions of online stores to take on e-tailers. Panasonic is lookingupresellerstolaunchitse-storenextmonth whileSonywilllinkitsexclusivebrandstoresundera common platform. Such radical moves are being taken to counterthepricingmethodsofe-commercesites,which hashit thesalesoftraditionalbrick-and-mortar retailers. Currently,thesecompaniesareoperatingtheirstores through dealers and distributors since Indian rules do not permitthemtooperatethroughe-commercedirectlyto selltoconsumers.Operatingthroughthiscurrently unorganized channel is essential to regulate pricing. Industry Talk Excise cut extension to help durables The excise duty reduction from 12% to 10%, implemented by the previous UPA government to stimulate growth has beenextendedbythecurrentgovernment,providing relieftoConsumerDurablescompanies.Thenewswas welcomed by thedurables industryasitgives them time to revive after a two year stagnation period followed by a growth period of six months. Industry members had been pushing for this extension for a long time. Strategist Voice Amazon India: On a Growing Rampage AmazonSellerServicesPvt.Ltd.enteredIndiainJune 2013withamarketplacemodel(duetoFDIregulations) withaportfolioofbooks and videocontent.Now,ayear later,itoffers15millionproductsacross28categories. Thenumberofsellersonitssitehasincreasedfroma 100ayearagotoabout6500.Comparethatwith Snapdeal(30,000sellers)andFlipkart(3000sellers)and you know that Amazon means business in India. Amazon planstoinvestasmuchasRs.1500croreinitsIndia operations, raising it from Rs. 200 crore it spent in 2012-13. These moves have forced local e-commerce giants to raisemorecapital(Snapdeal)orgoforacquisitions (Flipkart).Amazonhasalsoincreasedthediscountsand goneona talentseeking spree,promptingother etailers toofferfatterpaypackages.Onlineretailisexpectedto growto$22biillionfrom$3.1billionin5yearsand Amazon definitely wants a bigger share of that pie. June 2014HRSUVIRA YADAV Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON |5 Axis bank launches Re-connect New Delhi With the aim to reach to Axis women alumni who have left the system in the past 10 years, the bank has launched Re- connect. Through its existing employees referral the program has been launched as a pilot in Maharashtra, Goa, Madhya Pradesh, Gujarat, Chattisgarh for now which will then be taken to the country level. A website where its women alumni can register themselves to go through an interview and other procedures is still in pipeline. Returningcareerwomenareempiricallyproventobe moreloyal,alsosavinghiringtimeandcostfor companies. TCS low employee cost secret revealed 19 June, Mumbai The credits for Tata Consultancy Service(TCS) average cost per employee for fiscal 2014 at about Rs 14 lakh, compared to about Rs 18 lakh of the competitiors has been attributed to its higher proportion of freshers vs lateral hires. TCSs employee costs as a percentage of revenue are at least 5-10 percent points below the rest of the industry. Hiring more freshers gives the flexibility to use them in transactional activites with lower value, freeing up the more experienced employees for higher value work. Freshersareeasiertotraininnewskillsrequiredfor digitalservices,amultibillionopportunityforTCSover the next few years . Videocon Telecom to give staff up to 38% hike 23 June, New Delhi VideoconTelecom-oneofthesmallestmobileservice providersinIndiabynumberofsubscribers,has decidedtogiveupto38%increment,including bonuses,inthe2014-15financialyear.Employeeswill getanaverage11%ofthepayhikeasafixed componentintheirmonthlysalaries,whiletherestwill come in the form of bonus towards early 2015. It can be seen as a strategy ahead of an expansion drive thecompanyplanstolaunchandtoretainstaffasthe industry is set to see a battle for talent with an expected economy turnaround. Special Focus Why it pays to allow watching live coverage at work May itbe theIndiangeneralelectioncountingday,IPL finaleortheFIFAWorldCup,surprisinglyHRtodayis foundtobeonemployeessidearrangingforspecial screeningorextendedcoffeebreaks.Therational behindiseventslikethesegiveemployeesaready-madetopicofconversationwheninteractingwith internationalpartners.Alsowhenpeoplecelebrate together,theycreatepositivevibethatsvaluablein termsofproductivity.Onthecontrary,banningthe employeesfromwatchingthesewontstopthembut lotsofsurreptitiousstreamingcouldslowthe companysinternetaccesstoacrawl.Furthersome workersmaycallsickandnotturnup,hampering productivityaltogether. . Industry Talk Employee experience as HRs competitive differentiator With many essential positions left unfilled due to skill gap,it is getting imperative for HR professionals to develop strategies to retain their top talent. To add to the trouble remains the referral network, open 24/7 courtesy of social media. The solution lies in building great employee experiences. This in addition to thetransformation in organization culture requires IT tools that reflect the dynamic business practices and deliver workforce insight. The HR executives need to constantly pay enough attention to the customer within. Effective leadership today must engage a talent ecosystem of value creation and delivery capability comprising of full-time employees, part-timers, alumni networks, contractors, outsourcers, partners, etc.

