Four-S Services Private Equity Track.

1. Four-S Private Equity Track…
Issue: 2nd – 8th April, 2012 …… Your Eye to Indian Private Equity
PE activity for the week
250.0 16
During the week ended 8th April, 2012, there were 7 PE/VC deals 217.0
14
worth $217mn compared to 12 deals worth $39.7mn in the 200.0 12
previous week. 150.0 10
12 7
8
Out of the total, there were 3 growth stage deals, 2 early stage 100.0 6
39.7 4
deals and 1 deal each at Late and PIPE level. 50.0
2
0.0 0
In the largest deal during the week, Advent International invested
1st April'12 8th April'12
$105mn in CARE Hospitals.
PE Investments No. of Deals
Private Equity: Investment Summary during the week
Stake Value
Investor (s) Target (%) ($mn) Sector Industry Segment Stage
Health
Advent International CARE Hospitals NA 105.0 Services Hospitals Late
Services
Personal
GIC, Baring PE Marico 4.5 100.0 Manufacturing FMCG PIPE
Product
India Agri Business Super Agri Seeds Pvt. Food &
NA 9.8 Manufacturing Food Products Growth
Fund Ltd Beverage
Accel Partners,
Blume Ventures and HMS Infotech Pvt Ltd NA 1.2 Services IT/ITeS Software Early
Mumbai Angels
Inventus Capital Savaari Car Rentals Pvt Other Misc.
NA 1.0 Services Car rental Early
Partners Ltd services
ASK Property Godrej Landmark
49 NA Construction Real estate Real Estate Growth
Investment Advisors Redevelopers
TA Associates BillDesk NA NA Services BFSI Online payment Growth
Source: Four-S PE Database
Advent International invests $105mn in CARE Healthcare is touted to be one of the most active sectors for
Hospitals PE deals this year. The year so far has seen 9 deals worth
Advent International Corp. has invested $105mn in the $406mn including 2 $100mn deals – GIC’s $100mn
Hyderabad-based hospital chain CARE Hospitals Pvt. Ltd. the investment in Vasan Healthcare, which operates eye care
company plans to increase the bed capacity to 2,600 from hospitals and Olympus Capital’s $100mn in DM Healthcare
the current 1,600 and get into new specialties, including Pvt. Ltd. PE investors feel healthcare is attractive as national
oncology. CARE, with 12 hospitals and focus on smaller brands are yet to be created in smaller cities. Further, exits
cities, has a presence in Bhubaneswar, Secunderabad, are not expected to be issues for investors as big brands are
Nagpur, Surat and Visakhapatnam. The chain, founded in very acquisitive. These companies would like to take over an
1997, is estimated to have a revenue of at least Rs. 5bn. established business than starting all over again in a new
segment or geography.
Four-S Comment: This deal is one of the largest private
equity deals in the healthcare sector in the last five years. GIC, Baring buy Marico’s stake
Indian Private Equity Weekly Update
2nd – 8th April, 2012

