Move over Tatas and Birlas. A new wave of small and midsized ‘indian manufacturer’ is creating ripples on the global M&A stage. Even as inorganic growth opportunities within India become scarce, the economic downturn of Europe and North America has thrown up attractive opportunities for acquisitions. An increasing number of Indian companies is making bids — at times audacious — to gobble up overseas firms. So even though it’s the big ticket acquisitions that capture our imagination, the small and medium companies are increasingly riding the M&A wave abroad. As a result, the trend has brought into spotlight budding multinationals from India. “We are definitely witnessing an increase in outbound transactions by Indian companies over the last couple of months. These companies are from newer segments such as industrial products, chemicals, and even some consumer products brands that are growing steadily within India,” says Ajay Arora, partner, transactions advisory services, Ernst & Young. Companies are increasingly expanding their markets beyond the Indian borders - either to access new cuttingedge technologies or in search of natural resources. Since January 2010, there have been around 35 overseas deals struck by Indian companies. The figure is comparatively large as against the over 40 deals sealed in entire 2009. Apart from larger deals, such as Bharti Airtel’s acquisition of Zain Africa ($10.7 billion), Hindustan Zinc’s acquisition of Anglo-American Zinc ($1.3 billion) in Namibia and Jindal Steel & Power’s acquisition of Shadeed Iron & Steel in Oman ($464 million), the landscape is dotted with many small to mid-sized deals like Banco Products’ acquisition of Nederlandse Radiateuren Fabriek of Netherlands ($24 million), Inox India’s majority stake buy in Cryogenic Vessel Alternatives (CVA) of US ($140 million), Crompton Greaves’ acquisition of Power Technology Solutions in the UK ($45 million), Hindustan Construction Company’s acquisition of a 66% stake in Karl Steiner AG ($33 million), among a host of others. There are many opportunities for Indian companies to globalise across sectors, including the mid-IT space. Africa has witnessed many deals in the consumer products and telecom space. Distressed assets in Europe are now also prime targets for acquisitions. “Six months ago, such an endeavour was not possible for Indian companies due to financing constraints. Today, balance sheets are much stronger and companies are on a better footing to acquire companies overseas,” says Sanjeev Krishan, executive director/partner, transactions group, PricewaterhouseCooper (PwC). Clearly, high interest burden and liquidity crunch are no longer the stumbling blocks in India Inc’s endeavour to make overseas acquisitions. “In 2007, total offshore investment by Indian corporates was to the tune of approximately $32.9 billion. It is fair to say that the transformation of Indian SMEs into Indian MNCs is well underway,” says Bharat Anand, partner, Khaitan & Co, the New Delhi-based firm which helped Suzlon in its acquisition of Hansen Transmission and Inox’s purchase of CVA. indian suppliers With CVA being the world’s largest manufacturer of cryogenic transportation equipment, Inox India has secured its position as a global player in the short span, offering total solutions in cryogenic storage, transportation and distribution engineering across nearly 100 countries with exports accounting for almost 60% of its turnover. There are some companies which belong to larger groups and, by virtue of that, have a global presence. Some of the lesser known or smaller Tata companies too have hit the M&A trail. For instance, TRF, in April, acquired UK’s Hewitt Robins International. Says Rajesh R Jumani, chief marketing officer, Tata Interactive Systems, “In an increasingly flat world, it is often more advantageous to collaborate rather than compete. We can synergise our mutual strengths, reach out to untapped markets or strengthen our positions in a geography, and meet local needs more effectively.” A few years ago, Tata Interactive Systems, a pioneer in e-learning, acquired Tertia Edusoft’s Germany and Switzerland business. The acquisitions have acted as a force-multiplier for the company, helping it ramp up the scale of its operations in Europe. “On the other hand, it has also helped us take formerly localised products to a wider, global audience. So it’s mutually beneficial. After all, ultimately all initiatives need to make business sense,” says Jumani. There is no doubt that the Tatas’ acquisitions of Corus and Jaguar Land Rover, followed by Reliance’s audacious bid for Lyondell Basell and Bharti’s Zain buy, have made small and mid-size Indian companies (SMEs) to venture offshore. Godrej