According to the International Monetary Fund, foreign direct investment, commonly known as FDI, "...

refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor." The investment is direct because the investor, which could be a foreign person, company or group of entities, is seeking to control, manage, or have significant influence over the foreign enterprise.
Why Is FDI Important?

FDI is a major source of external finance which means that countries with limited amounts of capital can receive finance beyond national borders from wealthier countries. Exports and FDI have been the two key ingredients in China's rapid economic growth. According to the World Bank, FDI and small business growth are the two critical elements in developing the private sector in lower-income economies and reducing poverty. The US and FDI Because the US is the world's largest economy, it is a target for foreign investment AND a large investor. America's companies invest in companies and projects all over the world. Even though the US economy has been in recession, the US is still a relatively safe haven for investment. Enterprises from other countries invested $260.4 billion dollars in the US in 2008 according to the Department of Commerce. However, the US is not immune to global economic trends, FDI for the first quarter of 2009 was 42% lower than the same period in 2008. US Policy and FDI The US tends to be open to foreign investment from other countries. In the 1970s and 1980s, there were short-lived fears that the Japanese were buying America based on the strength of the Japanese economy and the purchase of American landmarks such as Rockefeller Center in New York City by Japanese companies. At the height of the spike in oil prices in 2007 and 2008, some wondered if Russia and the oil-rich nations of the Middle East would "buy America." There are strategic sectors which the US Government does protect from foreign buyers. In 2006, DP World, a company based in Dubai, United Arab Emirates, bought the UK-based firm managing many of the major seaports in the United States. Once the sale went through, a company from an Arab state, albeit a modern state, would be responsible for port security in major American ports. The Bush

Administration approved the sale. Senator Charles Schumer of New York led Congress to try to block the transfer because many in Congress felt that port security should not be in the hands of DP World. With a growing controversy, DP World ultimately sold their US port assets to AIG's Global Investment Group. On the other side, the US Government encourages American companies to invest overseas and establish new markets to help create jobs back home in America. US investment is generally welcome because countries seek capital and new jobs. In rare circumstances, a country will reject a foreign investment for fears of economic imperialism or undue influence. Foreign investment becomes a more contentious issue when American jobs are outsourced to international locations. Outsourcing of jobs was an issue in the 2004 and 2008 Presidential Elections.

Foreign investment
Foreign direct investment (FDI) is a measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization. Maps below show net inflows of foreign direct investment as a percentage of gross domestic product (GDP). The largest flows of foreign investment occur between the industrialized countries (North America, North West Europe and Japan). But flows to non-industrialized countries are increasing.

What the maps suggest

These maps suggest growing inflows of foreign direct investment in the 1990s. In 1970 and 1980, large parts of Africa, Latin America and Asia had zero or small inflows of foreign investment. By 1999 large parts of Asia, Africa and Latin America, as well as all of North America and large parts of Europe, have FDI inflows greater than 1% of GDP. This expansion of foreign investment into the global South indicates increasing global economic integration. However, much of this expansion may be due to sale of state enterprises, known as privatization, rather than the setting up of new factories (Sutcliffe 2001: 78). And, FDI is heavily concentrated in only a few, industrializing nations. In 1997 nearly 71% the foreign direct investment in developing countries (the global South) went to just 9 nations, and of that over 30% was invested in China alone (Todaro, 2000: 578). Whether you see expansion of foreign direct investment as positive or negative may depend on your ideas about social change (see also "For and Against" button below).

The data
These data show flows of money, as a proportion of GDP, giving a foreign investor a lasting management interest (10 percent or more of voting stock) in an enterprise. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. "Net inflows" means that these figures are inflows minus outflows of money.

Negative numbers mean that outflows of investment (or reinvestment of profits outside the country) exceed inflows. FDI is investment in productive assets, not financial assets. It does not include short-term flows of money, such as portfolio investments and foreign exchange dealings. Source: World Development Indicators (World Bank 2001 CD ROM).

Foreign investment - for and against

After World War II, when many colonized countries gained independence, officials in the new governments believed that foreign investment, foreign ownership of production, wasneocolonialism, a continuation of colonialism in economic form. Acting on these ideas, many governments of newly independent countries nationalized foreign owned industry. This meant that the factory, mine or other enterprise was taken over and run as a state enterprise. In recent years, recognition of the low productivity of state enterprises has contributed to the reversal of the trend toward nationalization. Many state enterprises have been privatized, that is, turned into privately owned corporations. There is now consensus among governments of industrialized and non-industrialized countries that foreign direct investment is desirable, even essential, for economic growth and poverty reduction. Many questions remain about how foreign investment should be regulated (Zarsky 2002). Kiely (1998: Ch 5) summarizes some of the arguments for and against Transnational Corporations and the capital investment they bring. Critics of foreign investment have suggested that it led to dependent, or restricted, development. Supporters have suggested that foreign investment can bring capital and technology, develop skills and linkages and increased employment and incomes.

References and further reading

Easterly, W. R. (2001). The elusive quest for growth: economists' adventures and misadventures in the tropics. Cambridge, Mass., MIT Press. See particularly Chapter 3 "Solow's surprise: Investment is not the key to growth". Kiely, Ray (1998). Industrialization and development: a comparative analysis. London, Bristol, Pa., UCL Press. See particularly, Chapter 5 "Late industrialization and the global economy", for a discussion of debates about the role of Transnational Corporations and foreign investment. Sutcliffe, Robert B. (2001). 100 ways of seeing an unequal world. London; New York:, Zed Books. Todaro, Michael (2000) Economic Development. Adison Wesley Longman. Wade, Robert (1998). "The coming fight over capital flows." Foreign Policy 113 (Winter)(41). Zarsky, L. (2002). Foreign Direct Investment: No Miracle Drug. Ultimate Field Guide to the US Economy: http://www.fguide.org/Bulletin/fdinodrug.htm.

Foreign direct investment is relevant when a company makes an investment by buying another company or diversifies business in a nation other than in which it is based. The investment made through FDI becomes a source of external finance which could strengthen the economy. How do companies benefit? Some of the advantages for companies who choose to invest in other countries are tax exemptions, lower cost of working capital, access to foreign markets and expansion of business. What is the difference between a franchise (eg: Dominos, Pizza Hut) and an FDI module?

