Done Deals - Tech & Healthcare 

PE / VC Fund Investments 

IT & ITES > Online Services (Tax Filing)
Fin-e-ssential Infotech raises funds

Prasad Rajappan-founded Fin-e-ssential Infotech India Ltd., a Mumbai, MH-based provider of online tax filing services, has raised an undisclosed amount from Mumbai Angels and Erasmic Ventures, media reports indicate. Fin-e-ssential, launched in 2000, operates tax filing portal Filemyreturns.com.

http://www.filemyreturns.com

IT & ITES > Online Services (Education)
Vriti Infocom raises funds from Intel Capital

Educational portals operator Vriti Infocom has raised an undisclosed amount from Intel Capital. The deal is part of Intel Capital’s $60 million investment in eight startups across the world.

For more information:

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/03/AR2008060302722.html

http://www.vriti.com

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Mergers & Acquisitions(Outbound)

IT & ITES > Mobile VAS (Payments)
Tanla acquires Finnish firm Openbit for $16-M

Hyderabad, AP-based listed telecom infrastructure firm Tanla Solutions Ltd. has acquired an 85% stake in Openbit OY, a Finland-based provider of services for on-device payments for mobile applications, for $15.8 million. It will acquire the balance stake in two tranches.

http://www.tanlasolutions.com/images/pdf/tanla_openbitpr050608.pdf

IT & ITES > IT Services (Media & Entertainment)
Cognizant acquires US firm Strategic Vision

Chennai, TN-based listed IT services firm Cognizant has acquired Strategic Vision Consulting (SVC), a Los Angeles, US-based management and technology consulting firm, for an undisclosed amount. SVC, which has over 60 employees, focuses on management consulting and systems implementation for media and entertainment companies, including studios, broadcasters, post-production facilities and interactive media companies.

For more information:

http://cognizant.com/html/news/pressreleases/2008/svc.asp

http://www.strategicvisionconsulting.com

IT & ITES > IT Services (Legal)
Integreon acquires US firm Datum Legal

Mumbai, MH-based KPO firm Integreon Managed Solutions, Inc. has acquired Datum Legal, Inc., a US-based litigation support and Electronic Data Discovery (EDD) company, for an undisclosed amount. Chris Egan, Datum Legal's founder and CEO, has been named Senior VP of Integreon. The acquisition was funded by Philippines-based Ayala Corporation, which is Integreon's majority shareholder.

For more information:

http://www.integreon.com/htms/featuresandnews/DatumAcquisition.asp

http://www.datumlegal.com

Healthcare & Life Sciences > Pharmaceuticals
Cadila to acquire South African firm Simayla

Ahmedabad, GJ-based listed pharmaceuticals firm Cadila Healthcare Ltd. has acquired a 70% stake in South Africa-based Simayla Pharmaceuticals for an undisclosed sum.

For more information:

http://bseindia.com/qresann/news.asp?newsid={6BCAAEEE-4C54-41E8-B840-5F2C591AF62B}

http://www.simayla.co.za

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Mergers & Acquisitions (Domestic)

Healthcare & Life Sciences > Pharmaceuticals
Benzochem acquired by Arch Pharma for $24-M

Mumbai, MH-based pharmaceuticals manufacturer Arch Pharmalabs has acquired a 70% stake in Thane, MH-based Benzochem Lifesciences Pvt. Ltd. for about $24.4 million (Rs. 100 crore), reports Economic Times. Benzochem is a privately held company engaged in API manufacturing for the oncology and anti-malarial drug segment.

Arch Pharmalabs is backed by ICICI Venture, IIML and SwissTec.

For more information:

http://economictimes.indiatimes.com/articleshow/3112087.cms

http://www.benzochem.com

IT & ITES > IT Security
IT Secure acquired by Softcell Tech

Mumbai, MH-based IT services firm Softcell Technologies Ltd. has acquired Mumbai-based IT security firm IT Secure Software for an undisclosed amount, reports Business Standard. IT Secure's MD Peter Theobald will join Softcell.

