Bengaluru: Strides Arcolab, a Bangalore-based mid-size publicly-held pharmaceutical company, will acquire Chennai-based Shasun Phamaceutical in an all-stock transaction. The combined entity will have revenues of Rs 2,500 crore.
As part of this acquisition, shareholders of Shasun will get five equity shares of Strides in lieu of 16 Shasun shares. Based on the exchange ratio, Shasun shareholders will own 26 per cent of the combined entity. After the approval of the merger, the current promoters of Shasun will be categorised as promoters of the combined entity, along with the existing promoters of Strides.
This combination will create a vertically-integrated pharma company with presence in front-ended regulated markets finished dosages, emerging markets branded generics, institutional business, active pharmaceutical ingredients (API) and contract research and manufacturing services (Crams). A key rationale for this acquisition is to leverage on Shasun's footprint in the API manufacturing capacities.
According to a joint statement, this combination enhances finished dosages portfolio in niche and complex domains with a pipeline of 100 products and accelerates product filings with a combined research and development strength of 400 personnel. "It will also result in de-risking of operations with the combined entity having 12 manufacturing facilities including three USFDA (US Food and Drug Administration)-approved finished dosage manufacturing facilities, two USFDA-approved API manufacturing facilities, one USFDA-approved Crams facility and six manufacturing facilities catering to the emerging markets," the statement added.
Commenting on the merger, Arun Kumar, founder and group chief executive officer of Strides, said: "Since the divestment of our injectables business, which resulted in significant value creation for our shareholders, Strides has re-focused on its oral finished formulation business. Today's proposed combination with Shasun accelerates that step with use of our combined infrastructure."
While Strides Arcolab stock gained a good 9 per cent to close at Rs 699.65 per share on NSE, Shasun stocked dropped by 0.33% and closed at Rs 196.15 per share on Monday.
Success in my Habit
Thursday, October 2, 2014
General Motors India begins vehicle exports to Chile
Chennai: General Motors India has commenced vehicle exports to Chile. The first 140 left hand drive Chevrolet Beat cars were shipped from Mumbai on September 25. They are expected to reach Chile in the next few weeks.
"The first shipment of Chevrolet Beats demonstrates our commitment to make our India-built products available in global markets," said GM India president and managing director Arvind Saxena. "We will continue to ship models to Chile on a monthly basis."
The Beat is produced at GM India's state-of-the-art manufacturing facility in Talegaon, Maharashtra. Available with gasoline and diesel engines, the Beat is India's most fuel-efficient hatchback and GM India's best-selling model. The city car is also built and sold in many other markets around the world. Saxena said, "We expect to identify additional export markets going forward. This will help drive capacity utilization at our Talegaon plant," he said.
GM CEO Mary Barra recently visited India and participated in the rollout of the first Beat for export on September 10. The Talegaon manufacturing facility has an annual production capacity of 170,000 vehicles and 160,000 engines.
"The first shipment of Chevrolet Beats demonstrates our commitment to make our India-built products available in global markets," said GM India president and managing director Arvind Saxena. "We will continue to ship models to Chile on a monthly basis."
The Beat is produced at GM India's state-of-the-art manufacturing facility in Talegaon, Maharashtra. Available with gasoline and diesel engines, the Beat is India's most fuel-efficient hatchback and GM India's best-selling model. The city car is also built and sold in many other markets around the world. Saxena said, "We expect to identify additional export markets going forward. This will help drive capacity utilization at our Talegaon plant," he said.
GM CEO Mary Barra recently visited India and participated in the rollout of the first Beat for export on September 10. The Talegaon manufacturing facility has an annual production capacity of 170,000 vehicles and 160,000 engines.
Google India signs pact with Andhra Pradesh govt to enable Digital AP vision
Mumbai: Google India and the Andhra Pradesh government will launch a number of initiatives aimed at bridging the state's digital divide and enabling skill development, according to a memorandum of understanding (MoU) signed between the two on Monday.
The measures are part of chief minister N. Chandrababu Naidu's Digital AP vision.
Google India will work with the state government to get women and small and medium businesses online and help them benefit from the Internet economy; help the state government make its websites mobile-ready and accessible in the local language; promote Internet safety among children and government officials; and improve and get more local language content online.
"We want to become the first state to embrace the prime minister's vision of Digital India and set an example for other states to follow. We are happy to announce a number of initiatives along with Google, that will serve as the foundation in achieving the Digital AP vision. I will be personally involved in ensuring the roll out of these initiatives and monitor the impact," said Naidu.