Many companies have established their franchised business in India so how is the FDI module different? In a franchising arrangement, the franchisor usually does not make any contribution to the business in terms of equity. According to Franchise India, the franchisors contribution is in terms of grant of rights for the use of their intellectual property and business method. The equity is contributed by the Indian franchisee and the economic interest of the franchisor is limited to the franchisee fees that he receives from the franchisee. Whereas an FDI occurs when an investor, based in one country (the home country), acquires some asset in another country (the host country) with intent to manage the asset. Some arguments in favour of FDI:

FDI will generate employment in the country it invests It could benefit farmers by eliminating middlemen FDI gives consumers a wide variety of products to choose from at reasonable prices It can improve food distribution systems FDI can bring in better quality and standard products FDI can increase the standard of living through its goods and services It could raise the bar among other domestic companies in the same sector It contributes to the health of the economy

Some arguments against FDI:

Allowing foreign players could destroy the livelihoods of millions of small store owners Market prices could be manipulated by foreign retail giants Local jobs could be at threat since the foreign players could purchase many products from abroad There is no established correlation between advent of FDI and improvement of a countrys infrastructure
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With the government campaigning for FDI in retail, the question is, is it really going to help? If yes, then whom?

Today, the ministry of commerce and industry took its campaign to promote FDI (Foreign Direct Investment) in retail to the literate population of India, with full pageadvertisements in newspapers.

The advertisement claims that such direct investment will bring huge benefits not only to the farmers but to the society at large and that it will generate over 10 million new jobs and so on. Naturally, it does not give any time frame to achieve this end.

The ministry calls this as another revolutionary leap for the Indian economy. Reading such an ad makes it nice, but whether it will truly benefit the people in the long run remains to be seen. At least in US, it did not do so, according to the media.

The first and foremost fear is that farmers will be exploited by the predatory pricing policy of the large retailers, a job that is probably and already being done by a host of middlemen. So, instead of many such middlemen, there will one source where the farmer will face a single-window clearance, and that of the FDI retailer!

Having said that, will this process reduce the ultimate cost that the actual consumer has to pay for the farm products? Yes, in more ways than one, as the present Indian retails and supermarkets reveal.

Let's take a look at any Indian major city, like Bangalore, for instance. There are several big business houses in retail, such as Reliance, Tatas, Goenkas, and supermarkets like Spar, Big Bazaar, etc to name a few. In this category, we could include government sponsored HOPCOMs too.

There is intense competition amongst all these organizations. The pricing is sharp and the range of products covered is going up by the day.

And who are the buyers? They are the growing middle-class rich consumer society, where the chances are that both husband and wife earn a living and have a reasonably comfortable lifestyle. In all probability, they shop once in a week to make the purchases and do it methodically; no spur of the moment purchase, but needs are listed and shopping is done at leisure on chosen days.

The only thing that is left to buy is the odd item that may fall short which the family member at home or the cook may resort to purchase from the nearest Kirana shop or buy from the cart vendor, whose prices are at least 50% higher than the retailers mentioned above. This is based on the actual experience of the writers family.

FDI in retail is not a simple exercise to be covered in a single article but an in-depth study will take quite sometime and its impact cannot be visualized easily. If Reliance and Big Bazaar have come to stay, so will the FDI in retail, in due course.

FDI in retail will be subject to a lot of discussions and scrutiny. To generalize and compare how other countries have fared and still let kirana (small shops in road corners) survive or bring about better returns to farmer is a futile exercise. The conditions in India are different. We need to clearly spell out some basic pre-conditions that have to be complied within a specified time-frame, failing which, the licensee will have to pack up and go home.

a) At least 30% of the indigenous farm produce will have to be retailed b) Each FDI-R licensee be given the choice of seven to 10 locations where it can commence its actual retail operations c) These operating centres will have to be supported by actual infrastructural development of warehouses, cold storage and transportation logistics in identified sources of supply at the produce points d) The next set of new cities will be after successful performance, a minimum of 18-24 months later, with the same conditions relating to infrastructure development or by expansion of existing ones e) The activities of the FDI-R licensee will be subject to a close check and follow-up by a regulator who will maintain a watchdog committee for keeping a track of purchase pricing to retail selling; of the actual commitments in terms of fulfillingemployment growth and how these actually are benefiting the country in terms of taxes earned f) These FDI-R licensees should not become the single largest selling point formarketing products of other countries when identical or similar products of indigenous makes are readily available.

These measures would be the first of many that one can think of as a start.

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US. He can be contacted atanantha_ramdas@yahoo.com.)

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Investment Opportunities in India

May 8, 2012

The Scope of Foreign Direct Investment in India

Filed under: Business in India,Business Opportunities,fdi India,Indian Economy,Investment Opportunities Harjeet @ 5:10 PM Tags: FDI, fdi equity, Foreign direct investment, foreign direct investment in India, Indian Industrial Sectors, Infrastructure In India, invest in India, Invest in Indian atomic energy, Invest in Indian Railways, investing in India, investment, Investment Opportunities, investment sectors The foreign direct investment into India is a process for facilitating people to invest in India. If you are really interested in doing business in India with the help of foreign capital then make sure that you are investing in the right source and you can do this in a number of ways. Even when India was going through tough times, it was still a good financial breeding ground for all foreign investors. They have never felt the pressure as their genre of investment has always been unleashed for the purpose of ushering more capital within the country.

There have been several Indian infrastructures who may have suffered in the field of production and manufacturing due to lack of essential capital. However, a good way for them to survive is by offering FDI equity to companies or individuals who would be interested in making huge capital investments. Foreign direct investment in India is done in several ways. Investment can take place through effective financial collaborations. In this case the common interest is the yearly financial turn over and to make this work out two or more companies come in association and they share much in contributing towards a common financial consensus. The effort has to be there from both the ends, from the part of the investor and also from the part of the collaborator. When collaborating, you can keep the leadership factors aside and think about a healthy togetherness contributing towards a bigger financial platform. As a way towards FDI equity is also a joint venture and a technical collaboration. Once the company delivers the plan of taking things technically ahead then other can contribute in a different way. It is more technical and less of financial collaboration. Foreign direct investment in India is not permissible in all industrial sectors as it is not allowed in the domain of arms and ammunition. You cannot invest in the field of atomic energy. You cannot invest anything related to railway and transport and you cannot even put your money in the field of coal and lignite. It is even not permissible to invest money in matters of metal mining. Thus, keeping aside these domains you still have a huge scope for investment.
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Policies for foreign investors to do business in India Filed under: Business in India,Business Opportunities,Indian Economy Harjeet @ 5:02 PM Tags: business in India, Business Opportunities in India, fdi in India, FDI policy of India, Foreign direct investment, foreign investment in India, foreign investors,GDP, Gross Domestic Product, Indian economy, Investment Opportunities in India, NRIs Investment in India, Overseas Indians, PIOs, tax incentives in india

