New Delhi: Inaugurating the 2nd India- ASEAN Business Fair- 2012 in New Delhi today, the Union Minister for Commerce, Industry & Textiles Shri Anand Sharma expressed confidence that the two-way trade between India and the ASEAN countries “will be able to reach USD 100 billion mark by 2015”. He also added that the early operationalisation of the Services and Investment Agreement would provide greater impetus to the trade and investment flows.
Welcoming the Trade Minister from the ASEAN countries, Shri Sharma urged the Trade Ministers that they should diversify the trade basket and that the economic gains on both sides would be substantial only if we develop supply chains with a focus on intra-industry trade. He also said that in order to realise the true potential of the economies, we should give a concerted push to strengthen the regional connectivity with ASEAN.
Shri Sharma said that India views its partnership with ASEAN as a crucial block in sustaining the growth momentum. “We would like to benefit from ASEAN experience in key sectors of economy such as infrastructure, agro-processing, retail and value added manufacturing. Equally, Indian companies can be invaluable partners for ASEAN economies in augmenting their productivity,” said Shri Sharma.
Speaking on Regional Comprehensive Economic Partnership, Shri Sharma said that the negotiations would be a momentous step. “The fruition of the Regional Comprehensive Economic Partnership which will have in its embrace ASEAN and the six countries including India, China, Republic of Korea, New Zealand, Japan and Australia, will truly have a defining influence on the global economic architecture,” Shri Sharma further added.
Later addressing media persons, Shri Sharma said that the FTA negotiations on Services and Investment would be concluded by tomorrow when ASEAN Ministerial will take place after the formal negotiations. “The senior officers have been meeting and we the Ministers have given them a very clear message and mandate at the recent ASEAN-India summit at Phnom Penh in Cambodia and senior officials and negotiators thereafter met in Jakarta… So the final round of negotiations is taking place between the senior officers of India, the Chief negotiator and his team and the ASEAN officials, and they will be formally reporting to the Ministerial meeting tomorrow. And the Ministers are committed. I can say for all of us to bring this negotiations to closure and carry on with our journey of partnership, added Shri Sharma.
Success in my Habit
Friday, December 21, 2012
Temasek to put in Rs 572 cr for second Godrej investment
Mumbai: Making its second investment in the Godrej Group, Singapore-government owned sovereign fund Temasek has entered into an agreement to acquire a 19.99 per cent stake in Godrej Agrovet Limited (GAVL), a subsidiary of Godrej Industries Limited (GIL), for Rs 572 crore.
In January this year, Temasek had acquired 4.9 per cent stake in Godrej Consumer Products Ltd (GCPL) for Rs 685 crore through its wholly owned subsidiary, Baytree. Baytree had bought 16.7 million shares in GCPL at Rs 410 a share.
On Monday, shares of Godrej Industries went down 0.60 per cent to close at Rs 308.15 on the Bombay Stock Exchange. The investment will be a combination of primary and secondary investment, with the primary investment intended to support GAVL’s future expansion plans, said a company statement.
The Rs 2,460-crore Godrej Agrovet Limited is a leading manufacturer of agriculture and poultry-based products, with well-known brands such as Real Good Chicken and Yummiez. Godrej Agrovet has 45 manufacturing facilities, a network of over 10,000 rural distributors and over 2,000 employees across the country.
The poultry division has joined hands with Tyson Foods, a US-based leading meat processor and marketer.
Nadir Godrej, chairman of GAVL, said: “We welcome Temasek as a partner. We believe that their global credentials, knowledge of agribusiness and excellent track record will be beneficial to GAVL. Indian agriculture is at an inflection point and with GAVL’s focus on R&D and operational excellence, we believe that the future looks very bright for the business.”
In the past five years, Indian agriculture sector saw 35 private equity/venture capital deals, worth $356 million.
