VCCEdge puts the Indian dealscape in context by bringing to you a set of statistics analyzing Indian M&A, private equity and venture capital activity during the second quarter of 2010.

1. A RESEARCH PUBLICATION | July 2010
QUARTERLY DEAL UPDATE
Q2,2010 Statistics and analysis of Private Equity, Venture Capita
and Mergers & Acquisitions in India

2. Contents
Page Number
I. Executive Summary 1
II. Private Equity Deal Flow
- Introduction 2
- Deal Breakdown 3
- Sectoral Breakdown 5
- Regional Outlook 9
- Top 5 Private Equity Deals 10
- 2010 YTD 13
III. Private Equity Exits 14
IV. M&A Round Up
- Introduction 15
- Deal Breakdown 16
Corporate Office:
Mosaic Media Ventures Pvt. Ltd. - Sectoral Breakdown 18
B-128, First Floor, Sector 5, Noida - Regional Outlook 22
Uttar Pradesh, India - 201 301
Tel: +91-120-4171111
- Top 5 M&A deals 23
Email Id: sales@vccedge.com - 2010 YTD 26
Dislaimer:
VCCEdge (the research arm of VCCircle.com) has used 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 VCCEdge’s 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.
COPYRIGHT © 2010 All rights reserved.

3. QUARTERLY REPORT
EXECUTIVE SUMMARY
VCCEdge puts the Indian dealscape in context by Mergers & Acquisitions…
bringing to you a set of statistics analyzing Indian
M&A, private equity and venture capital activity  The deal value touched $24.8 billion in Q2 2010
during the second quarter of 2010. taking the total M&A value in the first half of 2010
to $48.1 billion, up from $16.3 billion clocked in
Private Equity… the whole of 2009.
 Total private equity investment in India went up by  The number of domestic deals increased from 50
more than 130% from $0.99 billion in Q2 2009 to worth $1.7 billion in Q2 2009 to 91 deals worth
$2.3 billion in Q2 2010. $14.0 billion in Q2 2010.
 The median deal amount and the average value of  In terms of volume, the number of outbound
private equity deals in Q2 2010 increased to $11 deals tripled from 22 in Q2 2009 to 66 in Q2
million and $29 million respectively from $8 million 2010, while in terms of value the increase was
and $19 million in 2009. more than 13X.
 Financials, Energy & Utilities were the most  The number of inbound deals decreased to 23 in
targeted sectors for investment with deals worth Q2 2010 from 24 deals in Q2 2009 but at a higher
$510 million, $320 million and $306 million value.
respectively.
 Telecommunication Services, Healthcare and
 There were 30 exits worth $1.46 billion in Q2 2010
Financials were the most targeted sectors with
as compared to 29 exits worth $0.82 billion in Q2
deals worth $12 billion, $3.8 billion and $3.4 billion
2009.
respectively in the latest quarter.
1

4. PRIVATE EQUITY
INTRODUCTION
Private equity investments in India continued to display steady For the quarter ended June 2010, total announced deal value was
signs of recovery in the second quarter of 2010. Deal value $2.3 billion, a jump of more than 130% from $0.99 billion in Q2 2009.
continued to increase for the sixth consecutive quarter and is Total deal count in Q2 2010 also increased by 45% to 90 deals, up
nearly 3.5X the value seen in Q1 2009. from 62 in Q2 2009.
The first two quarters of 2010 have already witnessed $4.29 On a quarter-on-quarter basis, deal count remained nearly the
billion in deal value as compared to $4.32 billion in entire same at 90 as compared to 92 in Q1 2010 but deal value increased
2009. 17% from $1.97 billion to $2.3 billion.
Exhibit 1: Private Equity Deal Flow in India
6000 $5,512 250
$5,369
$5,333
5000
194 200
171
156
4000
139 $3,443
119 150
$2,793
Deal Volume
$2,605
Deal Value ($ Mn)
116 $2,686
3000 108 103
101 92
92 91 88 90
81 $1,968 100
$2,610 75
$1,710 $1,670 71 $1,454 $2,318
2000 68 67 $1,526 62
$1,249 $1,196
44 45 $986
$714
$730
$685
50
1000 $434
$386
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2005 2006 2007 2008 2009 2010
Value ($ mn) Volume
2

