Private equity investment in India grew nearly 200% in May 2010 compared to May 2009. The total value of deals was $630 million with 28 deals in May 2010, up from $211 million with 19 deals in May 2009. Financials, Materials, and Healthcare saw the most investment, capturing over 80% of the total deal value. The largest deal was KKR's $165 million investment in Avnija Properties Ltd. There were also 6 exits worth $164 million in May 2010.

1. A RESEARCH PUBLICATION | May 2010
MONTHLY DEAL UPDATE
May ’10 Statistics and analysis of Private Equity, Venture Capital
and Mergers & Acquisitions in India

2. Contents
Page Number
I. Executive Summary 1
II. Private Equity Deal Flow
- Introduction 2
- Deal Breakdown 3
- Sectoral Breakdown 5
- Deal of the Month 6
- Top 5 Private Equity Deals 7
III. Private Equity Exits 8
IV. M&A Round Up
- Introduction 9
- Deal Breakdown 10
Corporate Office:
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- Sectoral Breakdown 12
B-128, First Floor, Sector 5, Noida - Deal of the Month 13
Uttar Pradesh, India - 201 301
Tel: +91-120-4171111 - Top 5 M&A deals 14
Email Id: sales@vccedge.com
COPYRIGHT © 2010 All rights reserved.

3. MONTHLY REPORT
EXECUTIVE SUMMARY
VCCEdge puts the Indian dealscape in context by bringing Mergers & Acquisitions
to you a set of statistics analyzing Indian M&A, private
equity and venture capital activity during May 2010.  Deal value rose to $8,596 million in May ‘10, up from $513
million in May ‘09.
Private Equity
 The number of domestic deals doubled from 17 in May ’09 to
 Total private equity investment in India went up by nearly 35 in May ’10. The value of domestic deals was $1,100 million in
200% from $211 million in May ’09 to $630 million in May ‘10. May ’10 compared to $463 million in May ’09.
 The median deal amount and the average value of private  In terms of value, the number of outbound deals jumped many
equity deals in May ‘10 increased to $8 million and $25 fold from $50 million in May ’09 to $3,442 million in May ’10,
million respectively up from $4 million and $15 million in May while in terms of volume the increase was more than 2X from 9
’09. to 22.
 Financials, Materials & Healthcare were the most targeted The number of inbound deals increased to 7 valued at $4,039
sectors for investment with deals worth $212 million, $166 million in May ’10 as against 2 deals witnessed in May ’09.
million and $131 million respectively in May ‘10.
 Healthcare, Financials & Materials were the most targeted
 There were 6 exits worth $164 million in May ’10. sectors for M&A’s with deals worth $3,740 million, $2,336 million
and $1,358 million respectively in May ‘10.
1

4. PRIVATE EQUITY
INTRODUCTION
Private equity investment in India in May 2010 grew by nearly In the year 2010, March saw the highest deal value at $973
200% as compared to the same period last year. Deal value was million. However this could not be maintained and deal activity
$630 million in May ‘10 as against $211 million in May ’09. Total recorded a dip at $840 million and $630 million in Apr ’10 and
deal count also increased by 42% to 28 deals, up from 19 in May May ’10 respectively.
’09.
On a month on month basis deal value in May ‘10 was
substantially lower than that in Apr ‘10.
Exhibit 1: Month Wise Private Equity Trend
1200 37 38 40
36
33 35
$973
1000
33 28
27 27 27 $840 30
800 23 $747
Deal Volume
25
$614 $630
Deal Value ($ Mn)
19 $595
600 24 $554 20
21 $433 $455
$412 15
400
$270
$211 10
200
$167
5
0 0
May '09 Jun '09 Jul '09 Aug '09 Sep '09 Oct '09 Nov '09 Dec '09 Jan '10 Feb '10 Mar '10 Apr '10 May '10
Value ($ Mn) Volume
(Source: VCCEdge)
2

