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US india transactions & investment monitor - december 2010


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US india transactions & investment monitor - december 2010

  1. 1. December 2010IMaCS Virtus Global Partners NewsletterTransaction & Investment Flow between US and India Recent Reports and November 2010 saw a preponderance of Indian-bound acquisitions by US News companies by volume and US-bound acquisitions by Indian companies in Obama Visit and Outlook for value. There were seven India-bound M&A transactions from the US and Outsourcing three US-bound acquisitions from India. Most of these transactions were in the areas of consumer goods, industrials and pharmaceuticals.Indian Machine Tools Industry These transactions reflect two key strategic themes that IVG Partners has Industry Trends & News witnessed gaining strength in the last six months - First, large US companies are seeking to expand their India presence inorganically, andDabur,Zensar,Fidelity,Namaste second, Indian mid to large-size companies are leveraging their financial Laboratories,Glaxo,Fedex strength to access overseas markets aggressively. HCL,Alcatel,Intelenet,CA A very interesting transaction last month was Dabur Indias acquisition of Tech,VenSat US-based Namasté Laboratories and its three subsidiary companies for $100m. It provided Dabur an entry into the ethnic hair care market in the Eaton,Ford,MicroSemi,Akbar US, Europe and Africa. This acquisition is in line with several Indian Tools companies strategy to build a global presence in the international market. Kiehls,Dr Reddys,Merck,Sun With this acquisition, nearly 25 percent of Daburs consolidated revenue Pharma would be generated overseas. Coca-Cola,Nestle Another transaction was FedEx Expresss acquisition of the logistics, distribution and express businesses of India-based AFL Pvt. Ltd. and its About IVG Partners affiliate, Unifreight India Pvt. Ltd. This acquisition is expected to give FedEx a more robust domestic ground network and added capabilities in IMaCS Virtus Global India. This acquisition supports Fedexs strategy to better serve its Partners(IVG Partners), a joint customers seeking to expand or enter the Indian market venture between ICRA Management Consulting US-based Avantor Performance Materials Holdingss acquisition of RFCL Services and Virtus Global allows it to build on its current presence in the laboratory and Partners, offers transaction pharmaceutical markets in India. RFCL is a leader in laboratory reagentsadvisory to North American and and consumables as well as products for the medical diagnostics market inIndian companies seeking cross India. border growth and investment Dr Reddys acquisition of GlaxoSmithKlines United States oral penicillin opportunities.For more facility and product portfolio allows it to enter the United States penicillin- information, please containing antibacterial market segment and serve the needs of its customers & patients through manufacturing capabilities that did not previously exist within Dr. Reddys. Other US-India transactions include Cambrex Corp acquisition of Zenara Pharmaceuticals for $20 million, Norwest Ventures investment in Tutor Vista and Zensar Technologies acquisition of Akibia for $66 million. Welcome to the November 2010 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 ReportsWebinar: The Obama Visit, IT Outsourcing in India,and the FutureOutlook The U.S.-India Business Council, NIIT Technologies, and IVG Partners conducted an exclusive webinar on future outlook of outsourcing in relation to President Obamas recent trip to India. The discussion focuses on the ground realities of a changing landscape and how the future of the IT outsourcing corridor looks. Indian Machine Tools Industry - Opportunities for US Companies India ranks 17th in production and 12th in the consumption of machine tools in the world.The country is set to become a key player in the global machine tools industry and is likely to see substantial high-end machine tool manufacturing, even asChina keeps its lead in lower end volumes. Several firms have entered theIndian machine tools sector, or announced plans for joint ventures orwholly owned subsidiaries in India.Industry Trends & NewsBanking & Finance Dabur buys US hair care co for $100 mn Zensar buys US group PSI Holdings in $66M deal,Eyes LatAm buy Fidelity Dr Reddys buys Glaxos U.S. pencillin business CIL mulls acquisition of Massey Energy FexEx to acquire AFL to step up India playTechnology & Telecom HCL Tech bags $100mn deal in US Alcatel makes India its hub for managed services Intelenet to step up presence in India CA Tech looking for expansion Animation company VenSat opens US armInfrastructure & Manufacturing Eaton to enter power distribution biz Auto component maker Akbar Tools looks to buy forging unit in US Ford to export to 48 countries from India Microsemi to ramp up Hyderabad R&D centreLife Sciences Dr Reddys buy Glaxos US penicillin business
  3. 3. Merck to take buyout route to grow here US skincare brand Kiehls enters India Sun pharma gets US nod for allergy, BP drugsFood and Beverage Coca-Cola, Nestle JV launches bottled ice tea NesteaIMaCS Virtus Global Partners501 Fifth Ave, Suite 302New York, NY 10017(646)