HAVELLS INDIA
High degree of automation across production lines
Key focus areas – insourcing, stringent quality checks, process improvements
20 JULY 2016
The InSites
We visited Havells’ switchgear and switches plant at Baddi, Himachal Pradesh. The unit
manufactures the entire range of Havells, Crabtree, Standard and REO brands.
High degree of automation, stringent quality checks, continuous process improvements
and in-house sourcing of design, moulds and components are the key focus areas.
Havells’ world-class manufacturing plants and focus on design/aesthetics are key
contributors to its market share gains and industry-leading margins. We retain BUY,
with a target price of INR425 (33x FY18E EPS).
Motilal Oswal values your support
in the Asiamoney Brokers Poll
2016 for India Research, Sales and
Trading team.
We
request your ballot.
We organized an investor visit to Havells’ Baddi plant in Himachal Pradesh. The plant
manufactures residential switchgear and switches which are: (1) Havells’ most
profitable segment (39% margin contribution in FY16), and (2) Only segment where
Havells’ manufacturing plant in
Havells’ is the market leader (MCB’s). Our key takeaways:
Baddi, Himachal Pradesh is
High degree of automation visible across switchgear and switch assembly lines:
The Baddi plant is among the most automated switchgear/switches plant in India.
60-70% of the switchgear manufacturing process is automated, with only the spot
welding process requiring manual intervention. Within switches, it recently
installed three fully-automated switch assembly machines, which have made the
process faster and reduced headcount by 15 employees.
Stringent quality checks ensure high product durability and reliability:
The
‘Havells’ brand commands a premium and its products are considered reliable
and durable. This is also reflected in the strict quality checks put in place on the
shop floor. In case of switchgear, checks are done for aesthetics, as well as for
potential flaws in mechanical and electrical
parts
during the manufacturing
process. These are followed by routine tests (for 100% of the production), which
cover tripping and high voltage, type tests (sample-based testing), and third-party
tests (at third-party test labs and reports are sent to BIS).
Focus on insourcing of design, moulds and components; process improvements
a continuous exercise:
For strict control over the supply chain, and in turn, cost
of supplies, Havells makes most components, moulds and dies in-house. Its
Center for Research and Innovation (CRI) at Noida provides the designs, while a
press shop (capacity: 40-100 tons), tool shop and molding machines (76 units) at
the plant enable in-house manufacturing. Kaizen, Six Sigma, and Just-in-Time
ensure continuous process improvements and savings.
Retain BUY; target price of INR425:
We maintain
Buy,
with a price target of
INR425 (33x FY18E EPS of INR12.9). The premium valuations are justified, given (i)
its demonstrated track record of accelerating growth through new launches, (ii)
high dividend payout, and (iii) impressive return ratios. Key risks to our rating are
a sharp slowdown in the residential and industrial real estate market and delay in
implementation of 7
th
Pay Commission recommendation and GST.
spread over 21 acres and
operates out of two units.
Key products manufactured at
this facility are switchgear and
switches for the
Havells,
Crabtree, Standard,
and
REO
brands. Havells started the
Baddi plant, one of the most
automated plants in India, in
2004. It expanded the plant in
2006 and set up the second
unit in 2009. In 2012, Havells
began manufacturing the
Kit
Kat
range of switches under the
REO
brand.
Switchgear contributed ~55%
of sales in FY16 while switches
contributed the balance. The
plant manufactures 0.1m units
of switchgear and 7m units of
switches per month. The plant
is currently operating at 70%
utilization.
The Baddi unit is an integrated
facility that manufactures most
components in-house to
achieve precision-engineering
and perfect outputs.
Ankur Sharma
(Ankur.vsharma@MotilalOswal.com); +91 22 3982 5449
Amit Shah
(Amit.Shah@MotilalOswal.com) +91 22 3029 5126
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

The InSites
Exhibit 1: Havells Baddi plant
Source: Company, MOSL
Exhibit 2: Manufacturing process for miniature circuit breakers (MCBs)
Source: Company, MOSL
20 July 2016
2

The InSites
Exhibit 3: Strict adherence to quality control measures ensures high product reliability
Source: Company, MOSL
Exhibit 4: Havells’ MCB range manufactured at Baddi
Source: Company, MOSL
20 July 2016
3

