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India April 30 Weekly Newsletter 2012 This document covers news related to India with a special focus on areas like mergers & acquisitions, private equity & venture capital. Volume 131, April 30th, 2012 For the period April 23, 2012 to April 29, 2012 April 30, 2012 [INDIA WEEKLY NEWSLETTER] Highlights Murugappa Group may buy out UB Group In Mangalore Chemicals…(3) Rossell India Acquires Tea Estate Of Dhunseri Content Pages Petrochem…(4) Publicis Group Acquires Digital Media Agency Mergers & Acquisitions News 3-4 - Indigo Consulting…(4) Mergers & Acquisitions Deals 4-6 Eros International Acquires 76% in B4U Television…(5) Private Equity News 6-9 Intas Pharma To Raise Rs250 cr from PE Private Equity Deals 9-12 Funds For Expansion…(6) Chernin Group Secures $200 mn in Private Venture Capital News 12-12 Equity…(7) Venture Capital Deals 12-13 SIDBI raises Rs670 cr for India Opportunity Fund…(8) Xander’s PE Arm Invests $40 mn in Chennai’s Appaswamy Realty Project…(9) New Silk Route Buys Into Fast Food Chain Adiga’s…(10) Forum Synergies puts $3 mn in Captronic Systems…(11) Accel Partners, IDG Ventures invests $5 mn in Forus Health…(12) Freshdesk Raises $5 m in Second Round Of Funding Led By Tiger Global…(13) Confidential LKP Securities Limited 2 April 30, 2012 [INDIA WEEKLY NEWSLETTER] Mergers & Acquisitions News Man Group To Exit Real Estate Biz, Focus On Steel Pipe Manufacturing Man group is planning to exit its real estate business to focus on its core business of steel pipe manufacturing. The group, which has invested Rs350 cr in real estate via its subsidiary Man Infraprojects, will sell off its projects in 18 to 24 months. Founded in 2006, Man Infraprojects is engaged in real estate management and development. It undertakes hospitality, residential, commercial, information technology park, and SEZ projects. The Man Group promoted by the Mansukhani Family in the 1970s is a diversified group with its flagship company Man Industries (India) Ltd. It was incorporated in 1988; it commenced operations with the manufacturing of aluminium extrusion products at a unit in Pithampur, MP. In 1995, it diversified into manufacturing SAW pipes. In 2005, MIL commissioned an integrated pipe manufacturing and coating unit in Anjar (Gujarat); in 2006, it de-merged its aluminium business into a separate company named Man Aluminium Ltd, which was hived off in 2008-09. Murugappa Group may buy out UB Group In Mangalore Chemicals Murugappa Group owned Coromandel International may acquire UB Group's 30.4% stake in Mangalore Chemicals and Fertilizers Ltd. UB Group's stake is the fertilizer unit is expected to be worth about Rs150 cr. Mangalore Chemicals, a part of UB group, manufactures and sells chemical fertilizers, such as urea, di-ammonium phosphate (DAP), and other complex fertilizers. Its manufacturing facility is located at Panambur, Mangalore (Karnataka). The company has an installed capacity to manufacture 379,500 tonnes per annum (tpa) of urea, and 255,500 tpa of DAP and other complex fertilizers. Vijay Mallya is exploring various options including a stake sale in it's debt ridden airline to raise funds to tide over problems related to Kingfisher Airlines' debt of over Rs7,000 cr. His UB Group is a conglomerate with annual sales of over $4 bn. Coromandel International is active in the business of fertilizers, specialty nutrients, crop protection and retail. The company has a network of more than 10,000 dealers across India for supplying its agri products. The company markets phosphate fertilizers in Southern India and sells 3 mn MT of DAP and complex fertilizers. The retail arm of Coromandel was started in the year 2007 with 2 outlets and in 2008-09 the Company expanded it to over 425 retail centers in rural Andhra Pradesh. Rallis India To Buy Majority Stake In Agri Inputs Firm Rallis India Ltd, a subsidiary of Tata Chemicals, has struck a deal to acquire 51% stake in Zero Waste Agro Organics Pvt Ltd, a Maharashtra-based organic manure and soil conditioners manufacturing company, in a deal aggregating to Rs29 crore ($5.7 million). Zero Waste Ltd is the holding company of Zero Waste's businesses and subsidiaries. The group focuses on organic NPK fertilizer with humified-based manufacturing as its core business. It is also into environmental solutions in sugar milling and alcohol production Confidential LKP Securities Limited 3 April 30, 2012 [INDIA WEEKLY NEWSLETTER] industries, with a range of services in waste utilization, logistics management and waste treatment. Zero Waste has operations throughout Maharashtra and Karnataka, including around half a dozen manufacturing plants, besides multiple distribution centres and channels, to market its products. In addition to its sales across western India, Zero Waste exports to overseas markets including the Middle East, Europe and North Africa. Mergers & Acquisitions Deals Ibibo.com's Parent Co - MIH Group Acquires Tek Travels MIH Group has acquired 51% stake in Gurgoan based Tek Travels Private Limited, which owns B2B travel portal Travel Boutique Online. With this