3. PE Investments – Indian Market vs. Other emerging Markets The bullish industry story is also reflected in the heightened interest shown by Global Private Equity majors. Source : AVCJ, * Restated, Currency = USD millions Source: Asian Venture Capital Journal-Asia e-letters 125% 76836.93 61247.25 $ Total (Includes other Asia Pac Countries) 10% 376.61 3879.25 $ Thailand 123% 4932.04 4000.88 $ Taiwan 258% 5347.87 2076.62 $ Singapore 92% 2733.05 2955.52 $ New Zealand 236% 4458.74 1886.13 $ Korea 128% 14708.03 11505.28 $ Japan 72% 517.09 713.95 $ Indonesia 246% 18278.84 7416.46 $ India 106% 10873.67 10305.85 $ China 89% 14610.99 16507.32 $ Australia %Change 2007 2006* $ 13 376.61 $ Thailand 8 517.09 $ Indonesia 57 683.50 $ Vietnam 54 2733.05 $ New Zealand 45 2866.32 $ Hong Kong 38 4932.04 $ Taiwan 43 5347.87 $ Singapore 26 5442.74 $ Malaysia 438 10873.67 $ China 148 14610.99 $ Australia 366 14708.03 $ Japan 352 18278.84 $ India No. of Deals Amt invested (USD Million) Investment Breakdown Country-wise — 2007
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6. Private Equity Funds Pouring in India Funds Launched or Announced in H1 of 2008 Source: Factiva Infrastructure USD 1.20 billion 3i Capital Real Estate USD 800 million Indiareit Fund Advisors Infrastructure USD 1 billion Vision Global India Fund Infrastructure USD 1 billion Clear Investments & PFC Infrastructure USD 1 billion Kotak Investment Advisor Real Estate USD 1.50 billion Red Fort Capital Power & Infrastructure USD 12 billion Cleartrade Target Sector(s) Fund Size PE Firm
7. Private Equity Funds Pouring in India Funds Launched or Announced in 2007 Source: Factiva Real Estate USD 1 billion IL&FS Investment Managers (IIML) Generic USD 400–500 million Baring Private Equity Partners Real Estate USD 500 million Fire Capital Growth Capital Venture Capital USD 500 million USD 300 million Sequoia Capital India Generic USD 1 billion Actis Advisors Infrastructure USD 1 billion 3i Capital Infrastructure, Technology, Pharmaceuticals, and Financial services USD 1.25 billion Chrys Capital Infrastructure USD 2 billion ICICI Bank Infrastructure USD 5 billion Citigroup and Blackstone Target Sector(s) Fund Size PE Firm
8. Private Equity Funds Pouring in India (Cont’d.) Source: Factiva Funds Launched or Announced in 2007 Asia Fund with special focus on India USD 1.5 billion Parag Saxena (Leading Venture Capitalist) Generic USD 1 billion Sabre Capital Infrastructure, Special Situations and Generic USD 1 billion (consisting of five funds) Baer Capital Indian Securities USD 1 billion Ripplewood Holdings Manufacturing and Logistics USD 215 million Peepul Capital (Formerly iLabs Management) Generic USD 200 million Dawnay Day Generic USD 189 million NEA-Indo US Ventures Life Sciences and Information Technology (IT) USD 150 million Ventureast Funds Venture Capital USD 100 million Nexus India Target Sector(s) Fund Size PE Firm
9. PE Funds Launched by Other Institutions *Wednesday, 28 February 2007 (INR 1 = USD 0.02263) Funds Launched or Announced in 2007 Source: Factiva; Oanda Website This fund raising Indicates heightened PE activity in India Life Science USD 200 million Burill & Company Infrastructure and Real Estate USD 8 billion (3 funds) DLF Infrastructure, Real Estate, Special Situations USD 1.5 billion (4 funds) Yes Bank Infrastructure USD 1 billion Macquarie Bank and IFC Power USD 1 billion Power Finance Corporation Real Estate USD 600 million HSBC Bank Retail USD 500–600 million Louis Vuitton Healthcare USD 200 million Piramal Enterprises Small- and medium-sized companies INR 1 billion (USD 22.6 million*) The Small Industries Development Bank of India (SIDBI) Target Sector(s) Fund Size Institution