Earlier, Rohit Sipahimalani, head of Temasek India, had said that the Indian consumption story remained intact and the Singapore firm is keen on the space. Temasek's major portfolio companies in India include Bharti Airtel, Tata Sky, NSE, GMR Energy and Tata Teleservices.
In January this year, Temasek had acquired 4.9 per cent stake in Godrej Consumer Products Ltd (GCPL) for Rs 685 crore through its wholly owned subsidiary, Baytree. Baytree had bought 16.7 million shares in GCPL at Rs 410 a share.
On Monday, shares of Godrej Industries went down 0.60 per cent to close at Rs 308.15 on the Bombay Stock Exchange. The investment will be a combination of primary and secondary investment, with the primary investment intended to support GAVL’s future expansion plans, said a company statement.
The Rs 2,460-crore Godrej Agrovet Limited is a leading manufacturer of agriculture and poultry-based products, with well-known brands such as Real Good Chicken and Yummiez. Godrej Agrovet has 45 manufacturing facilities, a network of over 10,000 rural distributors and over 2,000 employees across the country.
The poultry division has joined hands with Tyson Foods, a US-based leading meat processor and marketer.
Nadir Godrej, chairman of GAVL, said: “We welcome Temasek as a partner. We believe that their global credentials, knowledge of agribusiness and excellent track record will be beneficial to GAVL. Indian agriculture is at an inflection point and with GAVL’s focus on R&D and operational excellence, we believe that the future looks very bright for the business.”
In the past five years, Indian agriculture sector saw 35 private equity/venture capital deals, worth $356 million.
Earlier, Rohit Sipahimalani, head of Temasek India, had said that the Indian consumption story remained intact and the Singapore firm is keen on the space. Temasek's major portfolio companies in India include Bharti Airtel, Tata Sky, NSE, GMR Energy and Tata Teleservices.
Gujarat pharma SMEs bet on Africa, LatAm for exports
Ahmedabad: With an eye on higher margins, Gujarat-based small and medium-sized pharmaceutical manufacturers are focusing on export markets, especially emerging economies such as African and Latin American nations.
While overall exports from pharma SMEs are growing by 12-15 per cent a year, exports to these markets are clocking a compound annual growth rate of 30-35 per cent, say industry insiders.
SMEs based in Gujarat exported pharma products worth Rs 400-500 crore in 2011-12. The figure is expected to grow by 15 per cent this year. Of the net exports by SMEs, the share of emerging markets is 50-60 per cent, and it is rising yearly by 30-35 per cent, said a senior official of the Gujarat chapter of the Indian Drug Manufacturers’ Association.
Export markets offer better margins than domestic sales, said V Shah of Saga Laboratories, which exports oral dosage forms to countries in Africa, Latin America and the Commonwealth of Independent States. Emerging markets are becoming popular export destinations because they are relatively easier to penetrate.
Mahendra G Patel, managing director, Lincoln Pharmaceuticals, said: “Regulatory documentation work is relatively less in these countries. For small and mid-sized companies which do not have adequate infrastructure to meet the European Union or United States Food and Drugs Administration standards, countries in Africa and Latin America offer good business opportunities. The regulatory authorities are liberal and the organised sector is not well developed.”
While authorities from these countries do conduct site inspections of manufacturing facilities, getting approvals is much easier compared to regulated markets, he said.
The average cost of clinical trials to generate safety-related data required by a particular country for a specific drug is in the range of Rs 3-5 crore. This is in addition to the cost of development of the drug, as well as overhead costs.
After tasting success in export markets, Saga Laboratories reduced its focus on domestic sales. “When we had started in 1994, the proportion of domestic sales was 90-95 per cent of our net turnover. Gradually, this share has come down, and exports started rising. At the moment, we are exporting our entire production,” Shah explained.
He further added that the domestic market is cost-competitive, and margins are lower. In comparison, while exporters need to make greater investments in plant and machinery to ensure that quality parameters are met, the returns are also higher, he claimed.
Saga Laboratories has already received approval from the Gujarat State Food and Drugs Control Administration to set up a new formulations plant at its Changodar site near Ahmedabad.