5. 500
PRIVATE EQUITY
DEAL BREAKDOWN
Exhibit 2: Private Equity Breakdown Exhibit 3: Median Deal Breakdown ($million)
30
18
16
25 24 16
23
22
14 13
20 19 12
10 8
Angel 7 8
15 8
12 12 VC 6
4
10 PE 4
6 6 6 2
5
5 4 0
2 2
1 May '05 May '06 May '07 May '08 May '09 May '10
0 0 0 0
0
May '05 May '06 May '07 May '08 May '09 May '10 (Source: VCCEdge)
Exhibit 4: Average deal size in ($million)
$118 Mn $315 Mn $1420 Mn $893 Mn $206 Mn $630 Mn
70
(Source: VCCEdge) 61
60
In May ’10, the total number of late stage deals stood at 22 at an 50
announced value of $598 million as against 12 deals at an 38
40
announced value of $195 million during the same period last
30 25
year. However, May ’08 saw 19 deals amounting to $882 million. 20
Venture capital deals remained at the same level over the last 20 15
10
three years. 10
0
May '05 May '06 May '07 May '08 May '09 May '10
(Source: VCCEdge)
The median deal amount and the average value grew to $8 million and $25 million respectively in May ‘10.
3

6. PRIVATE EQUITY
DEAL BREAKDOWN
Exhibit 5: Number of transactions by Deal Size Exhibit 6: Total investment by Deal Size
May '10
May '10
May '09
May '09
May '08
May '08
May '07 May '07
May '06 May '06
May '05 May '05
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Undisclosed Under $ 5 mn $5 -$25 Mn Under $ 5 mn $5 -$25 Mn $25 -$50 Mn
$25 -$50 Mn $50 -$ 100 Mn $100+ Mn $50 -$ 100 Mn $100+ Mn
In May ‘10, Private equity deals under $50 million accounted In May ’10, Larger deals ($50 million and Above) accounted
for 78 % of total deal volume . for 64 % of total capital invested.
May '05 May '06 May '07 May '08 May '09 May '10 May '05 May '06 May '07 May '08 May '09 May '10
Undisclosed 2 10 5 3 5 3 Under $ 5 mn 4 24 8 12 26 24
Under $ 5 mn 3 7 2 7 10 10
$5 -$25 Mn 82 38 192 130 0 142
$5 -$25 Mn 8 4 15 10 0 10
$25 -$50 Mn 33 145 129 136 123 64
$25 -$50 Mn 1 4 4 4 3 2
$50 -$ 100 Mn 0 2 0 1 1 1 $50 -$ 100 Mn 0 137 0 56 60 85
$100+ Mn 0 0 3 2 0 2 $100+ Mn 0 0 1159 575 0 136
(Source: VCCEdge) (Source: VCCEdge) 4

7. PRIVATE EQUITY
SECTORAL BREAKDOWN
Exhibit 7: Top 5 Sectors by Deal Value in May ‘ 10 ($mn)
Consumer Industrials, $22
Discretionary, $62 Financials, $212 Major PE investments influencing the deal values of these
sectors were investments in Avnija Properties Ltd., National
Stock Exchange of India, Fortis Healthcare and Pegasus
Assets Reconstruction.
Health care, $131 Exhibit 9: Top 5 Sectors by Deal Volume for the month May ’10
Industrials, 4
Financials, 9
Health care, 3
Materials, $166 (Source: VCCEdge)
In May ‘10, Financials, Materials & Healthcare were the most
targeted sectors for investment with deals worth $212 million,
$166 million and $131 million respectively. Together, they
accounted for more than 80% of total private equity deal value
during the month.
Exhibit 8: Sector Summary InformationTechn
Sector Volume Value($Mn) Average Size ology, 4
Materials 1 166 166 Consumer
(Source: VCCEdge) Discretionary, 5
Industrials 4 37 12
Consumer Discretionary 5 62 16
Consumer Staples 1 8 8 The most active sector in terms of deal volume was the
Health care 3 131 44 Financials sector with 9 deals during the month, followed by
Financials 9 212 27 Consumer Discretionary with 5 deals. Other sectors
Energy 0 0 0 contributing to the deal volume were Information Technology
Information Technology 4 13 3 and Industrials accounting for 4 deals each.
Telecommunication Services 1 1 1
Utilities 0 0 0 5