2. Singapore’s sovereign wealth fund GIC and Baring Private HMS Infotech Pvt Ltd, a technology startup offering Cloud-
Equity Partners India are investing ~$100mn in public listed based SaaS (Software as a Service) solutions for small and
consumer products company Marico Ltd. GIC is investing mid-sized hospitality industry, has raised $1.2mn in a
$75mn for 3.4% stake and Baring India PE is putting in funding round led by venture capital firm Accel Partners.
another $25mn) for 1.1% in the firm. Blume Ventures and Mumbai Angels also took part in the
round. The company will use the funds to gain further
Four-S Comment: The deal comes two months after the foothold in the global market. It already has customers in
firm announced it would buy personal care brands such as 40-plus countries and will now focus on making inroads in
Set Wet, Zatak and Livon among others, from Reckitt the North and South American markets.
Benckiser. This investment will help Marico fund its
acquisitions. These brands in Reckitt’s personal care Four-S Comment: Accel Partners has been making a lot of
products portfolio are among the top three positions in the bets on SaaS and Cloud-related companies in India. Only last
hair gel, male deodorant and leave-on hair serum week, it invested $2.8mn in Enterprise Nube Services Pvt
categories. This acquisition gives Marico a strong presence Ltd, which provides Cloud solutions for companies in
in the rapidly growing deodorant and male grooming marketing, sales and customer service domains. In another
categories in India. And it will further reduce Marico’s such deal, the VC firm put in $1mn in SaaS-based social
dependence on edibles oils and hair oils. customer support startup Freshdesk.
India Agri Business Fund invests in Super Agri Seeds Savaari Car Rentals raises $1mn from Inventus
India Agri Business Fund has invested Rs 500mn in Capital Partners
Hyderabad-based Super Agri Seeds Pvt Ltd. Super Agri Savaari Car Rentals Pvt Ltd, a company offering chauffeur-
markets about 140 hybrids and varietal seeds under the driven car rental services online, has raised series A funding
‘Super Seeds’ brand, mainly in the Andhra Pradesh and of $1mn from Inventus Capital Partners. Bangalore-
Uttar Pradesh markets. The company, with strengths in headquartered Savaari operates across the country
cotton, corn, rice and vegetable, has lined up 60-62 new (excluding the North East region). The capital raised will be
hybrid products in the next two years. The company will use used to scale up its marketing team and grow its business
the funds to finance its expansion and set up Research and across cities by establishing a robust sales network.
development centres in Hyderabad and in Bangalore. Additionally, Savaari will invest in technology solutions for
enhancing customer experience. Savaari has grown to a
Four-S Comment: India Agri Business Fund is a $120mn network of over 100 operators across 60 cities in India. It
fund instituted in 2008 for which Rabo Equity Advisors is an targets corporate and retail users, as well as online travel
investment advisor. About 65% of the fund has already agents whose clients mostly opt for day trips, multi-day
been invested across 8 agri-business entities wherein this is tours and also multi-city trips.
a first investment in a seed company. The fund has invested
in Geepee Agri Pvt Ltd, Sri Biotech Laboratories, LT Foods ASK Properties to acquire 49% in Godrej Properties'
and Daawat, among others. Rabo Equity is gearing up to
redevelopment project
raise money for its India Agri Business Fund II. The fund is
ASK Property Investment Advisors is acquiring a 49% stake
estimated to be of about $250mn.
in Godrej Landmark Redevelopers, a subsidiary of Godrej
Properties. Godrej Landmark Redevelopers has entered into
Hospitality SaaS Solutions Firm gets $1.2mn from a tripartite agreement with Kamla Landmarc Property
Accel Partners, Others Leasing and Finance Pvt Ltd and 18 societies to undertake a
residential redevelopment project in Sahakar Nagar,
Indian Private Equity Weekly Update
2nd – 8th April, 2012

3. Chembur, Mumbai. The project, spread over approximately investment in IT services firm MindTree Ltd for Rs 900mn
14,600 mtrs will offer 600,000 sq.ft of saleable area and is ($18mn). The venture capital firm invested Rs 236.8mn in
proposed to developed as a modern group housing MindTree at Rs 41 per share when MindTree raised its first
residential project comprising of 2,2.5 and 3 BHK round of funding in 2000. In the latest round of exit, it sold
apartments. the shares at Rs 496.23 a unit, translating into 12x return on
its original investment.
TA Associates acquires minority stake in BillDesk
PE investor TA Associates has acquired a minority stake in e- Pragati India Fund reaches first close at $70mn
payment processing services provider BillDesk (part of Pragati India Fund, a sector-agnostic private equity fund
IndiaIdeas.com Ltd) for an undisclosed amount. BillDesk which is targeting to invest in economically underdeveloped
offers online payment services for utility bills, credit card, and low-income states of India, has reached the first close
depository account charges and ISP charges. Financial of $70mn for its maiden fund with a target of $100mn. The
investors in BillDesk include Clearstone Venture Partners fund has received commitments of $20mn from
and SBI besides early investors in the company Bank of International Finance Corporation (IFC) and $50mn from
Baroda and National Venture Fund for Software & IT Commonwealth Development Corporation. A sector-
Industry. As of August 2011, the company had 45 banks and agnostic fund, Pragati will primarily invest in areas like
financial institutions as its clients, as well as 250-300 large healthcare, ancillary infrastructure services, ancillary oil and
billers (all major telecom operators), around 20 electricity gas services, manufacturing and education in low-income
companies, 30 insurance firms, key travel companies and states such as Bihar, Jharkhand, Uttar Pradesh, Madhya
large, pure play e-commerce platforms. Pradesh, Chhattisgarh and Orissa.
Fund Raising & Liquidity Events IFC may invest in BanyanTree Capital’s second fund
IFC, the private sector investment arm of World Bank, may
invest up to $25mn in the second fund being raised by
BanyanTree Capital Advisors Ltd. BanyanTree Growth
Capital II targets $150-175mn to make structured
investments in small and medium enterprises (SMEs) in
India. BanyanTree’s maiden fund was anchored by FMO and
Warburg Pincus sells 3.7% in Max India DEG, the development financial institutions of the
Warburg Pincus has part-exited from its eight-year-old Netherlands and Germany, respectively. BanyanTree
investment in the diversified company Max India, which focuses on neglected sectors/themes like manufacturing
houses insurance and healthcare businesses of Analjit Singh. and niche industrial segments that get amply reflected in its
The PE firm sold 3.7% stake for $33.5mn (Rs 1.7bn). portfolio. Its investments are usually hybrid capital or
Warburg Pincus held a little less than 6% stake in Max India mezzanine, which typically ensures a 3x return while
as of December 1, 2011, and its remaining stake is valued at offering limited dilution to promoters. This asset class is
around Rs 1bn. The stake was sold by Warburg through its witnessing rising interest from investors.
entity Parkville Holdings Ltd, at a price of Rs 180 per share,
which gave the PE firm a return of 4.5x. Anish Modi, Sumit Chandwani float $300mn Fund
Former ICICI executive director Sumit Chandwani and
Walden sells 4.5% in MindTree erstwhile India head of Hong Kongbased sweat fund ADM
Venture capital firm Walden International has sold almost Capital Anish Modi will start operations of the $300mn fund
half of its remaining 9.8% stake in its nearly decade-old called Arth Capital from an office in Nariman Point this
Indian Private Equity Weekly Update
2nd – 8th April, 2012

