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February 25, 2011

Snapshots: APEX'11 Summit; Feb 10, Mumbai

India's Premier Investor/Entrepreneur Interface




Raj Kondur of Ascent Capital speaking as part of the Inaugural Panel: "Private Equity: The Road Ahead"

Raj Kondur, Director, Ascent Capital, said that his firm looks forward to deploying $150 million in the next 18 months. Ascent is looking to invest in both companies that serve the Indian market as well as companies as that leverage India's strength to service the global market. While the long term India story remains powerful, we cannot take it for granted, Kondur said. In response to a question, Kondur said one of the key concerns of international investors in Indian PE/VC firms is the poor level of governance in the country.

The inaugural panel was followed by special panel discussions on the following sectors: Cleantech, Logistics and Real Estate.



Manish Saigal of KPMG speaking as part of the Logistics & Transportation Panel


Manish Saigal, Partner, KPMG, pointed out that over the last two years, those businesses which had service orientation to domestic trade demonstrated much higher resilience. Commenting on the infrastructure space, Saigal said that Indian ports operate at 90% to 150% utilization levels; average road carries 150% load; rail network on specific routes is congested to the extent of 250%. All these create significant downstream opportunities for players. He predicted that the introduction of Goods and Services Tax (GST) would transform the logistics industry.



Real Estate sector panel chair Jay Jegannathan of Abner Capital greets Prem Rajani of Rajani Associates (Right), as P. S. Jayakumar of VBHC watches on.


Prem Rajani, Managing Partner of law firm Rajani Associates, advised private equity investors to consider location, title and execution as the key factors for decisions. The regulatory framework poses real challenges for investors, he said, given the practice of governments to look at the sector for making up for revenue shortfalls. Explaining the attractiveness of SPVs for investors, Rajani said it is seen as ring fencing mechanism for income, and possibilities to mitigate the impact of failure. He warned that exits in this space are fraught with difficulties and advised promoters to commit to only what they can really deliver.

To view more pictures from the APEX'11 Summit, Click Here

To view videos of the various panel discussions, Click Here

A more detailed Event Summary is available at http://ventureintelligence.in/apex11-summit.htm

Snapshots: APEX'11 Awards - Top Advisors

Among corporate law firms, AZB & Partners topped the Venture Intelligence League Tables as the Most Active Legal Advisor (for both Private Equity and M&A transactions) in 2010.



Behram Vakil of AZB & Partners receiving the Most Active Legal Advisor - 2010 Award



Mayank Rastogi of Ernst & Young receiving the Most Active Transaction Advisor - 2010 Award

The Venture Intelligence APEX Awards are the first awards of its kind for Private Equity & Venture Capital funds in India as well as related advisory firms. The Most Active Advisor Awards are awarded to the toppers of the Venture Intelligence League Tables for the corresponding year. The League Tables (http://www.ventureintelligence.in/league.htm) are based on the volume of PE and M&A transactions advised by the Transaction Advisory and Legal Advisory firms during the calendar year.

To view more pictures from APEX'11 Awards, Click Here

To view videos of the PE/VC Awards, Click Here

A more detailed Event Summary is available at http://ventureintelligence.in/apex11-awards.htm

Snapshots: APEX'11 Awards - Top PE/VC Funds



Satish Mandhana of IDFC PE receiving the Best PE Investor - 2010 Award from Mr. Gurcharan Das

The latest award represents the second time that IDFC PE is receiving the APEX Awards, having earlier won the awards for 2006. Accepting the "Best Private Equity Investor-2010" Award on behalf of IDFC PE, Satish Mandhana, Managing Partner, said "At the time we had received this award in early 2007, IDFC was unique in terms of being a specialized infrastructure sector investor. The latest award, which is in the general PE category, is very satisfying in that it not only recognises our positioning of being a PE player in infra sector but also validates that returns in this sector can compare quite favorably across the PE asset class."



Seedfund Team Members receiving the Best Early Stage Investor - 2010 Award

Receiving the "Best Early Stage Investor-2010" Award, Pravin Gandhi, Partner, Seedfund said, "We are very pleased to receive this award. The performance of our portfolio companies has amply validated our belief that small is not only beautiful, but also sustainable and scalable. With Seedfund1 having now grown into Seedfund2, we look forward to continue backing passionate entrepreneurs pursuing truly innovative business models."

Started in 2007, the Venture Intelligence APEX Awards are the first awards of its kind for Private Equity & Venture Capital funds in India as well as related advisory firms. A key feature about the APEX Fund Awards is that the awardees are chosen by a Jury Panel consisting exclusively of Limited Partners (i.e., investors in PE/VC funds). The jury members for the APEX'11 Fund Awards included executives from Adams Street Partners, Asia Alternatives, Evolvence India Fund, Hermes GPE, IDFC Capital, Morgan Creek Capital, Pantheon Ventures, Religare Global Asset Management, Siguler Guff and Squadron Capital.

