E-marketing solutions company Ybrant Technologies is in talks with seven US companies for acquisitions to expand its offerings in the e-marketing space. It had recently acquired MediosOne, an Internet advertising network focused on a global consumer base. The acquisition of MediosOne gave Ybrant the required push into South America, Europe and it will also help Ybrant enter the Indian e-marketing space.
Suresh Reddy, co-founder and chairman of Ybrant Technologies says that he wants to acquire at least one company in each of the five different e-marketing tools.
Ybrant’s development centre at Hyderabad has 200 people working on various development tools and has about 15 different platforms catering to Internet and other marketing requirements. With almost 200 clients in its kitty, primarily in the US, Ybrant has lined up exciting growth plans.
Read the Business Standard article for more details.
Wednesday, January 3, 2007
Setco acquires Haldex manufacturing facility in the US for around $5 mn
Clutch manufacturer Setco Automotive has acquired the US manufacturing facility of Haldex Brake Products Corporation for $4.9 mn (around Rs. 22-23 crores). The company has a presence in 14 countries and intends to set up operations in 30 countries in three years. Last year, around the same time, Setco had acquired the Lipe Clutch division of the Dana Corporation for Rs. 16 crores. The acquisition would be funded, 13 crores in part by internal accruals, and Rs. 9 crores by way of debt, provided by the New York branch of Bank of Baroda.
Setco has acquired the company through its overseas subsidiary Setco Automotive NA in the UK.
The company, formerly known as Gujarat Setco Clutch, has posted a net profit of Rs. 5 crores on a total income of Rs. 67 crores last year. Harish Sheth, currently the MD of the company, and his family are the promoters of the company and hold 65% stake. New Vernon Private Equity holds 14% and the rest is widely held by the public. Setco has been a supplier of clutches to all major Indian truck companies including Tata Motors, Eicher and Ashok Leyland.
Read the articles from Business Standard and The Economic Times.
Setco has acquired the company through its overseas subsidiary Setco Automotive NA in the UK.
The company, formerly known as Gujarat Setco Clutch, has posted a net profit of Rs. 5 crores on a total income of Rs. 67 crores last year. Harish Sheth, currently the MD of the company, and his family are the promoters of the company and hold 65% stake. New Vernon Private Equity holds 14% and the rest is widely held by the public. Setco has been a supplier of clutches to all major Indian truck companies including Tata Motors, Eicher and Ashok Leyland.
Read the articles from Business Standard and The Economic Times.
Orra interested in a strategic funding in jewellery brand Tanishq
Leading jewellery brand Orra, a part of the $1.7-billion jewellery group Rosy Blue, keen on a strategic investment in India and is keen on Tanishq, Titan Industries’ jewellery business. Tanishq is India’s fastest-growing jewellery brand and posted revenues of around Rs. 800 crores in 2005-06, and is aiming at Rs. 1000 crore plus business in the current financial year. Tanishq has also been posting profits since 2003 after nearly a decade of losses, and has sustained 40 per cent year-on-year growth this year, despite volatile gold prices.
Orra, which has been exporting diamond jewellery from India for over a decade, is keen to expand the retail end of its Rs. 1000-crore business, the bulk of which comes from exports.
The diamond jewellery market is only around 10-15% of the total jewellery retail business which is worth Rs. 60,000 crores, but it is growing at 20% against a 5% growth in gold jewellery.
Read the article in Business Standard.
Orra, which has been exporting diamond jewellery from India for over a decade, is keen to expand the retail end of its Rs. 1000-crore business, the bulk of which comes from exports.
The diamond jewellery market is only around 10-15% of the total jewellery retail business which is worth Rs. 60,000 crores, but it is growing at 20% against a 5% growth in gold jewellery.
Read the article in Business Standard.
Mahansaria, Warburg to buy Israel’s Alliance Tyre
Brothers Yogeshkumar and Ashokkumar Mahansaria, one of the promoters of Balkrishna Industries Limited (BIL), are quitting the tyre company owing to family differences. They have tied up with private equity firm Warburg Pincus to acquire Israeli tyre company Alliance Tyre for $45 mn. The transaction is expected to be completed before June 2007.
Alliance started negotiations with the two buyers, which will include an open offer for the public’s shares. The Mahansarias will float a new venture this year and the Alliance acquisition is a part of this move.
The management of Balkrishna Industries are not involved in the Alliance deal.
Read the article in Daily News and Analysis.
Alliance started negotiations with the two buyers, which will include an open offer for the public’s shares. The Mahansarias will float a new venture this year and the Alliance acquisition is a part of this move.
The management of Balkrishna Industries are not involved in the Alliance deal.
Read the article in Daily News and Analysis.
JK Cement may buy a 2 mt-plant
JK Cement Limited may acquire a 2 mt-plant in the coming year and may even consider diluting a substantial portion of equity for funding the acquisition. JK Cement has an annual capacity of 4 mt for grey cement and 0.4 mt for white cement. It is amongst the top four cement players in northern region along with ACC, Grasim and Gujarat Ambuja, and also the second largest player in white cement market after Grasim. Being a prominent player in the North, J K Cement’s primary markets are Haryana (18.2% market share), Delhi (13.4%), Rajasthan (11%) and Punjab (4%). Promoters’ holding in the company is currently at 62%, while financial institutions and the public hold the rest. In the next two years, assuming cement prices do not fall, internal accruals and cash in hand could give it about Rs 550 crore.