4. month. The new private equity venture will mainly invest in Financial investors, including Anil Ambani's Reliance Capital,
companies belonging to sectors such as manufacturing, are pushing for an exit from homegrown kidswear retailer
engineering, life sciences and healthcare and consumer Gini & Jony, possibly leading to a strategic sale of the
services. company which went through a corporate debt
restructuring (CDR) last year. Strategic buyers such as
Private Equity and M&A News Arvind and Madura Fashion & Lifestyle were approached
with a proposal to offload 70% stake for Rs 3.5bn, as per
New Silk Route sets aside $100mn for platform news reports. But these talks fell through due to a valuation
deals in F&B space mismatch, even as PE investors don't seem bullish about the
New Silk Route has set aside $100mn (Rs 5bn) to invest in a sector following the recent collapse of Lilliput Kidswear and
portfolio of four food and beverage firms by crafting a Avigo Capital Partners's troubled buyout of Spykar Jeans.
model that has never before been implemented in India.
The investments will be channeled through a holding firm IPO, Other Offerings
that will take a controlling stake of 51% in mid-sized
promoter-led firms in an initiative that has been informally Ace Tours to raise funds for expansion
termed 'Project Gastronomy'. Promoters will be asked to Surat based Ace Tour Worldwide Limited is planning to raise
cede control of accounting, human resource management IPO through issue of 8.1mn shares by diluting 52.88% stake
and project management in return for fresh capital and in the company. The funds raised will be used to set up
handholding to expand their firms both in India and service apartment facility at Surat; to upgrade the hardware
overseas. and software facilities for web portal; for brand building
exercise and for working capital requirement. Promoted by
Tata Capital enters fray for Thomas Cook Raju Choksi, Bharat Choksi, Jayesh Choksi and Mayank
Tata Capital, the financial arm of the Tata Group, is the Choksi, Ace Tours provides travel services. The company has
latest contender in the race for a buyout of Thomas Cook branch offices in Mumbai, Ahmedabad and Rajkot.
India. Private equity investors Kohlberg Kravis Roberts
Executive Tracking
(KKR), Carlyle, and Travelex are among the known
bidders.Thomas Cook Group PLC is in the process of selling
its 77.1% shareholding in Thomas Cook (India) Ltd (TCIL). Avigo’s Girija Tripathy quits, to start own fund
Barely five months after joining the private equity firm
HSBC PE, ePlanet to exit Trivitron Avigo Capital as a Partner, Girija Tripathy has left the
HSBC Private Equity and ePlanet Capital are planning to sell company. He is now planning to start a mid-market-focused
their stake in Chennai-based medical diagnostics firm buyout fund and looking for investors to partner with.
Trivitron Healthcare. Both PE firms had invested close to Tripathy had joined Avigo in October last year from Singhi
$11mn in Trivitron Healthcare in 2007, picking up minority Advisors Ltd, a boutique investment bank.
stake in the company. Trivitron Healthcare is one of India's
largest medical technology company, involved in designing Fullerton Elevates Rajnish Kumar as CEO
and manufacturing of medical devices. Equity broking and wealth management company Fullerton
Securities & Wealth Advisors has elevated its executive vice-
Gini & Jony eyes stake sale as Reliance Capital president Rajnish Kumar as chief executive officer. In his
pushes for exit new role, Kumar will be responsible for strengthening the
wealth management business and defining its strategy in
the Indian market.
Indian Private Equity Weekly Update
2nd – 8th April, 2012

