India Weekly Newsletter]

India October 24 Weekly Newsletter 2011 This document covers news related to India with a special focus on areas like mergers & acquisitions, private equity & venture capital. Volume 107, October 24th, 2011 For the period October 17, 2011 to October 23, 2011 October 24, 2011 [INDIA WEEKLY NEWSLETTER] Highlights Capital18 Puts Glitz Cinemas On The Block…(3) SkillSoft Acquires NIIT's US Subsidiary - ElementK For $110 mn…(4) Content Pages Jyothy Labs Acquires 12.05% Stake In Henkel Mergers & Acquisitions News 3-4 India Via Open Offer…(5) Mergers & Acquisitions Deals 4-9 BCCL Acquires BBC's Stake In Worldwide Media JV…(6) Private Equity News 9-11 Falcon Tyres Acquires Chamundi Plasto Sacks…(6) Private Equity Deals 11-13 Suryachakra Power In 50:50 JV With US Venture Capital News 13-13 Firms For Renewable Energy…(7) Venture Capital Deals 13-14 GVK Buys 14% More In Bangalore Int’l Airport; Ups Stake To 43%…(7) Systemair Acquires International Airconditioning For $9.56 mn…(8) International Tractors To Raise Rs450 cr For Acquisition…(9) Triangle Real Estate Fund To Raise $200 mn…(10) CDC Group Invests $50 mn In Pragati India Fund…(11) Fire Capital Announces JV With OmShakthy For Township Projects…(12) Naaptol Raises $25 mn From NEA, Canaan Partners & Silicon Valley Bank…(13) Confidential LKP Securities Limited 2 October 24, 2011 [INDIA WEEKLY NEWSLETTER] Mergers & Acquisitions News Glencore May Acquire 24% Stake In Cronimet Alloys For Rs 50-75 cr Glencore International is talking to Dubai based Cronimet Mercon for a 24% stake in Cronimet Alloys in a deal worth Rs50-75 cr. Currently, the market value of the 24% stake is Rs43 cr. Cronimet Alloys India Limited is a ferro chrome manufacturing company established in March 2006 by GMR Industries Limited by spinning of it's metallurgical division. The company is primarily in the operations of manufacturing of high carbon ferro-chrome which is basically used by the stainless steel industry. The company's manufacturing facilities are located at in Andhra Pradesh and it manufactures two standard grades of ferro chrome viz high silicon and low silicon. Promoters Of VLCC Healthcare Talking To Buyout Firms For Stake Sale According to a report on ET, the promoters of VLCC Healthcare are talking to buy-out firms including Apax, Bain and TPG Capital to sell a majority stake in the wellness chain. VLCC Healthcare was founded twenty years ago by Mukesh Luthra and Vandana Luthra. VLCC operates slimming centers and spas, it also retails personal care products through it's wellness chain. The company has a network of 150 centers in Indian, Nepal and some countries in the GCC region. VLCC also runs a training institute which provides training in the areas of nutrition and beauty care for students seeking professional skills in these domains. Vandana and Mukesh Luthra recently bought back 13.65% stake in the company from an investment arm of CLSA for an undisclosed amount. CLSA had invested $10 mn in VLCC in 2004. Everstone Capital holds about 15% stake in the company. It had invested $11.30 mn in the company through CCDs. Capital18 Puts Glitz Cinemas On The Block Capital18 - the private equity arm of Network18 has put it's multiplex business - Glitz Cinemas on the block and is seeking a valuation of Rs3 cr per screen or around Rs80-90 cr. Glitz Cinemas is promoted by Stargaze Entertainment. It was founded by Capital18 and Sumant Bhargava in July2008. It has a strong presence in Dehradun, Ranchi, Bilaspur, Raipur, Ajmer, Kurushetra and Delhi offering over 4,000 seats per show. It has three product offerings - Glitz Lounge, Glitz Max and Glitz 3D. The valuation which the promoters are asking for is much higher than INOX - Fame India deal. Last year, Inox Leisure acquired 43.28% in Fame for Rs66.48 cr in cash, translating to a valuation of Rs1.6 cr per screen. Confidential LKP Securities Limited 3 October 24, 2011 [INDIA WEEKLY NEWSLETTER] Denmark Based FLSmidth Acquires Transweigh India Denmark based FLSmidth has acquired Transweigh India Limited for an undisclosed sum. Transweigh India was established in 1987 by Habib Futehally as a JV with Pfister, Germany. Pfister's stake was later acquired by FLSmidth. With head office and production facilities located in Mumbai, India, the company today employs around 300 people. It is a supplier of gravimetric feeding equipment, mainly to the steel, iron and cement industries. The company also markets and sells FLSmidth Pfister's leading fuel feeder product range to the growing Indian market. Transweigh also sells a large number of proprietary products such as belt weigh feeders, apron weigh feeders, apron feeders, loss in weight feeders, solid flow meters, bin weighing equipment and feeding electronics. The products are sold as standalone products but most often together with auxiliary equipment forming a complete feeding system with integrated material handling components. FLSmidth & Co is a engineering company based in Copenhagen, Denmark. Employing