Consumer Products, part of the Godrej group, has made four outbound deals so far this year. The company has said it continues to look out for target companies in overseas markets. In the pharma space, Avantha Group acquired Pyramid Healthcare Solutions ($20 million) in the US and Aegis acquired Sallie Mae (customer service centre) in Texas. Cheap dollar, foreign loans make global buy attractive Avantha Group has an established presence in the IT & ITeS space in the US. This strategic acquisition further strengthens its global presence in the niche healthcare solutions sector. On the other hand, BK Birla group set foot in a new continent with Jay Shree Tea & Industries acquiring tea gardens in East Africa. According to Bala Balachandran, professor of accounting and information management, JL Kellogg, M&A activities will flourish for at least five more years where India will be a global player. “There will be more M&A activity and people will find the best fit strategically. Value migration will take over value proposition,” Balachandran says. The rationale An acquisition is an easy way for small and mid-sized Indian companies, particularly specialising in products like cryogenic vessels, graphite plates, gerkins, etc., to establish a foothold abroad, given that they would have to compete with other MNCs. In some cases, an acquisition ensures an offshore presence along with a competitive supply chain. Some like the Godrej group have gained leadership position in the hair colour space in 19 countries across the globe through the inorganic growth route. With deflated valuations of potential target companies, the global recession has thrown up enough opportunities for Indian companies to make outbound deals. “With the American economy gradually limping out of recession, several businesses set up some time ago are up for sale. Timingwise, this has helped Indian SMEs, which have benefitted from India’s liberalisation in the past 20 years, to acquire these businesses,” says Anand of Khaitan & Co. The appreciation of the rupee against the dollar, along with the availability of foreign currency-denominated loans has assisted these companies by making foreign acquisitions cheaper for Indian SMEs. Difficulties faced In the face of it, everything seems hunky dory at the pace indian manufacturers at which Indian companies are striking deals. However, the road may be riddled with challenges in matters related to corporate governance, competition law, legal risks and cultural fits. Indian SMEs may be accustomed to a cosy relationship between promoters and non-executive directors. But such issues are treated with much more seriousness in the West. “Indian companies will have to transform their thinking over such issues if they want to be regarded as blue chip investors from emerging markets,” says Anand. indian manufacturers Moreover, Indian companies are not accustomed to operating in an environment where there is a strong competition regulator. Indian companies are often prepared to take a high degree of legal risk since the judiciary takes a lot of time to address and resolve issues. However, in the West, the judiciary is much more efficient, and courts award actual costs as well as substantial damages on time. Anand feels managers of Indian companies will require training to deal with such issues. Another big challenge is HR. According to Ashutosh Maheshvari, CEO, Motilal Oswal Investment Advisors, “The biggest impediment remains to be able to adapt to the cultural business conditions to operate in the target company’s country.” “We have seen integration challenges where human resource policies or the processes or systems are different in the two countries and companies find it difficult to integrate them,” says Arora of Ernst & Young. indian manufacturers Certain legislations and regulations, especially on environment issues, are also much stricter in the western countries as are closure regulations. New companies heading out may also find it difficult to deal with these issues. The quicker they adapt, the better. Avantha Group has an established presence in the IT & ITeS space in the US. This strategic acquisition further strengthens its global presence in the niche healthcare solutions sector. On the other hand, BK Birla group set foot in a new continent with Jay Shree Tea & Industries acquiring tea gardens in East Africa. According to Bala Balachandran, professor of accounting and information management, JL Kellogg, M&A activities will flourish for at least five more years where India will be a global player. “There will be more M&A activity and people will find the best fit strategically. Value migration will take over value proposition,” Balachandran says.
