Discovering opportunity in a crisis: M&A
Dealmaking in India came down to a more natural course in 2019 after hitting a record high the previous year when it crossed the psychological milestone of $100 billion for the first time ever. While private equity and venture capital investment activity remained strong, lack of big ticket buys shrunk the value of mergers and acquisitions (M&As). Indeed for the first time ever, value of PE deals was neck to neck with M&As, reflecting the changing contours of dealmaking.
But with some top notch global firms such as Saudi Aramco and ArcelorMittal evincing interest in Indian assets and local behemoths like L&T, Adani and JSW adding to their inorganic growth plank the M&A ecosystem is far from quiet.
The global business lockdown has created a raft of opportunities for Indian firms waiting with cash eyeing quality international assets. At the same time the folly of putting most eggs in one basket (read-China) is now more than apparent to the global majors and this creates a picture where MNCs would look more seriously at putting up an India base to derisk their supply chains. Not to mention the more hectic domestic M&A scenario as firms look to scale up with mergers to create a stronger business and snap up troubled rivals.
All in all, the ecosystem for M&As is only expected to become more exciting.
But there are various shades that an acquirer needs to be careful about starting with better due diligence on the target. Post deal the job becomes even harder as its time to see through the more critical aspect of integration.
To discuss the emerging opportunities and challenges, learnings from past moves that worked as well as those that didn’t, Mosaic Digital, the corporate banner behind VCCircle.com, is organising its next edition of M&A Summit (virtual event) on 26th June.
By Jaideep Mehta, CEO, Mosaic Digital
Aman Malik, Senior Editor, VCCircle in conversation with Harsh Shah, CEO, IndiGrid
The global business disruption due to the worldwide lockdown has not just put firms on a reset mode but also pushed thousands of companies on the road to bankruptcy. How do cash rich firms look at inorganic growth strategy to pick a good asset? Would cheap buy necessarily translate into a good fit? How do sellers play with their pawns at a time of depressed valuations?
Speakers:
Nitin D Parekh, Chief Financial Officer, Cadila Healthcare Limited
Rakesh R Sony, Global Head - Strategy and M&A, Tata Consumer Products Limited
Ashutosh Goel, VP- Group M&A, Mahindra
Moderator: Bruhadeeswaran R, Assistant Editor, VCCircle
Ankit Doshi, Special Correspondent, VCCircle in conversation with Rahul Kumar, Managing Director, Lactalis India
Many M&As end up being an albatross around the neck of the acquirer due to flaws in reading the business outlook and ignoring the red flags. How should acquirers strengthen the due diligence process to make the filters more effective? What lessons can one leverage from successful transactions and deals that came to bite later?
Speakers:
Vivek Karve, CFO, Marico Limited
Debolina Partap, General Counsel, Wockhardt Limited
Manoj Bhat, CFO, Tech Mahindra
Moderator: Beena Parmar, Special Correspondent, VCCircle
Transactions also fail as the human and business synergies required between the two parties after inking a deal is not carefully thought through or implemented. How can acquirers ensure they can enhance the target’s USP to make a solid growth platform? What are the protocols to follow to energise the human resource of the target firm and integrate into a different culture? Are there learnings on productivity to be imbibed by the acquirers themselves?
Speakers:
Archana Bhaskar, CHRO, Dr. Reddy's Laboratories Ltd.
S. Ramakrishnan (Ramki), Chief Financial Officer, Quess Corp Limited
Ramesh Swaminathan, Executive Director, Global CFO & Head Corporate Affairs, Lupin
Moderator: Narinder Kapur, Correspondent, VCCircle
Vivek is a Chartered Accountant (1994), a Cost Accountant (1993) and a B. Com. from the University of Bombay (1991). He has more than 25 years of experience in Finance, Banking, and IT across four organizations - Marico, Siemens Information Systems, ICICI and P&G.
