A

GLOBAL COUNTRY STUDY REPORT

ON

ITALY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University

Batch : 2010-12 MBA SEMESTER III/IV Shri Sunshine Group of Institutions (773) MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad

April, 2012

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INDEX

NO Particulars Page No.

1 Economy Overview of 4 1.1 Demographic Profile of the Italy 4

1.2 Economic Overview of the Italy 6

1.3 Overview of Industries Trade and Commerce 9

1.4 Overview Different economic sectors of Italy 14

1.5 Overviews of Business and Trade at International Level 18

1.6 Present Trade Relations and Business Volume of 19 different products with India

1.7 PESTEL Analysis 24

2 Industry/ Sector/Company/Product/Service/New venture 29 specific study 2.1 Introduction of the selected Company / Industry / Sector 29 and its role in the economy of Italy. 2.2 Structure, Functions and Business Activities of selected 52 Industry / Sector / Company 3.1 Comparative Position of selected Industry / Sector / 68 Specific Company / Product with India and Gujarat 3.2 Present Position and Trend of Business (import / export) 79 with India / Gujarat during last 3 to 5 years 4.1 Policies and Norms of selected country for selected 84 Industry/company for import / export including licensing / permission, taxation & Policies and Norms of India for Import or export to the selected country including licensing / permission, taxation etc

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4.2 Present Trade barriers for import / Export of selected 93 goods 5.1 Potential for import / export in India / Gujarat Market 99 5.2 Business Opportunities in future 108 5.3 Suggestion & Conclusion 120 6 Plagiarism Test Report 132

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PART - I

1. ECONOMIC OVERVIEW OF THE ITALY COUNTRY 1.1 Demographic Profile of the Italy Population 61,016,804 (July 2011 est.)

Age structure

0-14 years: 13.8% (male 4,315,292/female 4,124,624) 15-64 years: 65.9% (male 19,888,901/female 20,330,495) 65 years and over: 20.3% (male 5,248,418/female 7,109,074) (2011 est.)

Population growth rate

0.42% (2011 EST.)

Birth rate

9.18 births/1,000 population (2011 est.)

Death rate

9.84 deaths/1,000 population (July 2011 est.) Urbanization

Urban population: 68% of total population (2010)

Rate of urbanization: 0.5% annual rate of change (2010-15 est.)

Sex ratio At birth: 1.059 male(s)/female Under 15 years: 1.06 male(s)/female

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15-64 years: 1.03 male(s)/female 65 years and over: 0.72 male(s)/female Total population: 0.96 male(s)/female (2011 est.)

Infant mortality rate

Total: 3.38 deaths/1,000 live births Male: 3.59 deaths/1,000 live births Female: 3.16 deaths/1,000 live births (2011 est.)

Nationality

Noun: Italian(s) Adjective: Italian

Ethnic groups

Italian (includes small clusters of German-, French-, and Slovene- in the north and Albanian-Italians and Greek-Italians in the south)

Religions

Protestant and Jewish communities and a growing Muslim immigrant community)

Languages

Italian (official), German (parts of Trentino-Alto Adige region are predominantly German speaking), French (small French-speaking minority in Valle d'Aosta region), Slovene (Slovene-speaking minority in the -Gorizia area)

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Literacy

Definition: age 15 and over can read and write Total population: 98.4% Male: 98.8% Female: 98% (2001 census)

Education expenditures

4.3% of GDP (2007)

Health expenditures

5.1% of GDP (2009)

1.2 Economy - overview of Itlay

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15% of GDP.

These activities are most common within the agriculture, construction, and service sectors. Italy has moved slowly on implementing needed structural reforms, such as reducing graft, overhauling costly entitlement programs, and increasing employment opportunities for young workers, particularly women. The international financial crisis worsened conditions in Italy's labor market, with unemployment rising from 6.2% in 2007 to 8.4% in 2010, but in the longer-term Italy's low

6 fertility rate and quota-driven immigration policies will increasingly strain its economy. A rise in exports and investment driven by the global economic recovery nevertheless helped the economy grow by about 1% in 2010 following a 5% contraction in 2009.

The Italian government has struggled to limit government spending, but Italy's exceedingly high public debt remains above 115% of GDP, and its fiscal deficit - just 1.5% of GDP in 2007 - exceeded 5% in 2009 and 4% in 2010, as the costs of servicing the country's debt rose.

Among the G8 nations, Italy is the only one that does not have nuclear power plants. In consideration of the extremely high dependence on imports of methane and oil – which are constantly increasing in price – and the growing emissions of CO2 (greenhouse effect), the antinuclear front is starting to 1back down.

Economy of Italy: Rank 8th (nominal) / 10th (PPP) Currency (EUR), except in Campione d'Italia (CHF) calendar year Trade organizations EU, WTO (via EU membership) and OECD

Statistics: GDP $2.055 trillion (2010)[1] (nominal; 8th) $1.773 trillion (2010)[1] (PPP; 10th) GDP growth 1.1% (2010) GDP per capita $35,435 (2009) (nominal; 21st) $29,109 (2009)[4] (PPP; 27th) GDP by sector Agriculture: 1.8%; industry: 24.9%; services: 73.3% (2010 est.) (CPI) 1.4% (2010 est.)

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Gini index 36 (2009)

Labour force 25.05 million (2010 est.) Labour force by occupation Services (65.1%), Industry (30.7%), Agriculture (4.2%) (2005) Unemployment 8.4% (Feb. 2011) Average gross salary 2,521 € / 3,403 $, monthly (2006)

Public finances

Public debt 118.1% of GDP (2010 est.) Revenues $960.1 billion (2009 est.). Expenses $1.068 trillion (2009 est.) Economic aid $2.48 billion, 0.15% of GDP(2004)

Credit rating Standard & Poor's: A (Domestic), A (Foreign) AAA (T&C Assessment) Outlook: Negative

Moody's: A2 Outlook: Stable

Fitch: AA- Outlook: Positive Foreign reserves US$165.796 billion (March 2011)

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1.3 Overview of Industries Trade and Commerce

Renewable Energy Trade Mission for Italian Companies October 19-23, 2010

This crucial event will be held this Fall in Philadelphia in conjunction with the World Green Energy Symposium & Expo.

Your enrollment fee for this event includes:

 Ticket to the Symposium  Tour to a wind powered facility

 A full-day event with special workshops: o Morning session with representatives of the State of Pennsylvania, the City of Philadelphia, and Italian and US institutions o Afternoon session: B2B meetings and network with matching Italian and American companies  Complete information of PA State incentive program

 Complete list of participants with contact information sent to you after the Expo

 One year IACCGP Corporate Membership.

Italy's is fast developing one of the world's most diversified energy portfolios. Ernst & Young looks at how heavy investment in renewable energy combined with a strong push towards gas and the reintroduction of nuclear plants is behind Italy's energy diversity.

Although Italy is still relatively dependent on fossil fuel resources, it has rapidly increased its gas and renewable resources in the last ten to 15 years in an attempt to fast its reputation as one of the most diversified power nations in

9 the world. Compared to other G8 countries, in particular and the US, Italy has a notable historic absence of nuclear resources and therefore appears slightly behind in terms of diversifying its energy portfolio.

Description According to the 2008 BP Statistical Energy Survey, Italy had proved oil reserves of 0.781 billion barrels at the end of 2007 or 0.06 % of the world's reserves. According to the 2008 BP Statistical Energy Survey, Italy produced an average of 121.6 thousand barrels of crude oil per day in 2007, 0.15% of the world total and a change of 1.5 % compared to 2006. Italy is a large consumer and importer of oil. According to the 2008 BP Statistical Energy Survey, Italy consumed an average of 1745.06 thousand barrels a day of oil in 2007, 2.1% of the world total and a change from 2006 of -67.08 tbpd. is the largest oil and natural gas company in Italy.

Over the past decade natural gas consumption has grown rapidly. According to the 2008 BP Statistical Energy Survey, Italy had 2007 proved natural gas reserves of 0.08 trillion cubic metres, 0.05% of the world total, and natural gas production of 8.9 billion cubic metres, 0.3% of the world total. During the same period, Italy consumed of 77.83 billion cubic metres of natural gas, 2.65% of the world total.

In April 2007, the and representatives of seven European governments signed an agreement to begin construction of the Pan-European Pipeline (also known as the Constanta-Trieste Pipeline), which would link Constanta, Romania with Trieste, Italy, allowing crude oil from the Black Sea region to bypass the congested Bosporus Straits.

According to the 2008 BP Statistical Energy Survey, Italy had a 2007 refinery capacity of 2329 thousand barrels a day, 2.64% of the world total.

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Key Insights into the Oil & Gas Sector of Italy

The latest Italy Oil & Gas Report from BMI forecasts that the country will account for 12.7% of developed European regional oil demand by 2010, while contributing 3.3% to supply. In Developed Europe, overall oil consumption reached 14.18mn barrels per day (b/d) in 2005. It is set to rise to around 14.83mn b/d by 2010. In terms of natural gas, the Developed Europe region last year consumed 436bn cubic metres (bcm), with demand of 519bcm targeted for 2010, representing 19.2% growth. Production of 282bcm in 2005 should fall to 277bcm in 2010, which implies net imports rising from last year's 154bcm to some 242bcm by the end of the period. Italy's share of gas consumption in 2005 was 18.1%, while it contributed 4.3% to production. By 2010, its share of gas consumption is forecast to be 18.5% and it will make a 4.0% contribution to supply.

Assuming an uneventful Q4, we are now predicting an OPEC basket price for 2006 averaging US$61.10/bbl – an increase of US$1.10 from our June forecast. This also represents a 19% rise from the FY05 average. Our forecasts for the US, Brent and Urals are US$66.40, US$65.40 and US$61.60/bbl respectively. For 2007, we continue to assume an OPEC basket price of US$50/bbl, which implies US$55.40 for the US, US$53.40 for Brent and US$49.50 for Urals. Prices are then forecast to fall by around US$5/bbl in 2008-2010, with the OPEC price averaging US$45/bbl over the period.

Italian real GDP growth is now forecast by BMI at just 0.8% for 2006, up from 0.1% in 2005. We are assuming 1.7% growth in 2007, 2.0% in 2008, followed by 1.4% in 2009 and 1.2% in 2010. By 2010, we expect to see the country consuming 1.88mn b/d of oil. A steady rise in domestic oil production is expected. We are assuming oil production of 180,000b/d in 2007/2008, but imports are set to reach 1.72mn b/d by 2010. Use of gas in power generation is the key to demand growth and consumption looks set to reach 96.1bn cubic metres (bcm) by 2010. Imports are likely to have reached 85bcm at this stage.

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Our long-term political score is 82.5, well above the global average of 62.9 and the regional average of 72.5, while just below the rating for France. Only has a lower score in our universe of developed European countries. Our long- term economy rating is 65.8, which compares with a global average of 60.8, a regional average of 61.4, and is the lowest in the group of countries. Our business environment rating is 55.2 – again the lowest in the group and comparing unfavourably with a regional average of 57.1. Italy has a privatised energy sector operating under EU guidelines. There is a significant upstream oil and gas segment featuring domestic and foreign operators. Downstream oil is highly competitive and involves a mixture of international oil companies (IOCs) and domestic companies. Both the gas and power markets are privatised and open to competition.

Coverage includes:

Executive Summary

Summary of key forecasts and industry analysis, covering oil and gas reserves, supply, demand, refining, coal and power, and primary energy, plus analysis of landmark company developments and key changes in the regulatory environment.

Regional Overview

Regional perspective on size and value of industry sector; comparative rankings by production, refining, imports and exports; overview of industry landscape and key players; assessment of business operating environment and latest regulatory developments.

Business Environment Rankings

A unique comparative study on the relative business climates across all regional markets covered. A rankings table highlights the merits of each market from an

12 investor angle, giving scores for indicators such as Oil & Gas Supply and Demand Growth, Oil & Gas Reserves, Licensing Framework and the local Competitive Environment, as well as Economic and Political Risk.

Oil Market Outlook

Analyzes and forecasts oil prices out to 2011, monitoring supply and demand in terms of oil production and consumption across the region.

Competitive Landscape & Rankings

Comparative company analyses and rankings by US$ sales, % share of total sales, number of employees, year established, market cap/NAV, ownership structure, oil production (‘000 b/d) and % market share, downstream capacity (‘000 b/d) and % market share.

Company Profiles & SWOTS

Company profiles, including SWOT analyses, senior executives and full contact details, business activity, products and services, foreign direct investments and projects.

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1.4 Overview Different economic sectors Energy and natural resources

Italy has few natural resources. There are no substantial deposits of iron, coal, or oil. Proven natural gas reserves, mainly in the Po Valley and offshore Adriatic, have grown in recent years and constitute the country's most important mineral resource. Most raw materials needed for and more than 80% of the country's energy sources are imported. The energy sector is highly dependent on imports from abroad: in 2006 the country imported more than 86% of its total energy consumption (99.7% of the solid fuels demand, 92.5% of oil, 91.2% of natural gas and 15% of electricity).

However, in the last decade, Italy has became one of the world's largest producers of renewable energy, ranking as the world’s fifth largest solar energy producer in 2009 and the sixth largest producer of wind power in 2008.

Italy has managed four nuclear reactors until the 1980s, but in 1987, after the , a large majority of Italians passed are freedom opting for phasing out nuclear power. The government responded by closing existing nuclear power plants and stopping work on projects underway, completely putting a halt to the national nuclear program. Currently, the majority of Italian electricity is produced gas, oil, coal, and hydro. Italy also imports about 16% of its electricity need from France for 6.5 G We which makes it the world’s biggest importer of electricity. Due to its reliance on expensive fossil fuels and imports, Italians pay approximately 45% more than the EU average for electricity.

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In 2004, a new brought the possibility of joint ventures with foreign companies to build nuclear power plants and import electricity. Public opinion on nuclear power was positive; as Italy’s younger generations embraced nuclear energy. In 2005, Italy’s power company, made an agreement with Electricity de France for 200 M We from a nuclear reactor in France and potentially an additional 1,000 M We from new construction. As part of the agreement, ENEL received a 12.5% stake in the project and direct involvement in design, construction, and operation of the plants. In another move, ENEL also bought 66% of the Slovak Electric utility that operates six nuclear reactors. As part of this agreement, ENEL will pay the Slovak government EUR 1.6 billion to complete a nuclear power plant in Mochovce, which has a gross output of 942 M We. With these agreements, Italy has managed to access nuclear power without placing reactors on Italian territory.

Agriculture

The northern part of Italy produces primarily maize corn, rice, sugar beets, , meat, fruits and dairy products, while the south specializes in wheat and fruits. Italy is the first or the second largest producer of wine in the world, and one of the leading in oil, fruits (apples, oranges, lemons, pears, apricots, peaches, cherries, strawberries, kiwi), flowers and vegetables.

According to the Agriculture Census, there were 2.6 million farms in 2000 (down from 3 million in 1990,) covering 19.6 million hectares. The vast majority (94.7%) are family-operated and small, averaging only 5 hectares in size. Of the total surface area in agricultural use (forestry excluded,) grain fields take up 31%, olive tree orchards 8.2%, 5.4%, citrus orchards 1%, other orchards 3.8%, sugar beets 1.7%, and horticulture 2.4%. The remainder is primarily dedicated to pastures (25.9%) and feed grains (11.6%.) Livestock includes 6 million head of cattle, 8.6 million head of swine, 6.8 million head of sheep, and 0.9 million head of goats.

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Transport

In 2004 the transport sector in Italy generated a turnover of about 119.4 billion , employing 935,700 persons in 153,700 enterprises. Regarding to the national road network, in 2002 there were 668,721 km (415,612 mi) of serviceable roads in Italy, including 6,487 km (4,031 mi) of motorways, state- owned but privately operated by company. In 2005, about 34,667,000 passenger (equal to 590 cars per 1,000 people) and 4,015,000 road good circulated on the national road network.

The railway network in Italy totalled 16,862 kilometres (2008) of which 69% are electrified and on which 4,937 locomotives and railcars circulate. It is the 15th largest in the world, and is operated by Ferrovie dello Stato. High speed trains include ETR-class trains, with the ETR 500 reaching 300 km/h (190 mph).

A secondary purpose is to introduce high-speed rail to the country's high-priority corridors, namely the -Naples and -Milan-Venice lines. With these plans realised, the Italian rail network would be integrated with other European rail networks, particularly the French TGV, German ICE, and Spanish AVE systems. In 2005, about 34,667,000 passenger cars (equal to 590 cars per 1,000 people) and 4,015,000 road good vehicles circulated on the national road network.

The national inland waterway network comprised 1,477 km (918 mi) of navigable rivers and channels in 2002. In 2004 there were approximately 30 main airports (including the two hubs of Malpensa International in Milan and Leonardo da Vinci International in ) and 43 major seaports including the seaport of , the country's largest and the second largest in the after Marseille. In 2005 Italy maintained a civilian air fleet of about 389,000 units and a merchant fleet of 581 .

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Banking

Banking in Italy has, as of the 11th October 2008, an average assets/liabilities ratio of 12 - 1, while the banks's short-term liabilities are equal to 86% of the Italian GDP or 43% of the Italian national debt.

This is a list of the top 10 Italian banks ranked by market capitalization.

Market Capitalization Rank Company (€)

1 UniCredit 81.39 billion

2 69.2 billion

3 12.38 billion

4 UBI Banca 11.5 billion

5 11.34 billion

Monte dei Paschi di 6 11.32 billion

Siena

7 Banca CR Firenze 5.3 billion

Banca Popolare di 8 4.3 billion

Milano

9 Banca Carige 3.9 billion

10 Credito Emiliano 2.8 billion

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1.5 Overviews of Business and Trade at International Level The global energy industry has seen a paradigm shift in terms of reconciling the dynamics of finite oil resources, spiraling energy demand, and the complex geopolitical currents within which oil and gas production strategies are determined. Limited refinery capacities (82.8 mmbd in 2005 and 2025 demand projected at 115.5 mmbd), limited heavy crude processing capabilities, aging and limited number offshore rigs, new environmental regulations, blockbuster profits/cash reserves for oil companies, and technology hopes are fueling:

- Significant investments in conventional and unconventional energy sources (wind turbine energy revenue up is up 25% and non-hydro renewable technologies on track to be six percent of the world's power generation by2030); New equity investors; - Larger integration/consolidation of the day-to-day business of upstream

Around the world, energy and utilities companies face less state control and are slowly moving towards a free market. In the energy sector this process has taken shape; the waste-disposal industry is in a transition phase, and water companies are just at the dawn of this maturation. The strain caused by this transformation is enormous and affects all areas: finance, performance, administrative regulations, tax, and marketing and information technology. Within a short time companies are preparing themselves for a worldwide market because a decontrolled utility market is a global game.

The rapidly increasing energy consumption level in the developing world is going to be the key growth driver for the global energy market. Energy demand in the developing countries of Asia, which includes and India, is expected to increase by more than 100% by 2025. The industrialized world is expected to register a much slower growth rate of energy consumption due to its more mature market and energy-efficient industrial operations.

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The world economic recovery continues, according to the latest IMF “World Economic Outlook” published in April 2011, at a forecasted pace of 4.4% in 2011 and 4.5% in 2012. However, advanced economies will grow at a meager 2.5%, still conditioned by high levels of unemployment and public debt. Conversely, emerging and developing economies are projected to grow at a much higher rate (6.5% per year), thanks to booming internal demand, robust public investments and job creation, and strong export activities.

Many of the earlier fears for a “double-dip” recession have dissolved, and the economic growth has proven surprisingly resilient. Indeed, now that the fiscal stimulus is gradually receding in many OECD countries, private demand has stepped up, and it is playing a primary role in sustaining the pace of industrial activity.

