Indias top 50 Outbound Investments 2017

Indias top 50 Outbound Investments 2017
Indias top 50 Outbound Investments 2017

Indian companies, including big corporates and small and medium enterprises (SMEs), executed some ambitious expansion plans across various markets this year. 'India Global Business' reviews some of the progress in its annual deal tracker.

  1. Aurobindo Pharma buys Portugal firm
Hyderabad-headquartered drugmaker Aurobindo Pharma Ltd agreed to acquire Portugal-based pharmaceuticals products manufacturer and supplier Generis Farmaceutica SA from private equity firm Magnum Capital Partners for €135 million ($142 million). The deal will help consolidate the Indian company's footprint in Portugal, where its portfolio already consists of Aurovitas, Unipessoal LDA and Aurobindo Pharma-Portugal.
  1. Intas completes UK acquisition
Ahmedabad-based Intas Pharmaceuticals, through its wholly-owned subsidiary Accord Healthcare Ltd, completed the deal to acquire Actavis UK Ltd & Actavis Ireland Ltd from Teva Pharmaceutical Industries Ltd, for an enterprise value of £603 million ($804 million) payable in cash. This will expand Intas' UK manufacturing presence and more than double the firm's pan-European operations.
  1. Cadila Healthcare to buy US firm
India's Cadila Healthcare acquired California-based speciality pharma company Sentynl Therapeutics for an estimated $171 million. The deal marked the Ahmedabad-based company's foray into the $8-billion specialty pain management drug market in the US, as it gains access to Sentynl's distribution network and large prescriber base. The acquisition was solely funded by Bank of Tokyo-Mitsubishi UFJ, Cadila Healthcare said.
  1. Piramal buys UK firm's drugs
Mumbai-headquartered Piramal Enterprises clinched a deal to acquire UK-based Mallinckrodt LLC's portfolio of intrathecal (administered via the spinal column) spasticity and pain-management drugs in an all-cash deal worth $171 million. It marked the company's seventh pharma acquisition in the last two years, taking its investment for inorganic growth to $450 million across the pharma businesses.
  1. UK, Manipal Group ink healthcare pact
UK government-owned development finance institution CDC Group and India's Manipal Education and Medical Group (MEMG) tied up to launch a Rs 500-crore ($77-million) corpus to invest in healthcare services beyond conventional hospital services. This partnership is aimed at investing in innovative opportunities in India, Africa and South Asia and will target “out-of-hospital” care services companies, like diagnostics and home-care services.
  1. Assam refinery in $146mn Finland pact
Assam-based Numaligarh Refinery Limited (NRL) inked an important “framework agreement” with its technology partner, Chempolis Oyo of Finland, to give concrete shape to the implementation of the Rs 950 crore ($146-million) bio-refinery project. The project is designed to produce 49,000 tonnes of bioethanol annually, with co-production of furfural and acetic acid using 'formicobio' technology of Chempolis Oyo.
  1. Tech Mahindra to buy US firm
One of India's leading software services firm, Tech Mahindra Ltd, signed a definitive agreement to acquire CJS Solutions Group LLC, a US-based healthcare information technology consulting company, at an enterprise value of $110 million. As part of the deal, Tech Mahindra was expected to make an upfront payment of $89.5 million for the purchase of an 84.7 per cent stake in the firm. The balance stake of 15.3 per cent will be acquired over a period of three years.
  1. L&T bags $108.5mn Tanzania contract
Mumbai-headquartered engineering major Larsen & Toubro bagged orders worth Rs 705 crore ($108.5mn) in its water and effluent business in Tanzania. The scope of the work involves survey, design, procurement, construction and installation of pumping systems, rising and gravity/main lines, elevated and ground level storage reservoirs, branch lines, distribution network and water kiosks to provide water to Tabora and 33 other villages.
  1. Motherson Sumi acquires Finnish firm
Noida-headquartered Motherson Sumi Systems (MSSL) has acquired Finland-based global auto component major PKC Group for approximately €571 million, a move that will help the group expand its footprint significantly in the American and European commercial vehicle market segment. With the operational expertise of MSSL and technical know-how of PKC, the company said it would add more value to its customers and suppliers.