Vivek’s current role as Group CFO of Marico covers Corporate Finance, Secretarial, Internal Audit, Investor Relations, Business Finance and Commercial for Marico Group. He also leads Marico’s M&A initiatives.
Vivek joined Marico in 2000, as a Manager in Corporate Finance. Over the years, he has contributed to various sections in Marico Finance, including business finance. He has played an active role in Marico's M&A efforts through due diligence, funding etc. He was also project lead for an initiative towards automating the performance forecasting and budgeting processes in the company. Vivek took over the charge as CFO of Marico Limited effective 1St April 2014.
Vivek has served as a member of FICCI's Corporate Finance Committee. He is currently a member of FICCI’s CFO Conclave.
Ms. Debolina Partap, General Counsel and Vice President Legal, Wockhardt, is a Gold Medalist in masters of law and has 25 years of experience in banking, finance, pharma and healthcare. She is responsible for IP and Litigation Management, legal compliance, all corporate legal work, M&As, transactions management amongst others. She advises top management on legal risks to the organization. Her main achievements come in handling complex IP cases, M&A transactions, setting up legal compliance systems, legal repository management, standardization of legal processes and documents, settling insolvency petitions and intricate derivatives suits. She is also handling legal issues pertaining to complex and composite global regulatory matters concerning Wockhardt Group. Her other focus areas have been handling legal dynamics of patient safety issues, overseeing GCP, GMP and GDP areas in pharma. She is one of the few general counsels globally who handle forensics and data analytics. She and her team have won over 80 awards from Internationally and Nationally recognized legal organizations.
Shri Nitin D Parekh possesses brilliant academic track record. He has consistently secured ranks and earned number of prizes, medals and certificates in several exams. He possesses six qualifications like B. Com., LL.B., CA, CFA, MBA from IIM, Ahmedabad and MBA in Pharma Management from ICFAI University.
Shri Nitin Parekh is serving as the Group Chief Financial Officer in Cadila Healthcare Limited, the 4th largest Pharmaceutical Company of India with an annual turnover of more than Rs.14000 crores and has 35 years of post-qualification experience.
Shri Nitin Parekh is recipient of “League of Excellence 2020” award from CFO, India. He was declared as the Best CFO in Healthcare sector for 2012 and also for 2017 by Institute of Chartered Accountants of India. He is chosen amongst the top 100 CFOs of India for eight times in succession by CFO, India. SAP has selected him amongst the top 25 Digitalist Thought Leaders of India for 2015. He has also received Business World-Best CFO of India Award 2017 for Healthy Balance Sheet Management-Large Corporates.
He has penned a number of articles, related to academics and professional topics, which are published in leading newspapers and magazines. He is a regular speaker at several forums including Big 4 firms, CRISIL, CARE, Dun & Bradstreet, ET Summit, CFO India, IIM-Ahmedabad, IIM-Udaipur, CA Institute, CMA Institute, ICFAI business school, Nirma University etc.
Manoj Bhat has been associated with Tech Mahindra since 2006. He brings with him a rich experience of more than 20 years in the IT and ITES industry -- across various roles in Finance, Corporate Planning & Development, Merger & Acquisitions, and Strategy, and has played a key role in Tech Mahindra’s organic and non-organic growth initiatives.
He has been the Deputy CFO of Tech Mahindra from 2013, with global responsibilities for Business Finance, Investor Relations and Corporate Planning. He is also handling the role of ‘Head of Mergers and Acquisitions’ for Tech Mahindra from 2011 and is responsible for the acquisition strategy of the company.
Earlier from 2009 to 2010, he was in a leadership role responsible for the acquisition and integration of Mahindra Satyam. He was also a key player in the initial public offering of Tech Mahindra in 2006 and was responsible for Investor Relations, and Planning from 2006 to 2009.
Prior to joining Tech Mahindra, Manoj worked with Perot Systems and HCL Perot Systems in various leadership roles in Treasury, Business Development Finance, and Strategy. He was also the finance lead for the US operations of HCL Perot Systems.