India is clearly becoming a more and more important player on the world stage in G20 context, in terms of its role in the global economy. It is very useful for us to exchange ideas and build the basis for future collaboration, according to Mr Ben Bernanke, Chairman, US Federal Reserve. India is the fifth best country in the world with dynamic growing businesses opportunities for nonresident Indians (NRIs). The Grant Thornton Global Dynamism Index gives a reflection of how suitable an environment it offers for dynamic businesses. Scenario of Indian Economy The Indian economy continues to grow at a good pace and holds a strong position on the global map. The countrys gross domestic product (GDP) has been growing at an average rate of 8.5 per cent for the last five years. Indias economy is amongst the largest in the world on the basis of Purchasing Power Parity. It is today one of the most attractive destinations for business and investment opportunities for NRIs and foreign investors with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. In FY 2011-12, the country attracted foreign direct investment (FDI) of around US$ 46.8 billion in various sectors. The economy of India also boasts a robust financial system and deep capital markets. Indias demographic are very attractive with approximately 65 per cent of the total population falling in the age group of 15 to 64 years. Foreign investment framework of India The foreign direct investment (FDI) regime has been progressively liberalised during the course of the 1990s and continues to do so in the 2000s, with most restrictions on foreign investment being removed and procedures simplified. Foreign investors can invest directly and do business in India, either on their own or as a joint venture. Some of the features of the consolidated FDI Policy of India and incentives offered by it: Indian companies are permitted to issue equity shares, fully, compulsorily and mandatorily convertible debentures (FCDs) and compulsorily and mandatorily convertible preference shares (CCPS) to the non-residents subject to pricing guidelines/valuation norms prescribed under FEMA Foreign investment is calculated on the basis of ownership and control of the Indian company. Use of foreign brand names/trademarks is permitted for the sale of goods in India

Single window clearance facilities and investor escort services are available in various states to simplify the approval process for new ventures Sole proprietorship in India

Sole proprietorship is the oldest and most common form of business. It is a one-man organisation where a single individual owns, manages and controls the whole business. An NRI or a person of Indian origin (PIO) residing outside India is allowed to do business in India through a sole proprietorship concern. The investment should be made on nonrepatriation basis subject to satisfying certain other conditions. Tax Incentives in India The Government of India, for the purpose of accelerated growth of the Indian economy, has extended incentives in the form of tax holiday, deductions, rebates etc under the direct/indirect taxes. Primarily, such incentive relates to export promotion, new industrial undertaking, infrastructure facilities, software industry, research, promotion of backward areas etc. Leave a Comment December 27, 2012 Opportunities for foreign investors in India Filed under: foreign direct investment in India,foreign investment in India,Investment Options Harjeet @ 5:03 PM Tags: foreign direct investment in India, foreign investment in India, Foreign investors in India, Indian Retail Industry, Indian small and medium enterprises, invest in Indian Infrastructure, investment in India, investment in Indian Industry, investment in multi-brand retail, investment opportunties in India, investment options,single-brand retailers in India, SMEs Indian markets, across all industries, are considered as viable long-term investment options as the country stands strong amid global financial turmoil. India is considered to be the third most favoured destination for investment after China and the US for major global companies, according to UNCTADs World Investment Report 2012. The report anticipates that foreign investments in India could increase by over 20 per cent in 2012-13. Foreign Direct Investments in India In recent years, bulk of the foreign direct investments in Indian business sectors of infrastructure, telecommunication, information technology, computer hardware and software, and hospitality services, have been made by investors of countries like US, UK, Mauritius, Singapore, and many others. The foreign direct investment in India can easily be made in a variety of ways, through the Governmental and automatic routes. However, the joint ventures (JV) are the most popular and preferred forms of making investment in Indian industry. The Government has recently cleared 14 foreign direct investment proposals worth Rs 113.35 crore based on the recommendations of Foreign Investment Promotion Board (FIPB). Major proposals include an equity increase of Rs 68.22 crore by the UK-based Dashtag to conduct business of pharmaceuticals specialising in dermatology, anti-histamines, antibiotics and oncology products.

Some of the major foreign direct investments in India are: Japanese auto major Nissan intends to introduce 10 new passenger car models by the end of March 2016 in a bid to boost its volumes in India. The company also aims to double its vehicle sales in 2012-13 United Nations Industrial Development Organisation (UNIDO), Austria has appointed Ramky Enviro Engineers Limited (REEL) as its strategic partner to work on a project for the Bhilai Steel plant Mahindra Finances subsidiary Mahindra Insurance Brokers (MIBL) has formed a venture with LeapFrog Investments wherein the latters subsidiary, Inclusion Resources Singapore, would infuse Rs 80.41 crore for a 15 per cent stake in MIBL Major reforms in foreign direct investments in India The Government of India has given its nod to 51 per cent foreign direct investment in multi-brand retail. The decision will pave way for retail giants like Walmart, Tesco and IKEA to enter into Indian market and make footprints in the US$ 450 billion retail industry. Moreover, the Government has relaxed sourcing norms for single-brand retailers and has permitted them to buy at least 30 per cent of the goods from Indian industry, rather than particularly from Indian small and medium enterprises (SMEs) as per earlier stipulation. In case of civil aviation, the Government has allowed foreign carriers to buy up to 49 per cent stake in their Indian counterparts. Further, to sustain the momentum of the above stated reforms, the Government would take more decisions to create investment options for overseas investors. The measures being considered include raising the ceiling for foreign borrowings, easing curbs on portfolio investors, and liberalising norms for overseas borrowings. Future of foreign investment in India With the Government of India laying intense focus on increasing the countrys share in the global FDI space from 1.3 per cent in 2007 to 5 per cent by 2017 by relaxing and un-complicating the FDI norms, it is expected that foreign majors would invest aggressively in the flourishing Indian markets. Leave a Comment India offers huge opportunities to NRIs/PIOs for investment Filed under: Investing in India,Investment Opportunities,investment opportunities in India,NRIs Investment in India Harjeet @ 5:02 PM Tags: Business Opportunities in India, Business Opportunties for NRIs in India, FCNR Account, fdi in India, Foreign direct investment, Gross Domestic Product,Indian economy, invest in India, investing in India,