  1. Kellton Tech buys US-based Lenmar
India's Kellton Tech announced the acquisition of US-based Lenmar Group of Companies, a global IT services and solutions group with a presence in the banking and financial services space. Kellton Tech said the acquisition will deepen its capabilities and support its next phase of growth in existing markets of the US, India and Europe and new markets in the APAC region.
  1. Jain irrigation buys US firms for $48.5mn
India's Jain Irrigation acquired two irrigation and distribution companies - Agri-Valley Irrigation Inc (AVI) and Irrigation Design and Construction Inc (IDC) - in the US for $48.5 million. The company, through its wholly-owned US subsidiary Jain Irrigation Inc, was to hold 80 per cent stake after both the US irrigation distribution companies were merged.
  1. HCL to acquire US-based mortgage BPO
Indian software services firm HCL Technologies acquires US-based Urban Fulfillment Services (UFS) for up to $30 million in cash. UFS is a provider of mortgage business process and fulfilment services. HCL Tech said the acquisition of UFS strengthens its capabilities in mortgage BPO services, loan fulfilment and debt servicing. The companies said the deal will create a leading provider of state-of-the-art services in the market.
  1. Wipro partners with US security start-up
Bengaluru-headquartered Wipro partnered with Silicon Valley based security start-up Demisto to deliver integrated and automated incident response as a managed service. Along with the partnership, Wipro′s strategic investment arm - Wipro Ventures - also made an investment in Demisto as part of the latter′s $20-million Series B round of funding that was announced in February this year.
  1. Serum Institute buys Czech firm for €72mn
Serum Institute of India Ltd, the world's largest vaccine maker by number of doses produced and sold, acquired a defunct unit of Czech Republic based injectable polio doses maker Nanotherapeutics Inc for €72 million. The acquisition will help the Pune-based company become the largest injectable polio vaccine maker in the world by increasing production capacity four-fold to more than 200 million doses by 2019.
  1. Tata Steel sells UK unit for £100mn
Tata Steel UK completed the sale of its Speciality Steels business, which employs 1,700 workers, to Liberty House Group for £100 million. Liberty said it would not only protect the 1,700 existing jobs but also create 300 new ones and invest multi-million pounds in the venture. The acquisition makes Liberty one of the largest steel and engineering employers in the UK, with over 4,500 workers.
  1. L&T Tech to buy Esencia for $27 million
L&T Technology Services (LTTS), the engineering services arm of Larsen & Toubro, has signed an agreement to acquire US-based design services provider Esencia Technologies Inc. The deal to acquire the California-headquartered firm is worth $27 million, with $15 million to be paid up front and the rest paid over a period of four years.
  1. Adani signs deal with Australia's Arrium
India's Adani Group signed a $74-million landmark deal with Australian steel group Arrium to buy steel for a 400-km rail line for its controversial Carmichael coal mine project. Arrium's division, OneSteel Manufacturing Pty Ltd, will supply 54,000 tonnes of steel to build the rail line linking Adani's proposed coal mine in central Queensland with the Abbot Point port.
  1. Torrent Pharma buys Novartis brands
Ahmedabad-headquartered Torrent Pharmaceuticals acquired women healthcare brands Regestrone and Pregachieve from Swiss pharma major Novartis AG for the Indian market. Both brands are prescribed by gynaecologists for the management of abnormal uterine bleeding, peri and post-menopausal symptoms and infertility. A Torrent statement said the acquisition of Regestrone and Pregachieve will further fortify its hormone segment.
  1. Hindalco′s Novelis in Kobe Steel JV
Aluminium products maker Novelis, a wholly-owned subsidiary of Mumbai-headquartered Hindalco Industries, entered into a joint venture with Kobe Steel, a Japanese producer of aluminium rolled products. The JV is named Ulsan Aluminium and was formed by Novelis selling 50 per cent of its ownership stake in its Ulsan facility in South Korea to Kobe for $315 million.
  1. Future Group eyes the Middle East
India's Future Group is eyeing the international market for fashion and consumer products through a joint venture with Oman-based Khimji Ramdas (KR) Group. It plans to open around 18 exclusive stores in the Middle East in the next few years. The 50-50 joint venture will be called KR Future Fashions, with an investment of around Rs 75 crore each ($12mn).
