June 2011
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Schneider Electric to buy 74% in Luminous for Rs 1,400 crore

France's Schneider Electric will buy 74% in inverter-maker Luminous Power Technologies for Rs 1,400 crore, making its eighth acquisition in two years in the rapidly-growing market. Luminous Power would continue to operate with the same management and brand. Luminous had debt of Rs 240 crore at the end of March, earned Rs 1,100 crore revenue during the year, and employs about 3,000 people at nine sites in India and China. ET had first reported Schneider's approach on April 1. Schneider Electric India managing director Olivier Blum said the joint venture would provide the company a strong platform to reach out to Indian consumers that is growing at 20% every year. […]

Tatas sell 51% in arm for Rs 576cr

Nippon Steel's associate Krosaki Harima Corporation (KHC), a leading global refractory maker, has completed the acquisition of 51% stake in Tata Steel's group company Tata Refractories(TRL) for Rs 576.3 crore. With this sake sale, Tata Steel's holding in TRL would fall to 26.46%. The company has also inducted the Japanese firm as a strategic partner in the largest domestic refractory manufacturer. Tata Steel shares closed at Rs 589.10 a piece on the BSE today, up 1.51% from the previous close. “The company has completed the transaction and received the relevant consideration for the transfer of 51% equity shares of TRL out of its current stake of 77.46% stake in TRL to Krosaki Harima Corporation of Japan at an equity valuation of Rs 1,130 crore,” said the company in a statement to the Bombay Stock Exchange (BSE) on Tuesday. […]

Jyothy close to raising $150-$200 mln from PE funds

Consumer goods maker Jyothy Laboratories is close to raising about $150-$200 million from private equity funds, with a deal likely to be announced in 6-8 weeks, three sources with direct knowledge of the matter told Reuters. The Indian maker of fabric whiteners and detergents is in talks with a clutch of private-equity funds including the Carlyle Group, Actis, TPG Capital and Apax Partners to sell a minority stake, sources said. The deal could be the second round of private equity infusion into Jyothy as Actis, CLSA and Baring India had invested and exited from the company earlier. Jyothy Labs recently bought 51 percent of Henkel AG's Indian arm for 5.7 billion rupees ($127 million). […]

Godrej acquires 51% stake in pan-African hair care company

Godrej Consumer Products (GCPL) has acquired 51 per cent stake in Darling Group Holdings that manufactures and distributes a range of hair extension products across sub-Saharan Africa. The deal is expected to enable GCPL to leverage its product portfolio and capabilities in personal wash, toiletries, household insecticides and air care across the African continent. Also, the company aims to build a global, premium ethnic hair care brand across Africa through marketing and innovation processes. Darling Group’s current management team will continue to manage the business. GCPL will put in place a cross-functional team consisting of current Darling Group management and GCPL’s team members. These teams will work in the areas of marketing, sales, manufacturing, finance and human resources. GCPL believes that over time, this acquisition can provide a strong distribution and marketing platform for taking other home and personal care products from the company’s portfolio to the African consumer. […]

LPs squeeze private equity fund managers to slash fees

Necessity, they say, is the mother of invention. In the high adrenaline world of private equity (PE), it’s also a matter of sustenance. So at a time when raising money for new PE schemes from global high new worth individuals (HNIs), family offices, endowment and educational trusts or pension schemes — or any such limited partners (LPs) in industryspeak — is becoming exceedingly tough, GPs from these fund houses are coming out with innovative ideas to woo global investors. Forget about lock-ins, assured IRRs or ROEs or any other high finance jargon. In this mad scramble (see chart: On the road) of getting a cheque signed from the fat cats, some GPs are even willing to give personal guarantees against investments, offer a liquid pool of cash — in many cases from their own pocket — for “any time” redemptions and are willing to negotiate and split the traditional 2 per cent management fee. Lawyers, global placement agency chiefs, and the fund managers will not take specific names but recently two real estate PE funds, based out of Mumbai and Delhi, raised about Rs 300 crore each after negotiating with LPs and by keeping a liquid cash pool. […]