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  • pg 1
									                 Volume 87, June 6th, 2011

For the period May 30, 2011 to June 5, 2011
                                       Rishabh Instruments Acquires 85% Stake In
                                       Poland-Based Lumel…(3)

                                       Japan's Kokuyo To Acquire 50.3% In Camlin
                                       For Rs 360 cr…(4)
Content                        Pages
                                       UK's Serco Acquires Intelenet For Rs 2,856
Mergers & Acquisitions News     3-3    cr…(4)

Mergers & Acquisitions Deals    3-7    Sedgwick CMS Acquires Cambridge Solutions'
                                       US Arm.…(5)
Private Equity News             7-8
                                       Tata Steel Sells 51% Stake In           Tata
                                       Refractories To Nippon Steel Unit…(5)
Private Equity Deals            8-9
                                       Tata Steel Sells 51% Stake In           Tata
Venture Capital News            9-10   Refractories To Nippon Steel Unit…(6)

Venture Capital Deals          10-10   HSIL Acquires Mumbai-Based Packaging Co
                                       For Rs 89 cr…(7)

                                       IDFC PE Set To Put Rs 150 cr Into GVR Infra

                                       NCMSL Raises Rs 101.75 cr From Rabo
                                       Equity, IFC & Others…(9)

                                       SAP Ventures To Invest $7.5 mn In Just Dial
                                       In A Pre-IPO Deal…(9)

                                       Ojas Ventures Co-Invests In US-Based Social
                                       Gaming Start-Up Play140…(10)

                                       IFCI Venture Capital To Put Rs 25 cr Into
                                       Metals Recycling Co…(10)
Mergers & Acquisitions News
IL&FS May Sell Its Stake In Orix Auto Infra To Hertz

IL&FS may sell its entire stake in Orix Auto Infrastructure services Ltd to Hertz Corporation.
Established in March 1995 as a JV in India between Infrastructure Leasing & Financial Services
Limited (IL&FS) and Japan's ORIX Corporation, Orix Auto provides automobile finance, car
rental and taxi services.

McCormick In JV With Kohinoor Foods; To Invest $115 mn

US spice maker McCormick & Co continues to ramp up its capabilities by striking partnerships
in India. The food and seasonings maker is now forming a joint venture with India-based
Kohinoor Foods Ltd to market and sell the latter’s basmati rice and food products in India.
McCormick, which sells spices, herbs, seasoning blends and sauces to grocers, warehouse
clubs and discount & drug stores, said it would invest $115 million for an 85% stake in Kohinoor
Specialty Foods India Pvt Ltd, valuing the firm at $135 million (Rs 608 crore). The deal is
expected to close later this year, subject to regulatory and other approvals in India. The
company makes and distributes rice, cooking pastes, spices, seasonings and frozen food items
in India. The venture builds on McCormick’s investments in India and its strategy to expand
sales in emerging markets. Including India, McCormick expects emerging markets to contribute
12% of sales by 2015, an increase from 9 per cent in 2010.The company expects the deal to
reduce its earnings per share by about 2-3 cents a share this year and add to earnings from

Mergers & Acquisitions Deals

Rishabh Instruments Acquires 85% Stake In Poland-Based Lumel

Nashik-based Rishabh Instruments Pvt Ltd has acquired 85% stake in Poland-based Lumel
S.A. The acquisition will help Rishabh to expand its presence into the European markets and
will also get access to Lumel's technology and R&D capabilities, while Lumen will benefit from
Rishabh's expertise in electrical and electronic instruments. Lumel S.A., established in Zielona
Gora in Poland, is a manufacturer of industrial automation equipment and aluminium pressure
Tata Chemicals Acquires 32.9% Stake In EPM Mining Ventures

Tata Chemicals Limited has acquired 32.9% stake in US-based EPM Mining Ventures Inc
through its US-based subsidiary Valley Holdings Inc (VHI), by purchasing 1,66,77,612 common

Japan's Kokuyo To Acquire 50.3% In Camlin For Rs 360 cr

Japan's Kokuyo S&T Co. will acquire 50.3% stake in Camlin Ltd for Rs.360 cr. The two
companies have signed a deal under which the Kokuyo will acquire a majority stake in Camlin in
three tranches, after which the Indian firm will be converted into a JV. Under the agreement,
Kokuyo will acquire 10% stake in Camlin through preferential allotment at Rs.85 per share. The
amount will be used for expansion and modernization of manufacturing facilities and new
projects. Besides, Kokuyo will acquire another 20.3% stake from Camlin promoters at Rs.110
per share, which will be followed with an open offer for another 20% stake in accordance with
SEBI regulations, at Rs.110 per share. Kokuyo which will bring in managerial, marketing,
manufacturing and product research and development skills, will have the right to nominate four
directors on Camlin's board. As part of the deal, Dilip Dandekar will continue as the CMD of
Camlin, and Shriram Dandekar as the executive director. Kokuyo S&T is a fully owned
subsidiary of Kokuyo Co, a firm with over 100 years of experience in stationery and furniture
products, design and construction of office and store interiors, mail order business, lifestyle
retail and distribution, and having an annual turnover of over $3.2 billion.