Strategist Voice Are grumpy workers the more productive ones? Thebadtemperedorsulkyworkerswhotendtobe grumpyatalltimescanactuallybethemoreproductive ones as they indulge themselves on lesser tasks compared tothepositiveattitudefolks.Employeeswithhighjob dissatisfactionexhibitthehighestcreativityasthey tryto find a solution to the cause. On the contrary, the happy or satisfied employeessatisfiedwiththeirworkenvironment rarelytrytofindnewideastosolveproblems.The organisations on their part should encourage such grumpy workerstoprovidefeedback,provideaculturethatwill supportinnovationandprovidetheclimatewherepeople try to make a change for the better. June 2014IT, TELECOM & MEDIAOMKAR TUNGARE, AKHIL AGARWAL Email: strategist@mdi.ac.in STRATEGISTMDI GURGAON |6 Videocon ties up with Huawei for 4G rollout 5 June, New Delhi VideoconTelecomhastiedupwithChineseequipment firm Huawei Technologies forrollingout 4G network in sixoutofits7serviceareas.VideoconTelecomis rollingoutLTE-readyPacketCorenetwork from Huawei in 6 telecom circles in India. This network will provide a largerdatacoverageandreducetheoverallcapexand opexleadingtoanimprovedprofitabilityandlower coststoendusers,VideoconTelecomsDirectorand CEO Arvind Bali said in a statement. Both companies had earlierrunintodisputeoverpaymentswhenVideocon Telecom lost its 21 licenses along with 101 others after the Supreme Court judgment in February 2012.Now, the issue has been resolved amicably. Thestrategic alliancewill helpincreasethecompetition in 4G space, where Reliance Jio is expected to enter with abigbangwithitsUASfor4Ganditsplansoflow priced handsets. Tech Mahindra bets on Financial Services 21 June, Bangalore TechMahindra(TechM),thecountrysfifth-largest information technology (IT) services company, has put in place an aggressive strategy to win its earlier position in thebanking,financialservicesandinsurance(BFSI) segment.ThePune-basedTechMsaiditexpectedina coupleofyearstopositionselfasaleadingvendorin the BFSI space and to increase its share of total revenue from 10 to 20-30 per cent.ThisstrategyhasallowedTechMtoreducethe overexposureintelecomspacewhichisgrowingat slower pace. The strategy seems to be paying as it won back 10 large BFSI clients serviced by Satyam before the accounting fraud came to light. Vishal Sikka appointed as the new CEO and MD of Infosys 12 June, New Delhi Stanford-educatedVishalSikkahasbeenappointedas thenewCEOandMDofInfosys.HewillsucceedSD Shibulalandtakereinsofthe companyfromAugust1. Earlier,hewasaboardmemberinGermantechnology giant SAP.During his stint in SAP,hedeveloped HANA, middleware,mobileandanalyticsproducts.The transitionwillalsoseeNarayanMurthysteppingdown as the Executive Chairman. VishalSikkaisthefirstnon-foundertobegiventhis responsibility.Hewillbeabletobringinfresh perspective and reduce thee uncertainty in the company which has been lagging behind its peers recently. Special Focus IT,ITeSsectorsexpecttaxreliefin Budget 2014 TheITandITeSsectorsexpectareductioninminimum alternate tax (MAT) and dividend distribution tax (DDT) in the upcoming Union Budget. "Inordertoboostoverseasshipmentsanddomestic manufacturing from special economic zones (SEZs), the IT and ITeS sectors expect a reduction in minimum alternate taxanddividenddistributiontax(DDT)applicableon suchzones,"Dun&BradstreetIndia'sSeniorEconomist Arun Singh said. Thismovewouldhelprevivethesubdueddemandand promote manufacturing in the country, Singh added. Industry Talk Trends in Media and Entertainment industry The Indian media and entertainment industry, consisting oftelevision,print,film,radioandmusicsegmentshas shown a robust growth in recent years and is expected to show12-13%CAGRtill2018accordingtoCRISIL estimates.Alongwiththeeasingmacro-economic scenario, growth will be driven by increase in advertising and subscription revenues, and the rise of digital media. The general elections helped the industry generate huge advertising revenues and the coming assembly elections in some stateswill help continue this trend. In the