India’s Top 50 Outbound Investments 2016
Indian companies – big corporates and smaller and medium enterprises – made considerable strides this year. ‘India Global Business’ reviews some of the progress in this deal tracker.
1. Aurobindo Pharma makes French move
India’s Aurobindo Pharma Ltd will be acquiring select commercial products from Israel’s Teva through its French subsidiary. Arow Generiques SAS (Arrow Generiques) will acquire the right, title and interest in products such as calcium and calcium vitamin D3, including the use of the OROCAL trademark. The deal marked the Hyderabad-headquartered firm’s broader strategy to expand in Europe through acquisitions.
2. Kellton Tech sets up in Ireland
Hyderabad-based information technology multinational KelltonTech announced Drogheda, on the east coast of Ireland, as its EMEA (Europe, the Middle East and Africa) headquarters. The Irish headquarters will house an R&D facility to facilitate the localisation of Kellton’s flagship product KLGAME, an IoT uptake using beacons, wearables, smartphones and other digital technologies for revolutionary applications.
3. Infosys plans centres in Croatia, Russia
Infosys revealed plans to set up two development centres made up of 180 engineers in Karlovac, Croatia, and Moscow, Russia. The centres are aimed at expanding the Bengaluru-headquartered global service delivery network in eastern Europe. The move is linked to support a pact with Italy’s Ansaldo Energia and widen its network into Russia’s established heavy engineering sector.
4. Roha expands Europe footprint
Mumbai-headquartered food colouring and ingredients manufacturer Roha set up operations in Germany to expand its footprint in the European market. The company has made a strategic move to establish itself as a leader in the sector and wants to expand the reach of its products and services across important markets like Austria, Switzerland and the Netherlands.
5. Hotel firm to invest $1bn in Cambodia
Indian hospitality firm Supreme Holding and Hospitality (India) Limited announced plans to explore investment opportunities in Cambodia’s real estate and hotel market, with the prospect of investing $1 billion over the next five years. The first phase of this five-year plan will involve a $100-million investment in Cambodia’s real estate market. Supreme Holdings was incorporated in India in 1982.
6. Nalco’s Iranian joint venture
National Aluminium Company (Nalco), the aluminium major of India, set up a joint task force with Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO) to deliberate on a proposed smelter and gas-based power plant in Chabahar Free Trade Zone. Nalco said it is on the lookout for opportunities to set up a Greenfield smelter at a location where energy is available at competitive price.
7. Hero Cycles sets up in Colombo
Hero Cycles, among the world’s largest bicycle makers, formally inaugurated its newly acquired manufacturing facility in Colombo, Sri Lanka. The company said it marks a new beginning in its global expansion plans and it aims to sell 1 million bicycles per annum through the new plant by 2019. The unit will be developed into a manufacturing base for high-end exports to the European market.
8. Surya opens rugs plant in Georgia
Surya Inc, an India-based manufacturer of high-quality area rugs and other home accessories, opened a new facility in Cartersville, Georgia. The plant is worth $30 million and adds 200 employees to the company’s US workforce. The company said the move will enable it to consolidate product offerings under one roof and is aimed at executing its strategy to become a $1-billion company.
9. Tata Motors plans car unit in Iran
Tata Motors opened talks with a local manufacturer in Tehran to set up a joint venture for assembling its petrol cars in Iran, one of the fast growing automotive markets since sanctions were lifted. The Tata Group firm is talking to Iran Khodro Company for a joint venture to assemble knocked down units of the petrol versions of its models.
10. Apollo Tyres focuses on Malaysia
India’s leading tyre manufacturer Apollo Tyres announced the setting up of its office in Malaysia. The company already had a presence in the region, including Thailand and Indonesia, and it also operates a sales and distribution hub in Bangkok. With the latest move, Apollo plans to further expand its foothold in Southeast Asia and establish the brand at the top tier of the truck-bus radials market.