For more information:

http://business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=IN&autono=39184

http://www.itsecure.com

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Done Deals - Other Sectors

PE / VC Fund Investments 

Media & Entertainment > Entertainment
PVR Pictures to raise $29-M from ICICI Venture, JP Morgan

PVR Pictures, the entertainment arm of New Delhi, DL-based listed multiplex operator PVR Cinemas, is to raise about $29.3 million (Rs. 120 crore) from ICICI Venture and JP Morgan, reports Economic Times. Each fund will invest Rs. 60 crore.

For more information:

http://economictimes.indiatimes.com/rssarticleshow/3102335.cms

http://www.pvrcinemas.com

Hotels & Resorts
Neesa Leisure raises $18-M from Axis PE

Gandhinagar, GJ-based hospitality firm Neesa Leisure Ltd. has raise about $18.3 million (Rs. 75 crore) from Axis Private Equity, reports Economic Times. Neesa, which develops and operates resorts and hotels under the Cambay brand, currently manages three properties and plans to have eight properties in the next three years spread over five cities in western India.

For more information:

http://economictimes.indiatimes.com/articleshow/3114449.cms

http://www.neesaleisure.com

Energy > Pipelines
Corrtech raises $16-M from Axis PE

Ahmedabad, GJ-based oil & gas pipelines firm Corrtech International Pvt Ltd. has raised about $16.3 million (Rs. 67 crore) from Axis Private Equity, reports Economic Times. Corrtech is involved in a number of business segments linked to oil & gas transportation infrastructure and repairs and services of gas turbines.

For more information:

http://economictimes.indiatimes.com/articleshow/3114449.cms

http://www.corrtech.in

Agriculture > Dairy
Parag Milk Foods raises $15-M from Motilal Oswal VC

Pune, MH-based dairy operator Parag Milk Foods Pvt. Ltd. has raised about $14.6 million (Rs. 60 crore) from Motilal Oswal Venture Capital Advisors, reports Economic Times. Parag, which sells its products under the Gowardhan brand, uses only cow’s milk for all its products.

For more information:

http://economictimes.indiatimes.com/Market_News/articleshow/3099988.cms

http://gowardhanindia.com

Manufacturing > Cables
Polycab Wires to raise funds from IFC

Mumbai, MH-based Polycab Wires Pvt. Ltd. is to raise an undisclosed amount from IFC, the PE arm of the World Bank. Polycab Wires manufactures both power cables and light duty cables. The funds will be used for expansion in the company’s Daman plant.

For more information:

http://tinyurl.com/6rskv4

http://www.polycab.com

BFSI > NBFC
AU Financiers raises funds from Motilal Oswal VC

AU Financiers India Pvt. Ltd., a Jaipur, RJ-based NBFC serving customers in rural and semi-urban areas, has raised an undisclosed amount from Motilal Oswal Venture Capital, reports PTI. AU Financiers has used to funds to acquire a 51% stake in Index Money Ltd., a firm promoted by a team of former executives of Tata Motor Finance.

http://www.livemint.com/2008/05/20162622/Motilal-Oswal8217s-PE-fund.html

BFSI > NBFC
Dhandapani Finance to be acquired by Zwirn

Chennai, TN-based listed NBFC Dhandapani Finance Ltd. is to be acquired by Zwirn Pragati Capfin, a US-based investment management fund investing in emerging markets, reports Business Standard. At present, Zwirn holds a 51% stake in Dhandapani while the public holding is at 44%.

http://www.business-standard.com/common/news_article.php?tab=r&autono=324918&subLeft=1&leftnm=2

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Other Private Equity / Strategic Investments

Manufacturing > Modular Kitchens
Italian firm Aran acquires 49% stake in KitchenWorld

KitchenWorld India, a modular kitchens and interior designs firm, has divested a 49% stake to Italy-based modular kitchen firm Aran World for an undisclosed amount, reports Business Standard. Post deal, KitchenWorld will be called Aran KitchenWorld. KitchenWorld India has been Aran's channel partner in India for several years and has nine stores across India.

For more information:

http://tinyurl.com/5uqqol

http://www.kitchenworldindia.com

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IPOs

Other Services > Facilities Management
Mortice Group raises $10-M on AIM

Indian facilities management company Mortice Group has raised ₤5 million ($9.9 million) on the London Stock Exchange's Alternative Investment Market (AIM), reports PTI. Grant Thornton was the financial adviser for the company.