Showing posts with label India manufacturer. Show all posts
Showing posts with label India manufacturer. Show all posts
Monday, 28 October 2013
Small is big: SMEs on overseas drive
Move over Tatas and Birlas. A new wave of small and midsized ‘indian manufacturer’ is creating ripples on the global M&A stage. Even as inorganic growth opportunities within India become scarce, the economic downturn of Europe and North America has thrown up attractive opportunities for acquisitions. An increasing number of Indian companies is making bids — at times audacious — to gobble up overseas firms. So even though it’s the big ticket acquisitions that capture our imagination, the small and medium companies are increasingly riding the M&A wave abroad. As a result, the trend has brought into spotlight budding multinationals from India. “We are definitely witnessing an increase in outbound transactions by Indian companies over the last couple of months. These companies are from newer segments such as industrial products, chemicals, and even some consumer products brands that are growing steadily within India,” says Ajay Arora, partner, transactions advisory services, Ernst & Young. Companies are increasingly expanding their markets beyond the Indian borders - either to access new cuttingedge technologies or in search of natural resources. Since January 2010, there have been around 35 overseas deals struck by Indian companies. The figure is comparatively large as against the over 40 deals sealed in entire 2009. Apart from larger deals, such as Bharti Airtel’s acquisition of Zain Africa ($10.7 billion), Hindustan Zinc’s acquisition of Anglo-American Zinc ($1.3 billion) in Namibia and Jindal Steel & Power’s acquisition of Shadeed Iron & Steel in Oman ($464 million), the landscape is dotted with many small to mid-sized deals like Banco Products’ acquisition of Nederlandse Radiateuren Fabriek of Netherlands ($24 million), Inox India’s majority stake buy in Cryogenic Vessel Alternatives (CVA) of US ($140 million), Crompton Greaves’ acquisition of Power Technology Solutions in the UK ($45 million), Hindustan Construction Company’s acquisition of a 66% stake in Karl Steiner AG ($33 million), among a host of others. There are many opportunities for Indian companies to globalise across sectors, including the mid-IT space. Africa has witnessed many deals in the consumer products and telecom space. Distressed assets in Europe are now also prime targets for acquisitions. “Six months ago, such an endeavour was not possible for Indian companies due to financing constraints. Today, balance sheets are much stronger and companies are on a better footing to acquire companies overseas,” says Sanjeev Krishan, executive director/partner, transactions group, PricewaterhouseCooper (PwC). Clearly, high interest burden and liquidity crunch are no longer the stumbling blocks in India Inc’s endeavour to make overseas acquisitions. “In 2007, total offshore investment by Indian corporates was to the tune of approximately $32.9 billion. It is fair to say that the transformation of Indian SMEs into Indian MNCs is well underway,” says Bharat Anand, partner, Khaitan & Co, the New Delhi-based firm which helped Suzlon in its acquisition of Hansen Transmission and Inox’s purchase of CVA. indian suppliers With CVA being the world’s largest manufacturer of cryogenic transportation equipment, Inox India has secured its position as a global player in the short span, offering total solutions in cryogenic storage, transportation and distribution engineering across nearly 100 countries with exports accounting for almost 60% of its turnover. There are some companies which belong to larger groups and, by virtue of that, have a global presence. Some of the lesser known or smaller Tata companies too have hit the M&A trail. For instance, TRF, in April, acquired UK’s Hewitt Robins International. Says Rajesh R Jumani, chief marketing officer, Tata Interactive Systems, “In an increasingly flat world, it is often more advantageous to collaborate rather than compete. We can synergise our mutual strengths, reach out to untapped markets or strengthen our positions in a geography, and meet local needs more effectively.” A few years ago, Tata Interactive Systems, a pioneer in e-learning, acquired Tertia Edusoft’s Germany and Switzerland business. The acquisitions have acted as a force-multiplier for the company, helping it ramp up the scale of its operations in Europe. “On the other hand, it has also helped us take formerly localised products to a wider, global audience. So it’s mutually beneficial. After all, ultimately all initiatives need to make business sense,” says Jumani. There is no doubt that the Tatas’ acquisitions of Corus and Jaguar Land Rover, followed by Reliance’s audacious bid for Lyondell Basell and