  1. Dabur buys South African firms
Indian FMCG major Dabur acquired two South African companies in the personal care and hair care segment. The company's step down wholly-owned subsidiary Dabur South Africa entered into the share purchase agreement to acquire D&A Cosmetics Proprietary Ltd and Atlanta Body & Health Products Proprietary Ltd. The deal size is estimated at Rs 25 crore ($4mn).
  1. Runaya inks $75mn aluminium pacts
Runaya, a metals start-up founded by the sons of Vedanta Ltd chairman Navin Agarwal, has signed two joint venture pacts worth $75 million with Russia's UC Rusal and Bahrain's Taha International Corporation (TIC). The pacts relate to the production of high-tech aluminium paste and powder in India and sustainable waste management solutions for the aluminium industry.
  1. HDFC buys stake in Tanzania company
As part of greenfield expansion outside India, mortgage lender HDFC Ltd acquired a 15 per cent stake in Tanzania's First Housing Finance for $1.5 million. The objective of the deal is to provide housing loans to Tanzanians. Among others, First Housing Finance shareholders include three local partners - Bank M Tanzania Plc, Armut Ltd and Sanjay Suchak.
  1. Tata Comms, Alibaba Cloud join hands
Tata Communications announced a partnership with Alibaba Cloud to enable customers from over 150 countries, including India, connect to Alibaba Cloud′s ExpressConnect via Tata Communications′ IZO Private Connect service. The companies said the new partnership will help them become digital transformation partners for customers, empowering them to expand to new geographies, boost productivity and safeguard their businesses against threats.
  1. Wipro raises stake in Drivestream
Bengaluru-headquartered IT Services corporation Wipro has invested $809,690 in Washington-based management and IT consulting firm Drivestream. Wipro said in a Bombay Stock Exchange (BSE) filing that it will acquire 19,679 preferred stocks and 27,865 common stocks. With this, it holds a 26.1 per cent share in Drivestream, on a fully diluted basis.
  1. Flipkart, eBay India deal gets nod
E-commerce major Flipkart's proposed acquisition of eBay India received approval from the Competition Commission of India (CCI). This means an approval for eBay Singapore's subscription of compulsorily convertible preference shares (CCPS) issued by Flipkart. eBay will invest $500 million in Flipkart as the two firms merge their operations in the country. As part of the deal, Flipkart will own and operate eBay's business in India.
  1. Tata Power completes Georgia project
Tata Power completed the construction of a 187MW hydro project in Georgia that cost over $420 million. The Shuakhevi hydroelectric project is the largest hydro- power plant to be built in Georgia in the past five decades and was completed by Adjaristsqali Georgia LLC (AGL), Tata Power's joint venture with Norway's Clean Energy Invest AS and IFC InfraVentures (IFC), a member of the World Bank Group.
  1. Adventz Group in $2bn Israel deal
The Adventz Group signed a $2 billion-plus memorandum of understanding (MoU) with Israel's Lesico group for collaboration in light rail transit (LRT) projects in Tel Aviv and Jerusalem. According to the MoU, Texmaco Rail & Engineering Limited, a part of the Saroj Poddar led Adventz Group, will lend its expertise in track-related works for the Tel-Aviv Red-Line and Jerusalem Green-Line LRT projects.
  1. Jindal Poly Films acquires Dutch firm
Indian packaging films maker, Jindal Poly Films Ltd, acquired Netherlands-based Apeldoorn Flexible Packaging Holding BV for an enterprise value of €82.3 million in cash. Jindal Poly Films said the acquisition will help it increase its product offerings by adding load security films. The deal also strengthens its relationship with brand owners in the food, beverage and fast-moving consumer goods segments.
  1. Talwalkars partners with Snap Fitness
Indian fitness and gym chain, Talwalkars Better Value Fitness, announced its international foray into South East Asia through a master franchise tie-up with US-headquartered Snap Fitness for an initial investment of about $10 million. The fitness chain will operate in Singapore, Malaysia, Vietnam, Thailand, Sri Lanka and Bangladesh, through its Singapore subsidiary.