8. PRIVATE EQUITY
DEAL OF THE MONTH
Target : Avnija Properties Ltd. Announced : May 7, 2010
Buyer : Kohlberg Kravis Roberts & Co. Deal Value ($ mn): 165.6
Industry : Construction Materials Deal Feature : -
(Source: VCCEdge)
Kohlberg Kravis Roberts & Co. (KKR) will invest $165.6 million Since 2006, KKR has invested over $1.1 billion in India in
(INR 7.5 billion) in Chennai based Avnija Properties Ltd. The technology firm Aricent; telecom infrastructure player Bharti
company will use the proceeds for both organic/inorganic Infratel and Coffee Day Resorts, operator of the Café Coffee
growth and de-leveraging. Day chain of cafes in India.
Avnija Properties Ltd., a wholly owned subsidiary of Dalmia Kohlberg Kravis Roberts & Co. is a principal investment firm
Cement (Bharat) Ltd., is a cement manufacturing company. specializing in equity investments in acquisitions, leveraged
Dalmia Cement demerged its cement business division to buyouts and management buyouts in large cap companies. The
Avnija Properties Ltd. The company manages its 9 MTPA firm considers investments in all industries.
(million tonne per annum) cement manufacturing capacity.
JM Financial acted as financial advisor while Simpson Thacher
and AZB Partners acted as legal advisors to Kohlberg Kravis
Roberts & Co. Amarchand Mangaldas advised Avnija
Properties Ltd. on the deal.
6

9. PRIVATE EQUITY
Exhibit 10: Top Private Equity deals in May ‘10
Sno. Target Buyer Deal Value ($ mn)
1 Avnija Properties Ltd. Kohlberg Kravis Roberts & Co. 165
2 National Stock Exchange Of India Ltd. Temasek Holdings Pte. Ltd. 150
3 Fortis Healthcare Ltd. GIC Special Investments Pte Ltd. 84
4 Craftsman Automation Pvt. Ltd. International Finance Corp. 37
5 Pegasus Assets Reconstruction Pvt. Ltd. DE Shaw Composite Investments (Mauritius) Ltd. 26
(Source: VCCEdge)
TOP 5 PRIVATE EQUITY DEALS
The largest deal by value was KKR’s $165 million investment
in Dalmia Cement’s unlisted subsidiary Avnija Properties Ltd.
This was followed by the investment made by Temasek
Holdings in National Stock Exchange of India Ltd. and GIC
Special Investments investment in Fortis Healthcare Ltd.
The Top 5 deals occurred across various sectors.
The top 5 PE deals accounted for 73% of the
total private equity deal value in May ’10.
7

10. PRIVATE EQUITY
PRIVATE EQUITY EXITS
Exhibit 11: Top Private Equity Exits in May ’ 10
Sno. Target Seller Exit Type Deal Value ($ mn)
1 JBF Global Pte Ltd. Citi Venture Capital International Growth Fund Buyback 60
Adventity Global Services Pvt.
2 Ltd. Norwest Venture Partners, CIBC Capital Partners M&A 55
3 Mphasis Ltd. Baring India Investments Ltd. PCC Open Market 29.1
4 INX Media Pvt. Ltd. Temasek Holdings Pte. Ltd., New Vernon Private Equity
Secondary Sales 12
Ltd., Kotak India Growth Fund I
5 JM Financial Ltd. Tiger Global Management LLC Open Market 8.31
(Source: VCCEdge)
Secondary Sale, 1
M&A, 2
Buy Back, 1
Open Market, 2
The month of May ‘10 saw 6 exits worth $164
million.
Exhibit 12: Private Equity Exits in May ’ 10
(Source: VCCEdge)
8

