indian ceramic industry

8/6/2019 Indian Ceramic Industry

http://slidepdf.com/reader/full/indian-ceramic-industry 1/30

&RQWHQWV

Sr. No. Topic Page No.

1 Preface 1

2 Executive Summary 2

3 Introduction 5

4 Global Scenario 6

5 Indian Ceramic Tile Industry 9

6 4Ps of Marketing for Indian Ceramic Industry… 13

7 India’s Trade Performance for Ceramic Products 15

8 Analysis of India’s export potential 17

9 Some Recent Issues 21

10 Government Support 23

11 Problems faced by Indian Ceramic Industry 25

12 Industry Voices… 26

13 Conclusion 27

14 Reference… 28



1

3UHIDFH

(YHU\ PRQWK ZH UHDG QHZV RQ FDSDFLW\ H[SDQVLRQ RI PDQ\ FHUDPLF

FRPSDQLHV7KLVLVREYLRXVEHFDXVH,QGLDLV WKHWKODUJHVWFRQVXPHURIFHUDPLFWLOHVDQGWKHWKODUJHVWPDQXIDFWXUHURIWKLVSURGXFW7KLV UHSRUW HQWDLOV DQ RYHUYLHZ RI WKH ,QGLDQ FHUDPLF LQGXVWU\ ZLWKPRUHHPSKDVLVRQWKHH[SRUWSRWHQWLDORIFHUDPLFVWKHFKDOOHQJHVIDFHGE\VPDOOSOD\HUVDWPDUNHWVRYHUVHDVDQGVXSSRUWRIJRYHUQPHQWLQWKLVUHJDUG7KHUHSRUWLVUHVXOWRIH[KDXVWLYHYLVLWVRIWKHFHUDPLFWLOHVDQGVDQLWDU\ZDUHXQLWVRIERWK0RUELDQG+LPPDWQDJDU

:KLOH PDNLQJ WKLV UHSRUW , DOVR PHW YDULRXV $VVRFLDWLRQV RI WKLVLQGXVWU\ 7KH\ JDYHPH IDUHYLHZ RI KRZ WKH\ JLYH D SODWIRUP WR WKHGRPHVWLFPDQXIDFWXUHUVWRVWDQGWDOODJDLQVWWKHVWLIISULFHZDURI&KLQD,KDYHJLYHQPRUHHPSKDVLVWRFHUDPLFWLOHVEHFDXVHRIWKHIDFWWKDWWKH\FRQVWLWXWH D ELJ FKXQN RI WKH WRWDO H[SRUWV $SDUW IURP WLOHV ,QGLDQVDQLWDU\ZDUHVKDVDOVRJRWIDPHDFURVVWKHERUGHUV7KH NXGRV WR IXUQLVK WKLV UHSRUW JRHV WR YDULRXV HQWUHSUHQHXUV RI

*XMDUDW ZKR KDYH JLYHQ PH WKHLU SUHFLRXV WLPH WR DFFRPSOLVK WKHPLVVLQJEORFNVRILQIRUPDWLRQLQWKLVZRUN :KHQ , VWDUWHG , ZDV RQFH GLVDSSRLQWHG EHFDXVH QR RQH KDV ZULWWHQDERXW WKLV ZHDOWK FUHDWLQJ LQGXVWU\ RI *XMDUDW %XW ELW E\ ELW DOOLQIRUPDWLRQZDVGXJRXWIURPYDULRXVLQGXVWULDOVRXUFHV



2

([HFXWLYH6XPPDU\,QWURGXFWLRQ

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

&HUDPLF LQGXVWU\ FDQ EH FODVVLILHG LQWR WKUHH VHJPHQWV ZDOO WLOHVVHJPHQW IORRU WLOH VHJPHQW DQG YLWULILHG SRUFHODLQ WLOH VHJPHQW3UHVHQWO\LQ,QGLDWKHPDUNHWVKDUHRIWKHVHVHJPHQWVDUHDQGUHVSHFWLYHO\7KH RUJDQL]HG VHFWRU LV FKDUDFWHUL]HG E\ WKH H[LVWHQFH RI D IHZ ODUJHSOD\HUV HJ +5 -RKQVRQ .DMDULD &HUDPLFV 63/ 6SDUWHN DQG0XUXGHVKZDU&HUDPLFVWRQDPHDIHZ,QWKHGRPHVWLFPDUNHWRIFHUDPLFPDUNHW +5 -RKQVRQ LV WKH OHDGHU IROORZHG E\ .DMDULD &HUDPLFV ZLWK

PDUNHWVKDUHVRIDQGUHVSHFWLYHO\*OREDO6FHQDULR:RUOGSURGXFWLRQRIFHUDPLFWLOHVZDVPLOOLRQVTPWLQ&KLQDZDV WKH ODUJHVW SURGXFHU ZLWK D WRWDOSURGXFWLRQ RI PLOOLRQ VTPW6SDLQDQG,WDO\ZHUHRWKHUPDMRUSURGXFHUVZLWKSURGXFWLRQRIPLOOLRQVTPWDQGPLOOLRQVTPWUHVSHFWLYHO\,QGLDUDQNVDW WKSRVLWLRQZLWKSURGXFWLRQ RI PLOOLRQ VT PW ZKLFK LV DURXQG RI JOREDOSURGXFWLRQ +RZHYHU LQ WHUPV RI SURGXFWLRQ JURZWK ,QGLD UDQNHG QG

ZLWKD&$*5RI7RWDOZRUOGFRQVXPSWLRQLVPLOOLRQVTPWRIZKLFKLVWUDGHGJOREDOO\ DQG WKH UHVW EHLQJ VROG GRPHVWLFDOO\ &KLQD LV WKH ODUJHVWFRQVXPHU IROORZHG E\ %UD]LO DQG 6SDLQ ,QGLD UDQNHG WK LQ WHUPV RIFRQVXPSWLRQYROXPHEXWKDVKLJKHVWFRQVXPSWLRQJURZWKUDWHRISHUDQQXP



3

,QWHUPVRIH[SRUWV,WDO\UDQNHG VWLQWKHZRUOG,Q,WDO\H[SRUWHGPLOOLRQVTPWRIFHUDPLFWLOHVWKLVLVRIZRUOGFRQVXPSWLRQ6SDLQDQG&KLQDZHUHWKHQGDQGUG ODUJHVWH[SRUWHUV ,QUHFHQW \HDUV&KLQD·VH[SRUWKDVLQFUHDVHGDWDPXFKIDVWHUSDFHWKDQRWKHUV,QWHUPVRILPSRUWV86$ZDVWKHODUJHVWLPSRUWHUZLWKDQLPSRUWYROXPHRIPQ6TPWZKLFKLVDURXQGRIJOREDOLPSRUW*HUPDQ\DQG)UDQFHDUHWKHWZRRWKHUPDMRULPSRUWHUVRIFHUDPLFWLOHV86$*HUPDQ\DQG)UDQFHMRLQWO\LPSRUWVDURXQGRIWRWDOZRUOGLPSRUWV,QGLDQ7LOH,QGXVWU\7KH FHUDPLF WLOHV LQGXVWU\ LQ ,QGLD HPHUJHG VLQFHV 7KH LQGXVWU\ LV

FKDUDFWHUL]HGE\IHZSOD\HUVLQWKHRUJDQL]HGVHFWRUDQGDODUJHQXPEHURISOD\HUVLQWKHXQRUJDQL]HGVHJPHQW7KHLQGXVWU\KROGVDVKDUHRILQJOREDO SURGXFWLRQ 7KRXJK ,QGLD KROGV D PLQXVFXOH VKDUH RI RIJOREDOWUDGHRIFHUDPLFSURGXFWVLQ,QGLDPDMRUO\H[SRUWHGWR6DXGL$UDELD8.DQG8$(DQGLPSRUWHGIURP&KLQDDQG*HUPDQ\,QGLD·V2SSRUWXQLWLHV)RXUGLIIHUHQWSURGXFWJURXSVDUHLGHQWLILHGDVLWHPVRIKLJKGHPDQGIRUH[SRUWV«3URGXFW*URXS 0DUNHWV 3RWHQWLDO

PDUNHWV

*OD]HGFHUDPLFWLOHV 4DWDU 6DXGL $UDELD 6UL/DQND

*HUPDQ\)UDQFH

&HUDPLFKRXVHKROGDUWLFOHV

8. 8.

2UQDPHQWDO FHUDPLFSURGXFWV

86$ 86$

8QJOD]HGFHUDPLFWLOHV 8$(6DXGL$UDELD8.6UL/DQND

8.*HUPDQ\

6RPH&RQFHUQV)RU VRPH WLPH QRZ ,QGLDQ FHUDPLFWLOH PDQXIDFWXUHUV DUH EHVLHJHG ZLWKWKH SUREOHP RI ORZ PDUJLQ DQG IDOOLQJ SURILWDELOLW\ 2QH RI WKH UHDVRQV



4

EHKLQGWKLVLVWKHGXPSLQJRIYLWULILHGWLOHVLQWR,QGLDQPDUNHWE\FRXQWULHVVXFKDV&KLQD,QGRQHVLD6UL/DQND0DOD\VLDDQG8$(/DVW\HDUQHDUO\5VFURUHZRUWKRILPSRUWHGWLOHVZHUHGXPSHGLQWR,QGLD7KLV SUREOHP KDV UHFHQWO\ EHHQ LQWHQVLILHG EHFDXVH RI WKH &KLQD·V HQWU\LQWRWKH%DQJNRNDJUHHPHQWZKLFKZDVGHYHORSHGZLWKDYLHZWRSURPRWHIUHH WUDGH DPRQJ 6RXWK (DVW $VLDQ FRXQWULHV (QWU\ RI &KLQD LQ WKH%DQJNRNDJUHHPHQWKDVUHVXOWHGLQODUJHLPSRUWIURP&KLQDDVXQGHUWKLVDJUHHPHQW &KLQHVH JRRGV DWWUDFWD GXW\ RI DV DJDLQVW GXW\RQLPSRUWIURPRWKHUFRXQWULHV7KLVVHHPVWRDIIHFWWKHGRPHVWLFSURGXFHUVVHYHUHO\$QRWKHU PDMRU SUREOHP IRU WKH LQGXVWU\ LV WKH ULVLQJ FRVWV RIPDQXIDFWXULQJGXHWRLQFUHDVHLQSULFHVRIUDZPDWHULDOVVXFKDV]LUFRQLXP

