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Quarterly Deal Update

Statistics & Analysis of Private Equity and M&A Deals in India


A Research Publication

Q2 2011

Contents
Page Number
I. EXECUTIVE SUMMARY

II. Private Equity


Private Equity Investments
- Overview

- Deal Type Analysis

- Sector Analysis

- Top 10 Private Equity Investments

- Regional Analysis

Private Equity Exits


- Overview

10

- Deal Type Analysis

11

- Sector Analysis

12

-Top 10 Private Equity Exits

13

Fund Activity

14

III. Mergers & Acquisitions


- Overview

15

- Deal Type Analysis

16

- Sector Analysis

18

- Top 10 Mergers & Acquisitions

19

- Regional Analysis

20

IV. Sector Spotlight

21

Disclaimer:
VCCEdge (the research arm of VCCircle.com) has taken due care and caution in preparing this report. Information has been obtained from the
VCCEdge platform and sources which it considers reliable. However, VCCEdge does not guarantee the accuracy, adequacy or completeness of any
information and is not responsible for any errors or omissions or for the results obtained from the use of such information. No part of this report
may be published/reproduced in any form without VCCEdges prior written approval. VCCEdge or its owner Mosaic Media Ventures Pvt. Ltd. is not
liable for investment decisions which may be based on the views expressed in this report.

VCCEdge | COPYRIGHT 2011 All rights reserved

Executive Summary

Private Equity:

Total private equity investment in India went up 71.5% from $1.83 billion in Q2 2010 to $3.14 billion in Q2
2011. Deal volume also increased 52% from 90 to 137 during the same period.

The median deal amount increased 10% from $10 million in Q2 2010 to $11 million. The average deal value
increased 21% from $24 million to $29 million during the same period.

Private equity deals under $50 million accounted for 67.15% of total deal volume in Q2 2011.

Big-ticket deals ($100 million and above) constituted 47.02% of the total private equity capital invested during
the quarter.

Industrials, Materials and Consumer Discretionary were the most targeted sectors for investment with deals
worth $989, $664 and $479 million respectively.

Exits continue to be on the backburner with just $620 million worth of investments realized across 26 exit deals
as compared to $1.34 billion across 41 exit deals in Q2 2010.

Mergers & Acquisitions:

M&A deal value in Q2 2011 is nearly half of the $21.88 billion seen in Q1 2011, even though the deal volume
went up by 5 deals between the two quarters.

The median deal amount increased from $18 million to $ 21 million and the average deal value dropped by 14%
from $136 million to $117 million as compared to Q2 2010.

The value of outbound deals surged significantly from $4.85 billion in Q2 2010 to $7.75 billion in Q2 2011.

Big-ticket deals ($100 million and above) constituted 87% of the total deal flow.

Energy, Materials and Information Technology were the most targeted sectors for acquisitions with deals worth
$4.43 billion, $2.65 billion, and $1.51 billion, respectively.

VCCEdge | COPYRIGHT 2011 All rights reserved

Private Equity Investments: Overview


Private equity investments picked up pace in the second quarter of 2011 with total deal value shooting up to $3.15
billion coming from 137 deals. This is the highest quarterly investment seen in the last 11 quarters, both in terms of
deal value and volume. The last quarter to see private equity investments crossing the $3 billion mark was Q3 2008.
Total capital invested went up 71.5% from $1.83 billion in Q2 2010 to $3.15 billion in this quarter; deal volume
increasing 52% from 90 to 137 during the same period. Compared to Q1 2011, the increase in deal value is nearly 21%
while that for deal volume is 33% or 34 more deals compared to 103 deals in the first quarter.

$7,000

250
223

$6,000

$5,829 $5,737 $5,720

200
178

174

$5,000
147
125

$4,000
120

129

$3,539

137
$3,745

$3,000

94

$2,768

85

$2,000

98

97

$2,762

90

93

92
69

$1,925

$1,931

117

113

107

$1,621
$1,382

$1,246

$1,000

90

$2,894

$1,826 $1,835

$1,722

150

$3,147

103
88

100

$2,612

$1,637

$1,499

50

$1,010

$817

$0

Q1

Q2

Q3

Q4

Q1

2006

Q2

Q3

2007

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2008

Value ($ mm)

Q3

2009

Q4

Q1

Q2

Q3

Q4

Q1

2010

Q2

2011

Volume

Figure 1 Private Equity Investments

The biggest deal seen during the quarter was the $286.87 million investment in convertible debentures and non-voting
global depository receipts of Welspun Corp. by Apollo Management. In addition to this, the Infrastructure sector saw two
big-ticket deals (worth $200 million each) during the quarter Morgan Stanley Infrastructure Partners investment in
three highway projects of Soma Enterprises, and a clutch of private equity investors including Standard Chartered
Private Equity Ltd. and Jacob Ballas Capital India investing in GMR Airports Holding.

VCCEdge | COPYRIGHT 2011 All rights reserved

Deal Type Analysis


100
86

90

86

76

80
70

59

60

57

50
40

Growth capital/late stage deals grew


51% from 57 in Q2 2010 to 85 in Q2
2011. More noteworthy is the increase
in invested capital, which went up by a
staggering 71% from $1,688 million to
$2,896 million during the same period.