The InSites
Exhibit 5: REO switches Ora switches
Exhibit 6: REO switches Ora switches
Source: Company, MOSL
Source: Company, MOSL
Exhibit 7: Coral switches
Exhibit 8: Athena switches
20 July 2016
4

The InSites
Exhibit 9: Crabtree Murano
Exhibit 10: Mini MCB range
Source: Company, MOSL
Source: Company, MOSL
Exhibit 11: Havells’ residential switches range made at Baddi, Himachal Pradesh
Brand
Crabtree
Sub brand
Thames
Athena
Murano
Verona
Coral
Ora
Reo
Reo Bliss
Kitkat
Standard
Description
Basic range and this is the lowest priced
Paint finish on top of the polycarbonate
Glass finish, chrome finish on the switch
This is for projects - hotel, airports, buildings
Starting range - black and steel gray colors are available
7 color plates, metallic colors with 10 years warranty
Everlasting switches
Modular range with different colors
Non modular switches
Priced at same range as Havells but more focused on the Southern Market
Source: Company, MOSL
Havells
Reo
Standard
20 July 2016
5

The InSites
Key Investment Rationale
New product launches/variants to drive growth:
Havells has consistently been
introducing new product/variants to expand its portfolio of offerings. This
includes a) Domestic appliances in FY11 (INR2.1b sales in FY16) b) Reo switches
in FY12(INR1b sales in FY16) c) Pumps in FY13 (INR0.2b sales in FY16) d) Air
Coolers in FY14 (INR0.1b) and these have the potential to be INR10b+ in
revenues over 3-4 years e) Promptec (INR0.4b) is targeted at INR2.5b. Cross
selling under Standard brand which targets the mid and mass segments has seen
launches across fans and switches (FY16 INR2b sales, target INR10b by FY20).
With a revival already underway in the domestic electricals industry, positive
impact of the 7
th
Pay Commission wage revisions and shift to organized segment
post GST, we expect sales growth to revive to 16% CAGR over FY17-18e.
Standalone margins to expand to 15.5% in FY18 (+190bps over FY16-18e)
driven by cessation of royalty payments and benefits of operating leverage:
Starting FY17, Havells will stop payment for the use of the brand to the
promoters (INR0.4b in FY16). In our view, this would add ~60bps to FY17
margins. Margins have been on upswing in FY16 supported by lower commodity
prices over the past year and this would be an additional tail wind for margins.
We build in standalone margins to rise to 15.5% by FY18 (+190bps).
Sale of Sylvania to help refocus on Indian market:
Havells had acquired Sylvania
in 2007 for (total investment of INR10b till FY15) to expand its portfolio in
lighting and get access to the European and LATAM markets. In Dec, 2015
Havells agreed to sell its stake in Sylvania to Shanghai Felio Acoustics for
INR13.4b. With this sale, the management bandwidth is now solely focused on
the Indian business - it intends to further grow the India business and invest the
proceeds from sale in acquiring a domestic company.
Industry leading returns, strong cash flows and high dividend payouts to help
sustain premium valuations:
Havells has industry leading return ratios with
ROCE’s at 23%/26% in FY17/FY18 respectively. ROIC’s are even stronger at
54%/69% in FY17/18 respectively – it has INR15b of cash on its books as of FY16.
Operating cash flows are 30% higher than PAT as the company has a negative
working capital. In turn, the management has consistently paid out high
dividends with average payout at 45% over FY12-16.
Valuations and view:
Havells trades at 28x FY18E EPS vs. the light electricals
industry average PE of 22x. Our target price of INR425 is based on 33x FY18E
EPS. Key risks to our rating are a sharp slowdown in the residential and
industrial real estate market and delay in implementation of 7
th
Pay Commission
recommendation and GST.
20 July 2016
6