For more information:

http://business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=IN&autono=38989

http://www.morticegroup.com

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Mergers & Acquisitions (Inbound)

Manufacturing > Industrial Chains
UK firm Renold to acquire LGB arm

UK-based automotive engineering firm Renold Plc is in talks to acquire a 75% stake in the industrial chain business of Coimbatore, TN-based listed machine parts manufacturer LG Balakrishnan & Bros (LGB) for an undisclosed amount, reports PTI. The deal is projected to offer Renold an established manufacturing base and sales distribution network in India.

For more information:

http://www.livemint.com/2008/06/09154811/Renold-eyes-75-stake-in-LG-Ba.html

http://www.lgb.co.in

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Mergers & Acquisitions (Outbound)

Energy > Wind Turbines
Suzlon acquires additional stake in REpower

Pune, MH-based listed wind turbine manufacturer Suzlon Energy Ltd. has acquired a 30% stake in Germany-based wind turbine firm REpower Systems from French nuclear firm Areva, reports Business Line. Post deal, Suzlon holds a 66% stake in REpower. In May 2007, after five months of bidding, Suzlon had won the €1.4 billion (about Rs. 7,314 crore) bid to acquire REpower.

For more information:

http://www.thehindubusinessline.com/2008/06/07/stories/2008060751340200.htm

http://www.repower.de

Manufacturing > Home Products
Sadhrta to acquire Austrian firm Samina for $32-M

Sadhrta, the retail arm of Thiruvananthapuram, KL-based IT firm Intelligent Business Systems, is to acquire Austria-based Samina for around €20 million (about $32.2 million), reports PTI. Sadhrta was earlier the joint venture partner of Samina in India. Samina produces and retails sleeping products such as mattresses and pillows.

http://business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=IN&autono=38939

Mining & Minerals
Sadbhav acquires HK firm Ocean Bright

Ahmedabad, GJ-based listed infrastructure services firm Sadbhav Engineering Ltd. has acquired a 74% stake in Hong Kong-based Ocean Bright Corp Ltd. for an undisclosed sum. Ocean Bright and its units hold prospecting rights and licenses for iron ore, copper, limestone and coal in Mozambique.

http://economictimes.indiatimes.com/articleshow/3113512.cms

Engg. & Construction > Engineering Services
M&M acquires Italian firm Engines Engineering

Mumbai, MH-based listed automobile manufacturer Mahindra & Mahindra (M&M) is to acquire Italy-based engineering services firm Engines Engineering SpA for an undisclosed sum, reports Reuters. Engines Engineering is focused on developing motorcycle prototypes and two wheel design.

http://www.livemint.com/2008/06/05103720/India8217s-Mahindra-buys-It.html

Engg. & Construction > Engineering Services
Punj Lloyd acquires UK firm Technodyne

New Delhi, DL-based listed engineering & construction firm Punj Lloyd Ltd. has acquired a 74% stake in UK-based Technodyne International Ltd. for an undisclosed amount, reports Business Line. Technodyne is an engineering, design and consultancy company focused on large scale cryogenic and high pressure tanks.

http://www.thehindubusinessline.com/2008/06/04/stories/2008060451660300.htm

Textiles & Garments > Garments
S Kumars acquires Scottish firm Internacionale

Mumbai, MH-based listed textiles manufacturer S Kumars Nationwide Ltd. has acquired Scottish fashion chain Internacionale for an undisclosed amount, reports Economic Times. Internacionale had been put up for sale due to financial problems.

http://economictimes.indiatimes.com/News/rssarticleshow/3096879.cms

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Mergers & Acquisitions (Domestic)

BFSI > Financial Services
Apollo Sindhoori to be acquired by Aditya Birla Group

The Aditya Birla Group is to acquire a 51% stake in Chennai, TN-based Apollo Sindhoori Capital Investments, the listed financial services firm promoted by the Reddy family of the Apollo Hospitals group, for an undisclosed amount, reports Economic Times.

The Reddys, who are looking to exit the financial services business, also held talks with Reliance and JP Morgan Group, adds the ET report. The enterprise value for Apollo Sindhoori has been estimated at Rs. 400 crore.