Mr. Bhat has a Bachelors in Technology degree from IIT Mumbai and a postgraduate diploma in management (PGDM) from IIM Bangalore.
With over two decades of experience in leadership positions in the Finance domain, Ramesh is the Executive Director, Global CFO and Head-Corporate Affairs of Lupin Limited. His areas of responsibilities include the entire gamut of Finance & Accounting, Legal and Information Technology, responsible for the Corporate Strategic Planning Departments and Corporate Communications for the company.
Ramesh commenced his second stint at Lupin about a couple of months ago. For the previous year and a half, he was the Head- Corporate Centre at L&T handling a diverse portfolio which included M&A, Divestitures, Running an innovation fund, Central Procurement and Logistics, Operational Excellence and Corporate Legal. Prior to that he was with Lupin as a key member of the company’s core strategy think-tank and a member of the Board of Directors. He has guided the company through numerous Mergers & Acquisitions and enabled the company’s successful entry into some of the largest pharmaceutical markets globally. Before Lupin, he was with Henkel, Germany where he held corporate responsibilities as the Regional Financial Controller for several countries across the Central and Eastern Europe and the Middle East. He has also worked with companies such as VST Industries, the SPIC group and the Standard Chartered Bank and has a successful track record of building finance as a key business enabler and fostering collaboration in a culturally diverse, global and matrixed workplace.
Ramesh has been the recipient of several awards from various forums including Best CFO Awards in the Healthcare Sector and theme based Awards from Institutions like CNBC, ICAI, Yes Bank-Business Today, Institutional Investors, CFO Asia etc.,
Archana Bhaskar is the Chief Human Resource Officer at Dr. Reddy’s and a member of the Management Council.
Archana joined Dr. Reddy’s in June 2017 and has over 25 years of people management experience across diverse industries, geographies and companies. Prior to joining Dr. Reddy’s, Archana was with Royal Dutch Shell, Singapore, where she headed Human Resources for the Global Commercial businesses. Earlier, she has worked with Unilever, where she held positions of European and global responsibility, as well as large Indian corporations with whom she consulted in professionalising HR policies and practices.
Archana is an alumnus of Lady Shri Ram College, Delhi University, where she majored in Psychology & Mathematics, and the Indian Institute of Management, Bangalore, from where she completed her Master’s Degree in Business Administration.
Mr. Harsh Shah has extensive experience in infrastructure sector across bidding, financing, operations, M&A and regulatory policy. Mr. Shah was instrumental in setting up IndiGrid, India’s first Infrastructure Investment Trust (“InvIT”) in the power transmission sector, where he currently serves as the Chief Executive Officer and Whole-time Director. He is also a member of the SEBI Advisory Committee for InvITs and REITs and Financial Markets committee of CII. Previously, Mr. Shah served as the Chief Financial Officer at Sterlite Power Transmission Limited. Prior to joining Sterlite, he has worked with Larsen & Toubro Limited, L&T Infrastructure Finance Company Limited and Procter & Gamble International Operations Pte. Limited.
Mr. Shah holds a Master’s degree in Business Administration from the National University of Singapore and a Bachelor’s degree in Electrical Engineering from the Nirma Institute of Technology, Gujarat University.
Yogesh Mahansaria started his career in 1993 as an industrial trainee at Balkrishna Industries Ltd. Thereafter, he was given responsibility for business development at the tire business, wherein he identified the opportunity to enter the global market for Off-Highway Tires and was then tasked with implementing this strategy.
In 2000, he was appointed CEO of the tire business, a position he held till 2006; during this time, he drove the increase in revenues for the tire business from $20 million to $125 million, and increased profitability significantly. In 2006, Yogesh and his father got together with Warburg Pincus LLC to establish Alliance Tire Group, with the acquisition of Alliance Tire Company, in Israel. This was followed by the establishment of ATC Tires Pvt. Ltd, to set up a greenfield Off Highway
tire manufacturing plant in South India, and subsequently, the Group acquired the Off-Highway Tire distribution assets and brands of GPX International Tire Co of the USA in 2009.