In the above macro-economic context, experts forecast a balanced outlook for oil markets, with trends in oil products’ consumption expected to remaining robust (in particular for middle distillates, which have the closest link with the economic cycle), and oil inventory levels rapidly decreasing, on a global scale.

1.6 Present Trade Relations And Business Volume of different products with India

Indian Exports to Italy Italy comes in the fifth position in the EU when it comes to trade with India and also with regards to investment; Italy is on the 13th position. Bilateral trade between India and Italy has registered an increase over the last many years; but unfortunately the recession in the economy on a global basis in 2009 resulted in a downfall in the trade between two countries.

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Bilateral Trade figures have touched Euro 5,657.1 million. While the export figures reached Euro 2,906.9 million but in comparison to 2008, there has been a decrease of 15.23% in 2009.

As of 2009, the imports from Italy showed a decrease of 10.99% in comparison to 2008 and the figures stood at Euro 2,750.2 million. Bilateral trade balance over all remained in India’s favour.

India's exports to Italy deal mainly in , including cotton and synthetic yarns and fabrics, readymade garments, motor vehicles, footwear, iron and steel, leather and leather goods and many other items.

General and special purpose machinery, chemical products, auto components, pharmaceutical and medicinal products, general hardware, plastic and many other products are imported from Italy by India.

Trade between India- Italy

- Figures of trade between both the nations has increased over the years till 2008 when it registered a total turnover of 6,520.1 Euro million which reduced to 5, 657,1 Euro million in 2009. - between the two nations remained 337.9 Euro million till 2008 which showed a decline in 2009 and was recorded as 156.7 Euro million. Total Italian exports till 2009 has accounted to Euro 290,112 million of which India has a share of 0.95%. - Some of the Commodities exported to Italy and their value in Euro million have been listed below:

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Particulars Amt(in euro) Refined Petroleum Products 128.4 Euro million Motor Vehicles 335.8 Euro million Wearing apparel 389.3 Euro million Basic Chemical Products 236.3 Euro million

Basic iron and steel and Ferro-alloys 193.6 Euro million

Footwear 164.6 Euro million

Textile Products n.e.c 129.4 Euro million

General purpose machinery 95.8 Euro million

Textile yarn and thread 91.4 Euro million : Leather and leather products 85.0 Euro million Parts and accessories for motor 83.1 Euro million vehicles and their engines Products of permanent crops 82.5 Euro million Processed and preserved fish and 63.9 Euro million fish products Other metal products n.e.c 59.0 Euro million Textile fabrics 56.6 Euro million Jewellery and related articles 52.3 Euro million Basic Pharmaceutical Products 48.5 Euro million Sand and clay 45.4 Euro million

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The Following Items imported from Italy by India

Find the list of the items imported by India and their value in Euro million- Particulars Amt(in Euro million) Special Purpose Machinery 496.1 Euro million

General purpose machinery 316.5 Euro million Other general machinery 216.9 Euro million Other metal products 152.5 Euro million Basic chemical products 145.9 Euro million Parts and accessories for motor 121.5 Euro million vehicles and their engines

Machine tools 113.9 Euro million Tubes and related accessories 90.3 Euro million Instruments and appliances for 87.0 Euro million checking, testing and navigating Electric motors, generators and 82.2 Euro million transformers; electricity distribution and control apparatus

Basic iron and steel and ferro-alloys 60.8 Euro million Leather and leather products 90.3 Euro million

Other chemical products 41.4 Euro million

Pulp, paper and paperboard 39.1 Euro million

Aircraft and spacecraft 36.9 Euro million

Plastic products 31.3 Euro million

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 Ever since the liberalization of the Indian economy in 1991, new opportunities for commerce, trade, and investments have come up between India and Italy. Bilateral trade between Italy and India has been making tremendous progress and Italy has emerged as India's fourth biggest export market in the EU.  In 2006, Italy was ranked as the 7th largest economy in the world, in terms of GDP. In the same year, Italy's per capita GDP was US$ 30,200. One of the main reasons for such growth was Italy's trade relations with India.

The Following Items exports by India to Italy

- Readymade garments - Textiles - Yarns - Leather products - Chemicals and dyes - Iron ore - Marine products - Agricultural and engineering items - Gems and jewelry - Carpets - Coffee - Pharmaceuticals.

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The above export items account for about 90% of Indian exports to Italy. Other products that make up Indian exports to Italy include silk, furnishing, and linen. Even though trades in these goods are doing exceedingly well, trade in some products has declined, due to poor quality, such as contaminated seafood. Italy is yet to to lay down microbiological standards for the same.

The main items exported by Italy to India:

- Machinery and capitals goods - Medium oil and gas oil - Non-electrical equipment - Engineering items - Precision tools - Metallurgical products - Chemical and pharmaceutical products - Iron and steel laminates

1.7 PESTEL Analysis

Political Factors in Italy

- It deal with governmental policies which has a great influence to the economics in a country. It is a macro aspect of an analyse which key changes to the policies making. The policies have great influence to the business sectors and confidence of investors. - Reduction in import duty of floor tiles for ceramic industry can have its fair share of influence to the industry. It is viewed as positive to the local ceramic manufacturer as imported tiles are more costly. However, it is negative impact to an importers such as traders of such a product - On June 2nd, 1946 Italy, which was previously a Monarchy ruled by the same house which had ruled Italy since the early 1800’s. After the results of a popular referendum which was intended only to determine whether

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the Head of State should be elected by popular vote or come from a family dynasty. In either case, The Head of State, would appoint members of the government, but not govern personally.

- The Italian republic is democratically represented by the parliament. The President of the republic is elected for a period of 7 years by parliament and then nominates the Prime Minister who proposed the other ministers, pending the approval of the President who officially nominates them. - The Judiciary is independent of the executive and the legislature. As such, the President represents the unity of the nation and carries several responsibilities previously given to the King of Italy. He is elected by the lawmakers, appoints the executive and is the president of the judiciary. He is also the commander in chief of the armed forces. - The President is also of the Italian Constitution and can as such openly reject anti-constitutional laws by refusing to sign them. - National elections appoint the parliament with the exception of some life senators, currently 7 (three of which are previous Presidents) and are elected for a maximum of five years. There are about a hundred provinces in twenty regions in the Italian State, these regions being considered in the Italian Constitution. A prefect oversees each province and represents, reports and is appointed by the central government.

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Economy

The economic is an area in a macroeconomic environment. It can affect the business outlook and its competitiveness. Some key factors of macroeconomic are economic growth, exchange rate, interest rate, etc, All these factors have an effect to the profitability and cost of doing business in that business sector..

- Italy has a free market economy characterized by high per capita GDP and low unemployment rates. In 2010, it was the eighth- largest economy in the world and the fourth-largest in Europe in terms of nominal GDP, and the tenth-largest economy in the world and fifth- largest in Europe in terms of PPP. It is a founding member of the G8, the Euro zone and the OECD.

Infrastructure

In 2004 the transport sector in Italy generated a turnover of about 119.4 billion Euros, employing 935,700 persons in 153,700 enterprises.

Socio-culture

- Italians have been in Windsor for more than a hundred years. The majority of the Italian immigration in Canada, especially in Windsor, took place after the War. - When Italians came to this whole new country, they tried to keep and preserve the customs, traditions, and lifestyle lived for generations, but they also tried to adjust to this new life. As time passed the subsequent generations started to be more Canadian than Italian. - Learning more about Italian social-cultural and spiritual life will help in the rediscovery of the language and the traditions. Italians have a definite imprint in the fabric of Canadian society. - They have their media-radio, print and television which has played an important role within the community. They have helped maintain the Italian language and culture while keeping listeners, readers and viewers up-to-date on news and events within the Italian community

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in Canada, Italy and the world. - In the meantime, Italians have added their talents to the Canadian culture. They represent their Italian origins in writing, painting, music, acting, photography, etc. Also, Italian-Canadians are well represented in sports, business, and politics.

Technological

The acceleration of technological progress in recent years is due to a number of different factors.

- First and foremost, the development of microelectronics has facilitated more rapid advances in process and product technologies, with the widespread application of IT to plant and machinery. - Secondly, the economic crisis and growing turbulence of the markets have posed a dual challenge to enterprises: on the one hand the necessity of rapid recoveries in productivity in order to keep abreast of international levels of competition, and on the other hand a need for sufficient flexibility in internal production to cope with the greater variability of demand. In Italian industrial relations, technological innovation is an issue for collective bargaining, mainly because of its direct impact on employment, personnel classification and job content and design. Consequently, in national multi-industry agreements, industry-wide agreements and company agreements increasing attention has been paid to technological innovation in recent years.

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Legal

Law and criminal justice

- The Supreme Court of Cassation is the highest court in Italy for both criminal and civil appeal cases. The Constitutional Court of Italy rules on the conformity of laws with the Constitution and is a post–World War II innovation.

- Since their appearance in the middle of the 19th century, Italian organized crime and criminal organizations have infiltrated the social and economic life of many regions in , the most notorious of which being the Sicilian Mafia, which would later expand into some foreign countries including the . The Mafia receipts may reach 9% of Italy's GDP.

- A 2009 report identified 610 comuni which have a strong Mafia presence, where 13 million Italians live and 14.6% of the Italian GDP is produced.

- The Calabrian 'Ndrangheta, nowadays probably the most powerful crime syndicate of Italy, accounts alone for 3% of the country's GDP. However, at 0.013 per 1,000 people, Italy has only the 47th highest murder rate (in a group of 62 countries) and the 43rd highest number of rapes per 1,000 people in the world (in a group of 65 countries), relatively low figures among developed countries.

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PART – II

INDUSTRY / SECTOR /COMPANY / PRODUCT/ SERVICE/NEW VENTURE SPECIFIC STUDY

2.1 INTRODUCTION OF THE SELECTED COMPANY / INDUSTRY / SECTOR AND ITS ROLE IN THE ECONOMY OF SPECIFIED COUNTRY.

CERAMIC INDUSTRY

The ceramic manufacturing industry produces ceramic products, which are inorganic materials (with possibly some organic content) made up of non-metallic compounds and made permanent by a firing process. In addition to clay based materials, today ceramics include a multitude of products with a small fraction of clay or none at all.

A ceramic is an inorganic, nonmetallic solid prepared by the action of heat and subsequent cooling. Ceramic materials may have a crystalline or partly crystalline structure, or may be amorphous (e.g., a glass). Because most common ceramics are crystalline, the definition of ceramic is often restricted to inorganic crystalline materials, as opposed to the non crystalline glasses.

The earliest ceramics were pottery objects or 27,000 year old figurines made from clay, either by itself or mixed with other materials, hardened in fire. Later ceramics were glazed and fired to create a colored, smooth surface. Ceramics now include domestic, industrial and building products and art objects. In the 20th century, new ceramic materials were developed for use in advanced ceramic engineering; for example, in semiconductors.

The word "ceramic" comes from the Greek word κεραμικός (keramikos), "of pottery" or "for pottery" from "potter's clay, tile, pottery".The earliest mention of the root "ceram-" is the Mycenaean Greek ke-ra-me-we, "workers of ceramics", written in Linear b syllabic script "Ceramic" may be used as an adjective

29 describing a material, product or process; or as a singular noun, or, more commonly, as a plural noun, "ceramics".

TYPES OF CERAMIC PRODUCTS:

For convenience, ceramic products are usually divided into four sectors; these are shown below with some examples:

 Structural, including bricks, pipes, floor and roof tiles  Refractories, such as kiln linings, gas fire radiants, steel and glass making crucibles .  Whitewares, including tableware, cookware, wall tiles, pottery products and sanitary ware .  Technical, is also known as engineering, advanced, special, and in Japan, fine ceramics. Such items include tiles used in the Space Shuttle program, gas burner nozzles, ballistic protection, nuclear fuel uranium oxide pellets, biomedical implants, coatings of jet engine turbine blades, ceramic disk brake, missile nose cones, bearing (mechanical). Frequently, the raw materials do not include clays.

Classification of technical ceramics:

Technical ceramics can also be classified into three distinct material categories:

A. Oxides: alumina, beryllia, ceria, zirconia B. Nonoxides: carbide, boride, nitride, silicide C. Composite materials: particulate reinforced, fiber reinforced, combinations of oxides and nonoxides.

Types of ceramic materials:

A ceramic material is an inorganic, non-metallic, often crystalline oxide, nitride or carbide material. Some elements, such as carbon or silicon, may be considered

30 ceramics. Ceramic materials are brittle, hard, strong in compression, weak in shearing and tension. They withstand chemical erosion that occurs in other materials subjected to acidic or caustic environments. Ceramics generally can withstand very high temperatures, such as temperatures that range from 1,000 °C to 1,600 °C (1,800 °F to 3,000 °F). A glass is often not understood as a ceramic because of its amorphous (noncrystalline) character. However, glass making involves several steps of the ceramic process and its mechanical properties are similar to ceramic materials.

Traditional ceramic raw materials include clay minerals such as kaolinite, whereas more recent materials include aluminium oxide, more commonly known as alumina. The modern ceramic materials, which are classified as advanced ceramics, include silicon carbide and tungsten carbide. Both are valued for their abrasion resistance, and hence find use in applications such as the wear plates of crushing equipment in mining operations. Advanced ceramics are also used in the medicine, electrical and electronics industries.

Crystalline ceramics:

Crystalline ceramic materials are not amenable to a great range of processing. Methods for dealing with them tend to fall into one of two categories – either make the ceramic in the desired shape, by reaction in situ, or by "forming" powders into the desired shape, and then sintering to form a solid body. Ceramic forming techniques include shaping by hand (sometimes including a rotation process called "throwing"), slip casting, tape casting (used for making very thin ceramic capacitors, e.g.), injection molding, dry pressing, and other variations. Details of these processes are described in the two books listed below. A few methods use a hybrid between the two approaches.

Non crystalline ceramics:

Non crystalline ceramics, being glasses, tend to be formed from melts. The glass is shaped when either fully molten, by casting, or when in a state of toffee-like

31 viscosity, by methods such as blowing to a mold. If later heat treatments cause this glass to become partly crystalline, the resulting material is known as a glass- ceramic, widely used as cooktop.

PRODUCTION PROCESS

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ALL ABOUT RICHARD GINORI S.p.A

Richard Ginori 1735 – example in Italy and in the world of excellence in the production of artistic and high-end porcelain– chose Macef International Home Show 2012 as the most prestigious occasion to present its new collections, promoting through its distinctive character the tradition and the know-how of Ginori.

An authentic tribute that Richard Ginori 1735 reserves to the “” and to Milan Macef. In order to support the Italian entrepreneur scenery the Maison will exclusively participate to the upcoming edition of Macef International Home show, promoted by the Milan Fair organization.

In fact, Richard Ginori 1735 chose the 2012 January edition of the International Home Show dedicated to interiors as its unique venue to introduce to the world its new collections. Richard Ginori 1735 decided in 2012 to promote the Made in Italy and to support Macef as the widest Italian tradeshow for tableware and home interior complements.

At Macef, Richard Ginori 1735 will introduce the new 2012 collections within its dedicated space. Design and style will reproduce not only the historical factory of Doccia, but also will offer the opportunity to experience the concept of “factory for ideas” where all Richard Ginori items are conceived in a perfect fusion of traditional knowledge and knowhow, timeless union between handicraft and industry.

To confirm the tight and long lasting liaison with the world of fashion, Richard Ginori 1735 will dedicate a space to the design and originality of the partner brand Missoni.

A wonderful temporary installation designed for the occasion by Richard Ginori 1735 will welcome visitors at the East Door of the Macef in Rho, while throughout Milan in the heart of fashion district Richard Ginori 1735 will expose its unique pieces within fashion shop and windowcase.

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The merger of Richard and Ginori initiated a new era in 1896. In 1965, Italian Ceramic Society (SCI) of Laveno was taken over by the Richard- Ginori Group and the Richard-Ginori Italian Ceramic Society was founded. It became the largest procelain manufacturer in Italy.

Popular Product Lines

 Vecchio White

It shows fixed popularity as the oldest series of Richard Ginori's. It has a beautiful sheen & brightness like the surface of seashells.

 Clipper

The pattern in the motif of flag signaling used on sailing ships, is simple and modern. Small blue, yellow, and red flags flutter on the Ginori's original white background

 Italian Fruits

The pattern was publicized around 1760, but the bright and fresh motif still has a great popularity over the course of 230 years. It is a long selling series.

A Table Lamp by Richard-ginori:

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An Italian porcelain table lamp from the design house of Richard- Ginori. The elegant lamp of well balanced proportion. The design drawn from classical antiquity. The lamp standing on a square based plinth with a matt gilded wide rim. The lamp base with gilded "bound reed" molding. The elliptical vase shape enameled in a deep royal blue and decorated with a circular gold rimmed white reserve. The reserve with a puce, well drawn classical figure of a Roman muse.

The lamp terminating in swag molded and gilded neck and surmounted by a domed cover/lamp holder".

HOTEL INDUSTRY

Overlooking the panorama that has inspired visitors for centuries is Rome's most prestigious address – the Rome Cavalieri hotel. Though only minutes from the city's great monuments, the Rome Cavalieri has the tranquillity of an oasis. Enclosed in fifteen acres of lush Mediterranean parklands, this luxury hotel is a calm retreat in the heart of the Eternal City, an elegant refuge where time slows and hearts quicken.

The first hotel in Europe to be part of the exclusive Waldorf Astoria Hotels & Resorts, the Rome Cavalieri hotel is more than just a 5–star property. It's the pre- eminent luxury hotel in Rome, with an art collection that outshines many museums, a Grand Spa that would be the envy of a prestige health resort, and standards of luxury that set it apart from other Rome hotels. The Rome Cavalieri brings new meaning to notions of Italian style, and new purpose to the fine art of exclusive hospitality.

The Rome Cavalieri - an unforgettable experience, in the most memorable of places.

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MEDIA INDUSTRY

Mediaset S.p.A., known as Gruppo in Italian, is an Italian-based media company which is the largest commercial broadcaster in the country. Founded in the 1970s by former Italian prime minister and still controlled today with a 38.6% stake by his family holding company Fininvest, the group competes primarily against the public broadcaster and market leader RAI, La7, and News Corporation's Sky Italia.

Mediaset's headquarters are in Milan, . Many of its studios are located in the Milano 2 area of Segrate, a municipality bordering Milan, where broadcasts of local station TeleMilano (now airing nationally as Mediaset's Canale 5) began in 1978. After merging with various local broadcasters to form the Canale 5 syndication, much production was moved to Cologno Monzese, where the infrastructure of the former Telealtomilanese was present. The company currently has three main television production centers, in Segrate, Cologno Monzese and Rome.

Due to their proximity to (or encirclement by) Italy, , , , San Marino, the Vatican City and also receive Mediaset broadcasts.

In addition to its domestic television interests, Mediaset also operates a series of news, entertainment and sport websites; holds 50.1% of the Spanish broadcasting firm Mediaset España Communication; and heads a consortium which owns the television production house Endemol.

HISTORY OF MEDIASET

1978: Mediaset Group's story began almost thirty years ago, in 1978, with TeleMilano, a local Milan-based broadcaster that became Canale 5 two years later and began broadcasting nationally. Canale 5 was subsequently joined by Italia 1 (bought from the publishing group Rusconi in 1982) and Retequattro (acquired from Arnold Mondadori Editore in 1984).

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1984 :Television area was called RTI and became established with three national analogue networks, supported by an advertising sales company, Publitalia '80, that exclusively collects advertising for all three channels, and two other companies, Video time, that manages TV technology and production activities, and Electronic Industrial that guarantees signal distribution through the management of the broadcasting infrastructure.

1996: RTI, Video time, Publitalia and Electronic Industrial were brought together in a single group Mediaset which was then listed on the Milan stock exchange, opening up the company to both important institutional investors and private investors (around 300,000).