43

42

39

33
25

30

20

20

20
10

Q2 2006

Q2 2007

Q2 2008

Angel/ Seed

Q2 2009

Venture Capital

Q2 2010

A similar growth chart emerges for


Venture Capital deals as well, with deal
volume increasing by 30% and deal
volume by over 68% across the two
quarters in comparison.

Q2 2011

Private Equity

Figure 2: Private Equity Breakdown - Volume


$4,000

Angel investing reached a record high


of 8 deals worth $4 million ever seen in
the second quarter of any year. For the
purpose of comparison, there were no
angel deals recorded during Q2 2010.
The analysis however is subject to lack
of disclosure that exists for Angel
investments, the count and value of
which may be significantly higher for
any given period than that recorded
from publicly disclosed sources.

$3,416

$3,500

$2,896

$3,000
$2,551

$2,500
$1,844

$2,000

$1,688

$1,500

$1,149

$1,000
$0 $87

$117
$6

$210
$2

$94
$2

$147
$0

$247
$4

Q2 2006

Q2 2007

Q2 2008

Q2 2009

Q2 2010

Q2 2011

$500
$0

Angel/ Seed

Venture Capital

Private Equity

Figure 3: Private Equity Breakdown - Value

$16

$50

$14

$15

$45

$12
$11

$10
$8

$10

$10

$10
$9

$6

The median deal amount


increased 10% from $10
million in Q2 2010 to $11
million in Q2 2011.
The average deal value
increased 21% from $24
million to $29 million
during the same period.

Figure 5: Median Deal Amount ($ mn)


$4
$2

$0

$46

$40
$35
$30

$31
$29

$25

$26

$20

$24
$21

$15

$10
$5
$0

Q2
2006

Q2
2007

Q2
2008

Q2
2009

Q2
2010

Q2
2011

Q2
2006

Q2
2007

Q2
2008

Q2
2009

Q2
2010

Q2
2011

Figure 4: Median Deal Amount ($ mn)

VCCEdge | COPYRIGHT 2011 All rights reserved

Deal Type Analysis


Figure 6: Transactions by Deal Size

Q2 2011
Q2 2010
Q2 2009
Q2 2008

Q2 2007
Q2 2006
0%

10%

20%

30%

Undisclosed

40%

Under $5m

Private Equity deals under $50


million accounted for 67% of
total deal volume in Q2 2011,
with big ticket deals ($100
million and above) accounting
for another 6.6%.

50%

$5 - $25 m

60%

70%

$25 - $50 m

$50 - $100 m

80%

90%

100%

$100+

Q2 2006

Q2 2007

Q2 2008

Q2 2009

Q2 2010

Q2 2011

Undisclosed

23

21

23

10

14

27

Under $5m

22

15

31

26

24

32

$5 - $25 m

24

39

46

16

32

46

$25 - $50 m

10

11

16

12

11

14

$50 - $100 m

$100+

Figure 7: Total Investment by Deal Size ($mm)

Q2 2011
Q2 2010
Q2 2009
Q2 2008
Q2 2007
Q2 2006
0%

10%

20%

30%

40%

Under $5m

$5 - $25 m

50%

$25 - $50 m

60%

70%

$50 - $100 m

$100+

Q2 2006

Q2 2007

Q2 2008

Q2 2009

Q2 2010

Q2 2011

Under $5m

48

39

63

49

51

65

$5 - $25 m

301

504

592

170

363

587

$25 - $50 m

327

322

478

432

354

438

$50 - $100 m

244

323

451

166

299

578

$100+

1011

2352

1179

430

768

1480

80%

90%

100%

Big-ticket deals ($100 million


and above) constituted 47%
of the total private equity
capital invested in Q2 2011.

VCCEdge | COPYRIGHT 2011 All rights reserved

Sector Analysis
Figure 8: Private Equity Sectoral Analysis
1200

35

1000

30
25

800

20
600
15
400

10

200

Value ($ mm)

Volume

Figure 9: Top 5 Sectors by Value ($mm)

Financials
$334

Information
Technology
$376

Industrials
$989

Consumer
Discretionary
$479

The sector to receive the least amount of private equity capital ($1
million) is Telecommunication Services, followed by
Energy ($30 million) and Consumer Staples ($62 million).

Materials
$664

Financials
19

Topping the deal value chart is the Industrials sector with a


cumulative investment of $989 million; with Materials at a
distant second with $664 million. This is followed by
Consumer Discretionary, Information Technology, and
Financials with investments worth $479 million, $376
million, and $334 million, respectively.

Industrials
28

Information
Technology
27

Materials
10

On the deal volume front, Consumer Discretionary, Industrials,


and Information Technology witnessed some aggressive
dealmaking during the period, with the three together
accounting for nearly 61% of the total 137 deals recorded
during the quarter. Financials and Materials too saw
significant deal activity with 19 and 10 deals, respectively.

Consumer
Discretionary
29

Figure 10: Top 5 Sectors by Volume

VCCEdge | COPYRIGHT 2011 All rights reserved

Top 10 Private Equity Investments


Date

Target

Buyer

Deal Value
($mm)

29/06/2011

Welspun Corp Ltd.

Apollo Management LP

286.87

Steel

24/05/2011

Soma Enterprise Ltd., Three


Highway Projects

Morgan Stanley Infrastructure Partners

200

Construction &
Engineering

11/5/2011

GMR Airports Holding Pvt. Ltd.