11. MERGERS & ACQUISITION
INTRODUCTION
M&A deal value during May ‘10 stood at $8,596 million, a 16X
increase over the same period last year. Deal count also
witnessed an upward trend and increased by more than 124% The months ahead will offer significant deal making opportunities to
to 65 deals, as compared to 29 deals witnessed during May ‘09. companies that innovate, consolidate and develop niche financing
structures. There will be an increase in value and volume of Indian
M&A activity as investors confidence and liquidity return to the
Mar ’10 recorded the highest deal value at $14,326 million this
market.
year. Apr ’10 and May ’10 were substantially lower at $1,731
million and $8,596 million respectively.
Exhibit 13: Month Wise M&A Trend
16,000 80
$14,326
14,000 65 70
12,000 56 70 60
53 54
52
46
Deal Value ($ Mn)
10,000 50
Deal Volume
42 41 $8,596
40
8,000 35 40
33
29
6,000 30
4,000 20
$2,787 $2,867
$2,293
$1,774 $1,731
2,000 $1,160 $1,097 $1,310 10
$513 $609 $650
0 0
May '09 Jun '09 Jul '09 Aug '09 Sep '09 Oct '09 Nov '09 Dec '09 Jan '10 Feb '10 Mar '10 Apr '10 May '10
Value ($ Mn) Volume (Source: VCCEdge)
9

12. 500
MERGERS & ACQUISITION
DEAL BREAKDOWN
Exhibit 14: M&A Breakdown Exhibit 15: Median Deal Breakdown ($ million)
40 40
Domestic Inbound Outbound 35 34
35 35
29 30
30 25
25 23
25 22 20 17
19
20 17 17 17 15
16 10
14 13 10
15
4
9 5
10 8 7 7 7
0
5 3 3 2 May '05 May '06 May '07 May '08 May '09 May '10
0 (Source: VCCEdge)
May '05 May '06 May '07 May '08 May '09 May '10 Exhibit 16: Average deal size in ($million)
(Source: VCCEdge) 300 277
250
The number of domestic deals increased from 17 in May ’09
to 35 in May ’10. The value increased to $1,100 million in May 200
’10, up from $463 million in May ’09. 150
In terms of volume ,the number of outbound deals more than 92
100 69
doubled from 9 in May ’09 to 22 in May ’10. 55 51
50 33
In May ’10, the number of inbound deals increased to 7 as
against 2 deals witnessed in the same period last year. 0
May '05 May '06 May '07 May '08 May '09 May '10
(Source: VCCEdge)
The median deal amount increased to $34 million in May’10. Average deal value also increased
to $277 million, as the top 3 deals accounted for 78% of total deal value in May ‘10. 10

13. MERGERS & ACQUISITION
DEAL BREAKDOWN
Exhibit 17: Number of transactions by Deal Size Exhibit 18: Total investment by Deal Size
May '10
May '10
May '09 May '09
May '08 May '08
May '07 May '07
May '06 May '06
May '05 May '05
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Undisclosed Under $ 5 mn $5 -$25 Mn Under $ 5 mn $5 -$25 Mn $25 -$50 Mn
$25 -$50 Mn $50 -$ 100 Mn $100+ Mn
$50 -$ 100 Mn $100+ Mn
In May ‘10, M&A deals under $50 million accounted for 60% of Larger deals ($50 million and above) accounted for 97% of
total deal volume. total capital invested in May ’10.
May '05 May '06 May '07 May '08 May '09 May '10 May '05 May '06 May '07 May '08 May '09 May '10
undisclosed 13 16 33 23 19 34 under $5 15 10 17 21 8 17
under $5 8 4 9 8 2 8 $5 - $25 m 39 141 84 121 46 101
$5 - $25 m 2 13 5 7 3 7
$25 - $50 m 36 58 152 118 71 124
$25 - $50 m 1 2 4 3 2 3
$50 - $ 100 m 80 75 65 78 116 308
$50 - $ 100 m 1 1 1 1 2 5
$100+ 256 983 1704 1455 272 8047
$100+ 1 3 3 7 1 8
(Source: VCCEdge)
(Source: VCCEdge)
11