about 11,300 people worldwide, it provides the global cement and mineral industries with plants, machinery, services and know-how. This is FLSmidth second acquisition in India. In 2009, it acquired EEL India Limited. EEL India Limited's product range includes rotary packers for bag packing and bag loading systems, silo feeding and extraction systems, bulk loading systems as well as rotary & stationary big bag filling systems for the cement and related industries. Mergers & Acquisitions Deals SkillSoft Acquires NIIT's US Subsidiary - ElementK For $110 mn NIIT has sold it's US based subsidiary - ElementK Corporation to SkillSoft Corporation for $110 mn in an all cash deal. NIIT has also signed a long-term strategic and licensing agreement with SkillSoft to become a product and content developer for the Irish firm. The funds will be used to strengthen it's managed training services business, cloud campus, school venture - NGuru and university programme - YuvaJyoti. Part of the funds will also be used to retire debt. NIIT had acquired ElementK Corporation for $35 mn in 2008. NIIT Limited is into IT education and corporate training. It has training centers in over 40 countries and provides both classroom and on-line learning solution. FDC Limited Acquires Anand Synthochem FDC Limited has acquired Mumbai based Anand Synthochem Limited for Rs6.43 cr. Anand Synthochem does not have any substantial operations apart from 81,555 sq. ft land in Dombivali. FDC Limited was incorporated in 1940, for marketing vitamins and a range of prescription formulations. FDC presently operates in a number of high-growth therapeutic segments such as anti-infectives, dermatologicals, respiratory and haematinics and is the leader Confidential LKP Securities Limited 4 October 24, 2011 [INDIA WEEKLY NEWSLETTER] in oral rehydration solutions and ophthalmics. Some of its key brands are Electral, Zifi, Pyrimon, Zoxan Zocon and Mycoderm.FDC exports to over 50 countries, including the US, the UK, South Africa, New Zealand and Japan. The company has plants in Roha, Waluj and Sinnar in Maharashtra, Verna in Goa, and Baddi in MP. Netcore Acquires Mobile Marketing Firm – Ravience Netcore Solutions Pvt Ltd has acquired Mumbai based mobile marketing services provider - Ravience for an undisclosed sum. Ravience was incorporated in 2008 by former Netcore executive - Veer Bothra. Post deal, Veer will join Netcore as the Chief Strategy Officer. Ravience has a multi modal response management suite - Responage, which is used for brand building. It also allows rapid creation of mobile websites which are compatible across handsets, visitor analytics and validation of responses. The platform integrates various stages of digital campaigns - starting from media, visitor management, response management and finally lead management, thus filtering higher quality leads and identifying their sources. NetCore provides mobile messaging solutions and enterprise email services to over 2,000 companies in India. This is Netcore's second acquisition in 2 years. Last year, it acquired Greynium Information Technologies Pvt Ltd. Greynium owns Indian language Internet portal OneIndia.in, and online Indian classifieds portal Click.in. Jyothy Labs Acquires 12.05% Stake In Henkel India Via Open Offer Jyothy Labs has acquired 12.05% stake in Henkel India Ltd through an open offer. With this, Jyothy's shareholding in Henkel India has gone upto 83.65%. Jyothy had acquired 50.97% stake in Henkel India from Henkel AG & Co for Rs 118 cr. Before that, it had 14.9% stake in Henkel for Rs. 60.73 cr in an all cash deal. It bought 1,73,51,686 shares of Henkel at Rs.35 each from Tamil Nadu Petro Products Ltd. Henkel India was incorporated in 1987 as a JV between Henkel AG and Tamilnadu Petroproducts Ltd to manufacture detergents. Company has presence in fabricare, dish wash, household cleaning and personal care categories. Henkel was planning for divestment because of lackluster performance and its inability to capture market share-despite being in the Indian market since 1987. Henkel India and Jyothy Laboratories are both present in the home care, fabric care, dish washing soap, personal care and household cleaning segments. The move will help Jyothy increase its market share in the fast growing domestic detergents market. Jyothy Labs is engaged in manufacturing and marketing of fabric whiteners, soaps, detergents, mosquito coils, incense sticks and personal care products. It is known for its flagship brand 'Ujala'. The company has 28 manufacturing facilities in 16 locations across India. Company has also forayed into the organized laundry business through its subsidiary - Jyothy Fabricare Services Ltd. Confidential LKP Securities Limited 5 October 24, 2011 [INDIA WEEKLY NEWSLETTER] BCCL Acquires BBC's Stake In Worldwide Media JV Bennett Coleman & Co has bought out BBC Worldwide's 50% stake in Worldwide Media Private Limited for $9.45 mn.

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