"Creating awareness about the benefits of Internet and promoting its adoption amongst women, small medium businesses and children can deliver a huge economic impact for the state. Improving accessibility to government websites and scaling the local language web can open up a whole new opportunity for local entrepreneurs and make the Internet more meaningful to non-English speaking users," said Rajan Anandan, vice-president and managing director, Google India.
On 5 September, Naidu told the Press Trust of India: "Our Prime Minister (Narendra) Modi has an ambition to make the country a Digital India. Now I am thinking to transform Andhra Pradesh into Digital AP prior to other states."
The measures are part of chief minister N. Chandrababu Naidu's Digital AP vision.
Google India will work with the state government to get women and small and medium businesses online and help them benefit from the Internet economy; help the state government make its websites mobile-ready and accessible in the local language; promote Internet safety among children and government officials; and improve and get more local language content online.
"We want to become the first state to embrace the prime minister's vision of Digital India and set an example for other states to follow. We are happy to announce a number of initiatives along with Google, that will serve as the foundation in achieving the Digital AP vision. I will be personally involved in ensuring the roll out of these initiatives and monitor the impact," said Naidu.
"Creating awareness about the benefits of Internet and promoting its adoption amongst women, small medium businesses and children can deliver a huge economic impact for the state. Improving accessibility to government websites and scaling the local language web can open up a whole new opportunity for local entrepreneurs and make the Internet more meaningful to non-English speaking users," said Rajan Anandan, vice-president and managing director, Google India.
On 5 September, Naidu told the Press Trust of India: "Our Prime Minister (Narendra) Modi has an ambition to make the country a Digital India. Now I am thinking to transform Andhra Pradesh into Digital AP prior to other states."
Indians to see 10.8% pay rise in 2015: Survey
Mumbai: Indian employees are expected to see a salary hike of 10.8 per cent in 2015, said a survey by Towers Watson. According to the the Towers Watson 2014-15 Asia-Pacific Salary Budget Planning Report, Pakistan, Bangladesh and Vietnam are set to lead the way with over 11 per cent overall salary increases while India is placed at the fourth position.
Salaries across Asia Pacific are set to rise by an average 7 per cent in 2015 as per which included 2,900 sets of responses received from over 300 different companies across a range of industry sectors and job grades from 20 countries. However, a corresponding rise in inflation in the region implies that pay increases in 'real terms' will be eroded in the coming year.
Interestingly, China rose to the top with a real salary increase of 5.2 per cent after allowing for inflation, trailed by Pakistan (4.5 per cent), Bangladesh (4.3 per cent), Vietnam (4.1 per cent) and Sri Lanka (3.8 per cent). India dropped down by two places to sixth position with a corresponding real increase of 3.5 per cent.
The survey said that in what is a clear indication of a positive economic sentiment, all 20 surveyed countries will witness an increase in 'regular salary reviews' in 2015 with a noteworthy reduction in the number of companies that opted for a 'salary freeze' or 'postponement' in the previous year.
"We foresee an increased economic growth in Asia Pacific in 2015 in light of a declining unemployment rate and rising GDP in the region. This, in turn, will lead to inflationary pressures that affect real salary increases. Indians will only see an effective salary increase that is one-third of the overall salary increase due to such pressures," said Sambhav Rakyan, Data Services practice leader, Asia Pacific at Towers Watson.
Across the region, the survey said that employees will have pay raises equal to or higher than last year in percentage terms, with the exception of Taiwan, where the rate of increase will drop from 2.8 per cent to 1.7 per cent after inflation.
The Towers Watson survey illustrates the challenge faced by businesses in the region as they seek to balance the effect of growing inflationary pressures and managing costs, while continuing to offer salaries sufficient to attract and retain skilled staff. "Our research demonstrates that salary continues to be the number one factor for attracting and retaining talent. As a result, a majority of employers across Asia Pacific plan to allocate a larger portion of salary budget increase to high performers," added Mr. Rakyan.
Analysing the findings by employee groups in India reveals that all employees - from production workers to executive directors - are set to have higher pay raises than last year.
The pharmaceutical sector across the region, including in India, will continue to have amongst the highest salary increases. It said that Vietnam (12 per cent), India (11.5 per cent) and China (8.9 per cent) will see the highest pay increases in this sector.
The financial services sector in India has traditionally seen higher comparative pay increases, but at a modest 10 per cent, the projected salary increase for 2015 is the same as the previous year and not as high as other sectors.