To view more pictures from APEX'11 Awards, Click Here

To view videos of the PE/VC Awards, Click Here

A more detailed Event Summary is available at http://ventureintelligence.in/apex11-awards.htm

Snapshots: APEX'11 Awards - Feb. 9, Mumbai



Speech by Chief Guest Gurcharan Das

Describing himself as a cheer leader of the PE industry, noted author and former-CEO of P&G India Gurcharan Das said he probably learnt more from his association with PE industry than from any other business segment. Borrowing an analogy from Professor David Birch of MIT, Das classified companies into "elephants, mice and gazelles". Gazelles start small and grow extremely rapidly through innovation. More often than not, they create huge new industries on their way to success, he said.



High Power PE/VC Panel chaired by Paresh Vaish, Managing Director, Alvarez & Marsal India, featuring Vinod Dham, Managing Director, IndoUS Ventures; A.K.Purwar, Chairman, IndiaVenture and P.R. Srinivasan, Managing Director, Exponentia Capital

To view more pictures from APEX'11 Awards, Click Here

To view videos of the PE/VC Panel and the speech by Gurcharan Das, Click Here

A more detailed Event Summary is available at http://ventureintelligence.in/apex11-awards.htm

February 22, 2011

Deal Alert: StanChart PE invests Rs 46-Cr in Innoventive Industries Ltd



Edited Extracts from Press Release:

Standard Chartered Private Equity (“SCPE”) has invested Rs. 460 million in Innoventive Industries Limited,(“Company”) a multi-product engineering company based in Pune, India. The investment includes a primary infusion of Rs. 304 Million into the Company as part of the Pre-IPO investment. This funding will part finance the expansion of the Company’s existing precision steel tube manufacturing facilities at Pune. With this investment, SCPE’s equity stake in Innoventive Industries Limited will be 10.14 percent.

Innoventive is a multi-product engineering company focused on precision steel tubes and value added steel products (including boiler steel strips) and oil well couplings (through its subsidiary). The Company’s product range find application in diverse industrial sectors including transportation, oil & gas, power, farm equipments and general engineering.

Rahul Raisurana, Managing Director, Standard Chartered Private Equity, said, "We are delighted to invest in Innoventive Industries Limited. The precision tubes, tubular products and related spaces present significant growth prospects. We have found Innoventive Industries to be the right partner because of its focus on product and process, a key differentiator for the Company."

For more information on Standard Chartered, please visit www.standardchartered.com

February 05, 2011

“Private Equity-backed cos. outperform their peers”: Study

PE/VC-backed companies fare better in terms of growth in sales, profitability, wages, exports and R&D investments, a study by Venture Intelligence shows.

According to a new study by Venture Intelligence, a leading research firm focussed on Private Equity and M&A activity in India, PE- and VC-backed companies are growing significantly faster compared to their non Private Equity-backed peers as well as market indices like the Sensex, Nifty and CNX Midcap.

The Venture Intelligence Private Equity Impact report also shows that profitability, wages, exports and R&D investments at PE/VC-backed companies are growing at a significantly higher rate compared to their peers which are not PE-backed.

 Sales at publicly-listed PE-backed companies demonstrated a CAGR of 25% over the ten year period 2000-2010, a significantly higher rate compared to the 15.1% at non PE-backed listed firms, 17.9% at Nifty Index companies. 19.2% at Sensex companies and 15.3% at CNX Midcap companies.

 PE-backed companies showed 31.5% growth in Profit-After-Tax, significantly higher than non-PE backed companies (22%), Nifty (23%), Sensex (21%) and CNX Midcap (22%).

 Wage bill at publicly-listed PE-backed companies grew at 26.4% over the ten year period, a rate of increase greater than that of non PE-backed listed firms (13.9%) and also that at the major indices – Nifty (18%), Sensex (19.4%) and CNX Midcap (13.8%).

 While the growth rate of exports at PE-backed companies (at 27%) lags that of large cap companies, it is still higher than that at non PE-backed companies (23%) and Midcap companies (25%).

 Growth in R&D investments at PE-backed companies (at 30.6%) is significantly higher than that at their non PE-backed counterparts (20%) and also higher when compared to the major indices – Nifty (25.8%), Sensex (26.1%) and CNX Midcap (27.2%).

The report also features case studies of successful PE/VC-backed companies showing how these organizations benefited from PE/VC investments. “The common thread that emerges from the study is that Private Equity / Venture Capital investment, when chosen and leveraged well, can help Indian companies scale up rapidly and accelerate growth in several ways that add significant value to the Indian Economy,” said Arun Natarajan, CEO of Venture Intelligence. “The case studies in the report demonstrate how PE and VC firms are forging active partnerships with their investee companies to improve capital efficiency, business strategy and corporate governance, besides opening up new markets.”

The Private Equity Impact study, first conducted in 2007, measures the impact of PE and VC funds on the Indian economy using quantitative and qualitative methods – the only such initiative in India. This year, again with advice and guidance from Prof. Amit Bubna of the Indian School of Business-Hyderabad, the study revisited the theme of comparing PE- and VC-backed companies vis-à-vis their non PE/VC-backed peers using quantitative parameters.

The full report can be downloaded from http://ventureintelligence.in/peimpact.htm