5. PRIVATE EQUITY
DEAL BREAKDOWN
Exhibit 3:Median Deal Amount ($ million)
16
14 15 15
Exhibit 2: Private Equity Breakdown 12
10 11
450 10 10
398 396 8
400 8
6 8
Angel
350
295 VC 4
300
PE 2
250 0
207
200 183
2005 2006 2007 2008 2009 Q1 2010 Q2 2010
150 108 124
91
100 80
67 66 Exhibit 4: Average Deal Size ($million)
50 35 24
15 20 20 13 20
6 5 0 50
0 45
46
2005 2006 2007 2008 2009 Q1 2010 Q2 2010 40
35
30 33
Total number of venture capital investments announced in 25 29
26 26
Q2 2010 stands at 24 with an announced value of $114 20
million as against 15 deals at an announced value of $70 15 19
million in Q2 2009 and 26 deals amounting to $160 million 10 14
in Q2 2008. 5
0
2005 2006 2007 2008 2009 Q1 2010 Q2 2010
The median deal amount and the average value in Q2 ’10 increased to
$11 million and $29 million respectively as the volume of larger deals
(particularly deals > $100million) increased. 3

6. PRIVATE EQUITY
DEAL BREAKDOWN
Exhibit 5: Number of transactions by Deal Size Exhibit 6: Total investment by Deal Size
Q2 2010 Q2 2010
Q2 2009 Q2 2009
Q2 2008 Q2 2008
Q2 2007 Q2 2007
Q2 2006 Q2 2006
Q2 2005 Q2 2005
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Undisclosed Under $5m $5 - $25 m
Under $5m $5 - $25 m $25 - $50 m $50 - $100 m $100+
$25 - $50 m $50 - $100 m $100+
Private equity deals under $50 million accounted for 88% of Larger deals ($50 million and above ) accounted for 63% of
total deal volume in Q2 2010. total capital invested in Q2 2010 as against 40% in Q2 2009.
Q2 2005 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2005 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010
Undisclosed 6 28 21 23 12 11
Under $5m 23 52 32 45 43 46
Under $5m 14 21 11 25 21 21
$5 - $25 m 243 293 506 552 158 433
$5 - $25 m 20 24 39 43 14 35
$25 - $50 m 120 384 295 439 389 388
$25 - $50 m 4 12 10 15 11 12
$50 - $100 m 0 4 5 7 3 5 $50 - $100 m 0 259 308 434 166 383
$100+ 0 3 5 6 1 6 $100+ 0 1618 1652 1216 230 1068
4

7. PRIVATE EQUITY
SECTORAL BREAKDOWN – Q2 2010
Healthcare, $27
7
Other sectors, which have significantly contributed to private
Financials
, $510
equity deal value in Q2 2010, are Consumer Discretionary and
Healthcare accounting for 24% of total deal value.
Consumer
Discretionary, $ Industrials, 11 ,0
297 Financials , 22
Healthcare, 11
Energy , $320
Utilities, $306
Exhibit 7: Top 5 Sectors by Deal Value in Q2 2010 ($mn)
Financials, Energy & Utilities were the most targeted sectors
for investment with deals worth $510 million, $320 million and Consumer
$306 million respectively in Q2 2010. Together, they accounted Information Discretionary, 17
for 49% of total private equity deal value during the quarter. Technology, 14
Exhibit 8: Sector Summary Exhibit 9: Top 5 Sectors by Deal Volume in Q2 2010
Sector Volume Value Average Deal Size
Consumer Discretionary 17 297 19
Consumer Staples 4 66 16
Energy 2 320 160 The most active sectors in terms of deal volume was Financials
Financials 22 510 26 with 22 deals in the quarter, followed by Consumer Discretionary
Health Care 11 277 35 and Information Technology with 17 and 14 deals respectively.
Industrials 11 233 23 Other sectors contributing to the deal volume were Industrials &
Information technology 14 64 6 Healthcare accounting for 11 deals each.
Materials 4 244 61
Telecommunication Services 1 1 1
Utilities 4 306 102 5

