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It is one big stable of familiar household brands marrying another set of popular over-the-counter trademarks. UK-based Reckitt Benckiser (RB), the company behind brands such as Dettol, Clearsil, Durex and Disprin, said on Monday it would acquire Ahmedabad-based Paras Pharmaceuticals, which owns medicine brands such as Moov, Krack and D’Cold, in a R3,620-crore deal. Privately-held Paras is valued at eight times its net sales of R401 crore in 2009-10 in the deal that would give a gain of more than Rs 1,000 crore to the founding Patel family. Elite suitors including Emami, Dabur, Piramal Healthcare, Pfizer, GlaxoSmithkline, Merck, Abott and Sanofi Aventis were in the race to acquire Paras before RB won its hand. […]
As scams and controversies loom over the real estate sector, private equity (PE) investors are consolidating investments and opting for tranche-based investments. While most of the equity level deals have been put in the deep freezer, deals at project levels through creating special purpose vehicle (SPV), are being evaluated. In most of the cases, the PE players are dishing out new checks and balances to secure them against any risks, say industry trackers. “With respect to return structures, PE investors are presently biased towards a structured debt model which has some form of capital protection with an assured IRR (internal rate of return) and in some cases, an additional equity kicker,” said Avinash Gupta, head, financial advisory, Deloitte (India). […]
Rakesh Jhunjhunwala, the billionaire investor known for identifying good companies at start-up stages, has taken up a 30 per cent plus stake in Pune-based Krayon Pictures, co-founded by Kishor Patil, who is also CEO and managing director of KPIT Cummins Infosystems. Krayon Pictures aims at emerging as India’s answer to Walt Disney’s Pixar Animation studios. Jhunjhunwala, termed as India’s Warren Buffet by the Forbes magazine, was also an early investor in KPIT Cummins Infosystems, a Pune-based niche IT firm that is a specialist in the auto sector. “Myself, family and associates hold around 50 per cent of the company while a significant portion is held by other co-founders and is reserved for stock options too. KPIT was Jhunjhunwala’s first unlisted investment and one, which he kept for 10 years. We have had a close interaction since and he, too, has acquired a stake in this venture,” Patil told Financial Chronicle. When contacted, Jhunjhunwala said he was busy and would speak later. […]
Mumbai-based private equity (PE) firm Tano India Advisors Pvt. Ltd, which is raising a $150 million (around Rs.680 crore) fund, has garnered an initial tranche of $54 million, with California-based Charles E. Johnson and family as the anchor investor, Tano’s managing director Carlton Pereira said. Johnson is a former chief executive of investment firm Franklin Templeton Worldwide. Apart from the Johnson family, Hong Kong-based Asia Alternatives Management Llc also invested in the Tano fund. Asia Alternatives is currently managing two funds—the $515 million Asia Alternatives Capital Partners Lp and $950 million Asia Alternatives Capital Partners II, Lp. “We did the first close by November-end and it took roughly eight months,” said Pereira, who started the fund in 2007 along with his partner Hetal Gandhi. Tano India is aiming for its second close by March 2011. […]
The Reserve Bank of India’s permission to banks for roping in for-profit companies as business correspondents (BCs) for financial inclusion has generated interest among private equity (PE) investors. Society for Educational Welfare & Economic Development (SEED), a New Delhi-based organisation, has formed a separate company to manage operations as BCs. It is in discussion with PE players to raise fresh capital. Till now, SEED has been worked on lines of credit from banks. It needs equity venture funding to scale up business to meet its financial inclusion target for March 2012. “Our initial plan is to raise about Rs 50 crore ($ 10 million) and talks with private equity players are at an advanced stage. Equity infusion plans will be firmed up next month”, Anirban Roy, managing director of SEED, told Business Standard. […]