DQGWLWDQLXP7KH SHWUROHXP SULFH KLNH KDV DOVR DIIHFWHG WKH LQGXVWU\ WKRXJK LQ DQLQGLUHFWPDQQHU%HFDXVHRIWKHVXEVWDQWLDOEXONRIWKHPDWHULDOFHUDPLFWLOH DFFUXHV YHU\ KLJK IUHLJKW HOHPHQW 5LVH LQ WKH SHWUROHXP SULFHVLQFUHDVHVWKLVFRVWVXEVWDQWLDOO\2QWKHRWKHUZD\EHFDXVHRIWKHLPSRUWFRPSHWLWLRQIURP&KLQDGRPHVWLFWLOHPDQXIDFWXUHUVFDQQRWLQFUHDVHWKHLUSULFH7KLVGLUHFWO\UHGXFHVWKHLUVDOHVDQGSURILWDELOLW\IXUWKHU

)XWXUH2XWORRN3URVSHFWRIFHUDPLFLQGXVWU\KHDYLO\GHSHQGVRQFRQVWUXFWLRQDFWLYLWLHV,Q,QGLD WKH FRQVWUXFWLRQ VHFWRU LV H[SHFWHGWR GR ZHOO PDLQO\ GXH WR ILVFDOLQFHQWLYHVJLYHQWRWKHLQIUDVWUXFWXUHGHYHORSPHQW$SDUWIURPWKLVWKHKRXVLQJVHFWRULVDOVRH[SHFWHGWRJURZEHFDXVHRIORZLQWHUHVW UDWHV RQ KRXVLQJ ORDQV 7KXV WKH IXWXUH SURVSHFW RI WKH ,QGLDQFHUDPLFLQGXVWU\VHHPVWREHEULJKW



5

,QWURGXFWLRQ7KH ZRUG FHUDPLF GHULYHV LWV QDPH IURP WKH *UHHN ZRUG NHUDPRVPHDQLQJ ´SRWWHU\µ 7KH ZRUG ZDV XVHG WR UHIHU WR D SURGXFW REWDLQHG

WKURXJKWKHDFWLRQRI ILUHXSRQHDUWK\PDWHULDOV7KHFHUDPLFLQGXVWU\LQ,QGLDLVDERXW\HDUVROGDQGIRUPVDVL]HDEOHLQGXVWULDOEDVHDWSUHVHQW&HUDPLFWLOHVDUHPDQXIDFWXUHGERWKLQODUJHDQGVPDOOVHFWRUVZLWKZLGHYDULDQFHLQW\SHVL]HDQGVWDQGDUGV7KHUHDUHJODVVDQGFHUDPLFLWHPVIRUZKLFKWKHVPDOOVFDOHVHFWRUKDVH[FOXVLYHSURGXFWLRQULJKW7DEOHZDUHDQG DOOLHG LWHPV QDPHO\ GLQQHU VHWV WHD VHWV FXSV DQG VDXFHUV MDUV LQVWRQHZDUHVHPLYLWUHRXVZDUHDQG HDUWKHQZDUHDUH UHVHUYHGIRU WKH 66,VHFWRU

6WDWH RI WKH DUW FHUDPLF JRRGV DUH PDQXIDFWXUHG LQ WKH FRXQWU\ DQG WKHWHFKQRORJ\ DGRSWHG E\ WKH ,QGLDQ FHUDPLF LQGXVWU\ LV RI LQWHUQDWLRQDOVWDQGDUG7KH FHUDPLF VHFWRU PDLQO\ FRQVLVWV RI PDLQO\ WKUHH VXE VHFWRUV QDPHO\FHUDPLFWLOHVVDQLWDU\ZDUHDQGFURFNHU\LWHPV$EULHIGHVFULSWLRQRIHDFKRIWKHVHVXEVHFWRUVLVSUHVHQWHGEHORZ«

&HUDPLFWLOHVVHFWRU«7KHUHDUHXQLWVLQWKHRUJDQL]HGVHFWRUDQG

XQLWVLQWKHXQRUJDQL]HGVHFWRUPDQXIDFWXULQJFHUDPLFZDOOWLOHVIORRUWLOHV DQG YLWULILHG WLOHV 7KH SURGXFWLRQ RI RUJDQL]HG VHFWRU LV PLOOLRQVTXDUHPHWUHSHUDQQXP:KLOHWKHSURGXFWLRQRIWKHXQRUJDQL]HGVHFWRULVPLOOLRQVTXDUHPHWUHSHUDQQXP,QGLDDFFRXQWVIRUQHDUO\RIWKHZRUOGSURGXFWLRQ7KHGRPHVWLFFHUDPLFWLOHLQGXVWU\LVJURZLQJDWDUDWHRISHUDQQXP(VWLPDWHG VL]H RI WKH FHUDPLF LQGXVWU\ LV DSSUR[ 5V FURUH RXW RIZKLFKWKHVKDUHRI66,VHFWRULVDURXQG5VFURUH

,Q ,QGLD WKH SHU FDSLWD FHUDPLF WLOH FRQVXPSWLRQ LV VTPWSD DVFRPSDUHG WR VTPW LQ &KLQD DQG VTPW LQ (XURSHDQ FRXQWULHV ,WVGHPDQG LV H[SHFWHG WR LQFUHDVH ZLWK WKH JURZWK LQ WKH KRXVLQJ VHFWRU,QGLDQ WLOHV DUH FRPSHWLWLYH LQ WKH LQWHUQDWLRQDO PDUNHW 7KH\ DUH EHLQJH[SRUWHGWRHDVWDQGZHVW$VLDQFRXQWULHV



6

6DQLWDU\ZDUH« 6DQLWDU\ ZDUH LV PDQXIDFWXUHG ERWK LQ ODUJH DQGVPDOOVHFWRUVZLWKZLGHYDULDQFHLQW\SHUDQJHTXDOLW\DQGVWDQGDUG7KLVLQGXVWU\KDVEHHQJURZLQJE\DURXQGSHUDQQXPGXULQJWKHODVWWZR\HDUV6DQLWDU\ZDUHLWHPVDUHSUHVHQWO\EHLQJH[SRUWHGWR(DVWDQG:HVW$VLD$IULFD(XURSHDQG&DQDGD

3RWWHU\«3RWWHU\ZDUHVXFKDVFURFNHU\DQGWDEOHZDUHLVSURGXFHGERWK LQ RUJDQL]HG DQG XQRUJDQL]HG VHFWRUV 7KHUH DUH XQLWV LQ WKHRUJDQL]HG VHFWRU ZLWK D WRWDO LQVWDOOHG FDSDFLW\ RI WRQQHV SHUDQQXP%RQHFKLQDFURFNHU\ZDUHLVEHLQJLPSRUWHGIURP%DQJODGHVKDQG6UL/DQNDLQYLHZRIWKHEHWWHUDYDLODELOLW\RIUDZPDWHULDOWKHUH$PRQJWKHWKUHHVHJPHQWVRIFHUDPLFSURGXFWVPHQWLRQHGDERYHWKHWLOHVHJPHQWLVWKHODUJHVWRIDOO7KHUHVWRIP\UHSRUWZLOOFRQFHQWUDWHRQWKH

SUHVHQWVWDWXVRIFHUDPLFWLOHLQGXVWU\DQGVRPHLPSRUWDQWUHFHQWLVVXHV



7

*OREDO6FHQDULR

3URGXFWLRQ«&KLQD LV WKH ODUJHVW SURGXFHU DQG H[SRUWHU LQ $VLD,WDO\ DQG 6SDLQ DUH WKH WZR PRVW LPSRUWDQW SURGXFWLRQ FHQWHUV LQ (8

%UD]LO LV WKH ODUJHVW SURGXFHU LQ /DWLQ $PHULFD $PRQJ DOO WKH PDMRUSURGXFHUV &KLQD KDV DFKLHYHG PRVW UDSLG JURZWK LQ SURGXFWLRQ DQGH[SRUW +RZHYHU TXDOLW\ ZLVH ,WDO\ DQG 6SDLQ SURGXFH EHVW WLOHV LQ WKHZRUOG,WDOLDQFHUDPLFWLOHVDUHDOVRYHU\FRVWO\7KHFXUUHQWSULFHRI,WDOLDQWLOHV LV (XUR SHU VT PW ZKLFK LV KLJKHVW DPRQJ DOO SURGXFHUFRXQWULHV

7RSPDQXIDFWXULQJFRXQWULHV

5DQNLQJ &RXQWU\

3URGXFWLRQ

PLOOLRQVTPW RIZRUOGSURGXFWLRQ &KLQD 6SDLQ

,WDO\

%UD]LO

,QGRQHVLD 7XUNH\

0H[LFR

,QGLD

,UDQ 9LHWQDP

ZRUOG

&RQVXPSWLRQ«$VLDLVWKHODUJHVWFRQVXPHUZLWKDVKDUHRIRI

JOREDO FRQVXPSWLRQ (8 DQG 6RXWK $PHULFD DUH WKH WZR RWKHU PDMRUFRQVXPLQJDUHDVZLWKFRQVXPSWLRQVKDUHRIDQGUHVSHFWLYHO\

&KLQDWRSVWKHFRQVXPSWLRQOLVWZLWKGRPHVWLFFRQVXPSWLRQOHYHORI PLOOLRQ VTPW\HDU ZKLFK LVQHDUO\ WLPHVRI WKH FRQVXPSWLRQ RI

VHFRQGODUJHVWFRQVXPHU%UD]LO,QGLDUDQNVDW WKSRVLWLRQZLWKGRPHVWLFFRQVXPSWLRQ RI PLOOLRQ VTPW +RZHYHU WKH FRQVXPSWLRQ JURZWKUDWHVLQ,QGLDKDGD&$*5RIZKLFKLVKLJKHVWDPRQJWKHPDMRUFRQVXPLQJ FRXQWULHV DQG PXFK KLJKHU WKDQ WKH ZRUOG FRQVXPSWLRQJURZWKUDWHRI