1997: Mediaset expands outside Italy with the acquisition of a 25% stake in the Spanish broadcaster, Telecinco.

1999: Mediaset Group expands its web-based activities with Mediaset. It (a television portal dedicated to Canale 5, Italian 1 and Retequattro) and Mediaset Online (in 2001 will became TgCom) , a daily online news service, is accessible from a range of media (internet, TV, radio, Media video teletext and mobile phones).

2003: Mediaset increases its stake in Telecinco and becomes the major shareholder with 50.1% of the shares. The following year the Spanish TV company was listed on the Madrid stock exchange.

2004: With the debut in Italy of digital terrestrial television, an innovative signal broadcasting system that uses standard aerials and a small set-top box. Mediaset launches Booing, a dedicated channel for children, and Media Shopping, a hope shopping channel.

2005: The Group launches , a pay digital terrestrial television service that offers viewers live Series A football, with a pre-paid card and without

37 a subscription. Mediaset Premium also has a pay-per-view offer including films (including first TV-screenings), theatre and live events.

2006: Mediaset builds Europe's first digital terrestrial Mobile TV network using DVB-H (Digital Video Broadcast Handheld) technology.

2007: This was the year of acquisitions and international expansion as Mediaset takes on the look and feel of a major, the only one of its kind in Europe, and:

 in a consortium with Cyrte Fund and Goldman Sachs, buys from Telefonica a controlling interest in Endemol, the Dutch production company and world format leader;

 buys Medusa, Italy's leading film production and distribution company;

 reaches an agreement for the acquisition in acquisition in 2008 of Tao due, a leading Italian producer of high-quality TV drama;

 Enters China, where the 2008 Olympic Games will be held. Mediaset obtains the license to sell advertising for China Global Media which in October launched the sports channel China Sport Network, a consortium of seven regional broadcasters with an audience reach of 400 million viewers. Publiceurope will sell international advertising for the channel;

 Launches a new free digital terrestrial channel, Iris, featuring auteur cinema, music, literature and theatre.

2008: Creation of Premium Gallery, a new digital terrestrial premium content offer available with a pre-paid card. Three new worlds, Joy, Mya, Steel, where viewers can see exclusive previews of the best TV series and films from Time Warner and NBC-Universal. Telecinco enters the North American market with the acquisition of a 29.2% stake in Caribevision, a US broadcaster for the country's

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Spanish-speaking population. On July, the Gallery family is joined by the the Disney Channel end Premium Calico 24 kickoff

At 2008 end, The Premium Gallery offering further improved with the launch of Premium Fantasy, including four proposals dedicated to children and teenagers. In addition to Disney Channel and Disney Channel +1, the expanded offering includes: Playhouse Disney,CartoonNetwork,

In 2008, a joint venture was established between Medusa Film and Tao due, leader in the production of quality TV dramas. The union of these two companies will to the creation of an Italian production unit which will compete with the main international majors.

2009 On 20 November Mediaset Premium will launch a revolutionary new feature in the panorama of Italian television. Premium-On-Demand is an absolutely new service that no other broadcaster currently offers. An authentic digital library that is always available with 50 films, updated daily, and the most celebrated American TV series.

Also 20 November Premium will also launch two new special features dedicated to the cinema: Premium Cinema Emotion and Premium Cinema Energy.

On 18 December 2009 Mediaset S.p.A., the subsidiary Gestevision Telecinco S.A. and Promotora de Informaciones S.A. (Gruppo Prisa) approved and signed an agreement that foresees, conditional upon determined conditions being met, the acquisition by Telecinco of a newly-founded company which will include the company part of Cuatro (a Spanish free-to-air channel owned by Sogecable S.A.) and its shareholding of 22% in Digital Plus.

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2010

From 26 November a new free thematic channel Mediaset Extra directed by Massimo Donelli will be launched. The new channel will be dedicated to the best of the best of Mediaset channels' entertainment programmes from yesterday and today. On 28 December, Telecinco, having met the suspension conditions to which it was subjected, today acquired a 22% stake in "DTS Distribuidora de Televisión Digital SA" ("Digital+") and 100% of the share capital of "Four Television SAU" ("Sogecuatro"), holder, among other things, of the free-to-air channel "Cuatro". This operation resulted in the Mediaset Group becoming Spain?s biggest television operator.

2011

Wednesday 23 February, sees the debut of Premium Net TV, a brand new non-linear "over-the-top" TV system that offers a range and quality of product unmatched by any other operator. Premium Net Tv offers more than 1,000 different contents, also in HD: films, TV series, cartoons, documentaries, football; in addition to all of the Mediaset channels' programmes of the last seven days and the entire offer can be seen also on a PC with the same quality as on TV.

Premium Net Tv is a completely open, independent network system, viewable with any Gold Stamp digital decoder and a broadband connection from any telephone carrier and it is an innovation included in the standard Mediaset Premium subscription, without any additional cost.

From 18 November Italian viewers can access Premium Play, a new TV service which for its technological characteristics, ease of use, quality and freshness of content is an unprecedented innovation with more than 2,000 separate items of content that users are free to manage directly.

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Monday 28 November sees the launch of TgCom24, a new, live, free-to-air, all news channels on channel 51 on the digital terrestrial platform, satellite channel 24 and is also available online in live streaming on the TgCom24.it web site, and on smart phones and tablets thanks to free downloadable applications.

On Wednesday 21 December, DMT and EI Towers announce that - having taken note of the decision of the Italian Anti -Trust Authority of 14 December 2011 - will proceed with the stipulation of the deed of merger by the end of 2011 and the merger will be implemented according to the terms and in the manner resSSolved by the respective general meetings of the two companies.

On Friday30 December, DMT and EI Towers announced the merger by incorporation of EI Towers in Dmt.

FASHION INDUSTRY

The United Colors of Benetton: a company of colors and controversies. Offering the world an insight to fashion, as well as, human equality and world issues, Benetton gives us stylish and innovative promotion. While trying to capture an audience favoring Italian character in style and design, the company additionally desires to present the world with contentious campaigns to awaken thoughts and debates. These controversies are jeopardizing Benetton’s position in the industry, and its reputation of being trendily unique and committing to world harmony.

The United Colors of Benetton (Benetton), an Italian based company, is primarily focusing its business on clothing and controversial advertising. Presented all over the world, the company is available to young and old in combined colors and stylish fashion. In the following pages a complete internal and external analysis of the company will be explained, as well as, a description of the company’s overall standing. The alternatives as seen are described to include the advantages and drawbacks of each alternative.

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Conclusively, a recommendation based upon all of the findings outlined is prescribed.

COMPANY BACKGROUND

Benetton was founded as a single shop in Italy in 1965. Three years later the company expanded into France. Eventually, Benetton spread throughout Europe and by 1979 it was established in the United States. Benetton Group S.p.A is a unique global group that is a part of a larger organization known as the Edizione Holding Group. This is the holding company through which the Benetton family has ownership in many different businesses including hotels, publishing, and real estate. The Edizione Holding Group as well as the Benetton Group was founded by the Benetton family, which is made up of four siblings: Luciano, Chairman; Gilberto, Deputy Chairman and Joint Managing Director; Carlo, Director; and Giuliana, Director, who own and run the company as shown in Exhibit 1. Luciano's son, Alessandro, is also one of the eight Directors.

This global Benetton Group specializes in designing and manufacturing of clothing within the textile-apparel sector of industries, and combines this know- how with the strong identity and image of world-leading sports brands that have been incorporated through the acquisition of the Benetton Sportsystem business. These sports brand names are encompassed under the Playlife label and include Rollerblade, Killer Loop, Prince, and Nordica. The clothing sector includes casual and sportswear, consisting of the Sisley, United Colors of Benetton (UCB), and Undercolors of Benetton brands, which are mainly produced and distributed by the Automated Distribution Center in Castrette, Italy, the factory which produces over 90 million items of clothing each year. There are production facilities in France and Spain as well. These finished and packaged products are the dominant production category for the company and are distributed directly to the Benetton Group's 7,000 retail stores located in 120 countries, of which only 55 stores are owned by the company, with the remaining stores independently

42 owned and operated. The second production category for Benetton comprises the sports equipment and performance-wear item and a third category encompasses items such as footwear, bags, and accessories. Benetton's overall turnover amounts to about 4,000 billion lire. Recently, in 2003, the company initiated an effort to diversify away from its main clothing business by moving to acquire Italian highway operator, Autostrade.

 PRICING AND LOGISTICS In the mid-1990s Benetton adopted a strategy of price-reduction worldwide. The strategy was designed to enable the company to guarantee its clients an ever more suitable and competitive supply of products. Simultaneously, Benetton decreased production costs. This combination of price and cost reductions resulted in an 8 percent increase in both, items produced and sold in 1994. Benetton also has an extensive system of outlet stores in which to sell clothing at significant discounts, as a result of the price cuts.

In the late 1990s Benetton restructured its distribution network in order to implement a new system that would integrate a logistics system in which the warehouses are the system’s junction and are part of the distribution system rather than just places for storing facilities. The new system would eliminate fragmentation of inventories across the world by concentrating the finished goods in three sorting centers, one in the US, one in Italy and one in the Far East. The automatic distribution system handles over 30,000 packages a day and is managed by a 10-member staff, rather than a traditional system that requires a staff of 400. These new automated systems, along with the production facilities, have improved the efficiency and speed of customer service, and reduced transport costs by more than 10 billion lire in 1996. One feature that was crucial to Benetton's success in its early years was its advanced dyeing process, whereby the finished product could be dyed instead of dying the yarn first. As tastes in color changed with the whims of the fashion industry, this innovative dyeing system allowed Benetton to establish a customized production system that keeps up with the latest market trends.

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ENERGY &

The Saras Group operates in the energy sector and is one of the leading independent oil refiners in Europe. With a production capacity of 15 million tons per year (or 300,000 barrels per day), the Saras refinery situated in Sarroch, on the South-Western coast of , accounts for about 15% of Italy’s total refining capacity. It is also one of the biggest and most complex sites in the Mediterranean area, and it enjoys a strategic location at the heart of the main oil routes. Moreover, Saras refinery is regarded as a model of efficiency and environmental sustainability, thanks to a wealth of know-how, technology and human resources accrued in almost 50 years of business.

Both directly and through its subsidiaries Arcola Petrolifera S.p.A. (Italy) and Saras Energia S.A. (Spain), the Saras Group sells and distributes oil products including , gasoline, heating oil, liquefied petroleum gas (LPG), virgin naphtha and aviation fuel on the Italian, European and international markets. In particular, in 2010 approximately 1.7 million tons of oil products were sold in Italy, through our subsidiary Arcola Petrolifera, which operates solely in the wholesale market, and it manages a tank farm for petroleum products owned by the Group, and located in Arcola (La Spezia), with a capacity of 200,000 cubic metres. A further 2.5 million tons of oil products were sold in the Spanish market through Saras Energia, which is active both in the wholesale and in the retail market. More in details, Saras Energia manages a retail network made by 124 service stations, of which 88 fully owned and 36 on long term lease, mainly located on the Spanish Mediterranean Coast. Furthermore, Saras Energia manages also a biodiesel plant, with a capacity of 200.000 tons per year, located in Cartagena (Spain), and perfectly integrated with an oil products tank farm, also owned by the Group, with a capacity of 112,000 cubic metres. During the past decade, the Saras Group expanded from oil refining and marketing, also into other areas. In particular, the Group became active in the energy sector with the subsidiary Sarlux S.r.l., which specialises in the generation of electricity through an IGCC (Integrated Gasification Combined

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Cycle) plant, with a total capacity of 575MW. The feedstock used by the IGCC plant is the heavy residue of the refinery, and the plant produces over 4 billion kWh of electricity each year, which corresponds to more than 30% of the electricity requirements in Sardinia. Moreover, still in the island of Sardinia, the Group is also involved in the production of electricity from renewable sources, through a wind farm situated in Ulassai, with a capacity of 72MW (currently being upgraded to 96MW), owned by the subsidiary Parchi Eolici Ulassai S.r.l. (PEU). Finally, Saras operates also in the information technology services sector through its subsidiary Akhela S.r.l., and it provides industrial engineering and scientific research services to the oil, energy and environment industry via its subsidiary Sartec S.p.A.

MILESTONES 1962 : Saras is founded by Mr.Angelo Moratti 1965 : Sarroch refinery begins operations 1968 : Start up of a new Topping plant (primary distillation unit) and of the Fluid Catalytic Cracking plant (FCC) 1970 : refining services are offered to third parties for the first time 1970 : Start up of the Alkylation plant (ALKY) and of a waste water treatment plant 1983 : Start up of the Visbreaking unit (VSB) and of a Vacuum plant (Vacuum) Late 1980s : FCC unit capacity is increased up to 94,000 bl/day 1984 : Start up of the Continuous Catalytic Reforming plant (CCR) 1992 : Start up of the Mildhydrocracking plant (MHC1) Saras begins operating in the wholesale market in Spain (Saras Energia) and Italy (Arcola Petrolifera)

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2001 : Start up of the Integrated Gasification Combined Cycle plant (IGCC), of a second Mildhydrocracking plant (MHC2), and of an Etherification plant (TAME) 2005 : The Ulassai wind farm starts operations, with an installed capacity of 72MW 2006 : IPO to grow the business and explore new opportunities 2007 : Increased conversion capacity, leading to significant improvements in the production of diesel 2008 : Achievement of environmental registration EMAS (Eco Management Audit Schemes), start up of the Tail Gas Treatment Unit and sulphur recovery (TGTU), and of the gasoline desulphurisation unit (U800) 2009 : Beginning sales of gasoline and diesel with 10ppm (parts per million) sulphur content, contributing to the reduction of the indirect emissions of SO2. Saras is the first refinery in Italy to obtain AIA authorization (Integrated Environmental Authorization), which is part of a journey to improve technical and structural characteristics of the plant, which will allow to minimize the environmental impact of the production activities; 2010 : In the first part of the year, the “Project Focus” starts, with the specific aim of improving production efficiency and operations’ effectiveness.  The project involves directly all Saras’ personnel, and sets specific targets to be achieved within all the industrial operation aspects, with particular focus on energy efficiency

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 Saras announced a Eurobond transaction restricted to institutional investors, with a total principal amount of EUR 250 million and a maturity of 5 years. The bonds are listed in the Stock Exchange, have a coupon of 5.583%, shall mature on 21st July 2015, and do not carry guarantees or covenants. The proceeds will be used to refinance and extend the maturity of debt, and for general corporate purposes

ACCESSORIES INDUSTRY

Gucci - The Company and its History

 Gucci was founded by Guccio Gucci in , Italy in 1921, and began its life as a family owned leather goods, handbag and saddle store. However, Guccio Gucci had travelled to Europe and London when young, and gained an understanding of Cosmopolitan Culture.  He hired the finest craftsmen and by 1938 he has opened a store in Rome. Guccio himself designed many of the Gucci products sold.  Guccio Gucci died in 1953, but his sons took over the company, building on Guccio's success. The company gained an international standing, as boutiques were opened in London, Paris and New York. Towards the end of the 1960's, boutiques were opened in and Tokyo. This is when the famous GG logo was developed in honor of the founder, Guccio Gucci.  The Gucci family had Italian fiery personalities, arguing with each other during meetings and over decision making, and these quarrels combined with poor business decisions took the company close to bankcruptcy in the late 1970s. The introduction of the Gucci Accessories Collection, introduced in 1979, consisted of accessories including makeup bags, lighters and pens. It was initially well received, but because it made the Gucci name more accessible to ordinary

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people, the brand lost its exclusive appeal. It was further damaged by cheap fakes and replicas which further damaged the exclusivity of the brand.  The family were ultimately incapable of turning the company around and in 1993 Investors, a holding company, bought them out. The company ultimately recovered with a new helm and a new designer, Tom Ford. In 1995, the company was bolstered by Ford's new collection and its adoption by superstars including Madonna and Gwyneth Paltrow.  In this same year, Gucci became a publicly traded company. Gucci make prestigious luxury products, including bags, sunglasses and shoes. They are often iconic in design and easy to recognize. They offer style that is not usually replicated on the High Street, but at a price. The UK online store Koodos specialized in discounted designer bags, clothes, accessories and shoes but is sadly no longer online.

AUTOMOBILE INDUSTERY ()

Fiat India Automobiles Limited is a 50-50 Industrial Joint Venture between Fiat Group of Automobiles S. p. A., (Fiat) and Tata Motors Limited (Tata), originally incorporated on January 02nd, 1997. The definitive agreement of the Joint Venture was signed on October 19th, 2007. The board of directors for this company comprises of five nominees each from Fiat and Tata.

Fiat, which holds a 50% stake in the Company, also owns and controls multiple internationally renowned brands: Fiat Automobiles, Automobiles, Automobiles, Jeep, Chrysler, and Fiat Light Commercial Vehicles, the makers of renowned cars such as the , and Alfa Romeo besides the Fiat branded cars.

Tata Motors Limited, the other partner in the Joint Venture, is the largest automobile company in India, with revenues of Rs. 32,426 crores (USD 7.2

48 billion) in 2006-07. It is the leader in commercial vehicles in every segment and the second largest in the passenger vehicles market.

The Fiat plant located at Ranjangaon in the Pune District of Maharashtra provides direct and indirect employment to around 4,000 people. This facility manufactures the premium Fiat cars such as the Grande Punto and Linea having started operations in 2008. The plant also manufactures Tata cars.

The facility manufactures Fiat’s super successful 1.3 litre MultiJet diesel engines and 1.2 & 1.4 litre FIRE gasoline engines. The state-of -the-art facility has an installed capacity to produce 100,000 cars and 200,000 engines, besides aggregates and components. The company plans to double the production capacity for both units and engines in the next few years.

The company has sold over 65000 new generation Fiat cars since their launch. The Linea and Punto have become the choice of the Indian customer. The cars have also been highly appreciated by award juries, and rightly so, as the cars are not just drop dead gorgeous but are also packed with innovative user friendly features like Rain sensing wipers, Blue&MeTM and world-class engines.

Fiat Motors has upped the ante in exceeding expectations and market requirements. Be it the Fiat Punto 90hp, a diesel variant which is India’s most powerful hatchback or the Linea T-Jet, the epitome of luxury and performance, both have raised the bar in their respective categories.

At Fiat we believe in listening to our customers. Thus, we carefully incorporate the feedback to ensure customer delight.

Now Fiat Motors is poised to show further depth of character, to show what true champions are made of. Fiat aims to take customer delight to another level and create the fine experience that the customer has come to expect from Fiat.

Having unveiled the new Linea and Punto 2012 – with category firsts like Rain Sensing Wipers and Automatic Headlamps; best-in-class ground clearance on

49 both cars; powerful upgraded new air conditioning; increased value and features for every variant; and to top it all, a new, premium looking colour in Oceanic blue.

What’s more, with the launch of the first Fiat Caffe in Delhi, customer experience and car shopping will attain a new meaning.

The new Fiat Linea and Punto 2012 embody Fiat’s pursuit of delighting the customer and exceeding the expectations.

From 1952 - 1964

 THE BEGINNING OF THE ECONOMIC BOOM In 1958 production started growing enormously, both for automobiles and farm machinery. Mirafiori doubled its factories and Fiat set up new manufacturing plants abroad as well. In Italy this was the period of the economic boom and the auto sector was the 'driving force' of the economy.

From 1965 - 1977

 THE ECONOMIC BOOM AND SOCIAL UNREST Growth continued in exports as well as production: the trend showed an increase from one car every 96 inhabitants to one every 28. In the meantime Fiat boosted its presence in southern Italy by setting up numerous factories there. There was also an increase in trade union conflicts: in 1969 total hours on strike reached 15 million.

