The document provides top business headlines and summaries of key stories. It discusses Vedanta Aluminium acquiring bauxite mines, Samara Capital investing in Monte Carlo Fashions, and DLF selling hotel assets. It also mentions Komli Media raising funds, Zicom acquiring a stake in a Qatar company, and Jyothy Labs merging with Henkel. The weekly economic review discusses a warning by S&P about India's credit rating and slow GDP growth, as well as inflation and industrial production figures.

1. Top Headlines
 Vedanta Aluminium to acquire L&T’s bauxite mines in
Orissa for $330M.
 Samara Capital invests $32M in Monte Carlo Fashions
 DLF sells hotel assets to Kolkata-based consortium for
$103M
 Komli Media raises $39M from Norwest Venture Partners,
Nexus, Helion & others
 Zicom acquires 49 per cent in Qatar’s Phoenix
International for $15M
 Jyothy Labs to merge Henkel to consolidate biz
Weekly Economic Review
The week began on a rather turbulent note for the country’s economy.
Credit rating agency, S&P warned India that it could be one of the first
BRIC nation to get a downgrade. India might lose its investment grading
citing slow GDP & political roadblocks to policy-making. Also the ‘BBB-’
long term sovereign credit rating is currently a notch above speculative
grade. In April, S&P had revised country’s credit outlook to negative.
But finance minister remained confident about India’s growth story. He
dismissed the Standard & Poor’s warning stating that the government is
fully aware of the situation and expressed confidence in the country’s
economic track record. He added that the S&P report is not based on a
fresh rating action. Also, there are no significant events to indicate that
India’s vulnerability to shocks has increased, despite slow growth
numbers.
Here’s sector-wise breakup of the IIP figures. The manufacturing sector
grew barely 0.1% as against 5.7% in April 2011. Capital goods output
declined by 16.3% against a growth of 6.6% in the same month last
year. Mining contracted by 3.1% as compared 1.6% growth in April
2011. On the flipside, consumer durables segment expanded by 5% as
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2. Against 1.6% last year. These numbers are likely to put pressure on the
Reserve Bank to cut its lending rate.
Inflation figures for May were also released in the week. The overall
food inflation rose to 10.7% from 10.4% in the same period last year.
Vegetables inflation was lower at 49.4% in May.
After six months of backtracking on plans to allow FDI in retail, major
retail chains are scaling down their operations. After future group gave
away stake to Aditya Birla in its clothing brand Pantaloons, Aditya Birla
shuts 50 of its ‘MORE’ stores. Reliance also shut down 1,300 Reliance
Fresh stores as it was unable to make money. Experts feel, no decision is
expected before 2014 general elections.
Reliance Communications’ undersea cable business has got an approval
for an IPO on the Singapore stock exchange. With the IPO, RCom could
raise more than $1 bn. This move will help the Anil Ambani-led
company to cut some of its debt burden which stands at $7 bn as of
March. The company had been trying to raise funds by selling its
telecom assets but has been largely unsuccessful. The company hasn’t
specified any date for the IPO, though insiders say, it could be next
month.
ONGC is set to invest Rs. 440 crores in drilling 40 oil & gas wells in the
KG basin next year. The proposal is currently with the environment
ministry for clearances. The wells would be located in east-west
Godavari & Krishna district in Andhra Pradesh. According to ONGC,
these blocks are estimated to have 1,000 million metric tonnes of oil.
ONGC, which has 24 blocks in KG basin, produces approximately 840
tonnes of oil per day.
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3. Inside The Story
Vedanta Aluminium to acquire L&T’s bauxite mines in
Orissa for $330M
LSE-listed Vedanta Resources’ group firm Vedanta Aluminium (VAL)
has struck a deal to acquire Raykal Aluminium Company Private Ltd
(Raykal) from diversified conglomerate Larsen & Toubro (L&T) for Rs
1,811 crore ($330 million) over a period of time in a milestone-based
acquisition, the company has disclosed.In the first leg of the deal, it has
acquired 24.5 per cent of Raykal for Rs 200.7 crore ($36 million).This
follows a deal struck in February wherein VAL entered into a tripartite
agreement with L&T and Raykal. L&T holds certain prospecting licenses
for bauxite mines located at Sijmali and Kurumali of Rayagad and
Kalahandi districts of Orissa. By this agreement the entire bauxite
excavated from above mines will be available for the use of Raykal
and/or Vedanta Aluminium.