Investment Opportunities, investment options for NRIs, NRE Account, NRIs Investment in India, NRO Account The Indian economy continues to grow at a good pace and holds a strong position on the global map. The countrys gross domestic product (GDP) has been growing at an average rate of 8.5 per cent for the last five years. Indias economy is amongst the largest in the world on the basis of Purchasing Power Parity. It is today one of the most attractive destinations for business and investment opportunities with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. In FY 2011-12, the country attracted foreign direct investment (FDI) of around US$ 46.8 billion in various sectors. Investment Options for NRIs in India India offers a stable, prosperous foundation to grow ones business. It offers rich business opportunities and markets to non-resident Indians (NRIs) and person of Indian origin (PIOs) for new products and services. It is one of the fastest, easiest and lucrative investment destinations in the world to set up business. India is the second-most profitable destination, according to UNCTADs World Investment Prospects Survey 2010-2012. NRIs/PIOs are investing in India, especially in the health care sector. The sector has opened up new business opportunities for them to invest in India because of the rise in disposable income, penetration of health insurance and change in lifestyle of present generation. How can NRIs and PIOs invest in India? The following investment opportunities are available to the NRIs and PIOs for investments in India: Non-Resident (External) Rupee (NRE) Accounts: NRE account may be in the form of savings, current, recurring or fixed deposit accounts. Such accounts can be opened only by the non-resident himself and not through the holder of the power of attorney. The interest rates on NRE savings deposits shall be at the rate applicable to domestic savings deposits. Currently the interest rate is 3.5 per cent. Non-Resident Ordinary (NRO) Rupee Account: NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts. Account should be denominated in Indian Rupees. Permissible credits to NRO account are transfers from rupee accounts of non-resident banks. Foreign Currency Non Resident (Bank) Account FCNR (B) Account: FCNR (B) accounts are only in the form of term deposits of 1 to 5 years. All debits / credits permissible in respect of NRE accounts, including credit of sale proceeds of FDI investments, are permissible in FCNR (B) accounts also. Account can be in any freely convertible currency. The Government has created many policies and schemes to maximise investment options for NRIs/PIOs in the real estate sector of India

 RBI has allowed, both people residing outside India holding Indian passports and also PIO to invest in residential as well as commercial properties in India RBI has granted general permission to NRIs/PIOs, for undertaking direct investments in Indian companies, under the automatic route purchase of shares There are many other exciting business opportunities in India, especially, for entrepreneurs dealing in outsourcing technology, internet ventures, software development, e-commerce, etc. Governments intervention on policy issues, especially, tax regulations and foreign direct investment (FDI) will play an important role in driving large transactions, especially, inbound deals. Indias growth story remains intact and NRIs/PIOs will continue investing in India. Leave a Comment NRI Investment options in Indian education sector Filed under: education sector in india,Investing in India,Investment Opportunities,investment opportunities in India Harjeet @ 5:01 PM Tags: Education in India, Education sector in India, Emerging Opportunities in education, FDI in Education Sector, FDI in Indian Education, Foreign direct investment, invest in India Education, Investment in Indian education sector, Investment Opportunities, investment options in education, investment options in india India has emerged as a strong potential market for investments in training and education sector, due to its favourable demographics (young population) and being a services-driven economy. Further, Indias expanding role in sectors such as software development, generic pharmaceuticals and healthcare, would require the country to invest into learning and training segment as well. Market size of education sector in India With a growth rate of 10 to 15 per cent expected over the next decade, education in India has witnessed a series of developments and changes in the last few years, which has resulted in a significant increase in the market size and investment opportunities as compared to previous years. In India, the pre-school segment is currently worth US$ 750 million and is expected to reach US$ 1 billion by 2012, said Arun Arora, Chairman, Serra International Pre-Schools. The market size of K-12 sector is expected to reach US$ 34 billion in 2012, with a rise of 14 per cent, as compared to US$ 20 billion in 2008. Vocational education/training is gathering huge investments from corporate and private equity (PE) firms as the methodology and technology pertaining to this sector is witnessing significant improvements. Investment in Indian education sector

Education in India is also considered as one of the major areas for investments as the entire education system is going through a process of renovation, according to a report Emerging Opportunities for Private and Foreign Participants in Higher Education by PricewaterhouseCoopers (PwC). The Government of India has allowed foreign direct Investment (FDI) up to 100 per cent through the automatic route in the education sector. Government Initiatives for promoting education sector in India Some of the initiatives taken by the Government of India for infrastructural development of education sector are as follows: The Ministry of Human Resource Development plans to set up ten community colleges in collaboration with the Government of Canada in 2012. The Government of India has decided to set up hundred community colleges this year. The Government of Gujarat plans to set up a farming educational institute in collaboration with Israel, offering post-graduation and Ph.D programmes with practical training and degree from Israeli universities. The Government of India also plans to set up an Indian Institute of Agricultural Biotechnology at Ranchi with investments of Rs 287.50 crore. Future of Indian education sector Consulting firm Technopak is very positive about the growth of the sector and estimates private education sector alone to grow to US$ 70 billion by 2013 and US$ 115 billion by 2018 in its study A Report Card on Indias Education Sector. There are clear investment opportunities for private players to enter the Indian education space. The opportunity exists in all three segments schooling, higher education and vocational training. Some success stories are Manipal University, Amity University and the Indian School of Business. Public-private partnerships (PPP) arrangements, tax concessions for education and encouraging foreign capital to build infrastructure in India would encourage the creation of new capacities by the private sector. Indias education sector is expected to witness huge investments from PE funds over the next couple of years on the back of increased Government spending and expansion plans of private players. Leave a Comment Investment opportunities in energy and telecommunication sector of India Filed under: energy sector in India,Investment options in India,Investment sectors,telecommunication in india Harjeet @ 5:00 PM Tags: energy sector in india, Green Telecommunication, Indian energy sector, invest energy sector, invest in India, invest in telecommunication, Investment Opportunities, Investment options in energy

sector, investment options in india, Investment Sectors of India, renewable energy technologies, telecommunication in India, Telecommunication sector of India The Government of India has accepted Telecom Regualtory Authority of Indias (TRAI) recommendations on Approach towards Green Telecommunication and has decided to promote the use of green energy in the telecommunication sector setting broad directions and goals to achieve desired reduction in carbon emission through use of renewable energy technologies and energy efficient equipment. Department of Telecommunications has issued directions to the licensees for implementation with immediate effect. These directions stipulate inter-alia that at least 50 per cent of all rural telecom towers and 20 per cent of the urban towers are to be powered by hybrid power (renewable energy technologies and grid power) by 2015 while 75 per cent of rural towers and 33 per cent of urban towers are to be powered by such systems by 2020. Telecommunication sector of India Telecommunication in India is the second-largest in the world with 951.3 million subscribers as of March 2012. India is expected to feature among the top 10 broadband markets by 2013. In terms of subscriber base, Bharti Airtel made the lead in the month of July 2012 with 188.8 million subscribers followed by Vodafone with 154.9 million. Idea Cellular added 455, 912 subscribers to have 117.6 users and State-run Bharat Sanchar Nigam Ltd (BSNL) added 471,552 users to have 98.75 million subscribers. Tata Teleservices has a total number of 77.8 million subscribers, while Uninor has 44.5 million. Since the introduction of the New Telecom Policy in 1999, telecommunication in India has witnessed huge investment opportunities, especially in the wireless segment. The industry has evolved as a basic infrastructure on the similar lines of electricity, roads, water etc. The Government of India is also focussing on improving rural tele-density and broadband connectivity, effective expansion of the networks with efficient utilisation of scarce spectrum and ensuring equal sharing of highly capital intensive infrastructure. Indian Energy Sector The Indian energy sector is one of the most diversified sectors in the world. Energy in India is generated from commercial sources like coal, lignite, natural gas, oil, hydro and nuclear power as well as other viable non-conventional sources like wind, solar and agriculture and domestic waste. Energy sector in India has been growing at a rapid rate and is expected to increase further in the years to come. In order to meet the increasing requirement of electricity, massive addition to the installed generating capacity in the country is required. India has been one of the top performing clean energy economies in the 21st century, registering the fifth highest five-year rate of investment growth and eighth highest in installed renewable energy capacity, according to a research report released by The Pew Charitable Trusts.