Saint-Gobain Acquires Sezal Glass' Float Glass Biz For Rs 686 cr

Saint-Gobain Glass India Ltd has acquired Sezal Glass Ltd's float glass business for Rs.686 cr
($152.4 mn). The floating glass facility in Jhagadia Industrial Estate in Bharuch, Gujarat has the
capacity to produce 550 million tons of glass a day. The deal will expand Saint Gobain's glass
business in India. Sezal Glass' 550 TPD float glass plant became operational in FY10 and
started to export float glass within the first quarter of operation.

Coromandel International Acquires 42.22% In Sabero Organics

Coromandel International Limited has acquired 42.22% stake in Sabero Organics Gujarat
Limited for Rs.283.77 cr. Coromandel has acquired 14.29 mn shares at Rs.160 per share plus a
non-compete fee of Rs.38.47 per share. Coromandel will also make an open offer for acquiring
upto 31% of equity shares of Sabero, in accordance with SEBI regulations. The acquisition will
enable Coromandel to increase its sales in Latin America, Australia and parts of Europe.

UK's Serco Acquires Intelenet For Rs 2,856 cr

UK-based Serco Group Plc has acquired Mumbai-based Intelenet Global Services Private
Limited for $635 mn (Rs.2856 cr). With this transaction, Blackstone Advisors India Pvt. Ltd. will
sell its entire 67% holding in Intelenet for $420 mn (Rs.1890 cr). Blackstone invested $200 mn
in the outsourcing firm in 2007, which translates to a 110% return over four years. Serco bought
the remaining 33% stake from HDFC, Barclays Bank Plc, and Intelenet's management team.
The acquisition consideration of 385 mn pounds includes 50 mn pounds payout, which will
depend on Intelenet meeting the revenue growth targets agreed upon and maintaining profit
margins. The transaction gives Serco, a presence in the Indian BPO space.

Godrej Consumer Acquires 51% Stake In Africa's Darling Group

Godrej Consumer Products Ltd has acquired 51% stake in African hair care firm Darling Group
Holdings. Established in 1982, The Darling Group, which makes hair extension products under
the brands 'Darling' and 'Amigos', operates in 14 countries across sub-Saharan Africa. The deal
will expand Godrej's operations in Africa, which already has a presence in the African market
through its brand 'Inecto'.

Komli Media Buys Singapore-Based Aktiv Digital

Online ad network platform Komli Media India Pvt Ltd has acquired Singapore-based online
advertising firm, Aktiv Digital. Aktiv Digital has a consolidated platform for buying online media
across its Premier, Target and Performance product suites that deliver single-site buys, content
channels and a performance-based offering with retargeting capabilities. The acquisition will
help Komli Media to expand its reach from 50 mn users to more than 60 mn users, worldwide
and will give presence in Singapore, Hong Kong, Malaysia and the Philippines market.

BenefitsPLUS Acquires Snowball eRetail Services

BenefitsPLUS Media Private Limited has acquired Gurgaon-based Snowball eRetail Services
Private Limited to strengthen its online retail presence. Founded by Mohit Saxena and Rahul
Monie in 2009, Snowball eRetail runs retail portal, Snowball.in, offering products across 23
categories like apparels, jewellery, shoes, perfumes, leather goods, cosmetics, electronic
products, white goods, education, and other lifestyle products. It has representations in Mumbai
and Bangalore.

