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									     The Mayur Hedge Fund
An India focused Equity Long/Short Fund

                         December 2010
                                  Executive Summary
                                  Fund Overview

                    Experience    –   Global Investment House through its hedge funds group is offering a unique investment opportunity – “The Mayur
                                      Equity Long/Short Hedge Fund”
                                  –   Highly experienced and talented alternative investment professionals
                                  –   Experience of launching geographically diversified fund of funds strategies
                                  –   Dedicated and experienced on ground advisory team

                    Investment
                                  –   Buying Efficient Growth at Reasonable Prices (egarp)
                      Objective
                                  –   India focused equity long short hedge fund with absolute return orientation
                                  –   To achieve long-term capital appreciation to the investors
                    Investment
                       Process    –   Investment universe of BSE 200 index constituents
                                  –   Proprietary qualitative and quantitative screening of stocks
                                  –   Due diligence of management competency, corporate governance, growth opportunities, global competitiveness,
                                      cash flows and capital efficiency
                                  –   In-house robust risk management process
     Risk Management Process
                                  –   Highly liquid investment universe
                                  –   Exposure based on individual stock beta and weight average beta
                                  –   Net long exposure normally between 25% to 75% with additional limits to minimize risk
                                  –   Unlevered portfolio and continuous monitoring of liquidity risk
                                  –   Period Non benchmarked Long/ Short India product with a long bias
    Advantage to Mayur Investor

                                  –   Aims to generate absolute returns by a combination of long core holdings and shorts to generate alpha
                                  –   Non benchmarked Long/ Short India product with a long bias
                                  –   Aims to generate absolute returns by a combination of long core holdings and shorts to generate alpha
                                  –   Seeks to capitalize on various opportunities generated by India’s unique structural growth story



2
                                           Global’s – Hedge Funds Group

The Hedge Funds Group
 Global’s Hedge Fund group was established in 1999
 The team currently managers nine funds with US$ 115 million assets under management
 Selectively launched different fund of funds strategies with core investors
Team Overview
 Highly experienced and talented alternative investment professionals
 A universe of more than 750 hedge fund managers are followed on a regular basis
Risk Management
 In-house robust risk management processes
 Onsite quantitative and qualitative due diligence of fund managers
 The group aims to achieve consistent high risk adjusted returns, with low volatility and correlation to traditional asset classes
 Employs various internal risk models such as portfolio concentration & limits, liquidity, adherence to strategy, ownership, etc.

                                                                  Awards
                                       Global Distressed Fund
                                          2nd Best in the World                              Global Distressed Fund
                 Based on annualized returns and Sharpe Ratio                                8th Best in Distressed Securities /Event-Driven category
                                          Eurekahedge (2009)                                 Barclays (2009)


                                       Global Distressed Fund                               Global Distressed Fund
                                         3rd Best in the World                              4th Best in the World
                 Based on annualized returns and Sharpe Ratio                               Based on Sharpe Ratio
                                          Eurekahedge (2005)                                Barclays (2007)

                             Global Umbrella Fund -Asia Japan                               Global Islamic Fund of Funds
                                     Best HF manager in Asia                                Best Fund in July 2008
                                         Eurekahedge (2005)                                 Zawya (2008)


3
                                            Global’s Experience in Hedge Funds




                                                Global Umbrella Fund –                Global Umbrella Fund –
      Global Umbrella Fund – US                                                                                             Global Distressed Fund
                                                        Europe                             Asia/Japan

     Launched in April 1999, the fund       Launched in April 1999, the fund     Launched in April 2000, the fund     Launched in October 2002, the
      has given a cumulative return of        has given a cumulative return of      has given a cumulative return of      fund has given a cumulative
      102.32% since inception                 104.15% since inception               38.11% since inception                return of 59.69% since inception.
     The fund uses an optimal asset         The fund’s objective is to create    The objective of the fund to         The fund invests in managers
      allocation strategy based on the        a diversified portfolio comprised     create a diversified portfolio of     focusing on deeply discounted
      historical data of the underlying       of top managers with an aim to        talented Asia Japan managers          equity and bonds of companies
      funds                                   preserve capital in catastrophic      who outperform in the secular         undergoing financial distress,
                                              markets.                              bear markets                          restructuring or even bankruptcy,
     The fund aims to provide approx.
                                                                                                                          predominantly in the U.S.
      600 to 800 basis points above          The fund uses an optimal asset       The fund aims to achieve
                                                                                                                          markets.
      treasury in three to five year term     allocation strategy based on the      consistent absolute returns with
                                              historical data of the underlying     minimal drawdown and low             The fund aims to generate
     Fund strategies include equity
                                              funds                                 volatility                            returns by exploiting the market’s
      long/short, fixed income
                                                                                                                          inability to accurately value and
      arbitrage, event driven, and           The fund strategies include          The fund invests in Australia,
                                                                                                                          price the deeply discounted
      relative value                          equity long / short, fixed income     Hong Kong, Singapore, China,
                                                                                                                          instruments.
                                              arbitrage, and event driven           Taiwan, Thailand, South Korea,
     The fund has outperformed S&P
                                                                                    Indonesia, Malaysia, and Japan
      500 consistently in spite of being
      exposed to high beta