The investment climate is very positive in the Indian energy sector. Due to the surge in the sector, it has witnessed higher investment flows than envisaged. The Ministry of Power has sent its proposal for addition of 76,000 MW of power capacity in the Twelfth Five Year plan (2012-2017) to the planning commission. The ministry has set a target for adding 93,000 MW in the Thirteenth FiveYear Plan (20172022). The Government has initiated several policies for energy sector in India to promote and garner investments from NRIs/PIOs. To accelerate capacity addition, several policy initiatives have been undertaken by the Ministry of Power. Leave a Comment November 28, 2012 Wealth Management Investment Guide for NRIs Filed under: invest in India,Investing in India,investment guide,Investment Opportunities,Investment Options,Investment options in India,investment strategies Harjeet @ 5:14 PM Tags: foreign investors, investing in India, investment, investment avenues in India, investment guide, Investment Opportunities, investment options in india,investment platform, investment sectors, investment strategies, NRI Investment Guide, NRIs investment guidance, Overseas Indians, Overseas Indians Investors,wealth management services What would you prefer: Rs 1, 00,000 right now or Rs 1, 00,000 five years from now? It will be better if we should take Rs 1, 00,000 today because we know that there is a certain time value of money. The Rs 1, 00,000 received now will provide us with an opportunity to put it to work instantly and earn a certain return on it. A single rupee today is worth more than a single rupee a few years down the line. Because of this, people who have surplus funds in the form of savings want to invest so that the value of the funds over the years does not go down. It is also very important to determine your financial goals. You need to decide which type of investment strategies works for you. Your strategy will determine the extent of your success in the investment world whether you invest in India or overseas markets. The strategies can differ greatly from a rapid growth strategy where an investor focuses on capital appreciation to a safety strategy where the focus is on wealth protection. The most important part of investment strategies is that it aligns with the individuals goals and is closely followed by the investor. Investment options in India

There are various forms of investments options at the disposal of individuals in India. These include real assets like a house, a car, a television, or financial assets like stocks in companies, bonds, units of funds, etc. Traditionally, term deposits in banks, post office savings schemes, bonds and common stocks are the most accessible forms of investments available to the investors. Term deposits, post office savings schemes and bonds give a fixed return over a period of time. Several national priority level and state-specific projects are being implemented across the country by the Government of India. These offer huge potential for investors willing to invest in India. The Government is in fact, promoting Public Private Partnerships (PPPs) in many projects opening up new vistas in sectors such as infrastructure, education, healthcare etc. Wealth management services in India There are individual investment avenues in India that help you enhance your individual wealth. These are offered by eminent banks in India, which have rich experience in servicing overseas Indians. Not only will you get to choose from a wide bouquet of investment products, but these can also be customised as per your individual needs. Investment Toolkit In an effort to ease the process of investing into the country, Overseas Indian Facilitation Centre (OIFC) has developed an online NRI Investment Guide. The toolkit provides an entire range of investment guidelines, policies and procedures, suggests the range of compliance requirements and clearances, as desired, in synergy with the investors investment preferences. In other words, it is a simple, practical, and realistic online investment guide customised to the needs of overseas Indian investors. Investment Facilitation Platform of OIFC helps NRI through the complete process of investing, right from choosing the correct investment opportunities and applying right investment strategies to actually making the investment. Leave a Comment November 23, 2012 Scope of Investment Environment in India Filed under: foreign investment in India,Foreign investors,Investment Opportunities,investment opportunities in India,Investment Options Harjeet @ 12:02 PM Tags: Compulsorily Convertible Debentures, Direct Investments, fdi in India, FII inflows, FIIs, Foreign direct investment, Foreign institutional investors, Foreign investors in India, invest in India, investment

climate, Investment Environment, Investment Opportunities, NRI investment options, NRIs, Overseas investors, PIOs India is in the middle of fast economic and social conversion and it provides a constant, flourishing platform for businesses to grow. It also provides rich investment opportunities to non-resident Indians (NRIs). It is one of the quickest, easiest and successful cost-effective commitment locations to set up a company. In fact, India is the second-most successful location, according to UNCTADs World Investment Leads Study 2010-2012. Foreign Investments in India Indian equities have attracted maximum investments by Foreign Institutional Investors (FIIs) as compared to any other Asian market on the back of policy reforms undertaken by the Government of India to promote economic growth. Foreign investors in India remain substantially strong and have invested over US$ 13 billion into Indian stocks till September 2012. Some of the key investments and developments are: Overseas investors infused about US$ 645 million from October 1, 2012 to October 5, 2012 itself, while they invested more than US$ 3.5 billion in the month of September 2012, according to data released by capital market regulator, the Securities and Exchange Board of India (SEBI) FIIs also infused Rs 1,382 crore (US$ 260.47 million) in the debt market in the first week of October 2012 As on October 5, 2012, the number of registered FIIs in the country stood at 1,753 while, the total number of sub-accounts were 6,329 Another statement issued by the Reserve Bank of India (RBI) revealed that foreign exchange reserves stood at US$ 294.81 billion for the week ended September 28, 2012 wherein the value of gold reserves was recorded at US$ 28.133 billion and that of foreign currency assets (FCAs) was at US$ 259.96 billion The Center for Monitoring Indian Economy (CMIE) projects that FII inflows would strengthen in the second half of FY13 at US$ 11.2 billion as India is looked upon as a viable long-term investment destination on the global canvas. Major FIIs like JP Morgan, Morgan Stanley and Deutsche Bank are believed to drive the positive wave of foreign investments. Government Initiatives The Government of India is playing a vital role in attracting and providing an investment friendly climate to foreign investors in India. The policies have been liberalised to entice more and more cost-effective commitment methods. Some of them are as follows: The Government has created many policies and schemes to maximize investment opportunities for NRIs in the real estate sector of India

