EY M and A On The Road To Recovery

M&A: on the road
to recovery
Transactions 2014
03
M&A highlights
04
Private equity highlights
12
Sector focus
16
1. Automotive
16
2. Cement and building products
19
3. Chemicals
22
4. Oil and gas
25
5. Power and utilities
28
6. Retail and consumer products
32
7. Technology
35
8. Telecom
39
Conclusion
42
Appendices
44
Methodology
47
Contents
Foreword
Foreword
AYehd]Yk]\lgk`Yj]oal`qgml`]^l`]\alagfg^LjYfkY[lagfk*(),$gmjYffmYd
j]hgjll`Ylhj]k]flkgmjYfYdqkakg^l`]E9dYf\k[Yh]afAf\aY&
>Q),`YkZ]]fYf]f[gmjY_af_q]Yj^gjl`]_dgZYdZmkaf]kk]fnajgfe]fl&9^l]j
Y\\j]kkaf_l`][`Ydd]f_]kkl]eeaf_^jgel`]_dgZYdfYf[aYd[jakakgn]jl`]
hYkln]q]Yjk$l`]ogjd\][gfgeqakfYddqj]][laf_l]flYlan]ka_fkg^j]nanYd&
L`]lj]f\akZ]af_d]\ZqYklYZd]][gfgea[j][gn]jqY[jgkkl`]=mjgrgf]$Y
kl]Y\q_jgolàfl`]MK$Yf\Yeg\]jYlaf_q]lkljgf__jgolàf;àfY&9ea\kl
làk_jY\mYddqklYZadaraf_k[]fYjag$[gjhgjYl]gj_YfarYlagfkafl]jfYlagfYddq`Yn]
Y\ghl]\Yegj]k]d][lan]YhhjgY[`lgoYj\kE9$oal`ZgYj\kfgohjagjalaraf_
quality over quantity.
Af>Q),$l`]j]o]j]k]n]jYdeYbgjZa_%la[c]l\]YdYffgmf[]e]flk$oà[`\jgn]
l`]_dgZYd\]YdnYdm]&9da_faf_oal`làkk]flae]fl$l`]Af\aYfE9dYf\k[Yh]Ydkg
recorded an increase in deal value.
Amit Khandelwal
FYlagfYd<aj][lgjYf\HYjlf]j
Transaction Advisory Services
=jfklQgmf_DDH
=n]fYkl`]_dgZYd][gfgeqk`gokka_fkg^j]nanYd$Af\aY[gflafm]klgZ]Y
eYbgjYlljY[lagf^gj_dgZYdhdYq]jk$Yk]naf[]\Zql`]aj[gflafmaf_afl]j]klafl`]
[gmfljqk_jgol`klgjq&Làkak[d]Yjdq]na\]fl^jgel`]fmeZ]jg^Zaddagf%\gddYj
afZgmf\Y[imakalagfkl`YlAf\aYj]hgjl]\gn]jl`]hYklq]Yj&LàkYkh][lak^mjl`]j
j]af^gj[]\ZqeYfqEF;k[gfkgda\Ylagfg^l`]ajhgkalagfafl`]Af\aYfeYjc]lZq
jYakaf_klYc]kafl`]ajAf\aYfkmZka\aYja]k&
A challenging economy and an uncertain regulatory environment that had
[gfkljYaf]\l`]Af\aYfZmkaf]kkdYf\k[Yh]gn]jl`]hYkl^]oq]Yjk$oaddhYn]l`]
oYqlgYegj]lYf_aZd]^g[mkgf_jgol`&L`][d]YjeYf\Yl]_an]flgl`]f]o
_gn]jfe]floaddhgkalan]dqaehY[ll`]gn]jYddZmkaf]kkk]flae]fl$oà[àflmjfak
dac]dqlg\]dan]jYkl]Y\qj]nanYdg^Zgl`$l`]afZgmf\E9Yko]ddYkH=Y[lanalq&
Gfl`]j]_mdYlgjq^jgfl$*()+`YkYdkgZ]]fYdYf\eYjcq]Yj^gjAf\aYkaf[]l`]
f]o;gehYfa]k9[l*()+oYkafljg\m[]\làkq]Yj&Làkakdac]dqlg`Yn]Yhgkalan]