print segment,non-Englishnewspaperswillcontinueto outperformEnglishnewspapersduetoincreasein demandforlocalcontent.Televisionsubscription revenueshavealreadystartedtoshowanupwardtrend asDigitalAddressableSystem(DAS)phaseIandIIare nearing completion. Strategist Voice Indian IT companies evolving TheIndianITlandscapeisfastevolving.TheIndianIT firmsarefacingincreasedcompetitionfromforeign basedcompanieslikeIBM,Capgemini,Cognizantand Accenture.Thestabilizationoftherupeeat60per dollarfromitshigherlevelswillalsocausereductionin margins.Tofacethesechallenges,IndianITfirmsare exploringnewmarketsincontinentalEurope,Latin America,Asia-PacificandMiddleEast;focusingon verticalslikeretail,healthcare,energyandutilities; pursuingnon-lineargrowthmodels;adoptingnew technologieslikeSMAC(Social,Mobility,Analytics, Cloud);andfocusingonITconsulting,system integration,infrastructuremanagementservicesand intellectual property based products. June 2014Metals, Mining & CommoditiesAkshay Bhandari Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON |1 Coal India to enter fertilizer, chemical production CoalIndia hasdecidedtoamendtheobjectclauseofits memorandum of association (MoA) for foraying into the business of producingfertilisersandchemicalsusingcoalgas.CIL said Rashtriya Chemicals and Fertilizers Ltd (RCF) had signed a Memorandum of Understanding (MoU) with Gas Authority of India Ltd(GAIL)forjointlyexploringthepotentialuseofgasproduced fromsurfacecoalgasprojectinthefertiliserindustry.The Ministry of Coal has prepared its agenda for presentation to the PrimeMinister.Amongtheprioritylistincludeproduction enhancement,speedyapprovalsandrestructuringofCoalIndia. Coal India has set the target of 507 million tonnes of coal this fiscal, whilethetargetfornextyearissetaround574milliontonnes.In order to attract private investment, the coal ministry is also looking at working on legal framework for commercial mining. Government to thrash out low grade coal issueThegovernmentonWednesdayallegedthatthequalityofcoal supplied by Coal India is of low grade even after the introduction of thethirdpartysamplingmechanism,accordingtoamediareport. Coal and power minister Piyush Goyal met top officials ofboth the ministriestothrashouttheissuesrelatedtocoalpricingandthe qualityofthefuel.TheMinistryofPowerobservedmultiplegrade slippagessuch asstones and boulders beingdispatchedin the coal beingsuppliedbyCILto NTPC powerplant,thereportadded.The slippages are being observed in the coal supplied by CIL subsidiaries likeCentralCoalfieldsLtd(CCL), BharatCokingCoalLtd(BCCL)and MahanadiCoalfields(MCL)toNTPCpowerplants,includingDadri and Badarpur, the report further said. Winds of Change: Aluminium prices see resurgence 18 June, New Delhi Aluminumpriceshavewitnessedsomeresurgencethisyear afteralistlessperformanceduring2013,whenpriceson severaloccasionsmovedbelowthekeycostlevelof US$1,800/ton.Surgingphysicalpremiumshavereignited some kind of bullish interest in otherwise a beleaguered metal. Hugequantumofmetaltiedinthefinancingdealsand consequentlongqueuesatLMEmajorwarehousesis attributedbehindtheamazingriseinspotpremiums. Meanwhile,lowerspotpriceshavemadethebusiness economicallyunviableformajorityofaluminiumproduction facilitiesacross theglobe.Effectively,thefundamentalprofile forthismetalischangingoflate,wherebystructurally oversuppliedmarketisgraduallyexpectedtoshifttowardsa balanced supply/demand equation in the coming years. Special Focus Steel companies plans to raise iron ore imports Duetoamassivedeclineintheavailabilityofironorein FY14, TataSteel issaidtohaveimportedaround30,000 tonnes on a trial basis from Australia this year, says a media report. JSW Steel planstoimport500,000tonnesbytheend of this month and increase this if spot prices decrease further thisyear,thereportadded.Atpresent,JSWisoperatingat 85%ofitscapacityatallitssteelplants.Withtheimported ore, it aims to enhance its capacity further. The spot prices of ironorefineshavebeendroppinginrecentmonths,with currentpricesat$90-95atonnefromabout$120inMarch. Iron ore lumps are priced $7-8 a tonne higher than the finesIndustry Talk Government seeks bid for Hindustan zinc valuation assessment Thegovernmenthasdecidedtoundertakefreshvaluationand assessmentofthefairsharevalueofAnilAgarwal-controlled HindustanZincLtd.Thedepartmentofdisinvestmentplaced advertisementsinnewspaperspublishedonFridayseeking proposals from merchant bankers for handling the valuation. The government, which holds 29.5% stake in Hindustan Zinc, decided in January to sell it in an open market auction. But the proposed sale became controversial for two reasons. One, the government draggeditsfeetoverthesaleofitsresidualstakeinHindustan ZinctoAgarwalsVedantaResourcesPlc.Two,theshare valuationcameunderacloudfollowingallegationsthatthe governmentsvaluerignoredsomeofthecompanysmines. Strategist Voice Government plans to auction 25 coal blocks