4
    Global’s Experience in Hedge Funds




       Global Umbrella Fund –                                                          Global Islamic
                                                The Zenith Fund
        Advanced Sciences                                                              Fund of Funds
     Launched in January 2003, the       Launched in January 2004            Launched in July 2007
      fund has given a cumulative
                                          A fund of fund aggressively         The fund invests in Islamic
      return of 29.52% since inception
                                           investing in global macro,           funds that invest in accordance
     The fund aims to invest in           equity, fixed income,                with Shari’s principles
      long/short equity technology and     commodities hedge funds and
                                                                               The fund invests the majority of
      healthcare hedge funds               CTA’s
                                                                                its assets in selected Islamic
     The fund focuses on the             The fund focuses on the              funds that complement each
      managers that have superior risk     underlying managers’ ability to      other in risk and return.
      management disciplines and are       benefit from investing in Global
                                                                               The fund also invests in low
      able to mitigate and limit the       Macro funds and commodity
                                                                                risk instruments to reduce the
      potential downside prevalent in      related funds.
                                                                                overall volatility of the portfolio.
      these volatile sectors




5
                             The Mayur Hedge Fund
                             Investment Objective and Strategy

    Fund & The Investment    –   Buying Efficient Growth at Reasonable Prices (egarp) keeping in mind the basic investment
                 Objective       objective of the fund and the risk/return parameters to be achieved
                             –   India focused equity long short hedge fund with absolute return orientation
                             –   The Fund’s investment objective will be to achieve long-term capital appreciation through
                                 investing predominantly either directly or indirectly in equity-related instruments of Indian
                                 companies


       Investment Strategy   –   Rigorous bottom-up investment process
                             –   Investment predominantly in highly liquid large and mid cap equities
                             –   Investing with a bias towards efficient growth at reasonable valuations (egarp)
                             –   Combining a long and short-term investment approach
                             –   Long bias towards investments in the areas of Investment Manager’s core competence of
                                 investing in Indian securities
                             –   Focus on a diversified portfolio of ~20-50 stocks at any given point in time
                             –   To participate in opportunistic, event driven, pre & post IPO activities
                             –   Hedge market exposure when and where necessary to create returns that are independent of
                                 systematic drivers designed to be alpha generative
                             –   Investment managers can hold both long, short positions in equities and derivatives to benefit
                                 from volatile market movements
                             –   Flexible investment mandate of maximum 10% of portfolio that allows for resource allocation
                                 to global markets that provide the best investment opportunities




6
                  The Mayur Hedge Fund – Structure




                                              Investment Manager
                                       Mayur Asset
                                       Management
                                        Company
                                           Mauritius
                                      (100% owned by GIH)



    The Sponsor   Global Investment                                 The Mayur     The Advisor
                       House                                       Fund Advisor
                        Kuwait



                                 The Mayur Hedge Fund
                                          Mauritius

7
                                          The Mayur Hedge Fund
                                          Investment Process


              Decisions for hold/exit are made based on                                  BSE 200 Stocks
              the following criteria:                                                    Market Cap range between US$ 0.15 to
              Difference between the intrinsic value                                     62.33 billion as on 01/31/2010
              and market price                                                           High Liquidity

                                                           HOLD/ EXIT     INVESTABLE
                                                           DECISION        UNIVERSE

     Asset diversification minimizes long term
      risk
     Permanently controlling and measuring                                                         Proprietary screens
      short term risk                                  RISK        INVESTMENT
                                                    CONTROL &                       STOCK           Efficient growth at reasonable price
     Portfolio characteristics reports                              PROCESS      SCREENING          (egarp)
                                                    MONITORING
     Comparison of performance against                                                             Quantitative and qualitative screens
      benchmarks
     Attribution analysis