14. MERGERS & ACQUISITION
SECTORAL BREAKDOWN
Exhibit 19: Top 5 Sectors by Deal Value in May ‘10 ($mn)
Consumer Information The major transactions influencing the deal values of these
Staples, $234 Technology, $234 Health sectors were the acquisitions of Piramal's Healthcare Solutions
Care, $3,740
Business, KBL European Private Bankers, Anglo American
Materials, $1,358 Zinc, Bank of Rajasthan and Godrej Sara Lee.
Exhibit 21: Top 5 Sectors by Deal Volume for the month May ’10
Financials, $2,336
Industrials, 5
Health care, 6 Consumer
Discretionary, 14
(Source: VCCEdge)
In May ‘10, Healthcare, Financials & Materials were the most Financials, 6
targeted sectors with deals worth $3,740 million, $2,336 million
and $1,358 million respectively. Together, they accounted for
more than 86% of total deal value during the month.
Exhibit 20: Sector Summary
Materials, 8
Sector Volume Value($Mn) Average Size
Energy 1 100 100 InformationTechnology, 16
Materials 8 1358 453 (Source: VCCEdge)
Industrials 5 67 34
Consumer Discretionary 14 227 38
Consumer Staples 2 234 234 The most active sectors in terms of deal volume was
Health care 6 3740 1247 Information Technology with 16 deals in the
Financials 6 2336 779 month, Consumer Discretionary with 14 deals and Materials
Information Technology 16 234 47 with 8 deals.
Telecommunication Services 3 81 27
Utilities 4 219 219 12

15. MERGERS & ACQUISITION
DEAL OF THE MONTH
Target : Piramal's Healthcare Solutions Business Announced : May 21, 2010
Buyer : Abbott Laboratories Deal Value ($ mn): 3,720
Industry : Pharmaceuticals Deal Feature : Domestic
(Source: VCCEdge)
Abbott Laboratories entered into a definite agreement to The deal will push Abbott to the number one slot in the
acquire the healthcare solutions business (domestic Indian pharma landscape with a market share of
formulations) of Piramal Healthcare Ltd. for a price of $3.72 approximately 7%. The acquirer will fund the transaction with
billion (INR 173.74 billion). The buyer will make an upfront cash on the balance sheet. Piramal will continue its drug
payment of $2.12 billion and will pay $400 million annually discovery and research through Piramal Life Sciences Ltd. For
for the next four years. The assets to be transferred includes a period of eight years, Piramal will not engage in generic
the company's manufacturing facilities at Baddi, Himachal pharmaceuticals business in India and other emerging
Pradesh and rights to approximately 350 brands and markets.
trademarks. The division manufactures markets and sells
branded pharmaceuticals in finished form. The domestic
formulations business is currently conducted in India, Nepal
and Sri Lanka. Luthra & Luthra, Baker & McKenzie advised
Abbott Laboratories and Crawford Bayley and Stephenson
Harwood advised Piramal Health care on the deal.
13

16. MERGERS & ACQUISITION
Exhibit 22: Top M&A deals in May ‘10
Sno. Target Buyer M&A Type Deal Value ($ mn)
Piramal's Healthcare Solutions Business
1 (Domestic Formulations) Abbott Laboratories Inbound 3,720
2 KBL European Private Bankers SA Hinduja Group India Ltd. Outbound 1,673
3 Anglo American Zinc Hindustan Zinc Ltd. Outbound 1,338
4 Bank of Rajasthan Ltd. ICICI Bank Ltd. Domestic 659
5 Godrej Sara Lee Ltd. Godrej Consumer Products Ltd. Domestic 234
(Source: VCCEdge)
TOP 5 M&A DEALS
The largest deal by value was Abbott Laboratories acquisition of
the domestic formulations business of Piramal Healthcare Ltd.
for a price of $3.72 billion . This was followed by Hinduja Group
India Ltd. which acquired KBL European Private Bankers SA for a
price of $1,673 million and Hindustan Zinc Ltd. which acquired
Anglo American Zinc for approximately $1,338 million .
The Top 5 deals occurred across various sectors.
The top 5 M&A deals accounted for 88% of the
total deals activity in May ’10.
14

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