Bharti’s Zain buy, have made small and mid-size Indian companies (SMEs) to venture offshore. Godrej Consumer Products, part of the Godrej group, has made four outbound deals so far this year. The company has said it continues to look out for target companies in overseas markets. In the pharma space, Avantha Group acquired Pyramid Healthcare Solutions ($20 million) in the US and Aegis acquired Sallie Mae (customer service centre) in Texas. Cheap dollar, foreign loans make global buy attractive Avantha Group has an established presence in the IT & ITeS space in the US. This strategic acquisition further strengthens its global presence in the niche healthcare solutions sector. On the other hand, BK Birla group set foot in a new continent with Jay Shree Tea & Industries acquiring tea gardens in East Africa. According to Bala Balachandran, professor of accounting and information management, JL Kellogg, M&A activities will flourish for at least five more years where India will be a global player. “There will be more M&A activity and people will find the best fit strategically. Value migration will take over value proposition,” Balachandran says. The rationale An acquisition is an easy way for small and mid-sized Indian companies, particularly specialising in products like cryogenic vessels, graphite plates, gerkins, etc., to establish a foothold abroad, given that they would have to compete with other MNCs. In some cases, an acquisition ensures an offshore presence along with a competitive supply chain. Some like the Godrej group have gained leadership position in the hair colour space in 19 countries across the globe through the inorganic growth route. With deflated valuations of potential target companies, the global recession has thrown up enough opportunities for Indian companies to make outbound deals. “With the American economy gradually limping out of recession, several businesses set up some time ago are up for sale. Timingwise, this has helped Indian SMEs, which have benefitted from India’s liberalisation in the past 20 years, to acquire these businesses,” says Anand of Khaitan & Co. The appreciation of the rupee against the dollar, along with the availability of foreign currency-denominated loans has assisted these companies by making foreign acquisitions cheaper for Indian SMEs. Difficulties faced In the face of it, everything seems hunky dory at the pace indian manufacturers at which Indian companies are striking deals. However, the road may be riddled with challenges in matters related to corporate governance, competition law, legal risks and cultural fits. Indian SMEs may be accustomed to a cosy relationship between promoters and non-executive directors. But such issues are treated with much more seriousness in the West. “Indian companies will have to transform their thinking over such issues if they want to be regarded as blue chip investors from emerging markets,” says Anand. indian manufacturers Moreover, Indian companies are not accustomed to operating in an environment where there is a strong competition regulator. Indian companies are often prepared to take a high degree of legal risk since the judiciary takes a lot of time to address and resolve issues. However, in the West, the judiciary is much more efficient, and courts award actual costs as well as substantial damages on time. Anand feels managers of Indian companies will require training to deal with such issues. Another big challenge is HR. According to Ashutosh Maheshvari, CEO, Motilal Oswal Investment Advisors, “The biggest impediment remains to be able to adapt to the cultural business conditions to operate in the target company’s country.” “We have seen integration challenges where human resource policies or the processes or systems are different in the two countries and companies find it difficult to integrate them,” says Arora of Ernst & Young. indian manufacturers Certain legislations and regulations, especially on environment issues, are also much stricter in the western countries as are closure regulations. New companies heading out may also find it difficult to deal with these issues. The quicker they adapt, the better. Avantha Group has an established presence in the IT & ITeS space in the US. This strategic acquisition further strengthens its global presence in the niche healthcare solutions sector. On the other hand, BK Birla group set foot in a new continent with Jay Shree Tea & Industries acquiring tea gardens in East Africa. According to Bala Balachandran, professor of accounting and information management, JL Kellogg, M&A activities will flourish for at least five more years where India will be a global player. “There will be more M&A activity and people will find the best fit strategically. Value migration will take over value proposition,” Balachandran says.