Yash Medicare, another Ahmedabad-based firm, which makes generic formulations, and currently supplies countries like Mozambique, Congo, Ghana, Nigeria, Trinidad and Tobago, has registered its products in South East Asian geographies like Vietnam, Sri Lanka and Myanmar recently.
“We are expecting to get our first orders from these new geographies by January-February,” said Chirag Doshi, managing director of Yash Medicare.
His company is adding two new lines at its Himmatnagar facility to make pharmaceutical aerosol, a spray-based skin application. “For the new product, we will focus on the export market. We expect this new product range to contribute around Rs 1.5 crore towards our turnover. Our turnover is around Rs 8.5 crore at present,” Doshi explained.
Doshi, who is a senior IDMA official as well, added that there are around 125 units in the state that are World Health Organisation-Good Manufacturing Practices certified.
While overall exports from pharma SMEs are growing by 12-15 per cent a year, exports to these markets are clocking a compound annual growth rate of 30-35 per cent, say industry insiders.
SMEs based in Gujarat exported pharma products worth Rs 400-500 crore in 2011-12. The figure is expected to grow by 15 per cent this year. Of the net exports by SMEs, the share of emerging markets is 50-60 per cent, and it is rising yearly by 30-35 per cent, said a senior official of the Gujarat chapter of the Indian Drug Manufacturers’ Association.
Export markets offer better margins than domestic sales, said V Shah of Saga Laboratories, which exports oral dosage forms to countries in Africa, Latin America and the Commonwealth of Independent States. Emerging markets are becoming popular export destinations because they are relatively easier to penetrate.
Mahendra G Patel, managing director, Lincoln Pharmaceuticals, said: “Regulatory documentation work is relatively less in these countries. For small and mid-sized companies which do not have adequate infrastructure to meet the European Union or United States Food and Drugs Administration standards, countries in Africa and Latin America offer good business opportunities. The regulatory authorities are liberal and the organised sector is not well developed.”
While authorities from these countries do conduct site inspections of manufacturing facilities, getting approvals is much easier compared to regulated markets, he said.
The average cost of clinical trials to generate safety-related data required by a particular country for a specific drug is in the range of Rs 3-5 crore. This is in addition to the cost of development of the drug, as well as overhead costs.
After tasting success in export markets, Saga Laboratories reduced its focus on domestic sales. “When we had started in 1994, the proportion of domestic sales was 90-95 per cent of our net turnover. Gradually, this share has come down, and exports started rising. At the moment, we are exporting our entire production,” Shah explained.
He further added that the domestic market is cost-competitive, and margins are lower. In comparison, while exporters need to make greater investments in plant and machinery to ensure that quality parameters are met, the returns are also higher, he claimed.
Saga Laboratories has already received approval from the Gujarat State Food and Drugs Control Administration to set up a new formulations plant at its Changodar site near Ahmedabad.
Yash Medicare, another Ahmedabad-based firm, which makes generic formulations, and currently supplies countries like Mozambique, Congo, Ghana, Nigeria, Trinidad and Tobago, has registered its products in South East Asian geographies like Vietnam, Sri Lanka and Myanmar recently.
“We are expecting to get our first orders from these new geographies by January-February,” said Chirag Doshi, managing director of Yash Medicare.
His company is adding two new lines at its Himmatnagar facility to make pharmaceutical aerosol, a spray-based skin application. “For the new product, we will focus on the export market. We expect this new product range to contribute around Rs 1.5 crore towards our turnover. Our turnover is around Rs 8.5 crore at present,” Doshi explained.
Doshi, who is a senior IDMA official as well, added that there are around 125 units in the state that are World Health Organisation-Good Manufacturing Practices certified.
JSW Steel signs technology agreement with Japan's JFE to make electrical steels
Kolkata: JSW Steel, one of the county's largest private steel producers and Japan's JFE Steel Corporation have signed a joint agreement where JFE will provide technology for the production of non-oriented electrical steel sheets (CRNGO) at the JSW Steel's Vijayanagar plant in Karnataka.