Samara Capital invests $32M in Monte Carlo Fashions
Mumbai-based private equity fund Samara Capital has invested Rs 175
crore ($32 million) to acquire 20 per cent stake in Monte Carlo Fashions
Ltd, an apparel manufacturing and retailing company. The funding will
Be used to meet working capital requirements and Capex needs.Monte
Carlo Fashions is a part of the Punjab-based Nahar Group. Last year, the
group’s flagship Oswal Woollen Mills hived off this premium apparel
Brand into a separate entity to unlock the value of the brand through
IPO and private placement. Monte Carlo was valued at Rs 850 crore
when it was hived off from the parent. The company said last November
that it was looking to dilute up to 25-30 per cent stake through private
equity and public issue for raising Rs 330-380 crore from PE funds and
IPO.The current deal values the privately held firm at Rs 875 crore or
$160 million. Religare Capital was the advisor for the transaction.
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4. DLF sells hotel assets to Kolkata-based consortium for
$103M
DLF, the largest realtor according to market capitalisation, has finally
managed to sell off its hotel land parcels to a consortium of developers
from Kolkata for Rs 567 crore (approx. $103 million). The consortium,
including Avani Projects and Square Four Housing & Infrastructure Pvt
Ltd, had been in talks with DLF since December last year to acquire the
land parcels totalling 17 acre and spread across four cities.DLF today
announced to the bourses that the company’s wholly owned subsidiary,
DLF Hotel Holdings Ltd, divested its entire shareholding in Adone
Hotels and Hospitality Ltd (the company which holds the land parcels)
for Rs 567 crore
Komli Media raises $39M from Norwest Venture Partners,
Nexus, Helion & others
Mumbai-based online ad network and audience measurement provider
Komli Media India Pvt Ltd has raised $39 million, led by Norwest
Venture Partners, with participation from Nexus Venture Partners,
Helion Venture Partners, Draper Fisher Jurvetson and Western
Technology Investment.This is the company’s fourth and largest
financing till date. And till now, the company has raised a total of $62
million.The fund will be used to enhance the company’s core media
echnology platforms and products, hiring more talents and expand its
presence across the Asia-Pacific market. Other than this, it will also be
used to for the recently done acquisition of Admax Network, a South-
east Asian digital media network
Zicom acquires 49 per cent in Qatar’s Phoenix
International for $15M
Security solutions firm Zicom Electronic Security Systems Ltd and its
Singapore-based arm Unisafe Fire Protection has acquired a 49 per cent
stake in fire security solutions provider Phoenix International WLL for
$15 million.Zicom has acquired five per cent stake, while its subsidiary
Unisafe Fire Protection Specialists Singapore Pte has acquired 44 per
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5. cent stake in Phoenix International, according a filing in the Bombay
Stock Exchange.
Jyothy Labs to merge Henkel to consolidate biz
Consumer goods company Jyothy Laboratories Ltd is merging Henkel
India Ltd with itself to consolidate its personal care products business
under a single umbrella, completing the final leg of its strategic
acquisition of the Indian arm of German giant Henkel.Jyothy Labs, which
currently owns 83.66 per cent stake in Henkel India, will issue 1 share
for every eight shares owned in Henkel India. If the same is converted
into shares or treasury stock of Jyothy Labs, it would be worth Rs 288
crore as per current stock market price.But the company has decided to
cancel them, which would lead to minimal equity dilution for Jyothy
Labs. Other shareholders of Henkel India would get cumulatively just
around 2.87 per cent stake worth Rs 55 crore.
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