The blocks proposed to be auctioned are the spread in the states of Jharkhand, Chhattisgarh, Gujarat, Maharashtra and Andhra Pradesh. The ministry of coal plans to auction around 25 coal blocks. These blocks were taken back from private companies as there were delays in developing them, according to a media report. The blocks which were taken back mostly comprise small mines and includes a few major ones.The blocks proposed to be auctioned are the spread in the states of Jharkhand, Chhattisgarh, Gujarat, Maharashtra and Andhra Pradesh.However, no details have been provided about the time period when these blocks will be auctioned June 2014OIL & GAS ANKUR SAPRA & BHAUMIK SHAH Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON |8 Govt.mullspricinggasinrupees insteadofdollars,movelikelytoshut out exchange rate volatility27 June, 2014, New Delhi The government is weighing the option of switching to a mechanism of fixed return on investment for producers andsettingdomesticgaspricesinrupeesinsteadof dollarstoshutoutexchangeratevolatility.The arguments for rupee pricing and moving to fixed return on investment known as cost-plus formula seek to guardagainstgivingunduebenefittoproducersatthe costofconsumers.Ifthisisfinallyaccepted,the government is likely to use the cost of production from variousfieldsofitsowncompaniestoarriveata benchmark. There were also political considerations that weighed on the decision to defer a price revision. With Delhi and Maharashtra pollsin October, it is quite possiblethatgovernmentmighttakesometoughpolicy decisions. Pricing Gas in Rupees may seem to completely eliminatetheriskofGasPricevolatilitybutultimately thestandardpricingisindollarsandmoveawayfrom there is not likely to sustain. Iraqcrisisnottoaffectoilsupplyto India: Rao Inderjit Singh25 June, 2014, New Delhi The Centre today said the situation in Iraq was a matter ofconcernandhopedthattheturmoilintheGulf country will not affect the oil supplies to India. "The new issueofconcernisIraq.Ouroilpipelinecomesfrom SouthernIraq.Sofartheterroristshavenottargeted thispipelinebutthegovernmentiskeepingaclose watchontheissue,"MinisterofStateforDefenceRao InderjitSinghtoldreportershere.Headded"Weare hopefulthatthesituationinIraqimprovesandouroil supplies are not affected"Indiaisheavilydependentonitsoilimportsandany changesinoilsupplywouldheavilyleadtopricerise whichisamatterofconcernasitwouldresultin increased subsidies and fiscal deficit. GAILscheaperpriceincomparisonto Qatar may impact pricing formula9 June, 2014, Mumbai GAILsoffertosupplygasfromUSAataratewhichis atleastadollarlessthantheratefromQataronlong termcontractsmayhaveahugeimpactonthepricing formulaforNaturalgas.Gail'sgasdealislinkedto Henry Hub, the US benchmark, where prices have fallen to$4.7perunitduetoshalegasboom.Afteradding shipping and other charges, Gail expects to offer a price of$12-13perunit.However,sinceIndiadoesnot have aFTAwithUS,specialwaiversarebeingaskedfor presently Presentlythelowerrateis onlyforlongtermcontracts andgiventhevolatilityinpricesesp.tillthetimenew prices are implemented, GAIL may not be able to supply gas at a lower price. Special Focus Governmentplanstoeaseforeign investment in oil & gas sector Threeyearsofpolicyparalysisandregulatorypolicy uncertaintyoverissuessuchasnaturalgaspricinghadled tocompaniesdeferringtheirinvestments,resultingin domestic production stagnating. Narendra Modi government intendstobringinpolicieswhichwouldeasethewayfor large foreign investments in the oil and gas sector. Ministry isintheprocessofusheringinanewexplorationand productionpolicyafteramendingtheexistingNew ExplorationLicensingPolicy(NELP).Theministryproposes toreplaceNELPwithauniformlicensingpolicytofacilitate productionofallformsofhydrocarbons-fromoiltoshale gas - under a single policy regime. The next round of oil and gasblockauctionswillbeofferedwithallstatutory clearancesthatwillde-riskexplorationactivitiestosome extent.Indiaisatacriticalstageofdevelopmentandthe new government led by Narendra Modi is planning to give it the much-needed impetus for further growth. Industry TalkKuwait, Abu Dhabi may store 2 million tonne crude oil in Indian caverns Kuwait Petroleum Corporation (KPC) and Abu Dhabi National OilCompany(ADNOC)haveconfirmedthattheyarewilling tofillcrudeintwocompartmentsofcavernsat VisakhapatnamandMangalore.Thiscanbeawin-win situation for both the parties as India may be able to use