By leveraging JFE Steel's well-established manufacturing technology for electrical steel, JSW will produce CRNGO grade electrical steel and supply to its customers, including local companies as well as Japanese, European and US-affiliated companies doing business in India.
The electrical steel sheet products are primarily imported in India due to technological constraints and JSW Steel shall be in a position to cater to fast growing consumer and industrial applications market.
JSW Steel plans to start up its new annealing and coating line for electrical steel sheets in latter half of 2014. The initial annual output is projected to be 200,000 tonnes, which will be increased to 0.6 million tons per year in phases.
The company will also take sight on the production of Cold Rolled Grain Oriented (CRGO) grade in future. To be implemented in phased manner, JSW hopes the move will enable it to emerge as the largest producer of electrical steels in the country.
By leveraging JFE Steel's well-established manufacturing technology for electrical steel, JSW will produce CRNGO grade electrical steel and supply to its customers, including local companies as well as Japanese, European and US-affiliated companies doing business in India.
The electrical steel sheet products are primarily imported in India due to technological constraints and JSW Steel shall be in a position to cater to fast growing consumer and industrial applications market.
JSW Steel plans to start up its new annealing and coating line for electrical steel sheets in latter half of 2014. The initial annual output is projected to be 200,000 tonnes, which will be increased to 0.6 million tons per year in phases.
The company will also take sight on the production of Cold Rolled Grain Oriented (CRGO) grade in future. To be implemented in phased manner, JSW hopes the move will enable it to emerge as the largest producer of electrical steels in the country.
Government to Develop 54 Cities as Solar Cities
New Delhi: The Minister of New and Renewable Energy, DR. Farooq Abdullah informed Rajya Sabha today that in-Principle, approval has been given to 54 cities for developing as Solar Cities.
The draft Master Plans have been prepared for 28 cities, out of which 8 Master Plans have been approved by his Ministry for implementation. So far, an amount of Rs.19.23 crore has been sanctioned for preparation of Master Plans, Solar City Cells and Promotional Activities for 41 cities, out of which Rs. 4.22 crore has been released. Further, an amount of Rs.11.98 crore has been sanctioned for execution of renewable energy projects in 5 cities, out of which Rs.3.87 crore has been released. The minister further informed that the criteria set by the Ministry for the identification of cities include a city population between 50,000 to 50 lakh (with relaxation given to special category States including North-East States), initiatives and regulatory measures already taken along with a high level of commitment in promoting energy efficiency and renewable energy.
So far, an amount of Rs.19.23 crore has been sanctioned for preparation of Master Plans, Solar City Cells and Promotional Activities for 41 cities, out of which Rs. 4.22 crore has been released. Further, an amount of Rs.11.98 crore has been sanctioned for execution of renewable energy projects in 5 cities, out of which Rs.3.87 crore has been released for utilization by the concerned State Nodal Agencies/ Municipal Corporations.
So far, the Master Plans for 8 cities namely Agra, Moradabad from Uttar Pradesh, Thane &Kalyan-Dombivli from Maharashtra, Indore from Madhya Pradesh, Kohima from Nagaland, Aizawl from Mizoramand Chandigarh have been finalized and the development of projects is in progress.
The draft Master Plans have been prepared for 28 cities, out of which 8 Master Plans have been approved by his Ministry for implementation. So far, an amount of Rs.19.23 crore has been sanctioned for preparation of Master Plans, Solar City Cells and Promotional Activities for 41 cities, out of which Rs. 4.22 crore has been released. Further, an amount of Rs.11.98 crore has been sanctioned for execution of renewable energy projects in 5 cities, out of which Rs.3.87 crore has been released. The minister further informed that the criteria set by the Ministry for the identification of cities include a city population between 50,000 to 50 lakh (with relaxation given to special category States including North-East States), initiatives and regulatory measures already taken along with a high level of commitment in promoting energy efficiency and renewable energy.