"Compensation at financial institutions has become a major concern for governments and the general public as a consequence of the recent global financial crises," said Rakyan, adding that discussions have been raised to regulate bankers' compensation, especially for those whose daily job tasks include risk taking that can have a significant financial impact on the bank.
Interestingly, Indian employees at both ends of the hierarchy - top management and blue collar staff - are likely to see the highest comparative pay increase in 2015.
In 8 out of the 10 sectors surveyed, the pay raises for Executive Directors and Senior Management in India are expected to be higher than or equal to 2014 with the Professional Services sector particularly standing out at 4.5 percent.
Salaries across Asia Pacific are set to rise by an average 7 per cent in 2015 as per which included 2,900 sets of responses received from over 300 different companies across a range of industry sectors and job grades from 20 countries. However, a corresponding rise in inflation in the region implies that pay increases in 'real terms' will be eroded in the coming year.
Interestingly, China rose to the top with a real salary increase of 5.2 per cent after allowing for inflation, trailed by Pakistan (4.5 per cent), Bangladesh (4.3 per cent), Vietnam (4.1 per cent) and Sri Lanka (3.8 per cent). India dropped down by two places to sixth position with a corresponding real increase of 3.5 per cent.
The survey said that in what is a clear indication of a positive economic sentiment, all 20 surveyed countries will witness an increase in 'regular salary reviews' in 2015 with a noteworthy reduction in the number of companies that opted for a 'salary freeze' or 'postponement' in the previous year.
"We foresee an increased economic growth in Asia Pacific in 2015 in light of a declining unemployment rate and rising GDP in the region. This, in turn, will lead to inflationary pressures that affect real salary increases. Indians will only see an effective salary increase that is one-third of the overall salary increase due to such pressures," said Sambhav Rakyan, Data Services practice leader, Asia Pacific at Towers Watson.
Across the region, the survey said that employees will have pay raises equal to or higher than last year in percentage terms, with the exception of Taiwan, where the rate of increase will drop from 2.8 per cent to 1.7 per cent after inflation.
The Towers Watson survey illustrates the challenge faced by businesses in the region as they seek to balance the effect of growing inflationary pressures and managing costs, while continuing to offer salaries sufficient to attract and retain skilled staff. "Our research demonstrates that salary continues to be the number one factor for attracting and retaining talent. As a result, a majority of employers across Asia Pacific plan to allocate a larger portion of salary budget increase to high performers," added Mr. Rakyan.
Analysing the findings by employee groups in India reveals that all employees - from production workers to executive directors - are set to have higher pay raises than last year.
The pharmaceutical sector across the region, including in India, will continue to have amongst the highest salary increases. It said that Vietnam (12 per cent), India (11.5 per cent) and China (8.9 per cent) will see the highest pay increases in this sector.
The financial services sector in India has traditionally seen higher comparative pay increases, but at a modest 10 per cent, the projected salary increase for 2015 is the same as the previous year and not as high as other sectors.
"Compensation at financial institutions has become a major concern for governments and the general public as a consequence of the recent global financial crises," said Rakyan, adding that discussions have been raised to regulate bankers' compensation, especially for those whose daily job tasks include risk taking that can have a significant financial impact on the bank.
Interestingly, Indian employees at both ends of the hierarchy - top management and blue collar staff - are likely to see the highest comparative pay increase in 2015.
In 8 out of the 10 sectors surveyed, the pay raises for Executive Directors and Senior Management in India are expected to be higher than or equal to 2014 with the Professional Services sector particularly standing out at 4.5 percent.
Monday, July 14, 2014
Blaupunkt eyeing 25% growth in India biz this year
Kochi: Blaupunkt, the world leader in car infotainment and sound, is eyeing a 25 per cent growth in its India business this year thanks to signs of revival in the auto sector.
Last year, the company had garnered a sales revenue of Rs 125 crore through its OEM and after-sales market despite the slowdown affecting OEM sales considerably. However, the company managed the situation by focussing on after-sales service, Lars Placke, CEO and Managing Director, Blaupunkt, told Business Line on the sidelines of a function.
Placke was here to inaugurate the company’s first brand shop in India at Kochi which offers the entire product portfolio.
After drop in sales in 2012-13, he said the auto sector has started picking up this year with a visible improvement in OEM sales which is expected to continue.
Today, the company is infotainment partner of choice to leading passenger car OEs, including VW, Audi, Hyundai, and Suzuki, as well as a number of commercial vehicle providers.