8. PRIVATE EQUITY
SECTORAL BREAKDOWN
ENERGY INDUSTRIALS
$350 2 2.5 $350 18 20 25
$320 $329
$300 2
2 $300 20
$250 $250 12
$239 $233
$200 1 1.5 $200 11 9 15
$150 1 $150
2 1 $129 $148 10
$100 $100 $114
0.5 11 5
$50 $26
$50
$20 $14
$0 0 $0 $3 0 $0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2009 2010
Volume Value ($ mn) Volume Value ($ mn)
 Energy accounted for 2.2% of deal volume but 13.8% of deal  Industrials accounted for 12.2% of deal volume in Q2 2010.
value in Q2 2010.
MATERIALS CONSUMER DISCRETIONARY
$300 10
15
$250 8 $500 20
$244 8 17 $442
$200 $400 15
6 $300
10 14
$297
$150 $238 10
2 4 $200 15 17
$100 2 $100 $166
1 $100 5
$50 $54 4 2 $58 $74
$35 $0 0
$17 1 $1
$0 0
Q1 Q2 Q3 Q4 Q1 Q2
Q1 Q2 Q3 Q4 Q1 Q2
2009 2010
2009 2010
Volume Value ($ mn)
Volume Value ($ mn)
 Materials saw 4 deals at a value of $244 million in Q2 2010.  Consumer Discretionary accounted for 18.9% of deal volume in
Q2, 2010.
6

9. PRIVATE EQUITY
SECTORAL BREAKDOWN
CONSUMER STAPLES FINANCIALS
$100 5 6 $600 25
$95 22
$80 4 5 $500 9 $510 20
17 22 $426
$60 3 $66 4 $400 $371 15
2 $50 2
3 $300 22
$40 4 2 $200 $224 10
11 $124 $162
$20 $18 1 $100 5
$10
$0 $1 0 $0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2009 2010
Volume Value ($ mn) Volume Value ($ mn)
 Consumer Staples accounted for 4.4% of deals in Q2 2010.  Financials accounted for 24.4% of deals in Q2 2010.
HEALTH CARE INFORMATION TECHNOLOGY
$350 21 $333 21 25
$300 12 18
$277 $300 20
$250 6 8 10 $250 15
6
$200 8 $200 15
5
$150 3 $136 11 6 $150 $146 9 $155 $151 10
$100 $82
4 $100 14
$50 $45 2 $50 $64 5
$30 $27 $27
$0 0 $0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2009 2010
Volume Value ($ mn) Volume Value ($ mn)
 Healthcare accounted for 12.2% of deals in Q2 2010.  Information technology accounted for 15.6% of deals in Q2 2010.
7

10. PRIVATE EQUITY
SECTORAL BREAKDOWN
TELECOMMUNICATION SERVICES UTLITIES
$300 5 $600 10
3 $271
$250 4 4 $500 $484 8
$200 $400 2 9 5
3 4 6
$150 $300 $306
0 1 $112 2 $222 4
$100 $200 $197
$50 $50 1 $100 4 2
1 1 2 $69 $62
$0 $1 $0 $1 0 $0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2009 2010
Volume Value ($ mn) Volume Value ($ mn)
 Telecommunication Services saw only one deal at an announced  Utilities saw 4 deals at an announced value of $306 million in Q2
value of $1 million. 2010. The sector accounted for 13.2% of deal value in Q2 2010.
As seen in Q1 2010, Q2 also saw a large number of deals in Financials and
Consumer Discretionary.
8

11. PRIVATE EQUITY
REGIONAL OUTLOOK – FIRST HALF 2010
An analysis of private equity investment in 2010
year to date by region, reveals that Maharashtra
stands on top with 56 private equity deals with a
total deal value of $1.19 billion. Amritsar
Jalandhar
This is followed by Karnataka with 25 deals valued Dehradun
Ludhiana
at $678 million and Tamil Nadu with 20 deals
valued at $479 million.
Top 5 States Jaipur
Kanpur Lucknow Top 5 Cities
State Volume Value ($mn) City Volume Value ($mn)
Maharashtra 56 1,187 Mumbai 48 1,118
Ahmedabad Bhopal
Karnataka 25 678 Indore
Bangalore 23 373
Baroda
Tamil Nadu 20 479 Chennai 17 20
Surat
Delhi 18 357 Mumbai Delhi 18 357
Andhra Pradesh 12 198 Pune Hyderabad Hyderabad 9 188
Vizag
Tier I
Bangalore Chennai
Mangalore Tier II
Mysore
Coimbatore
Cochin
9