BICYCLE INDUSTRY (BASSO COMPANY)

The automobile industry in Italy started a little bit later than in France. The Stefanini-Martina of 1896 is thought of as the inaugural of the industry. However, Enrico Bernardi had built a petrol fueled tri-cycle car in 1884. Fiat SpA was founded in 1899 and built its first car in same year, the 3½HP (or 4HP), with a 679 cc engine. It was capable of 35 km/h (22 mph). was founded in 1900, at first assembling Renault model automobiles.

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The story of Cicli Basso is really the story of a family with a tradition of cycling. The father, a farmer and part-time public servant, was an ardent fan in a time when bike racing was still the national , and had even raced as a youth. It is even today an integral part of the social fabric of the province in in which Cicli Basso is located. So it was only natural his three sons, Marino, Renato and Alcide, would continue the tradition.

Marino was born in 1945 and began racing in 1960 with the bicycle he "requisitioned" from his younger brother Renato. He was noted early as a gifted athlete and impressed the local fans from the very beginning with his combativeness, his desire to win and, above all, his sprint. He moved quickly to the very top amateur level and turned professional in 1965 becoming one of Europe's most feared road sprinters. As a professional he raced with the greats of the day such as Merckx and Gimondi.

Between 1965 and 1978, when he retired, he won 82 national and international races, including many stages of the Tour of Italy and, the high point of his career, the world championship road race in 1972 in Gap, France. The finish of this race, typical of his style, will remain unforgettable to the spectators because of the suddenness with which he reacted in the last 20 meters and beat and outsmarted the other contenders Guimard and 1?E~rcluc who alone had pulled the small group (with Marino in the rear of course) up to the failing Bitossi. The amazed expression on his face and his half-raised arms show that he himself couldn't entirely grasp his good fortune. After retiring at 33, he lent his experience to the young company which his 2 brothers had just created. From him stems the basic concept of Cicli Basso to offer the public the same traditional tool that the professional riders use.

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2.2 STRUCTURE, FUNCTIONS AND BUSINESS ACTIVITIES OF SELECTED INDUSTRY / SECTOR / COMPANY

CERAMIC INDUSTRY

About richard ginori 1735 :

The noble story of RICHARD GINORI manufacturing started just outside the city of Florence in the village of Doccia. The enlightened thirty-five year old Carlo Ginori decided to bring to Florence the magnificence of the Medicean artistic tradition. His enthusiasm equals the precious Chinese productions discovered during the journeys of Marco Polo. It was 1735, when the rich families of Europe collected rare porcelain pieces fired in the kilns of Vienna and Meissen, that Carlo Ginori began his admirable adventure.

After 1735, the activity continued, increasing the production and making use of the creativity of a variety of collaborators. At the end of the following century the Ginori family handed the factory over to the Milanese industrialist Augusto Richard, the owner of a ceramic business in Milan. The RICHARD-GINORI Company was born from this merger.

Today RICHARD-GINORI is one of the world leading manufacturers of luxury tableware; in genuine chinaware, combining a mixture of tradition with the most advanced technologies, guaranteeing the highest quality of its products. A wide assortment of products is still made to suit all demands of domestic and international markets alike.

RICHARD-GINORI production is divided into three main catagories with characteristics designed for the diverse needs of each segment.

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HOTEL INDUSTRY

1. Rooms Deluxe Room With Rome View  50 m²/538 sq.ft. with breathtaking views of historical Rome from the private balcony  All rooms have an ample comfortable sitting area

bathroom  Double soundproof door

 LCD TV with Satellite and pay-tv  Wireless and high-speed Internet (fee applies)

 Automatic shutters Imperial Room With Rome View

 50 m²/538 sq.ft. with breathtaking views of historical Rome from the private balcony

 All rooms have an ample comfortable sitting area  King-size "floating featherbed" with finest linen

 Precious marble bathroom  Selected luxurious bathroom amenities

 42" plasma TV with Satellite and pay-tv  Wireless and high-speed Internet (fee applies)

 Double soundproof door  Automatic shutters

 Imperial Room reservations include complimentary access to the Imperial and Cavalieri Grand Spa Clubs 2. Penthouse Suite Amenities  200 m²/2115 sq. ft. and 215 m²/2300 sq. ft. private roof garden overlooking St. Peter’s Dome  Wide staircase with sliding glass ceiling opening on to private roof garden with mini pool

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 Suite can be extended to a connecting bedroom or private gym

 Sitting room features the stunning and unique Karl Lagerfeld giant sofas

 Dining area with bar  The décor is enriched by modern and antique works of art

 Fiber optics star-lit ceilings  Large walk-in dressing room

 Extra king-size "floating featherbed" with finest linen  Digital leather massage chair

 Bathroom in rare marble and malachite with hydromassage bath and chromo-therapy with view of St. Peter’s Basilica

 Triple shower with tropical mist and aroma-chromo therapy  Swarovski crystal bathroom fixtures

 Guest cloakroom  Private wine cellar with prestigious labels

 Cigar humidor with wide selection of "Puros" (upon request)  Automatic shutters

 61" plasma TV in living-room

 "Home Cinema" with Dolby surround digital system

 Multi region DVD player  Satellite, and pay-tv channels

 CD player  43" plasma TV in the bedroom

 Liquid crystal TV in bathroom  Large lap-top compatible safe

 Independent phone lines for computer and fax

 Wireless and high-speed Internet (fee applies)

 State-of-the-art Technogym™ bike 700  High-power binoculars for close-ups of

 Integrated camera security-system  Penthouse Suite reservations include complimentary access to our Imperial and Cavalieri Grand Spa Clubs

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 Planetarium Suite With its ceilings spangled with fibre-optic stars, the Planetarium is the Rome Cavalieri hotel’s premier romantic retreat. It is a treasure chest of antique and contemporary works of art, including a Robert Indiana series. There are flat screen plasma televisions in each room and a spectacular private roof terrace with a hot tub. The bathroom is tiled in marble with sodalite inlay and comes with a shower and hydromassage tub. The Planetarium Suite can be extended to include an extra bedroom or a private gym.  Petronius Suite The largest suite in the Rome Cavalieri hotel, the Petronius Suite is furnished in classical style with rare 18th Century French antiques and adorned with some of the Rome Cavalieri hotel’s most valuable works of art. It includes a large sitting room, a dining room that seats eight, and four balconies to enjoy the stunning Rome views. Petronius Suite guests are able to compose their own personal wine list from the hotel's cellars. The wine will be stored in the room at ideal temperatures. The suite can be extended over four bedrooms with individual bathrooms including a second connecting suite.  Napoleon Suite Decorated with original Empire antiques, paintings and prints, the Napoleon Suite at the Rome Cavalieri is elegant enough for any emperor, and the ultimate in Rome luxury hotel accommodation. A grand Savonnerie carpet is laid over the teak parquet floors, while the silk and linen wall coverings are inspired by designs from the Palace of Caserta. Three large balconies preside over the panoramic Rome views. The imperial bathroom features precious and the surround- sound home cinema allows you to watch royal dramas in style. The suite can be extended through connecting rooms to include two more ensuite bedrooms.  Corner Suite The Corner Suites at the Rome Cavalieri offer two separate rooms - for sleeping and living - the latter with comfortable sofa, arm chair, rare French antique work desk and a massage chair to ease tired muscles. Full of light, accented with lovely blond wood, the suite is decorated with original art and antiques and

55 comes with all the Rome luxury hotel features, including a gorgeous bathroom with separate bath and shower. The views of Rome from its double balcony are glorious.  Vista Suite With a classical theme set by 4 dramatic entrance pillars, the Vista Suites at the Rome Cavalieri hotel boast a grand marble fireplace and a king size bed that looks directly through the balcony windows to the panoramic Rome views. Spacious and luxurious in ambiance, the suites are furnished in the Rome Cavalieri style, with original art and antiques, as well as a reclining leather massage chair to ease those weary muscles after a day of sightseeing in Rome.  Alcove Suite The Rome Cavalieri's combination of art and antiques creates an air of timeless elegance in these Roman luxury hotel rooms. Alongside the latest facilities like double power showers and plasma screen televisions, you have the best of all worlds. The Alcove Suites, which could comfortably accommodate parents and two children, overlook the Rome Cavalieri hotel's Mediterranean gardens. 3. Dining service  La Pergola  l'Uliveto  Sunday Brunch  In Room Dining  Special Dietary Requirements  Tiepolo Lounge and Terrace  Grand Spa Café  Pool Bar 4. Grand Spa  Cavalieri Grand Spa Club  Fitness Centre 5. Pools

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6. Events  Weddings and Celebrations  Banqueting Locations  Conferences  Theme Parties 7. Unique experience  Tea with Tiepolo  Gladiator Training  Rome Cavalieri Art Collection  Pampered Pets  Million Dollar Wedding and Something Borrowed  Private palaces  The secrets of via giulia  Unlocking trastevere  The evolution of luxury  Private Visit of the Vatican Gardens and the Sistine Chapel 8. Hotel Services and Facilities  Limousine Service

MEDIA INDUSTRY

The Mediaset Group operates in Italy through two fully - owned advertising companies, Publitalia’80 and Digitalia’08.

Publitalia operates on an exclusive basis as the advertising company for the Mediaset network. In 2010, Publitalia had over 1,000 clients, including 274 new clients who generated commission of around EUR 100 million or 4% of the total, and the top 10 clients accounted for approximately 28% of total turnover.

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Based on Nielsen media research data regarding the advertising market in Italy, in 2010 Publitalia held a 36.3% share of the market compared with 35.7% in 2009

Digitalia is an advertising company that specializes in advertising sales for digital pay TV and free to - air digital channels, for sports events and barter operations.

In 2010 the advertising market (relative to the traditional area) registered a 3.4% increase compared with the previous year, although if the contribution from Publitalia were to be excluded the increase would have been 2.5%. The growth of advertising revenues on Mediaset networks amounted to 4.8%.

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THE STRUCTURE OF THE MEDIASET GROUP

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FASHION INDUSTRY

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FUNCTIONS DONE BY BENETTON GROUP

Exhibit 1: The Benetton Group

Edizione 80% control

Luciano Benetton Gilberto Benetton Carlo Benetton Giuliana Benetton Chairman Edizione Chairman/ Internal Production Activities Creative & Design Italian Senator Vice-Chr. & Dir. Benetton Grp. Technical Areas Operations Financial Areas

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ENERGY & PETROLEUM INDUSTRY

STRUCTURE OF BUSINESS

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FUNCTIONS OF SARAS SPA Saras Spa, a subsidiary of Angelo Moratti Sapa, is the parent company, established in 1962 to carry out refining activities. Today, it owns the Sarroch production site.

Arcola Petroliferous sells oil products on the domestic wholesale market, in Sardinia, North and . In addition to its sales activities, which constitute its core business, the company also provides leading operators with reception, storage and land or sea redelivery services for oil products for the fuel distribution network and maritime bunkering at its storage facility in Arcola, . Sarlux, a wholly-owned Saras subsidiary, owns the IGCC plant. The company manages all commercial activities relating to the energy generated by the IGCC plant, while Saras is wholly responsible for the plant’s operational management

Saras Energia SA distributes oil products on the Spanish retail and wholesale market, via a sales structure endowed with a high degree of expertise, professionalism and market knowledge.

Sardeolica manages the wind farm located in the municipality of Ulassai (Province of Ogliastra), and is one of the largest wind farms in Sardinia, with authorization for 48 wind turbines, of which 42 are already in place, offering an output capacity of 72 MW. This will rise to 96 MW from the first quarter of 2011 with the entry into service of the six new wind turbines currently being completed. Akhela is an IT company with long-standing experience gained from managing the IT systems of the Sarroch refinery; the company develops high-tech tools and applications for the automotive, audio processing and avionics sectors.

Sartec (Saras Ricerche e Tecnologie) provides engineering and research technology for industry and the environment. Sartec’s services of consultancy and environmentalmonitoring, design, and production-process and industrial- automation optimisationare aimed at supporting innovation and sustainable

63 industrial development both within Italy and internationally. Sartec also designs, builds and rolls out modular plants to monitor emissions.

FUNCTION OF ACCESSORIES INDUSTRY

1) Hardware accessories: refers to the composition of cabinet structure and construct necessary components (including the hinge, handle, connection pieces, slide, hang code, shelf pins, adjust the foot, skirting boards, etc.). 2) Metal accessories: refers to the composition of cabinets features an optional or additional components (including a variety of pull- blue, litter bins, rice boxes, pendants, seasoning rack, corner plate, knife, etc.).

A. Multi-function Basket: Multi-purpose Baskets Baskets feature with spices, followed by knives and chopsticks are stored, spoons, shovels, ...... role. Our family usually have 3-4 knives, a chopping, and chop bones, and tick meat, cut cooked food. Sometimes we in the kitchen appliances market to buy a knife, but we are still on the table, and the sauce bottles on the countertop so as to be subject to oil smoke, and a knife if you do not dry, then directly into the turret-rib , which will be moldy water. Spoon, a shovel hanging in the basket where the direct, in the drawer at the bottom there is the water tray, this cabinet will not be damp. At the same time can also be sauces, chopsticks, vegetable plates, forks and so ordered your marks. As the multi-use function Baskets relatively strong, customers choose a very common and it is the most important basket of the kitchen as a whole.

B. dishes basket, stove basket: dishes basket is designed storage cabinet in the stove bowls, plates and other tableware, stove in the stove cabinet drawer is designed mainly stored pot class. Our family usually has a variety of tableware, milk pot, wok, steamer, pressure cooker, casserole, etc. stove drawer under these variety of pots and pans can be stored inside. Because the cooking time,

64 you can open the drawer, readily available, unlike on the door, to bend down, in the cupboard which is very laborious to find the need to use the tools, potentially increasing the labor intensity.

C. spices Baskets: With regard to the placing of sauce bottles, and we were previously placed on the table or in a partition wall fixed that in the cooking, they can readily take a variety of spices. In fact, although convenient for cooking, but have neglected an important aspect, because the fumes from the kitchen much, is a relatively poor environment, where soot covered with sauce bottle is easy. In a time when health care has been added to the amount of labor. Every week or two weeks time, you have to rub bottles of each seasoning again, if all of the sauce bottle on the basket, the basis of personal habit of stove installed in the stove drawer to the left, or on the right can be. Thus, in the cooking time, opened very convenient to take place to ensure the sauce bottle at all times maintain a clean, hygienic.

D. dishes shelf: the dishes in the basin rack is designed Container handling the above, if we put the bowl directly on the Container handling washed, the plate is water-Lin Lin Pan Wan bowl, and so will lead to cabinet a long-term wet body panels. If the Container handling inside the bowl fitted with lishui frame, solved this problem. Lishui bowl with the water directly to the bottom frame plate, plates and bowls of water inside the basin of water can drip in the next years, particularly convenient.

3) Import the difference between hardware and domestic hardware: Although we feel that functional components resolved in the use of some of the trouble, but the quality of the functional parts is in a dilemma, all believe that the difference between imported and domestically produced is not large, the appearance is not are the same? This can be a great difference between inside you! In fact, we all know that "a penny, a sub-stock" truth. From the exterior point of view, indeed very much the same, especially in the smooth aspects of the track is different.

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AUTOMOBILE INDUSTERY (FIAT)

BICYCLE INDUSTRY

Rivalry among assemblers in the , once contained within national boundaries, has evolved into global competition. First movers established market dominance in the early 1900s, and their brands are still the most recognized by consumers today. The fact that auto producers choose market strategies based on what their rivals are doing indicates that this is an oligopolistic industry. What is interesting here is that market leadership remains dynamic: It is not a given that General Motors or Toyota or DaimlerChrysler will be the market leader of tomorrow.

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Before industry standards for products and production were established, hundreds of automakers existed, each vying to establish a beachhead in the industry. In the United States, for example, the year 1909 saw the largest number of automakers in operation in a given year—272 companies. It is estimated that in the first twenty years of the industry’s existence, over five hundred firms entered the industry in the United States alone. The 1920s brought a wave of precipitous exits by auto manufacturers, with many firms merging into more profitable companies. In the 1930s General Motors became the market leader, with Ford slipping to second place because of a yearlong changeover in production from the Model T to the Model A. By 1937 General Motors, Ford, and Chrysler—long referred to as the Big Three—had 90 percent of total sales in the U.S. market, forming a dominant-firm oligopoly (General Motors accounted for 44.8%, Chrysler 25%, and Ford 20.5%). By the 1960s, only seven domestic auto producers remained.

In the late 1990s Japanese auto manufacturers took over more than a quarter of the U.S. market, and Big Three market share slipped below 70 percent. Today, there are only two-and-a-half U.S. automakers—General Motors, Ford, and DaimlerChrysler—collectively capturing 58.7 percent of the U.S. market. GM still has the largest share of the U.S. market (27.3%), but Toyota’s market share in the United States is just one percentage point below Chrysler’s (13%). Worldwide, market concentration has also been declining since the mid-1980s, with entrants such as Hyundai/Kia diluting the collective market share held by dominant automakers.

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3.1 COMPARATIVE POSITION OF SELECTED INDUSTRY / SECTOR / SPECIFIC COMPANY / PRODUCT WITH INDIA AND GUJARAT

INDIAN CERAMIC SECTOR

No. Particular Amount 1. World production: 6900 Million sq.mt. 2. India's Share 340 Million sq.mt. 3. Per capita consumption 0.30 sq.mt 4. Global Industry Growth Rate 6% 5. Growth Rate (India Domestic Market) 15% 6. Organized industry turnover Rs 3000 corers 7. Glazed Wall Tile share 40% 8. Glazed Floor Tile share: 46% 9. Unglazed Vitrified Tile share 8% 10. Glazed Porcelain Tile Share: 6% 11. Investments in last 5 years: Rs 2000 crores

Gujarat Ceramic Sector

Morbi, the most promising ceramic tiles manufacturing hub of India, is a city located in Saurashtra region of Gujarat.

Here are the key points which makes this city the next big thing in international ceramic arena:

 Home to approx 390 manufacturing units.

 Cumulative investment of approx Rs. 4000 Crore.

 Manufactures more then 70% of total ceramic production in India.

 Total installed capacity of 1.8 million Sq.Ft. tiles per day.

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 A large number of small-scale ceramic pottery manufacturing units are also located around Thangadh. Thus Wankaner, Thangadh and Morbi form the Ceramic triangle.

 These units also cater to export market (Middle East, African Countries, Sri Lanka, Bangladesh, etc.)

 In the recent years Morbi has also became an important manufacturing outsourcing zone.

 Many leading ceramic companies like HR Johnson, Asian tiles and Somani Tiles are outsourcing their requirements from Morbi.

 The region around Morbi (i.e. Wankaner, Dhuva, and Thangadh) is a virtually untapped ceramics zone. It is India's newest and most promising ceramics production hub with scores of innovative and enthusiastic tile and sanitary ware manufacturers, all of which represent key future sales targets for equipment, raw materials and service suppliers.

 The pace of production capacity growth in this region has been explosive and this trend is set to continue for the foreseeable future.

The vicinity of the city with major ports (e.g. Kandla and Mundra) also lowers down the transportation costs and thus helps exporters of ceramics from the region. The region will surely be one of Asia's key driving forces over the next 10 years. and meetings. The services include guiding the companies in organizing meetings, seminars, presentations, organizing business trips and other activities.