8

7KLV PLJKW EHRQH RI WKH UHDVRQ WKDW ,QGLDQ FHUDPLF FRPSDQLHVFRQFHQWUDWHRQGRPHVWLFPDUNHWUDWKHU WKHQH[SRUW'HPDQGLQ,QGLDLVYHU\KXJKVRRQO\FRQFHUQLVWRIXOILOOWKDWGHPDQGLQGLJHQRXVO\

([SRUW« ,QGLD·V H[SRUW YROXPH LV PLQXVFXOH DQG ,QGLD GRHV QRWFRPHLQWKHOLVWRIWRSH[SRUWLQJQDWLRQV7KHWDEOHEHOORZVKRZVWKHWRSH[SRUWLQJFRXQWULHVLQWKLVLQGXVWU\«

7RS([SRUWLQJ&RXQWULHV

5DQNLQJ &RXQWU\([SRUWPLOOLRQ

VTPW([SRUWDVDRIZRUOG

FRQVXPSWLRQ ,WDO\

6SDLQ

&KLQD %UD]LO

7XUNH\ ,QGRQHVLD

8$(

0H[LFR

0DOD\VLD

3RUWXJDO

ZRUOG



9

,QGLDQ&HUDPLF7LOH,QGXVWU\

7KH,QGLDQWLOHLQGXVWU\FRQVLVWVRISOD\HUVLQWKHRUJDQL]HGVHFWRUDQGPRUHWKDQXQLWVLQXQRUJDQL]HGVHFWRU7KHWRWDOWXUQRYHURIWKH

RUJDQL]HGLQGXVWU\LVDURXQG5VFURUH7KH,QGLDQFHUDPLFWLOHLQGXVWU\HPSOR\VGLUHFWO\DQG

SURYLGHVSHUVRQVLQGLUHFWHPSOR\PHQW

7KHFHUDPLFWLOHPDNLQJSURFHVVKDVPDLQO\IRXUURXWHV«D 7XQQHO %LVTXLW DQG WXQQHO *ORVW )LULQJ ,W LV WKH ROGHVW

PDQXIDFWXULQJSURFHVVIRUWLOHV7KHDGYDQWDJHRIWKLVSURFHVVLVWKDWLWFDQKDQGOHYHU\VPDOOVL]HWRPHGLXPVL]HWLOHVZKLFKFDQQRWEHPDQXIDFWXUHGE\RWKHUSURFHVVHV

E 7XQQHO%LVTXLWDQG5ROOHU*ORVW)LULQJ 7KHPDLQDGYDQWDJHRIWKLVSURFHVVLVWKDWLWFDQSURGXFHYHU\ODUJHVL]HSURGXFWVZKLFKFDQQRWEHPDGHLQWXQQHO²WXQQHOURXWHRIPDQXIDFWXULQJ

F 6LQJOH 5ROOHU )LULQJ 7KLV LV WKH PRVW PRGHUQ WHFKQRORJ\ LQ WKHSURGXFWLRQRI WLOHV WRGD\7KH DGYDQWDJHV DUH KLJKHU SURGXFWLYLW\ORZHUIXHOFRQVXPSWLRQDQGUHGXFHGORRVHV

G 5ROOHU²5ROOHUILULQJRU'RXEOH)DVW)LULQJ 7KHDGYDQWDJHRIWKLVWHFKQRORJ\LVWKDWLWFDQSURGXFHWLOHVZLWKEHWWHUVXUIDFH

7RGD\ VLQJOH ILULQJ LV PDLQO\ XVHG IRU WKH SURGXFWLRQ RI IORRU WLOHVZKLOHGRXEOHILULQJFRQWLQXHVWREHXVHGIRUZDOOWLOHV5ROOHUWHFKQRORJ\LVPRUHVXLWDEOHIRUODUJHUWLOHVZKLOHWKHWXQQHOWHFKQRORJ\IRUWKHVPDOOHURQHV

7KHYLWULILHGWLOHVDUHDEUDVLRQDQGDFLGUHVLVWDQWDQGGRQRWDEVRUEDQ\PRLVWXUH7KH\DUHVXLWDEOHIRUSODFHVVXEMHFWWRKHDY\ZHDUDQGWHDUVXFKDVLQGXVWULDODQGFKHPLFDOSODQWVKRWHOOREELHVVKRZURRPV

7KHFHUDPLFWLOHLQGXVWU\LQ,QGLDHPHUJHGLQWKHODWHVZLWKWKH

+5 -RKQVRQ VHWWLQJ XS LWV SODQW IRU PDQXIDFWXULQJ ZDOO WLOHVDW7KDQH7KLVZDVIROORZHGE\6RPDQ\3LONLQJWRQ/WG63/HQWHULQJWKHLQGXVWU\LQ $IWHU DOPRVW GHFDGHV LQ 6SDUWHN &HUDPLFV HQWHUHG WKHFHUDPLF WLOHV LQGXVWU\ DWWUDFWHG RWKHU FRPSDQLHV OLNH 5HJHQF\ &HUDPLFV.DMDULD &HUDPLFV 0XUXGHVKZDU &HUDPLFV %HOO &HUDPLFV DQG PDQ\RWKHUV



10

7KH FHUDPLF LQGXVWU\ ZLWQHVVHG PDMRU FKDQJHV LQ WKH V (YHUVLQFHWKHOLEHUDOL]DWLRQSURFHVVZDVLQLWLDWHGLQWKHH[FLVHGXW\RQWKHFHUDPLFWLOHVKDVEHHQRQWKHGRZQVOLGH)URPDVKLJKDVSUHYDOHQWLQ LW LV QRZ GRZQ WR 7KHVH H[FLVH GXW\ FXWV KDYH KHOSHG WKHLQGXVWU\ WR DFKLHYH D KHDOWK\ JURZWK UDWH RI PRUH WKDQ SHU DQQXPZKLFK LVFRPSDUDEOH WR WKH JURZWK UDWHVSUHYDOHQWDPRQJ RWKHU VHFWRUV&HUDPLF LQGXVWU\DOVR VFRUHGZHOORYHU LWV FRPSHWLWRUV PRVDLF WLOHVDQGPDUEOHVWRQHVEHFDXVHRILWVHQYLURQPHQWIULHQGO\PDQXIDFWXULQJSURFHVV([FLVHGXW\UHGXFWLRQDQGHFRIULHQGO\PDQXIDFWXULQJUHVXOWHGLQERRPLQWKHLQGXVWU\GXULQJWKHV([LVWLQJSOD\HUVH[SDQGHGWKHLUFDSDFLWLHVDQG PDQ\ QHZ FRPSDQLHV HQWHUHG WKH FHUDPLF WLOHVPDUNHW ,Q WKHFDSDFLW\RIWKHLQGXVWU\H[SDQGHGE\DQGLQWKHYHU\QH[W\HDUWKHFDSDFLW\H[SDQGHGIXUWKHUE\

3UHVHQW6FHQDULR

7KHHQWU\RIWZRQHZSURGXFWFDWHJRULHV9LWULILHGWLOHV3RUFHODLQWLOHVKDVLQFUHDVHGWKHVL]HRIWKHPDUNHWFRQVLGHUDEO\,W LVH[SHFWHGWKDWWKHVHSURGXFWVZLOOJUDGXDOO\WDNHDZD\WKHPDUNHWIURPWKHFRQYHQWLRQDOFHUDPLF WLOHV ZDOO DQG IORRU WLOHV ,Q V PRVDLF WLOHV ZHUH LQ JUHDWGHPDQG LQ ,QGLD %XW LW VWDUWHG ORVLQJ JURXQG WR YLWULILHG DQG SRUFHODLQWLOHVVLQFHWKHLQFHSWLRQRIWKHODWWHULQWKHODWHV

8QOLNH WKH PRVDLF WLOHV ZKLFK DUH YHU\ KHDY\ DQG H[SHQVLYH WRWUDQVSRUW FHUDPLF WLOHV DUH OLJKW DQG FDQ EH IL[HG RQ WKH IORRU HDVLO\0RUHRYHU SRUFHODLQDQG YLWULILHG WLOHVKDYH D GHVLJQHU ORRN ZKLFK LV LQJUHDWGHPDQGLQWKLVDJHRILQWHULRUGHVLJQDQGDHVWKHWLFV7KHSULFHLVDOVRDOPRVWWKHVDPHIRUERWKPRVDLFDQGYLWULILHGWLOHV%HFDXVHRIWKHVHIDFWRUVYLWULILHGWLOHVDUHJDLQLQJJURXQGLQWKH,QGLDQPDUNHWDWSUHVHQW

&HUDPLFWLOHVLQGXVWU\VWDWLVWLFV

,QGLD·V6KDUHRI*OREDO3URGXFWLRQ *OREDO,QGXVWU\*URZWK5DWH

,QGLDQ*URZWK5DWH 2UJDQL]HG,QGXVWU\7XUQRYHU 5VELOOLRQ

6KDUHRI:DOO7LOH 6KDUHRI)ORRU7LOH

6KDUHRI9LWULILHGDQG3RUFHODLQ7LOH ,QYHVWPHQWLQWKH/DVW<HDUV 5VELOOLRQ



11

$VIDUDVWKHPDQXIDFWXULQJRIFHUDPLFWLOHVLVFRQFHUQHGERWKWKH

RUJDQL]HGDVZHOODVXQRUJDQL]HGVHFWRUVSOD\LPSRUWDQWUROHLQ,QGLD7KHXQRUJDQL]HG SOD\HUV DUH FRQFHQWUDWHG LQ 0RUEL 9DQNDQHU DQG+LPPDWQDJDU FLWLHV RI *XMDUDW 7KHUH DUH PRUH WKDQ XQLWV LQ WKHVHUHJLRQV 7KH\ SURGXFH DV PXFK WLOHV DV ZKDW LV SURGXFHG E\ WKH ELJSOD\HUVLQUHVWRIWKHSDUWRIWKHFRXQWU\

