1. December 2010
IMaCS Virtus Global Partners Newsletter
Transaction & Investment Flow between US and India
Recent Reports and
November 2010 saw a preponderance of Indian-bound acquisitions by US
News
companies by volume and US-bound acquisitions by Indian companies in
Obama Visit and Outlook for value. There were seven India-bound M&A transactions from the US and
Outsourcing three US-bound acquisitions from India. Most of these transactions were in
the areas of consumer goods, industrials and pharmaceuticals.
Indian Machine Tools Industry
These transactions reflect two key strategic themes that IVG Partners has
Industry Trends & News witnessed gaining strength in the last six months - First, large US
companies are seeking to expand their India presence inorganically, and
Dabur,Zensar,Fidelity,Namaste second, Indian mid to large-size companies are leveraging their financial
Laboratories,Glaxo,Fedex strength to access overseas markets aggressively.
HCL,Alcatel,Intelenet,CA A very interesting transaction last month was Dabur India's acquisition of
Tech,VenSat US-based Namasté Laboratories and its three subsidiary companies for
$100m. It provided Dabur an entry into the ethnic hair care market in the
Eaton,Ford,MicroSemi,Akbar US, Europe and Africa. This acquisition is in line with several Indian
Tools companies' strategy to build a global presence in the international market.
Kiehl's,Dr Reddy's,Merck,Sun With this acquisition, nearly 25 percent of Dabur's consolidated revenue
Pharma would be generated overseas.
Coca-Cola,Nestle Another transaction was FedEx Express's acquisition of the logistics,
distribution and express businesses of India-based AFL Pvt. Ltd. and its
About IVG Partners affiliate, Unifreight India Pvt. Ltd. This acquisition is expected to give
FedEx a more robust domestic ground network and added capabilities in
IMaCS Virtus Global India. This acquisition supports Fedex's strategy to better serve its
Partners(IVG Partners), a joint customers seeking to expand or enter the Indian market
venture between ICRA
Management Consulting US-based Avantor Performance Materials Holdings's acquisition of RFCL
Services and Virtus Global allows it to build on its current presence in the laboratory and
Partners, offers transaction pharmaceutical markets in India. RFCL is a leader in laboratory reagents
advisory to North American and and consumables as well as products for the medical diagnostics market in
Indian companies seeking cross India.
border growth and investment Dr Reddy's acquisition of GlaxoSmithKline's United States oral penicillin
opportunities.For more facility and product portfolio allows it to enter the United States penicillin-
information, please containing antibacterial market segment and serve the needs of its
visitwww.ivgpartners.com customers & patients through manufacturing capabilities that did not
previously exist within Dr. Reddy's.
Other US-India transactions include Cambrex Corp acquisition of Zenara
Pharmaceuticals for $20 million, Norwest Ventures' investment in Tutor
Vista and Zensar Technologies acquisition of Akibia for $66 million.
Welcome to the November 2010 edition of our US-India newsletter, which
focuses on key developments and issues affecting foreign direct
investments (FDI) and foreign institutional investments (FII) between the
US and India. For more information, please visitwww.ivgpartners.com

2. Recent Reports
Webinar: The Obama Visit, IT Outsourcing in India,and the Future
Outlook
The U.S.-India Business Council, NIIT Technologies, and IVG
Partners conducted an exclusive webinar on future outlook of
outsourcing in relation to President Obama's recent trip to
India. The discussion focuses on the ground realities of a
changing landscape and how the future of the IT outsourcing
corridor looks.
Indian Machine Tools Industry - Opportunities for US
Companies
India ranks 17th in production and 12th in the consumption of
machine tools in the world.The country is set to become a key
player in the global machine tools industry and is likely to see
substantial high-end machine tool manufacturing, even as
China keeps its lead in lower end volumes. Several firms have entered the
Indian machine tools sector, or announced plans for joint ventures or
wholly owned subsidiaries in India.
Industry Trends & News
Banking & Finance
Dabur buys US hair care co for $100 mn
Zensar buys US group PSI Holdings in $66M
deal,Eyes LatAm buy
Fidelity Dr Reddy's buys Glaxo's U.S. pencillin
business
CIL mulls acquisition of Massey Energy
FexEx to acquire AFL to step up India play
Technology & Telecom
HCL Tech bags $100mn deal in US
Alcatel makes India its hub for managed services
Intelenet to step up presence in India
CA Tech looking for expansion
Animation company VenSat opens US arm
Infrastructure & Manufacturing
Eaton to enter power distribution biz
Auto component maker Akbar Tools looks to buy
forging unit in US
Ford to export to 48 countries from India
Microsemi to ramp up Hyderabad R&D centre
Life Sciences
Dr Reddy's buy Glaxo's US penicillin business

3. Merck to take buyout route to grow here
US skincare brand Kiehl's enters India
Sun pharma gets US nod for allergy, BP drugs
Food and Beverage
Coca-Cola, Nestle JV launches bottled ice tea Nestea
IMaCS Virtus Global Partners
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New York, NY 10017
(646) 807-9290
www.ivgpartners.com