Standard Chartered Private Equity Ltd., Jacob Ballas


Capital India Pvt. Ltd., JM Financial India Fund, Old
Lane India Opportunities Funds

200

Airport Services

27/04/2011

Two Iron Ore Mines, Goa and


Karnataka

Halcyon Group

200

Diversified Metals
& Mining

12/5/2011

Diligent Power Pvt. Ltd.

Warburg Pincus India Pvt. Ltd.

150

Construction &
Engineering

16/05/2011

3i Infotech Financial Services Inc.,


Billing and Payments Unit

Cerberus Capital Management, L.P.

137

Application
Software

5/5/2011

Oriental Tollways Pvt. Ltd.

Baring Private Equity Partners India Ltd.

105.9

Construction &
Engineering

27/06/2011

Classic Stripes Pvt. Ltd.

Navis Capital India Pvt. Ltd.

100

Auto Parts &


Equipment

11/4/2011

Continental Warehousing Corp.


(Nhava Sheva) Ltd.

Warburg Pincus India Pvt. Ltd.

100

Air Freight &


Logistics

23/05/2011

Magma Fincorp Ltd.

International Finance Corp., Kohlberg Kravis Roberts


& Co.

98.25

Consumer Finance

Sub-Industry

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Regional Analysis

Top 5 Cities

Top 5 States

City

Volume

Value ($ mm)

State

Volume

Value ($ mm)

Mumbai

30

813

Maharashtra

40

920

Bangalore

20

111

Karnataka

23

355

New Delhi

13

268

Delhi

14

277

Gurgaon

159

Haryana

13

177

Hyderabad

353

Andhra Pradesh

355

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Private Equity Exits


Private Equity Exits continue to remain sluggish this year. Second quarter of the year recorded an exit value of $620
million coming from 26 exit deals, representing a dip of 54% in exit value and 37% in exit volume compared to the 41
exits worth $1.35 billion in the second quarter of last year. The $620 million of exits seen during the quarter include the
$500 million exit by Blackstone Advisors in Intelenet Global Services. Compared to the previous quarter (Q1 2011), exit
value and volume dipped by 17% and 16%, respectively.

$1,800

60

$1,600

$1,546
48

$1,400

$1,350

40
38

$1,200

39

50
45

41

40

$1,069
31

$1,000

31

31

30
$655

$865

$800

25

$775

24

$774

$873

26

$776

$749

22

$664

$870

20

$600

$620

18

20
$497

$489

13

$400

30

15

14

$360

$333

10

10
$200

$168

$163

$66

$67
$20

$0
Q1

Q2

Q3

Q4

2006

Q1

Q2

Q3

2007

Q4

Q1

Q2

Q3

Q4

0
Q1

Q2

2008

Value ($mm)

Q3

2009

Q4

Q1

Q2

Q3

Q4

2010

Q1

Q2

2011

Volume

Figure 11: Private Equity Exits

Besides Blackstones exit in Intelenet Global Services, the other significant exit seen during the quarter is the $30
million made by India Development Fund from the sale of 20% stake in HealthCare Global Enterprises Ltd. to
PremjiInvest Fund and India Build-Out Fund-I. This is followed by Merlion India Fund selling its 7.08% stake in Mumbai
based ABG Shipyard Ltd. through the facilities of the stock exchange for a total consideration of $28.04 million.

VCCEdge | COPYRIGHT 2011 All rights reserved

10

Deal Type Analysis


On a deal volume scale, Q2 2011 saw a decline in the number of M&A, Open Market, and Secondary Sale exits, while
the number of IPO and Buyback exits went up, as compared to the corresponding quarter last year. The exit types to
witness significant decline in deal volume are M&A and Open Market, declining by 57% and 50%, respectively.
25

20

20
16
14

15

13

13

10

8
6

4
3

2
1

Q2 2006

Q2 2007

Q2 2008
Buyback

IPO

M&A

Q2 2009
Open Market

Q2 2010

Q2 2011

Secondary Sales

Figure 12: PE Exits by Volume

In terms of deal value, the sharpest decline was seen in Buyback exits with exit value dipping from $786 million in Q2
2010 to a mere $12 million in Q2 2011. The biggest Buyback exit of Q2 2010 was the $694.3 million sale of DLF Assets
Ltd. to DLF Ltd. by Symphony Capital Partners. Open market exits too took a huge hit with just $73 million worth of
exits being recorded this quarter as against the $276 million recorded in Q2 2010. The value of M&A exits on the other
hand nearly doubled from $251 million to $500 million during the same period, all of it coming from Blackstones exit in
Intelenet Global Services.
$900
$786

$800
$700
$596

$600

$553
$500

$485

$500
$400
$298

$276
$251

$300
$213

$182

$200
$100
$1

$1

$1

$33

$39

$150
$69

$0

$73

$67
$30

$18 $13

$37
$0

$0

$0

$12 $0

$35

$0
Q2 2006

Q2 2007

Q2 2008
Buyback

IPO

M&A

Q2 2009
Open Market

Q2 2010

Q2 2011

Secondary Sales

Figure 13: PE Exits by Value ($ mm)

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11

Sector Analysis
Secondary
Sales

Exit Volume

Exit Value
($mm)

Exit Volume

Exit Value
($mm)

