March 2010
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PE troubles in family biz

When the promotor family of retail chain Nilgiris dragged the private equity (PE) investor, Actis, to the Company Law Board (CLB), it was the culmination of a dispute that had been simmering for nearly two years. The differences related to many aspects of the business, starting with the pace of expansion to the kind of merchandise the stores should sell. Nilgiris, present in South India for close to 100 years, divested 65 per cent to the UK-based fund for $65 million nearly three years ago. This was after bitter differences among the family members on whether a PE investor should come on board. The story of Indian family businesses running into trouble with their PE investors is not new. Industry watchers say that while no specific reason can be given, these tensions are inherent in the difference between the way traditional families run businesses and the approach of global PE investors, who have their own systems and procedures. […]

India invests USD 1.35 Bn in Myanmar

INDIA is investing US$1.35 billion (S$1.9 billion) in gas projects in military-ruled Myanmar, the two governments have announced, as the neighbouring nations pursue closer economic and diplomatic ties. India's Oil and Natural Gas Corp (ONGC) and Gas Authority of India Ltd (Gail) will spend US$1.1 billion on rights to develop two gas field blocks and US$250 million on a connecting pipeline, India's energy ministry said in a statement.The other US$250-million investment gives India a 12.5-per cent stake in a US$2-billion pipeline being built by China National Petroleum Corp (CNPC), China's top oil producer. The first gas is expected in early 2013. ONGC will spend US$167.8 million while Gail will invest US$83.8 million in the 771-kilometre (480-mile) pipeline which will transport gas from the two blocks off the Myanmar coast to China. […]

TCIL Invites Bids For 30% Stake In Bharti Hexacom

Telecommunication Consultants of India Ltd., or TCIL, Wednesday invited expressions of interest for the sale of its entire 30% stake in Bharti Hexacom Ltd. through an open bidding process. The rest of Bharti Hexacom is owned by Bharti Airtel Ltd. (532454.BY), which will get first right of refusal, said TCIL. Bharti Hexacom provides telephony and related services in the Rajasthan state and in India's north-east region as well. […]