Referring to brand shops, he said it would not only provide a platform for Blaupunkt to display its entire range but be the part of the company’s retail expansion strategy to scale up distribution and reach across the country.
The brand shop enables Blaupunkt to get closer to the customer and the company is aiming to launch 20 more stores in main cities in the next two years. These shops would play the role of a support centre for dealers to get more information on the products rather than offering them a competition, he added.
The company, he said, is developing next generation connected car infotainment platforms that enable multimedia, navigation, smartphone integration, 3G/WiFi connectivity, android applications, CAN base vehicle diagnostics, telematics and driver assistance.
Asked why the company has chosen Kerala to set up its first brand shop, Pankaj Jagwani, Director, Blaupunkt India, said that the State is an important market in retail perspective as the customers are more familiar with high-end products, may be because of their connections with Gulf nations.
Last year, the company had garnered a sales revenue of Rs 125 crore through its OEM and after-sales market despite the slowdown affecting OEM sales considerably. However, the company managed the situation by focussing on after-sales service, Lars Placke, CEO and Managing Director, Blaupunkt, told Business Line on the sidelines of a function.
Placke was here to inaugurate the company’s first brand shop in India at Kochi which offers the entire product portfolio.
After drop in sales in 2012-13, he said the auto sector has started picking up this year with a visible improvement in OEM sales which is expected to continue.
Today, the company is infotainment partner of choice to leading passenger car OEs, including VW, Audi, Hyundai, and Suzuki, as well as a number of commercial vehicle providers.
Referring to brand shops, he said it would not only provide a platform for Blaupunkt to display its entire range but be the part of the company’s retail expansion strategy to scale up distribution and reach across the country.
The brand shop enables Blaupunkt to get closer to the customer and the company is aiming to launch 20 more stores in main cities in the next two years. These shops would play the role of a support centre for dealers to get more information on the products rather than offering them a competition, he added.
The company, he said, is developing next generation connected car infotainment platforms that enable multimedia, navigation, smartphone integration, 3G/WiFi connectivity, android applications, CAN base vehicle diagnostics, telematics and driver assistance.
Asked why the company has chosen Kerala to set up its first brand shop, Pankaj Jagwani, Director, Blaupunkt India, said that the State is an important market in retail perspective as the customers are more familiar with high-end products, may be because of their connections with Gulf nations.
HLL Lifecare ties up with Tata Memorial Centre
Thiruvananthapuram: HLL Lifecare, a Central public sector undertaking based here, has teamed up with Tata Memorial Centre for constructing a modern women and children cancer hospital at Parel in Mumbai.
The two parties signed a memorandum of understanding whereby they assigned the project management consultancy to the infrastructure development division of HLL Lifecare.
Hadron beam facility
The construction of the Rs 350-crore hospital is expected to be completed within 30 months.
The project will include a hadron beam facility, which an official spokesman said is the first of its kind in India and only the 12th in the world, that offers advanced and precise proton therapy for cancer patients.
Hadrons help irradiate cancerous tumours with lesser damage to surrounding healthy tissues than X-rays are thought to cause in conventional radiation therapy.
Hindustan Lifecare is proud to be associated with Tata Memorial Centre, a spokesman quoted M Ayyappan, Chairman and Managing Director, as saying.
Primary care
Commissioned in 1941, Tata Memorial Centre is among India’s most comprehensive centres for treatment, education, research and prevention of cancer.
It attracts around 43,000 new patients every year from all parts of India and neighbouring countries. Nearly 60 per cent of them receive primary care at the hospital; more than 70 per cent are treated almost free.
At least 1,000 patients report as out patients every day, the spokesman said.
As for HLL Lifecare, its infrastructure development and facility management division provides services in design, engineering, execution and management of healthcare facilities.
Among its clients are the central and various state governments, the National Rural Health Mission, the Employees State Insurance Corporation; Jipmer, Puducherry; medical colleges at Bangalore, Salem and Madurai; and the Kerala University of Health Sciences.
The two parties signed a memorandum of understanding whereby they assigned the project management consultancy to the infrastructure development division of HLL Lifecare.
Hadron beam facility
The construction of the Rs 350-crore hospital is expected to be completed within 30 months.
The project will include a hadron beam facility, which an official spokesman said is the first of its kind in India and only the 12th in the world, that offers advanced and precise proton therapy for cancer patients.
Hadrons help irradiate cancerous tumours with lesser damage to surrounding healthy tissues than X-rays are thought to cause in conventional radiation therapy.