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17. Buyout Deals in India Source : Venture Intelligence ( USD mn ) 2005 & before N/A ITES Warburg Pincus WNS N/A Auto Actis Punjab Tractors 20 Fast Foods Navis Capital Nirula’s 33 Surface Transport Reliance Capital Patel Roadways 37 Packaging Navis Capital Oriental Containers 37 Textiles WL Ross OCM India 44 Textiles Avenue Capital GPI Textiles 65 Supermarkets Actis Nilgiri Dairy Farm 765 IT Services KKR Flextronics Software Systems ( USD mn ) 2006 63 IT&ITES Infinity Capital Sify 127 Travel Dubai Investment Group Thomas Cook India N/A Media ICICI Ventures Infomedia 60 Manufacturing ICICI Ventures Associated Cement Companies – Refractories Division 23 Engg. & Construction ICICI Ventures VA Tech WABAG India Deal Value Industry PE / VC FIRM Company
18. Buyout Deals in India (Cont’d.) Source : Venture Intelligence, AVCJ 23 Shipyard ICICI Ventures Tebma Shipyard 81.4 Medical One Equity Partners LLC. Apollo Hospitals Enterprise Ltd.-Western Hospital Corp. 41 Financial services Baring Private Equity Partners India Pvt. Ltd. JRG Securities Ltd. 57 Telecom Infrastructure New Silk Route Aster Infrastructure 118.2 Financial Services Citigroup Sharekhan 165 Textile & Garments Blackstone Gokaldas Exports 200 ITES Blackstone Intelenet Global Services 24 Aircraft Maintenance Global Technology Investments Airworks India 24 Auto Components Actis Phoenix Lamps ( USD mn ) 2007 Deal Value Industry PE / VC FIRM Company
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20. Source : AVCJ No. of Deals – USD 25 & USD 50 million plus investments No. Of Deals with Investments Above $50 Mn No. of Deals with Investments Above $ 25 Mn 2007 2006 2007 2006 PE Firm 2 - 3 4 Warburg 3 - 5 - Temasek - - 1 2 Spinnaker 1 - 2 2 SCB PE 2 2 3 2 Morgan Stanley 2 2 2 - JP Morgan 3 - 7 - IL&FS 2 2 7 3 ICICI Ventures 3 - 3 2 General Atlantic 9 - 15 - Citigroup 1 2 2 - ChrysCapital 6 - 8 - Blackstone - - 2 - Baring Private Equity 2 - 3 - Avenue Capital Group 4 - 4 4 3i
21. No. of Deals – USD 100 million plus investments Source : AVCJ No. of Deals with Investments Above $100 Mn 2007 2006 PE Firm 2 1 Temasek - 1 Providence Partners 2 - Morgan Stanley 2 - Lehman - 1 KKR - 1 JP Morgan 4 - Goldman Sachs - 1 Farallon 5 - Citigroup 1 - Carlyle 5 - Blackstone 2 - Avenue Capital Group 1 - Apax Partners
22. H1-2008 – Some USD 100 million plus investments Source : Venture Intelligence, AVCJ 209 (25.4%) Textiles and clothing GIC Special Investments Pte Ltd. Reid & Taylor (India) Ltd. 200 (20% stake)) Consumer Products/Services D.E. Shaw India Advisory Services Pvt. Ltd.; Deutsche Bank; JPMorgan Private Capital Asia; Sequoia Capital India Amalgamated Bean Coffee Trading Co., Ltd. (Coffee Day) 180 (15.6% stake) Infrastructure IDFC Private Equity Co. Ltd. Ashoka Buildcon Ltd. 450 Financial Services Symphony Capital DLF Assets Pvt Ltd. 640 (20% stake) Telecommunications Providence Equity Partners Aditya Birla Telecom Ltd. 250 (2.5% stake) Telecommunications KKR Asia Ltd. Bharti Infratel Ltd. 404 (37.5% stake) Utilities Farallon Capital Management, LLC.; LNM Internet Ventures Sophia Power Co. Ltd. 250 Financial Services D.E. Shaw India Advisory Services Pvt. Ltd. Mack Star Marketing Pvt Ltd. 300 Infrastructure Morgan Stanley Private Equity Asia Limited TowerVision India Pvt Ltd. Deal Value ( USD million ) Industry PE / VC FIRM Company
23. 2007 – Some USD 100 million plus investments Source : Venture Intelligence, AVCJ 815 Construction ICICI Venture Funds Management Company Ltd. Jaypee Infratech 2,013 (5% stake) Telecommunications Temasek Holdings Advisors India Pvt. Ltd. Bharti Airtel Ltd. 275 (26% stake) Media Blackstone Advisors India Pvt. Ltd. Ushodaya Enterprises Ltd. 346 (5% stake) Telecommunications DA Capital; Fortress Capital; Galleon Partners; GLG Partners LP; HSBC Principal Investments; New Silk Route Advisors Ltd.; Soros Fund Management LLC Reliance Telecom Infrastructure Ltd. 500 (26% stake) Infrastructure Avenue Capital SKIL Infrastructure 598 (2.9%) Financial services Dubai International Capital ICICI Bank Ltd. 760 (7.1% stake) Banking and Financial Services Carlyle Group and Citigroup Housing Development Finance Corporation (HDFC) 1.000 (10% stake) Telecommunications Temasek Holdings Advisor, CVC International - India, Goldman Sachs Asia Ltd. Bharti Infratel Ltd. 188 Financial Services Khazanah Nasional IDFC 525 (21%) Financial Services General Atlantic Partners, SAIF Partners, Goldman Sachs, Morgan Stanley, Citigroup, Actis National Stock Exchange (NSE) Deal Value ( USD million ) Industry PE / VC FIRM Company