                                                             PORTFOLIO        DUE
                                                           CONSTRUCTION   DILLIGENCE


            Decisions for buying stock for portfolio are                               Individual stocks are judged on following criteria:
            made based on the following criteria:                                       Manager competence
             Difference between the intrinsic value and                                Corporate governance
              market price                                                              Growth opportunities
             Defining the portfolio structure/benchmark                                Global competitiveness
             Bottom-up stock selection                                                 Cashflows and capital efficiency




8
                                            The Mayur Hedge Fund
                                            Risk Management

                    Constituents of BSE 200 index
                    Market Cap range US$ 0.15 – 62.33 billion
                                                                                                    Focus on fundamentals, market cap &
                                                                   Investment                        Liquidity
                                                                    Universe                        Diversified by industries, geographies
                                                                                                     and security type
 Price decline triggers review of stock                                                            Exposure based on individual and
 Analysis of fundamental and other                                                                  weighted average beta
  factors causing price decline



                                            Review                                           Fund
                                            Points                                         Exposure


                                                                     Risk
                                                                  Management



 Unlevered portfolio
 Borrowing includes margin lending,
  futures, forwards & options
 Continuous monitoring of liquidity risk
                                                                                              Net long exposure between 25% to 75%
                                                      Portfolio                 Exposure      Additional exposure limits to minimize risk
                                                      Liquidity                  Limits         10% limit per single name
                                                                                                25% net exposure limit per sector
                                                                                                30% net exposure to mid & small caps
                                                                                              Tactically switching to cash from time to time


9
                                                                       9
                                                 India Story: Leading Indicators Improving

     Lead Indicators Optimistic                            Indicators                    Sector    Signals                                        Comments

                                                                              Overall economic
                                                 GDP                                               Positive   GDP growth to be strong for year ending March 2011
                                                                              activity

                                                                                                              The core sector (crude oil, petroleum products, cement, coal, steel and electricity)
                                                 Industrial production        Industry             Positive
                                                                                                              registered a 4.8% growth between April and December 2009

                                                                                                              Strong credit off-take during November 2009 end December 2009, nearly four
                                                 Credit                       Industry, services   Positive
                                                                                                              times than the corresponding period last year


                                                 Capital raised               Industry             Positive   India Inc raised over US$ 32.2 billion in 2009, almost equal to the levels of 2008


                                                 Business confidence
                                                                              Industry, services   Positive   Business confidence index continued on the upward trajectory
                                                 index

                                                 Earnings                     Industry, services   Positive   Analysts upgrades to continue on an overall basis

                                                                                                              According to Society of Indian Automobile Manufacturers (SIAM), there was a
                                                 Consumer demand              Industry, services   Positive
                                                                                                              record automobile sales of 1.11 million units in January in 2010

                                                 Construction                 Industry, services   Positive   Robust housing demand in coming quarters

                                                 Traffic                      Industry             Positive   Indian domestic aviation market has expanded 7.5% in 2009 from 2008.


                                                                                                              The number of telephone subscribers in India increased to 562.21 million at the
                                                 Telecom subscribers          Services             Positive   end of December 2009 from 543.20 million in November 2009, thereby registering
                                                                                                              a month-on-month growth rate of 3.50%


                                                                                                              Outstanding bank credit to agriculture has risen by over 2.5 times between FY05-
                                                 Bank credit to agriculture   Agriculture          Positive
                                                                                                              09
Source: Economic Times, Reserve Bank of India,
Industry Associations                                                                                         OECD composite leading indicators continue to point to a recovery in OECD
                                                 OECD lead indicator          Industry, services   Positive
                                                                                                              economies including India


10
                                                  Sensex Valuation: Expensive but Not Peaked Yet

                                          Sensex Valuation: We are almost at the top end of historic range…
                                             PE Table                                                                             PB Table

                           FY2005     FY2006      FY2007    FY2008     FY2009    FY2010*                      FY2005     FY2006        FY2007     FY2008     FY2009     FY2010*

     Max                   18.61x     23.13x      27.85x     28.57x    22.39x    22.68x    Max                 4.52x      5.61x         6.76x      6.93x      4.18x      4.25x

     Min                   14.40x     16.29x      18.94x     10.36x    11.48x    20.03x    Min                 3.48x      3.84x         4.55x      2.20x      2.26x      3.67x