Exit Volume

Exit Value
($mm)

Open Market

Exit Value
($mm)

M&A

Exit Volume

IPO

Exit Value
($mm)

Buyback
Exit Volume

Sector

Consumer Discretionary

NA

3.14

5.13

Consumer Staples

NA

Energy

NA

NA

Financials

11.71

Health Care

NA

20.21

30

Industrials

NA

41.85

NA

Information Technology

500

8.1

Consumer Discretionary

NA

3.14

5.13

Figure 14: Sectoral Analysis - Value (S mm)

Consumer
Discretionary
$8

Figure 15: Sectoral Analysis - Volume

Financials
$12
Information
Technology
3

Health Care
$50

Industrials
$42

Consumer
Discretionary
5

Industrials
5
Information
Technology
$508

Financials
5

Health Care
5

Information Technology emerged at the top of the deal


value scorecard for private equity exits with an exit
value of $508 million, of which $500 million comes
from the sale of Intelenet Global Services to Secro
Group by Blackstone Advisors.

The maximum activity in terms of number of exits


was seen in Industrials, Healthcare, Consumer
Discretionary, and Financials, each with 5 exits.
Following these was Information Technology with 3
exits.

Other sectors to be witness significant capital


realizations by private equity investors are Healthcare
($50 million), Industrials ($42 million), Financials ($12
million), and Consumer Discretionary ($8 million).

VCCEdge | COPYRIGHT 2011 All rights reserved

12

Top 10 Private Equity Exits


Date

Target

Seller

Exit Type

Deal Value
($ mm)

Sub-Industry

31/05/2011

Intelenet Global
Services Pvt. Ltd.

Blackstone Advisors India Pvt. Ltd.

M&A

500

Data Processing &


Outsourced Services

8/4/2011

HealthCare Global
Enterprises Ltd.

India Development Fund

Secondary
Sales

30

Health Care Facilities

24/06/2011

ABG Shipyard Ltd.

Merlion India Fund

Open Market

28.04

24/06/2011

Max India Ltd.

Warburg Pincus India Pvt. Ltd.

Open Market

19.95

Health Care Services

13/05/2011

Havells India Ltd.

SAIF Partners

Open Market

13.81

Electrical Components
& Equipment

Intel Capital

Open Market

8.1

Data Processing &


Outsourced Services

Buyback

6.67

Investment Banking &


Brokerage

Secondary
Sales

5.13

Cable & Satellite

Buyback

4.91

Diversified Capital
Markets

Open Market

2.44

Hotels, Resorts &


Cruise Lines

13/04/2011 Persistent Systems Ltd.

2/6/2011

28/04/2011

31/05/2011

20/05/2011

SMC Wealth
Sanlam Investment Management Pty Ltd.
Management Services
Ltd.
DEN Networks Ltd.

Standard Chartered IL&FS Asia


Infrastructure Growth Fund

Sanlam Investment
Sanlam Investment Management Pty Ltd.
Management India Ltd.

Sayaji Hotels Ltd.

Clearwater Capital Partners LLC

Construction & Farm


Machinery & Heavy
Trucks

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13

Fund Activity (Domestic)


On The Road
Fund Name

Fund Size ($mm)

General Partner

India Business Excellence Fund II

175

Motilal Oswal Private Equity Advisors Pvt. Ltd.

Shapoorji Pallonji Real Estate Fund

500

Shapoorji Pallonji Investment Managers Ltd.

Tara India Fund IV

300

IL&FS Investment Managers Ltd.

The Morpheus Tritiya

0.77

Morpheus Venture Partners

IvyCap Ventures Advisors Pvt. Ltd.

75

IvyCap Ventures Advisors Pvt. Ltd.

Funds Raised

Fund Name

Fund Size
($mm)

General Partner

Amount Raised
($mm)

Matrix India Fund II

300

Matrix Partners India

300

Golden Gujarat Growth Fund I

223

GVFL Ltd.

Tata Opportunities Fund

NA

Tata Capital Private Equity

450

(First Close)

Special Situations Fund II

100

Avendus PE Investment Advisors Pvt. Ltd.

44.7

(Final Close)

ASK Real Estate Special Opportunities Fund

220

ASK Property Investment Advisors Pvt. Ltd.

114.3

45

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(Final Close)
(First Close)

(First Close)

14

Mergers & Acquisitions Overview


Mergers & Acquisitions in India in the second quarter of 2011 seem to have declined significantly compared to the
preceding quarter. A quick look at the graph below suggests the $11 billion of M&A deal value in Q2 2011 is nearly half
of the $21.88 billion seen in Q1 2011, even though the deal volume went up by 5 deals between the two quarters. The
surge in deal value in the first quarter however can be attributed to two mega-ticket deals - the $7.2 billion acquisition
of the Oil & Gas blocks of Reliance Industries by BP Plc, and the $5 billion acquisition of Essars stake in Vodafone Essar
by the Vodafone Group. No such deals were seen in the second quarter of 2011.
Compared to the corresponding period last year (Q2 2010), theres been a decline of 15% in deal value while the deal
volume has gone up marginally by 3.7%, or 7 deals.

