Outsourcing News

Reliance Industries (RIL), India’s biggest private sector company with large retail interests, will buy into an air cargo firm promoted by Capt GR Gopinath in an attempt to gain an edge over its rivals in the rapid movement of goods across the country. Reliance will buy a controlling stake in Deccan 360 for an undisclosed amount and will get the right to appoint two members on the board. Deccan owns eight aircraft and transports express and normal cargo to about 50 cities which it wants to increase to 100 cities in 12-18 months. It also has a fleet of 1,000 branded vehicles for its economy cargo sector where it transfers bulk cargo over roads. RIL, which is expanding its retail presence, wants a dedicated cargo service that can fly to several destinations and deliver goods quickly.

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RIL picks up majority stake in Deccan 360

Shying away from risking their capital in small and medium enterprises (SMEs) in the wake of the economic slowdown, Private equity (PE) investment in the SME sector dipped to USD 580 million in 2009, down about 68 percent year-on-year. PE investment in the SME sector last calendar year stood at USD 580 million via 81 deals against USD 1,812 million through 187 deals in 2008, a study by industry body ASSOCHAM said.

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Risk factor dips PE investment in SMEs to 68% in ’09

Business Financial Newswire – Investment company Brainspark is taking a 299% stake in Indian Restaurants Group. Brainspark is subscribing for 5,578,994 new ordinary shares for £139,474.85 – 2.5p per share. IRG currently operates three Indian restaurants in the UK and recently opened a restaurant branded in Mela which is situated in Redhill, Surrey.

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Brainspark takes 29.9% stake in Indian Restaurants Group

It’s ironic that the best businesses did not spend a fortune in franchise fees, hire a huge staff, or even start with venture capital funds. Start on your own, and outsource later. While outsourcing labor may prove a much easier time for you as a small business owner, it will also add additional costs that you may not yet have the money to pay for. Almost all of us know that starting a small business can be fun, exciting and thrilling, however it can also be downright scary. The owners of any beginning small business know the meaning of bootstrapping; keep every penny, Brought to you by: Southern California Tech Central

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Bootstrapping: How Cutting Down May Be the Key to A Successful Small Business

In spite of eroding confidence of private equity (PE) firms during the global downturn, a clutch of big global names, who till now were not confident about India, have taken the plunge into Indian markets. These big PE players, such as Quadrangle Capital, Appollo Management, TA Associates, Summit Partners and Bain Capital, have done a deal for the first time in India, marking their entry into one of the fastest growing emerging markets.

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PE majors plunge into Indian market

Diversified group Videocon Industries on Wednesday said it may sell up to 26 per cent stake in the company to foreign players. Many foreign companies are eyeing a stake in us….We may dilute a stake of up to 26 per cent,” Videocon Industries Chief Venugopal Dhoot told reporters here. Asked by when a stake dilution can take place, he said, “As soon as we get a good valuation we will do that.” He said the company’s valuation, which is currently at Rs 12,000 crore, may go up further considering the rapid expansion it has undertaken. Group company Videocon Mobiles recently started its services in Tamil Nadu, Gujarat and Mumbai circles.

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Videocon may sell 26% stake to foreign players

Zee Entertainment Enterprises Ltd (Zeel) has acquired 32.2 per cent stake in Taj TV Mauritius for an investment of $31 million during the financial year ended 31 March 2010, taking its total holding in the company to 82.2 per cent. Zeel will make the additional purchase of 12.8 per cent for $13.14 million, according to the company’s corporate strategy, planning and business development head Atul Das. The holding in Taj TV Mauritius will be through a newly floated company, Zee Sports International, a subsidiary of Zeel. Zee Sports International will finally hold 95 per cent stake in Taj TV Limited Mauritius and 100 per cent stake in Taj Television (India), paying the Bukhatir Group a total consideration of $44.145 million.

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Zeel ups stake in Ten Sports to 82.2%, to add 12.8%

The door was to open for attractive equity deals soon after the completion of the third edition of the Indian Premier League (IPL).“Deals will take time now. We are not looking at selling stake,” said Kings XI Punjab co-owner and Dabur India Ltd. director Mohit Burman.Equity deals are expected to halt till the mud-slinging phase is over and the air clears on several controversial issues. “Nobody wants to put money into something that may not be clean. Till the issues do not get resolved, people may wait before making stake acquisitions,” said an investment banker on request of anonymity.Investment bankers feel a prudent approach will be to wait longer for valuations to climb as controversies die down.

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IPL Equity deals to halt till dust clears

Global private equity (PE) firm Carlyle Group is planning to invest around $850 million (around Rs 3,750 crore) in India in the near future, according to the fund. It has raised $2.55 billion under Carlyle Asia Partners (CAP) III Fund from international investors to invest in the Asia-Pacific region, excluding Japan. One- third of the amount is proposed to be invested in India. The size of the last CAP fund for the region was $1.8 billion, of which $600 million was put in housing finance company HDFC in 2007.

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Carlyle Group to invest $850 mn in India soon

According to a joint Paper brought out by Deloitte and ASSOCHAM, more than 80% private equity investment is likely in healthcare, education and clean energy in future as these 3 sectors are emerging as most favoured ones for PEs investors in India. Dr Swati Piramal president of ASSOCHAM pointed out that the Government of India has been laying substantial focus to build these sectors through public-private partnership projects across the country with a view to providing quality services in these three key areas of economic activities. PEs investment in these sectors suits their investors the most as the aforesaid areas assured return on investments for a period exceeding 5 years, pointed out joint findings of Deloitte and ASSOCHAM Paper.