 RBI has allowed, both people residing outside India holding Indian passports and also person of Indian origin (PIO) to invest in residential as well as commercial properties in India RBI has granted general permission to NRIs/PIOs, for undertaking direct investments in Indian companies, under the automatic route purchase of shares NRIs/PIOs are permitted to invest in the foreign direct investment (FDI) scheme on a repatriation basis in equity shares/ Compulsorily Convertible Preference Shares (CCPS)/ Compulsorily Convertible Debentures (CCDs) of an Indian company Governments involvement on policies, especially, tax rules and foreign direct investment (FDI) in areas like retail, aviation etc. will play an important part in driving large deals. Indias development tale continues to be unchanged and NRIs/PIOs can look ahead to see better financial commitment options in second half of 2012. Leave a Comment Major Government initiatives and investments in Retail Industry of India Filed under: FDI in Retail,Indian Retail Industry,indian retail sector Harjeet @ 12:01 PM Tags: FDI in retail, FDI in retail sector, FDI in single-brand retail, Foreign direct investment, Indian economy, Indian Retail Industry, invest in retail sector,investment in India, Investment in Indian Retail Sector, retail businesses in India, Retailing in India Retailing in India is one of the pillars of its economy and accounts for 14 per cent to 15 per cent of its gross domestic product (GDP). The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. Indian retail industry, considered as a sunrise sector, offers huge growth potential. The sector is expected to grow almost three times its current levels to US$ 660 billion by 2015, according to Investment Commission of India. The foreign direct investment (FDI) inflows in single-brand retail trading during April 2000 to June 2012 stood at US$ 42.70 million, according to the latest data released by Department of Industrial Policy and Promotion (DIPP). Cash and carry represents an opportunity worth around Rs 8,250 billion of the Rs 27,500 billion annual retail businesses in India. Major Investment in Indian Retail Sector Some of the major investments in Indian retail sector are as follows: Max Hypermarket India has partnered with French retail giant, Auchan Group to open franchise hypermarket stores in India. The existing stores of Max Hypermarket will be rebranded as Auchan and

shall operate under a franchise agreement. Max Hypermarkets and Auchan plan to open 12-15 new stores in a year across various geographies in India Sahara India plans to enter the retail sector and will invest Rs 3,000 crore (US$ 542.50 million) initially to set up the business. The company will start its retail business under the Q brand name and plans to expand its reach in nearly 1,000 cities and towns by 2013 BhartiWalmart plans to invest Rs 104 crore (US$ 18.81 million) in expanding its outlets across the country. In all, BhartiWalmart has about 17 stores in India Government Initiatives The Government of India is playing a vital role in making the Indian retail industrythe most lucrative for non-resident Indians (NRIs) and person of Indian origin (PIOs). Some of the major initiatives by the Government are as follows: The Government of India has allowed 51 per cent foreign direct investment (FDI) in multi-brand retail and 100 per cent FDI in single-brand retail DIPP is likely to consider relaxing the sourcing norms for global retailers to establish shops in India, as IKEA is asking for further relaxation of mandatory conditions The Union Ministry of Finance has provided relief to the Rs 18,000 crore (US$ 3.25 billion) software industry by replacing a multi-level structure of tax deducted at source (TDS) on distributors with a single TDS. This would be deducted by the first distributorone who directly purchases packaged software from a developer The federation has welcomed the new FDI in retail announced by the Government of India. The Government has announced its decision to allow 51 per cent FDI in multi-brand retail and 100 per cent FDI in single-brand retail. In addition, the Government has also opened up the aviation sector and put up four PSUs for disinvestment. The ISF said that FDI in retail sector will have a much wider impact on organised employment as compared to what happened in the IT sector over a decade ago. The federation also said that these measures will open doors for low-skilled people. Leave a Comment Emerging Investment trends in Indian Healthcare Sector Filed under: healthcare in india,Healthcare industry,invest in Healthcare,Investing in India Harjeet @ 12:00 PM Tags: GDP, healthcare in India, healthcare sector in India, healthcare sector infrastructure, Indian Healthcare, Indian Healthcare Industry, Indian pharmaceutical market, invest in healthcare, invest in India, Investment Services, investment trends in healthcare

The Indian healthcare industry is expected to reach US$ 79 billion in 2012 and US$ 280 billion by 2020, on the back of increasing demand for specialised and quality healthcare facilities. Further, the hospital services market, which represents one of the most important segments of the Indian healthcare industry, is expected to be worth US$ 81.2 billion by 2015. Meanwhile, the Indian pharmaceutical market is expected to grow at a compound annual growth rate (CAGR) of 15.3 per cent during 2011-12 to 2013-14, as per Barclays Capital Equity Research report on India Healthcare & Pharmaceuticals. India is the most competitive destination with advantages of lower cost and sophisticated treatments, highlighted the RNCOS report titled Indian Healthcare New Avenues for Growth. The report further elaborates that several key trends are backing the growth of healthcare in India. Emerging trends in Indian healthcare industry The healthcare sector is one sector that has witnessed tremendous entrepreneurial activity over the last few decades across the entire value chain. The emerging areas (diagnostics, pharma retail, biotechnology and life sciences) within healthcare are playing a significant role in attracting global players to India to set-up a number of allied industries in partnership with domestic players. This is also providing Indian entrepreneurs considerable opportunities to invest in healthcare. The way the current financial climate is shaping-up, an entrepreneur needs to think out-of of-the-box prior to making investments, as identifying the correct sector and the most suitable business model is key to survival and growth in the current times. Investment trends in Indian healthcare sector Driven by increased domestic demand for high-end investment services as well as medical tourism, the healthcare sector has attracted huge investment in recent times. Healthcare in India is likely to see increased investment from US$ 34.2 billion in 2006 to US$ 78 billion in 2012 (CAGR of 15 per cent), with 80 per cent of investments from private players. The investments to this scale are expected to increase the bed ratio from 0.9 beds per 1000 people to 1.85 beds per 1000 people. Moreover, large scale investments in infrastructure are required to make healthcare facilities at par with developed countries. According to a survey conducted by consulting firm, Grant Thornton, India is expected to witness the largest number of merger and acquisitions (M&A) in the pharmaceutical and healthcare sector in 2012. The survey that was being conducted across 100 companies stated that fourth of the respondents were bullish on acquiring companies in the pharmaceutical space. The expectations of M&A activity in the pharma and healthcare sector could be explained by factors such as the impending patent cliff in the US, the increasing attractiveness of India as a low-cost R&D destination and the increasing success of Indian firms in getting ANDA approvals, said Sunil Makharia