$30,000

250

$24,069

$25,000

198

195

164

$15,414

$21,879

$20,154

$19,644

149

146

133

$15,000

163

157

198

200
179

$20,000

193

191

132

150

132

125

107 121

121

110
103

$12,953

95

$11,523

$10,000

$10,992

104

$10,142
$8,307

100

$7,751
$6,914

$5,395

$5,000
$3,047

$5,533

$5,309 $5,263

50

$4,141 $4,280
$3,035 $3,001
$1,732

$0

Q1

Q2

Q3

2006

Q4

Q1

Q2

Q3

2007

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2008

Value ($mm)

Q3

2009

Q4

Q1

Q2

Q3

Q4

Q1

2010

Q2

2011

Volume

Figure 16: Mergers & Acquisitions Overview

The biggest M&A deal during the quarter was the acquisition of Australia based Tads Corner and Kevins Corner coal
mines owned by Hancock Coal Pty Ltd. and Hancock Galilee Pty Ltd. for a total consideration of $2.4 billion by GVK
Power & Infrastructure Ltd. Another billion dollar deal recorded during the period was the $1.97 billion acquisition of
Adani Abbot Point Terminal Pty. Ltd. by Mundra Port and Special Economic Zone.

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15

Deal Type Analysis


120
103

98

100
78

80

72
66

63

60

53

51

47

40

29

28

25

22

18

20

64

26

23

22

The
value
of Outbound
deals surged
significantly from $4.85 billion in Q2 2010 to
$7.75 billion in Q2 2011, representing an
increase of nearly 60%. Inbound and domestic
deals on the other hand dipped by similar
percentages during the same period.

Q2 2006

Q2 2007

Q2 2008

Domestic

Q2 2009

Inbound

Q2 2010

Q2 2011

Outbound

Figure 17: Deal Type by Volume

$7,750

$9,000

M&A value of Inbound deals declined 63% from


$4.57 billion in Q2 2010 to $1.69 billion in Q2
2011, while the deal volume increased by 3
deals. Similarly, on the Domestic front the deal
value dipped by 60% from $3.31 billion to
$1.32 billion during the same period, while the
deal volume went up by 5 deals.

$8,000

$4,851

$4,566

$1,321
$1,690

$3,308

$1,000

$572

$766

$1,687

$1,875
$884

$2,000

$907

$3,000

$1,433
$1,779

$4,000

$2,774

$5,000

$2,605

$4,564

$6,000

$4,763

$7,000

The median deal amount increased from


$18 million to $21 million and the
average deal value dropped by 14% from
$136 million to $117 million as compared
to Q2 2010.

$0

Q2 2006

Q2 2007

Q2 2008

Domestic

Q2 2009

Inbound

Q2 2010

Q2 2011

Outbound

Figure 18: Deal Type by Value (S mm)


$25

$180
$21

$20

$18
$17

$15

$18

$158

$160
$140

$136

$128

$117

$120

$14

$100

$12

$80

$10

$75
$63

$60
$40

$5

$20
$0

$0
Q2 2006

Q2 2007

Q2 2008

Q2 2009

Figure 20: Median Deal Amount ($ mm)

Q2 2010

Q2 2011

Q2 2006

Q2 2007

Q2 2008

Q2 2009

Q2 2010

Q2 2011

Figure 19: Average Deal Amount ($ mm)


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16

Deal Type Analysis


Q2 2011
Q2 2010
Q2 2009
Q2 2008
Q2 2007
Q2 2006
0%

10%

20%
Under $5m

30%

40%

50%

$5 - $25 m

$25 - $50 m

60%

$50 - $100 m

70%

$100+

80%

90%

100%

Undisclosed

Figure 21: Number of transactions by Deal Size

Q2 2006

Q2 2007

Q2 2008

Q2 2009

Q2 2010

Q2 2011

Undisclosed

13

23

22

12

30

34

Under $5m

21

22

23

15

26

17

$5 - $25 m

11

14

15

$25 - $50 m

$50 - $100 m

11

13

18

18

20

$100+

40

76

84

59

96

104

Deals
under
$100
million
accounted for 37% of the total
deal flow in Q2 2011, while
small-sized deals (under $5
million) accounted for 17%.

Figure 22: Total investment by Deal Size


Q2 2011
Q2 2010
Q2 2009
Q2 2008
Q2 2007
Q2 2006
0%

10%

20%

30%
Under $5m

Big- ticket deals ($100 million


and above) accounted for
87% of the total disclosed
M&A deal value in Q2 2011.

40%
$5 - $25 m

50%

60%

$25 - $50 m

$50 - $100 m

70%

80%

90%

100%

$100+

Q2 2006

Q2 2007

Q2 2008

Q2 2009

Q2 2010

Q2 2011

Under $5m

27

51

46

17

57

71

$5 - $25 m

235

282

290

183

335

253

$25 - $50 m

117

328

362

230

495

491

$50 - $100 m

368

383

312

443

420

584

$100+

3,393

10,479

9,132

2,163

11,645

9,593

VCCEdge | COPYRIGHT 2011 All rights reserved

17

Sector Analysis
$5,000

40

$4,500

35

$4,000

30

$3,500
$3,000

25

$2,500

20

$2,000

15

$1,500

10

$1,000

$500

$-

Value ($ mm)

Volume

Figure 23: Sectoral Analysis - M&A

Health Care
$608
Materials
$2,653

Energy
$4,431

Consumer
Discretionary
31

Materials
35

Financials
18
Information
Technology
30

Information
Technology
$1,512

Industrials
$854

Figure 24: Top 5 Sectors by Value (S mm)