%LJSOD\HUVRI&HUDPLFVLQ,QGLD«

&RPSDQ\ %UDQG 0DUNHWVKDUH

+5-RKQVRQ 0DUERQLWH .DMDULD&HUDPLFV .DMDULD

0XUXGHVKZDU&HUDPLFV 1DYHHQGLDPRQWLOH

63/ *UHYLWL6RPDQ\ 6SDUWHN

5HJHQF\&HUDPLFV %HOO&HUDPLFV

/HDGLQJPDQXIDFWXUHUV2YHUVHDV«

&RPSDQ\ &RXQWU\

5$.&HUDPLFV 8$(.DOHVHUDPLN 7XUNH\

1DQKDL &KLQD&DSDFLW\([SDQVLRQ

,QFUHDVLQJ QXPEHU RI FRPPHUFLDO FRPSOH[HV LQ WKH FRXQWU\ KDVEROVWHUHG GHPDQG IRU FHUDPLF WLOHV 7KLV PDVVLYH GRPHVWLF GHPDQG IRUFHUDPLF WLOHV LQ OHG WR DQ XQSUHFHGHQWHG 5V FURUH RI IUHVKLQYHVWPHQWVLQWKHLQGXVWU\$OOWKHPDMRUSOD\HUVLQFOXGLQJ+5-RKQVRQ.DMDULD &HUDPLFV 0XUXGHVKZDU &HUDPLFV DQG 5HJHQF\ &HUDPLFV KDYHPDGH VXEVWDQWLDO LQYHVWPHQW WR H[SDQG WKH SURGXFWLRQ FDSDFLW\ 7KHLQGXVWU\ LV KRSHIXO WKDW LQ WKH \HDU PRVW RI WKHVH IUHVK FDSDFLWLHVZRXOGJRRQSURGXFWLRQVWUHDP



12

,W LV H[SHFWHG WKDW WKLV H[SDQVLRQ RI SODQW FDSDFLW\ ZLOO KHOS WKHGRPHVWLFSURGXFHUVWRUHDSHFRQRP\RIVFDOH7KLVZLOOLQWXUQHQDEOHWKHPWRSULFHWKHLUSURGXFWVPRUHFRPSHWLWLYHO\LQWKHGRPHVWLFDVZHOODVLQWKHJOREDOPDUNHW

&HUDPLF,QGXVWU\*URZWK5DWHV«

<HDU 3URGXFWLRQ 'RPHVWLFFRQVXPSWLRQ ([SRUWV ,PSRUW

7KHDERYHWDEOHVKRZVWKDWDIWHU WKHGHPDQGVXUJH LQ,QGLDQ

SURGXFHUV IHOW WKH QHHG WR HQKDQFH WKHLU SODQW FDSDFLW\ VR WKDW WKHLQFUHDVLQJ GRPHVWLF GHPDQG FDQ EH PHW ZLWKRXW GDPDJLQJ WKH H[SRUW

SHUIRUPDQFH



13

3VRI0DUNHWLQJIRU,QGLDQ&HUDPLF,QGXVWU\«

3URGXFW«

7KHFHUDPLFSURGXFWVKDYHWUDGLWLRQDOO\EHHQDVVRFLDWHGZLWK

WKH DHVWKHWLF YDOXH RI FXOWXUHV 7RGD\ GXH WR LQFUHDVLQJ K\JLHQHFRQVFLRXVQHVV DQG JURZLQJ WHQGHQF\ WR DGRSW QHZ FRQVWUXFWLRQPDWHULDOV KDV ERRVWHG WKH GHPDQG RI WKH SURGXFW 7KH SURGXFW LVDOVRDVVRFLDWHGZLWKFXOLQDU\.LWFKHQDQGRUQDPHQWDOLWHPV

&HUDPLF WLOHV DUH YHU\ FRQYHQLHQW DV FRPSDUHG WR PDUEOH

JUDQLWH DQG VWRQH LQ WHUPV RI SULFH FRORU FKRLFH ZHLJKW VL]HVVXUIDFHDQGDYDLODELOLW\

3ODFH«*XMDUDW KDV D KLJKO\ GHYHORSHG FHUDPLFV LQGXVWU\

FRQFHQWUDWHG LQ WKH 0RUEL :DQNDQHU 7KDQJDGK %DPDQERU6KDSDU9HUDYDODUHDVLQ5DMNRWGLVWULFW7KHLQGXVWU\KDVDWXUQRYHURIDURXQG5VFURUHSHUDQQXPLQWKHVWDWH

7KHVHDUHDVLQWKH6DXUDVKWUDUHJLRQDUHULFKLQUHGVRLOILUH

FOD\ZKLFKLVDUDZPDWHULDOIRUWKHFHUDPLFVLQGXVWU\,QDGGLWLRQUDZ PDWHULDOV VXFK DV YROHVWRQLWH DQG IHOGVSDU DUH DFTXLUHG IURP

PLQHV LQ %LNDQHU DQG -DLSXU 3RZGHU XVHG LQ WKH LQGXVWU\ FRPHVIURP3XQHDQG8GDLSXU)XHOJDVLVVXSSOLHGIURP3RUEDQGDU

&HUDPLF SURGXFWV OLNH JOD]HG WLOHV VDQLWDU\ ZDUH DQG

NLWFKHQZDUH DUH PDQXIDFWXUHG LQ 0RUEL DQG 7KDQJDGK DQG DUHH[SRUWHGWRFRXQWULHVLQWKH0LGGOH(DVWDQG$IULFD

7KHFHUDPLFVLQGXVWULHVHDUQIRUHLJQH[FKDQJHZRUWK5V

FURUHD\HDU7KHUHDUHFORVHWRXQLWVLQWKHFHUDPLFVLQGXVWU\LQWKH UHJLRQ 2I WKHVH DUH HQJDJHG LQ WKH SURGXFWLRQ RI JOD]HGWLOHV

3URPRWLRQ«

,QGLDFHUDPLFFRPSDQLHVQRZGLVSOD\VWKHLUSURGXFWUDQJHDWLQWHUQDWLRQDO H[KLELWLRQV KHOG LQ PDMRU WUDGH KXEV OLNH 'XEDL6LQJDSRUHHWF$OVREUDQGOR\DOW\LVJLYHQGXHLPSRUWDQFH



14

)URP PDUFK WKHUH LV DQ ,QWHUQDWLRQDO &HUDPLF([KLELWLRQDW0RUEL0DQ\FRPSDQLHVIURP,QGLDDQG2YHUVHDVZLOOODXQFK WKHLU SURGXFWV LQ WKLV H[WUDYDJDQ]D 7KLV H[KLELWLRQ ZLOOGHILQLWHO\JLYHDSODWIRUPWRWKHVPDOOSOD\HUVLQWKLVLQGXVWU\DQGDQLQWHUQDWLRQDOH[SRVXUHZKLFKZDVRWKHUZLVHQRWSRVVLEOH

0DQ\ FHUDPLF FRPSDQLHV LQ *XMDUDW KDYH ODXQFKHG RQOLQHSRUWDOV WR GLUHFWO\ FRPH LQ FRQWDFW ZLWKFXVWRPHUV 9LVLWRUV RI WKHVLWHFDQ FXVWRPL]HWKHGHVLJQVDWWKHLUZLOODQGRUGHUDVDPSOHRIWKHWLOHEHIRUHEX\LQJLW

3ULFH«

7KRXJK ,QGLDQ FHUDPLF LQGXVWU\ LV IDFLQJ SULFLQJ ZDU IURP&KLQDRXUSULFHLVUHDVRQDEO\ORZLQSUHPLXPPDUNHWVOLNH(XURSH&DQDGDDQG862QO\WKLQJZHQHHGLVSURSHUVDOHVQHWZRUNLQWKHVH

PDUNHWV,QWKHPDUNHWVOLNH0LGGOH(DVWDQG$IULFDWKHSULFHSOD\VDQGLPSRUWDQWUROH6RZHQHHGWRORZHUGRZQIDFWRU\FRVWVE\WKHXVHRIDOWHUQDWLYH VRXUFH RI IXHOV 7KH JRYHUQPHQW·V JDV SLSHOLQH SURMHFWZLOOEULQJGRZQWKHHQHUJ\FRVWVGUDVWLFDOO\



15

,QGLD·V7UDGH3HUIRUPDQFHIRU&HUDPLF3URGXFWV

*OREDOFHUDPLFSURGXFWVLQFOXGLQJWLOHVVDQLWDU\ZDUHVDQGFURFNHU\LWHPVH[SRUWZDVPLOOLRQLQDQGLWKDVLQFUHDVHGWRPRUH

WKHQPLOOLRQLQ7KHUHIRUHWKHUDWHRIJURZWKRIZRUOGWUDGHZDVLQ,QGLD·VH[SRUWSHUIRUPDQFHYLVjYLVWKHUHVWRIWKHZRUOG«

0DMRU H[SRUWLQJ FRXQWULHV ZHUH ,WDO\ 6SDLQ &KLQD DQG *HUPDQ\&KLQD UHJLVWHUHG WKH KLJKHVW H[SRUW JURZWK UDWH RI DPRQJ WKHPDMRUH[SRUWLQJFRXQWULHV

,QGLD·VH[SRUWILJXUHVZHUHTXLWHORZFRPSDUHGWRRWKHUFRXQWULHV

,Q,QGLDKDGDPLQXVFXOHVKDUHRIWRWDOJOREDOFHUDPLFH[SRUWV

0DMRUH[SRUWHGRIFHUDPLFSURGXFWVDQG,QGLD860LOOLRQ

&RXQWU\ VKDUHRIJOREDOH[SRUW,WDO\

6SDLQ &KLQD

*HUPDQ\

)UDQFH -DSDQ 86$ 8.