aehY[lgf\]YdeYcaf_$Ykl`]9[lhjgeak]kYkeggl`]jYf\egj]ljYfkhYj]fl
]fnajgfe]fl^gj[gf\m[laf_E9&
Af>Q)-$Za_%la[c]lYffgmf[]e]flkYj]]ph][l]\lg[gflafm]lgeYc]`]Y\daf]k$
with deal volume anticipated to remain constant or increase marginally. Several
k][lgjk$af[dm\af_l]d][ge$]%[gee]j[]$Yf\j]lYadYj]Ydj]Y\qoalf]kkaf_Y
oYn]g^[gfkgda\Ylagf$Yf\l`]lj]f\ak]ph][l]\lg[gflafm]gn]jl`]f]plq]Yj&
L`]E9dYf\k[Yh]afl`][gmfljqakYdkgdac]dqlgZ]hgkalan]dqafm]f[]\Zql`]
gml[ge]g^l`]j][]fldq[gf[dm\]\_]f]jYd]d][lagfk$oalèYjc]lhYjla[ahYflk
_anaf_Yl`meZk%mhlgl`]f]odq^gje]\_gn]jfe]fl&
O]j]eYafghlaeakla[YZgmll`]E9gmldggcYkal[gflafm]klgklYZadar]gn]jl`]
f]plq]Yj&
M&A highlights
=Yjdq\mjaf_*()+$l`]j]o]j]`gh]kl`Yll`]_dgZYdE9
Y[lanalqoaddegn]aflgYkmklYaf]\_jgol`h`Yk]$Y^l]jj]hgjlaf_
Y\][daf]afl`]hj]nagmkq]Yj&@go]n]j$\]khal]aehjgn]e]flk
af_dgZYd][gfgea[[m]k$l`]E9kalmYlagfj]eYaf]\Zd]Yc$
Yf\\]YdY[lanalqj][gj\]\Y\][daf]^gjl`]k][gf\[gfk][mlan]
q]Yj&<]Ydaf]jlaY[gflafm]\YkeYfq[gehYfa]kghl]\lgoYl[`
jYl`]jl`YfhYjla[ahYl]afl`]E9eYjc]l&F]n]jl`]d]kk$Y
fmeZ]jgê]_YljYfk^gjeYlagfYd\]YdklggchdY[]\mjaf_
>Q),$oà[`da^l]\l`]_dgZYdE9nYdm]&
L`]_dgZYdE9lj]f\oYkj]hda[Yl]\afAf\aY&K]n]jYdZa_%
la[c]lYffgmf[]e]flkZggkl]\\]YdnYdm]afl`]Af\aYfE9
dYf\k[Yh]&>Q),j][gj\]\YfY__j]_Yl]\\ak[dgk]\nYdm]g^
MK**&.Zaddagf$[gehYj]\lgMK*(&)Zaddagfk]]fdYklq]Yj$
j]hj]k]flaf_Yfaf[j]Yk]g^)*&Làkaf[j]Yk]afnYdm]oYk
\m]lgn]Zaddagf%\gddYjhdmkljYfkY[lagfkoal`YfY__j]_Yl]
nYdm]g^MK))&,Zaddagf$[gehYj]\lgl`j]]\]Ydkk]]fdYkl
q]Yj&Af>Q),$l`]fmeZ]jgÊ9ljYfkY[lagfkafngdnaf_Af\aYf
M&A: on the road to recovery
[gehYfa]kklgg\Yl./,$\][dafaf_Zq*(^jge0,+\]Ydkaf
FY13.
<ge]kla[\]YdY[lanalq[gflafm]\lgd]Y\l`]Af\aYfE9
dYf\k[Yh]$Y[[gmflaf_^gj-/g^l`]lglYdfmeZ]jg^\]Ydk
af>Q),&Gfl`]gl`]j`Yf\$[jgkk%Zgj\]j\]YdkeYaflYaf]\
l`]aj\geafYf[]gfl`]nYdm]^jgfl$Y[[gmflaf_^gjegj]l`Yf
l`j]]%^gmjl`kk`Yj]&Oalàf[jgkk%Zgj\]j$afZgmf\\]Ydko]j]
l`]lYdcg^l`]lgof$d]Y\af_Zglàfl]jekg^nYdm]Yf\ngdme]$
Yk^gj]a_femdlafYlagfYdkegn]\lglYc]Y\nYflY_]g^l`]
^Yddaf_Af\aYfjmh]]ZqZmqaf_\ge]kla[Ykk]lk&Làkaf\a[Yl]k
l`]Yegmflg^[gf\]f[]^gj]a_fhdYq]jk`Yn]afAf\aYk
dgf_%l]je_jgol`klgjqYf\Yj]kladdZmddak`YZgmll`]^mlmj]g^
alk][gfgeq&@go]n]j$afl]jekg^gmlZgmf\\]Ydk$l`]\]Yd
activity declined sharply.