the crudeincaseofemergenciesandatthesametimeit providesanexcellentstoringlocationforKPCand ADNOC. ThiswillgivethemanedgeintappingthehugeAsian Marketovertheirclosecompetitors.Commissioningof Vishakhapatnamfacilityisexpectedtobecompletedby September this year. Strategist Voice Diesel Deregulation UPAgovernmentpartiallyderegulateddieselpriceswith monthly hike of 50 paise per litre. Current under recoveries perliterofdieselarearoundRs1.5andsohypothetically, India'slargestsellingfuelwouldautomaticallystand deregulatedinthreemonthsassumingtheglobalproduct price and rupee exchange rates remain at the current levels. Thereisanopportunityforgovernmenttoannounce deregulationofdieselinunionbudget.Fullderegulation wouldpavethewayforprivateretailerstorevivetheir outlets.Thiswouldimmediatelycreatejobsasprivate companiessuchasRelianceandEssarwouldgetalevel playingfieldforsellingdieselthroughtheiroutletswhich they had to shut down because they could not compete with state retailers selling fuels cheaper due to subsidies. June 2014PHARMACEUTICALS AND HEALTHCARENIHARIKA CHAUBE Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON | 9 Governmentpolicymakesexitfrom essential drugs market difficult24 June, New Delhi TheNationalPharmaceuticalPricingAuthorityhas been restricting companies with more than 1 percent marketshareintheessentialdrugsmarkettoexit. Thishasbeendonetoavoidanexodusofmany playersandpotentialshortagesintheessentials market.TheNPPAhasinternallyseta1% mark beyondwhichitrefusestograntpermissionfor companiestoexitunlessitisassuredthatthere wouldbenoshortageofthedruginthemarket. Manufacturers are also required to report the levels of essentialdrugsandbulkdrugstheyareproducing, quarterly, toenable the government to monitor their availability in the market. Themovepreventsdisruptionintheavailabilityof essentialdrugsinthemarket,butplacescostand operationalpressureoncompaniesbyforcingthem to produce commercially non-viable drugs PolicytweaksinUSshiftIndian pharma's focus 17 June, New Delhi TherecentchangesintheUSlawongenericdrugs, reflected in the functioning of the USFDA, are likely to impact Indian pharma firms, which earn up to 60 per centoftheirconsolidatedrevenuesthroughexports toUS.Theearlierfirst-to-file(FTF)system,awarded patentstocompaniesthatarefirsttofilefor protectionofanewproductratherthantothe companythatfirstinventsaproduct.AnFTFstatus alsoallowsthecompanytoenjoytherightto180 days of exclusive sale in the US. However, now, with the Generic Drug User Fee Act in place, USFDA has been granting 180 days of exclusive marketingrightstomorethanonecompany.In effect,thisdilutestheadvantageofFTFwhile allowing increased competition. CompaniessuchasDr.Reddys,SunPharma,and Ranbaxy,forwhomtheFTFstatushasbeenamajor growthdriverarenowlookingforothergrowthroutes and strategies and new therapeutic segments MeijiSeikaPharmaofJapanto acquire Medreich Ltd., India 14 June, Mumbai JapanbasedMeijiSeikaPharmaissettoacquire MedreichLimited,inthefirst100percenttakeover byaJapanesecompanyofanIndianpharma enterprise.Thedealvalueisapproximately US$375mn.Medreichisgloballyengagedinthe contractmanufacturinganddevelopmentactivities, andmanufacturingandsaleofgenericdrugs focusing on Europe, Asia, Australia and New Zealand, and Africa. TheacquisitionwouldenableMeijitoobtaincost-competitivemanufacturinginfrastructureandbroaden its sales network of generic drugs in Asia and Africa Speci alFocus Indian pharma firms concerned over lower rates of clinical trial approvals PharmaceuticalcompaniesinIndiaareexpressing concernoverthelowerrateofclinicaltrialapprovalsin thecountry,whichnotonlyhindersnewdrugdiscovery initiatives but causes loss of huge business opportunities toothercountrieslikeMalaysia,Indonesiaand Philippines in the clinical trial segment.According to the Indian pharmaceutical alliance (IPA), there have been only about25clinical trialsapproved in India in the lastone year.While India has huge low costs facilities coupled with state-of-the-arttechnologyandincreasingR&Dinvestmentby pharmaceuticalcompanies,challengessuchasunethical trials and lack of exclusive data factor towards the new drug discovery sector lagging behind Industry Tal kNew drug prices in India to be capped by NPPA Inordertokeepacheckonescalatingprices,India's drug price regulator has decided to fix a ceiling price on newdrugsaimedattreatingHIV,cancer,diabetes, cardiovasculardiseases,tuberculosisandmalaria.Askingstategovernmentstoactivelyparticipateinthe move,theregulatorhasrequestedstatestoidentify someofthemostexpensive,commonlyuseddrugsfor diseases prevalent in their regions. Last year in May, the Drug Price Control Order had brought 652 