Warburg Pincus to Invest in India’s Tata Technologies

New York-based private equity firm Warburg Pincus will invest $360 million in Tata Technologies for a 43 percent stake, of which 30 percent will be acquired from Tata Motors, the parent company, and 13 percent from Tata Capital.

Tata Technologies Logo

Tata Technologies provides outsourced design, research and development services to the automotive, aerospace, and industrial machinery industries, and has about 8,500 employees in 23 countries. Warren Harris CEO of Tata Technologies said, “As the engineering services outsourcing market has matured from cost arbitrage and staff augmentation to increasingly high-end, strategic work, Tata Technologies has been there leading the charge.”

Vishal Mahadevia, managing director and co-head of Warburg Pincus India, said that the PE firm will leverage its global network and prior experience in the engineering services sector to help Tata Technologies grow both organically and through acquisitions, reports Bloomberg.

 

June 19, 2017   No Comments

India Best Country for Wall Street Says Forbes

New York-based Wisdom Tree, that pioneered the concept of fundamentally weighted Exchange Traded Funds (ETFs) and active ETFs, says  that its India Earnings (EPI) Fund is up 12.8% year-to-date and is ahead of China, Indonesia, Thailand, Vietnam, South Korea and Japan.

Gaurav Sinha, strategist for Wisdom Tree said, “If you look across the countries the IMF tracks worldwide, how many can you name that are growing over 7%? Iraq, Myanmar and India, and India is the only large economy that has those numbers and that you can buy in the equity markets.”

Indian Currency

Forbes reports: “Prime Minister Modi continues his plans to cut red tape, root out corruption, upgrade infrastructure, improve the fiscal position. No trade drama. No political crisis. No wars and rumors of wars. Reliable central bank. Stable government. A little expensive, but these days, who cares?”

India’s recent demonetization caused a temporary economic slowdown; however, recent company visits confirm that the economy is beginning to normalize.  Gerardo Zamorano, director of the investment group for Brandes in San Diego says, “From my perspective, that policy [demonitization] did not change the long term outlook on India that much. If you’re the owner of a car dealer or a restaurant business, this might affect you next week or so, but not for a decade. That’s how we think of India. It’s a long term investment for Brandes.”

Robin Parbrook, head of Asia ex-Japan equities at Schroders, says India remains the best domestic story in Asia at the moment. “The base is low in India, so the building of roads, provision of mobile telecom networks, formal banking to the masses, and rooting out of middlemen and corruption can all make a big difference, ” he feels.

 

 

 

March 5, 2017   No Comments

KKR’s New India Credit Fund Raises $160 Million

VCCircle reports that New York-based private equity firm Kohlberg Kravis Roberts & Co Ltd., (KKR) marked the pre-close of its second India-focused credit fund at $160 million, with the aim of finally closing  at $298 million  in a few months.  The company will invest in structured credit situations in either promoter holding entities or companies over two to three years.

B.V. Krishnan, head of KKR’s credit and capital markets business in India, told the Economic Times, “The idea is to back quality promoters and good businesses, helping them create a proper capital structure by cleaning up short-term liabilities, providing grown capital, and in some cases helping them consolidate their equity ownership.” The fund will have a private-equity approach for a debt market “which has done extremely well for us,” he added.

US Currency

KKR has been an active investor in India through both its PE and credit portfolio businesses; it is also active in the non-banking finance sector in India to give a push to its credit business.

 

January 9, 2017   No Comments

Revlon to Expand Retail Footprint in India

Operating in India since 1995, New York headquartered Revlon currently has 27 retail outlets across the country. The company will  launch a significant number of exclusive stores in India to bring up this number to 100 by the end of 2017, reports CosmeticsDeisgn-Asia.com.

Estimated at $10 billion, India’s cosmetics market is expected to grow at a compounded annual rate of 10 percent to $17 billion by 2020, says Boston-based market research company Trefis.

Nicholas Micallef, a beauty and personal care analyst at the U.K.-based Euromonitor International expects Revlon’s growth in India will accrue from hair colorants and natural products both of which are in high demand in India.

Revlon Hair Colors

Revlon Hair Colors

December 26, 2016   No Comments

Trend Council Debuts in India Textile Market

Apparel Resources reports that New York-based Trend Council, with its trend forecasting platform, will debut in India through their PR representative Troika Consulting which specializes in textile, apparel and fashion industry segments.

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Trend Council offers a subscription-based online Trend Tool for busy designers and fashion professionals delivering expert analysis and design inspiration for ladies, juniors, men’s, young men’s and active wear markets along with consulting services for client’s design needs.

The company compiles comprehensive forecasts making them the ‘go to’ for the fashion community. Their trend portal showcases long term and fast track trends, runway analysis, color, pattern and retail reporting. Some of its brand partners are: Victoria’s Secret, Skechers, Rue21, Zara, Next UK, and C&A.

 

 

 

December 16, 2016   No Comments