Sedgwick CMS Acquires Cambridge Solutions' US Arm

US-based Sedgwick Claims Management Services Inc has acquired the operations of
Cambridge Integrated Services Group, Inc (CISGI), a wholly-owned subsidiary of Cambridge
Solutions Ltd, for $22.7 mn (around Rs.101.9 cr). Due to unsatisfactory returns and significant
future commitments of CISGI, the board of Cambridge Solutions approved the sale of the USA
workers' compensation and third party administration operations of CISGI to Sedgwick. For
Sedgwick, the acquisition will provide an array of services in the industry, in the areas of
transportation liability, consumer financial services, structured settlements, and Medicare
Dynamatic Technologies Buys German Auto Component Firm Eisenwerke Erla

Dynamatic Technologies Ltd has acquired German automotive component maker Eisenwerke
Erla GmbH, through its wholly owned subsidiary, JKM Erla Automotive Limited, in cash.
Dynamatic, run by Udayant Malhoutra, has acquired the company from Chennai-based Sanmar
Group, who had bought Eisenwerke in January 2007. The acquisition will expand Dynamic's
presence in exhaust and turbocharger segments of the automotive industry and will get access
to manufacturing locations in Europe and Asia. The deal will also enhance its design,
development and manufacturing capabilities. Eisenwerke, which supplies components to global
automobile majors such as Audi, BMW, Volkswagen and Daimler, earns revenues of over 100
Mn Euros. It has manufacturing facilities in the German town of Erla and in Chennai.

Tata Steel Sells 51% Stake In Tata Refractories To Nippon Steel Unit

Tata Steel has completed its 51% stake sales in Tata Refractories Ltd to Krosaki Harima Corp,
a unit of Japan’s Nippon Steel, for Rs 1130 crore, the company said in a press release to the
stock exchanges. Post-sales, Tata Steel holds 26.46% stake in Tata Refractories in which
Krosaki Harima is a strategic partner. Earlier, on April 21, the leading steel maker had
announced that it had entered into definite agreement with the Japanese firm for the deal. Tata
Steel will continue to hold 26.46% stake in TRL – the largest domestic refractories
manufacturer. Bringing in KHC as strategic partner will help bring technical expertise into the
Tata Refractories and will give it access to new markets, the company has said. Krosaki Harima
Corp is a leading global refractories maker and its 42.9% equity is owned by Nippon Steel. On
the other hand, Tata Refractories is the largest refractories manufacturer in India and meets the
requirement of industries like steel, glass, cement, non-ferrous and petro-chemicals. Its facility
at Belpahar, Orissa, is considered to be the largest among all single refractory producing units
in the world.

Schneider Electric Buys 74% of Luminous For Around $310 mn

French electrical-engineering and power-management company Schneider Electric SA said that
it has acquired 74% of the inverter and battery maker Luminous Power Technologies for around
EUR 215 million or $310 million. This acquisition paves way for an exit for financial investors. In
2007, CLSA Capital Partners, picked up a minority stake in Luminous for $20 million. The
purchase price for 74% of the shares is $310 million. The total net debt of the company was Rs
240 crore as of 31 March 2011, leading to an implied transaction multiple of ~16x fiscal 2011
EBITDA. The remaining 26% owned by the founders will be subject to put and call options. This
acquisition is expected to be accretive on earnings per share from the first year. This return on
capital employed of the acquisition is expected to beat Schneider Electric’s weighted average
cost of capital in year in year 4, the company said. The battery maker employs about 3,000
people in 8 different industrial sites in India and one in China.
HSIL Acquires Mumbai-Based Packaging Co For Rs 89 cr

Hindustan Sanitaryware & Industries Ltd (HSIL) said it is joining hands with its promoters - the
Somany family - to jointly acquire Mumbai-based Garden Polymers Private Ltd for Rs 89 crore.
Garden Polymers is engaged in manufacturing of PET bottles, caps and closures and have
manufacturing plants at Dharwad (Karnataka) and Selaqui (Uttarakhand). Both the plants will
have a combined capacity of 7,500 tonnes per annum. It supplies to customers in liquor,
pharmaceuticals and FMCG industry. HSIL is looking to gain management control of Garden
Polymers by the end of July. It will acquire 60% stake in Garden Polymers. This acquisition has
synergies with company's container glass division which supplies to the same set of customers.
This will further strengthen company's position as packaging solution provider and will be value
accretive for its shareholders from Day 1. HSIL Ltd, a Kolkata-based company engaged in
manufacturing sanitaryware products, had early last year acquired the faucet business unit of
Havells India Ltd (which, in turn, is backed by Warburg Pincus and Saif Partners) in an all-cash
transaction. HSIL itself is backed by Henderson Asia Pacific Equity Partners.