12. PRIVATE EQUITY
TOP 5 DEALS IN Q2 2010
Exhibit 10: Top 5 Private Equity deals in Q2 2010
S No. Target Investor Value ($ Mn)
1 Tata Power Ltd., Coal SPV's Olympus Capital Holdings Asia 300
2 GMR Energy Ltd. Temasek Holdings Pte. Ltd. 200
3 National Stock Exchange of India Ltd. Temasek Holdings Pte. Ltd. 175
4 Avnija Properties Ltd. Kohlberg Kravis Roberts & Co. 166
5 247Park Project, HCC Real Estate Ltd. IL&FS Milestone Fund II 122
Top 5 deals accounted for nearly 42% of total private equity deal value in Q2, 2010.
Tata Power's Coal SPVs To Raise $300M From Olympus Capital
 Tata Power has struck a deal to raise $300 million by selling around 15% stake in two separate special purpose vehicles (Bhira
Investments Limited and Bhivpuri Investments Limited) to Olympus Capital Holdings Asia.
 Tata Power holds its interest in the KPC and Arutmin coal mines in Indonesia through these SPVs. In June 2007, the company had
acquired 30% stake in these coal mines for $1.23 billion.
The proceeds will be used for acquisition of coal mines and to retire debt.
The investment is through Class B shares with no dividend rights and a capital protection arrangement.
10

13. PRIVATE EQUITY
TOP 5 DEALS IN Q2 2010
Temasek Holdings to invest $200 MN in GMR Energy
 Temasek Holdings Pte. Ltd. will invest $200 million (INR 8.89 billion) in Mangalore based GMR Energy Ltd.
 Temasek will invest through its wholly-owned subsidiary Claymore Investments in a structured security that will be compulsorily
convertible into equity.
 The company plans to enhance its installed power generation capacity from the current 808 MW to more than 6,500 MW over
the next 3-4 years.
Temasek Holdings acquired 5% stake in NSE for $175 million
 Temasek Holdings picked up the 5% stake held by NYSE Euronext in NSE for $175 million, valuing the stock exchange at $3.5
billion.
 In 2007, the New York Stock Exchange, had acquired 5% stake for $115 million.
NSE has two times the trading volume of Bombay Stock Exchange, despite having lower number of firms listed. It has more than
half the market share in equity trading but dominates derivatives trading in the country.
11

14. PRIVATE EQUITY
TOP 5 DEALS IN Q2 2010
KKR To Invest $166 million in Dalmia Cement Arm
 KKR will invest up to $166 million (INR 7.5 billion) in Dalmia Cement's unlisted subsidiary Avnija Properties Ltd.
 The subsidiary Avnija will house DCBL’s 9 MTPA (million tonne per annum) cement manufacturing capacity, DCBL's stake in OCL
India Ltd (5.3MTPA capacity) along with the upcoming green field projects of 10MTPA across the country.
 The proceeds will be used for both organic/inorganic growth and de-leveraging,
JM Financial advised KKR on the transaction, while Equirus Capital acted as financial advisor to DCBL.
IL&FS Milestone Fund Picks Up 74% In HCC Project
 IL&FS Milestone Realty Advisors acquired 74% stake in 247 HCC Park, a 1.8 million square feet commercial property located in
Vikhroli, Mumbai for around $122 million (INR 5.8 billion).
 The proceeds will be used to repay debt raised during the construction of the project from HDFC Ltd.
 Money Matters Financial Services Ltd was the sole advisor to the deal.
12