In a short span of time, Yogesh has been able to build the Group from an idea into one of the world leaders in Off-Highway tires, with revenues approaching $600Mn, a team of 5000 employees and network of over 2200 customer across 120 countries. On 1st July 2016, The Yokohama Rubber Co. Ltd, Japan, one of the world’s leading tire & rubber group acquired 100% equity of ATG from KKR, the Mahansaria Family & other shareholders.
Presently, in addition to managing his Family Office, he has also incubated a new venture – Mahansaria Tyres Private Limited (MTPL), to focus on manufacturing opportunities in tire and rubber space. He also serves as a Director on the Boards of – Avendus Capital Pvt Ltd (Leading financial services provider, focussing in areas of financial advisory, capital markets, wealth management and alternative asset management) FSN E-Commerce Ventures Pvt Ltd (Operator of online beauty & wellness store, nykaa.com) 321 Education Foundation (Philanthropic organization, focused on improving the quality of education for children of low-income communities)
Vijay Madhav Paradkar is Vice President for Mergers and Acquisitions at Mahindra & Mahindra Ltd where he is responsible for all M & A, JV, Disinvestments, and PE investment of the company. He has 32 years of experience in the areas of Institutional & Corporate Finance, Fund Management, PE Investment, Investment Banking and M&A. Vijay has handled famous transactions like Kinetic Motors asset disinvestment, acquisition of Reva Electric Car co., restructuring of Renault JV and many cross border transactions in countries such as Australia, Italy, UK, Spain, Japan etc.
Vijay is also part of visiting faculties at renowned management institutes such as BSE Training Institute, JBIMS, MET & Welingkar Institute. A Mechanical Engineer by profession, Vijay also holds a Masters in Management Studies.
@paradkar_vijay
Mr. Anil Raibagi is Vice President and Global Head of Mergers and Acquisitions at Wipro Technologies. In this role, he is responsible for crafting as well as implementing Wipro’s inorganic growth Strategy. He is based out of Wipro’s corporate office in Bangalore.
In a diverse career spanning over 20 years, Anil has made a significant contribution to multiple roles across sales, operations, finance, P&L management, strategy and M&A. In his prior role, Anil had an opportunity to run a Wipro’s newly acquired company in financial services space. He was based in US as a CEO of this company and grew the business over 200% of its original size, in a short span of 3 years. He joined Wipro 10 years back, in year 2002 and has been a poster boy of blending business understanding with finance acumen. He was instrumental in building Wipro’s total outsourcing business from scratch and led a sales team which secured over US 1.2 Billion in contact value for Wipro.
Anil also worked with IBM and Ceat financial services Ltd. prior to joining Wipro. At IBM, he was part of Global financing as well as Strategic Outsourcing business and worked on financial structuring & asset solutions as part of large IT Outsourcing contracts. Ceat financial was his first job where he began as management trainee in 1992. When he left Ceat, he was heading the most profitable southern region and oversaw various corporate and mid - market financing projects.
Anil has done Master of Business Administration in Finance and graduation in Advanced Statistics.
Subrata Kumar Nag is the Group CEO & Executive Director of our Company. A seasoned finance professional with over three decades of experience, he is responsible for implementing the Company's overall long and short term strategies.
He has been a part of Quess since 2008. Prior to joining us, he was the Vice President – Finance and Company Secretary of Ilantus Technologies Private Limited. He holds a Master’s Degree in Business Management from the University of Calcutta and is qualified from the Institute of Company Secretaries of India (ICSI).
Manas Datta, Group CFO of Wockhardt has rich experience of 30 years in the field of Corporate Finance, Treasury, M&A, Taxation etc. in large Indian conglomerates like AV Birla Group, Chambal Fertilisers, The Oberoi Group.
Mr. Datta has been instrumental in Transformational Change Management in MIS, Business Planning and reporting in Wockhardt and has extensive experience in capital / debt raising in Domestic and international markets.