Exhibit 1. M&A activities of Indian companies

1,180
1,090
994
843
814
674
35.3
37.0
62.0
27.4
20.1
22.6
FY09
FY10
FY11
FY12
FY13
FY14
Deal value (US$ billion)
Number of deals
Source: EY analysis of Thomson ONE data
Exhibit 3. Five most active sectors by deal count in FY14

71
42
L][`fgdg_q$af\mkljaYdk$Yf\j]lYadYf\[gfkme]jhjg\m[lk
d]\afl]jekg^\]YdfmeZ]jk&:qnYdm]$gadYf\_Yk$j]lYadYf\
Retail and
consumer products
<an]jka]\
industrial products
1,303
Technology
Pharmaceuticals
Telecom
Retail and
consumer products
1,868
Oil and gas
43
3,124
Power and utilities
3,879
66
Financial services
72
5,730
Media and
entertainment
Exhibit 2. Five most active sectors by deal value in FY14

US$ million
[gfkme]jhjg\m[lk$Yf\l]d][geY[[gmfl]\^gjegj]l`Yf`Yd^
-.!g^l`]lglYdnYdm]j][gj\]\af>Q),&
Transactions 2014
Eap]\lj]f\kaf[jgkk%Zgj\]j\]Ydk2
ngdme]\][daf]k$oàd]nYdm]af[j]Yk]k
LjYfkfYlagfYdE9Y[lanalqafngdnaf_Af\aYf[gehYfa]koYk
Z]ll]jg^^l`Yf\ge]kla[\]Ydk$o`]j]Zgl`nYdm]Yf\ngdme]
\][daf]\\mjaf_l`]q]Yj&>Q),j][gj\]\*1+[jgkk%Zgj\]j
\]Ydk$oal`YfY__j]_Yl]\ak[dgk]\\]YdnYdm]g^MK)/&0
Zaddagf&Afl]jekg^nYdm]$làkljYfkdYl]kaflgYfaf[j]Yk]g^
f]Yjdq*(Yk[gehYj]\lg>Q)+&@go]n]j$ngdme]oYk\gof
Zqf]Yjdq*+gn]jl`]kYe]h]jag\&
Afl]jekgâfZgmf\Y[lanalq$l`]q]Yjj][gj\]\)1)\]Ydk$
\gofZqYdegkl)0^jge>Q)+&>gj]a_fZmq]jkc]hlYl
bay due to concerns around the countrys macroeconomic
^mf\Ye]flYdkYf\l`]kdgohjg_j]kkg^hgdala[Ydj]^gjek$
Yko]ddYkl`]j]nanYdg^_jgolàf\]n]dgh]\][gfgea]k&
>mjl`]jegj]$k]n]jYdafZgmf\\]Ydko]j]hmk`]\ZY[c$Yk
buyers resorted to a wait and watch approach to get better
By volume
FY13
55%
FY14
57%
By value
Exhibit 4. Geographical distribution of deals
FY13
FY14
28%
28%
26%
32%
48%
Inbound
31%
Outbound
FY13
FY14
Count
NYdm]
MKeaddagf!
Count
NYdm]
MKeaddagf!
<ge]kla[
462
-$+*.
381
,$0(.
Inbound
232
0$+1-
191
)($0.*
Outbound
149
.$,*)
)(*
.$1+(
Total
843
20,142
674
22,599
Kgmj[]2=QYfYdqkakg^L`gekgfGF=\YlY
15%
42%
21%
Domestic
17%
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<]khal]làk\][daf]afngdme]$\]YdnYdm]^gj>Q),klgg\Yl
MK)(&1Zaddagf$mhZq*1^jgel`]hj]nagmkq]Yj MK0&,
Zaddagf!&Egj]gn]j$l`]k`Yj]gâfZgmf\\]Ydkafl`]lglYdE9
nYdm]af[j]Yk]\lg,0af>Q),Yk[gehYj]\lg,*af>Q)+&
J]lYadYf\[gfkme]jhjg\m[lk$l]d][geYf\h`YjeY[]mla[Ydk
j][gj\]\eYpaeme\]YdnYdm]$lg_]l`]jY[[gmflaf_^gj.,
g^l`]lglYdafZgmf\nYdm]&Afl]jekg^ngdme]$af\mkljaYdk$
l][`fgdg_q$j]lYadYf\[gfkme]jhjg\m[lk$Yf\Ymlgeglan]k
reported high inbound deal activity.