24. 2006 – Some USD 75 million plus investments Source : Venture Intelligence, AVCJ 65.2 (for 51%) Supermarkets Actis Nilgiri Dairy Farm 80 Banking ChrysCapital UTI Bank 82 Auto Components New Vernon , DE Shaw , IREO , Oasis Capital, Ritchie Capital , Kingdon Capital , Minivet Capital Amtek India 91 Banking Bank Muscat , ICICI Ventures Centurion Bank 99.3 (for 13.3%) Infrastructure Finance Karrick , Farallon Capital Indiabulls Infrastructure 100 BPO Olympus Capital Quatrro BPO Solutions 143 Financial Services Farallon Capital Management Indiabulls Financial Services 124 (for 21.6%) Infrastructure JP Morgan Chase, IDFC PE-led consortium L&T-Infrastructure Development Projects 360 (for 9.9%) Telecom Services Temasek Tata Teleservices 765 (for 85%) IT Services KKR, Sequoia Flextronics Software Systems 966 (for 34.5 %) Mobile Services Providence Equity, Citigroup, ChrysCapital, NSS Ventures, Sequoia Capital, Spinnaker, Macquarie Bank, 2i Capital Idea Cellular Deal Value ( USD million ) Industry PE / VC FIRM Company
25. Large PE Exits – 2006 These big ticket deals clearly indicate a trend in the deal valuations in India… Source : Venture Intelligence, AVCJ 250 IT & ITES RR Donnelley Francisco Partners Office Tiger 185 IT & ITES Jabil Circuit Westbridge, Baring PE , NEA, Golden Gate Capital, Charterhouse Group Intnl, Alta Partners Celetronix Intrenational 115 IT & ITES Infosys Technologies Citigroup Progeon 380 ( for 52% ) IT & ITES EDS Baring PE Mphasis 736 ( for 71.5 % ) Healthcare & Lifesciences Mylan Laboratories Temasek Holdings, Newbridge Capital, Spandana Foundation Matrix laboratories Deal Value (USD million) Industry Acquirer PE / VC FIRM Company
26. Large PE Exits – 2007 These big ticket deals clearly indicate a trend in the deal valuations in India… Source : Venture Intelligence, AVCJ 104.6 (for 20%) Transportation/ Distribution Kingfisher Radio Ltd. (India); United Breweries Group (UB Group) (India) Deccan Aviation Ltd. (India); ICICI Venture Funds Management Company Ltd. (India) Deccan Aviation Ltd. 73 (for 20%) Services - Non-Financial Metavante Corporation, Galleon Partners ICICI Venture Funds Management Company Ltd. Firstsource Solutions Ltd. 136 (for 99%) Manufacturing - Heavy Calderys (France) ICICI Venture Funds Management Company Ltd. (India) ACE Refractories Ltd 256.4 (for 25%) Manufacturing - Heavy Undisclosed Investor(s) (India) Warburg Pincus India Pvt. Ltd. Sintex Industries Ltd. 53.9 (for 51%) Consumer products/services The Hershey Company IL&FS Investment Managers Ltd. Godrej Beverages and Foods Ltd. 48.5 (for 5%) Financial services Khazanah Nasional Bhd. ChrysCapital Management Co., Citigroup Venture Capital International YES Bank Ltd. 100 Consumer products/services Orkla ASA JP Morgan Partners Advisers Pte Ltd., MTR Foods Ltd., Aquarius Investment Advisors (India) Pvt. Ltd. MTR Foods Ltd. 215 ( for 43.5 % ) Transportation/ Distribution Mahindra & Mahindra Ltd. Actis Capital LLP. Punjab Tractors Ltd. Deal Value (USD million) Industry Acquirer PE / VC FIRM Company
27. PE Exits – Trends 1 2 3 Source : Venture Intelligence, AVCJ PE backed companies raised about USD 802 million via IPO’s in H1 2008 as compared to USD 1.2 billion for the year 2007 Total value of M&A transactions providing exits to PE investors during H1 2008 was approx USD 937 million as compared to USD 1.7 billion during the year 2007 PE and VC firms obtained exit routes in 19 companies including 6 through IPOs during H1 2008 as compared to exits in 55 companies during 2007 PE funds obtained exit in 37 companies during 2006 including 19 IPO’s
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