Industrials
34

Figure 25: Top 5 Sectors by Volume

Energy, Materials and Information Technology were the most targeted sectors for acquisitions with deals worth
$4.43 billion, $2.65 billion, and $1.51 billion, respectively. Together, they accounted for 78% of the total M&A deal
value during the quarter. Industrials and Health Care were the other sectors to witness significant M&A value in Q2
2011.
The most active sector in terms of deal volume was Materials with 35 deals, followed by Industrials and Consumer
Discretionary with 34 and 31 deals, respectively. Other sectors contributing significantly to the deal volume were
Information Technology (30) and Financials (18). Together, the top 5 sectors accounted for nearly 75% of the total
deal volume during the quarter.

VCCEdge | COPYRIGHT 2011 All rights reserved

18

Top 10 Mergers & Acquisitions


Date

1/6/2011

Target

M&A
Type

Buyer

Hancock Prospecting Pty Ltd., Tads


GVK Power & Infrastructure Ltd.
Corner and Kevins Corner Coal Mines

Deal Value
($mm)

Sub-Industry

Outbound

2400

Coal & Consumable


Fuels

3/5/2011

Adani Abbot Point Terminal Pty. Ltd.

Mundra Port and Special


Economic Zone Ltd.

Outbound

1973

Coal & Consumable


Fuels

31/05/2011

Intelenet Global Services Pvt. Ltd.

Serco Group Plc.

Inbound

634

Data Processing &


Outsourced Services

6/4/2011

Headstrong Inc.

Genpact Ltd.

Outbound

550

IT Consulting & Other


Services

18/04/2011

Domsjo Fabriker AB

Thai Rayon Public Co. Ltd., Indo


Bharat Rayon, Grasim Industries
Ltd.

Outbound

340

Forest Products

31/05/2011

Luminous Power Technologies Ltd.

Schneider Electric SA

Inbound

310

Heavy Electrical
Equipment

11/4/2011

Ammonia-Urea Fertilizer
Manufacturing Complex

Tata Chemicals Ltd.

Outbound

290

Fertilizers &
Agricultural
Chemicals

23/05/2011

J. B. Chemicals & Pharmaceuticals


Ltd., Russian CIS & OTC Business

Cilag AG

M&A

207

Pharmaceuticals

15/04/2011

Midwest-CBK Inc.

Primacy Industries Ltd.

Outbound

200

Household Products

17/04/2011

Kanoria Chemicals & Industries Ltd.,


Chlor Alkali Business

Aditya Birla Chemicals Ltd.

Domestic

188

Specialty Chemicals

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19

Regional Analysis
Top 5 States
City

Volume

Value ($ mm)

Maharashtra

46

1159.45

Karnataka

15

141.97

Delhi

14

713.25

Andhra Pradesh

13

4.21

Gujarat

231.08

Top 5 Cities
State

Volume

Value ($ mm)