0H[LFR 3RUWXJDO ,QGLD

,QGLD·VPDMRUH[SRUWPDUNHWV«

0DMRUH[SRUWGHVWLQDWLRQVRI,QGLDQFHUDPLFSURGXFWVLQDUHVKRZQLQWKHWDEOHEHOORZ«

,QGLD·V([SRUW'HVWLQDWLRQV86PLOOLRQ

0DMRU([SRUW'HVWLQDWLRQ 6DXGL$UDELD



16

8. 8$(

6UL/DQND %DQJODGHVK

86$ .XZDLW $XVWUDOLD *HUPDQ\

4DWDU

,QGLD·VSDUWLFLSDWLRQLQWKHJOREDOWUDGHLVPLQLPDO7KLVFDQEHVHHQIURP ,QGLD·V WRWDO FHUDPLF WUDGH DV D SHUFHQWDJH RI WRWDO JOREDO FHUDPLFWUDGH

5HFHQWO\DFRPSUHKHQVLYHSURMHFWKDVEHHQXQGHUWDNHQE\&$3(;,/&KHPLFDO DQG $OOLHG 3URGXFWV ([SRUW 3URPRWLRQ &RXQFLO XQGHU WKH0DUNHW$FFHVV,QLWLDWLYH0$, LQRUGHUWRSXVKH[SRUWRI,QGLDQFHUDPLFDQGUHODWHGSURGXFWVWRVHOHFWPDUNHWVVXFKDVWKH860H[LFRDQGWKH8.7KH IRXU LGHQWLILHG IRFXV SURGXFWV RI WKH 0$, SURMHFW DUH FHUDPLFLQVXODWRUV FHUDPLF EXLOGLQJ ZDUHV LQFOXGLQJ WLOHV DQG VDQLWDU\ ZDUHFHUDPLFKRXVHKROGDUWLFOHVRUSRWWHU\ZDUHDQGDGYDQFHGFHUDPLFV



17

$QDO\VLVRI,QGLD·VH[SRUWSRWHQWLDO

$QDO\VLV KDYH EHHQ FDUULHG RXW WR LGHQWLI\ SRWHQWLDO PDUNHWV IRU,QGLDQ FHUDPLF SURGXFWVHVSHFLDOO\ZLWKUHJDUGWRXQJOD]HGDQGJOD]HG

FHUDPLF WLOHV FHUDPLF KRXVH KROG DUWLFOHV DQG RUQDPHQWDO FHUDPLFSURGXFWV*OD]HGFHUDPLFWLOHV

*OD]HG FHUDPLF WLOH LV FRPSULVHG RI WZR EDVLF PDWHULDO FOD\ DQGJOD]H7KHVXUIDFHRIWKHWLOHLVFRDWHGZLWKDFRORUHGJOD]HVLPLODUWRJODVVDQGKHQFHWKHQDPHJOD]HGFHUDPLFWLOHV*OD]HGWLOHVDUHHDV\WRFOHDQEXWLWV VXUIDFH LV YHU\ ORZ VOLS UHVLVWDQFH DQG EHFRPHV VOLSSHU\ ZKHQ ZHW7KHUHIRUHJOD]HGWLOHLVPXFKVXLWHGIRUZDOOVUDWKHUWKDQIRUIORRUV

7KHWRSLPSRUWHUVRIJOD]HGFHUDPLFSURGXFWVDUH86$)UDQFHDQG

*HUPDQ\

7RSLPSRUWHUVRIJOD]HGFHUDPLFWLOHV

&RXQWU\ 9DOXH¶8686$

)UDQFH *HUPDQ\

86$«

86$ PDLQO\ LPSRUWV IURP ,WDO\ 6SDLQ DQG 0H[LFR ,WDO\ DORQHVXSSOLHGPRUHWKDQRI86LPSRUWUHTXLUHPHQWVRIJOD]HGFHUDPLFWLOHV6SDLQ DQG 0H[LFR VXSSOLHG DURXQG DQG UHVSHFWLYHO\ ,QGLD·VH[SRUW WR 86$ LV QHJOLJLEOH a ZLWK UHJDUG WR XQLW SULFH ,QGLD LVFKHDSHUWKDQ,WDO\EXWFRVWOLHUWKDQ6SDLQDQG0H[LFR)UDQFH«

)UDQFHLVWKHZRUOG·VQGODUJHVWLPSRUWHURIFHUDPLFWLOHV,WPDLQO\LPSRUWVIURP,WDO\DQG6SDLQ,WDO\VXSSOLHVRIWRWDOLPSRUWRIJOD]HGWLOHVE\)UDQFH6SDLQDQG*HUPDQ\DUHWKHVHFRQGDQGWKLUGODUJHVWVRXUFHFRXQWULHVZLWKDQGVKDUHVUHVSHFWLYHO\,QGLD·VH[SRUWWR)UDQFHLVQHJOLJLEOH ,QGLD·V XQLW SULFH LQ )UDQFH UHODWLYHO\ FRPSHWLWLYH WKRXVDQG WRQQH WKDQ (XURSHDQ H[SRUWHUV DQG WKXV WKHUH LV VFRSH IRULQFUHDVLQJ,QGLD·VVKDUHLQWKH)UHQFKPDUNHW



18

*HUPDQ\«

*HUPDQ\LVWKHUGODUJHVWLPSRUWHURIJOD]HGFHUDPLFWLOHVDQGWKHFRXQWU\PDLQO\LPSRUWVIURP,WDO\6SDLQDQG)UDQFH0RUHWKDQRI*HUPDQ\·V LPSRUW FRPHV IURP ,WDO\ ,QGLDQ JOD]HG WLOHV DUH UHODWLYHO\FRPSHWLWLYHLQ*HUPDQPDUNHW

&XUUHQWO\ DURXQG RI ,QGLD·V JOD]HG WLOHV H[SRUW LQ WHUPV RIYDOXHJRHVWR4DWDU6UL/DQND6DXGL$UDELDDQG86$8QJOD]HGFHUDPLFWLOHV

7KH XQJOD]HG FHUDPLF WLOHV DUH KLJK YDOXH LWHPV XVXDOO\ VWDLQUHVLVWDQWDQGORZZHDULQJ,QVWDOODWLRQRIWKHVHWLOHVLVDOVRUHODWLYHO\HDV\

DQGUHTXLUHVOHVVPDLQWHQDQFHHVSHFLDOO\ZLWKUHJDUGWRSROLVKLQJ7KHUHDUHDOVRDSSOLFDWLRQVRIGHVLJQVWRVXLWWKHUHTXLUHPHQWRIFXVWRPHUV7KXVWKHVHWLOHVDUHRQHRIWKHSRWHQWLDOLWHPVIRUH[SRUWVIURP,QGLD

7RSWKUHHLPSRUWHUVRI8QJOD]HG&HUDPLF7LOHV


*HUPDQ\ )UDQFH

$ERYHWDEOHVKRZVWRSLPSRUWLQJFRXQWULHVRIWKLVFDWHJRU\1RZZHZLOOVHHIURPZKHUHWKH\LPSRUWWKLVUHTXLUHPHQW86$«

86$ PDLQO\ LPSRUWV IURP ,WDO\ 0H[LFR DQG 6SDLQ ,WDO\ DORQHVXSSOLHGDURXQGRI86LPSRUWUHTXLUHPHQWVRIXQJOD]HGFHUDPLFWLOHV,QGLD·V H[SRUW WR 86$ LVQHJOLJLEOH +RZHYHU ZLWK UHJDUG WR XQLW SULFH,QGLD LV FKHDSHU WKDQ (XURSHDQ FRXQWULHV 6R KDYH SRWHQWLDO WR JUDEUHDVRQDEOH PDUNHW VKDUH FRQVLGHULQJ WKH ORZ XQLW SULFH DV FRPSDUHG WR

(XURSHDQVXSSOLHUV*HUPDQ\«

*HUPDQ\ LV WKH VHFRQG ODUJHVW LPSRUWHU RI XQJOD]HG FHUDPLF WLOHVDQGWKHFRXQWU\KDVPDLQO\LPSRUWHGIURP,WDO\1HWKHUODQGVDQG)UDQFH,QGLDLVQRWDVLJQLILFDQWVXSSOLHUWR*HUPDQ\$QGLWLVWRXJKWRJUDEWKLV



19

PDUNHWEHFDXVH*HUPDQ\HQMR\VYLFLQLW\RI,WDO\DQGERWKDUHPHPEHURI(8)UDQFH«

)UDQFH LV WKH UG ODUJHVW LPSRUWHU RI XQJOD]HG FHUDPLF WLOHV IURP,WDO\6SDLQDQG*HUPDQ\0RUHWKDQRILPSRUWE\)UDQFHFRPHVIURP,WDO\ DORQH ,QGLD LV DW WK SRVLWLRQ DV PDMRU VRXUFH FRXQWU\ IRU )UDQFH,QGLD·VXQLWSULFHLQ)UDQFHPDUNHWLVKDOIWKHYDOXHRIWKHPDMRU(XURSHDQVXSSOLHUV

&XUUHQWO\ DURXQG RI ,QGLD·V XQJOD]HG WLOHV DUH H[SRUWHG WR6DXGL $UDELD 6UL /DQND 8$( DQG 8. ,QGLD·V XQLW SULFHV DUH DOVRUHODWLYHO\ORZLQWKHVHPDUNHWV