     *YTD                                                                                  *YTD



            29x
                                                                                                  7x


            25x
                                                                                                  6x


            21x




                                                                                           P/B
                                                                                                  5x
      P/E




            16x

                                                                                                  3x

            12x

                                                                                                  2x
                                                                                                   Jan-04   Jan-05     Jan-06      Jan-07       Jan-08     Jan-09     Jan-10
             8x
              Jan-04   Jan-05       Jan-06     Jan-07      Jan-08     Jan-09    Jan-10


Source: Reuters 3000xtra


11
                                                                     FIIs Continue to Remain Optimistic

                             FIIs Net Flow: Jan, 2009 – Jan, 2010                                                                       FIIs: Position Size in Top 10 Stocks
                                                                                                                       Position as at                         Dec-09           Sep-09

                     6000                              4,145                                                           Infosys Technologies                  11.29%            10.32%
                                                                                 3,811
                     5000
                                                                                                                       Reliance Industries                   10.05%            11.43%
                     4000
                                                                                         1,948
                                                                                                         2,199         ICICI Bank                             8.72%            9.39%
                     3000                                            2,284
     FIIs Net Flow




                                               1,301                                             1,183
       (US$ mn)




                     2000                                                    1,008                                     HDFC                                   6.22%            6.77%
                                                               824
                                         114
                     1000                                                                                              HDFC Bank                              4.86%            4.71%
                        0
                                                                                                                       Sterlite Industries (India) Limited    3.00%            2.83%
                     -1000                                                                                       -94
                                                                                                                       Bharti                                 2.99%            4.45%
                     -2000   -868 -489

                     -3000                                                                                             SBI                                    2.96%            2.61%
                             Jan- Feb- Mar- Apr- May- Jun-           Jul- Aug- Sep- Oct- Nov- Dec- Jan-
                              09   09   09   09   09   09             09   09   09   09   09   09   10                 Larsen & Toubro                        2.66%            2.66%

                                                                                                                       Bharat Heavy Electricals               2.49%            2.78%


  FIIs confidence back to the Indian market and continue to show appetite for quality stocks
  Positive data points (on GDP, earnings growth) that are likely to attract institutional inflows

 Sources: Security Exchange Board of India (SEBI), National Stock Exchange (NSE), India




12
                                                              Mayur Hedge Fund
                                                              Track Record – Jan 2008 to Dec 2010

     36.0%                                                                                                                      Mayur Monthly Return                                   10.0%
                                                                                                                                                               8.10%
                                                                                                                                Mayur Cumulative Return                                8.0%
     30.0%
                                                                                                                                         5.66%
                                                 Simulated Returns                                              4.65%                                                                  6.0%
     24.0%                                                                                      4.28%                                                               4.42%
                                                                                                        3.58%
       Cumulative Return




                                                                                                                                                                                                        Monthly Return
                                                  2.60%                                                                   2.51%                     2.51%                              4.0%
     18.0%                            2.19%                                                                                                 1.87%                            2.19%
                            1.61%                      1.13%                                1.12%
                                                                                        1.31%                            1.28%                                                         2.0%
                                         0.44%
     12.0%
                                                                                                                                                                                       0.0%
       6.0%                     -0.07%
                           -0.35%                              -0.06%                                                              -0.12%              -0.05%
                                                -1.04%                 -0.61%
                                                                   -0.73%                                 -0.71%-0.95%                                     -0.90%                      -2.0%
                                                       -1.47%
       0.0%                                                               -2.36%                                                -2.76%                                                 -4.0%
                                                           -3.82%                                   -3.16%
      -6.0%                                                                                                                                      -4.63%                 -4.82%         -6.0%




                                                           Mayur            Eurekahedge India L/S                                                             Mayur            Eurekahedge India L/S
     Return Statistics                                                                                           Risk Statistics
                                                           Fund                 Equities Index                                                                Fund                 Equities Index

     Annualized Return                                      9.82%                       28.44%                   Annualized Standard Deviation                10.92%                    26.69%

     Average Monthly Return                                 0.83%                       2.27%                    Maximum Drawdown                             -4.82%                     -7.99%

     Best Month                                             8.10%                       23.82%                   Sharpe Ratio                                   0.47                       1.05

     Worst Month                                           -4.82%                       -5.68%                   Beta                                           0.19

     % Positive Months                                     50.00%                       61.9%                    Correlation                                    0.71

                           * Actual Data from Nov 2008 till Dec 2010
                           * Eurekahedge India Long / Short Equities Hedge Fund Index
Note: Performance data for Mayur India Fund for Nov-07 to Oct-08 period is for a simulated portfolio. Performance streams incorporate proxy account data on the underlying managers which may in some
instances differ from the precise mandate to be used within the Multi Alpha portfolio. As ever past performance should not be seen as an indication of future performance.

