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US India investments and transactions flow monitor september 2010


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US India investments and transactions flow monitor september 2010

  1. 1. September 2010 IMaCS Virtus Global Partners Newsletter Transaction & Investment Flow between US and India Recent Reports and News August turned out to be one of the most active months for US- India deal-making with nine India-bound transactions from the US Recent Reports and five US-bound transactions from India. The key drivers this month were large US funds investing in India's power and healthcare assets, US companies acquiring Indian automotive and Indian Food Processing homebuilding product companies, and Indian acquirers acquiring Industry US based shale gas assets. In another exciting August development, MakeMyTrip, the largest online travel booking Indian Medical Equipments company in India, led one of the most successful IPO's on Nasdaq Industry this year. Industry Trends & News Blackstone completed its largest investment so far in India with a $300 million investment in New Delhi based Moser Baer Projects. Transgene This represents a new trend of large investments in power sector BIotek,Marillion,Network as India builds significant capacity in power generation, 18,A&E transmission and distribution. Blackstone also announced plans to invest $3 billion in India in the next five years, including $1 billion in power companies. Another large fund TA Associates purchased Reliance,Oil India 16% stake in one of the India's largest diagnostics and pathology Ltd,Solar Semi,Neah services firm Dr Lal PathLabs for $35 million. Other private equity Power,HMEL,IBM investments from US into India included International Finance Corporation's purchase of 20% stake in Ananya Finance, a Tata Pepsi JV,Godrej wholesale microfinance institution and Canaan Partners purchase of Harshey,Coca Cola 25% stake in online shopping web portal About IVG An interesting new trend is acquisition of Indian companies by US Partners companies. Masonite Inc. announced its third strategic acquisition this year in India with Standard Doors, a leading door manufacturer. In July, the company had announced acquisition of IMaCS Virtus Global two other leading door manufacturers in India - Feroke Boards Partners (IVG Partners), a Limited, and Mahsim High Tech Fab Limited. Standex's purchase of joint venture between Melco Engraving, a leading producer of mold textures, engraved ICRA Management rolls and plates was consummated with a view to India's growing Consulting Services and automotive market. Virtus Global Partners, offers transaction advisory to North American and With respect to Indian acquisition of US companies, key Indian companies seeking transactions were Reliance Marcellus II joint venture with Carrizo cross border growth and Oil & Gas for shale gas assets, YBrant Digital acquisition of Lycos investment opportunities. for $36 million, and Transgene Biotek's acquisition of Marillion For more information, Pharmaceuticals. In addition, Crompton Greaves is reported to please have bid US$400mn for the transformer division of Emerson Electric and Oil India Ltd in partnership with GAIL India is reportedly seeking acquisitions of US shale gas assets. Welcome to the September edition of our US-India newsletter, which focuses on key developments and issues affecting foreign direct investments (FDI) and foreign institutional investments (FII) between the US and India. For more information, please
  2. 2. Recent Reports Indian Food Processing Industry - Opportunities for US Companies India with a population of 1.16 billion provides a large and growing market for food products. India is amongst the three largest producers of agricultural commodities in the world. In addition, food is the single largest component of private consumption expenditure, accounting for about 37.8% of the total spending. Growing at about 14%, the processed food industry has started attracting increased investment to cater to both, the domestic and export demand. Indian Medical Equipments Industry - Opportunities for US Companies The Indian medical equipment market is growing at a rate of 15 percent and the demand for equipment is expected to reach $5 billion by 2012 from the current figure of $2.7 billion. Both the government and the private sector have embarked on a path to bring about a rapid growth in the industry and to manage the demand for high quality service. This has also brought a surge in demand for high-end medical devices and equipment as the specialty hospital facilities depend on the import of high-end medical equipment. Industry Trends & News Banking & Finance  Big vendors eye overseas buys for niche offerings  Transgene Biotek acquires US-based Marillion  Network 18, A&E JV to offer new channels in India  Domestic i-banks look to forge alliances with foreign rivals Energy  RIL to buy 60% stake in US shale-gas venture for $392 million  Solar Semi inks pact with Canadian firm  Neah Power To Buy Bangalore's EKO Vehicles  HMEL selects IBM as partner for GGS Refinery  OIL in talks with US-based shale gas cos for JV Technology & Telecom  TCS wins PwC's contract to handle IT support system  Infotech acquires US telecom firm Wellsco to widen revenue to $1 bn  RCOM in talks with Motorola, HP, Intel for 3G strategic tie-up  Microsoft to tap SMEs in Tier-II cities
  3. 3. Life Sciences  US PE firm in talks to buy 15% in Dr Lal PathLabs from Sequoia  Transgene Biotek acquires US-based Marillion Food & Beverage  Tata-Pepsi JV to first focus on affordable packaged water  Godrej Hershey plans to bring popular brands from abroad  Coca-Cola enters dairy-based beverages segment Industrial Commodities & Manufacturing  NTPC-BHEL JV eyeing global technology partner  India to levy 10 pct import tax on power gear  GE, Siemens in race for electric locomotive unit Indian Economy  India largest recipient of World Bank loans in 2009-10  Indian economy grows by 8.8% in April-June  Canada, India to sign film and new media co- production pact IMaCS Virtus Global Partners 501 Fifth Ave, Suite 302 New York, NY 10017 (646) 807-9290