11. Petronet plans Bangladesh terminal
India-based gas importer Petronet LNG announced plans to set up a $752-million LNG import terminal at Kutubdia islands in Bangladesh. The company had previously proposed to develop Bangladesh’s first LNG-import venture, a floating storage and regasification units (FSRU) based project at Moheshkhali Island in the Bay of Bengal. The terminal is in addition to the proposed 3.5mt terminal at Matar Bari in Moheshkhali Island.
12. India plans Mozambique power plant
Indian consortium International Coal Ventures Ltd (IVCL) hopes to build a power plant in Mozambique. The consortium of state-run companies had bought Rio Tinto Group’s coal-mining assets in Mozambique for $50 million in 2014. The main members of ICVL include Steel Authority of India Ltd (SAIL), Rashtriya Ispat Nigam Ltd (RINL), also known as Vizag Steel, and National Mineral Development Corporation (NMDC), all state enterprises.
13. Taj eyes hotel in Qatar
Tata Group firm Indian Hotels Company (IHC), which runs the Taj Hotels around the world, is exploring options to have a presence in Qatar. The plans were revealed by Indian ambassador to Qatar Sanjiv Arora during a business meeting this year. IHC has said the company is looking towards the Gulf Cooperaton Council (GCC) and South-East Asia to diversify and optimise its revenues.
14. Tata’s Trent plans global drive
The Tata Group’s retail arm, Trent, has assigned a capital outlay of around $22 million to expand operations in the Middle East. The investment is also aimed at launching Trent’s own mass market apparel stores as well as adding about 50 stores across formats such as Westside and Star Bazaar. The firm has two separate JVs with Spain’s Inditex for stores under Zara (18 stores) and a single Massimo Dutti store.
15. Kalyan Jewellers to expand in Gulf
Thrissur-based jewellery retail chain Kalyan Jewellers is planning to invest $249 million this year in increasing its network of showrooms across India and Middle East and convert its customer service centres to mini diamond outlets. The company plans to open 17 new showrooms across India and 11 showrooms across major Gulf countries, including Qatar, Kuwait, Dubai, Abu Dhabi and Bahrain.
16. SMT expands global footprint
Sahajanand Medical Technologies Pvt Ltd (SMT), India’s largest manufacturer of cardiovascular medical stents, announced the opening of its new Research & Development Centre in Galway City, Ireland. SMT aims to attract global talent through this new facility to diversify its product portfolio. The company said it has significant investment plans to develop the centre as a global hub.
17. Tata makes its Bolivia entry
Indian automotive giant Tata Motors made its entry into Bolivia with the launch of three commercial vehicles. The entry into the market is through a distribution agreement with Bolivian Auto Motors, a part of the business group Salvatierra. Besides Bolivia, Tata Motors commercial vehicles are also sold in other South American markets such as Chile and Ecuador.
18. Airtel to sell towers in Tanzania
Indian Telecom company Bharti Airtel has entered into an agreement with American Tower Corporation (ATC) for the sale of about 1,350 mobile towers in Tanzania with a view to monetise its passive infrastructure assets in Africa. As per the agreement, American Tower would acquire up to approximately 100 additional sites currently in development for an additional consideration from Airtel’s subsidiary, Airtel Tanzania Ltd.
19. Lava smartphone makes Egypt entry
India’s Lava smartphone brand signed a memorandum of understanding (MoU) with Egypt-based Easy Group to offer Lava products in Egypt through a joint venture company. Lava claims it has an aggressive plan for Egyptian market. It will leverage Easy Group’s market leadership position in distribution and reach to make its products available across the country including feature phones, smartphones, tablets and accessories.
20. Sarovar Hotel eyes Africa market
India’s Sarovar Hotels & Resorts plans to expand its presence in Africa. The company opened its fifth hotel in the continent – The Lazizi Permiere in Nairobi. Sarovar operates over 75 hotels across 50 destinations in India and Africa and is focusing on its three and four-star brand Portico. The group also operates through brands like Radisson, Park Plaza and Park Inn under a franchise agreement with Carlson Rezidor Hotel Group.