Mumbai

35

1141

New Delhi

14

713

Bangalore

13

109

Hyderabad

11

Chennai

180

VCCEdge | COPYRIGHT 2011 All rights reserved

20

Sector Spotlight

Automobiles & Components


$1,000
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0

$859

$600
$500

$37

$9

1
$100

$5

9
6

Q2

Q3

$200

Q4

Q1

2010

$121

$100

$0
0

Q1

13

$400
$300

14
12
10
8
6
4
2
0

$542
$469

$11

$22

$13

Q1

Q2

$0

Q2

Q1

Q2

2011

Q3

Q4

2010

2011

Private Equity

Mergers & Acquisitions

Banks
$250

7
6

$200

$150

$50

$194
3

$100
2

$64

$9

$6

$2

$0

Q1

Q2

Q3

Q4

$0

Q1

2010

5
$953

$1,000.00

$600.00

$400.00

$200.00

$800.00

$1,200.00

$560

$0

$17

$0

1
$0

$0.00

Q2

Q1

Q2

2011

Q3

Q4

Q1

2010

Private Equity

Q2
2011

Mergers & Acquisitions

Capital Goods
16
$593

$700

$600
$500
$400

13

$532
9

$343

13

14

$393
$261

$300
$147

$200
$100
$0
Q1

Q2

Q3
2010

Private Equity

Q4

Q1

Q2
2011

18
16
14
12
10
8
6
4
2
0

2000
1800
1600
1400
1200
1000
800
600
400
200
0

32
$1,804

35

$1,634
23

22

30

23
20

16

25
20

$713

15
$455

$366

$258

10
5
0

Q1

Q2

Q3
2010

Q4

Q1

Q2
2011

Mergers & Acquisitions

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21

Commercial & Professional Services


$90
$80
$70
$60
$50
$40
$30
$20
$10
$0

9
8
7
6
5
4
3
2
1
0

$79
8

6
$69
3

3
$27
1

$9

$9

$2

Q1

Q2

Q3

Q4

Q1

2010

$400
$350
$300
$250
$200
$150
$100
$50
$0

Q2

$366
12

12

10
8

$72

$65
$31

14

$25

$2

0
Q1

Q2

2011

Q3

Q4

Q1

2010

Q2
2011

Private Equity

Mergers & Acquisitions

Consumer Durables & Apparel


$60

$57

$50

$44

$40

$30
$18

$20
2

$10

$0
0

Q1

$1 1

$0

$0
Q2

Q3

Q4

Q1

2010

8
7
6
5
4
3
2
1
0

$120

11
$103

$100

$100

12
10

$89

$80
$60

8
5
4

$40
$20

4
$14

$13

$1

$0

Q2

2
0

Q1

Q2

2011

Q3

Q4

Q1

2010

Q2
2011

Private Equity

Mergers & Acquisitions

Consumer Services
$300

12

$263

$250

9
$180

$200
$150

9
7
$136

$26

$50
$0
Q1

Q2

Q3
2010

Private Equity

Q4

$120

12

$100

10
8
6

$89

$78

$100

14

Q1

Q2
2011

11
$103

$100

12
10

$89

$80
$60

$40

$20

$0

8
5
4

6
4

$14

$13

$1

2
0

Q1

Q2

Q3

2010

Q4

Q1

Q2

2011

Mergers & Acquisitions

VCCEdge | COPYRIGHT 2011 All rights reserved

22

Diversified Financials
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0

17
$395

$261

11

10
11
$175

$109

Q1

Q2

Q3

1
$2

$36

Q4

Q1

2010

18
16
14
12
10
8
6
4
2
0

$1,000
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0

Q2

13

13

$864
14

12

10

$401

Q1

$57

$32

Q2

Q3

2011

Q4

$56

$56

Q1

Q2

2010

16
14
12
10
8
6
4
2
0

2011

Private Equity

Mergers & Acquisitions

Energy
$50
$45
$40
$35
$30
$25
$20
$15
$10
$5
$0

$43

$12,000

$30

$27
1

$20

1
0
$0

Q1

Q2

Q3

Q4

Q1

2010

10

$6,000

$4,431

$4,000
$2,000

$1,173

6
4

$1,766

$150

$0

Q2

14
12

$9,650

$8,000

$5

$10,000

13

$13,156

$14,000

0
Q1

Q2

2011

Q3

Q4

Q1

2010

Q2
2011

Private Equity

Mergers & Acquisitions

Food & Staples Retailing


$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$0

$90

$30

$26
3

$25
1

1
$25
0
$0

0
$0

0
$0

0
$0

Q1

Q2

Q3

Q4

Private Equity

Q2
2011

2
1

$10
0

2010

$15

$5
Q1

$20

0
$0

0
$0

0
$0

$2

0
$0

$0

0
Q1

Q2

Q3

2010

Q4

Q1

Q2

2011

Mergers & Acquisitions

VCCEdge | COPYRIGHT 2011 All rights reserved

23

Food, Beverage & Tobacco

$100

$109

$120
$92
5

$80

5
$66

5
4

$60

$58

$32

$40
$20

$8

$0

Q1

Q2

Q3

Q4

Q1

2010

8
7
6
5
4
3
2
1
0

$350
$300
$250

14

12

$313

12

$200

8
$171

$150
$100

$61

$48

$50

8
6
4

$33

$21

$0

Q2

10

0
Q1

Q2

2011

Q3

Q4

Q1

2010

Q2
2011

Private Equity

Mergers & Acquisitions

Health Care Equipment & Services


$131

$140

$120
$100

$103
5

$80

$60

$47

$40

$81
$47
2

$27

$20
$0
Q1

Q2

Q3

Q4

Q1

2010

9
8
7
6
5
4
3
2
1
0

$1,291

$1,400

$1,200

$1,000
$800

$694

$600

4
$353

$400

$210

$200

$63

$24

$0

Q2

Q1

Q2

2011

Q3

Q4

Q1

2010

9
8
7
6
5
4
3
2
1
0

Q2
2011

Private Equity

Mergers & Acquisitions

Household & Personal Products


$6

$5

$5

$5
$4

$2
$1

$658

$600

$500

$3

$700

5
$337

$400
3

$300

$200
$0

0
$0

$0

0
$0

$100

$0

0
Q1

Q2

Q3
2010

Private Equity

Q4

Q1

Q2
2011

$59

$86

2
$100
$13

$0
Q1

Q2

Q3

2010

Q4

Q1

9
8
7
6
5
4
3
2
1
0

Q2

2011

Mergers & Acquisitions