Hindustan Lifecare is proud to be associated with Tata Memorial Centre, a spokesman quoted M Ayyappan, Chairman and Managing Director, as saying.
Primary care
Commissioned in 1941, Tata Memorial Centre is among India’s most comprehensive centres for treatment, education, research and prevention of cancer.
It attracts around 43,000 new patients every year from all parts of India and neighbouring countries. Nearly 60 per cent of them receive primary care at the hospital; more than 70 per cent are treated almost free.
At least 1,000 patients report as out patients every day, the spokesman said.
As for HLL Lifecare, its infrastructure development and facility management division provides services in design, engineering, execution and management of healthcare facilities.
Among its clients are the central and various state governments, the National Rural Health Mission, the Employees State Insurance Corporation; Jipmer, Puducherry; medical colleges at Bangalore, Salem and Madurai; and the Kerala University of Health Sciences.
Keys Hotels to unlock 100 properties in India by 2018
Keys Hotels, a mid-market brand of New York-based proprietary fund, Berggruen Holdings, is aggressively stepping up expansion in the country with plans to have 100 hotels by 2018, up from 36 now, as part of its growth strategy in Asia's third largest economy.
A few days back, it took over the management of Ras Resorts in Silvassa, adding 85 more rooms to its inventory of 1,500 rooms. Keys, in which its MD & CEO Sanjay Sethi too owns a significant equity stake, has been active in India since 2007.
The young hospitality company will use a mix of business models, including the management format, to ramp up the number of properties to 100 in the next five years.
A few days back, it took over the management of Ras Resorts in Silvassa, adding 85 more rooms to its inventory of 1,500 rooms. Keys, in which its MD & CEO Sanjay Sethi too owns a significant equity stake, has been active in India since 2007.
The young hospitality company will use a mix of business models, including the management format, to ramp up the number of properties to 100 in the next five years.
M&A activity in India up 47% to US$ 17.1 billion in 2014
New Delhi: India targeted mergers and acquisitions (M&A) activity registered a growth of 47.4 per cent in H1 2014 to touch US$ 17.1 billion, as compared to US$ 11.6 billion in H1 2013, according to a report by Mergermarket.
In the first quarter from January-March 2014, there were M&A transactions worth US$ 3.7 billion only while the next quarter from April-June 2014 saw deals worth US$ 13.4 billion, which accounted for 78 per cent of the total first-half deal value.
The second quarter this year was the most active quarter since the second quarter of 2012. Moreover, there was also an influx of large cap deals compared to the first quarter of this year. Diageo and Vodafone Group provided the largest deals, which resulted in impressive second quarter for inbound activities valued at around US$ 6.3 billion.
The most active sectors in the first two quarters of 2014 were the pharma, medical and biotech sectors, as they accounted for 27 per cent of market share from deals worth US$ 4.6 billion.
In spite of the fact that the industrials and chemicals sector led the industry chart in terms of number of deals, 27 in number, the deal value summed up to just around US$ 0.6 billion, which was down by 61.4 per cent over the corresponding period in the previous year.
The highlight of the first half of this year’s deals was the US$ 3.97-billion Sun Pharma-Ranbaxy deal followed by the Diageo deal where it acquired 26 per cent stake in United Spirits for US$ 3.14 billion and the Vodafone Group’s deal where it acquired 10.97 per cent stake in Vodafone India from Piramal Enterprises for a sum of US$ 1.47 billion.
Adani Ports and Special Economic Zone (APSEZ) acquiring Dhamra Port in Odisha from Tata Steel and L&T Infrastructure Development Projects (L&T IDPL) and Reliance Industries-Network 18 Media deals were some other major deals as mentioned in the report.
The report also mentioned that Citi topped the financial advisor league table by advising on five deals worth around US$ 8.2 billion, while the top position for the number of deals was clinched by EY which was a part of 13 transactions totaling around US$ 5.2 billion.
In the first quarter from January-March 2014, there were M&A transactions worth US$ 3.7 billion only while the next quarter from April-June 2014 saw deals worth US$ 13.4 billion, which accounted for 78 per cent of the total first-half deal value.
The second quarter this year was the most active quarter since the second quarter of 2012. Moreover, there was also an influx of large cap deals compared to the first quarter of this year. Diageo and Vodafone Group provided the largest deals, which resulted in impressive second quarter for inbound activities valued at around US$ 6.3 billion.
The most active sectors in the first two quarters of 2014 were the pharma, medical and biotech sectors, as they accounted for 27 per cent of market share from deals worth US$ 4.6 billion.