Sources: Eurekahedge

13
                                                     Mayur Hedge Fund
                                                     Drawdowns Analysis




    Unlike its peer funds, The Mayur Hedge Fund has put a huge emphasis on limiting drawdown in a highly volatile market
     during 2008
    This strategy has helped The Mayur Hedge Fund in capital preservation throughout this volatile period

Note: Performance data for Mayur India Fund for Nov-07 to Nov-08 period is for a simulated portfolio. Performance streams incorporate proxy account data on the underlying managers which may in some
instances differ from the precise mandate to be used within the Multi Alpha portfolio. As ever past performance should not be seen as an indication of future performance.
Sources: Eurekahedge, Evalueserve analysis




14
                                      Investment Rationale – Why Mayur?

–    Synergies of Global Investment House fund management experience




                                                                                                                Active Risk
     Advantage Mayur Investors              Dynamic Portfolio             Experience On The Ground
                                                                                                           Management & Reporting
      First INDIA dedicated direct     Deep sector and industry          Experienced investment          On going monitoring and
       hedge fund launched by            insights                           management team                  rebalancing
       Global Investment House
                                        Strong fundamentals and           Prominent external advisors     Internal and external
      Presents a good way to            reasonable valuations              with extensive contact base      valuations
       diversify from the GCC                                               in Indian corporate
                                        Dynamic hedging strategies                                         On time monthly reporting
       markets
                                         to offset impact of volatility    Long and successful track
                                                                                                            Investments in highly liquid
      Provides a natural hedge                                             record with in-house
                                                                                                             stocks with a 10% limit on a
       against any downward trend                                           expertise in managing funds
                                                                                                             single stock
       in oil prices
                                                                           Managed through multiple
      India is an emerging market                                          cycles, locally and globally
       that will continue to show                                           skilled
       relative outperformance and
                                                                           Global investment expertise,
       bottom up investment
                                                                            local implementation
       opportunities
                                                                           Existing research base with
      Transparency and frequent
                                                                            wide coverage of Indian
       communication through
                                                                            markets
       direct client contact




15
                                          Investment Committee




         BADER A. AL-SUMAIT                        RAJIV NAKANI, CFA                          JOSEPH JOSEPH                          RAJESH GEORGE, CFA
     Chief Executive Officer, Global         Managing Partner, Global Capital            Head of Hedge Funds, Global              Fund Manager, (AVP) Global
          Investment House, Kuwait               Management Limited                           Investment House                       Investment House, Kuwait

 Bader has over 29 years of experience    Rajiv has over 16 years of professional    Over 14 years of experience in hedge
 in asset management, banking and         experience in investment banking and       funds, private equity and corporate     Over 18 years of business/asset
 finance. Before co-founding Global in    brings along in-depth sector experience    finance. He currently heads the group   management experience spanning over
 1998, he was the General Manager of      in financial services, telecom, media,     responsible for hedge funds / private   different geographies which includes
 the Arab Financial Consultant Company.   retail, logistics, healthcare, education   equities portfolios and external fund   South Asia, GCC and North America.
 Bader received his Bachelors degree      and real estate. Prior to joining Global   manager selection in excess of USD      Currently the fund manager for several
 from Chapman University in the USA.      Investment       House,     Rajiv    was   250 million. He has completed several   fund of hedge funds. Apart from the
 Bader also holds several important       Investment Director at Eastgate Capital    equity transactions primarily in the    Hedge Funds he also manages a pool
 positions including Chairmanship and     Group managing US$ 500 million in          GCC/MENA region and also other          of private equity fund of funds. He took
 Board membership of local and regional   private equity funds, investing across     emerging markets such as India and      the lead in creating and promoting
 institutions among which is his          Asia and Africa. Earlier, Mr. Nakani was   China. He sits on the investment        various structured products catering to
 membership of the listing committee of   the Head of Investment Banking at          committee of Global's private equity    the GCC investors. Prior to joining
 NASDAQ Dubai.                            Global Investment House in Kuwait. He      funds which collectively has over US$   Global Investment House, he was
                                          received his MBA with specialization in    2.0 billion assets under management.    working as Senior Financial Analyst at
                                          Econometrics        and     Mathematical   He has a degree in Engineering and an   Sun Life Financial in Canada. He has
                                          Economics, and BSc in Mathematics          MBA from T.A. Pai Management            an MBA from Wilfrid Laurier University
                                          degrees all from the University of         Institute, India.                       in    Canada      and    Bachelors     in
                                          Indore, India. Mr. Nakani is also a CFA                                            engineering     in    Electronics    and
                                          charter holder since 2001.                                                         Telecommunication        from     Kerala
                                                                                                                             University in India. He is also a CFA
                                                                                                                             charter holder.