Rallis India, a crop protection subsidiary of Tata Chemicals, on Thursday said it will acquire Bangalore-based seeds research company Metahelix Life Sciences for about Rs 200 crore. In the initial phase of the transaction, Rallis acquired a majority stake of 53.5% in Metahelix in an all-cash deal of Rs 99.5 crore, funded largely through internal accruals, the company said in a statement. Rallis, which has interests in crop protection and fertilisers, said it will further infuse Rs 25 crore to raise its stake to 59.02% in the near future and will aim to make Metahelix a wholly-owned subsidiary by 2015. “The deal works out to twice the projected revenues of next year. Currently, Metahelix's revenue is pegged at around Rs 65 crore and the entity is expected to breakeven next fiscal year,” managing director V Shankar told reporters. Metahelix has been growing at a CAGR of about 40%, he added. With this, the Tata group company which has a small presence in the seed segment, plans a full-fledged entry and is targeting a commutative sales of Rs 1,000 crore over five years. […]
Realtors are turning to private equity (PE) investors and non-banking financial companies (NBFCs) for money as banks tighten funding for real estate firms in the wake of the recent bribes-for-loans scam. At least three real estate companies are currently engaged in talks with PE investors to support their ongoing projects as banks turned risk-averse after transactions with realtors came under the scanner of regulators and investigating agencies, according to investment bankers. Typically, PE funds invest $50-150 million (Rs.225-675 crore) in realty firms for three-five years and make returns of around 25-30% on exit. “It (the scarcity of loans) has just started. The real shortage will be felt in the next 30-45 days. Given that banks are now hesitant to give new loans, the issue is likely to persist at least in the next two quarters. Real estate companies are now looking at private equity and non-banking firms for funds,” said Arun Kedia, director of marketing at Mumbai-based Garnet Construction Ltd. […]
Company to merge its retail operations with ‘Florista’ post-acquisition Bangalore-headquartered rose exporter, Karuturi Global, is planning to acquire a majority stake in the Mumbai-based flower retailer ‘Florista’ for an undisclosed amount in its bid to strengthen its retail presence in the country. Presently, the company has its own retail flower wing ‘Flower Xpress’ with a turnover of around Rs 10 crore. Karuturi Global, which will take a 54 per cent stake in ‘Florista’ will merge its own retail business with the acquired entity, the company said in a filing today. ‘Florista’, with 15 flower boutiques in the country, will help in consolidating the company’s retail operation through this acquisition, it added. […]
With a staggering increase in capital invested across social ventures—$404.58 million in 2010 as compared to $150.36 million in 2009—private equity/ venture capital players are finding a fortune beyond the tip of the pyramid. And, in a turn of focus, interstitially more and more mainstream PE/VC funds are also venturing in this hitherto reserved space of social venture capital funds, making the investment play in the segment dynamic like never before. Fathom this: If social VC funds such as Acumen Fund, Gray Matters Capital and Omidyar Network, in tune with their goals, are investing in a lighting and power company D.light Design, which delivers affordable and quality solutions to serve families living without adequate electricity, it’s being matched up by investments made by mainstream players such as Draper Fisher Jurvetson India (DFJ), who are driven solely by commercial gains. So what is fuelling this growing interest in the social investing space by mainstream players? Draper Fisher Jurvetson India has made recent investments in environmental & facilities services firm Attero Recycling Pvt Ltd and D.light Design Pvt Ltd. […]
Giving shape to his plans to launch a private equity (PE) fund, Mukesh Ambani, chairman of India’s most valuable company Reliance Industries Ltd (RIL), has contributed $200-250 million (Rs.902-1,127.5 crore) in proprietary funding to jump start investments, according to three persons familiar with the development. Ambani, 53, India’s richest man, has appointed Vivek Gupta, former managing director of consulting firm AT Kearney in India, to lead the venture, said the persons, one of whom is directly involved in the venture. None of the three persons wanted to be identified. Gupta could not be contacted immediately. An investment committee has also been formed to evaluate and approve potential investments. Apart from Ambani, the committee comprises Raghunath Anant Mashelkar, scientist and a director on the RIL board, and Ambani’s trusted aide and key RIL executive Manoj Modi. […]
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