Essar Receives $1.9 bn From Vodafone Group

UK-based Vodafone Group Plc. has paid Essar Group $1.9 billion. In March, Vodafone
announced that it would pay $5 billion to buy out Essar Group’s stake in Vodafone Essar. The
settlement was to be finalized by November, 2011. The $1.9 billion is the first tranche of this
settlement. In April this year, Essar Group demanded $600-$700 million more from Vodafone
Group. However, there is no further information from either company on an increase in the total
amount. Vodafone India witnessed 23.95% rise in revenues to $6.16 billion for the fiscal year
ended March 31, 2011. Vodafone Group also faces a $1 billion tax from Indian tax authorities
regarding its acquisition of Essar Group’s offshoring holding. The GSM operator has 136.97
million subscribers in India as of April, 2011, according to industry body Cellular Operators
Association of India (COAI). Yesterday, it issued a legal notice to a customer for repeatedly
posting defamatory remarks about the company on Facebook.

India Venture To Launch Rs 500 cr Healthcare Fund

Ajay Piramal's and AK Purwar's India Venture Advisors Private Limited is planning to launch
Rs.500 cr healthcare fund by September this year. The investors in the fund will be domestic,
including institutional and high net worth individuals. Launched in 2007, India Venture Advisors
has a corpus of Rs.900 cr ($200 mn). India Venture Advisors, which focuses on healthcare and
life sciences segment, has invested $11 mn in C&C Construction last year and $18.4 mn in
Kavery Medical Centre (KMC) and Hospital, Trichy in 2009.
IDFC PE Set To Put Rs 150 cr Into GVR Infra Projects

IDFC Private Equity, an infrastructure-focused private equity firm, is close to investing $30
million into GVR Infra Projects – a Chennai-based infra project management company. Sources
close to the development add that this investment values the company at about Rs 700-Rs 750
crore or about 11 times its FY11 earnings. The private equity firm has already completed the
due diligence process on the company and the deal is in the final documentation stage. A few
projects that the company plans to undertake are infrastructure projects including road sector
and port sector projects in Gujarat, Maharashtra, Orissa, Tamil Nadu, Andhra Pradesh and
Karnataka; BOT and Annuity Road Sector Projects under the NHAI in Andhra and Karnataka;
civil works in the power projects across Uttar Pradesh and Chhattisgarh; setting up of mini hydel
projects in Himachal, Sikkim, Arunachal Pradesh and Uttranchal; setting up a 1200 MW thermal
power project in Tamil Nadu; port development project at Jaffrabad, Gujarat; integrated logistics
complex in north Chennai and building works and other civil works in major PSUs and private

IL&FS PE, Asia Mezzanine Capital Invest In IPO-Bound SFO Technologies

SFO Technologies Pvt Ltd, a part of the Kochi-based NeST Group, has raised Rs 101 crore
from IL&FS Investment Managers (IIML) and Hong Kong-based fund manager Asia Mezzanine
Capital Group (AMCG). This is a part of the $37.5 million raised by the company from an
investor consortium comprising of three PE investors – Franklin Templeton Private Equity
Strategy, a portfolio managed by Franklin Templeton Asset Management (India) Pvt Ltd; IL&FS
Investment Managers (IIML) and Asia Mezzanine Capital Group (AMCG). Franklin Templeton
Asset Management (India) Pvt Ltd (FT India) said that its PE arm had invested Rs 67.5 crore in
SFO. The company had earlier raised capital from India Value Fund Advisors. The current
funding will enable SFO to strengthen its manufacturing and design facilities in Cochin and
Bangalore, apart from enabling the company to look at acquisitions in the USA and Europe.
SFO is also targeting an IPO in the next 12-18 months. SFO, which employs around 4,000
people, is one of the largest electronic manufacturing services (EMS) players in India, focused
on low-volume, high-mix products in emerging segments such as healthcare, automotive and
industrial space. SFO provides services across the entire spectrum, including design,
manufacturing and embedded software development.

NCMSL Raises Rs 101.75 cr From Rabo Equity, IFC & Others

National Collateral Management Services Ltd (NCMSL), a leading private agri-warehousing
company, is raising additional equity of Rs 101.75 crore from IABF, IFC and four of its existing
shareholders. The India Agri-Business Fund (IABF), floated by Rabobank and the International
Finance Corporation (member of the World Bank Group), will be investing Rs 34.50 crore and
Rs 27.50 crore respectively. IFFCO will be the largest shareholder participant, with an
investment of Rs 23.75 crore. Three other existing shareholders of NCMSL – Karur Vysya Bank
Ltd (KVB), Haryana State Co-operative Supply and Marketing Federation Ltd (HAFED) and
National Commodity & Derivatives Exchange Ltd (NCDEX) – will also participate in the
additional equity plan to the extent of Rs 9.15 crore, Rs 4.85 crore and Rs 2 crore respectively.