21. Vikram Solar eyes Finland market
India’s Tier 1 solar module manufacturer, Vikram Solar, has entered into a strategic partnership with Finnwind Oy, making the Finnish system integrator, manufacturer and installer of renewable energy systems the exclusive supplier of Vikram Solar modules for the Finnish market. Vikram Solar claims that its polycrystalline Eldora solar modules are certified for area loads of 5,400 Pa and are therefore especially suited to the extreme conditions in Finland.
22. Mahindra ties up with Chinese firm
Mahindra & Mahindra (M&M) announced a tie-up with a Chinese company to manufacture Ssangyong vehicles for the China market. The company is re-thinking the strategy for its loss-making Korean automaker Ssangyong Motor Co and putting a planned push into the US on hold to focus instead on China. M&M, said that making cars in China would mean Ssangyong could lower its prices there.
23. India’s Fox eyes Nigerian oil
New Delhi-based Fox Petroleum Energy Trading Nigeria Ltd (FPETN) is all set to commence its investment in the exploration and processing of crude oil in Nigeria. The firm, in a joint venture with Newpal Nigeria Ltd, has said it plans to invest billions of dollars in the Nigerian petroleum sector. The company is also negotiating with the owner of a virgin oil bloc in the country for exploration.
24. Essel Propack opens Columbia plant
Essel Propack, the Mumbai-headquartered specialty packaging company, inaugurated a new plant at Cali in Colombia to manufacture laminated plastic tubes catering to the FMCG segment. Located in a special economic zone, the facility, with a capacity to manufacture 180 million tubes a year, is aimed at efficiently catering to the growing export opportunity in the adjacent Andean markets of Ecuador, Peru, Bolivia, Venezuela, Chile, among others.
25. Ashok Leyland plans Kenya bus unit
Ashok Leyland, the Hinduja Group’s flagship firm in India, decided to set up a bus assembly unit in Kenya with an investment of around $11 million. The company says the plant is in sync with its global expansion plans. The new plant in Kenya will serve at least three neighbouring countries, besides catering to local demand. The company already has a manufacturing facility at Ras Al Khaimah in the UAE.
26. Intas buys Teva’s UK unit for £600 million
Intas Pharmaceuticals Ltd, a low profile pharmaceutical company based in Ahmedabad, will acquire Actavis UK ltd and Actavis Ireland Ltd for POUND (USE SYMBOL) 600 million (Rs 5,083 crore) from Teva Pharmaceutical Industries of Israel in an all cash transaction that is likely to be completed by the first week of January 2017.
27. ONGC buys additional stake in Rosneft’s Vankor field
Public sector oil explorer Oil and Natural Gas Corporation Ltd (ONGC) has struck a deal with Russian national oil company Rosneft to buy a further 11 per cent in JSC Vankorneft, which has a license for the Vankor field in Siberaia. Though India’s national oil explorer did not announce the price of the acquisition, sources pegged it at $924 million.
28. Wipro buys cloud applications firm Appirio for $400-500 million
The Azim Premji-led Wipro Ltd has paid $400-500 million for Appirio, a US-based cloud consultancy firm. Though neither company confirmed the deal, a website of Appirio called it “a Wipro company”, suggesting that the deal had gone through. Appirio, with more than 1,200 employees, was set up in 2006 and i offers technology and professional services to companies that want to adopt public cloud applications.
29. Piramal Group buys J&J’s pharmaceutical products unit in UK for $155 million
The wholly-owned critical care subsidiary of Piramal Enterprises in the UK acquired five anaesthesia and pain management injectable products from Janssen Pharmaceutica NV, the pharmaceutical division of Johnson & Johnson, for $155 million in an all cash deal. The consideration may rise by another $20 million if the unit meets certain agreed milestones over the next 30 months.
30. Everstone Capital buys C3 for $150 million
Everstone Capital, an Indian private equity fund, and Sunrise BPO have acquired US-based CRM solutions provider C3 for $150 million. The transaction will be routed through Everise Services in Singapore and mark Everstone’s first acquisition in the US. C3, which has operations in the Philippines and Guatemala boasts revenues of $200 million.