  1. Camlin Fine Sciences buys China stake
Indian specialty chemicals maker, Camlin Fine Sciences Ltd, acquired a 51 per cent stake in Chinese chemical firm Ningbo Wanglong Flavors and Fragrances Company Ltd for $6.28 million in cash. Camlin bought the stake along with its Italian unit CFS Europe SpA. The deal will help the company become the world's third-largest producer of vanillin, used by food and flavour companies and perfume manufacturers to enhance fragrance.
  1. Hindustan Power expands in Asia
Hindustan Power acquired 15 ready-to-build solar projects in Japan totalling 150MW in capacity, with plans to enter Bangladesh by developing four 25MW solar projects at Trishal. The projects across multiple locations in Japan are expected to be constructed by mid-2018. The proposal to develop the 100MW of solar projects in northern Bangladesh has been submitted to the government and the required land agreement has been signed.
  1. Reliance invests $25mn in Israel firm
Reliance Industries Ltd (RIL) announced an investment of $25 million for a 20 per cent stake in Jerusalem Innovation Incubator (JII). RIL believes that technological innovation from JII will benefit its telecom unit Jio - which is on a massive expansion of its 4G network in India and give them access to innovation, technologies and products from one of the world′s largest start-up and technology innovation ecosystem.
  1. Marico acquires South Africa's Isoplus
Marico South Africa Pty Limited, a wholly-owned step-down subsidiary of FMCG major Marico, announced the acquisition of Isoplus, a hair-styling brand in South Africa from JM Products and Mary L Harris for Rs 36 crore ($5.53 million). The acquisition comprises the purchase of manufacturing facilities, working capital and all intellectual property rights and is expected to be fully consummated by FY18.
  1. Titan partners with Amazon for US foray
E-tailing giant Amazon announced its partnership with India′s iconic lifestyle brand, Titan, to help its entry into the US market. Under the partnership, Amazon through its “Global Selling Programme” will enable Titan to take its vast range of watches to millions of global customers across ethnicities on Amazon.com in the US and eventually across other Amazon marketplaces.
  1. Piramal acquires Context Matters
Mumbai-headquartered Piramal Enterprises' wholly-owned subsidiary Decision Resources Inc has acquired US-based health economics data and technology company Context Matters Inc for an undisclosed amount. Context Matters will fortify DRG's global market access portfolio by combining the novel Context Matters data model, which links global regulatory and health technology assessment data to detailed clinical trial data, with DRG's existing suite of products and services.
  1. Hero Electronix buys Malaysia′s Spectrum
Hero Electronix, a company set up by the Hero Group to tap into emerging digital opportunities, has acquired Malaysian printed circuit board (PCB) manufacturing company Spectrum Integrated Technologies and the chip test business of Singapore′s Lynxemi. The acquisitions were made through Tessolve, a Hero Electronix venture that provides engineering services. The acquisitions will enable Hero-Tessolve to expand the scope of their business beyond India.
  1. Infosys completes Brilliant Basics acquisition
Infosys completed the acquisition of London-based product design and customer experience company Brilliant Basics. Through the acquisition, Infosys will further expand its worldwide connected network of Digital Studios. The network is focused on fulfilling the needs of global clients for end-to-end Digital Transformation solutions, required to meet customer demand for next-generation enhanced customer experiences.
  1. Cyient to acquire B&F Design Inc
Hyderabad-based IT major Cyient has entered into a definitive agreement to acquire 100 per cent equity in US-based B&F Design Inc. The company said the acquisition will be carried out through its step-down subsidiary, Cyient Defense Services Inc. This acquisition is a step towards enhancing the company's “Build and Maintain” offerings and help provide increased value to customers by undertaking more comprehensive work.
  1. Infosys signs 7-year French deal
Indian IT service provider Infosys signed a seven-year technology outsourcing deal with French container shipping major CMA CGM Group that requires it to open a local delivery centre at Marseille for delivering services. Infosys will also take over staff and operations of CMA CGM in Dubai as part of the deal and will help the shipping major in both maintenance and development of SAP-based applications.