Clearwater In Part-Exit Mode; Offloads Another 2% in Sayaji Hotels

Private equity firm Clearwater Capital Partners has sold 2% stake in hospitality firm Sayaji
Hotels to its promoters for Rs 4.68 crore in yet another round of part exit. Two weeks ago,
Clearwater sold 2.85% of the Vadodara-based firm for Rs 6.5 crore or $1.4 million to the
promoters. Although the promoters have picked up close to 5% through open market
purchases, the maximum allowed in a year under the creeping acquisition norms without
triggering a mandatory open offer, Clearwater can continue to offload its stake by selling to
other investors in the open market. Clearwater’s part-exit comes one year after it hiked its
holding in the hotel firm to 32.87%. The investment fund had picked 14.9% stake in the
hospitality and restaurant chain company, with an investment of around Rs 11.8 crore in May,
2006. Clearwater also invested through foreign currency convertible bonds (FCCBs) which were
converted into equity last year, giving it a large minority stake in the company. The New York-
based special situations fund held FCCBs worth $7.5 million in the company, which had been
converted into equity at Rs 75 per share last year, giving it 32.87 per cent stake. It also came up
with an open offer last year at a price of Rs 115.73 (including interest payment for delay in the
offer), but could not find many takers.

SAP Ventures To Invest $7.5 mn In Just Dial In A Pre-IPO Deal

SAP Ventures, the corporate venture capital arm of SAP AG (an enterprise software application
leader), is investing $7.5 million for a 1.5% stake in Just Dial, which values the Mumbai-based
and India-specific search firm at $500 million or around Rs 2,250 crore. This is a pre-IPO
transaction and the local search firm is slated for its maiden public float soon. The company is
filing it's DHRP later this month and will likely list in the range of Rs 3000 to Rs 4000 crore. This
deal translates into a phenomenal value growth for an Indian company within a short span of
time, as the firm has seen its valuation jump fivefold in the last two years alone. Just Dial had
raised its first round of institutional funding of Rs 50 crore from SAIF Partners in 2006, followed
by another investment worth Rs 77 crore by Tiger Global in 2007. SAIF Partners is the first and
largest institutional investor in Just Dial with about 23% stake. Sequoia Capital India had also
picked up a little over 10% stake from an early investor for Rs 40 crore in mid-2009 in a
secondary deal. Founded by VSS Mani in 1994, Just Dial is a local search firm which provides
both B2C and B2B listings of small and medium business advertisers across the country. It
provides services over the internet, phone, wireless and print. Its business model involves
charging a local business a listing fee which can range between Rs 3,000 and a few lakhs. The
service is free for consumers. The company has a presence in 240 cities with 3.5 million listings
and 25 million users.

Ojas Ventures Co-Invests In US-Based Social Gaming Start-Up Play140

Bangalore-based Ojas Venture Partners, along with SOS Ventures of China, invested in the US-
based Play140, a social gaming start-up. Play140 was founded in 2010 by three entrepreneurs
– Shawn Broderick, Andrea Shubert and Tom Monaghan, with 50 years of combined experience
in software and gaming markets. This is Broderick’s second online games company. He had
earlier founded Genetic Anomalies. What’s unique about Play140 games is that users here can
play interactive games via text messages across myriad, disparate mediums such as SMS,
Twitter, Web, IM, set-top boxes, smartphones, Tablets and beyond. Ojas provides seed and
early stage capital to companies operating in India. The size of the fund is $35 million. It
typically invests $0.25 million-$1.5 million in its portfolio companies and also funds subsequent
rounds, up to a maximum of $3 million. Recently, Ojas, along with Inventus Capital Partners,
had invested $0.67 million in Bangalore-based Vizury Interactive Pvt Ltd in its first round of
funding. Ojas invested $0.35 million in the target company. Vizury Interactive is a digital
marketing firm which provides services in the areas of consumer electronics, automobile,
hospitality, IT & ITES, consultancy and education.

IFCI Venture Capital To Put Rs 25 cr Into Metals Recycling Co

IFCI Venture Capital Ltd, a venture capital arm of IFCI, has invested Rs 25 crore to pick an
undisclosed minority stake in Century Metal Recycling Pvt Ltd, a company which sells recycled
aluminum and zinc alloys to leading automotive parts manufacturers. Founded by first-
generation entrepreneur GS Agarwal, along with his son Mohan Agarwal, the recycling
company began as a small plant in 1986, with 500 tonnes of annual capacity, and has now
grown into one of the largest recycling plants in India, with an estimated 90,000 tonnes annual
capacity. The monies raised will be used to set up more plants across India.
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