The Indian cement market is the second-largest in the world with a domestic annual consumption of 135 mt and an installed capacity of 160 mt and the overall cement demand in India is expected to grow at a rate of 9% for the next five years.
Read the complete article in Daily News and Analysis.
The Indian cement market is the second-largest in the world with a domestic annual consumption of 135 mt and an installed capacity of 160 mt and the overall cement demand in India is expected to grow at a rate of 9% for the next five years.
Read the complete article in Daily News and Analysis.
IFCI to get a strategic partner
The Industrial Finance Corporation of India (IFCI) may get a strategic partner if the Indian Government has its way. The distressed organization has been forced to stop its lending activity, having accumulated losses of over Rs. 4000 crores. This has been a result of a combination of aggressive lending in the early part of the last decade, which later resulted in a good deal of the portfolio turning into bad loans, and higher cost of borrowings.
According to senior government officials, a proposal is being considered to bring on board a strategic investor which could even be a foreign or a local bank. The track record of the investor, including its lending business would be a key deciding factor in divesting the stake. The government has already been sounded out by a couple of top foreign banks operating in India, as well as an overseas firm specializing in recovering distressed assets. However, it is a given that such asset recovery firms or private equity funds would not be encouraged to partner the institution.
IFCI still has control over some good quality assets besides the fact that it has several subsidiaries or associates in various business segments. These include the credit rating agency-CARE, Tourism Finance Corporation of India (TFCI), an asset reconstruction firm —ACE, a factoring firm—Foremost Factors, IFC Venture Capitals, IFCI Financial Services besides equity holding in SHCIL, DFHI, NSE, OTCEI and LIC Housing Finance.
In the last quarter, IFCI reported profit after tax of Rs. 115.83 crores against a total income of Rs. 325.47 crores. Recovery of bad loans (which have shrunk to Rs. 667 crores in 05-06) has improved and the proceeds are now being parked in deposits of top rated firms. IFCI has also started lending in a limited way to finance firms which have a AAA rating.
Read the article from The Economic Times.
According to senior government officials, a proposal is being considered to bring on board a strategic investor which could even be a foreign or a local bank. The track record of the investor, including its lending business would be a key deciding factor in divesting the stake. The government has already been sounded out by a couple of top foreign banks operating in India, as well as an overseas firm specializing in recovering distressed assets. However, it is a given that such asset recovery firms or private equity funds would not be encouraged to partner the institution.
IFCI still has control over some good quality assets besides the fact that it has several subsidiaries or associates in various business segments. These include the credit rating agency-CARE, Tourism Finance Corporation of India (TFCI), an asset reconstruction firm —ACE, a factoring firm—Foremost Factors, IFC Venture Capitals, IFCI Financial Services besides equity holding in SHCIL, DFHI, NSE, OTCEI and LIC Housing Finance.
In the last quarter, IFCI reported profit after tax of Rs. 115.83 crores against a total income of Rs. 325.47 crores. Recovery of bad loans (which have shrunk to Rs. 667 crores in 05-06) has improved and the proceeds are now being parked in deposits of top rated firms. IFCI has also started lending in a limited way to finance firms which have a AAA rating.
Read the article from The Economic Times.
Endurance Group buys German auto ancillary company
Pune-based auto components company Endurance has acquired Amann Druckguss GmbH and Co KG, a German aluminium die casting manufacturer, in the range of Rs. 180-200 crores.
Amann Druckguss supplies to premium auto-makers such as DaimlerChrysler, Porsche, Audi and Behr. Endurance will supply engine, drive train and chassis components to them. Endurance has acquired Amann Druckguss from private equity firm Granville Baird Capital Partner Advisers.
This is the Pune-based company’s third overseas acquisition in the past one year. It acquired a 51% controlling stake in Nova Renopress of Bologna, which brought in customers like Honda, Bosch and Siemens, and a 40% stake in Paioli Meccanica SpA.
In August 2006, Standard Chartered Private Equity invested Rs. 150 crores in Endurance Technologies. The group is already scouting for another acquisition in the European market by March-end 2007, especially in the Italian, German and French for the acquisition of a Rs. 175-235 crore company.
Read The Economic Times article.
Amann Druckguss supplies to premium auto-makers such as DaimlerChrysler, Porsche, Audi and Behr. Endurance will supply engine, drive train and chassis components to them. Endurance has acquired Amann Druckguss from private equity firm Granville Baird Capital Partner Advisers.
This is the Pune-based company’s third overseas acquisition in the past one year. It acquired a 51% controlling stake in Nova Renopress of Bologna, which brought in customers like Honda, Bosch and Siemens, and a 40% stake in Paioli Meccanica SpA.
In August 2006, Standard Chartered Private Equity invested Rs. 150 crores in Endurance Technologies. The group is already scouting for another acquisition in the European market by March-end 2007, especially in the Italian, German and French for the acquisition of a Rs. 175-235 crore company.
Read The Economic Times article.
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