  1. Thyssenkrupp, Tata Steel plan merger
Germany's Thyssenkrupp and India's Tata Steel agreed to merge their European steel operations in a preliminary deal that would create the continent's second-largest steelmaker after ArcelorMittal. Both groups would contribute debt and liabilities to achieve an equal shareholding and remain long-term investors. The new joint venture, to be named Thyssenkrupp Tata Steel, will be headquartered in Amsterdam.
  1. Mahindra acquires Turkish tractor firm
Mumbai-headquartered Mahindra and Mahindra Ltd acquired Erkunt Traktor Sanayii AS, a Turkish tractor maker and its foundry business for Rs 800 crore ($123 million) through Mahindra Overseas Investment Co.(Mauritius) Ltd. The buyout will provide the company access to the Turkish agricultural machinery market, the fourth-largest globally, and help it enhance its product portfolio.
  1. OVL buys stake in Namibian oil block
ONGC Videsh Ltd (OVL), the overseas subsidiary of India's state-owned petroleum explorer Oil and Natural Gas Corporation (ONGC), completed the acquisition of 30 per cent interest in an oil block in Namibia from Tullow Oil. Tullow will continue to remain the operator of the license and other partners in the block include Pancontinental Namibia (Pty) Limited and Paragon Oil and Gas (Pty) Limited.
  1. Wipro buys US-based Cooper for $8.5mn
Indian IT services company Wipro acquired US-based design and business consultancy firm Cooper, which counts Google and Starbucks as clients. The deal is worth around $8.5 million and looks to strengthen Wipro's digital offerings to clients globally. As part of the deal, Wipro gets access offices in New York and San Francisco. Cooper would also help expand its reach in the North American market and add capabilities in professional design education.
  1. Lupin buys Symbiomix Therapeutics
Indian pharma major Lupin acquired US-based Symbiomix Therapeutics LLC for $150 million to grow its women′s health business. Symbiomix is a privately held company focused on bringing innovative therapies to the market for gynaecological infections that can have serious health consequences. The acquisition of Symbiomix and its SolosecTM brand expands Lupin's US women's health specialty business into the highly complementary gynaecological infection sector.
  1. Bharti Airtel, Millicom close Ghana deal
Telecom operator Bharti Airtel and Europe's Millicom International Cellular announced the completion of a deal to combine their operations in Ghana. The merged entity will become Ghana's second-largest mobile operator, with close to 10 million subscribers. Under the joint agreement, Airtel and Millicom will have equal ownership and governance rights, which will have revenues of approximately $300 million.
  1. Adani strikes renewables partnership
India's Adani Group joined the race to acquire the Indian renewable assets of Singapore-based Equis Energy, which has put its entire portfolio valued at about $5 billion on the block. Adani has teamed up with Doha-based Nebras Power, which is looking to buy Equis′ remaining assets in the Philippines, Japan, Thailand, Indonesia, Australia and Taiwan.
  1. Centrum in pact with FirstRand Bank
Mumbai-based Centrum Group signed a definitive agreement to acquire the Indian microfinance business of South Africa's FirstRand Bank. Centrum is also believed to be in talks to acquire another two such portfolios to boost the small loan business. This acquisition is a strategic step in the company's goal of providing finance to the urban poor and under-served sections of the society, it said.
  1. Alembic acquires US-based Orit Labs
Gujarat-based Alembic Pharmaceuticals Ltd bought US-based generic drug developer Orit Laboratories LLC from Okner Realty LLC in its first cross-border acquisition. The company claimed that the acquisition will expand Alembic's basket of product offerings to customers, shows their commitment to becoming a long-term player in the US generic industry, and will help them create a powerful R&D footprint in the US.
  1. Fortis offers $711mn for Singapore trust assets
Fortis Healthcare Ltd has offered to acquire the entire portfolio of Singapore-listed RHT Health Trust. Fortis will purchase RHT Health's assets for Rs 4,650 crore ($711 million), including debt of Rs 1,152 crore ($177 million). The deal is aimed at consolidating the entire portfolio of RHT Health, comprising two hospitals, 12 clinics and four new clinics into Fortis.

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