31. Tata Steel signs deal to invest C$175 in Canadian mining operations
Tata Steel Minerals Canada, a Canadian subsidiary of the Indian steel giant, has signed deals with Quebec government to invest C$175 million (nearly Rs 875 crore) to set up mining operations in Canada’s Newfoundland and Labrador peninsula in Canada. “Tata Steel Minerals Canada together with its parent companies signed definitive agreements…. with the government of Quebec’s investment entities, Resources Quebec (RQ) and Investment Quebec, (IQ) respectively, totalling C$175 million,” Tata Steel said in a BSE filing.
32. HCL tech to buy Butler America Aerospace for $85 million
India’s fourth largest IT services company HCL Technologies will acquire Butler America Aerospace for $85 million in cash in order to strengthen its position in the aerospace and defence engineering services sector. Butler Aerospace, which provides engineering, design services and aftermarket services to aerospace and defence contractors in the US, has revenues of about $85 million.
33. Piramal buys US contract developer Ash Stevens for $53 million
Piramal Enterprises will buy Ash Stevens Inc, a contract development and manufacturing firm based in the US, $53 million. Its “wholly-owned US subsidiary has entered into an agreement to acquire 100 per cent stake in Ash Stevens Inc … in all cash deal for a total consideration of $42.95 million plus an earn-out consideration capped at $10 million, subject to achievement of certain EBITDA targets, payable over next six months,” the company said in a BSE filing.
34. Sun Pharma buys specialty ophthalmic drug for $40 million
Sun Pharma, India’s largest drug maker, has acquired Ocular Technologies from Auven Therapeutics, a private equity firm focused on accelerated development of breakthrough drugs, for an upfront consideration of $40 million. The deal will boost Sun’s specialty ophthalmic drugs pipeline for the global markets, particularly in the US. It already sells drugs like BromSite, DexaSite and Xelpros in the US.
35. Apollo Tyres building €475 million plant in Hungary
Indian tyre major Apollo Tyres will invest €475 million to build Europe’s largest greenfield tyre plant in Hungary, which will make 6.2 million tyres for passenger cars and heavy commercial vehicles every year. The plant will go on stream in 2017 and serve the entire European market.
36. Zee buys UAE’s leading radio station
Zee Entertainment Enterprises Ltd, which is part of one of India’s largest media houses, has acquired Hum 106.2 FM, the UAE’s leading radio station, for an undisclosed amount. A company statement said Zee now becomes the only entertainment network in the region to provide an extensive media solution to its partners through television, radio and digital.
37. Shriram Group to invest $30 million in Singapore generic drug maker
Shriram Group company Envestor Ventures will invest $30 million in partnership with Eight Roads Ventures India, a part of Fidelity International Limited and US-based F-Prime Capital Partners in Eywa Pharma Pte, a Singapore-based generic pharmaceutical company that was incorporated in 2015 to make reliable and affordable generic pharmaceuticals for patients all over the world.
38. M&M buys out Peugeot’s stake in motorcycle JV
Mahindra and Mahindra Ltd will buy out Peugeot Motorcycles SAS’s stake in its two-wheeler joint venture for Rs196 crore. Following this, M&M will own 100 per cent of the outstanding shares in the joint venture, Mahindra Two Wheelers (MTW) Europe Holdings. This comes two years after it acquired a 51 per cent stake in MTW Europe €28 million.
39. M&M buys minority stake in Finnish co, enters global combine harvester market
Mahindra & Mahindra Ltd (M&M) will acquire a 35 per cent equity stake in Finnish farm equipment maker Sampo Rosenlew about €18 million, subject to customary adjustments, M&M said in a BSE filing today. This strategic partnership will enable Mahindra & Mahindra to enter the global market for combine harvesters.