HOTEL INDUSTRY

Hotels in India are broadly classified into 7 categories (five star deluxe, five-star, four star, and three star, two star, and one - s t a r a n d heritage hotels) by the Ministry of , Government of India, based on the general features and facilities offered. The ratings

69 are reviewed every five years. As of December 2005 (latest available figure) ther e are following number and category of hotels. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has la rgely been replaced by room s with modern facilities, in clud in g en- suite bathrooms and air conditioning or climate control. Additional common features found in hotel rooms are a telephone, an a larm clock, a television, and Internet connectivity; snack foods and drinks may be supplied in a mini-bar, and facilities for making hot drinks. Larger hotels may provide a number of additional guest facilities such as a restaurant, a swimming pool or child care, and have conference and social function services. Some hotels offer meals as part of a room and board arrangement. Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is inextricably linked to the tourism industry and the Growth in the Indian tourism industry has fuelled the growth of Indian Hotel industry. The thriving economy and increased business Opportunities in India have acted as a boon for Indian hotel industry. The Arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry. According to a report, Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage of 150,000 rooms fuelling hotel room rates across India. According to estimates demand is go i ng to exceed supply by at least 100% over the next 2 years. The future scenario of Indian hotel industry looks extremely rosy. It is expected that the budget and mid-market hotel segment will witness huge growth and expansion while the luxury segment will continue to perform extremely well over the next few years.

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However, most of these efforts were directed towards the business travellers and foreign clientele. In recent years, the hotels sector has grown at a faster rate than GDP. As a result, the share of hotels & restaurants in GDP at current prices has increased from 1.2per cent in FY2000 to 1.5per cent in FY2005.In constant (1999-2000) prices, the GDP from hotels and restaurants has increased from Rs. 222.65 billion in FY2000 to Rs. 335.49 billion in FY2005. As a result, the share of hotels and restaurants in total GDP at constant prices has increased from 1.24per cent in FY2000 to 1.40per cent in FY2005

MEDIA INDUSTRY

Mediaset S.p.A., known as Gruppo Mediaset in Italian, is an Italian-based media company which is the largest commercial broadcaster in the country. Founded in the 1970s by former Italian Prime Minister Silvio Berlusconi and still controlled today with a 38.6% stake by his family holding company Fininvest, the group competes primarily against the public broadcaster and market leader RAI, La7, and News Corporation's Sky Italia.

Asianet Communications Limited (ACL) is an Indian media conglomerate jointly owned by STAR TV/Fox International Channels and Jupiter Entertainment. Formed in 1991 and headquartered in the city of Thiruvananthapuram in the south Indian state of Kerala, the company owns several television channels including Asianet, the first privately owned satellite channel broadcasting in the south Indian language of Malayalam.

Mediaset's headquarters are in Milan, Lombardy. Many of its studios are located in the Milano 2 area of Segrate, a municipality bordering Milan, where broadcasts of local station TeleMilano (now airing nationally as Mediaset's Canale 5) began in 1978. After merging with various local broadcaster to form the Canale 5 syndication, much production was moved to Cologno Monzese, where the infrastructure of the former Telealtomilanese was present. The company

71 currently has three main television production centres, in Segrate, Cologno Monzese and Rome.

Due to their proximity to (or encirclement by) Italy, Croatia, Switzerland, Malta, San Marino, the Vatican City and Slovenia also receive Mediaset broadcasts.

The current joint venture company was formed in 2008, when the News Corporation-owned STAR TV/Fox International Channels became a majority shareholder in ACL. The company is headed by Malayalee entrepreneur Rajeev Chandrasekhar.

In addition to its domestic television interests, Mediaset also operates a series of news, entertainment and sport websites; holds 50.1% of the Spanish broadcasting firm Mediaset España Communication; and heads a consortium which owns the television production house Endemol.

The current joint venture company was formed in 2008, when the News Corporation-owned STAR TV/Fox International Channels became a majority shareholder in ACL. The company is headed by Malayalee entrepreneur Rajeev Chandrasekhar.

ACL's television channels reach the homes of Indians in over 60 countries worldwide including the Indian sub-continent, China, South East Asia, Middle East, Europe, USA and the lower half of the former .

HOLDINGS

Holdings in Spain are through Mediaset's 50.1% stake in Mediaset España Communication.

In 2008, when the News Corporation-owned STAR TV/Fox International Channels became a majority shareholder in ACL.

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PROGRAMS OF ACL

Asianet News In June 2001, Asianet started airing its second channel Asianet Global which was later relaunched as Asianet News. Airing live news bulletins round the clock besides other news-based programmes, Asianet News was the first twenty-four hour news channel in the Malayalam language. Besides news centres in various cities across Kerala, the channel operates news bureaus in New Delhi, Mumbai, Chennai, the Middle East and USA. The channel also runs the website asianetindia.com.

Asianet Plus The group's third channel Asianet Plus was launched in August 2005 and is a youth-oriented entertainment channel.

Asianet Middle East Launched on 25 March 2010, Asianet Middle East is a 24- hr entertainment channel exclusively dedicated to Malaya lee expatriates in the Middle East.

Asianet Radio 657 AM & 1269 AM Further catering to the region's huge Malaya lee population, Asianet operates a radio station Asianet Radio 657 AM & 1269 AM from the city of Dubai in the United Arab Emirates. The radio channel is also available in the neighbouring Arab countries of , Oman, Kuwait, Qatar and Bahrain.

Best FM 95 Currently available in the Trichur and Kannur districts of Kerala, Best FM 95 is ACL's Malayalam-language radio station in Kerala. Programming schedule and content is completely different from that of Asianet Radio 657 AM & 1269 AM.

Asianet Suvarna Suvarna is ACL's Kannada-language channel, aimed at the Kannada-speaking population in the south Indian state of Karnataka and neighbouring regions. Launched with the tag line "24 carat manoranjane", the channel airs soap operas, talk shows, news programmes, and game shows. One

73 of the most popular among its programmes is the Kannada version of the hit music talent show Idea Star Singer - "Confident Star Singer".

Suvarna News This is a Kannada language news channel broadcasting live news bulletins round the clock besides other news-based programmes

Asianet Sitara Sitara is ACL's Talegu-language channel, aimed at the Talegu- speaking population in the south Indian state of Andhra Pradesh and neighbouring regions. The channel was launched in October 2009 and is the newest member of ACL's television network.

Sitara News A proposed news channel in Talegu

ENERGY & PETROLEUM INDUSTRY

Indo-Italian Trade and Economic Relations

Executive Summary

 India is Italy's fifth largest trading partner in the EU.  Balance of trade has been in India's favour since 1988.

 The volume of bilateral trade during 2009 has reached Euro 5,657.1 million. The exports from India reached Euro 2,906.9 million, a decrease of 15.23% in comparison to 2008.  During 2009, India's imports from Italy stood at Euro 2,750.2 million, registering a decrease of 10.99% compared to 2008. Thus, the balance of trade remains in India's favour (+156.7 million).

 The thrust areas of India's exports to Italy are textiles, including cotton and synthetic yarns and fabrics, readymade garments, motor vehicles, footwear, iron and steel, leather and leather goods, gems and jewellery, marine products, agricultural and related products, auto components, chemical products.

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 Principal items of India's imports from Italy: general and special purpose machinery, chemical products, auto components, measuring instruments, iron and steel, leather and leather products, pharmaceutical and medicinal products, general hardware, plastic products.  Future Prospects for investment and trade are encouraging, as India is increasingly being seen as an emerging economic power in the world and an important economic partner in Asia, both in terms of trade and investment, and as an alternative to their original interest in .

Italy is India's fifth largest trading partner in the EU. Italy is the 13th largest foreign investor in India. The European countries ahead of Italy in this respect are UK, , France and . The Indo-Italian bilateral trend has been constantly increasing at high rates in last six years and only due to the global economic recession, in 2009 the trend has registered a negative growth.

India’s oil marketing companies India’s publicly-owned OMCs are the dominant players in the country’s downstream petroleum sector. In fact, they are among India’s top twenty largest corporations (by sales), and each is a member of the Fortune 500 list of the world’s 500 largest companies. India’s largest OMC –India Oil Corporation Limited (IOCL) – is the country’s largest corporate entity, by sales. The great majority of Indian consumers and industries, especially the fertilizer and growing petrochemical industries, access petroleum products through these OMCs. It is impossible to understand dynamics within India’s downstream petroleum sector therefore without first understanding roles and operations of India’s three OMCs within this sector. In the same way, it is impossible to outline the potential future of the Indian downstream sector in the mediumterm without understanding the prospects for OMC evolution and investment.

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This chapter provides an account of the nature and prospects of the OMC sector and its implications for the evolution of India’s downstream industry. It concentrates in particular on the ability of OMCs to invest in refinery capacity at a sufficient rate to: (a) adequately meet growing Indian demand; and (b) to position India as a world-leading refined products exporter into the future. In order to outline product market conditions, Chapter 2 confined analysis to India’s four most consumed and subsidized petroleum products – petroleum, diesel, kerosene and LPG. Since this chapter is concerned largely with refinery investments in general rather than pricing arrangements specifically, this exception will not be made here.

India, Italy ties based on strong foundations India, Italy ties based on strong foundations: New Delhi, Tue, 28 Feb 2012AN New Delhi, Feb 28 : External Affairs Minister S.M. Krishna, who met his Italian counterpart Giulio Terzi Di Sant' Agata in the backdrop of an unfortunate incident involving death of two Indian fishermen and the subsequent detention of two Italian navy personnel, here on Tuesday said that both sides agreed on the need to clear the air so that people in both countries are reassured of will and commitment of the respective governments to strengthen the partnership. "We met in the backdrop of an unfortunate incident involving death of two Indian fishermen and the subsequent detention of two Italian navy personnel. There is strong public opinion on both sides. Minister Terzi and I agreed that we need to clear the air so that people in both countries are reassured of our will and commitment to strengthen our partnership," said Krishna in his statement to the media after meeting the Italian Foreign Minister.

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COMPARATIVE POSITION OF GUCCI ACCESSORIES PRODUCT WITH INDIA AND GUJARAT

 India is Italy's fifth largest trading partner in the EU.  Balance of trade has been in India's favor since 1988.  The volume of bilateral trade during 2009 has reached Euro 5,657.1 million. The exports from India reached Euro 2,906.9 million, a decrease of 15.23%in comparison to 2008.  During 2009, India's imports from Italy stood at Euro 2,750.2 million, registering a decrease of 10.99% compared to 2008. Thus, the balance of trade remains in India's favor (+156.7 million).  The thrust areas of India's exports to Italy are textiles, including cotton and synthetic yarns and fabrics, readymade garments, motor vehicles, footwear, iron and steel, leather and leather goods, gems and jeweler, marine products, agricultural and related products, auto components, chemical products.  Principal items of India's imports from Italy: general and special purpose machinery, chemical products, auto components, measuring instruments, iron and steel, leather and leather products, pharmaceutical and medicinal products, general hardware, plastic products.  Future Prospects for investment and trade are encouraging, as India is increasingly being seen as an emerging economic power in the world and an important economic partner in Asia, both in terms of trade and investment, and as an alternative to their original interest in Eastern Europe. Italy is India's fifth largest trading partner in the EU. Italy is the 13th largest foreign investor in India. The European countries ahead of Italy in this respect are UK, Germany, France and Sweden.  The Indo-Italian bilateral trend has been constantly increasing at high rates in last six years and only due to the global economic recession, in 2009 the trend has registered a negative growth.

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 India has informed his counterpart that infrastructure development is an attractive investment opportunity and a priority area for the Indian government. India has invited investment and joint ventures in Ultra Mega Power Projects, textile machinery, agricultural food processing, automotive components and wine technology. India has offered expertise in Railways, Information technology and textiles sector.  Major issues of interest discussed by both sides were informationtechnology, fashion design, small and medium enterprises, tourism, agriculture andfood processing, infrastructure, transport, investment, automotive components,environment and energy, textiles, leather, gems and jeweler, financial cooperationand reciprocal trade promotion. The Italian delegation offered partnership in e-identitycards and creation of a design centre at Ahmadabad.  Cooperation in shipping and developments of ports infrastructure was also high on the agenda of the Italian side. In the renewable energy sector solar energy, waste-to-energy, second generation bio-fuels and green buildings were identified for cooperation. Both sides exchanged views about the ongoing

COMPARATIVE POSSITION OF FIAT IN INDIA

Fiat started their Indian operations in the year 1905 with Bombay Motor Cars Agency being their first sales agent in India.

Later, Premier Automobiles Limited, erstwhile flagship company of India’s Walchand Hirachand Group assembled the Fiat 1100 cars from the 1950s until 1997. The car ruled Indian roads for three decades (1955-1985). The Premier Padmini was manufactured in India from 1968 to 2000 by India’s Premier Automobiles. Fiat had decommissioned the car after only three years with Italian production ceasing in 1960. The entire production line was shipped to India in 1967 with production based at Kurla, Mumbai. Premier manufactured the ‘Premier Padmini’ until they sold majority stake to Fiat S.p.A. in Sept. 1997. More

78 than 500,000 cars were built for private customers and taxi fleets before the last one was in 2000.

3.2 PRESENT POSITION AND TREND OF BUSINESS (IMPORT / EXPORT) WITH INDIA / GUJARAT DURING LAST 3 TO 5 YEARS

Ceramic Industry  The Indian Industry has developed an export market although at the lower end. In volume it constitutes less than half a percent of the global market. (Presently India does not figure in the list of major exporting countries). But this reality could change as Indian exports are rising at the rate of 15% per annum. The top-end of the global export market is presently dominated by Italy (40.8%) and Spain (26.4%). (Source: Compiled using information from Corporate Catalyst India, ASCER and other associations.) HOTEL INDUSTRY

Taj group Inter continentel Le Meridien group of hotels Oberoi group of hotels The park group of hotels Welcome Heritage group of hotels ITC Welcome group of hotels

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MEDIA INDUSTRY

PROGRAMS OF MEDIASET

Programs Typology % per week Programming schedule allocation

Hard News 8% Immediate rerun of the main news editions.

Soft News 24,5% Rerun within the 24 hours of the main important daily programs (ie. Matrix, Sipario,...) and, within the week, of magazines like. Terra!, Tempi Modern etc.

Light 52% Rerun within the week of the most important Entertainment entertainment programs of the season.

TV Series 8,5% Rerun within the 24 hours (or, eventually, also within the week) of prime time TV drama produced by Mediaset.

Soaps 3% Rerun within 24 hours (or, eventually, also within the week) of the most successful soaps.

Sitcoms 2% Rerun within the 24 hours (or, eventually, also within the week) of the most successful sitcoms.

Library 2% All the titles aired by Mediaset mainstream tv channels will be shown within one year on Mediaset International.

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ACCESSORIES INDUSTRY

Present Position and Trend of Business (import / export) with India / Gujarat during last 3 to 5 years

Figures of Indian Imports from Italy

 There has been a considerable growth in imports from Italy over the last couple of 3 to 5 years which reduced to a certain percentage in 2009 due to economic slowdown globally.  2006- The import figures stood at 2,170.1 Euro million  2007- It increased to 3,009.6 Euro million in the next year  2008- A positive trend followed the very next year and the figure reached at 3,091.1 Euro million  2009- Global recession led to a decrease in the imports and it retarded to

Export of sesame in last five years

(i) GCC countries  As per Comrade database, GCC countries imported 45,849 tons of sesame during 2006.There is 101% increase in demand. The largest importers were Saudi Arabia (28,626 tons)

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(ii) Middle East countries  India is exporting to the tune of 10,467 tons to , 1665 tons to Cyprus, 1069 tons to Jordan and 153 tons to Morocco.  India should nurture these markets to further enhance exports. India must also explore export to Egypt as they imported 48,294 tons of sesame seeds during 2006. (iii)  European Union imported sesame seeds of 1, 21,053 tons during 2006. The quantum of imports decreased from 2003 level at 1%.  India’s exports to EU were maximum, as 48% of the requirements were met by India and other exporters are Guatemala, Sudan, and Paraguay etc. supplying only limited quantity. Largest importers of sesame from India during the year 2006 were Germany (14,288 tons),

(iv) ASEAN countries  ASEAN countries imported sesame seeds up to 22,510 tons during 2006.There is a 21.6% increase in demand. India is meeting 60% demand of ASEAN countries. Main importers of Indian sesame are Malaysia (7195 tons), Indonesia (3258 tons), Singapore (1876 tons) and (921 tons).Major competition with India in ASEAN region is from Myanmar, but  India is able to make available sesame in these markets at competitive prices and can be much more competitive if India can cut down on cost of production by increasing productivity in a significant manner.

(v) Pacific Rim countries and China Export potential in these countries is as follows: (a) South Korea (b) North America (c) China (d) Japan (e) Australia

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PRESENT POSSITION AND TRADE OF BUSINESS ININDIA(FIAT)

New Delhi-based Fiat Partecipazioni India, the group sourcing arm of Fiat, will commence the export of components for models to be launched from 2012. So far, the company has exported components that are primarily for the existing models as an additional source and also for the spare part requirements of the models that have ceased production. According to Niraj Hans, managing director and country head, Fiat Partecipazioni India, this marks the beginning of Indian suppliers participating extensively in new vehicle programmes. “We have a Euro 50 million business of advance purchasing. Supplies will commence towards the end of 2011. Gradually, the business from resourcing will be replaced with advance purchasing,” he says.

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4.1 POLICIES AND NORMS OF SELECTED COUNTRY FOR SELECTED INDUSTRY/COMPANY FOR IMPORT / EXPORT INCLUDING LICENSING/PERMISSION, TAXATION ETC

HOTEL INDUSTRY

New classification norms: about time

The introduction of new classification norms for the hotel industry in May this year by the Department of Tourism (DoT) has been regarded as a long pending action. The new classification norms, which are aimed at ensuring Indian hotels meet international standards with regard to services and facilities are pertinent with the fast approaching WTO deadline (April 1, 2005), when international chains will have no restrictions in building and operating properties in India.

Besides this the other changes are a requirement of minimum 10 ’let table’ rooms as against the earlier requirements of 25 for four- and five-star, 20 for three-star and 10 for two- and one-star. Staff trained in fire fighting drill is necessary. Security arrangements at the entrances are necessary. Suites are necessary for four-star, five-star and five-star deluxe hotels (two per cent of the room block with a minimum of one). Multi-cuisine restaurant is necessary for three-star upwards and one speciality restaurant is necessary for four-star upwards. The new guidelines incorporate measures for pollution control, energy conservation, facilities for the physically challenged, waste disposal management, training and welfare of employees, use of information technology.

Time-share resorts in India have never had the privilege of being classified, thereby excluding the segment from possible incentives that states could grant the hospitality industry. Furthermore, the new norms prescribed by DoT state that any property assigning even a few rooms to time-share, or a hotel having mixed use of rooms, would be denied classification. While this primarily pertains to new hotels which may have planned on adopting time-share to boost room sales, it

84 also affects existing mixed usage properties when they come up for re- classification. This has fuelled quite as lot of resentment in the industry.

Liquor industry: saying cheers

Despite bans in a few states and unfavourable policy environment the Rs 5,000 crore Indian liquor industry has been growing rapidly with multinational companies inundating the market with new brands on regular basis. The removal of quantitative restrictions, reduction in basic customs duty and other sops in this years budget has helped foster this trend.

While consumption of whisky is growing at 20 per cent per annum with Indian Made Foreign Liquor (IMFL) and scotch segments pegged at 79.5 million cases, beer consumption is slated to treble in the next ten years. The beer market in India is currently pegged at 5.6 million bottles with strong beer segment enjoying a market share of 61 per cent and mild beer segment 39 per cent share. Host of international beer brands like Becks, Fosters, Corona, San Miguel, Cobra, Castle Lager, Erdinger etc have entered the Indian market.

Introduced in 2001 Pre-mixed drinks of Ready To Drink (RTD) in India the segment has witnessed a remarkable growth. Bacardi Martini India Ltd were the first to foray in this segment with the Breezers, a fruit flavoured rum based drink with 4.8 per cent alcohol content. In less than a year United Breweries (UB) introduced Shotz, a vodka based RTD, Shaw Wallace launched Veba, Triumph Distilleries Vineries (TDV) which has tied up with Lionel Nathan, Australia’s largest brewery introduced Tequila Slamma, a tequila based RTD have hit the market. Many more are expected to jump on the RTD bandwagon like Chateau Indage which will soon launch their RTDs and Wine Coolers.