The InSites
Exhibit 12:
Havells Standalone Operating metrics
INR M
Revenues
Swtichgear
Cables and wire
Consumer Durables
Lighting and Fixtures
Others
Total
Revenue Growth (% YoY)
Swtichgear
Cables and wire
Consumer Durables
Lighting and Fixtures
Total
EBIT Margin (%)
Swtichgear
Cables and wire
Consumer Durables
Lighting and Fixtures
Standalone EBIT (%)
Consolidated EPS (INR/sh)
Standalone
Sylvania
Total
FY14
12,192
19,264
8,534
7,207
-
47,197
FY15
12,790
21,904
10,283
7,410
-
52,387
FY16
12,861
22,081
11,411
8,017
-
54,369
FY17E
14,147
24,730
13,922
9,019
-
61,818
FY18E
16,976
28,687
16,706
10,642
-
73,012
FY19E
20,372
33,277
20,047
12,558
-
86,254
13.1
13.8
8.1
8.3
11.7
4.9
13.7
20.5
2.8
11.0
0.6
0.8
11.0
8.2
3.8
10.0
12.0
22.0
12.5
13.7
20.0
16.0
20.0
18.0
18.1
20.0
16.0
20.0
18.0
18.1
36.5
11.0
27.0
24.8
13.1
36.5
12.1
25.1
26.6
12.5
39.2
14.2
25.2
24.1
13.2
37.3
12.8
26.0
27.0
14.6
37.5
12.8
26.0
27.5
15.7
37.5
12.8
26.0
27.5
15.8
8.2
0.5
8.7
7.7
0.5
8.3
8.2
-0.4
7.8
10.5
0.0
10.4
12.9
0.0
12.9
15.3
0.0
15.2
Source: MOSL
20 July 2016
7

The InSites
Financials and valuations
Income Statement
Y/E March
Total Revenues
Change (%)
Raw Materials
Staff Cost
Other Expenses
EBITDA
% of Total Revenues
Other Income
Depreciation
Interest
Exceptional Items
PBT
Tax
Rate (%)
Adjusted PAT
Extra-ordinary Income (net)
Reported PAT
Change (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Intetest
Loans
Deferred Tax Liability
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Goodwill
Curr. Assets
Inventory
Debtors
Cash & Bank Balance
Loans & Advances
Other Current Assets
Current Liab. & Prov.
Creditors
Other Liabilities
Net Current Assets
Application of Funds
E: MOSL Estimates
2015
85,694
4.7
48,292
11,875
18,316
7,211
8.4
1,387
640
504
5,689
1,836
32.3
0
3,853
-13.7
2016
77,142
-10.0
43,832
8,595
16,713
8,002
10.4
1,267
449
863
7,149
2,300
32.2
7,240
12,089
213.7
2017E
63,298
-17.9
37,272
4,565
12,414
9,047
14.3
1,231
50
1,147
8,914
2,490
27.9
0
6,504
-46.2
2018E
74,492
17.7
44,241
4,721
14,190
11,339
15.2
1,340
25
1,400
11,374
3,408
30.0
0
8,046
23.7
(INR Million)
2019E
87,734
17.8
52,120
5,516
16,491
13,607
15.5
1,411
25
1,400
13,571
4,067
30.0
0
9,504
18.1
2015
622
17,557
18,180
4,191
434
1
22,808
30,298
18,469
11,829
383
3,581
32,519
13,663
6,232
7,775
1,723
3,127
25,504
8,338
7,015
22,808
2016
625
24,954
25,579
1,297
744
84
27,704
28,272
17,486
10,786
214
204
27,636
8,371
2,594
14,652
1,656
363
13,710
5,203
13,926
27,704
2017E
625
27,805
28,430
500
0
84
29,014
19,341
7,053
12,288
316
204
31,025
8,438
1,965
17,688
1,798
1,137
14,818
5,094
16,206
29,014
2018E
625
31,468
32,092
500
0
84
32,677
20,341
8,393
11,948
372
204
37,351
9,310
2,285
22,589
1,940
1,227
17,198
6,183
20,153
32,677
2019E
625
36,588
37,213
500
0
84
37,797
21,341
9,804
11,536
439
204
44,595
10,942
2,664
27,571
2,097
1,321
18,977
7,272
25,618
37,797
20 July 2016
8