Thursday, 25 April 2013
service providers
Indian Exporters Directory
Indian Supplier Directory
Friday, 12 April 2013
The Growth Of Indian Manufacturers and other traders compared
By its four commodities apparel, chemicals, auto components and electrical and electronic products only it has taken a good shape in the market and is firm to withstand the long run. Indian suppliers are rapidly growing in comparison to other developing countries and will sure emerge in top 3 positions if the Indian government supports it.
<a href="http://www.way2trading.com/">Indian manufacturers</a> had been screened from large scale manufacturing exports. But as per McKinsey report the forthcoming brand in the future years would be 'Made in India'. India would soon emerge in the picture as the developed nations utilizes Indian manufacturers for manufacturing and producing from cheap labor as it is a low cost country (LCC).
The report suggested that the US$40 billion as in 2002 will rise to an approximate of US$300 billion by 2015 which would interpret 3.5 per cent of Indian suppliers in the global market.
This will increase the Indian GDP by 1 percent thereby creating 25-30 million new jobs in the marketing fields. But in order to survive Indian exporters and suppliers will have to become global in their outlook, marketing skills, cost efficiency to gain maximum advantage. For further growth Indian suppliers would need to improvise taxation, infrastructure, SEZs and enhance skills.
As compared by the reports of 2002 China's manufacturing exports accounted US$ 300 billion, Taiwan's US$ 145 billion, Mexico's US$ 140 billion, Malaysia's US$78 billion and Thailand's US$55 billion while Indian suppliers US$40 billion. But in the long run Indian manufacturers can make it to 3.5 percent of total world export and reach the top three in exports by 2015.
Indian suppliers & manufacturer have a good scope in manufacturing exports for it has skill intensive industries and evolving domestic demand. Researches demonstrate that US$70-US$90 billion can easily be made through apparel, chemicals, auto components and electrical and electronic products.
In 2002 Indian suppliers & manufacturer exported US$ 10 billion in the above items. By 2015 over US$300 billion can be gained from apparel alone. And Indian suppliers & manufacturer can become the second-largest LCC exporter with 8-10 percent of global trade. <a href="http://www.way2trading.com/">Indian manufacturer</a> in 2003 had US$1 billion in auto-components which can plunge to US$375 billion by 2015 if it pace at 30 percent a year. Indian suppliers & manufacturers should not slag behind since Thailand and China is also trying to capture the market at their pace. In electrical and electronic products India should go as far as US$15-US$18 billion. Indian manufacturers lead in LCC exporters segments such as dyes and intermediates, Active Pharmaceutical Ingredients (APIs) and agrochemicals for crop protection. Indian exporters & manufacturer will sure outshine if the central, state governing bodies along with MNCs work together. www.way2trading.com can be browsed for more information.
Indian manufacturers, Indian suppliers, exporters directory,b2b portal,b2b business directory,exporter,manufacturer,supplier,India exporter,India manufacturer,India supplier,exporter directory
Monday, 4 February 2013
B2B Business Directory
With the dawn of technology, need for more number of buyers for your
products has increased. Internet acted as a starter for online business
activities. It gave rise to B2B marketplace which is a virtual place to
put your products and promote them online. It is a marketplace where
buyers and sellers come together at one stage and communicate each other
to get business deals from local as well as international companies.
Business relationships are formed by registering your company on b2b portal and making trade deals. Becoming a featured member can help you to be placed on top of the list of buyers and sellers and you will get more business opportunities. Breaking geographical boundaries, it has a power to expand work area globally just with few clicks. It can be called as a strong weapon to fight with time and place barriers of doing any kind of business from anywhere. As well you can go online with any number and any type of product, either consumer oriented or industry specific.