So far, an amount of Rs.19.23 crore has been sanctioned for preparation of Master Plans, Solar City Cells and Promotional Activities for 41 cities, out of which Rs. 4.22 crore has been released. Further, an amount of Rs.11.98 crore has been sanctioned for execution of renewable energy projects in 5 cities, out of which Rs.3.87 crore has been released for utilization by the concerned State Nodal Agencies/ Municipal Corporations.
So far, the Master Plans for 8 cities namely Agra, Moradabad from Uttar Pradesh, Thane &Kalyan-Dombivli from Maharashtra, Indore from Madhya Pradesh, Kohima from Nagaland, Aizawl from Mizoramand Chandigarh have been finalized and the development of projects is in progress.
India and Malaysia Agrees to Strengthen, Cooperation in Renewable Energies
New Delhi: The Minister of New and Renewable Energy, DR. Farooq Abdullah informed Rajya Sabha today that India and Malaysia have agreed to strengthen, promote cooperation in renewable energies between the two countries and to take necessary steps to encourage their development for mutual benefits.
A Memorandum of Understanding (MoU) in the field of Renewable Energy was signed between the Ministry of New and Renewable Energy, Government of India and the Ministry of Energy, Green Technology and Water, Government of Malaysia on 7th November, 2012 in New Delhi. The two countries intend to form a Joint Working Group in order to coordinate in renewable energy through joint research or technical projects on subjects of mutual interest, exchange and training of scientific and technical personnel, exchange of available scientific and technological information and data, organization of workshops, seminars and working groups, transfer of know-how, technology and equipment, on non-commercial basis.
A Memorandum of Understanding (MoU) in the field of Renewable Energy was signed between the Ministry of New and Renewable Energy, Government of India and the Ministry of Energy, Green Technology and Water, Government of Malaysia on 7th November, 2012 in New Delhi. The two countries intend to form a Joint Working Group in order to coordinate in renewable energy through joint research or technical projects on subjects of mutual interest, exchange and training of scientific and technical personnel, exchange of available scientific and technological information and data, organization of workshops, seminars and working groups, transfer of know-how, technology and equipment, on non-commercial basis.
Monday, December 17, 2012
Fortis Intl to sell Dental Corp stake to UK’s Bupa for A$270 million
New Delhi: Fortis Healthcare International, a subsidiary of Fortis Healthcare, is to sell its 64 per cent stake in Dental Corporation Holdings Ltd, Australia, to UK’s healthcare major, Bupa.
The deal, which is expected to be completed in March, was made for 270 million Australian dollars (around Rs 1,500 crore). Fortis had bought the shares of DCH in two separate deals, worth a total of about A$200.
The Executive Chairman and Executive Vice-Chairman of Fortis Healthcare, Malvinder Singh and Shivinder Singh, said in a release that the move is “good” for Fortis.
“We are decisive in our response and bold in our actions,” the brothers said, and added that the decision will help the company to consolidate its presence as one of the fastest growing healthcare companies in the region.
Fortis bought 25.6 per cent shares of DCH in January 2011. The company said it had added “considerable value” to the business, growing its dental practices from 140 to 190 in Australia and New Zealand.
“The model however has remained confined to the two countries and in spite of exploration and backing has found limited acceptance in other Fortis geographies, as originally envisaged,” the release added.
Fortis Healthcare Ltd’s businesses span diagnostics, primary care, day-care specialty centres, and hospitals. Apart from India, it has presence in Australia, Canada, the UAE, Hong Kong, Mauritius, Nepal, New Zealand, Singapore, Sri Lanka and Vietnam.
The deal, which is expected to be completed in March, was made for 270 million Australian dollars (around Rs 1,500 crore). Fortis had bought the shares of DCH in two separate deals, worth a total of about A$200.