For more information:

http://economictimes.indiatimes.com/articleshow/3115074.cms

http://www.apollosindhoori.com

Media & Entertainment > Publishing
Wadhwa Napur merged with LexisNexis

Wadhwa Nagpur, a New Delhi, DL-based legal publisher, has been merged with New Delhi-based information services provider LexisNexis Butterworths India. LexisNexis is part of global publishing group Reed Elsevier.

http://www.lexisnexis.co.in/default2.asp?a=g&page=announcement20080604

Agriculture > Sugar
Alagawadi Bireshwar to be acquired by GMR Industries

GMR Industries, the agribusiness arm of Bangalore, KA-based GMR Group, is to acquire Alagawadi Bireshwar Sugars, which holds the license to set up and operate a 3,500 TCD sugar mill at Raibagh in Karnataka, reports Business Line. GMR will spend about $110 million (Rs. 450 crore) for the acquisition and expansion of Alagawadi.

http://www.thehindubusinessline.com/2008/06/04/stories/2008060451880200.htm

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The Venture Intelligence web log by Arun Natarajan, Founder of the Venture Intelligence service, tracks entrepreneurship, venture capital and business issues with a special focus on India.

Here are some recent extracts from the blog:

"Cold chains becoming a hot opportunity"

            Business Today has an article on how a slew of companies are setting up cold chain infrastructure across India service the needs of modern retailers.

            The business rationale for entering a country like India is visible in the numbers. Consider: India is the leading producer of fruits in the world—at 32 million tonnes (MT) annually, that translates into 8 per cent of global production; in vegetables, it is second in the world (after China), producing 71 MT per year, which gives the country a 15 per cent share of the world market. Now for the bad news: As high as 40 per cent of the fruits and vegetables grown in India (that’s some 40 MT—worth a staggering $13 billion) gets wasted. In fact, India’s waste is huge enough to feed countries like Brazil and Vietnam. The reason for this colossal wastage is the yawning gaps in the cold chain, or even the absence of a cold chain to preserve fruits and vegetables. Such infrastructure is virtually non-existent, cold storage capacities are insufficient, cold storages in close proximity of farms don’t exist, transportation is inefficient, and temperature-controlled transportation extremely rare. 

Oil Prices & Global Investors

Economic Times has articles by two well known fund managers - Ruchir Sharma and U R Bhat - on the topic of oil prices.

From Sharma's article:

    ...Myth 2: Emerging market demand is main determinant of oil prices. Unlike most other commodities, where China is indeed the price-setter, OECD demand is still the most relevant factor when it comes to oil. The US consumes 25% of global oil compared to 9% for China. US oil demand has contracted by 5% so far this year, as demand destruction is in the works.

From Bhat's article:

    ...The status quo where the oil companies are made to bleed — though a bit less than the Rs 650 crore per day they were losing till last week — is clearly a sub-optimal solution for want of decisive policy action. Despite all the talk of excessive subsidies on petroleum products, the government has been indulging in some inelegant financial engineering where taxes, duties and levies on petroleum products are collected from the consumers in cash and a part of this amount is returned to the oil companies in the name of subsidies as illiquid bonds — which are inappropriately referred to as off-balance sheet items.

"Water is a bigger priority than global warming"

            At the recent Top Ten Tech Trends event organized by the US-based Churchill Club, Joe Schoendorf, Partner at Accel Partners and Vinod Khosla, Founder, Khosla Ventures made the following interesting comments on this topic: (Source: Tech Trader Daily)

            Water tech will replace global warming as a global priority. The world is running out of usable water and (this) will kill millions more in our lifetime than global warming. Darfur could go down as the first water war of the 21st century. And with 2 million deaths, might not make the top 10 list. One billion of 6 billion people do not have healthy water. We’re losing close to 1 million people a year under 5 years old due to dirty water. Imagine a 60 year drought in this state. Within 15 years, will be up to 3 billion people with a water problem. 70% of water (is) used for agriculture; 90% (by) developed countries. If nano technology can work, and can figure out desalinization, (it) can prevent many wars over the next 30 years. (We are) missing the Al Gore for water.

Visit http://www.ventureintelligence.in/blog for the full version of these posts.

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