A Cost Accountant by training and Alumnus of IIM (Ahmedabad) Mr. Datta is also an avid reader and loves to watch Soccer. He is also an ardent fan of Kishore Kumar.
Consecutively in March 2016, March 2017 & March 2018, Mr Datta has been conferred with "Role of Honour for CFO 100" for exceptional calibre and contribution to the world of finance by CFO India. He was conferred with “Most Influential CFOs of India” by Chartered Institute of Management Accountants (CIMA) in June 2016. Mr. Datta has also been awarded the “Best CFO With Exemplary All Round Performance - 2016 ” in Asia CFO Excellence Award presented by CMO Asia on 5th August 2016 in Singapore. Mr. Datta has also been awarded the ‘Super Achievers Awards for CFO Of The Year - 2016’ by the Stars in the Industry Group on November 2016 and also October 2017. He was also honoured with ‘Indira Brand Slam CFO Leadership’ award on 26th September 2017 at a glittering ceremony at Indira Group of Institute – Pune.
Mr. Datta has also been awarded the “Best CFO With Exemplary All Round Performance” - 2018 in Asia CFO Excellence Award presented by CMO Asia on 1st August 2018 in Singapore.
Vikas is a Chartered Accountant and CPA (USA) with extensive experience in Mergers & Acquisitions, Business Partnering, Fundraise, Capital Structuring & Investor Relations. He is an innovative results driven leader in the digital industry and has a sharp strategic vision and simultaneously embraces the financial and commercial elements of running a business.
Joined PropTiger.com as part of the founding team in 2011, Vikas has 17+ years of experience in financial management. He has been instrumental in the organic and inorganic growth of Elara Group. He has extensive exposure in fostering robust growth and transforming brands through strategic thinking and restructuring. In the Last 11 years he has been associated with the tech start-ups and participated in scaling the business from the early stage.
Sumit Jalan is a Managing Director of Credit Suisse in the Asia Pacific Division, based in Mumbai. He is Co-Head of Investment Banking and Capital Markets, India.
Mr. Jalan is responsible for Corporate Coverage, Origination and Execution for M&A, Equities and Financing in India. Mr. Jalan joined Credit Suisse in 2010 from Bank of America Merrill Lynch, where he was responsible for origination in Equity Capital Markets. Prior to that, he worked at CLSA for over 5 years and with Goldman Sachs in London and New York.
Mr. Jalan holds a Master’s Degree in Business Administration from the Indian Institute of Management, Ahmedabad, India.
Varsha Jhawar heads the India of Office of Alantra - a leading global investment bank, focusing on the mid-market, with offices across Europe, the US, Latin America and Asia. Alantra has more than 500 professionals across the globe providing independent advice on Mergers & Acquisitions, Debt Advisory, Financial Restructuring, Credit Portfolio and Capital Markets Transactions.
Varsha has over 13 years of experience across services in investment banking - M&A, private equity fund raising, debt capital raising, valuations and due diligence. She has been with Alantra since 2012 (as part of C.W.Downer & Co) and prior to that was working with BDO Consulting. She has worked on transactions across industries like Packaging, BPO, IT Services, Industrials, Logistics, Food and food Ingredients, Automotive and Aerospace Components, Consumer Products and Services, etc. She is a Chartered Accountant by profession.
Vikram Nirula is a Managing Director of the Asia Buyout advisory team, focusing on investment activities in India. He is based in Mumbai.
Prior to joining Carlyle, Mr. Nirula was a Partner at True North Managers LLC (formerly India Value Fund Advisors) for over 18 years. As part of True North’s founding team, Vikram was involved with the firm strategy, building its team and managing investor relationship. He led investments across diverse industries, including consumer, financial services and industrials and served on the Boards of several portfolio companies.
Vikram has received his post-graduate diploma in management from the Indian Institute of Management in Bangalore and has a Bachelor's Degree in engineering (computer science) from Birla Institute of Technology.