The Union Budget 2003-2004 has only partially cheered the industry. The reduction of basic customs duty from 182 to 166 per cent as per WTO commitments and proposed rationalisation of countervailing duty in respect of imported alcoholic beverages including wines has been welcomed; the industry

85 wants complete abolition of additional duty and special additional duty, as states levy their own duties on imported liquor.

War-n-Sars: double whammy

The hotel industry was rocked by a double whammy early this year, the Iraq War and the outbreak of the Severe Acute Respiratory Syndrome (SARS). Both these external events threatened a yet another bad year for the industry still reeling under the September 11 effects. Traditional leisure markets like Goa, Rajasthan, Kerala etc were badly hit with 35 to 40 per cent cancellations reported within the first week of the outbreak of the war. Even business travel figures showed a dip of nearly 20 per cent.

DSP Merrill Lynch, the foreign brokerage firm in a report stated that foreign tourist inflow growth slowed to a mere 1.6 per cent Year On Year (YOY) in March 2003, led by the Iraq war. This impacted growth in revenue per available room. They expressed fears that the double crisis faced by the industry would result in weak demand, lower domestic ADRs (Average Daily Rate) and an appreciating rupee could cause flat to negative growth in RPAR (Revenue Per Available Room).

The industry on its part went on a war footing to counter the SARS threat. Hotels familiarised their in-house staff about the disease and its symptoms and were given strict instructions that if any guest falls sick, the doctor should be summoned immediately, after which the entire area would be cordoned off. The buzz words was prevention and assurance. Also these two events goaded the industry to seek alternative avenues to bolster their revenue.

The crisis resulted in the emergence of the mid-market hotels in a big way. Many international chains have entered this segment and have embarked on a major expansion spree. Even the five-star and five-star deluxe segment also viewed the domestic market with new eyes and slashed prices to very attractive levels trying to

86 eat into the mid-market hotels market share. Always around, the resilient domestic market has become the latest cash cow.

Budget Hotels

The budget segment is recognised as the largest growing one in hotels. The tightening of purse strings by corporate has resulted in the budget segment being the beneficiaries. A smaller corporate travelling budget has affected hotels above the luxury tax mark (Rs 3,000), but it is not likely to affect this segment, feels Ritesh Dang, director, of the three-star Days Inn Navi Mumbai.

"In fact, our segment of hotels is the only ones continuing to maintain a healthy revenue and a steady occupancy of around 80 per cent," says Ramesh Thakur, general manager and CEO of the government approved Hotel Sahil in Mumbai Central.

Room conversion is another value service being considered by the mid-sized segment, especially the older ones. For example, hotels are considering tapping the long staying segment by converting their larger rooms such as suites into self contained apartments. MEDIA INDUSTRY

Media legislation:

The current regulation is Law No.112/2004, also known as “Legge Gasparri” (for Maurizio Gasparri, Communication Minister under Silvio Berlusconi's government). The process leading to the creation of this law started in 2002, after Silvio Berlusconi's coalition won the general elections of 2001: Berlujsconi’s conflict of interests then became a hot issue again and preoccupations over media concentration and press freedom flared up again among his political opponents and among wide sections of Italian public opinion as well.

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In 2002, Carlo Azelio Ciampi, then Republic President, sent an official message to the Chamber of Deputies and Senatus, prompting them to devise a law that implemented both European Union's directives and Corte Costituzionale's guidelines on the subject of information pluralism and impartiality. The law was also expected to structurally reform the Italian broadcasting system in order to solve the historic Italian problem of terrestrial frequency scarcity, to safeguard TV public service and to regulate the transition to DTD.

In September, 2002, Berlusconi's Government passed the first version of Legge Gasparri. During the discussion of it, Mr. Berlusconi left the chamber, as if to deny the very existence of a conflict of interests.

The law was widely criticised and judged unconstitutional by then Republic President, Carlo Azelio Ciampi. Before eventually approving the law, Ciampi sent it back to the Chamber of Deputies and Senate for revision; also, the European Commission activated an infringement case (procedura di infrazione) No. 2005/2006) against Italy because the legal system according to which the law distributed frequencies was seen to give unwarranted advantages to existing operators of analogue TV and to prevent the formation of a pluralistic and free TV market.

Among its most important and controversial points, the law established a deadline for the transition to DTD in 2006, early in comparison to all other European countries. Fixing such a short-term deadline - a deadline unlikely to be respected, given the long time needed for the construction of digital terrestrial networks - was meant to avoid a change at Silvio Berlusconi's Rete 4 from analogue transmission to satellite transmission.

Rete 4 exceeded the antitrust limit because, a judgment by Corte Costituzionale said in 1994, it was unconstitutional for one subject to own three TV terrestrial channels. The antitrust limit in Italy is calculated on the basis of the total number

88 of national TV channels broadcast on terrestrial frequencies (there were previously eight DTD channels).

The Digital Terrestrial Technology allowed an increase in the number of TV national channels transmitting on a terrestrial frequency: as a consequence, owning three of them was no loner to be considered “dominant position.” In other terms, according to Gasparri's line of thinking, by 2006, DTD would make it possible to “dilute” Mediaset's dominant position within the Italian TV system; this is how Legge Gasparri aimed to speed up the switch-off deadline.

Further, the law defined the SIC (Integrated Communication System) to include written press, online newspapers and magazines, radio, television, movie, advertising and sponsorships. The definition of SIC was meant to lower down the antitrust limit to advertising revenues: the Legge Gasparri stated that this limit – fixed at 20 percent (corresponding to 26m euro) – should be calculated on the basis of SIC, That encompassed revenues from many and very heterogeneous communication media.

As a consequence, the antitrust limits decreased in comparison to previous limits, which were apparently higher (30 percent), but actually corresponded to a lesser amount 12m euro.

ENERGY & PETROLEUM INDUSTRY

Import Duties

All merchandise coming into Italy must clear Customs and is subject to customs duty assessment unless the goods are duty or tax exempt by law. Customs duties are, generally, an ad valorem rate (a percentage), which is applied to the transaction value (EU Euro) of the imported goods based on the cost of the goods, insurance, and freight charges. Some articles, however, are dutiable at a specific rate of duty (so much per piece, liter, kilo etc.) and others at a compound rate (combination of both ad valorem and specific rates). The dutiable value of

89 merchandise is determined by the EU Customs code. Several appraisal methods are used to arrive at this value. Generally, the transaction value of the merchandise serves as a basis of appraisal. Transaction value is the price the buyer actually pays the seller for the goods sold and being imported. The Harmonized Tariff Schedule of European Union (2002 Edition), issued by Istituto Poligrafico dello Stato, prescribes the rates of duty and classification of merchandise by the type of product; i.e. animal and vegetable products, textile fibers and textile products. The tariff schedule provides several rates of duty for each item. Below is a summary of the new rules for EU deminimis value that enter into effect December 1, 2008:

 A commercial shipment below 22 Euros: no duty and no VAT collected.  A commercial shipment between 22 Euros and 150 Euros: no duty but VAT is collected.  A commercial shipment over 150 Euros: duty and VAT are collected

Antidumping Under strict enforcement of unfair trade laws, Customs will assess antidumping duties or countervailing duties. Antidumping duties are assessed on imported merchandise sold in Italy (EU) at less than the normal price of goods in the manufacturer's home market (also called fair market value).

Excise Duties

Excise taxes are accessed against certain commodities, which are normally identified as "luxury" goods. The excise tax is normally assessed against tobacco products, perfumes and alcohol products but can also be accessed against other goods as deemed by Italian regulations.

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ADDITIONAL DUTIES

Countervailing Countervailing duties are assessed to counter the effects of subsidies provided by a foreign government for merchandise exported to Italy resulting in artificially low prices that are detrimental to Italian and other European Union member states industries.

Watch Duty Rate Watches imported into Italy (EU) are subject to duty assessment on a per item basis versus the traditional duty assessment on a set percentage of value declared. The actual duty and the final rate of duty are determined based on the customs classification of the watch at the time of entry processing.

IMPORT TAXES

VAT

VAT or value added tax is accessed at a rate of 21% on those shipments that are entered as normal consumption entries in addition to the normal rate of duty.

CUSTOMS FEES

Examination Fees

Additional fees can be accessed on some commodities to cover the expense of performing the examinations and or testing required as a condition of the goods entry into the commerce of Italy. Commodities affected: cosmetics, drugs and medicines, artwork.

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ACCESSORIES INDUSTRY

Policies and Norms of Italy for Gucci accessories for import / export including licensing /permission, taxation etc  Privacy policy  Style drops is committed to respecting the privacy rights of website visitors. The following policy describes how we collect, protect and use information we receive from website visitors. STYLEDROPS.com is responsible for this privacy policy. Please note, that when you enter any sub-sites accessible through Styledrops.com, they may have different privacy policies specific to those sites. We encourage you to read the privacy policies of each STYLEDROPS site.  What information do we collect? - We collect information from you when you register on the site, place an order, respond to a survey or communication such as e-mail, or participate in another site feature. - When ordering or registering, we may ask you for your name, date of birth, e-mail address, mailing address, daytime phone number, credit card information or other information. You may, however, visit our site anonymously or purchase without registering. - We also collect information about gift recipients so that we can fulfill the gift purchase. The information we collect about gift recipients is not used for marketing purposes. - Like many websites, we use "cookies" to enhance your experience and gather information about visitors and visits to our websites. Please refer to the "Do we use 'cookies' ?" section below for information about cookies and how we use them. - We also receive and store click-stream data and other information about visits to our websites which may be combined with personal information you have provided. This information is used to analyze and improve the

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website experience. For more information see the "Do we use 'cookies'?" section below POLICIES AND NORMS OF ITALY FOR FIAT

Since the end of World War II, Italian foreign policy has been built around three main pillars, or “circles”: the Atlantic Partnership and NATO, European integration, and the Mediterranean. In the last 60 years, all governments have sought to strike a balance between these three dimensions and in particular between the relationship with the United States on the one hand and with the European Union on the other.

In the immediate aftermath of the Second World War, Atlanticism and Europeanism emerged as the two lodestars of Italy’s foreign policy. The country’s main interests in that period were to regain a status of parity within the international community, namely in Europe and in the Mediterranean, in order to prevent its exclusion from post-World War II security alliances, and receive protection against Soviet expansionism.

4.2 PRESENT TRADE BARRIERS FOR IMPORT / EXPORT OF SELECTED GOODS (IF ANY)

MEDIA INDUSTRY

As it is a member of the European Union, Italy applies the Community regulations which are valid throughout the Union.

If the EU has quite a liberal foreign trade policy, there are a certain number of restrictions, especially at the level of agricultural products, ensuing from the implementation of the CAP (Common Agricultural Policy): applying compensations when importing and exporting agricultural products to favour the development of agriculture within the EU implies a certain number of systems to control and regulate goods entering EU territory.

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Moreover, for sanitary reasons, with regards to Genetically Modified Organisms, if they are allowed in Europe, their presence must, for example, be systematically specified on packaging. Importing beef fed on hormones is also prohibited.

The principle of precaution is now more widely favored: in case of doubt, import is prohibited until the non- noxiousness of the goods is proved.

Customs Duties and Taxes on Imports:

While the principle of free movement of goods forms the internal part of the Customs Union, the CCT forms the external part as it enables uniform Customs duties to be applied to products from third party countries, whichever Member State is the country of destination. Duties for countries outside Europe are not very high, especially for industrial products (4.2% on average for the general tariff).

Customs Classification: Italy uses the harmonized system.

Import Procedures: Import procedures are subject to a declaration on-line or on paper. You will find further information on the Agenzia delle Dogane (Customs Agency) website.

As part of the "SAFE" standards advocated by the World Customs Organization (WCO), the European Union has set up a new system of import controls, the "Import Control System" (ICS), which aims to secure the flow of goods at the time of their entry into the customs territory of the EU. This control system, part of the Community Program eCustomer, has been in effect since January 1, 2011. Since then, operators are required to pass an Entry Summary Declaration (ENS) to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union.

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Importing Samples: The inscription "no a la vente" (not for sale) is compulsory on commercial samples.

FASHION INDUSTRY

India and Italy have agreed to improve bilateral trade flows as a common goal for mutual benefit and mutual reinforcement of political links. This is indicated in the agreed minutes of the 16th Session of the India-Italy Joint Commission for Economic Cooperation which was signed here by Shri Kamal Nath, Minister of Commerce & Industry, on behalf of Government of India and Mr. Antonio Marzano, Minister for Production Activities, on behalf of the Government of Italy. Although the two-way trade between India and Italy increased to US $ 2.77 billion during 2003-04, both sides have noted that the level of trade is far below its true potential. Indo-Italian trade could be doubled to US $ 5 billion within the next 2 to 3 years, Shri Kamal Nath had said at the inaugural meeting of the Joint Commission and the interactive business session held on 7th January.

In another significant move in the context of the phase-out of the multi-fibre arrangement (MFA), India and Italy have agreed to explore enhanced cooperation in textile clusters and in the field of textile design through the National institute of Fashion Technology (NIFT). Both sides expressed the hope that the transition from quota to the non-quota regime in textiles "will be smooth and would not cause disruptions so as to affect current flows, without any negative repercussions especially on developing and the least developed countries". Both sides will also explore possibilities for cooperation in leather, gems & jewellery, food processing industry, tourism, energy, financial services and information technology and scientific research.

In response to Shri Kamal Nath’s raising the issue of problems faced by Indian marine products exporters in Italy in the recent past, both sides have agreed to

95 expedite signing of the Memorandum of Understanding in the sector of and fishing products during the state visit to India of the , Mr. Carlo Azeglio Ciampi so as to facilitate cooperation in the marine sector. Further, a bilateral Task Force will be set up for the development of industrial clusters and to foster cooperation between the small & medium enterprises (SMEs) of both the countries.

India has invited Italy to participate in infrastructure projects in roads, ports and Special Economic Zones (SEZs). Both sides have also agreed to continue consultations to improve facilities for business entry visas to Italy.

The two sides expressed the hope that the visit of the Italian President to India in February 2005 would represent a milestone in bilateral relations.

The next meeting of the India-Italy Joint Commission would be held in Italy sometime next year.

ENERGY & PETROLEUM INDUSTRY

Technical barriers or non-tariff barriers to trade, as they are sometimes known, can cause many problems for exporters looking for new markets for their products. These barriers can be in the form of regulations, standards, testing and certification procedures. The (WTO) Agreement on Technical Barriers to Trade tries to ensure that these barriers do not create unnecessary obstacles. To obtain further information on Technical Barriers to Trade as well as Notifications on Technical Regulations and Conformity.

ACCESSORIES INDUSTRY

Present Trade barriers for import /Export of accessories

 Most trade barriers work on the same principle: the imposition of some sort of cost on trade that raises the price of the traded products. If two or

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more nations repeatedly use trade barriers against each other, then a trade war results.

 Economists generally agree that trade barriers are detrimental and decrease overall economic efficiency, this can be explained by the theory of comparative advantage. In theory, free trade involves the removal of all such barriers, except perhaps those considered necessary for health or national security. In practice, however, even those countries promoting free trade heavily subsidize certain industries, such as agriculture and steel.

 Trade barriers are often criticized for the effect they have on the developing world. Because rich-country players call most of the shots and set trade policies, goods such as crops that developing countries are best at producing still face high barriers.

 Trade barriers such as taxes on food imports or subsidies for farmers in developed economies lead to overproduction and dumping on world markets, thus lowering prices and hurting poor-country farmers.

 Tariffs also tend to be anti-poor, with low rates for raw commodities and high rates for labor-intensive processed goods. The Commitment to Development Index measures the effect that rich country trade policies actually have on the developing world.

 Another negative aspect of trade barriers is that it would cause a limited choice of products and would therefore force customers to pay higher prices and accept inferior quality.

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IMPORT AND EXPORT POLICIES OF INDIA(FIAT)

The UPA Government has assumed office at a challenging time when the entire world is facing an unprecedented economic slow-down. The year 2009 is witnessing one of the most severe global recessions in the post-war period. Countries across the world have been affected in varying degrees and all major economic indicators of industrial production, trade, capital flows, unemployment, per capita investment and consumption have taken a hit. The WTO estimates project a grim forecast that global trade is likely to decline by 9% in volume terms and the IMF estimates project a decline of over 11%. The recessionary trend has huge social implications. The estimate suggests that 53 million more people would fall into the net this year and over a billion people would go chronically hungry.

Though India has not been affected to the same extent as other economies of the world, yet our exports have suffered a decline in the last 10 months due to a contraction in demand in the traditional markets of our exports. The protectionist measures being adopted by some of these countries have aggravated the problem. After four clear quarters of recession there is some sign of a turnaround and the emergence of ‘green shoots’, though I would be hesitant to hazard a guess on the nature and extent of this recovery and the time the major economies will take to return to their pre-recession growth levels.

Trade barriers between India and Italy

India and Italy have agreed to improve bilateral trade flows as a common goal for mutual benefit and mutual reinforcement of political links. This is indicated in the agreed minutes of the 16th Session of the India-Italy Joint Commission for Economic Cooperation which was signed here by Shri Kamal Nath, Minister of Commerce & Industry, on behalf of Government of India and Mr. Antonio Marzano, Minister for Production Activities, on behalf of the Government of Italy. Although the two-way trade between India and Italy increased to US $ 2.77 billion

98 during 2003-04, both sides have noted that the level of trade is far below its true potential. Indo-Italian trade could be doubled to US $ 5 billion within the next 2 to 3 years, Shri Kamal Nath had said at the inaugural meeting of the Joint Commission and the interactive business session held on 7th January.

In another significant move in the context of the phase-out of the multi-fibre arrangement (MFA), India and Italy have agreed to explore enhanced cooperation in textile clusters and in the field of textile design through the National institute of Fashion Technology (NIFT). Both sides expressed the hope that the transition from quota to the non-quota regime in textiles "will be smooth and would not cause disruptions so as to affect current flows, without any negative repercussions especially on developing and the least developed countries". Both sides will also explore possibilities for cooperation in leather, gems & jewellery, food processing industry, tourism, energy, financial services and information technology and scientific research.

5.1 POTENTIAL FOR IMPORT / EXPORT IN INDIA / GUJARAT MARKET

MEDIA INDUSTRY

The Media And Entertainment Industry- Increasingly Globalized…

The domestic entertainment industry was estimated at nearly Rs 225.0 billion and provided employment opportunities for nearly 6.0 million people in the year 1999. In terms of foreign exchange earnings, the industry contributed around Rs 4,000.0 million in the year 1999. In the current year, this is likely to increase to around Rs 10,000.0 million. This projected growth is likely to occur on account of the increasing migration of the Indian population across the globe, extensive outsourcing of content such as animation by world leaders in the entertainment industry and the imminent broadband revolution in the industry. However, massive investments are required in the area of telecommunication infrastructure

99 with industry friendly government policies. With the domestic consumer already having access to global entertainment avenues, globalization in this industry will only increase at a far greater pace in the coming years.

Changing lifestyles and increasing disposable income levels has facilitated the increasing penetration levels of the media and entertainment industry. Recent estimates indicate that around 68.0% of total adult population have access to the conventional forms of media. The urban middle class population has grown over the years and currently accounts for over 40.0% of the total population. The southern states have a distinct edge in terms of media penetration. For instance, Tamil Nadu and Kerala have penetration levels of over 80.0% in case of mass media. Similarly, in the case of televisions, penetration levels increased to an estimated 75.0% of all urban households in the country. Satellite channels have been the fastest growing category in this segment.

FASHION INDUSTRY

The following items are not acceptable for carriage to any international destinations unless otherwise indicated. (Additional restrictions may apply depending on destination. Various regulatory clearances in addition to customs clearance may be required for certain commodities, thereby extending the transit time.)