15. PRIVATE EQUITY
2010 YTD
Exhibit 11: Private Equity Deal Value First Half 2010 Exhibit 12: Private Equity Deal Volume First Half 2010
$18,000 $16,284
540
600 526
$16,000
$13,132
$14,000 500
390
$12,000 400
311
$10,000
$7,090 300
$8,000 224
182
$6,000 $4,321 $4,286 200
$2,264
$4,000
100
$2,000
$0 0
2005 2006 2007 2008 2009 2010* 2005 2006 2007 2008 2009 2010*
$1,000 50
$900 45 Private equity investment in the first half of 2010
$800 40 has already reached $4.29 billion, which is nearly
$700 35 the same level as that in 2009.
$600 30
$500 25 Deal value in 2009 was $4.32 billion, a sharp drop
$400 20
from the $13.1 billion seen in 2008. The number of
$300 15
$200 10
deals in H1 2010 was 182 as compared to 311 in
$100 5 2009, which points to a higher average deal value.
$0 0
Financials, Utilities and Consumer Discretionary
have seen the highest deal value year till date.
Exhibit 13: Private Equity Sectoral Breakdown First Half 2010
13
Value ($ mn) Volume

16. PRIVATE EQUITY
PRIVATE EQUITY EXITS – Q2 2010
Exhibit 14: Top Private Equity Exits in Q2’ 10
S.No Target Seller Exit Type Exit Value ($mn)*
1 DLF Assets Ltd. Symphony Capital Partners Ltd Buyback 694
2 SpiceJet Ltd. WL Ross & Co. LLC. M&A 127
3 Intelligroup Inc. SAIF Partners M&A 124
4 Metropolis Healthcare Ltd India Advantage Fund Series I Secondary Sales 85
Citi Venture Capital International
5 JBF Global Pte Ltd. Growth Fund Buyback 60
*Exit Value: Value of the private equity portion of the deal.
Open
Market, 15
M&A, 9
There were 30 exits worth $1,456 million in
Secondary
Sales, 3 Q2, 2010.
In comparison there were 29 exits worth
only $820 million in Q2, 2009.
Buyback, 2
IPO, 1
Exhibit 15: Private Equity Exit Type in Q2’ 10
14

17. MERGERS & ACQUISITION
INTRODUCTION
M&A activity in India has surged over the last few quarters. Total Both Q1 and Q2 2010 saw some big tickets deals which
announced deal value in Q2 2010 was $24.8 billion, a 790% sent the total M&A deal value soaring. This signaled the
increase over the $2.8 billion witnessed in Q2 2009 and a 370% return of investor confidence and liquidity to the market.
increase over Q4 2009. The total deal count also increased by 85%
to 182 in Q2 2010 up from 98 in Q2 2009.
Exhibit 16:M&A Deal Flow in India
30000 200
182
185
180
158 $24,771
25000 150 $23,304
$22,899 153 151 160
138
129 127 140
20000 126 123 120 116
Deal Value ($ Mn)
104 108 120
99 101 98
$15,312
15000 100
Deal Volume
82 86
66 80
62 $9,655
10000 $6,775
$7,865 60
$4,992 $5,137
$5,244 $5,209 $5,240 40
5000 $3,940 $4,116
$3,145 $2,776
$747 $3,221 $3,021 $3,027
$1,487 20
$994
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2005 2006 2007 2008 2009 2010
Value ($ mn) Volume
15

18. MERGERS & ACQUISITION
DEAL BREAKDOWN
The number of domestic deals increased from 72 and 50 Exhibit 18: M & A Type Volume
in Q2 2008 & Q2 2009 respectively to 91 in Q2 2010. The 300
value of domestic deals was $14 billion in Q2 2010
241
compared to $1.7 billion in Q2 2009. 250 223 216 Domestic
196
In terms of volume, the number of outbound deals 200 Inbound
tripled from 22 in Q2 2009 to 66 in Q2 2010, while in 156 162 149
136
Outbound
150
terms of value the increase was more than 13X from 112
109
$0.45 billion to $6.05 billion. 100 89 92 94 91
67 72 66
51
The number of inbound deals was nearly same at 23 in 50 37
32
Q2 2010 as compared to 24 deals in Q2 2009, but at a 23
much higher value. 0
2005 2006 2007 2008 2009 Q1 2010 Q2 2010
Exhibit 17:Median Deal Amount ($ million) Exhibit 19: Average Deal Size ($ million)
30
25 24 350
300
20 19 298
17 250
15 14
15 200 224
11 12
10 150
100 139
123 113
5
50 75
53
0 0
2005 2006 2007 2008 2009 Q1 2010 Q2 2010 2005 2006 2007 2008 2009 Q1 2010 Q2 2010
The median deal amount in Q2 2010 decreased to $19 million as compared to $24
16
million in Q1 2010, but was higher than that seen in 2009.