There is no need to advertise your products at any location.<a href="http://www.way2trading.com/">B2B portal</a> also allows for targeted advertising of products and services. It offers cut down costs of marketing and advertising products using physical efforts and medium other than internet. Product images and its descriptions are uploaded on trading site and business is carried out virtually using these websites.<a href="http://www.way2trading.com/">B2B Business Directory</a> provided by b2b portals accepts, store and retrieve all the details regarding buyers and sellers. There are separate sections in directory for various business persons such as manufacturers, suppliers, importers, exporters, wholesalers etc. You can access information of each other, study and make decision to which product, buyer or seller you should deal with.
Importers and exporters can surely use such trade portals to get secured buy leads and sell leads. If you are in search of faithful business deals, you can deal with listed members in a business directory possessing trust seal. It is a kind of verification and authorization of member carried out by b2b site itself. This feature will provide safe business trade. Being not only safe, convenient but also reliable source, B2B online trading portal offers information of company and its products in summarized or detailed form as per requirement.
B2B marketplace is regarded as an excellent invention by plenty of its users. Due to a common platform, worldwide buyers and sellers, importers and exporters can save their time and money of meeting each other by travelling miles along. It benefits both parties at a time with the increase in trade leads, sales progression and revenue maximization. Profits are amplified due to internet connections, easy contacts among buyers and sellers and the shortest trading intervals. Use business portals and get lots of benefits!
Business relationships are formed by registering your company on b2b portal and making trade deals. Becoming a featured member can help you to be placed on top of the list of buyers and sellers and you will get more business opportunities. Breaking geographical boundaries, it has a power to expand work area globally just with few clicks. It can be called as a strong weapon to fight with time and place barriers of doing any kind of business from anywhere. As well you can go online with any number and any type of product, either consumer oriented or industry specific.
There is no need to advertise your products at any location.<a href="http://www.way2trading.com/">B2B portal</a> also allows for targeted advertising of products and services. It offers cut down costs of marketing and advertising products using physical efforts and medium other than internet. Product images and its descriptions are uploaded on trading site and business is carried out virtually using these websites.<a href="http://www.way2trading.com/">B2B Business Directory</a> provided by b2b portals accepts, store and retrieve all the details regarding buyers and sellers. There are separate sections in directory for various business persons such as manufacturers, suppliers, importers, exporters, wholesalers etc. You can access information of each other, study and make decision to which product, buyer or seller you should deal with.
Importers and exporters can surely use such trade portals to get secured buy leads and sell leads. If you are in search of faithful business deals, you can deal with listed members in a business directory possessing trust seal. It is a kind of verification and authorization of member carried out by b2b site itself. This feature will provide safe business trade. Being not only safe, convenient but also reliable source, B2B online trading portal offers information of company and its products in summarized or detailed form as per requirement.
B2B marketplace is regarded as an excellent invention by plenty of its users. Due to a common platform, worldwide buyers and sellers, importers and exporters can save their time and money of meeting each other by travelling miles along. It benefits both parties at a time with the increase in trade leads, sales progression and revenue maximization. Profits are amplified due to internet connections, easy contacts among buyers and sellers and the shortest trading intervals. Use business portals and get lots of benefits!
Author's Bio:
Keshav Dussal is the author of article. He has been demonstrating his writing skills by writing the articles for <a href="http://www.way2trading.com/">B2B marketplace</a> from last two years. He also has a keen interest in writing stuff for <a href="http://www.way2trading.com/">global business directory</a> related topics. He has written various articles on <a href="http://www.way2trading.com/">B2B Business Directory</a> .