16
                                         Advisory Team




                          DILEEP MADGAVKAR                                                               SANDEEP CHOPRA
                            Head, Funds Advisory,                                                          Sr. Investment Analyst
                            The Mayur Hedge Fund



 Dileep is a qualified as a chartered accountant in India and was formerly       Sandeep has close to 5 years of experience in the Indian equities spanning
 Chief Investment Officer of ICICI Prudential Asset Management Co. Ltd.,         hedge fund and sell-side research. He has worked with some of the best
 one of India’s largest mutual funds, and has managed Indian funds with          research houses in India and has provided the domestic and overseas
 assets under management in excess of US$4 billion. From ICICI                   institutional investors with the research inputs on various investment
 Prudential, Dileep moved to Prudential Asset Management in Hong Kong            opportunities arising from time to time in the secondary market. Prior to
 as Investment Director.                                                         joining Global, he was with B&K Securities India tracking and advising
                                                                                 clients on various listed stocks in the Indian banking and financial services
 Dileep has over 20 years work experience in bull & bear markets; he has         space. He has a graduate degree in management and an MBA from ICFAI-
 traded through the Asian contagion. Strong track record in the Indian           Hyderabad, India.
 market not just during the recent bull run but also during periods of decline
 and non-trending markets.
 Dileep has extensive on-the-ground experience of corporate fundamental
 research and has known many businesses and their management for a
 significant period of time to assess their performance over a number of
 business cycles.


17
                                     Term Sheet

     Fund Name                                    The Mayur Hedge Fund
     Initial Minimum Investment                   US$250,000

     Subsequent Minimum Investment                US$100,000

     Subscription                                 Monthly

     Redemption                                   Quarterly

     Redemption Notice                            45 Days

     Reporting NAV                                Monthly

     Lock-Up Period                               1 year from date of investment
     Management Fee                               2%

     Performance Fee                              20% (High Water Mark)

     Subscription Fee                             Up to US$499,999 2.0%
                                                  Up to US$999,999 1.5%
                                                  Above US$1,000,000 1.0%
     Redemption Fee                               None
     Legal Structure                              Open ended expert fund domiciled in Mauritius

     Auditor                                      KPMG, Mauritius




18
     Appendix




19
                                 Investment Example

                                   Dr Reddy’s Laboratories – Bloomberg Ticker: DRRD
 About the company                                               1,400                                                                                                                                                                                                               2,500,000

 DRRD, headquartered in India, is a global pharmaceutical        1,200
                                                                                                                                                                                                                                                                                     2,000,000
 company with a presence in more than 100 countries and is       1,000
                                                                  800                                                                                                                                                                                                                1,500,000
 second largest pharmaceuticals company in India with US$
                                                                  600
 1.4 billion of sales in FY09. It started off as a pure Active                                                                                                                                                                                                                       1,000,000
                                                                  400
 Pharmaceutical Ingredient (API) player, but graduated to                                                                                                                                                                                                                            500,000
                                                                  200
 become a major player in the formulations market which
                                                                    -                                                                                                                                                                                                                -
 accounted for ~70% of the FY09 revenue. DRRD has set itself




                                                                                                                                                                                                                                                                         01-Apr-10
                                                                                                                         01-Apr-09




                                                                                                                                                                                                 01-Oct-09
                                                                                                                                                                                     01-Sep-09
                                                                         01-Dec-08




                                                                                                                                                                         01-Aug-09




                                                                                                                                                                                                             01-Nov-09
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                                                                                     01-Jan-09




                                                                                                                                                 01-Jun-09




                                                                                                                                                                                                                                     01-Jan-10
                                                                                                                                                             01-Jul-09
                                                                                                                                     01-May-09
                                                                                                 01-Feb-09
                                                                                                             01-Mar-09