In spite of the fact that the industrials and chemicals sector led the industry chart in terms of number of deals, 27 in number, the deal value summed up to just around US$ 0.6 billion, which was down by 61.4 per cent over the corresponding period in the previous year.
The highlight of the first half of this year’s deals was the US$ 3.97-billion Sun Pharma-Ranbaxy deal followed by the Diageo deal where it acquired 26 per cent stake in United Spirits for US$ 3.14 billion and the Vodafone Group’s deal where it acquired 10.97 per cent stake in Vodafone India from Piramal Enterprises for a sum of US$ 1.47 billion.
Adani Ports and Special Economic Zone (APSEZ) acquiring Dhamra Port in Odisha from Tata Steel and L&T Infrastructure Development Projects (L&T IDPL) and Reliance Industries-Network 18 Media deals were some other major deals as mentioned in the report.
The report also mentioned that Citi topped the financial advisor league table by advising on five deals worth around US$ 8.2 billion, while the top position for the number of deals was clinched by EY which was a part of 13 transactions totaling around US$ 5.2 billion.
Industrial growth at 19-month high
New Delhi: Industrial production was at a 19-month high, growing 4.7 per cent in May on improved performances across sectors, including the manufacturing, mining and power sectors.
A low base also helped push up the growth figures as industrial production in May 2013 had contracted by 2.5 per cent.
The Index of Industrial Production (IIP) for the April-May period grew 4 per cent over the comparable period last year, according to data released by the Central Statistics Office on Friday.
In April-May 2013 the IIP had contracted by 0.5 per cent. Basic goods, capital goods and consumer goods also posted growth under the use-based classification of industrial performance.
“The rise in industrial production for the second month in a row provides a glimmer of hope that the economy could be bottoming out and recovery could be on the anvil,” CII Director-General Chandrajit Banerjee said.
A low base also helped push up the growth figures as industrial production in May 2013 had contracted by 2.5 per cent.
The Index of Industrial Production (IIP) for the April-May period grew 4 per cent over the comparable period last year, according to data released by the Central Statistics Office on Friday.
In April-May 2013 the IIP had contracted by 0.5 per cent. Basic goods, capital goods and consumer goods also posted growth under the use-based classification of industrial performance.
“The rise in industrial production for the second month in a row provides a glimmer of hope that the economy could be bottoming out and recovery could be on the anvil,” CII Director-General Chandrajit Banerjee said.
Essar Global arm inks pact with Teleperformance
Mumbai: AGC Holdings Ltd, a wholly-owned portfolio company of Essar Global Fund Ltd, has signed an agreement with Teleperformance to sell its outsourcing company Aegis US for $610 million. The company will sell Aegis’s presence in the US, the Philippines and Costa Rica.
It will continue to retain the remainder of the BPO business globally across India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and UK (other than in the US, the Philippines and Costa Rica).
“This transaction fits the strategic objectives of Essar Fund in the rapidly growing high quality assets and delivering value creation, in this case through a sale to a high quality strategic player in Teleperformance. This transaction will also yield many synergies and benefits for Aegis’ employees and esteemed customers,” said Uday Gujadhur, Board Member, Essar Capital, fund manager for Essar Global Fund.
The transaction is expected to close during the third quarter of 2014, subject to regulatory approvals and other customary closing conditions. The transaction is not subject to a financing condition.
Post the transaction, Aegis would have operations in 37 locations across 9 countries with more than 37,000 employees.
Aegis US has revenues of about $400 million and has more than 19,000 full-time employees across 16 centres in three countries. It serves premium clients in the US market in various key growing industries such as healthcare, financial services, travel and hospitality.
It will continue to retain the remainder of the BPO business globally across India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and UK (other than in the US, the Philippines and Costa Rica).
“This transaction fits the strategic objectives of Essar Fund in the rapidly growing high quality assets and delivering value creation, in this case through a sale to a high quality strategic player in Teleperformance. This transaction will also yield many synergies and benefits for Aegis’ employees and esteemed customers,” said Uday Gujadhur, Board Member, Essar Capital, fund manager for Essar Global Fund.
The transaction is expected to close during the third quarter of 2014, subject to regulatory approvals and other customary closing conditions. The transaction is not subject to a financing condition.
Post the transaction, Aegis would have operations in 37 locations across 9 countries with more than 37,000 employees.
Aegis US has revenues of about $400 million and has more than 19,000 full-time employees across 16 centres in three countries. It serves premium clients in the US market in various key growing industries such as healthcare, financial services, travel and hospitality.
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