Friday, 25 January 2013
Intorduction to way2trading.com
Way2trading.com is a world’s largest B2B Marketplace that assists manufacturers, suppliers & exporters directory and largest yellow pages of World,with listing of indian& International companies. Find here quality products and trade leads,
Find : Indian manufacturers,Indian suppliers,exporters directory,b2b portal,b2b business directory India exporter,manufacturer,supplier,India exporter,India manufacturer,India supplier,exporter directory,India manufacturers,suppliers,supplier directory,manufacturers directory,Indian exporters directory,exporters yellow pages,Indian service providers,business to business portal,b2b directory,exporters,suppliers,manufacturer,importers,traders,dealers,buyers,e-commerce,electronic trade & commerce,Indian b2b portal,b2b marketplace India
Monday, 17 December 2012
Fortis arm to sell Aussie stake to UK firm
The Singapore subsidiary of Fortis, promoted by Malvinder Singh and Shivinder Singh, would divest its 64 per cent stake in Australia- based Dental Corporation Holdings to the UK- based healthcare organisation Bupa. The deal, valued at A$ 270 million ( around ₹1,550 crore), was expected to be completed in March 2013, the company said in a statement today.
According to the company, the proceeds from the divestment would be utilised to reduce the healthcare major’s current financial leverage of around ₹4,500 crore.
“The divestment proceeds will go towards strengthening Fortis’ balance sheet, bringing it closer to its net debt- to- equity target ratio of 0.6x,” the statement said.
Fortis, which entered the dental chain in January 2011, expanded it from 140 practices to 190 in Australia and New Zealand.
However, the operations of the dental chain remained confined to the two countries and, in spite of exploration and backing from its parent, it could not do in other geographies as well as Fortis had envisaged.
“As a premier healthcare company, we are quick to assess the competitive landscape, the opportunities for growth and emerging trends... The move is good for Fortis as it aligns the company with its current strategic priorities,” Fortis Executive Chairman Malvinder Singh said. “ This will help consolidate our presence as one of the fastest- growing healthcare companies in the region,” he added.
The ₹1,550- cr deal expected to be completed by March
Friday, 23 November 2012
VLCC Buys Malaysian Wellness Firm Wyann Delhi firm’s first foreign buy estimated at . 100-150 cr OUR BUREAU NEW DELHI
VLCC Buys Malaysian Wellness Firm Wyann
Delhi firm’s first foreign buying estimated at . 100-150 cr
OUR BUREAU NEW DELHI
VLCC has acquired a majority stake in Malaysian slimming and personal care firm Wyann International, the Delhi-based beauty and slimming services firm said on Thursday.
The deal is estimated at . 100-150 crore, though VLCC officials declined to comment on the deal size.
This is the first foreign acquisition by VLCC, which has company-managed operations in nine countries across South Asia and the Middle East.
“This is not only significant as our first step beyond South Asia and the Middle East but also as our first move to grow through acquisition,” Mukesh Luthra, group chairman at VLCC, said.
Kuala Lumpur-based Wyann International (M) owns and operates a chain of 22 slimming and beauty outlets across Malaysia, offering specialist services and products under its Bizzy Body, Facial First and Masculine brands.
ET had first reported that VLCC was in advanced talks to buy out Wyann last month.
The . 700-crore VLCC had been trying to acquire businesses in the wellness and personal care space for close to two years now and had reached due diligence stages, but talks did not materialise.
The beauty and wellness firm has simultaneously mandated banker JM Financial to help it raise funds of about . 300 crore as it is looking to accelerate its businesses.
VLCC expects to be a . 1,500 crore firm by 2015. International operations contribute 30% to VLCC’s topline.
The deal will give VLCC access to the South Asia market, where it plans to expand operations by adding new wellness centres, vocational education institutes in beauty and nutrition and rolling out VLCC Personal Care, its line of herbal skin, hair and body care products. The Vandana Luthrapromoted group plans to roll out its products and services to eight additional countries such as Singapore, Indonesia, Thailand, Myanmar, Saudi Arabia, Egypt and Kenya.
Wyann founder & chief operating officer Yap YannFang said: “We look forward to sharing expertise and knowledge to continue the growth trend in the region.”
Founder Vandana Luthra and her husband Mukesh hold majority 85% stake in the firm, while 15% is held by Everstone Capital, which picked up the stake in ’07.
Tuesday, 20 November 2012
Way2Trading - Indian Manufacturers,Indian Suppliers,Exporters Directory India
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