packs of 348 formulations under its purview. However, the regulator could cap the prices of only 546 medicines, due to limited market data.The NPPA has asked drugmakers to furnish details related to cost and annual turnover of 106 essential medicines, failing which it has said, it could initiate prosecution against drug companies. Strategist Voi ce Indian pharma industry adapting to US norms Both Indian authorities and drug companies are devising strategiestocontinuetobenefitfromtheUSgenerics exportmarket.InwakeofseveralFDAregulatory crackdowns, the governmentplans to spend close to Rs 3,000croreinordertodoubletonumberofdrug regulators to 1,000 in the coming three years and set up testinglabsatports.Theseeffortsareexpectedto ensurethatdrugexportshipmentsmeettheglobal quality standards. Atthesametime,non-exclusiveFTFguidelinesaredriving drugfirmstolookatnicheproductswithhugeentry barrierslikecomplexgenerics,resultinginincreasingR&D spends. June 2014 POWER AND CAPITAL GOODS PRATIK PANWALA & GAURAV PRAKASHEmail: strategist@mdi.ac.in STRATEGIST MDI GURGAON | 10Alstom Board Approves GEs $17bnoffer21 June, Paris, FranceAlstomapprovedGEs17bnrevisedofferforitspowerandgridbusiness.Thisisanallcashtransaction,andvaluedat7.9xEBITDAofAlstomsthermal,renewablesandgridbusinesses.GEwillsellitsrailroadsignalbusinesstoAlstomfor$825m.GEandAlstomwillsetup a 50:50 JV for three businesses: Grid (combined GridassetsofGEandAlstom),Renewables(AlstomsOff-shore Wind and Hydro Business) and Global Nuclear andFrench Steam (production and servicing). GE expects thedealwillbeaccretiveina yearandtargetssynergiesof$1.2bn by year 5.InterventionbyFrenchGovernment,andrivalbidsbySiemensandMHImadeGEreviseitsofferandwinthedeal.Frenchlawallowsthegovernmenttoblockacquisitionsofcompanies,whichareofnationalimportance.Rajasthan amends wind policy toattract investments18 June, JaipurRajasthangovernmentamendedtheWindEnergyAct2012 to attract more investors. The government expectsinvestmentsoverRs.2,500crorefor400MWofwindpower.Governmenthasdecidedtoincreaserenewablepurchaseobligationsto6.8%.Theprocessforlandallocation and other formalities will be simplified.It will attract more investors in wind power and will boost therenewable energy. The decision to increase RPO will partiallycompensate for the uncertain wind velocities.World Bank: Improve discom heath25 June, New DelhiWorldBanksstudyofIndianpowersectorhastermedthe distribution utilities asthe weakest link. In order tomakethesectormoreattractive forinvestors,thediscomsneedtobemoreaccountableandfreefromexternalinterference.In2011,theaccumulatedlossesof distribution utilities were Rs. 1.14 lakh crore and arerising.Supplyofbelow- costpowertoagriculturalandruralcustomershavealsoweakenedthefinancesofthesecompanies.In2011,theshareofagricultureincountrys electricity consumption was 23%, but its sharein revenues was only 7%.BleedingofdiscomshaspenetratedintothevaluechainofIndian power sector. Poor financial health of discom also actsasabarrierformoreinvestmenttowardstheupstreamsector of generation and transmission in the value chain.Special FocusImpact of Freight rate hike on tariffRecently Railwayshikedthe freightratesfor transportofgoods. Traditionally68% of indigenous coalistransported via railways. During the current hike freightrate hasbeenincreasedby 6.5%forindigenouscoal.Howevertransportationcostofcoaldoesntformamajorcontributortowardstariff hencethishike willhave a minor impact on tariff.AsperCERC,costoftransportationisacomponentoftariffwhichcouldbeescalated.Henceanyriseinthelanded cost of coal, which will be impacting the tariff asitwillbetransferredtoconsumers.This 6.5%riseinfreightchargeshoweverwillhaveanominalimpactof1% oftariffrate,buttheadditionalincrease ofRs.26/ ton for using rapid wagon loading system will havemore severeimpactleadingtoanoverallincreaseby3.5%on tariff of coal based power plant.Policies and RegulationClearances and Approval: Majorhurdle for Power Generation and coalmine developmentArecentworldbankreportrateIndiaaslessthanfavorablefordoingbusiness.Installingacoalbasedpower plant requires 90 clearances during constructionand53duringcommissioning. 