The Executive Chairman and Executive Vice-Chairman of Fortis Healthcare, Malvinder Singh and Shivinder Singh, said in a release that the move is “good” for Fortis.
“We are decisive in our response and bold in our actions,” the brothers said, and added that the decision will help the company to consolidate its presence as one of the fastest growing healthcare companies in the region.
Fortis bought 25.6 per cent shares of DCH in January 2011. The company said it had added “considerable value” to the business, growing its dental practices from 140 to 190 in Australia and New Zealand.
“The model however has remained confined to the two countries and in spite of exploration and backing has found limited acceptance in other Fortis geographies, as originally envisaged,” the release added.
Fortis Healthcare Ltd’s businesses span diagnostics, primary care, day-care specialty centres, and hospitals. Apart from India, it has presence in Australia, Canada, the UAE, Hong Kong, Mauritius, Nepal, New Zealand, Singapore, Sri Lanka and Vietnam.
Jetking Infotrain to expand into overseas market
Hyderabad: Computer education firm Jetking Infotrain is making a foray into the overseas computer hardware training market, with plans to open centres in Sri Lanka, Bangladesh, Nepal and Nigeria next fiscal.
The institute, which has 100 centres across India, a majority of which is franchise-run, currently has a small presence in Vietnam with two centres.
“We will start with a 500-capacity centre each in Sri Lanka, Bangladesh and Nepal, while the Nigerian outlet will have a 1,000-student capacity. We will be opening these centres through tie-ups with local partners,” Suresh G. Bharwani, Chairman and Managing Director, told Business Line.
Jetking, which has so far trained six lakh students in India, trains about 30,000 students in different computer hardware and networking fields.
“Last year, 50 per cent of the students had got immediate placements, including in top IT companies, with a minimum entry-level monthly salary of between Rs 10,000 and Rs 15,000,” he said.
The BSE-listed firm is tying up with the National Skill Development Council to implement a five-year programme involving vocational education through 400 centres. The council has agreed to fund about Rs 80 crore for the project.
The institute, which has 100 centres across India, a majority of which is franchise-run, currently has a small presence in Vietnam with two centres.
“We will start with a 500-capacity centre each in Sri Lanka, Bangladesh and Nepal, while the Nigerian outlet will have a 1,000-student capacity. We will be opening these centres through tie-ups with local partners,” Suresh G. Bharwani, Chairman and Managing Director, told Business Line.
Jetking, which has so far trained six lakh students in India, trains about 30,000 students in different computer hardware and networking fields.
“Last year, 50 per cent of the students had got immediate placements, including in top IT companies, with a minimum entry-level monthly salary of between Rs 10,000 and Rs 15,000,” he said.
The BSE-listed firm is tying up with the National Skill Development Council to implement a five-year programme involving vocational education through 400 centres. The council has agreed to fund about Rs 80 crore for the project.
Corporate profits expected to grow at a healthy pace during second half of 2012-13
Chennai: Corporate profit is expected to remain strong at 30.3% for the December quarter and at 15.5% for the March 2013 quarter. "However, the high level of growth achieved in the September quarter will not be sustained.
Corporate profits shot up in the second quarter due to the announcement of the cumulative oil subsidy for the April-September quarter by the government and forex gains made by companies on their short term foreign exchange liabilities consequent to the appreciation of the rupee. Also, the low base of last year made the profit growth look impressive," CMIE ( Centre for Monitoring Indian Economy) said in its November review.
Moving forward, growth in profits is expected to be led by moderation in input prices, reduction in forex losses and announcement of oil subsidies by the government on a regular basis. "Receipt of Rs 20,000 crore oil subsidies, flat crude oil prices and lower forex losses compared to the year-ago quarter are expected to help the petroleum products industry report a 10% growth in profits during the quarter," CMIE said.
And with the manufacturing sector procuring imported raw materials one to two months in advance, the positive impact of the rupee appreciation is expected to be visible on the raw material expenses of manufacturing companies during the third quarter.