VCCEdge | COPYRIGHT 2011 All rights reserved

24

Insurance
$120

$100

$100
$80

$60

$40
$20

0
$0

0
$0

$0

0
$0

0
$0

Q2

Q3

Q4

Q1

Q2

$0

Q1

2010

$800
$700
$600
$500
$400
$300
$200
$100
$0

$680

3
2

2
1

$67
$0

$0

0
$0

$23

0
Q1

Q2

2011

Q3

Q4

Q1

2010

Q2
2011

Private Equity

Mergers & Acquisitions

Materials
$664

$700

10

$600
$500
$400
$300
$200
$100

$226

3
2

1
$35

$26

$50

Q3

Q4

$55

$0
Q1

Q2

Q1

2010

12

$3,000

10

$2,500

$2,230

$2,000

22

$1,500

$1,000

$500

$0

$2,653

18

Q2

35
$1,685
20

20

$1,760
17

$798

$342

Q1

Q2

2011

Q3

Q4

Q1

2010

40
35
30
25
20
15
10
5
0

Q2
2011

Private Equity

Mergers & Acquisitions

Media
$180
$160
$140
$120
$100
$80
$60
$40
$20
$0

$170
10
7

12
10
8

$96

6
3

$93

$8

$45

$14

2
0

Q1

Q2

Q3
2010

Private Equity

Q4

Q1

Q2
2011

$90
$80
$70
$60
$50
$40
$30
$20
$10
$0

$82

13

13
$75
10

$66

14

10

12

$40

10
6

6
4

$14
$0

2
0

Q1

Q2

Q3

2010

Q4

Q1

Q2

2011

Mergers & Acquisitions

VCCEdge | COPYRIGHT 2011 All rights reserved

25

Pharmaceuticals, Biotechnology & Life Sciences


$80
$70
$60
$50
$40
$30
$20
$10
$0

$74
$65

9
8
7
6
5
4
3
2
1
0

4
$27

$26

3
$5

$0

Q1

Q2

Q3

Q4

Q1

13

13
9

8
$1,119

Q1

$539

$395

Q2

2010

18

$3,749

$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0

$398

$101

Q2

2011

Q3

Q4

Q1

2010

20
18
16
14
12
10
8
6
4
2
0

Q2
2011

Private Equity

Mergers & Acquisitions

Real Estate
13

$700
$600

10

$400
$200

12

$573

$500
$300

14

11

$346
4

$369

$181
$122

$94

$100
$0

4
2
0

Q1

Q2

Q3

Q4

Q1

2010

$800
$700
$600
$500
$400
$300
$200
$100
$0

Q2

11

12

$701

10

8
6

$356

8
6
4

4
$88
$24

$23

$2

2
0

Q1

Q2

2011

Q3

Q4

Q1

2010

Q2
2011

Private Equity

Mergers & Acquisitions

Retailing
$120

$105

$100
5

$80
$60

$73

$71

4
$40

3
$34

$40
$20

2
$8

$0
Q1

Q2

Q3
2010

Private Equity

Q4

Q1

Q2
2011

9
8
7
6
5
4
3
2
1
0

$250

6
$197

$200

6
5

$150

$100
$50

$74

$8

0
$0

$0

$0

$0

1
0

Q1

Q2

Q3

2010

Q4

Q1

Q2

2011

Mergers & Acquisitions

VCCEdge | COPYRIGHT 2011 All rights reserved

26

Software & Services


$400
$350
$300
$250
$200
$150
$100
$50
$0

$343

25

26

19

17

20

16
13

$131

15

10
$78

30

$98

10

$93

$46

5
0

Q1

Q2

Q3

Q4

Q1

2010

38

$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0

38
$1,428
28

$1,512
28

25

23

$501
$334

$230

Q2

Q1

Q2

2011

Q3

$233

Q4

Q1

2010

40
35
30
25
20
15
10
5
0

Q2
2011

Private Equity

Mergers & Acquisitions

Technology Hardware & Equipment


$33

$35
$30

$25

$15

$9

$10

$6

0
$0

0
$0

$0

Q4

Q1

0
Q2

Q3
2010

$100

$100

$60

2
1

$40
$20

$0
Q1

$120

$80

$20

$5

1
0

$0

$0

$2

1
0

1
$0

$0

$0

Q2

Q1

Q2

2011

Q3

Q4

Q1

2010

Q2
2011

Private Equity

Mergers & Acquisitions

Telecommunication Services
$350
$300

$304

$250

$200
$150

$112

$100
$50

$0

$9

$30
$1

$0

0
Q1

Q2

Q3
2010

Private Equity

Q4

Q1

Q2
2011

$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0

$13,958
7

4
2

Q1

$1,125

$729

Q2

Q3

2010

$5,490

$209

$0

Q4

Q1

8
7
6
5
4
3
2
1
0

Q2

2011

Mergers & Acquisitions

VCCEdge | COPYRIGHT 2011 All rights reserved

27

Transportation
$350
$300

$250

$211

$200
2

$150
$100
$50

$317

$300

$250

$200

$150

2
$50

$38

$47

$23

$0

Q1

Q2

Q3

Q4

Q1

2010

$50

$0

12
10

$196

8
6

4
3

$100

$280

10

$246

2
$34

$51
$20

4
2
0

Q2

Q1

Q2

2011

Q3

Q4

Q1

Q2

2010

2011

Private Equity

Mergers & Acquisitions

Utilities
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0

$388

$367

9
8
7
6
5
4
3
2
1
0

$306
5

$254
4
3

$132

$59

Q1

Q2

Q3

Q4

Q1

2010

$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0

$1,380

Q2

$18

Q1

Q2

2011

$17

$55

Q1

Q2

$226

$107

Q3

Q4

2010

8
7
6
5
4
3
2
1
0

2011

Private Equity

Mergers & Acquisitions

Semiconductors & Semiconductor Equipment


$4
$3
$3
$2
$2
$1
$1
$0

3.21

0
0

0
0

0
0

0
0

0
0

0
Q1

Q2

Q3
2010

Private Equity

Q4

Q1

Q2
2011

$1
$1
$1
$1
$1
$1
$0
$0
$0
$0
$0

0
0

0
0

0
0

0
0

0
0

Q1

Q2

Q3

Q4

Q1

Q2

2010

2011

Mergers & Acquisitions

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28

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29

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