19. MERGERS & ACQUISITION
DEAL BREAKDOWN
Exhibit 20: Number of transactions by Deal Size Exhibit 21: Total investment by Deal Size
Q22010 Q22010
Q22009 Q22009
Q22008 Q22008
Q22007 Q22007
Q22006 Q22006
Q22005 Q22005
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Undisclosed Under $5 m $5 - $25 m Under $5 m $5 - $25 m $25 - $50 m $50 - $100 m $100 m+
$25 - $50 m $50 - $100 m $100 m+
M&A deals under $100 million accounted for 90% of total Larger deals ($100 million and above) accounted for 96% of
deal flow in Q2 2010. total capital invested in Q2 2010 as against 74% in Q2 2009.
Q2'05 Q2'06 Q2'07 Q2'08 Q2'09 Q2'10 Q2'05 Q2'06 Q2'07 Q2'08 Q2'09 Q2'10
Undisclosed 30 38 86 79 59 99
Under $5 m 22 24 51 44 12 59
Under $5 m 12 11 22 20 9 28
$5 - $25 m 165 229 256 259 142 254
$5 - $25 m 13 20 19 20 11 20
$25 - $50 m 110 90 291 362 230 354
$25 - $50 m 3 3 8 11 6 10
$50 - $ 100 m 2 3 5 4 5 7 $50 - $ 100 m 151 203 308 260 349 430
$100+ 2 11 10 17 8 18 $100+ 546 3393 5869 8730 2043 23674
17

20. MERGERS & ACQUISITION
SECTORAL BREAKDOWN – Q2 2010
Materials, $ Energy , $
Telecommuni
1,849 1,766
cation
Services, $
Financials , $ 11,994 ,0
3,351 Materials, 20
Information
Technology, 38
Financials , 20
Healthcare, $
3,752
Exhibit 22: Top 5 Sectors by Deal Value ($ mn) in Q2 2010
Telecommunication Services, Healthcare and Financials were Industrials, 23 Consumer
Discretionary, 30
the most targeted sectors for acquisitions with deals worth
$11.9 billion, $3.8 billion and $3.4 billion respectively. Together,
they accounted for 77% of total M&A deal value during the
quarter. Exhibit 24: Top 5 Sectors by Deal Volume in Q2 2010
Exhibit 23: Sector Summary
Sector Volume Value Average Deal Size
Consumer Discretionary 30 326 25 The most active sectors in terms of deal volume was Information
Consumer Staples 16 648 59
Technology with 38 deals in the quarter, followed by Consumer
Energy 5 1,766 441
Financials 20 3,351 479 Discretionary and Industrials with 30 and 23 deals respectively. Other
Health Care 17 3,752 469 sectors contributing to the deal volume were Materials & Financials
Industrials 23 390 39 with 20 deals each.
Information technology 38 469 34
Materials 20 1,849 231
Telecommunication Services 6 11,994 2,399
Utilities 7 226 75
18

21. MERGERS & ACQUISITION
SECTORAL BREAKDOWN
ENERGY INDUSTRIALS
$2,000 10 $2,500 35
9 $1,766 29
$1,747
3 8 $2,000 13 30
$1,500 7 $1,909 25
6 $1,500 16 25
$1,173 20
$1,000 4
4 $1,000 15
20 $751 23 10
$500 5
$366 $474 $502 5 2 $500 $338 $390 5
$0 0 $0 $56 $87 0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2009 2010
Volume Value ($ mn) Volume Value ($ mn)
 Energy accounted for 2.8% of deal volume in Q2 2010.  Industrials accounted for 12.7% of deal volume in Q2 2010.
MATERIALS CONSUMER DISCRETIONARY
$700 35
25 $637 $648
$600 32 30
$2,000 25
$1,822 $1,849 $500 25
9 16 20 28
$1,500 $400 20
12 13
15 $300 30 $326 15
$1,000 $254
7 20 10
$578
$200 10
$500 14 $547
$286 $334 5 $100 12 5
$49 $32
$0 0 $0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2009 2010
Volume Value ($ mn) Volume Value ($ mn)
 Materials witnessed 25% increase in deal volume and 450%  Consumer Discretionary accounted for 16.5% of deal volume in Q2
increase in deal value. 2010.
19