1. APO/FPO addresses. 2. C.O.D. shipments. 3. Human corpses, human organs or body parts, human and animal embryos, or cremated or disinterred human remains. 4. Explosives (Class 1.4 explosives are acceptable for carriage to Canada, Germany, France, Japan, United Arab Emirates and . Note:United Arab Emirates only allows Class 1.4 explosives to be shipped hold-for-pickup to the FedEx Express facility in Dubai).

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5. Firearms, weaponry and their parts (acceptable between the U.S. and Puerto Rico). 6. Perishable foodstuffs and foods and beverages requiring refrigeration or other environmental control. 7. Live animals including insects, except as provided in the Live Animals section in the FedEx Service Guide. (Call the FedEx Live Animal Desk at 1.800.405.9052). 8. Plants and plant material, including cut flowers (cut flowers are acceptable from the U.S. to selected points in Canada and from Colombia, Ecuador and the to the U.S.). 9. Lottery tickets and gambling devices where prohibited by law. 10. Money (coins, cash, currency, paper money and negotiable instruments equivalent to cash such as endorsed stocks, bonds and cash letters). 11. Pornographic and/or obscene material. 12. Shipments being processed under: a. Duty drawbacks claims unless advance arrangements are made. b. Temporary Import Bonds – acceptable under the FedEx International Broker Select option, for initial import only. c. U.S. State Department licenses d. Carnets e. U.S. Drug Enforcement Administration export permit. f. Letters of Credit. Shipments subject to Letters of Credit are generally prohibited, with the exception of shipments subject to Letters of Credit calling for a “courier receipt”, as defined by Article 25 of UCP 600, shipped using the FedEx Expanded Service International Air Waybill. g. Certificate of Registration shipments (CF4455).Hazardous waste, including, but not limited to, used hypodermic needles or syringes or other medial waste.

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13. Shipments that may cause damage to, or delay of, equipment, personnel or other shipments. 14. Shipments that require us to obtain any special licenses or permit for transportation, importation or exportation. 15. Shipments or commodities whose carriage, importation or exportation is prohibited by any law, statute or regulation. 16. Shipments with a declared value for customs in excess of that permitted for a specific destination. (See the Declared Value for Carriage and Limits of Liability section in the FedEx Service Guide). 17. Dangerous goods except as permitted under the Dangerous Goods section of these terms and conditions. 18. Processed or unprocessed dead animals, including insects and pets. Taxidermy-finished hunting trophies or completely processed (dried) specimens of whole animals or parts of animals are acceptable for shipment into the U.S. 19. Packages that are wet, leaking or emit an odor of any kind. 20. Wildlife products that require U.S. Fish and Wildlife Service export clearance by FedEx prior to exportation from the U.S. 21. In-bond shipments destined to or being withdrawn from a Foreign Trade Zone or bonded warehouse, unless the FedEx International Broker Select option is selected for U.S. import shipments, or the FedEx International Controlled Export service option is selected for U.S. export shipments.

ENERGY & PETROLEUM INDUSTRY

Permits are required from Ministero del Commercio Estero for the following:

 Milk and Dairy products  Cheese  Fish

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 Wheat, Barley and Other grains  Vegetables

 Steel  Textiles and Clothing

 Livestock and animals and parts of  Firearms, ammunitions and explosives

 Waste products  Radioactive materials and nuclear reactors

The following items are prohibited into Italy:

 Atlantic red tuna fish (Thunnus Thynnus) originating from Belize, Panama, and Honduras

 Toys and games containing sulfate

 Items having a flexible metal blade entirely contained in a plastic, paper, or fabric sheath

 Illicit Narcotics and Drugs

 All forms of fibers

 L-trytophane and any items having L-trytophane as an ingredient

 Rubber erasers that are similar in appearance to food products that are easily ingested

 Medical thermometers containing intended for human consumption

 Certain U.S. Beef hormones

 Tobacco and Manufactured Tobacco substitutes

 All products containing the biocide dimethylfumarate (DMF)

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Italy Export Prohibitions

Export controls are imposed on Italian exporters by the government can take the form of prohibitions such as blockades, embargoes, boycotts, and sanctions or they can take the form of export licensing and permit requirements for controlled commodities. Export controls may be product specific, technology specific or country specific.The Customs Department holds the list of commodities and areas that are under control and/or require an export license. Contact the Customs Department or utilize their web site http://www.agenziadogane.it to determine if the goods being exported or the shipping destination is under control.

Examples of goods subject to export licensing controls:

 Agricultural products; (i.e. grains, cheeses)  Dual Use goods; (i.e. software, computers, and parts)  Biological reagents  Artwork  Antiques The following items are prohibited from Italy:

 Atlantic red tuna fish (Thunnus Thynnus) originating from Belize, Panama, and Honduras

 Toys and games containing copper sulfate  Items having a flexible metal blade entirely contained in a plastic, paper, or fabric sheath  Illicit Narcotics and Drugs

 All forms of asbestos fibers  L-trytophane and any items having L-trytophane as an ingredient  Rubber erasers that are similar in appearance to food products that are easily ingested

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ACCESSORIES INDUSTRY

1. Import  Sesame is commonly known as “Till”. Its botanical name is Sesame indium L. It is one of the earliest domesticated plants. It is a short duration crop grown throughout the year. The seeds of the plant yield edible oil. Due to the presence of potent antioxidant, sesame seeds are known as “the seed of immortality”. Two distinct types of seed are recognized, the white and the black. There are also intermediate colored varieties varying from red to rose or from brown or grey.

 World scenario

 India ranks first in the area, however, as per 2006 data it comes after China in production of sesame seeds in the world. During the year 2007 however, India world in sesame production. India's contribution to the production of sesame seeds in the world is 18.8% in 2006-07. Other major sesame producing countries are China (19.9%), Myanmar (17.3%), Sudan (5.9%), Uganda (4.9%),Nigeria (2.9%), Pakistan (0.8%), Ethiopia (4.7%) and Bangladesh (1.4%). The productivity of sesame in India is 0.33 tons/ha compared to world average of 0.44 tons/ha in the year 2006-07.

2. Major producing states  Gujarat is the leading sesame producing state contributing 22.3% of total production, followed by West Bengal (19.2%), Karnataka (13.5%), Rajasthan (9.8%), Madhya Pradesh (9.06%),  Tamil Nadu (4.7%), Andhra Pradesh (4.52%) and Maharashtra (4.52%).

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3. Commercial Sesame varieties White, bold seeded varieties of sesame, which meet the export quality, are Nirmala, Gujarat

4. Good Agricultural Practices (GAP) • Adoption of improved varieties. • Integrated nutrient & water management. • Integrated pest and disease management.

5. Harvesting season of crop in India Harvest season of sesame in major states is depicted below States Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

POTENTIAL FOR IMPORT/EXPORT IN INDIA (FIAT)

The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India reached as Asia's third largest exporter of passenger cars, behind Japan and South Korea beating Thailand.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by

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2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.

BICYCLE INDUSTRY (BASSO COMPANY)

 Joint Commission for Economic Partnership INDIA and Italy have signed an agreement to promote bilateral trade and investments by appointing nodal agencies to provide assistance on policy issues to potential investors and help businesses in both countries to bridge information gap. Anand Sharma, Union Minister of Commerce and Industry co-chaired the Indo-Italian Joint Commission for Economic Partnership with Claudio Scajola, Italian Minister for Economic Development. It is worth to note that the bilateral trade between India and Italy has touched US $ 8.1 billion during 2008-09 compared to US $ 7.8 billion in the previous year, despite the global economic slowdown.\ In this process, a Memorandum of Understanding (MoU) was also signed in the following areas: FICCIICE in Trade and Investment Promotion, Indian Trade Missions to Italian fairs, training courses and protection of Intellectual Property Rights; FICCI Arbitration and Conciliation Tribunal (FACT) – Chamber of Arbitration of Milan (CAM) in arbitration and dispute resolution; and INVESTINDIA-SIMEST and INVITALIA in bilateral investments.

India has informed his counterpart that infrastructure development is an attractive investment opportunity and a priority area for the Indian government. India has invited investment and joint ventures in Ultra Mega Power Projects, textile machinery, agricultural food processing, automotive components and wine technology. India has offered expertise in Railways, Information technology and textiles sector. Major issues of interest discussed by both sides were information technology, fashion design, small and medium enterprises, tourism, agriculture and food processing, infrastructure, transport, investment, automotive components, environment and energy, textiles, leather, gems and jewellery, financial cooperation and reciprocal trade promotion. The Italian delegation offered partnership in e-identity cards and creation of a design centre at

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Ahmedabad. Cooperation in shipping and developments of ports infrastructure was also high on the agenda of the Italian side. In the renewable energy sector solar energy, waste-to-energy, second generation bio-fuels and green buildings were identified for cooperation.

5.2 BUSINESS OPPORTUNITIES IN FUTURE

Ceramic Industry

 Italy represents 15% of European biotech companies, and the Italian pharmaceutical market is the world's sixth: in this scenario, is at the forefront in life sciences and biotechnologies.  Piermont lies in a strategic position in the centre of one of the most dynamic biotech areas in Europe, boasting the presence on its territory of science and technology parks and business incubators operating in the life sciences sector and making the region rich in biotechnology business opportunities.

 The strong skills existing in the region in other sectors such as ICT, electronics, and nanotechnologies have favoured the development of significant results and expertise in bioinformatics, diagnostics and biomedical equipment.

 Nanotechnology business opportunities in Italy are many, particularly in Piemonte where industry can benefit from a favourable environment that combines technology, materials and characterisation know-how with the capacity to develop new applications.

 The six science and technology parks together with the business incubators contribute to the technology transfer system in Piemonte. In particular, the Bioindustry Park promotes and develops biotechnology research; the Environment Park, doing research in the field of renewable energy, is the seat of Clean NT Lab which conducts experiments on innovative coatings, and Tecnogranda develops technologies regarding

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the production, characterisation and pre-industrialization in its own Nanolab.

 The convergence of nano scale research with other sciences such as biology, chemistry and physics that link up with engineering, creates vast opportunities to enhance performance. In Piemonte, industry can benefit from a favorable environment that combines technology, materials and characterization know-how with the capacity to develop new applications.

MEDIA INDUSTRY

MEDIA AND ENTERTAINMENT

The Indian Media & Entertainment Industry grew by US$ 12.9 billion in 2009 to US$ 14.4 billion in 2010, a growth of 11 per cent, according to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and research firm KPMG. The report also states that backed by positive industry sentiment and growing media consumption, the industry is estimated to achieve growth of 13 per cent in 2011 to touch US$ 16.2 billion. As the industry braces for exciting times ahead, the sector is projected to grow at a CAGR of 14 percent to reach US$ 28.1 billion by 2015

Opportunities

The media industry can be categorized into the following categories; filmed entertainment, television, music, radio and print. As implied, many aspire to join this industry due to the high visibility and glamour associated with many of the top jobs. That said, the opportunities are many and varied, and not all focused on celebrity status, such as in the areas of mass communication, content development, animation, production and event management.

Performance

The industry has suffered a great deal during the economic recession, with U.S. top media companies managing flat revenues in 2008 and a 5% contraction in

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2009 according to Ad Age reports. Many players, dominated by those in the print industry, have plunged into bankruptcy, primarily due to the shrinking revenues coupled with massive debt loads taken on in the market boom.

Though certain digital media firms such as Google fared well (revenues up 23%), others such as Microsoft witnessed a flat top line. Ad spending in the U.S. was also severely depressed, falling 4% in 2008 a further 14% in the H1 2009, according to WPP's TNS Media Intelligence.

Despite this sorry state, newspapers, magazines and cable systems continue to operate and media companies have been trying to slash their crippling debt. Analysts believe the worst is over, and globally, the industry is poised to emerge with less debt and stronger balance sheets in the coming 6 months.

Growth Potential

The Indian entertainment and media sector is one of the fastest growing sectors in the economy, and its segments have all witnessed tremendous double digit growth in the last few years. The past 2 years were tumultuous, especially due to poor liquidity in the system for financing big projects for the big and small screen. However, with global indicators realigning themselves once again, the Indian media and advertising industry too looks poised to resume where it left off pre 1H 2008.

According to a 2009 report jointly published by the Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG, the media and entertainment industry in India is likely to grow at ~13 % CAGR over 2009-13, touching US$ 20 billion by 2013.

The key reasons favoring the rapid growth of the Indian entertainment and media sector are the demographic and economic factors buoying India’s development; with a majority of the population below the age of 35, and increasing disposable income in Indian households, the average spend on media and entertainment is

110 likely to grow, according to the 2009 edition of PricewaterhouseCoopers report. In addition, advances in technology, increasing penetration of communication mediums, policy initiatives of the Indian government to increase FDI and the increased participation of private media companies have been the other key drivers of the industry.

As per current estimates the television industry is projected to grow by 22%, filmed entertainment by 16%, radio by 18% and the Indian advertising industry 61% over the next 3 years. Given the lucrative prospects of this segment, international media giants are all vying for a stake in the segment. In addition to domestic growth, the growing popularity of Indian content in the world market and South Asia in particular, has encouraged Indian entertainment industry players to also venture abroad to tap this booming segment; according to a report by CII-AT Kearney, the share of international markets in total box office collections is estimated to increase from 8% in 2006 to 15% in 2010.

Future Prospects

The greatest opportunities naturally lie in those sub-areas that are expected to grow the fastest over the next few years, namely, in the development of digital distribution platforms for TV such as DTH, digital music platforms, digital media advertising (internet, mobile and digital signage) and global cinema content.

For new graduates, the industry poses great prospects for achievement given its growth trajectory. On the flip side, it is extremely fast-paced and stressful as well. Additionally, being creative on a tight schedule can be emotionally draining, especially because most of the work includes long hours and meeting stringent deadlines

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FASHION INDUSTRY

Communication Sources Europe's Internet commerce industry is starting to pick up, following the lead by the United States, where over 70 percent of the world's e-commerce business took place over the past year, according to market research company, International Date Corporation. The research firm, Jupiter Communications reported online retail sales in Europe would reach $3.3 billion in 2002, up from the $165 million in 1998. In December 1999, when Benetton announced it would begin selling products on the Internet, its share surged nearly 13 percent resulting in its largest one-day rise in more than one year. Online sales will allow the company to access markets where it has low penetration and where e- commerce is more developed, such as in the U.S. In India, Benetton's advertising is concentrated on a renewed focus of communication. Benetton's image in India was considered a "discounted" brand, since they usually limited their advertising to only two end-of-season sales. However, recent television commercials were received positively by both franchisees and consumers. This kind of positive feedback could result in a new opportunity for Benetton by focusing more on media channels such as television and radio, rather than billboards or magazines. In addition, Benetton had great success with their two-tiered approach, specifically with the launch of their Sportsystem division. This approach was taken in order to gain a larger share of the US market without having to abandon their traditional image campaigns. By allowing their US retailers more flexibility when choosing which advertisements to use for a selected campaign, they were able to circumvent any potential loss of market share and also retailer dissatisfaction. Benetton could use this strategy when developing future campaigns. Japan To increase sales in the future, the US and Japan should lead the way as an opportunity for increasing Benetton's total revenues, even though the company

112 expects Italy and Germany to remain its top two markets. Japan is currently recovering from a financial crisis, which should lead to increased opportunities for future growth in Benetton's sales and profits. The Asian financial crisis dramatically affected sales of Benetton's sporting goods line in Japan, causing a 10 percent drop in sales in 1998, and 17 percent in 1997. This required Benetton to acquire more sportswear revenues in the U.S., which produced only 16 percent, or $384 million, of Benetton sales in 1998 and 15.6% in 2001.

The total Japanese market for apparel was estimated at approximately $35 billion as of 1999. The apparel market in Japan was growing at 10 to15 percent annually until 1996, despite a slow economy and a stagnant domestic apparel market since the early 1990s. In particular, Japan's apparel imports enjoyed a remarkable increase of a 15 to 20 percent annual growth until 1996. Japan's (GDP) registered a real growth rate of 0.9 percent in 1997. This was the first time in three years for the figure to fall below one percent and was the lowest level among major developed nations. According to 1997 statistics compiled by the Ministry of Finance, the major countries from which apparel is imported and their respective percentages of the import market are: China, 69.4%; Italy, 8.2%; Vietnam, 3.6%; Indonesia, 2.5%; and the United States, 2.4%. The high market share from China, and Vietnam are due to Japanese manufacturers' increasing use of their joint-venture sewing mills in these countries, where lower-cost labor is available. Imports from Italy were stable overtime due to the deeply implanted good brand image of among Japanese consumers. Italian apparel companies are currently trying to regain their 1980's position in the Japanese market through the creation of classic-casual types of women's wear at reasonable prices. Benetton, looking to capitalize on its Japanese customers, has targeted this market as an opportunity for future growth based on economic and cultural aspects such as their loyalty to Italian brands and the country's growing economic status. Since Japan is a high context country, Benetton should see this as an opportunity to extend on their already strong relationship as Japan moves into a period of economic growth.

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France There appear to be numerous opportunities for companies to successfully penetrate the French market to gain market share. The size of the apparel market in France has been growing over the last three years, as well as increasing amounts of the total exports and imports. Benetton could capitalize on this growing demand for apparel among the French population.

Apparel Market in France

(Millions US dollars) 1997 1998 1999

Total Market Size 37,739 37,850 38,228

Total Local Production 15,130 14,800 14,948

Total Exports 22,260 22,295 22,740

Total Imports 29,043 30,164 31,068

Total Imports from U.S. 1,452 1,206 1,218

Exchange Rate: USD 1.00 FF 5.75 FF 6.00 FF 6.10

Belgium Consumer spending in is picking up after over five years of flat, and even depressed, consumer demand levels. Consumption grew 3.6 percent in 1998, due to increases in real income per household and consumer confidence. Economic forecasts are pointing to steady growth of about 3 percent for 1999 and 2000. There is a continued strong market interest for American sporting and leisure apparel, as American styles are popular and designer and branded products are less price sensitive in Belgium. Major competitors of the local Belgian markets come from manufacturers and designers in France, Germany and Italy. For low-budget clothing and mass distribution items, low cost producers in the Far East, such as China, Thailand and Indonesia continue to

114 provide the bulk of imports. Benetton has the opportunity to gain market share in this country by promoting their sportswear and leisure apparel that appeal to this market's consumers. As you can see by the following table, Belgium's market size is growing, as is its local production figures. Although, the total imports declined in 1999, Benetton still has the capacity to formalize a joint venture with local retailers and just set up their distribution system to begin reaping profits.

Apparel Market in Belgium

(Millions US dollars) 1997 1998 1999

Total Market Size 2,890 2,952 3,098

Total Local Production 1,824 1,863 1,956

Total Exports 986 1,008 2,200

Total Imports 2,052 2,097 1,058

Total Imports from U.S. 81 82 85

Exchange Rate: $ = BEF 35.7 36.3 37

ENERGY & PETROLEUM INDUSTRY

Future opportunity of Sara’s spa

Moreover, internally, the Saras Group took the opportunity offered by the difficult context, in order to begin an important improvement programme, which began in 2010 and willcontinue until 2012. This programme, called “Focus”, aims at significantly improving production efficiency, operations effectiveness, cost control and the commercial positioning of the company. This ambitious programme is unprecedented in the history of our Group, for its scale, professional efforts, and financial implications.

