CE Financing inclusive growth Challenges & opportunities Presented by: Dinanath Dubhashi

Advantage India- Advantage CE High Growth in construction sectors Skilled Manpower Availability of Manpower Embracing modern technology High growth potential in Infrastructure space Strong Government focus Advantage India 11/25/2011

Emerging trends in CE Per capita number of machines currently close to 15 against 396 in US and 96 in China As asset density moves towards global average, Indian CE industry will continue to thrive FTU and retail constitute close to two-third of the market and would continue to be the fulcrum of growth in the future Evolving technology resulting in lower life span of asset and hence a vibrant used asset market will become a necessity Innovative solutions for development of FTU, retail and used asset markets will be a key to inclusive growth 11/25/2011

Future needs for inclusive growth Development of FTU and Retail segments –Solutions to transfer risk from counterparty risk to asset risk –Solutions beyond mere financial products Key to developing Used Asset market –One Stop Shop bundling financing with the platform to buy/ sell used asset –All risk operating lease 11/25/2011

Making growth of Retail/FTU segment more inclusive Lease services –Can be structured as operating lease where the buyer can return the asset back to the financier. –Need to have clear markets where the financiers can redeploy the asset Rental Services –Currently pegged at less than 10% of the market –Very few organized players in the market –Financiers can occupy this space by providing asset on rent to retail segment 11/25/2011

Making growth of Retail/FTU segment more inclusive Asset Deployment Services –Financiers have mix of large client with steady order book and retail clients –Based on customer comfort financiers can provide asset deployment services to FTU and retail clients to ensure steady cash flow –Will result in lowering of risk and will also increase the market size as asset risk will come down 11/25/2011

Inclusion through used asset financing One Stop Shop Platform –One platform where buyer and seller can converge and list their requirements/ assets –The platform will also provide with financing options for early closure of the deal Used CE financing –Financiers need to develop credit appraisal mechanism for this presumably risky segment –Asset not registered hence ownership and valuation difficult to ascertain –Lack of interface between financiers, OEMs and equipment disposal agents –Limited auction sites resulting in manipulated prices 11/25/2011

Thank You 11/25/2011