executive VP (finance) Lupin Pharmaceuticals. Patent cliff refers to expiry of legal protection to topselling drugs. Government Initiatives The healthcare sector in India is witnessing a growth trajectory. The Government has taken several steps required for non-resident Indians (NRIs) to invest in healthcare and to develop healthcare sector infrastructure within a short span of time. The Government has decided to increase health expenditure to 2.5 per cent of the gross domestic product (GDP) by the end of the Twelfth Five Year Plan (2012-17) from the current 1.4 per cent. Leave a Comment Doing Business in India A profitable opportunity for NRIs Filed under: Business in India,business investment opportunities,Business Opportunities,Indian Economy Harjeet @ 11:58 AM Tags: business in India, business investment opportunities, Business Opportunities in India, fdi in India, Foreign direct investment, GDP, Gross Domestic Product,Indian economy, invest in India, Investment Opportunities in India, investment opportunity for NRIs, investment options in india, investment sectors, NRIs investment options, real estate investment The Indian economy continues to grow at a good pace and holds a strong position on the global map. The countrys gross domestic product (GDP) has been growing at an average rate of 8.5 per cent for the last five years. Indias economy is amongst the largest in the world on the basis of Purchasing Power Parity. It is today one of the most attractive destinations for business and investment opportunities with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. In FY 2011-12, the country attracted foreign direct investment (FDI) of around US$ 46.8 billion in various sectors. Advantage India Worlds largest democracy with 1.2 billion people Stable political environment and responsive administrative set up Well established judiciary to enforce rule of law Land of abundant natural resources and diverse climatic conditions

Indias growth will start to outpace Chinas within three to five years and hence, India will become the fastest large economy with 9-10 per cent growth over the next 20-25 years, according to a report by Morgan Stanley

Investor friendly policies and incentive-based schemes Indias economy will grow five-fold in the next 20 years, as per a study by McKinsey Cost competitiveness; low labour costs Total labour force of nearly 530 million

Investment Options for NRIs in India India offers a stable, prosperous foundation to grow ones business. It offers rich business opportunities and markets to non-resident Indians (NRIs) for new products and services. It is one of the fastest, easiest and lucrative investment destinations in the world to set up business. India is the second-most profitable destination, according to UNCTADs World Investment Prospects Survey 2010-2012. India is in the midst of rapid economic and social transition and is giving a feel good factor to the NRIs, especially the real estate sector. Returns from real estate investments have consistently performed well and have even outperformed other businesses in India. The health care sector has also opened new business opportunities in India for NRIs to invest in the country because of the rise in disposable income, penetration of health insurance and change in lifestyle of present generation. There are many other exciting business opportunities in India, especially, for entrepreneurs dealing in outsourcing technology, internet ventures, software development, e-commerce, etc. Governments intervention on policy issues, especially, tax regulations and FDI in sectors like retail, aviation etc. will play an important role in driving large transactions, especially, inbound deals. Indias growth story remains intact and NRIs can look forward to see better investment options in the second half of 2012. Success Stories India has witnessed a number of success stories both Indian and multinational firms have registered higher profits, increased turnover and higher sales over the years. This has prompted them to reinvest profits and inject fresh capital into their processes in order to reap the benefits of the India growth story. Investments have been made by Corporate across the board and almost all the sectors have seen inflow of funds. Global players such as Daimler Chrysler, General Motors, Ford, LG Electronics, Samsung, Sony, Amway, Tupperware, Pepsico, McDonalds, IBM, Oracle, Microsoft, Aviva, Nortel, and Nokia among others have benefited from their business in India and have made expansion plans for the country. The companies plan to expand by way of product diversification, setting up manufacturing base in India, increasing the existing production capacity, establishing research centres in India, etc. Leave a Comment

Next Page 2.1 What is retailing? Retailing is a distribution channel function, where one organisation buys products from supplying firms or manufactures products themselves, and then sells these directly to consumers. In majority of retail situations, the organisation, from whom a consumer buys, is a reseller of products obtained from others, and not the product manufacturer. However, some manufacturers do operate their own retail outlets in a corporate channel arrangement. Retailers offer many benefits to suppliers and customers as resellers. Consumers, for instance, are able to purchase small quantities of an assortment of products at a reasonably affordable price. Similarly, suppliers get an opportunity to reach their target market, build product demand through retail promotions, and provide consumer feedback to the product marketer

2.2 Retail in India The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from ` 35,000 crore in 2004-05 to ` 109,000 crore by the year 2010. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items.

2.3 Growth of Indian Retail It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural

consumption. It had further been found that the retailing industry in India was amount to US$ 21.5 billion in 2010. According to the eighth Annual Global Retail Development Index (GRDI) of AT Kearney, India, retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by near future. According to a report by Northbridge Capita, the India retail industry is growing to US$ 700 billion in 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.

________________________________________ 2.4 MAJOR PLAYER OF RETAIL INDUSTRY IN INDIA ________________________________________ 1. Pantaloon: Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It is growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket Big Bazaar. Future Value Retail Ltd. is subsidiary company of Pantaloon. It has the following retail segments: a. b. Food & Grocery: Big Bazaar, Food Bazaar Home Solutions: Hometown, Furniture Bazaar, Collection-i

c. d. e. f. g. h.

Consumer Electronics: e-zone Shoes: Shoe Factory Books, Music & Gifts: Depot Health & Beauty Care: Star, Sitara E-tailing: Futurebazaar.com Entertainment: Bowling Co.

2.tata group Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over 4-lakh sq. ft retail space across the country.

3. RPG Group RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Food world stores. Later it also opened the pharmacy and beauty care outlets Health & Glow.

4. Reliance Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach ` 90,000 crores by 2010.

5. AV Birla Group AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest ` 8000-9000 crores by 2010.

________________________________________

2.5 RETAIL FORMATS IN INDIA ________________________________________

Hypermarkets/supermarkets: large self-servicing outlets offering products from a variety of categories.

Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch. Departmental stores: are general retail merchandisers offering quality products and services. Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered. Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof. E-trailers: are retailers providing online buying and selling of products and services. Discount stores: these are factory outlets that give discount on the MRP. Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine. Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's. Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples. ________________________________________ 2.6 CHALLENGES FACING BY INDIAN RETAIL INDUSTRY ________________________________________ The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower

Low retail management skill

________________________________________ 2.7 FUTURE OF INDIAN RETAIL INDUSTRY ________________________________________

The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort.