&HUDPLF+RXVHKROG$UWLFOHV

&HUDPLF KRXVHKROG DUWLFOHV PDLQO\ FRQVLVW RI WDEOHZDUH DQGNLWFKHQZDUH VXFK DV GLQQHU VHW WHDFRIIHH VHW GLVKHV ERZOV VHUYLQJSODWHVSLWFKHUVYDVHVHWF

7RSLPSRUWHUVRIFHUDPLFKRXVHKROGDUWLFOHV


*HUPDQ\ -DSDQ 86$«

86$PDLQO\LPSRUWVIURP&KLQD8.DQG,WDO\&KLQDDORQHVXSSOLHVDURXQGRI86LPSRUWVRIFHUDPLFKRXVHKROGDUWLFOHVZKHUHWKHVKDUHRI8.DQG,WDO\LVDQGUHVSHFWLYHO\,QGLD·VPDUNHWVKDUHLQ86$LVQHJOLJLEOHa*HUPDQ\«

*HUPDQ\PDLQO\ LPSRUWV IURP&]HFK5HSXEOLF&KLQD DQG 3RODQG,QGLD·VPDUNHWVKDUHLVQHJOLJLEOHDQGDOVRWKHXQLWSULFHRI,QGLDQSURGXFWVLVKLJKHUWKDQ3RODQGDQG&KLQD



20

-DSDQ« -DSDQPDLQO\LPSRUWVIURP&KLQDDQG8.0RUHWKDQRILPSRUW

E\-DSDQFRPHVIURPWKHVHFRXQWULHV,QGLD·VH[SRUWWR-DSDQLVQHJOLJLEOH+RZHYHU ,QGLDQ SURGXFWV DUH YHU\ FRPSHWLWLYH DJDLQVW WKH (XURSHDQSURGXFWV DQG WKXV WKHUH LV VFRSH IRU ,QGLD WR LQFUHDVH PDUNHW VKDUH LQ -DSDQ

&XUUHQWO\RI,QGLD·VH[SRUWRIFHUDPLFKRXVHKROGDUWLFOHVJRHVWR&DQDGD*HUPDQ\8.DQG86$2UQDPHQWDO&HUDPLF3URGXFWV

7RSLPSRUWHUVRIRUQDPHQWDOFHUDPLFSURGXFWV

&RXQWU\ 9DOXH¶86

86$ *HUPDQ\

+RQJ.RQJ 86$«

86$ PDLQO\ LPSRUWV IURP &KLQD 6SDLQ DQG ,WDO\ &KLQD DORQHVXSSOLHVPRUHWKDQRI86LPSRUWRIRUQDPHQWDOFHUDPLFSURGXFW*HUPDQ\«

*HUPDQ\PDLQO\LPSRUWVIURP9LHWQDPDQG3RUWXJDO$URXQGRI*HUPDQ\·VLPSRUWRIRUQDPHQWDOFHUDPLFSURGXFWVFRPHVIURP&KLQDDORQH ,QGLD LV QRW D VLJQLILFDQW VXSSOLHU WR *HUPDQ\ DQG WKXV ,QGLD·VPDUNHWVKDUHLVQHJOLJLEOH,QGLD·VXQLWSULFHLVDOVRKLJKHUWKDQWKHSULFHRIPDMRUVXSSOLHUVWR*HUPDQ\+RQJ.RQJ«

0RUH WKDW RI LPSRUW LQ +RQJ .RQJ FRPHV IURP &KLQD 8QLWSULFHRI&KLQHVHSURGXFWVLVPXFKORZHUWKDQWKHSULFHRIRWKHUH[SRUWLQJFRXQWULHV,QGLDGRHVQRWH[SRUWWR+RQJ.RQJ

&XUUHQWO\PRUHWKDQRI,QGLD·VRUQDPHQWDOFHUDPLFH[SRUWJRHV

WR86$8.)UDQFHDQG6SDLQ



21

6RPH5HFHQW,VVXHV)XHOVXSSO\²DPDMRUFRQFHUQWREHFRPHFRPSHWLWLYH

7KHUH H[LVW IHZ DOWHUQDWLYH VRXUFHV RI IXHOV IRU WKH GRPHVWLF FHUDPLFLQGXVWU\OLNH« /LTXHILHG3HWUROHXP*DV/3* 3URSDQHJDV /LJKW'LHVHO2LO/'2 &RDOJDV /LTXHILHG1DWXUDO*DV/1*3UHVHQWO\ FHUDPLF DQG UHIUDFWRU\ LQGXVWU\ VSHQGV RI WKH WRWDO

SURGXFWLRQ FRVWVDV WKH IXHO DQG HQHUJ\ FRVW 7KH UHFHQWJDV ILQGLQJVE\5HOLDQFH DQG 21*& KDYH JLYHQ VRPH KRSH WKDW WKH LQGXVWU\ ZLOO JHW

VXIILFLHQWVXSSO\RIJDVDWUHDVRQDEOHSULFHVLQWKHORQJWHUP$GYDQFHG&HUDPLFV²DKXJKSRWHQWLDO

2I ODWH ,QGLDQ FHUDPLF LQGXVWU\ LV IRFXVLQJ RQ DGYDQFHG FHUDPLFSURGXFWVWRVWHSXSH[SRUWV$WSUHVHQWDGYDQFHGFHUDPLFSURGXFWVGRQRWIHDWXUHLQWKH,QGLDQH[SRUWEDVNHW7UDGLWLRQDOLWHPVOLNHLQVXODWRUVIORRUWLOHV DQG VDQLWDU\ ZDUH DUH QRUPDOO\ H[SRUWHG 7KH JOREDO PDUNHW IRUDGYDQFHG FHUDPLFV LV GRPLQDWHG E\ FRXQWULHV OLNH -DSDQ DQG $PHULFD

,QGLD LV ODFNLQJ WKH WHFKQRORJ\ IRU ODUJH VFDOHFRPPHUFLDOSURGXFWLRQRIDGYDQFHGFHUDPLFV+RZHYHUUHFHQWO\&$3(;,/KDVDQQRXQFHGWKDWLWZLOOFKDON RXW D URDGPDS IRU GHYHORSPHQW RI H[SRUWV RI DGYDQFHG FHUDPLFVSURGXFWV XQGHU 0DUNHW $FFHVV ,QLWLDWLYH 0$, VFKHPH RI WKH PLQLVWU\ RIFRPPHUFH

$GYDQFHGFHUDPLFVSURGXFWVFRQWDLQLQJUHGLHQWVQRWXVXDOO\IRXQGLQWUDGLWLRQDO FHUDPLFV $ FRPELQDWLRQ RI VSHFLDO UDZ PDWHULDO DQG VXSHULRUPDQXIDFWXULQJ WHFKQLTXHV GHOLYHU SURGXFWV ZLWK XQLTXH UHVLVWDQFH WRWHPSHUDWXUH FRUURVLRQ DQG ZHDU 7KH SURGXFWV ILQG XVH LQ HOHFWURQLFV

DXWRPRWLYH DQG DHURVSDFH LQGXVWULHV 1HZ DQG H[SDQGLQJ DSSOLFDWLRQV IRUFHUDPLFPDWHULDOVDUHFUHDWLQJJURZWKRSSRUWXQLWLHVLQYLUWXDOO\DOOLQGXVWULDOVHFWRUV RI WKH ZRUOG·V HFRQRP\ 0DQ\ FRPPHUFLDO DQG FRQVXPHU UHODWHGDSSOLFDWLRQVVXFKDVFRPSXWHUVDQGWHOHFRPPXQLFDWLRQHTXLSPHQWKDYHEHHQJURZLQJ UDSLGO\ FRQWULEXWLQJ WR WKH JURZWK SDUWLFXODUO\ LQ WKH HOHFWURQLFVFHUDPLFDUHD



22

'XPSLQJ

,QGLDQ FHUDPLF PDQXIDFWXUHUV DUH EHVLHJHG ZLWK WKH SUREOHP RI ORZPDUJLQ DQG IDOOLQJ SURILWDELOLW\ 7KH JURZWK LQ QHW PDUJLQ LQ WKH YLWULILHG

VHJPHQWKDVSOXPPHWHGIURPWRZLWKLQD\HDU$FFRUGLQJWRLQGXVWU\VRXUFHV PDMRU IDFWRUV WKDW KDYH NHSW WKH SULFH VWUXFWXUH ILUPO\ ORZ DUHGXPSLQJ DQG DQRPDORXV FXVWRP GXW\ VWUXFWXUH LQ WKH FRXQWU\ &KHDSLPSRUWHGYLWULILHGWLOHVDUHEHLQJGXPSHGLQWRWKH,QGLDQPDUNHWE\FRXQWULHVVXFKDV&KLQD,QGRQHVLDDQG0DOD\VLD'XULQJ5VFURUHZRUWKRILPSRUWHGWLOHVZHUHGXPSHGLQ,QGLD6XFKFKHDSLPSRUWKDVWKUHDWHQHGWKHLQGXVWU\·VYLDELOLW\HVSHFLDOO\RIXQLWVLQWKHYLWULILHGVHJPHQW

5HFHQWO\WKHJRYHUQPHQWRI,QGLDKDVOHYLHGDQDQWL²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

7KHSUREOHPIDFHGE\GRPHVWLFPDQXIDFWXUHUVGXHWRFKHDSLPSRUWKDVUHFHQWO\EHHQLQWHQVLILHGEHFDXVHRIWKH&KLQD·VHQWU\LQWRWKH%DQJNRN$JUHHPHQW ZKLFK ZDV GHYHORSHG ZLWK D YLHZ WR SURPRWH IUHH WUDGHDPRQJ6RXWK(DVW$VLDQFRXQWULHV