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Private equity investment in clean energy to exceed by 80pct

The Canada Pension Plan Investment Board (CPPIB) has made its first investment in an India-focused private equity fund. The pension fund investor agreed to commit up to $100m to the fund managed by India’s Multiples Alternate Asset Management, set up by former ICICI Venture managing director Renuka Ramnath less than a year ago. Multiples said the CPPIB was one of the key investors in the domestic and international fund, reflecting pension funds growing appetite for emerging markets private equity funds. The firm has announced a first close of its first private equity product at $250m

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CPPIB invests US$100m in India fund

Tourism Finance Corporation of India (TFCI) is planning to tap private equity firms for its equity expansion as it seeks to finance large infrastructure projects and has ruled out plans to launch a follow-on public offering (FPO) soon. “Based on my profitability statement, I will try to raise further capital, whe-ther from promoters or from other sources. Private equity would be one of the options,” Archana Capoor, chairman and managing director of TFCI, told FC. “I am not thinking of an FPO right now. We would like to improve out earnings per share (EPS), which stands at Rs 3.6, and then consider going to the public again,” she said.

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TFCI eyes private equity, has no FPO plan for now

Domestic real estate-specific private equity funds have started raising money after a hiatus as developers are finding it difficult to tap the capital markets through initial public offerings. Indiareit, a real estate private equity fund promoted by Ajay Piramal group, is raising Rs 700 crore in the domestic market. The fund is looking at projects in major cities such as Mumbai, Bangalore and Pune and the investments would be made in other developers’ projects and not in the company’s real estate firm. Ramesh Jogani, managing director and CEO, Indiareit, said, “The fund will be subscribed by June and its duration is 7 years.” Jogani plans to invest 30% from this new fund in projects this year itself, with 20% in the initial-stage projects and 10% in the later-stage projects. The fund is targeting an internal rate of return of 25%.

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Realty private equities start raising money again

SA des Ciments Vicat, the French cement major, has sealed an agreement for acquiring 51% in Bharathi Cement, it told the NYSE. DNA first broke the story on April 16 that Vicat is acquiring Bharathi Cement, which is owned by Y S Jagan Mohan Reddy, a Member of Parliament from Kadapa and son of former Andhra Pradesh chief minister Y S Rajasekhara Reddy. The company will finance the acquisition through debt. Though Vicat has not disclosed any valuation, an investment banking source said the deal, to be priced around $200 per tonne, at Bharathi’s current capacity of 2.5 million tonne, could cost $500 million.

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France’s Vicat buys 51% in Bharathi Cem

Kidswear maker and retailer Lilliput today said it will sell an undisclosed stake to private equity firm TPG Growth for around Rs 115 crore. This will be second time the capital-based retail player dilutes stake within a week after agreeing to sell 31 per cent stake for around Rs 270 crore to private equity player Bain capital. The company said one of its old stakeholders, Everstone Capital, will be exiting the company. Everstone had held an undisclosed stake in Lilliput since 2006.

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Lilliput to sell stake to TPG Growth for 115 cr

Is China SAFE for Private Equity Investors? China Venture News International private equity firms, like gold prospectors, continue to invest in China, reflecting the same gold rush mentality that often results in high-stakes risks for all. The influx of new money …

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Seen that? – Is China SAFE for Private Equity Investors?

Asia-focused private equity firm New Silk Route said Monday it has invested INR3.60 billion for an undisclosed stake in Coffee Day Resorts. “The Coffee Day Group…is emerging as an attractive aggregation of businesses in a variety of consumption and infrastructure sectors,” New Silk Route’s founding general partner and chief executive, Parag Saxena, said in a statement. Saxena will join the board of Coffee Day Resorts, the statement said.

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New Silk Route Invests INR3.6 Billion In Coffee Day Resorts

GMR Group is planning to raise $100 million in private equity for its power business, apart from $515 million it collected this month, reports say, quoting a top official. Bengaluru-based GMR is discussing with firms for the additional funding and hopes to clinch the deal by next month-end, Group Chief Financial Officer Subbarao Amarthaluru said.

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GMR To Raise $100 Mln. Via Private Equity Deal

Paris-based Vicat has announced an agreement with Y S Jagan Mohan Reddy and other shareholders to acquire 51% stake in Bharati Cement. According to a release issued by Vicat today, Bharati Cement operates a cement plant of two lines in Andhra Pradesh that will reach a total annual capacity of five million tonne at the end of 2010. Y S Jagan Mohan Reddy, an MP, is the son of former Andhra Chief Minister Y S Rajasekhara Reddy who died in an air crash last year.

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Vicat to buy 51% stake in Bharati Cement

Mumbai-based construction and engineering firm, Larsen & Turbo is planning to launch a US$300 million private equity fund to invest in power and road projects in India, Bloomberg reported. Quoting the company’s Senior Vice President for Financial Services N Sivaraman, the newswire said the infrastructure major will invest this fund in companies outside L&T. The firm is leaned to be looking for a Singapore-based partner to invest in the fund besides putting in some money from its own.

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L&T to launch US$300 million infra fund