5. M&A Activities
During the week ended 8th April, 2012, there were 10 M&A deals worth $57.84mn
(size of 6 deals were not known). In the biggest deal during the week, Tirupur-based PGC Textiles Ltd is
buying out the 14% stake it does not own in the Swiss apparel firm Switcher for $30mn.
M&A Activity: Summary during the week
Stake Deal value ($
Acquirer Target Target business (%) mn)
PGC Textiles Ltd Switcher Manufacturing-textile 14 30
Absotherm Facility Management
OCS Group Facility management 51 24.5
Services Pvt Ltd
Kajaria Ceramics Vennar Ceramics Manufacturing-tiles 51 2.68
Tyroo Media DGM India Media & Entertainment 100 0.66
Jasper Infotech eSportsBuy.com Ecommerce NA NA
Larsen & Toubro Ltd Thalest Group Engineering NA NA
Jagran Prakashan NaiDunia Media Pvt Ltd Media & Entertainment NA NA
Bajaj Auto KTM Power Sports Manufacturing-auto 6.3 NA
Gerresheimer AG Neutral Glass & Allied Industries Manufacturing NA NA
Alchemist Asset Reconstruction
DMI Finance BFSI NA NA
Company
Source: Four-S Database, Acquisition price is in $mn
Indian Private Equity Weekly Update
2nd – 8th April, 2012

6. Market Update
Key Domestic Indices
Indian Market Movements 52 Week
Index 30-Mar-12 4-Apr-12 Change (%) High Low
BSE Sensex 17,404.20 17,486.02 0.47% 19,811.10 15,135.90
S&P CNX Nifty 5,295.55 5,322.90 0.51% 5,944.45 5,187.85
CNX Nifty Junior 10,450.20 10,650.65 1.88% 11,758.15 10,176.30
Nifty Mid Cap 50 2,301.00 2,346.05 1.92% 2,657.10 2,274.75
CNX IT 6,516.00 6,539.90 0.37% 7,344.90 6,426.50
Bank Nifty 10,212.75 10,340.10 1.23% 11,978.05 10,038.90
CNX Infrastructure 2,509.15 2,561.05 2.03% 3,217.50 2,470.65
CNX Realty 239.05 241.55 1.03% 344.05 234.55
Source: BSE, NSE
Key Global Indices
Global Market Movements 52 Week
Index 30-Mar-12 5-Apr-12 Change (%) High Low
NASDAQ 3,091.57 3,080.50 -0.36% 3,090.08 2,298.89
Dow Jones Industrial Average 13,212.04 13,060.14 -1.16% 13,289.08 10,404.49
S&P 500 1,408.47 1,398.08 -0.74% 1,414.00 1,074.77
NIKKEI 225 10,083.56 9,767.61 -3.23% 10,207.90 8,135.79
Hang Seng 20,555.58 20,593.00 0.18% 24,468.64 16,250.27
Straits Times Index 3,010.46 2,986.20 -0.81% 3,227.28 2,521.95
FTSE 100 5,768.45 5,723.67 -0.78% 6,103.73 4,791.01
Source: Yahoo Finance
Indian Private Equity Weekly Update
2nd – 8th April, 2012

7. About Four-S Services
Four-s is a boutique firm focusing on cutting-edge Financial Research, Business Advisory and Investment Banking services for
clients. Through our deep research into India's high growth industries and accurate and objective advice we have helped many
marquee institutional investors take informed investment decisions in private equity and public markets. Four-S has proven
success in business advisory, investment banking and investor relations mandates with 100+ corporate clients and large PE
funds. For further information on the company please visit www.four-s.com
Disclaimer
The information contained herein has been obtained from sources believed to be reliable but is not necessarily complete and its
accuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, is made as to the
fairness, accuracy or completeness of any information, projections or opinion contained in this document or upon which any
such projections or opinions have been based. Four-S Services Pvt. Ltd. will not accept any liability, whatsoever with respect to
the use of this document or its content. This document has been distributed for information purposes only and does not
constitute or form part of any offer or solicitation of any offer to buy or sell any securities. This document shall not form the basis
of and should not be relied upon in connection with any contract or commitment whatsoever. This document is not to be
reported or copied or made available to others. The Company may from time to time solicit from, or perform consulting, or other
services for, any company mentioned in this document.
For Further details/clarifications please contact:
SeemaShukla
Email- seema@four-s.com
Address:
Gurgaon Mumbai
Four-S Services Pvt. Ltd. Four-S Services Pvt. Ltd.
214, UdyogVihar 101,Nirman Kendra,
Phase-I, Gurgaon -122016 Near Famous Studios, Off Dr. E
Haryana, INDIA Moses Road,
Tel: +91 124 4251443 Mahalaxmi, Mumbai
+91 9810408474 Tel: 022 - 42153659
Indian Private Equity Weekly Update
2nd – 8th April, 2012