7KH GRPHVWLF FHUDPLF WLOH LQGXVWU\ LV DOUHDG\ IDFLQJ LQWHQVHFRPSHWLWLRQDQGPDUJLQVDUHGUDVWLFDOO\IDOOLQJ,QVXFKDVFHQDULRHQWU\RI&KLQDDVXQGHUWKLVDJUHHPHQW&KLQHVHJRRGVZLOODWWUDFWDGXW\RIDVDJDLQVW GXW\ RQ LPSRUW IURP RWKHU FRXQWULHV 7KLV PLJKW VHYHUHO\

DIIHFWWKHGRPHVWLFSURGXFHUV

7KH UHGXFWLRQ LQ LPSRUW GXW\ RQ &KLQHVH WLOHV KDV UHVXOWHG LQ DGHFOLQHLQSULFHRIYLWULILHGWLOHVIURPDURXQG5VVTIWODVW\HDUWR5VVTIWDWSUHVHQW7KLVSULFHVKDNHRXWLQWKHYLWULILHGVHJPHQWKDVDOVRDGYHUVHO\ DIIHFWHG WKH ZDOO DQG IORRU WLOHV VHJPHQW ZKHUH WKH SULFH KDVIDOOHQIURP5VODVW\HDUWR5VDWSUHVHQW



23

*RYHUQPHQW6XSSRUW

:LWKWKHGLVFRYHU\RIKXJHGHSRVLWVRI&KLQDFOD\LQ.XWFKGLVWULFWWKHVWDWHJRYHUQPHQWLVKRSLQJWRSODFHWKHFHUDPLFLQGXVWU\LQWKHVWDWHRQ

WKHZRUOGPDS7KHJRYHUQPHQWKDVVHWDQDPELWLRXVWDUJHWWRRYHUWDNH&KLQHVHH[SRUWVE\WKHHQGRI

$FFRUGLQJ WR SUHOLPLQDU\ LQGLFDWLRQV &KLQD FOD\ GHSRVLWV DUHHVWLPDWHG DW RYHU PLOOLRQ WRQQH +RZHYHU *XMDUDW 0LQHUDO'HYHORSPHQW &RUSRUDWLRQ *0'& LV FRQGXFWLQJ D VXUYH\ LQ .XWFK WRHVWLPDWHWKHDPRXQWRIDYDLODELOLW\RIWKH0LQHUDOLQWKHUHJLRQ

7KH JRYHUQPHQW KDV LGHQWLILHG IRXU FOXVWHUV .XWFK 5DMNRW 0RUEL

DQG 0HKVDQD IRU WKH GHYHORSPHQW RI WKH FHUDPLFV LQGXVWU\ LQ WKH VWDWH

7KHFOXVWHUVDUHH[SHFWHGWREHGHYHORSHGDQGEHRSHUDWLRQDOE\WKHHQGRI

7KH)RUHLJQ'LUHFW,QYHVWPHQWOLPLW LQWKHUHDOHVWDWHDQGSURSHUW\VHFWRU DQG WKH JRYHUQPHQW·V WKUXVW RQ WKH KRXVLQJ VHFWRU WKURXJKLQLWLDWLYHVOLNHWKH%KDUDW1LUPDQDQGWKH1DWLRQDO8UEDQ5HQHZDO0LVVLRQXQGHUZKLFK WKHJRYHUQPHQWDLPV WR IRFXV RQ VHOHFW FLWLHV DUH VHW WRDFFHOHUDWHWKHJURZWKRIFHUDPLFLQGXVWU\

7KH GXW\ HQWLWOHPHQW SDVV ERRN '(3% VFKHPH XQGHU ZKLFKFRPSDQLHVJHWDSHUFHQWWD[FRQFHVVLRQLQH[SRUWVLVRQO\DYDLODEOHWRJOD]HXQLWV

3URYLGLQJ VRPH UHOLHI WR WKH LQGXVWU\ WKH JRYHUQPHQW RI *XMDUDW

KDGFXWVDOHVWD[RQWKHSURGXFWVIURPSHUFHQWWRSHUFHQWLQWKHODVWEXGJHW

7KHJRYHUQPHQWKDVUDWLRQDOL]HGWKHH[FLVHGXW\VWUXFWXUHWRDODUJH

H[WHQWIURPURXJKO\SHUFHQWIHZ\HDUVDJRWRFXUUHQWSHUFHQW

,Q D PDMRU EUHDNWKURXJK WKDW LV H[SHFWHG WR KDYH D IDUUHDFKLQJLPSDFW RQ WKH FHUDPLF LQGXVWU\ $KPHGDEDGEDVHG &HQWUDO *ODVV &HUDPLF 5HVHDUFK ,QVWLWXWH &*&5, KDV GHYHORSHG D QHZ WHFKQRORJ\ZKLFKLVFODLPHGWRJHQHUDWHZHDOWKIURPZDVWHPDWHULDO



24

7KLV WHFKQRORJ\FRQYHUWV KDUGYLWULILHG DQG GHQVH ´ILUHGµ FHUDPLF

VFUDSVLQWREUHDNDEOHDQGEULWWOHPDWHULDOVRWKDWWKH\FDQEHHDVLO\JURXQGLQWR ILQH SRZGHU DQG WKHQ UHF\FOHG DV UDZ PDWHULDO IRU WKH FHUDPLFLQGXVWU\ 7KLV XVHV WKH ZDVWDJH WR FUHDWH ZHDOWK $QG LW DOVR SURWHFWVHQYLURQPHQWIURPVFUDSVRIFHUDPLFV

7KH DLOLQJ FHUDPLF LQGXVWU\ NQRZQ ZRUOGZLGH IRU WKH TXDOLW\

FHUDPLFWLOHVLWSURGXFHGZLOOJHWJDVZLWKLQPRQWKVDVWKHVWDWHHQHUJ\DQG SHWURFKHPLFDOV GHSDUWPHQW KDV GHFLGHG WR H[SHGLWH WKH ZRUN RQOD\LQJSLSHOLQHDVSDUWRIWKHSURSRVHGVWDWHZLGHJDVJULGXSWR0RUEL

7KH JRYHUQPHQW KRSHV WKDW LWV HQWHUSULVH*XMDUDW 6WDWH 3HWURQHW

/WG*63/ZKLFKLVUHVSRQVLEOHIRUWKHJDVJULGSURMHFWZLOOEHDEOHWR

H[WHQGWKHSLSHOLQHXSWR0RUELZLWKLQPRQWKV:KHQ,DPZULWLQJWKLVWKHIXHOFRVWVPLJKWKDYHFDPHGRZQLQFHUDPLFXQLWV

%\ GRLQJ UHVHDUFK DW &HUDPLF 5HVHDUFK ,QVWLWXWH LQ &DOFXWWDJRYHUQPHQW KDV VXJJHVWHG WR WKH PDQXIDFWXUHUV WKDW HQHUJ\ FRVW LQFHUDPLF PDQXIDFWXULQJ ZKLFK LV DERXW RI WRWDO FRVW FDQ VDYHG E\PLFURSURFHVVRUEDVHGFRQWUROV\VWHPDQGYDULDEOHVSHHGGULYHUV %\WKLVZD\FRPSDQLHVFDQVDYHRIPDQXIDFWXULQJFRVW

*RYHUQPHQWKDVHVWDEOLVKHG,QGLDQ&RXQFLORI&HUDPLF7LOHVDQG6DQLWDU\ZDUH,&&7$67KHJRDORIWKLVFRXQFLOLV´7RSURPRWHVDOHVRISURGXFWVRIFHUDPLFWLOHVDQGSRUFHODLQDUWLFOHVE\,QGLDLQGRPHVWLFDQGRYHUVHDVPDUNHWVµ

,WV DFWLYLWLHV DUH WR DUUDQJH 7UDGH H[KLELWLRQV (YHQWV 6HPLQDUVDQG5HSUHVHQWDWLRQRI,QGLDQFHUDPLFPDQXIDFWXUHUVRYHUVHDV

8QGHU WKH DHJLV RI JRYHUQPHQW &$3(;,/ &KHPLFDO DQG $OOLHG

3URGXFWV([SRUW3URPRWLRQ&RXQFLOLVDFWLYHO\VXSSRUWLQJ,QGLDQFHUDPLF

FRPSDQLHV0DMRUDFWLYLW\RIWKLVFRXQFLOLVWRWUDQVIHU WUDGHLQTXLULHVIURPRYHUVHDVWR,QGLDQPDQXIDFWXUHUV

&KLQHVHWLOH&RPSDQ\1DQKDLH[SRUWHGYLWULILHGDQGSRUFHODLQWLOHVWR,QGLDWKURXJKWKH8QLWHG$UDE(PLUDWHVVRWKDWWKH\FDQEHH[HPSWHGIURP SD\LQJ DQWLGXPSLQJ GXWLHV LQ ,QGLD %XW *XMDUDW &HUDPLF )ORRU7LOHV 0DQXIDFWXUHUV $VVRFLDWLRQ *&)70$ ILOHG D ZULW SHWLWLRQ LQ



25

*XMDUDW+LJK&RXUW7KHFRXUWLVVXHGWKHVWD\RUGHUDQGWKHVKLSPHQWZDVQRWDOORZHGWREHFOHDUHGDW,QGLDQSRUW6RLQWKLVZD\ORFDODVVRFLDWLRQVDUHYHU\KHOSIXOWRFRPPXQLFDWHZLWKWKHJRYHUQPHQWZKHQWKHUHLVDQ\GLVSXWH

3UREOHPVIDFHGE\,QGLDQ&HUDPLF,QGXVWU\ 7KH GURS LQ GXWLHV RQ LPSRUWHG WLOHV ZLOO HURGH WKH LQGXVWU\·VYLDELOLW\DVLW ZLOO OHDGWRFORVXUHRIQXPEHURIPDQXIDFWXULQJXQLWV7KHUDWLRQDOL]DWLRQRIFXVWRPVGXWLHVE\WKHILQDQFHPLQLVWU\KDVUHGXFHGWKHGXWLHVRQWKHLPSRUWRIILQLVKHGWLOHVWR