________________________________________ 2.8 ABOUT THE COMPANY (FUTURE GROUP) ________________________________________

COMPANY'S PURPOSE Future Group was founded on a simple idea: Rewrite rules Retain values

This fundamental belief created a new kind of marketplace, forever transforming Indian retail. Today Future Group core values continue to guide how it does business and improve the quality of life of the people we serve. Companys envision Indias transformation into the legendary 'Sone Ki Chidiya' , taking wings once again to reach greater heights. Company take pride in our Indianness. Companys belief in inclusiveness for long-term sustainable growth and economic prosperity evokes trust among consumers, employees, suppliers, partners, shareholders and the community

________________________________________ VALUES OF THE COMPANY ________________________________________ Future Group has the following values: Indianness: Confidence in ourselves. Leadership: To be a leader, both in thought and business. Respect & Humility: To respect every individual and be humble in our conduct. Introspection: Leading to purposeful thinking. Openness: To be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: To build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: To be flexible and adaptable, to meet challenges.

Flow: To respect and understand the universal laws of nature.

________________________________________ VISION OF THE COMPANY ________________________________________ Future Group shall deliver Everything, Everywhere, Everytime for Every Indian Consumer in the most Profitable manner.

________________________________________ MISSION OF THE COMPANY ________________________________________ Company share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. Company will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses. Company shall infuse Indian brands with confidence and renewed ambition. Company shall be efficient, cost- conscious and committed to quality in whatever we do. Company shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

________________________________________ UNIVERSE OF THE COMPANY ________________________________________ As Indias leading multi-format retailer, Future Group inspires trust through innovative offerings, quality products and affordable prices that help customers achieve a better quality of life every day. Future Group comprises operating businesses in three sectors: Retail, Allied Services and Finance. Leveraging a strong understanding and knowledge of Indian consumer preferences, habits and aspirations, we have built some of the most respected retail brands in the country. Our retail business across the value and lifestyle segments focuses on 4 key consumption verticals: food, fashion, general merchandise and home. While retail forms our core business activity, our groups subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, real estate development, retail media and logistics. We have aligned our business opportunities with the broad objective of being a catalyst in Indias consumption-led growth. In line with leading retailers of the world, Future Group aspires to capture a significant portion of Indias consumption and contribute to a significant proportion of our GDP. As the Indian economy matures, it is upon us to lead Indias consumption story, achieving inclusive and profitable growth with sustainable value creation

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MILESTONE OF THE COMPANY ________________________________________ 25 years ago, we began our pioneering journey transforming the Indian retail landscape, wholeheartedly believing in rewriting rules and retaining values. Today, our deep footprint across India and landmark growth is testament to our enduring values. The journey started from:

1987 The company is incorporated under the name of Manz Wear Private Limited. Pantaloons, one of Indias first formal trouser brands, are launched. 1991 BARE, an Indian denim brand is launched. 1992 Pantaloon Retail India Ltd makes an Initial public offer (IPO). 1994 The Pantaloon Shoppe, Future Groups exclusive menswear store in a franchisee format is launched across the nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation. 1995 Future Group launches John Miller, a brand for Formal shirts.

1997 Future Group enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in Kolkata. 2001 Future Group launches three Big Bazaar stores within a span of 22 days in Kolkata, Bangalore and Hyderabad. 2002 Food Bazaar, the supermarket chain is launched. 2004 Future Group launches Indias first seamless mall, Central, in Bangalore. 2005

Future Group moves beyond retail and acquires a stake in Galaxy Entertainment, Indus League Clothing and Planet Retail. Future Group sets up Kshitij, Indias first real estate investment fund, to build a chain of shopping malls. 2006 Future Capital Holdings, the groups financial arm, is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Home Town, the home building and improvement products retail chain, is launched along with consumer durables format Ezone and furniture chain Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major Generali.

Future Group forms joint ventures with US office stationery retailer Staples. 2007 Future Group crosses the $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. Pantaloon Retail wins the International Retailer of the Year award at US-based National Retail Federation convention in New York, and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. Online portal Futurebazaar.com becomes Indias most popular shopping portal. 2008 Future Capital Holdings becomes the second group company to make a successful Initial Public Offering (IPO) in the Indian capital market. Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format anywhere in the world. Total operational retail space crosses the 10 million square feet mark. Future Group acquires rural retail chain Aadhar from the Godrej Group, which has a presence in 65 rural locations. 2009

Future Group celebrates its first Shopping Festival across all retail formats in key Indian cities. Future Innoversity starts its campuses in Ahmedabad, Bangalore and Kolkata to offer degree programs through a tie-up with IGNOU.

Future Group partners with Hong Kong-based Li & Fung Group to strengthen its supply chain and logistics network across the country. 2010 Future Group launches its telecom brand T24 in partnership with Tata Teleservices to provide additional loyalty benefits to its customers. Future Group launches products in key FMCG categories through Sach, a brand co-created with Sachin Tendulkar. Future Group connects over 4000 small and medium Indian manufacturers and entrepreneurs with consumers. 2011 April 2011 KBs Fairprice celebrates opening its 200 stores in India May 2011 Future Supply Chains becomes ISO certified ________________________________________ BUSINESSES OF COMPANY ________________________________________ Retail Others Finance Services Partnerships Loyalty Programs

RETAIL Winning the Hearts of Indian Consumers Future Group was conceived as a force to drive domestic consumption and capture every addressable need of Indian consumers. Company operate some of Indias most popular retail formats. Across value and lifestyle segments, our multi-format retail strategy caters to the complete consumption needs of a wide crosssection of Indian consumers. Lifestyle: Style for Every Occasion Value: Helping India Save Home: Building Dreams in a New India Digital: Connecting the Youth of India. Companys strategy is based on a deep understanding of Indian consumers, the products they want, and making these products available in every city, in every store format. Future Group offers innovative offerings at affordable prices tailored to the needs of every Indian household. Pioneers in the Indias retail space, our formats are household names in more than 85 cities and 60 rural locations across the country Companys stores cover around 15 million square feet of retail space and attract around 220 million customers each year Pantaloon Retail (India) Limited focuses on the lifestyle retail segment led by the Pantaloons and Central formats Future Value Retail focuses on the value retail segment through the Big Bazaar, Food Bazaar and KBs Fairprice formats

________________________________________ CORPORATE STRUCTURE OF THE COMPANY ________________________________________ Future Group is India's leading retail company operating businesses in three sectors: Retail, Allied Service

Finance Future Group retail business across value and lifestyle segments f