The InSites
Financials and valuations
Ratios
Y/E March
Basic (INR)
Adj EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors. (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
Cash Flow Statement
Y/E March
PBT before EO Items
Depreciation
Interest
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Oper. Incl. EO Items
(Inc)/Dec in FA
Free Cash Flow
Investment and Others
CF from Investments
Change in Networth
(Inc)/Dec in Debt
Interest Paid
Dividend Paid & Others
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2015
6.2
8.3
-4.7
10.5
29.1
2.9
57.6
2.7
44.8
44.8
35.3
21.6
1.8
12.7
0.8
28.4
17.0
31.4
27
58
36
3.8
2016
19.4
7.8
-6.0
9.8
41.0
4.0
60.3
3.0
47.6
47.6
37.8
26.9
2.8
9.0
1.1
19.0
20.4
43.3
12
40
25
2.8
2017E
10.4
10.4
34.1
12.4
45.5
5.0
56.2
3.7
35.5
35.5
29.9
23.6
3.4
8.1
1.4
22.9
22.8
54.0
11
49
29
2.2
2018E
12.9
12.9
23.7
15.0
51.4
6.0
54.5
3.1
28.7
28.7
24.6
18.4
2.8
7.2
1.6
25.1
25.9
68.9
11
46
30
2.3
2019E
15.2
15.2
18.1
17.5
59.6
6.0
46.1
1.3
24.3
24.3
21.2
15.0
2.3
6.2
1.6
25.5
27.0
89.5
11
46
30
2.3
2015
5,689
1,387
639
1,836
3,180
9,058
0
9,058
-1,531
7,528
0
-732
-198
-6,315
640
2,219
-9,372
-1,045
8,819
7,774
2015
2016
7,148
1,267
447
2,300
-33
6,530
7,240
13,770
-54
13,716
-2,575
748
-1,458
-2,895
365
2,922
-7,640
6,878
7,775
14,653
2016
2017E
8,914
1,231
130
2,490
755
8,540
0
8,540
-2,836
5,704
2,575
-261
-744
-797
50
3,653
-5,243
3,036
14,652
17,688
2017E
2018E
11,374
1,340
105
3,408
955
10,366
0
10,366
-1,056
9,310
0
-1,056
0
0
25
4,383
-4,408
4,901
17,688
22,589
2018E
2019E
13,571
1,411
25
4,067
-484
10,456
0
10,456
-1,066
9,390
0
-1,066
0
0
25
4,383
-4,408
4,981
22,589
27,571
2019E
20 July 2016
9

PRODUCT GALLERY
Our recent InSites
Our recent reports on Havells India
Our recent reports on Capital Goods

The InSites
NOTES
20 July 2016
11

Disclosures
This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company (ies) and/sector(s), if any, covered in the report and may be
The InSites
distributed by it and/or its
affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or
inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution and has been furnished to
you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into account the particular investment
objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek
professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for
future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a some
companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or its affiliates are
seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this material may educate investors
on investments in such business . The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other parties for the purpose of gathering, applying and
interpreting information. Our research professionals are paid on twin parameters of performance & profitability of MOSt.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. Additionally, MOSt
generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and other professionals or affiliates
may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment
decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing among other things, may give rise to real or potential conflicts of interest.
MOSt and its affiliated company(ies), their directors and employees and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies
mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an
advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing
whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the affiliates of MOSt even though there might exist an inherent
conflict of interest in some of the stocks mentioned in the research report Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as
opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research
separated by Chinese walls catering to different set of customers having various objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or employees from,
any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt or any of its affiliates or employees free
and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The information contained herein is based on publicly available data or other
sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a
subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or developments referred to in the
document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons that
may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the
implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on this report or for
any necessary explanation of its contents.
Most and it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any compensation
for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned in this
report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Motilal Oswal Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000000412
Pending Regulatory inspections against Motilal Oswal Securities Limited:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry and
adjudge violation of SEBI Regulations; MOSL replied to the Show Cause Notice whereby SEBI granted us an opportunity of Inspection of Documents. Since all the documents requested by us were not covered we have requested to
SEBI vide our letter dated June 23, 2015 to provide pending list of documents for inspection.
List of associate companies of Motilal Oswal Securities Limited -Click
here to access detailed report
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or
indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation of MOSt research receive
compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee
HAVELLS
No
No
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which
would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has
an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Kong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to
SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities,
products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in
Hong Kong.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is not a
registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the
absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or intended for U.S. persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This
document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be
engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by
the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal
Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and therefore,
may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in the
Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Varun Kumar
Varun.kumar@motilaloswal.com
Contact : (+65) 68189232
Office Address:21 (Suite 31),16 Collyer Quay,Singapore 04931
Kadambari Balachandran
kadambari.balachandran@motilaloswal.com
(+65) 68189233 / 65249115
For U.S
20 July 2015
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
Motilal Oswal Securities Ltd
12