%XWWKHLPSRUWGXW\RQUDZPDWHULDOVLVDOPRVWGRXEOHDW,QGLD

LPSRUWVEXONRIWKHJOD]HZKLFKLVDQHVVHQWLDOILQLVKLQJLQJUHGLHQWIURP&KLQD7KLVKDVSODFHGORFDOPDQXIDFWXUHUVDWDELJGLVDGYDQWDJHDJDLQVWLPSRUWV

7KHFXVWRPVGXW\RQUDZPDWHULDOVKRXOGLGHDOO\EHORZHUWKDQWKDWRQ ILQLVKHG JRRGV VR WKDW LQYHVWRUV ZRXOG ILQG LW ZRUWKZKLOH WR SXWPRQH\LQWRORFDOPDQXIDFWXULQJXQLWV

7KHFDXVHRIHURGLQJPDUJLQVKDVEHHQWKHKLJKEDVLFLPSRUWGXW\RQ UDZ PDWHULDOV FRXSOHG ZLWK D GHPDQGVXSSO\ PLVPDWFK D UHVXOW RIKXJH RYHUFDSDFLWLHV DQG GXPSLQJ RI VXEVWDQGDUG TXDOLW\ LPSRUWV IURPXQVFUXSXORXVLPSRUWHUVDQGWUDGHUV 7KH UHDVRQV IRU LQGXVWU\·V SRRU SHUIRUPDQFH LV VNHZHG FDSLWDOVWUXFWXUHSRRUHFRQRPLHVRIVFDOHKLJKGXWLHVSDLGRQUDZPDWHULDOVDQGVTXHH]LQJ PDUJLQV DV D UHVXOW RI WKH LQIOX[ RI FKHDS LPSRUWV DQG QHZLQGXVWU\SOD\HUV



26

,QGXVWU\9RLFHV«

' ´,I WKH JRYHUQPHQW FDQ SURYLGH JDV HOHFWULFLW\ DQG ZDWHU WR WKLVLQGXVWU\ DW ORZHU UDWHV WKH VHFWRU FDQ EHFRPH D PDMRU PRQH\

VSLQQHU RI 6DXUDVKWUDµ VDLG 3UDIXOEKDL 'HWURMD SUHVLGHQW0RUEL'KXYD*OD]H7LOHV$VVRFLDWLRQ

' ´7RERRVWH[SRUWVWKH'(3%VFKHPHVKRXOGEHH[WHQGHGWRVDQLWDU\ZDUH DQG IORRU WLOHV ILUPVµ VDLG .DUVKDQEKDL $DGURMD SUHVLGHQW6DQLWDU\0DQXIDFWXUHUV·$VVRFLDWLRQ

' ´6PDOO XQLWV ZKLFK GR QRW H[SRUW GLUHFWO\ DUH QRW FRYHUHG XQGHU

'(3%VFKHPH,IVRPHVSHFLDOSURYLVLRQVDUHSURYLGHGWKHUHLVYDVWVFRSH IRU GHYHORSPHQW IRU VPDOO ILUPV LQ WKLV VHFWRUµ VDLG

&KDQGUDNDQWEKDL $DVKDU D OHDGLQJ PDQXIDFWXUHU RI FHUDPLFSURGXFWV

' $FFRUGLQJ WR %HFKDUEKDL 3DWHO SUHVLGHQW 0RUEL &KDPEHU RI

&RPPHUFH´WKHKLJKSRZHUUDWHVFKDUJHGE\WKH*XMDUDW(OHFWULFLW\%RDUG *(% DUH IXUWKHU LQIODWLQJ WKH FRVW RI SURGXFWLRQ RI VPDOOPDQXIDFWXUHUVµ

' $QLOEKDL 3DWHO PLQLVWHU RI VWDWH IRU LQGXVWULHV VDLG ´7KH

JRYHUQPHQWKDVJLYHQWKHSULRULW\WRWKLVLQGXVWU\XQGHUWKHFOXVWHUGHYHORSPHQW SURJUDPPH 7KH PLQLVWU\ KDV DOVR UHIHUUHG WKHSLSHOLQHSODQWRWKHHQHUJ\PLQLVWHUµ

' 3UDIXOOEKDL 'HWURMD SUHVLGHQW 0RUEL'KXYD *OD]H 7LOHV

$VVRFLDWLRQVD\V´VPDOOFHUDPLFPDQXIDFWXUHUVZKRDUHLJQRUDQWRISROLF\ DQG H[SRUW SURFHGXUHV GRQRW JR IRU H[SRUWV DQG VHOO WKHLUSURGXFWVDWORZHUSULFHVLQWKHORFDOPDUNHWµ

' *LULVKEKDL 3HKWDSDUD SUHVLGHQW *&)70$ VD\V ´IRU 6RXWK ,QGLDQWUDGHUV WUDQVSRUWDWLRQFRVWIURP0RUELDQGIURP&KLQDLVHTXDO6RWKH\SUHIHUFKHDSHU&KLQHVHSURGXFWVµ



27

&RQFOXVLRQ

,QWKHUHFHQW\HDUVWKHFHUDPLFLQGXVWU\LVZLWQHVVLQJHQFRXUDJLQJWUHQGVLQGHPDQGSRZHUHGE\VXVWDLQHGULVHLQKRXVLQJFRQVWUXFWLRQDQG

ERRPLQJKRVSLWDOLW\ LQGXVWU\ 7KH LQGXVWU\ DOVR ODLGJUHDW WKUXVWRQFRVWFRQWUROPHDVXUHVFDSDFLW\H[SDQVLRQH[SORUDWLRQRIQHZHUPDUNHWVDQGLQWURGXFWLRQRIQHZHUGHVLJQV$OOWKLVPHDVXUHVDUHH[SHFWHGWRIDFLOLWDWHEHWWHUJURZWKLQWKHLQGXVWU\·VUHYHQXHVDQGSURILWDELOLW\LQIXWXUH

&HUDPLF DQG VDQLWDU\ ZDUH LQGXVWU\ LV KLJKO\ LQWHJUDWHG ZLWKFRQVWUXFWLRQ LQGXVWU\DQG KLJKJURZWKUDWH LQFRQVWUXFWLRQ VHFWRU EULQJVIRUWK IRUWXQH IRU WKH FHUDPLF DQG VDQLWDU\ ZDUH LQGXVWU\ ,Q ,QGLD WKHFRQVWUXFWLRQVHFWRULVH[SHFWHGWRGRZHOOLQWKHIXWXUHPDLQO\GXHWRILVFDOLQFHQWLYHVJLYHQWRLQIUDVWUXFWXUHGHYHORSPHQW7KHEXGJHWDOVRVHWWDUJHW

WREXLOGKRXVLQJXQLWVSHU\HDU

,Q WKLV \HDU·V EXGJHW WRR WKUXVW KDV EHHQ JLYHQ RQLQIUDVWUXFWXUHGHYHORSPHQW WKURXJK WKH JUDQG´%KDUDW1LUPDQµSURMHFWZKLFKDLPVWRVWUHQJWKHQUXUDOLQIUDVWUXFWXUHZLWKLQDVSDQRIIRXU\HDUV+RXVLQJ LV RQH DPRQJ WKH VHFWRUV WKDW KDV EHHQ LGHQWLILHG XQGHU WKHSURMHFW

$SDUWIURPWKHEXGJHWLQFHQWLYHVWKHKRXVLQJVHFWRULVH[SHFWHGWR

JURZEHFDXVHRIORZLQWHUHVWUDWHVRQKRXVLQJORDQV$OOWKHVHZRXOGSURYLGHLPSHWXVWRJURZWKLQFRQVWUXFWLRQLQGXVWU\

ZKLFKLQWXUQZRXOGIXHOWKHJURZWKRIFHUDPLFSURGXFWPDUNHW7KXV WKHLQGXVWU\SURVSHFWVVHHPWREHYHU\JRRG

$FFRUGLQJ WR 0LFKHO 3RUWHU·VPRGHO RI FRPSHWLWLYH DGYDQWDJH WKHLQFUHDVHGGRPHVWLFPDUNHWGHPDQGZLOODXWRPDWLFDOO\ERRVWWKHLQGXVWU\·VVXVWDLQDELOLW\ DW LQWHUQDWLRQDO OHYHO %XW WR LQFUHDVH H[SRUW LQ WKH PRVWDGYDQFHGDQGUHPXQHUDWLYHPDUNHWVLWKDVEHFRPHHVVHQWLDOWRHVWDEOLVKD

OR\DOVDOHVQHWZRUNDQGDEUDQGQDPHWKDWLVUHFRJQL]HGDQGUHVSHFWHGE\LQGXVWU\SURIHVVLRQDOV

7KXV LPSRUWDQFH PXVW EH JLYHQ RQ EUDQG EXLOGLQJ DQG VDOHVQHWZRUNLQJ EDFNHGE\EHWWHUDIWHUVDOHVVHUYLFHLQPDUNHWVDEURDG



28

5HIHUHQFH«

([FHUSWV IURP LQWHUYLHZV RI YDULRXV SHUVRQV HQJDJHG LQ WKLVLQGXVWU\

([SRUW,PSRUW%DQNRI,QGLD([LP%DQN

%XVLQHVV6WDQGDUGGDLO\ 0DUNHWLQJ0DQDJHPHQWE\3KLOLS.RWODU



&RXUWHV\

0U'KDUPHVK9DUPRUD0DUNHWLQJ0DQDJHU9DUPRUD9LWULILHG7LOHV

0U5HQLVK9\DV

([SRUW0DQDJHU )DFH&HUDPLF/WG

0U*LULVKEKDL3HWKDSDUD

0DQDJHU'LUHFWRU'HFR*ROG7LOHV

0U$MLWEKDL3DWHO

0DUNHWLQJ0DQDJHU

6RJR9LULILHG7LOHV 0U.*.XQGDULD

3UHVLGHQW%KDEKD([SRUWV

indian ceramic industry

Documents