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These meetings were also an opportunity to reveal both the results achieved, and Saras’ environmental programmes and objectives for further improvement, as reported in the two documents “Environmental Declaration” and “Environment and Safety Report” distributed on these occasions. The main activities conducted in 2013 concerning the local community Included:

 a meeting with the Environmental Commission and the Municipality of Sarroch;  a meeting with the region’s environmental, social, cultural and sports associations;  the publication in local daily newspapers of information regarding current and future environmental improvement programmes; The “Saras for School” project, which unfolds during the school year and involves five elementary classes. Beneficiaries who also participated in the 2007/2009 Stock Grant Plan were offered the opportunity of postponing the transfer of the shares that they are entitled to receive until 2013, in return for a one-off premium to be paid in shares as part of the current plan. In June 2010, 355,890 shares were delivered; the transfer of the remaining 1,409,590 shares was voluntarily deferred until 2013. This plan will involve the allocation of 918,700 shares, at a cost for the period of EUR 317 thousand.

“We believe that our business will be sustained by good fundamentals going forward, but we are aware that the market will be increasingly selective and will reward those able to chart its trends and optimize every phase of the value generation process”

Developing the talents of our people will continue to be a decisive tool in our pursuit of excellence.

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“Saras' strategy has always been centered on the ongoing technological upgrade of the plants and on the constant pursuit of optimization and production synergies”

Although a production site of the scale and complexity of that of Saras requires constant maintenance and technological upgrades, it also offers many options in terms of optimisation, production synergies and sometimes even significant developments.

In the coming years we will continue to invest in the refinery to maximise the production of transport fuels while at the same time minimising energy consumption, by seeking to fully exploit the flexibility, in terms of raw materials, allowed by our production facility. In particular we see some interesting opportunities from the growing crude oil production from the Caspian sea and west Africa.

Improving the quality of production and energy efficiency will therefore be the common denominators of our major development projects in the next few years.

ACCESSORIES INDUSTRY

1. Environmental. Any business with a positive affect on the Environment. Solar energy, recycle, alternate power etc.

2. Debt Advice. With the ever growing awareness of people in debt, any sort of financial counselling, education or debt regulation will do very well over the next 5 years. Just make sure you can still get paid for this, as most of your clients will be broke.

3. Convenience. Any product or service that adds a form of convenience to the lives of the hard working and lazy has a huge developing market. Services such as ready made home cooked suppers, laundry services, garden services, walk the dog, pay your bills, wash your car. You get the drift.

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4. Services for the Aged. There is a huge sector of the population that is getting older and not dyeing. Any services that are focused at looking after these people will blossom. Again look at costs and service ability. These could be a simple bus service to the shops. Outings to places of interest. Entertainment activities. Sporting packages. Skydiving – only kidding.

5. Cellular Communication. Any add-on product or service that moves with the times of the huge cellular market will do well. We have seen many new products come out recently that adds convenience and ease of use. Moneyless transaction, online chat, booking services, status enquiries etc.

6. Home Entertainment. We are spending more time at home in the evening, give us things to do. Wii, movies, Pizza, dress up, dress down…

7. Online Shopping. I think that SA is on the brink of the online shopping revolution that other countries have come to see. As confidence grows with online banking transactions the 2.4 million users in SA will begin to shop.

8. Beauty and Body Care. Lipstick, gym, personal training, loose fat, look good, feel sexy. Any product that does that for me, I’m buying.

9. African Development. The doors are opening into Africa. (Except Zim.) A lot of our large retailers have paved the road up north. Small business needs to follow and claim the markets.

10. Low Life Expectancy. The flip side to #4. We are also seeing a huge death rate due to HIV, TB and maybe next year N1H4. Any services linked to death will be booming. Undertakes, coffin makers, funeral policies and related services.

11. opportunities for Gucci abound especially in the emerging luxury markets in growing economies from Asia such as India and China. People who come from these places who recently amassed huge wealth due to the excellent

118 performance of the economy would definitely want to try luxurious brands such as Gucci.

12.There is opportunity in the consolidation of other brands too. The opportunity exists in creating competitive advantage in different business segments. There are various business segments Gucci can venture into should the need to expand and create more luxurious products arise

FUTURE BUSINESS OPPORTUNITIES FROM FIAT COMPANY TO INDIA MARKET

The Fiat Panda was recently unveiled at the Frankfurt Motor Show and we hear that it will arrive in India soon. The new Panda features a completely revised shell and looks quite sporty, especially thanks to the large air dam up front. The ridged bonnet adds to the flair as well. Finally the rear end sports the typical high positioned tail lamp cluster.

Inside, the Panda can accommodate five in reasonable comfort. Additionally, the company has offered a flexible seating configuration to maximise luggage carrying capacity. The beige and black theme too is soothing and so is the cheekiness of the overall interior design theme.

While internationally a whole host of engines are offered, including the Twin Air range, in India engine options are likely to include the four-cylinder 69bhp 1.2- litre Fire petrol unit. A 75bhp 1.3-litre MultiJet 2 turbo diesel unit will also be available, with Start- Stop as standard.

Finally the Panda top-end versions will get the Blue & Me Bluetooth telephony system. Internationally this will also double up as a sat-nav device, but we guess that the same won’t be offered in India.

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5.3 CONCLUSIONS AND SUGGESTIONS

Ceramic Industry

1. Indian ceramic industry is far behind the other country in production so it is require improving in this area. 2. If we talk about machinery used by the both country India is also behind Italy and amount of consumption of electricity and fuel is more in India so it is advisable to use more efficient technology for production purpose. 3. In Italy mainly ceramic industry is handled by the big corporate and it gives more return so it is good for them to have more investment in they can make a ceramic as a core business. 4. India is having good employees and sufficient amount of natural resources so it is advisable for Italian company to tie-up with Indian small scale industry so there will be a synergy amongst them. 5. Level of taxation is low in Italy as compare to India so it is advisable to major firm to have a production unit in Italy only. 6. It will be possible to grow in ceramic industry if more investment with Morbi ceramic industry.

HOTEL INDUSTRY

The world economy has grown up fast and many economic systems have been established under the regional cooperation. The economy integration of ASEAN and ITLY countries has been brought a new and giant influence. The regional economic corporation has already become a tendency.

While the new economy system is growing up and getting bigger, Italy’s in the situation that is facing new challenges and opportunities of its economy. The “marginalization” problem has been mentioned by scholars and enterprises in the recent years36. The key points of lowering the damage from the “marginalization” problem are trying to carry out the possibility of tariff preferential and expanding

120 the range to zero-to-zero, especially in the Information Technology Agreement

(ITA).

Italy must realize its advantage on the trade part and take the initiative side. Must stand on a stable position in this cooperative economic tendency. The new economy system needs an experienced and to provide assistance in improving the part of technology and development of local exploitation.

Italy also should face the over-dependency problem to China. Italy should understand that investment and trade should not over-depend on one country. It will have potential investment risk. Especially Italy and China still have instable political factors. Over-dependent on trade with China will make Italy in a disadvantageous situation. Moving some part of trade from China country is a better way to improve the over-dependency problem.

Seeking signing up free trade agreement with Italy countries is also a guarantee for Italy economy. It can not only protect Italy trade and economic position in Southeast Asia but also deepen the cooperation of both sides.

MEDIA INDUSTRY

The greatest opportunities naturally lie in those sub-areas that are expected to grow the fastest over the next few years, namely, in the development of digital distribution platforms for TV such as DTH, digital music platforms, digital media advertising (internet, mobile and digital signage) and global cinema content.

For new graduates, the industry poses great prospects for achievement given its growth trajectory.

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On the flip side, it is extremely fast-paced and stressful as well. Additionally, being creative on a tight schedule can be emotionally draining, especially because most of the work includes long hours and meeting stringent deadlines.

The opportunities are many and varied, and not all focused on celebrity status, such as in the areas of mass communication, content development, animation, production and event management.

The Mediaset can be more innovative with new opportunity.

The crucial information on Mediaset SpA required for business and competitor intelligence needs

Contains a study of the major internal and external factors affecting Mediaset SpA in the form of a SWOT analysis as well as a breakdown and examination of leading product revenue streams of Mediaset SpA

Data is supplemented with details on Mediaset SpA history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available statement from Mediaset SpA.

Mediaset is one of the leading commercial television operators in Italy and one of the world's largest media groups. The group is engaged in television business ranging from signal broadcasting to in-house television production.

The group primarily operates in Italy and Spain. It is headquartered in Milan, Italy and employs 6,375 people. The group recorded revenues of E4,251.8 million ($6,255.8 million) during the financial year ended December 2008 (FY2008), an increase of 4.2% over 2007. The operating profit of the group was E984.6 million ($1,448.7 million) in FY2008, a decrease of 14.3% over 2007. Its net profit was E459 million ($675.3 million) in FY2008, a decrease of 9.4% over 2007.

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FASHION INDUSTRY

Edizione Holding is the Benetton family's holding company. Based on the internationalmarket experience of the Benetton Group and being aware that efficiency and speed of communication are fundamental elements in the creation of value, Edizione has developed a network of companies aimed at offering quality goods, services and infrastructures for modern consumers and people on the move. These companies operate all over the world, in various sectors: clothing, both casual and sportswear, which constitute, with the activities of Benetton Group, the traditional and innovative "heart" of the system; highway and urban catering services; infrastructures and services for mobility and communications; real estate and agriculture; other activities, such as the industrial investments of 21, Investimenti. In total, aggregate turnover exceeds 7 billion euros. The total number of Group employees exceeds 50,000.

Benetton Group

Today, the Benetton Group is present in 120 countries around the world. Its core business is clothing: a group with a strong Italian character whose style, design expertise and passion are clearly seen in the United Colors of Benetton and the more fashion-orientated

Sisley brands; in The Hip Site, the brand for teenagers; and in sportswear brands Playlife and Killer Loop. The Group produces over 100 million garments every year, over 90% in Europe. Its retail network of 5,000 stores around the world is increasingly focused on large floor-space points of sale offering high quality customer services and now generates a total turnover of 2.0 billion euros, net of retail sales.

Highway and Urban catering Autogrill

Autogrill, the world leader in catering services for travellers, is present, also through the American subsidiary Autogrill Group (the former HMSHost), in 14 countries worldwide, with a network of over 4,300 sales and catering outlets,

123 distributed in around 900 locations on highways, in airports and railway stations, as well as in exhibition, shopping and town centres. The variety of services offered (from snack-bars to self-service restaurants, from quick-service pizzerias to coffee shops, from hamburger restaurants to latest generation sandwich bars) and the many brands owned (such as Ciao, Spizzico and ACafe) or under licence (including: Starbucks, Burger King, Sbarro and Pizza Hut) constitute a portfolio of products which is unique in the world in terms of breadth, competitiveness and impact. Total turnover exceeds 3 billion euros. Every year in the Group's establishments over 690 million customers are served with 240 million meals, 260 million cups of coffee, 55 million slices of pizza, 85 million sandwiches and 175 million drinks.

Infrastructure and services for transport and communication Autostrade

Autostrade is Europe's largest toll-highway manager. Its strategic position in the centre of Europe makes it an essential part of the European highway system, in particular along the route from the north to the south of Europe, Rotterdam-Bari, and the east-west route Lisbon-Kiev. For the next five years, the company has outlined an investment strategy of around 10 billion euros, to be used in important new infrastructure projects, the enhancement and modernisation of the existing network, the creation of new stretches of highway and infrastructure for inter-modal exchange. In Italy, Autostrade manages, directly or through related companies, a network of over 3,100 kilometres, with a turnover of around 2.5 billion Euros.

Olimpia

Olimpia is the main stockholder of Telecom Italia, the largest Italian group and one of the main world telecommunications companies. Edizione Holding owns 16.8% of the capital of Olimpia with its industrial partner (50%). The remaining capital of Olimpia is divided between Hopa (16%) and the banking groups IntesaBCI and Unicredito, with around 8% each.

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Grandi Stazioni

Redefinition of the social and economic role of railway stations, with particular reference to the architectural areas and services offered: these are the objectives of Grandi Stazioni, in which Edizione, together with partners such as Pirelli, the Caltagirone Group and SNCF (French railways), holds 40% through Eurostazioni. The project involves 13 of the largest Italian stations, with a total of 700,000 square metres and used by more than 600 million people a year. Roma Termini is the first station where work has been completed, with over 100 shops opened.

Sagat

Sagat, in which Edizione holds 24% of the capital, is engaged in the management of Turin airport and recently acquired 29% of the company which manages Florence airport. Turin and Florence are part of a project which aims to construct a network of integrated Italian airports, with a strong capacity to offer modern services and high added value.

Real estate and agriculture

Edizione Holding owns and manages real estate assets in the principal Italian, European and American cities, as well as large agricultural enterprises in Italy and . The Argentinean holding in Patagonia extends over an area of around 900,000 hectares, with over 280,000 head of livestock. The most significant real estate operations in recent years, in Italy, include purchase of the Hotel Monaco Grand Canal in Venice, opening of the

Relais Monaco (formerly Toulà) near Treviso, construction of the Asolo Golf,the most prestigious in Europe, and acquisition of the 3,000 hectare Maccarese estate at the gates of Rome.

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Other activities

The subsidiary holding company of Edizione Holding, 21,Investimenti, set up as a merchant bank, is now a satellite system of closed investment funds with an industrial approach which focuses its business in minority holdings in medium- size companies with high growth potential. Its stockholders include IntesaBCI, the Seragnoli Group, Deutsche Bank, Fininvest and . 21,Investimenti represents a solid network of skills and international relations, able to focus its attention in those areas and countries which at a given time offer high development potential. Edizione also has significant minority holdings in Pirelli & C. and Banca Antoniana Popolare Veneta.

ENERGY & PETROLEUM INDUSTRY

1. The Italian government has struggled to limit government spending; So Italy's has to reduce high public debt remains above 115% of GDP this gap can be filled by allowing foreign firm to enter in to Italian market

2. Level of taxation is low in Italy as compare to India so it is advisable to major firm to have a production unit in Italy only.

3. To increase the trade relation of energy & petroleum sector in India and Gujarat.

4. To produced raw material for energy in own Country rather than depends on import.

5. Also reduce the tax rate in India so small scale firm also take the advantage of it.

6. As saras is big firm in petroleum production they should focus on foreign market.

7. There are technical barriers or non-tariff barriers to trade, which cause many problems for exporters looking for new markets for their products.

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So, try to ensure that these barriers do not create unnecessary obstacles. These obstacles may restrict the foreign company to invest in country it may lead to slow economic growth it should be liberal.

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment.

The Saras Group operates in the energy sector and is one of the leading independent oil refiners in Europe. With a production capacity of 15 million tons per year (or 300,000 barrels per day), the Saras refinery situated in Sarroch, on the South-Western coast of Sardinia, accounts for about 15% of Italy’s total refining capacity. It is also one of the biggest and most complex sites in the Mediterranean area, and it enjoys a strategic location at the heart of the main oil routes. Moreover, Saras refinery is regarded as a model of efficiency and environmental sustainability. India's exports to Italy deal mainly in textiles, including cotton and synthetic yarns and fabrics, readymade garments, motor vehicles, footwear, iron and steel, leather and leather goods and many other items. Saras Spa, a subsidiary of Angelo Moratti Sapa, is the parent company, established in 1962 to carry out refining activities. Today, it owns the Sarroch production site.

High GDP growth rate, rapidly growing vehicle population and better road infrastructure will drive consumption of petroleum products. Industry is expected to grow at a CAGR of about 8% to 10%.

ACCESSORIES INDUSTRY

The formula used by Gucci in the marketing of its has remained unchanged for the better part of fifty years. The focus still remains on the customer and the loyalty he has towards the Gucci product. Because the luxury goods market falls well outside the normal boundaries of hierarchical needs, the

127 product range find itself in the sector of non-economic influences. Gucci has come to terms with this in the very early stages of development, and has marketed the prestige and expensive way of life that Gucci has to offer.

The product design, quality and brand name has become synonymous with the elite, and will continue to do so because of the well maintained distribution of its products throughout the world

The Gucci Company should primarily look at the market development and concentrate on new development within existing markets or possibly new markets that carry the status and appeal suitable to the Gucci brand. The Asian luxury goods market is a definite new market to consider, and definite growth can come from the new stores recently opened in Japan. We got calculated that although there are several designers providing product but GUCCI must take more innovative steps to be at the top rank.“DESIGNERS WORK AS THE WAY THEY ARE……

 The Market Expansion step is that period when a company assesses current markets, identifies untapped markets, and seeks opportunities for revenue growth through new market opportunities. The market expansion step will result in estimates for delivering new capabilities to current markets, and potential new markets for existing products.  Gucci has a strong brand image worldwide but it has not expanded yet into other markets mainly because for a couple of years of operations, it has focused in major markets in Europe and North America  The step that the company can undertake is to capitalize on favorable opportunity- Asian market. Asia, according to studies, is a fast growing economy worldwide. High net worth individuals are increasing in number in the region- quite an opportunity for luxury good company like of Gucci

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 Gucci can also treat Asia as country-by-country region to identify and categorize more potential markets from the less ones. In that case, it will reduce cost in investments. Japan, China, Hong Kong, Korea, Singapore are top five most countries that are seen by most researchers that can be tapped by Gucci.  Revitalize the virtuous cycle by a push strategy.  Control distribution to have a scrupulous respect and coherence of the brand image”.  Increase sales by fully exploiting core segment and broadening its geographic reach.  Increase profitability via excellence in operations.  Emphasize the quality of raw material procurement.  Control quality by keeping an integrated manufacturing process, making it a core

AUTOMOBILE INDUSTRY Concurrently these Indian automotive firms are also aggressively transnation alizing their business through strategic alliances, exports and outward FDI. The phenomena of rising outward investment (both greenfield and acquisitions) fro m Indian automotive sector present an interesting case of cross‐border knowle dge flows led by developing country enterprises. The R & D by the Indian automobile firms can also be encouraged by facilitating the firms’ access to foreign technical collaborations and enhancing export- supporting infrastructure. Also since the size variable has a positive impact on R&D intensity, and the Indi an automotive firms are relatively small by international standard, measures to mitigate small size disadvantage like clusters upgradation and common testing f acilities could be very helpful in pushing up automotive R&D.

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Fiat is looking to enhance their distribution networks and is looking at ways in which it can do this without the assistance of Tata Motors or relying on their popularity in the country. If this revamped joint venture between Fiat and Tata Motors comes into effect, it would have an adverse impact on over 40 Tata Fiat dealerships in over 20 cities of India.

The case studies of Fiat and TATA groups clearly show that these groups are e ngaged in in‐house knowledge creation and are seeking external complementy technical and value‐adding manufacturing assets. When these groups undertae greenfield OFDI and strategic acquisitions, they becomesource as well as re cipients of cross‐border knowledge flows.

The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster near Chennai is the biggest with 35% of the revenue share. The western hub near Maharashtra is 33% of the market. The northern cluster is primarily Haryana with 32%. Chennai, is also referred to as the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts

BICYCLE INDUSTRY (BASSO COMPANY)

As per strong relation of India & Italy we conclude that Italy is India's fifth largest trading partner in the EU. Italy is the 13th largest foreign investor in India. The European countries ahead of Italy in this respect are UK, Germany, France and Sweden. The Indo-Italian bilateral trend has been constantly increasing at high rates in last six years and only due to the global economic recession, in 2009 the trend has registered a negative growth, but in recent time it’s again going on with good position; so it’s very good opportunities for India to growth.

As per basso Bicycle Company we conclude that the grand total of bicycles sold with the governmental incentives was 103,500 units in 2009. Not only bicycles

130 were sold but customers also bought other cycling products, such as gloves, glasses, shoes, spare parts, etc. Even more important for the future – the fact Italians discovered ‘normal’ cycling again. Market change Without any doubt the governmental incentives gave a great push to the bicycle market in Italy in 2009. Not only did it save the bicycle industry during the economic crisis, it brought end-users back to the bicycle shops as consumers re-discovered the enjoyment of cycling. So it’s good for India to make growth in particular bicycle industry.

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Plagiarism Test Report

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