- Comp-U-Learn Tech India is selling its American subsidiary Astus Technologies to an undisclosed buyer. Astus provides IT consulting and staffing services. - L&T is selling its medical equipment division L&T Medical & Systems, based in Mysore, to Skanray Healthcare Private Limited. Skanray manufactures patient monitoring systems and medical devices. - Canaan-backed loyalty program management company Loylty Rewardz raised $1.1 million in venture debt from Silicon Valley Bank to fund its expansion.

1. PE Round Up Report
CP-Artha Financial Advisory Pvt Ltd. 11/19/2012 Edition: 42
PE Sector News M& A Deal – I

Comp-U-Learn Tech to sell
Heavy private equity investments driving restaurant industry
in India American Subsidiary - Astus
Technologies
The hotels & restaurants industry as of today is at the threshold of
entering a dynamic market. That is primarily because the industry
Comp-U-Learn Tech India is set to sell
has witnessed significant growth in recent times thanks to factors
its total holding in Astus
such as rise in demand for a global menu, increase in disposable
Technologies Inc. It had acquired
income, spiraling popularity of eating out as a regular form of
Astus Tech in 2010 for an undisclosed
entertainment and so on
amount
It is this movement in the market that has been attracting leading Astus is a full-service IT consulting
hotel and restaurant chains towards seeking a bigger share of the and staffing company serving
business pie. Another trend in this regard is that the industry is corporate clients nationwide. It
witnessing heavy PE (private equity) investments provides staff augmentation,
contract and contract-to-hire IT
For instance, Azim Premji, founder, Wipro, has agreed to invest $25
professionals
million in JSM Corp, which runs Hard Rock Cafe, Shiros and California
Pizza Kitchen. TVS Capital also has two investments in the restaurant Comp-U-Learn Tech, incorporated in
business - Om Pizza, which runs the pizza chain Papa John's and 1997, is a globally diversified
Indian cookery, which runs the Yellow Chilli chain of restaurants, company providing software
started by celebrity chef Sanjeev Kapoor development, e-governance, e-
learning and IT services to customers
The National Restaurant Association of India (NRAI), states, “It is
across the globe
anticipated that this industry would envision a rapid growth in the
next five years, which would provide employment to about two In the space last month Sonata
crore people” Focusing on the current trend of future growth Software sold its 50% stake in JV - TUI
expectancy in restaurant business, a lot of brands are looking to Infotech to JV partner - TUI Travel
expand while the time is right PLC for Euro 12 Mn

2. At present 70 per cent of this market is dominated by unorganized
players but the trend is moving towards an organized market
M& A Deal - II
intended to grow 20-25 per cent per annum. Quick service

restaurants (QSR) are growing exponentially. Recently, US-
L&T to sell Medical
headquartered QSR Subway opened its 300th outlet in India with a
Equipment Biz to Skanray
plan to open 700 more in the country within the next five years. Healthcare
Yum! Brands Inc., owner of KFC and Taco Bell, will invest $100 million L&T is set to sell its Medical
in the coming 4-5 years to expand in India, resulting in the opening of Equipment business based at Mysore
100 new outlets in the country this year to Skanray Healthcare Private Limited
The medical equipment division,
PE Recent Deal
known as L&T Medical & Systems,
Canaan-backed Loylty Rewardz raises $1.1M venture debt
was put on the block by the
from Silicon Valley Bank
engineering and construction
Loylty Rewardz Management Pvt Ltd, a consumer loyalty and rewards
company as a part of its strategy to
management company, has raised Rs 6 crore ($1.1 million) in venture
exit non-core businesses in 2008
debt funding from Silicon Valley Bank (SVB)
The company, which started medical
Venture debt funding differs from conventional venture funding as it
equipment and systems division in
is a debt form. It is usually raised by firms already backed by VC
1987, makes patient-monitoring
investors and typically involves an equity convertible portion, which
systems such as ECG, pulse oximetry,
kicks-in in the event of an acquisition or the firm going public
invasive BP, Capnography and
The Mumbai-based company was founded by Jayaraj in 2006. It anesthesia gas monitor
offers solutions for consumer loyalty and relationship management
Skanray Healthcare is owned by
needs, whether it’s financial, retail, hospitality, online or travel. It
Skanray technologies Private Limited
incentivizes consumers for their card transactions in the form of
which is engaged in the business of
points, which can be later redeemed via various goods and services
Diagnostics Imaging products and
like mobile recharge, movie tickets, air tickets, merchandise, etc
primary healthcare devices
The company claims to be the largest loyalty program management
Skanray Healthcare, a Mysore-based
firm in the country and it currently manages loyalty programs for
medical equipment manufacturer,
around 170 million debit/credit cardholders in India
specializes in high frequency X-ray
In the loyalty and rewards space, Bangalore-based QwikCilver imaging systems, critical care devices
Solutions Pvt Ltd had received an undisclosed amount of funding from and primary healthcare and
telemedicine- compatible devices of
international quality

3. Helion Ventures and Accel Partners in the 2008. Another player in the space is Payback
Peepul Capital backs herbal cosmetics player Banjara’s
Peepul Capital, a private equity firm based in Chennai and Hyderabad, has invested an undisclosed amount in Vishal
Personal Care Pvt Ltd that manufactures and distributes herbal cosmetics under the brand Banjara’s. Although the
deal size cannot be ascertained, Peepul Capital typically invests in the range of $15 million-$25 million
Hyderabad-based Banjara’s has built a portfolio of more than 80 different products in the skin and hair care
segments. The company’s manufacturing facility is also located in this city. Key competitors of Banjara’s include
Forest Essentials, Himalaya, VLCC, Dabur and Lotus, among others
The FMCG space has attracted significant private equity attention this year, with Temasek picking up 4.9 per cent in
Godrej Consumer Products Ltd for $135 million and GIC Singapore, along with Baring Private Equity Partners India,
investing $100 million in Marico
IFC may invest in Jerry Rao’s Value & Budget Housing
International Finance Corporation is looking to pick up stake in Value & Budget Housing Corporation – the low-cost
housing venture backed by Indian IT poster boy Jerry Rao (founder of MphasiS which was sold to EDS). VBHC,
whose backers include India’s largest mortgage lender HDFC and global private equity major Carlyle
VBHC has projects under various stages of development and construction across Bangalore, Delhi-NCR, Chennai and
Mumbai
Rao and Jayakumar also promoted Home First Finance Company, a housing finance firm that targets customers
buying their first homes. Home First Finance is backed by Bessemer Venture Partners
VBHC’s maiden project Vaibhava is located in Bangalore’s Electronic City suburb and has already sold most of its
units
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Private Equity (PE) Research team
CP-Artha Financial Advisory Pvt Ltd.
No 34 B, East Club Road, Shenoy Nagar, Chennai -600030, India