Roopal Kulsrestha, is a Corporate, M&A and PE Partner based out of the Mumbai office of the Firm. She has extensive experience in cross border M&A / private equity deals across a range of sectors including insurance, real estate, hospitality and infrastructure. Roopal has also advised clients in public M&A acquisitions in listed Indian companies.
Roopal actively represents various private equity funds and large corporate clients on transactional and advisory matters. Her key clients include, Brookfield Asset Management, Blackstone (real estate), L Catterton, Liberty Mutual Group, Tyson Inc., IKEA and Sumitomo Chemicals Co Limited.
Roopal has featured in RSG India Report, 2017 and been recommended for “Corporate” and described as “having ‘a keen eye for detail’ with ‘a fantastic grip over all the moving pieces of a transaction”. She has also been called a ‘reliable lawyer’ with good legal expertise. Recent articles include, “Issues in reclassification of listed companies’ promoters”, “Conundrum of funding for insurance companies” both published in the Asia Business Law Journal.
Iqbal has a J.D. from the Columbia Law School, New York, and an LL.B. from the London School of Economics and Political Science, England. After graduating and before moving to India and helping Shardul build the Mumbai office, he worked at Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, and then at Kirkland & Ellis LLP, New York for approx. 6+ years, respectively.
At SAM, Iqbal represents some of the largest global PE funds, such as TPG, Rise, Apax, Temasek, Varde and Goldman Sachs, and strategics in India, such as L&T, Asian Paints and Sumitomo. Iqbal has also done the largest LBO deal in India till date (Apax’s PIPE transaction in iGate and the follow-on acquisition of Patni (approx. USD 2.6 billion)), and over the last year he has done one of the: (i) largest direct FDI deals in India (represented L&T in its divestiture of the Electrical and Automation business through a competitive auction process to Schneider (transaction value approx. USD 2.2 Billion)); (ii) largest medical devices transaction in India (represented TPG in its sale of Healthium to Apax (approx. USD 300 million)—India’s first successful dual track exit); and (iii) one of the largest healthcare portfolio acquisitions globally (represented TPG and Rise in its acquisition of Abraaj’s global healthcare portfolio and in the Care Hospital sponsor buy-out).
Vijay is the Vice- President & Head of Mergers and Acquisition at Corporate Mahindra & Mahindra Limited, where he is responsible for all M&A, JV, Disinvestments, and PE Investments activities of the Group.
At M&M, Vijay has handled various IB transactions like acquisitions of Kinetic Motors, Reva Electric Car Co., Ssyangyong Motors, Pininferina, Engines Engineering, BSA, Jawa Brand, Gippsland Aero, Aerostaff Australia, Peugeot Motocycles, Sampo Rosenlaw ( Ag Equipment), 2 Tractor Cos in Turkey, HCR (largest time sharing resort in Europe), Largest Fruit Distributor in Europe etc spanning over other countries such as in Australia, Italy, France, UK, Spain, Japan, S Kores, Finland, Netherland, China, Brazil etc., JVs with Mitsui & Sanyo for Steel business, JV with Chinese Co for Steel Processing, Restructuring of Renault JV, Mergers / Demergers of 2 Wheeler, PV, Trucks & Buses businesses. Invited PE investments in the Sectors/ Businesses such as Aerospace, Insurance Broking, Used Cars, Steel, Agri etc. He led the team which completed over 130 deals over past 12 years involving a commitment of funds of over $ 5 Billion
He has 35 years of experience in the areas of Institutional & Corporate Finance, Funds Management of Proprietary Fund & Venture Fund, Investment Banking and M&A. Represented on the board of few listed & unlisted Cos. Curious Student of Stock markets.
He is also a Visiting Faculty at Prestigious Management Institutions.
He is a Mechanical Engineer by profession and also holds a Masters in Management Studies. He has also undergone Executive Programs of American Institutions such as Ross Michigan School of Business, Harvard Business School & New York Institute of Finance.
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