22. MERGERS & ACQUISITION
SECTORAL BREAKDOWN
CONSUMER STAPLES FINANCIALS
$700 20 $4,000 25
$648
$600 14 21 $3,351 20
5 13 15
$500 $3,000
$400 9 12 14 15
$376 $367 10
$300 16
$2,000 11
$200 $216 20 10
5 $1,000
$100 7 10 $819 $823 5
$0 $13 $3 0 $217
$0 $97 $71 0
Q1 Q2 Q3 Q4 Q1 Q2
Q1 Q2 Q3 Q4 Q1 Q2
2009 2010
2009 2010
Volume Value ($ mn) Volume Value ($ mn)
 Invested capital increased by 76.6% in Q2 2010.
 Financials accounted for 11% of deal volume in Q2 2010.
 Consumer Staples accounted for 8.8% of deals in Q2 2010.
HEALTH CARE INFORMATION TECHNOLOGY
$4,000 $3,75220 $700 $654
50
$600 42
6 15 40
$3,000 12 10 15 $500
22 $469
12 $400 28 30
$2,000 17
10 $300
$243 38 20
$1,000 10 $1,123 $1,086 5 $200 $210
$100 18 $118 $123 10
$235 $240 $410
$0 0 $0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2009 2010
Volume Value ($ mn) Volume Value ($ mn)
 Deal volume increased by 70%.
 Invested capital increased by 123% in Q2 2010.
 Invested capital increased by 245% in Q2 2010.
20

23. MERGERS & ACQUISITION
SECTORAL BREAKDOWN
TELECOMMUNICATION SERVICES UTLITIES
$16,000 8 $4,500 8
$14,000 $14,036 7 $4,000 $3,873 7
7 $3,500
$12,000 6
$11,994 4 6
3 $3,000 6 5
$10,000 6 5 5
$2,500 5
$8,000 3 4 4
$2,000 7
$6,000 6 3 3
$1,500
$4,000 4 2 $1,000 2
$2,000 1 $500 1
$791 1 $132 $226
$0 $201 $41 $403 0 $0 $0 $0 $37 0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2009 2010
Volume Value ($ mn) Volume Value ($ mn)
 Telecommunication Services accounted for 48% of deal  Deal volume increased by 40%.
value in Q2 2010.  Invested capital sharply dropped in Q2 2010.
21

24. MERGERS & ACQUISITION
REGIONAL BREAKDOWN – FIRST HALF 2010
There were 245 M&A deals with a domestic
target in the first half of 2010. Of these
Maharashtra had 84 deals with a deal value
Amritsar
of $14.7 billion followed by West Bengal,
Jalandhar
Himachal Pradesh, Tamil Nadu and Delhi. Dehradun
Ludhiana
Jaipur
Kanpur Lucknow
Top 5 states according to deal value Bhopal
Ahmedabad
State Volume Value ($mn) Indore
Baroda
Maharashtra 84 14,696 Surat
Mumbai
West Bengal 9 3,922
Pune Hyderabad
Himachal Vizag Tier I
Pradesh 2 3,270 Tier II
Tamil Nadu 22 2,042
Bangalore Chennai
Delhi 19 1,720
Mangalore
Mysore
Coimbatore
Cochin
22

25. MERGERS & ACQUISITION
TOP 5 DEALS IN Q2 2010
Exhibit 25: Top M&A deals in Q2 2010
S. No. Target Buyer Type Price ($ million)
1 Reliance Infratel Ltd., Tower Assets GTL Infrastructure Ltd. Domestic 10,869
2 Piramal's Healthcare Solutions Business Abbott Laboratories Inbound 3,720
3 KBL European Private Bankers SA Hinduja Group India Ltd. Outbound 1,673
4 Anglo American Zinc Hindustan Zinc Ltd. Outbound 1,338
5 Infotel Broadband Services Pvt. Ltd. Reliance Industries Ltd. Domestic 1,023
The top 5 deals accounted for more than 75% of the total M&A deals in Q2 2010.
GTL Infra, Reliance Infratel Agree To A Rs 50,000Cr Deal
 GTL Infrastructure Ltd. entered into an agreement to acquire tower assets of Reliance Infratel Ltd. for a price of
$10.86 billion (INR 500 billion).
 The combined entity will be the world’s largest independent telecom infrastructure company with 80,000 towers
and over 1,25,000 tenancies.
 The deal does not include the optic fibre network of over 200,000 km and related assets owned by Reliance Infratel.
Standard Chartered Bank acted as financial advisor to GTL Infra on the transaction.
23