33%oftheseapprovalsare sequential hence leading domino effect. Apart fromclearancesandapprovals,developeralsoneedstosubmitcompliancesreportatregularintervalsduringvarious phases of project development. Failure of whichon failure may lead to imprisonment.Scenarioisareplicaforcoalminesector,whichisalreadyintroubleduetopoorproductivityandsupplychain.Thechallengingbusinessenvironmenthasleadto drop in Indias ranking from131stto 134thStrategist VoiceEfficient Coal Supply ChainSeries of steps were taken by power ministry recently toboost the coal supply scenario for the sector. Reducingthe e- auction coal quantity, rationalizing coal linkages,transfer of surplus coal at captive blocks to nearest CILarms,etc.are haveinitiated themassiverestructuringof coal supply.Howeveralongwithpolicychangesgovernment needstofocusontheinfrastructureneedsofthesectorandbettercoordinationamongtherelatedministriesi.e.Power,CoalandRailways.Thereareheavystockpileslying atthecoaldepotmajorlyduetolackof efficienttransport system.Thus forimprovingtheefficacyofthesector,governmentalongwiththeregulatorychangesneedstofocusonexecutionofprojectswhicharecreatingthe bottleneck for the sector.June 2014REAL ESTATE AND INFRASTRUCTURE PIYUSH AGARWAL Email: strategist@mdi.ac.in STRATEGIST MDI GURGAON |11 Metro railway to impact Mumbai realty, says Jones Lang LaSalleMumbai's first metro railway link, which will connect the northwestern suburb of Versova-Andheri with Ghatkopar on the northeastern fringe soon, is expected to be a game changer for the megapolis' realty landscape. Areas which would benefit from metro connectivity have already seen a price appreciation of 400 per cent over the past eight years, and this trend is set to continue with the metro railway link's imminent launch. Delhi Development Authority to roll out 'largest-ever' housing scheme by July end The largest-ever housing scheme of Delhi Development Authority will be rolled out for city- dwellers by July end, offering over 26,000 flats across various categories with most of them being built with "green technology" .The houses will be spread across Rohini, Narela and Dwarka and will be priced from Rs 14-15 lakh to Rs 1 crore . Indian Green Building Council targets 10 billion square feet green building area by 2022 Investors ready $1 billion war chest for office assets in India Special Focus NBCC optimistic on realty as Modi govt to set up 100 satellite towns The National Buildings Construction Corporation ( NBCC), which recently announced a net profit ofRs 257 crore for the financial year 2013- 14, is planning to expand its global footprint and has several fresh projects in the pipeline. With a new government at the helm that aims to set up 100 satellite towns, expectations of the construction industry have increased tremendously. NBCC, being a major implementing agency of the Union government, is highly optimistic about its role in fulfilling the objectives of the new government. Though NBCC operates in three infrastructure segments - PMC, EPC and real estate - the company is primarily focusing on real estate development and redevelopment works apart from its core area operation i. e. PMC. Delhi will remain the hub of the company's operation in real estate, followed by newly- emerging realty markets in Tier- II cities.. The new complexes will mainly serve as housing options for government servants and some units might be sold to PSUs, in order to generate funds, officials said. These complexes will be green and environment-friendly. Industry Talk Realtors seek cut in interest rate to boost housing demand Real estate sector is facing a huge slowdown in demand from last few years due to high borrowing cost to home buyers and developers coupled with low economic growth. To provide shelter and to move the economy the work has to be towards reduction of home loan rate.Expressing disappointment over the RBI's monetary policy, realtors body CREDAI also sought cut in interest rates on home loan to boost housing demand.On the Contrary, the status quo decision of RBI on monetary policy will bring more stability on home loan interest rates. The move could also be seen as an indication of an economic recovery.As the Union Government is about to present its first budget, it gives valid reasons to RBI to be cautious.Strategist Voice Energy-efficient buildings is the need of the time Energy-efficient buildings increase return on the realty investment. A green home has tremendous benefits,. The immediate and most tangible benefit is in the reduction of water and operating energy costs. Evidence also shows that these features of energy-efficient buildings are translating into greater value in the form of increased rental rates, higher sale prices, increased occupancy rates and lower operating expenses. But, installing these facilities also result in higher construction costs. Some features, such as the use of fly ash bricks to reduce pollution, use of high performance reflection glass, energy conservation lamps, water recycling and rainwater harvesting facilities, have to be incorporated in the project and hence increase in construction costs. Energy-efficient buildings not only help