India: Moving away from inbound to outbound investment Carl Nisser – Consultant SJ Berwin LLP – London

Overview of Presentation Major issues in India’s internal market Competition – a base for stronger Indian companies Changing investment trends 1

Major issues in India’s internal market Democratic strength Growth rate of 9 percent overall and 15 percent in IT Increased education reflected in improving literacy rates – total adult population (15 +) 61.3 percent. Youth ( ) 73.3 percent Entrepreneurial spirit Rule of Law and Competition Law Huge financial market Military R&D and production Sustainable energy production and nuclear power generation 2

Competition – a base for stronger Indian companies India is one of the most competitive countries for production of steel, auto components, pharmaceuticals and chemicals offering low cost high value products Software and services such as call centres, accounting, graphic art, customs application developments, back offices for multinational entities Local versus foreign lawyers Governmental interference 3

Changing investment trends From back office to main stage From agents and distributors to direct presence with a footprint in Europe through M&A’s for strategic reasons 4

Changing investment trends (cont’d) Cross border deals by Indian firms 2007$35 billion 2006$15 billon ($21 billion?) 2005$4.3 billion 2000$1 billion 5

Changing Investment trends (cont’d) Indian firms acquired 180 firms in EU and US in 2006 and 130 in M&A’s by Indian companies expected in 2007 and about 400 in 2010 Mittal Arcelor; Tata Tetley; Tata Corus Bollywood now shoots in UK, diamond trade in Antwerp etc. Presence of Indian immigrants in the EU Private Equity from small to large 40 percent of acquisitions by Indian companies are in Korea, Hong Kong and Singapore and 60 percent in EU and US 6

Changing investment trends (cont’d) Total M&A’s into India in 2006 $3.5 billion whilst private equity deals $7.5 billion 7

Many thanks for listening. Carl Nisser Consultant – SJ Berwin LLP 10 Queen Street Place, London EC4R 1BE Tel: +44(0)