26. MERGERS & ACQUISITION
TOP 5 DEALS IN 2010
Abbott To Acquire Piramal Healthcare Unit For $3.72B
Abbott Laboratories entered into a definite agreement to acquire the healthcare solutions business of Piramal
Healthcare Ltd. for a price of $3.72 billion (INR 174 billion).
 The buyer will make an upfront payment of $2.12 billion and will pay $400 million annually over four years.
 The assets to be transferred includes the company's manufacturing facilities at Baddi, Himachal Pradesh and rights
to approximately 350 brands and trademarks.
Luthra & Luthra and Baker & McKenzie advised Abbott Laboratories and Crawford Bayley and Stephenson Harwood
advised Piramal Healthcare on the deal
KBC Sells KBL Bank To Hinduja For $1.7B
Hinduja Group India Ltd. acquired Luxembourg based KBL European Private Bankers SA for a price of $1.67 billion
(INR 78.16 billion) from KBC Bank NV.
 KBL European Private Bankers SA provides wealth management solutions to clients globally.
 Deutsche Bank and Spencer House Partners LLP acted as financial advisors to Hinduja Group on the deal. Allen &
Overy advised KBC Bank NV and Loyens & Loeff advised Hinduja Group India Ltd. on the deal.
24

27. MERGERS & ACQUISITION
TOP 5 DEALS IN 2010
Vedanta acquired Anglo American Zinc for a price of $1.33 billion
 Vedanta Resources entered into an agreement to acquire Anglo American's entire zinc business in Ireland and Africa
for $1.33 billion (INR 60.67 billion).
 The deal will be done through Vedanta's group company, Hindustan Zinc and includes the 100% owned Skorpion
mine in Namibia, Lisheen mine in Ireland and the 74% owned Black Mountain Mining.
A&L Goodbody, Lazard & Co., Dewey & LeBoeuf and Corpus Legal Practitioners advised Hindustan Zinc and Linklaters
advised Anglo American on the deal.
Reliance Industries acquires 95% in Infotel Broadband Services for $1B
 Reliance Industries Ltd. entered into a definite agreement to acquire 95% stake in Mohali based Infotel Broadband
Services Pvt. Ltd. for a price of $1 billion (INR 48 billion).
 The company provides internet broadband services to customers using WI-MAX as access technology.
 Infotel Broadband Services won pan India broadband wireless access spectrum license for 22 circles for around
$2.73 billion (INR 128 billion).
25

28. MERGERS & ACQUISITION
2010 YTD
Exhibit 26: M&A Deal Value First Half 2010 Exhibit 27: M&A Deal Volume First Half 2010
$48,075
$50,000 561
600 547
$45,000
$36,153 453
$40,000 500
422
$35,000 $27,901 367
$26,389 400
$30,000 314
$25,000 300
$20,000 $16,252
$15,000 200
$8,107
$10,000
100
$5,000
$0 0
2005 2006 2007 2008 2009 2010* 2005 2006 2007 2008 2009 2010*
$30,000 90 M&A’s in the first half of 2010, have reached $48.1
80 billion as compared to $16.25 billion in 2009 and
$25,000
70 $27.9 billion in 2008. Some big tickets deals
$20,000 60 including the acquisition of the tower assets of
50 Reliance Infratel by GTL and Bharti’s buyout of the
$15,000
40
African operations of Zain helped the deal value
touch an all time high.
$10,000 30
20
$5,000 Deal volume in the first half of 2010 was 367 as
10 compared to 453 in the whole of 2009.
$0 0
Telecom, Healthcare and Financials have seen the
highest deal value this year.
Exhibit 28: M&A Sectoral Breakdown First Half 2010
26
Value ($ mn) Volume

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