lower the utility and maintenance costs, but also translate to better value in the long term. Strategist Model of the Month Porters Diamond- Competitive Advantage for Nations MIcheal Porter theorizes that there are 4 broad attributes of a nation that shape the environment in which local firms compete and these attributes lead to competitive advantage. Factor Endowments-A nations position in factors of production, such as skilled labour and infrastructure necessary to compete in a given industry. He divided the factors into basic factors and advanced factors where in basic factors include natural resources, demographics etc and advanced factors include infrastructure, skilled labour, research facilities etc. Basic factors provide an initial advantage to the country and is subsequently reinforced and extended by investment in advanced factors. Demand Conditions-. Firms are sensitive to the needs of the closest customers.i.e. home demand Thus the characteristics of home demand are particularly important in shaping the attributes of domestically made products and creating pressures for innovation and quality. A nation gains competitve advantage if their domestic consumers are sophisticated and demanding as the consumers pressure local firms to meet high standards of product quality and innovaiton is thus rewarded. Relating and supporting Industries- The pressence of suppliers/ related industries that are internationally competitive adds to the source of competitive advantage. The benefits of the investments in downstream industries benefit the upstream ones by spilling over their gains.Firm Strategy Structure and Rivalry- Different nations are characterized by different management ideologies, which help them create competitive advantage. Also there is a strong association between vigourous domestic rivalry and the creation and persistence of competitive advantage in an industry. This rivalry inturn induces firms to be more efficient thus leading to innovation, improvement in quality, reduction in costs etc.Factor Endowments Related and supporting industries Firms Strategy, Structure and Rivalry Demand Conditions Flipkarts Acquisiton of Myntra Sector: e - Commerce (Fashion) Valuation: Rs. 2000cr (approx.) (Biggest consolidation in the e-commerce space in India) - Myntra will operate as a separate unity as it is important to preserve the culture and Mukesh Bansal (CEO, Myntra) will be joining the board and heading the apparels business Company Highlights - Flipkarts annualised sales revenue have crossed the $1 billion mark and it has achieved this number a year in advance. - Myntra sells products from over 650 brands and clocked over Rs. 1000 cr in revenues in the last fiscal year and it aims to double its revenues in this year as it expands its seller base and adds products. It has 100 sellers and it plans to increase this number to 1000 by this fiscal end OBJECTIVES & SYNERGIES We want to be the leaders in every segments and fashion is the category of the future. This deal will help them become leaders in that segment Sachin Bansal, CEO, Flipkart - The move will help flipkart strengthen its portfolio and compete more aggressively with peers like Amazon and SnapDeal - Itll help gain market share in the fast growing apparel market and provide the much needed scale to flipkart - Myntra has a last mile delivery covering 70 cities while that of flipkart is 250 COMPETITORs STRATEGY - Amazon is also looking for companies to acquire to boost its presence in India as per several investment bankers. - SnapDeal is being backed up Ebay as Ebay is sourcing some of its Indian operations through it and similar to Flipkart it has raised fresh round of funding. STRATEGISTS VIEW The DIPP is pitching for 100% FDI in e-commerce space and the deal has just come in that point of time. The current policy does not allow 100% FDI in b2c even as 100% is allowed in b2b. With battlegettingintensebetweenAmazonandFlipkartweexpectmoreconsolidationinthe comingyears.Withgrowingcompetitionsmallerfirmswillfinditdifficulttoraisecapitaland copewithpricewarforcingthemtomergewiththebiggerrivals.Henceastrategically motivatedmovethattakesintoaccountthepossibleimpactofpolicychangesaswellas competition that is bound to increase in the given sector. FUTURE - Company will spend roughly Rs.600cr in the fashion category - Planning to increase their sales through mobile phones - Immediate goal is to increase it to 60% - Myntra plans to increase its no. of brand and sellers - Likely to integrate their backend functioning going forward DEAL OF THE MONTH Himanshu Damani Pg13himanshu_d@mandevian.com 8586000994 Strategist@mandevian.com