acquisition, MIH Group will get an access to domestic online business travel space, while Tek Travel will be able to expand in international markets. Founded in 2006 by Ankush Nijhawan and Gaurav Bhatnagar, Travel Boutique Online offers a gamut of travel services such as airline, train and hotel reservation and holiday package deals. It also provides charter and choppers and helps with car rental, bus bookings and travel insurance. MIH is a wholly owned subsidiary of media group Naspers. The group's principal businesses are in internet platforms, pay-television and the provision of related technologies. The groups operations are located mainly in South Africa and the rest of Sub-Saharan Africa, China, Latin America, Central and Eastern Europe, Russia and India. In India, MIH has an active presence in the e-commerce space through internet assets such as ibibo Games (social games), Goibibo.com (travel), Tradus.in (shopping marketplace), Payu.in (payments) and Gaadi.com (auto classifieds). Rossell India Acquires Tea Estate Of Dhunseri Petrochem Rossell India Limited has acquired Namsang Tea Estate from Dhunseri Petrochem And Tea Limited for Rs28.29 cr. With this acquisition, the total tea estates owned by Rossell India in Assam stands at 6 with total production capacity of 51 lakh kg of black tea in a year. The Namsang Tea Estate, located in the Dibrugarh district of Assam, produces around 7.30 lakh kilogram of black tea. Dhunseri Group's flagship company Dhunseri Petrochem was formed with the merger of two manufacturing companies of Dhunseri group – Dhunseri Tea and Industries Ltd which was engaged in tea production and IT infrastructure and South Asian Petrochem Ltd which was into manufacturing of PET resin. Rossell India has diverse interests in Tea, Aviation and Hospitality. Rossell Tea Ltd was incorporated in 1994 and currently caters to a large base of overseas buyers. These include Germany, Japan, the US, UAE and Iran. Publicis Group Acquires Digital Media Agency - Indigo Consulting Publicis Group has acquired Mumbai based digital media agency - Indigo Consulting. It will now operate as a unit within the Leo Burnett Group in India and will retain its name. Since it was founded in 2000, Indigo Consulting has developed websites, software solutions and digital marketing programs for clients around the world, including Asian Paints, HDFC Bank, Confidential LKP Securities Limited 4 April 30, 2012 [INDIA WEEKLY NEWSLETTER] HSBC (India, Asia-Pacific and Middle East), Loop Mobile, Tata AIG Insurance and South Australia Tourism. The agency currently employs a team of 160 at its Mumbai headquarters and Delhi office. Euronext Paris-listed communications company Publicis Groupe is the world's third largest communications group, with a presence in 104 countries through three global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi, and numerous agencies including Fallon, 49% owned Bartle Bogle Hegarty, and Kaplan Thaler Group. The group's VivaKi, which develops new services, tools, and next generation digital platforms, operates alongside Starcom MediaVest Group and ZenithOptimedia worldwide media networks. Publicis Groupe offers healthcare communications with Publicis Healthcare Communications Group and with MS&L Group, a PR and events’ networks, also provides expertise in corporate and financial communications, public affairs, branding, and social media marketing. Eros International Acquires 76% in B4U Television Eros International Plc is acquiring 76% stake in B4U Television Network India Private Limited for $53.1 mn. Eros already owns 24% stake in the television network, but has not exercised significant influence over the company. Eros will purchase the 76% it does not currently own. B4U Television is a global television network that provides Indian programming across two digital television channels, B4U Music and B4U Movies. B4U is available in more than 100 countries, including India, the UK, the US, Canada and countries in Middle East and Africa. Eros co-produces, acquires and distributes Indian language films, in multiple formats worldwide. In October 2010, Eros International listed its Indian subsidiary Eros International Media on the BSE & NSE in India. Eros International Media operates on a vertically integrated studio model controlling content as well as distribution & exploitation across multiple formats globally, including cinema, digital, home entertainment and television syndication. Strides Arcolab Acquires Star Drugs' Hosur Manufacturing Plant Strides Arcolab has acquired a Sterile Formulations facility from Star Drugs & Research Labs Ltd for Rs125 cr. This acquisition, funded through cash in hand and internal accruals, is a part of Strides' strategy to build and expand it's core injectible business. The acquisition was made through Agila Specialties, a wholly owned subsidiary of Strides. The facility manufactures a wide range of injectible formats. The liquid vials unit with a capacity of 97mn units has been approved by the US FDA. It is located at Hosur, Tamil Nadu and is in close proximity to the Strides new Sterile complex.