40. Tide Water buys UK lubricant maker Price Thomas Holdings for £9.59 million
Tide Water Oil Co. (India) Ltd, which makes Veedol and Eneos lubricants, acquired UK-based lubricant maker Price Thomas Holdings Ltd for £9.59 million. This will enable it to expand overseas sales. The acquired company has revenues of £10 million and sells its products in the UK, Sweden, Ireland and Bulgaria among other countries.
41. Reliance invests $16 million in US tech start-up
Reliance Industries, India’s largest private sector company, has agreed to invest $16 million in NetraDyne Inc, a US tech start-up that is developing a platform based on the Internet of Things to process visual inputs. “There are potential synergies with telecom and digital business initiatives of RIL… apart from commercialization benefits in India,” Reliance said in a filing.
42. Essel Propack to buy 100% stake in German JV
Essel Propack will buy a 100 per cent stake in EDG in a deal that will help the former cross sell its products in Germany and deploy its proven capability to offer high decoration laminated tube solutions for the premium non oral care brands across Europe, including Germany. Prior to this deal, the Rs 2,184-crore Essel held a 24.9 per cent stake in EDG, which has revenues of $40 million.
43. Manali Petrochem buys UK company for $18 million
Manali Petrochemicals has bought Notedome Ltd, a UK-based manufacturer of neuthane polyurethane cast elastomers for $18 million. The acquisition will enable Manali Petrochemicals to sell its products in the UK and other parts of Europe while increasing its product offerings in India. The acquisition was done through its UK subsidiary.
44. Adani buys Australian port operator APB
APO, an arm of Adani Ports and Special Economic Zone has signed a deal to buy Australian firm APB for an estimated A$19.25 million. “Abbot Point Operations Pty Ltd (APO), an Australian subsidiary of APSEZ, has entered into an agreement to acquire ownership of Abbot Point Bulkcoal Pty Ltd (APB), an Australian registered company performing the operations and maintenance activities of Abbot Point Coal Terminal in Queensland, Australia,” a company statement said.
45. Esdee Paints to set up manufacturing JV in Ethiopia
Ahmedabad-based Esdee Paints has bought a 50 per cent stake in Ethiopia-based Jelaram Pvt Ltd, to form a joint venture to set up a manufacturing unit in that country. Jelaram is the sixth largest manufacturer of decorative paints in that country. The company did not disclose details about the acquisition price or the size of the proposed investment.
46. Infosys invests $4 million in US data services company
Indian IT bellwether Infosys has invested $4 million in US-based Waterline Data Science, which provides data scientists and business analysts with self-service data catalogues that help them discover, understand and provision data.
47. Infosys buys minority stake in Israeli cloud computing firm for $4 million
India’s second-largest IT services company, Infosys, has invested $4 million for a minority stake in Cloudyn Ltd, an Israeli company that makes software for monitoring and optimising cloud computing, marking the Bengaluru-based firm’s second investment in an Israel-based cloud-computing start-up from the company’s $500 million innovation fund.
48. Marsons close to sealing $5-million deal for stake in Dubai firm
Power transformers maker Marsons is close to finalising a $5-million deal for buying a large, but undisclosed, stake in a Dubai-based firm. “Marsons is in final stages of discussion for taking over a considerable stake in a Dubai-based LLC Trading Company for amount of $5 million,” the Indian company said in a regulatory filing.
49. M&M buys UK cycle maker BSA for £3.4 million
Mahindra & Mahindra, India’s second-largest homegrown auto company, has acquired iconic UK-based two-wheeler maker BSA Company for £3.4 million. “CLPL, a subsidiary of the company, has on October 21, 2016 acquired 100% of the share capital of BSA Company Limited,” M&M said in a statement.
50. Hyderabad-based Oremus buys UK data services BPO
Oremus Corporate Services, a Hyderabad-based finance and accounting business process outsourcing services firm, has bought Escribea, a UK-based BPO firm providing accounting, transcription and data services, along with its two subsidiaries for over Rs 7 crore in an all cash deal. The deal will give Oremus access to new markets in the UK and Ireland.