Corporate profits shot up in the second quarter due to the announcement of the cumulative oil subsidy for the April-September quarter by the government and forex gains made by companies on their short term foreign exchange liabilities consequent to the appreciation of the rupee. Also, the low base of last year made the profit growth look impressive," CMIE ( Centre for Monitoring Indian Economy) said in its November review.
Moving forward, growth in profits is expected to be led by moderation in input prices, reduction in forex losses and announcement of oil subsidies by the government on a regular basis. "Receipt of Rs 20,000 crore oil subsidies, flat crude oil prices and lower forex losses compared to the year-ago quarter are expected to help the petroleum products industry report a 10% growth in profits during the quarter," CMIE said.
And with the manufacturing sector procuring imported raw materials one to two months in advance, the positive impact of the rupee appreciation is expected to be visible on the raw material expenses of manufacturing companies during the third quarter.
Private equity and M&A deals in November increases by 5 times to $10.1 billion: Grant Thornton India
Mumbai: With the improvement in sentiments in markets, there is a strong wave of value buying in the private equity and mergers and acquisitions part of the markets. In November this, there has been considerable improvement in the total value of private equity and mergers and acquisition deals.
According to a study by Grant Thornton India, the total value of private equity and mergers and acquisitions deals in November increased by five times to US$ 10.1 billion from US$ 1.9 billion in the same month last year.
This is a good sign for investors who have been circumspective about investing in markets. Since, private equity players are one of the early strategic investors, which identify value investments in the markets.
According to the study by the advisory firm, in November this year, in terms of mergers and acquisitions, even though the number of inbound deals-foreign companies or their subsidiaries acquiring Indian businesses, has come down (to 12 deals from 16 deals, year on year), the total value of inbound deals has risen considerably.
The total value of inbound deals trebled to US$2.1 billion in November this year. Interestingly, the number of outbound deals-Indian companies acquiring businesses outside India and their total value, in November this year, showed remarkable improvement in November this year.
In November, the number of outbound deals shot up to 15 deals from 10 and its total value rose to US$6.7 billion from US$1.9 billion in the same month last year.
As regards, private equity deals, the total value of private equity deals in November this year, rose to US$39 billion from US$0.4 billion in November last year, indicating that private equity players are preferring concentrated exposure to their value investments.
In terms of sectors, around 52% of total value of mergers and acquisitions deals came from Oil & Gas sector, followed by Breweries & Distilleries (22%), and Plastics & Chemicals (11%), while the remaining value of the mergers and acquisitions came from Pharma, healthcare & Biotech and Banking and Financial services.
According to a study by Grant Thornton India, the total value of private equity and mergers and acquisitions deals in November increased by five times to US$ 10.1 billion from US$ 1.9 billion in the same month last year.
This is a good sign for investors who have been circumspective about investing in markets. Since, private equity players are one of the early strategic investors, which identify value investments in the markets.
According to the study by the advisory firm, in November this year, in terms of mergers and acquisitions, even though the number of inbound deals-foreign companies or their subsidiaries acquiring Indian businesses, has come down (to 12 deals from 16 deals, year on year), the total value of inbound deals has risen considerably.
The total value of inbound deals trebled to US$2.1 billion in November this year. Interestingly, the number of outbound deals-Indian companies acquiring businesses outside India and their total value, in November this year, showed remarkable improvement in November this year.
In November, the number of outbound deals shot up to 15 deals from 10 and its total value rose to US$6.7 billion from US$1.9 billion in the same month last year.
As regards, private equity deals, the total value of private equity deals in November this year, rose to US$39 billion from US$0.4 billion in November last year, indicating that private equity players are preferring concentrated exposure to their value investments.
In terms of sectors, around 52% of total value of mergers and acquisitions deals came from Oil & Gas sector, followed by Breweries & Distilleries (22%), and Plastics & Chemicals (11%), while the remaining value of the mergers and acquisitions came from Pharma, healthcare & Biotech and Banking and Financial services.
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