                                                                                                                                                                                                                                                 01-Feb-10
                                                                                                                                                                                                                                                             01-Mar-10
 an internal target of US$ 3billion revenues and ROCE of 25%
 by FY13E.
                                                                                                                                       Total Traded Quantity                                                       Close Price



 Investment rationale                                             Valuations
  Recovery in Indian operations, acceleration of new              At the time of investment the stock was trading at 10-11x
    product introduction, and entering new key domestic             FY10E earnings with Bloomberg consensus EPS of INR
    geographies to lead strong base business growth                 39 (US$ 0.82) as against 14-15x for sector, remain one of
  Strength of product pipeline in US as a key differentiator       the lowest among large-scale pharma companies
    from its Indian peers                                          Since then, consensus EPS has moved up by ~20% to
  Few key approvals from USFDA to provide sales upside             INR 48 (US$ 1.02) for FY10E on the back of strong
  Headwinds in Betapharm already factored in the price             performance in 1HFY10
  Improving capital efficiency due to rapid sales growth and      Stabilization at business at Betapharm, growth picking up
    improving profitability in key markets aiming 25% RoCE          in Indian operations and strong pipeline of filings have
    for FY13                                                        also led to re-rating of the stock in terms of expansion of
                                                                    PE multiple
20
                                 Investment Example

                                   HCL Technologies Limited – Bloomberg Ticker: HCLT
 About the company
                                                                    450                                                                                                                                                                                                                                                                                                   8,000,000
 HCLT is the India’s fifth-largest IT services company. It          400                                                                                                                                                                                                                                                                                                   7,000,000
 provides software-led IT solutions, remote infrastructure          350                                                                                                                                                                                                                                                                                                   6,000,000
 management, and BPO services. The company leverages its            300
                                                                                                                                                                                                                                                                                                                                                                          5,000,000
                                                                    250
 extensive offshore infrastructure and global network of offices    200
                                                                                                                                                                                                                                                                                                                                                                          4,000,000
 in 16 countries to deliver solutions across select verticals,      150
                                                                                                                                                                                                                                                                                                                                                                          3,000,000
 including financial services, retail and consumer, life sciences   100                                                                                                                                                                                                                                                                                                   2,000,000
 aerospace, automotive, semiconductors, telecom and media            50                                                                                                                                                                                                                                                                                                   1,000,000

 publishing, and entertainment. HCLT has ~350 clients across         -                                                                                                                                                                                                                                                                                                    -




                                                                                                                                      16-Mar-09




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                                                                                                                                                                                                                                                                                                                                      15-Feb-10
                                                                                                                                                                                                                                                  21-Sep-09
 verticals and a workforce of more than 50,000.

                                                                                                                                                                          Total Traded Quantity                                                                                       Close Price
 Investment rationale
  HCLT’s transformation strategy for creating value centric         Valuations
    sustainable business model for its clients has placed it on
                                                                      At the time of purchase, the stock traded at 10.5x FY09E
    the “vendor to watch” list of Gartner’s
                                                                       and 11.8 FY10E EPS consensus estimates (June year
  First mover advantage by moving into uncontested market             ending) and was trading at ~35-40% discount to large
    spaces such as infrastructure management, life sciences            Indian IT services company with similar business profile.
    vertical etc.
                                                                      Our estimate of earnings was significantly higher than
  The recent AXON acquisition helps HCLT in filling up the            consensus. We believed the company would not only
    gap in Enterprise Application Services                             benefit from the higher than expected earnings but also a
  Indian IT services companies have seen some signs of                significant PE re-rating It also offered an attractive
    stabilization in the form of fewer project deferrals, fewer        dividend yield of 3% for FY10E at the time of purchase.
    pricing negotiations and visits from new clients
21
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22
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23
                                   Global Contacts


                                                       Kuwait (Head Office): (965) 2295 1000

                                   Bahrain                        UAE                              KSA

                                   Manama:     (973) 17 210011    Dubai:         (971) 4 4477066   Riyadh:   (966) 1 2994100


     Global is pleased to serve
      you in through its offices   Jordan                         Egypt
                       network     Amman:      (962) 6 5005060    Cairo:        (202) 24189705/6
                                                                  Alexandria:     (203) 5419000


                                   Turkey

                                   Istanbul:   (90) 212 2367751




24

								
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