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kl]]h]j$^Yddaf_Zq+* )(*\]Ydk!Y_Yafkll`]hj]nagmkq]Yj
),1\]Ydk!&Af\aYf[gehYfa]kj]eYaf]\[Ymlagmkg^Y[imajaf_
overseas assets as slow business growth and heavily leveraged
ZYdYf[]k`]]lk^gj[]\l`]elghjagjalar][gklghlaearYlagf
Yf\\]Zlj]\m[lagfgn]jafgj_Yfa[_jgol`&AfY\\alagf$l`]
\]nYdmYlagfg^l`]Af\aYfjmh]]eY\]gmlZgmf\ljYfkY[lagfk
egj]]ph]fkan]Yk[gehYj]\lgl`]hj]nagmkq]Yj&L`]
decline in outbound deals was more pronounced than that in
afZgmf\\]Ydk3f]n]jl`]d]kk$logZa_%la[c]lljYfkY[lagfkZq
GadYf\FYlmjYd?YkDaeal]\ GF?;!hjgna\]\Ydalld]Zj]Yl`]j&
GmlZgmf\\]YdnYdm]af[j]Yk]\Zq0lgj]Y[`MK.&1Zaddagf
af>Q),$oàd]alkk`Yj]afgn]jYddE9nYdm]j]eYaf]\Ydegkl
mf[`Yf_]\Yl+)[gehYj]\lg+*afl`]hj]nagmkq]Yj&
<]khal]l`]gn]jYddafn]klgj[Ymlagf$klYl]%gof]\gad]phdgj]j$
GF?;$oà[``YkkmZklYflaYd[Yk`j]k]jn]k$o]flgflgY[imaj]
gadZdg[ckgn]jk]Yklg^]]\l`]]n]j%_jgoaf_\ge]kla[]f]j_q
\]eYf\&Alhmj[`Yk]\Y)(klYc]afgadYf\_Yk]phdgjYlagf
Zdg[c$JgnmeYG^^k`gj]9j]Y)$^jge9fY\YjcgH]ljgd]me
;gjh^gjMK*&.ZaddagfYf\]fl]j]\YbgaflY[imakalagf Ydgf_
oal`GadAf\aYDaeal]\!g^l`]]flaj]k`Yj][YhalYdg^]phdgjYlagf
[gehYfq$Na\]g[gfEgrYeZaim]JgnmeY)Daeal]\$^jge
Na\]g[gfAf\mklja]kDaeal]\^gjMK*&-Zaddagf&L`]k]\]Ydk
[gdd][lan]dqj]hj]k]fl]\/,g^l`]lglYdnYdm]g^gmlZgmf\
deals.
Transactions 2014
Increase in mega deals

Although overall deal activity declined considerably on the
ZY[cg^Y[YmlagmkE9]fnajgfe]fl$l`]Yhh]lal]^gjZa_%la[c]l
Y[imakalagfkj]_Yaf]\ege]flme&Af>Q),$n]Zaddagf%\gddYj
hdmk\]Ydko]j]j][gj\]\$[gehYj]\lgl`j]]afl`]hj]nagmk
q]Yj&9kYj]kmdl$lglYdnYdm]oYkmhZq)*^jge>Q)+$\]khal]
Yk`Yjh\][daf]af\]Ydngdme]&Làkakaf\a[Ylan]g^Yfaf[j]Yk]
afYn]jY_]hja[]hYa\h]jljYfkY[lagf$oà[`ka_fa[Yfldq
af[j]Yk]\lgMK11eaddagfaf>Q),^jgeMK.*eaddagfYq]Yj
Y_g$gjZq-1&Làklj]f\akafkqf[oal`l`]gn]jYdd_dgZYd
E9eYjc]lk[]fYjag$o`]j]Yn]jY_]\]Ydkar]`Yk_gf]mh$
j]][laf_l`]Zgd\]jklYf[]lYc]fZqafn]klgjklgY[à]n]
k[Yd]Yf\_jgol`&=Qk;YhalYd;gf\]f[]:Yjge]l]j ;;:!
kmjn]qg^9hjad*(),Ydkgj]n]Yd]\l`Yll`]_dgZYd]fnajgfe]fl
^gjeYbgjljYfk^gjeYlagfYdY[imakalagfk`Ykka_fa[Yfldq
klj]f_l`]f]\$Ykd]n]jY_]j]lmjfkYf\[gehYfa]k`Yn]
lYc]fe]Ykmj]\Zgd\egn]k&9[[gj\af_lgl`]kmjn]q$_dgZYd
[gehYfa]kafl]flagfklg]f_Y_]afdYj_]j\]Ydkogjlègj]
l`YfMK-((eaddagf`Ykegj]l`Yf\gmZd]\af)*egfl`k$
^jge)*lg*/&L`gk]afl]f\af_lg\g\]Ydkogjlègj]l`Yf
MK)Zaddagf`Yn]Ydkgegj]l`Yf\gmZd]\lg)*afl`]hYkl
.egfl`kYdgf]$Y[d]Yjka_fl`YlhdYfk^gjljYfk^gjeYlagfYd
acquisitions are accelerating.
FglYZdq$YddZaddagf%\gddYj\]Ydkl`j]]afZgmf\Yf\log
gmlZgmf\o]j][jgkk%Zgj\]jaffYlmj]YkoYkl`][Yk]af
l`]hj]nagmkq]Yj&L`]gadYf\_Ykk][lgjoYkl`]^jgfljmff]j$
j][gj\af_logg^l`]\]Ydk&FYlagfYdgad[gehYfa]kYj]
af[j]Ykaf_dqlYhhaf_gn]jk]YkeYjc]lk^gjfYf[af_km[`dYj_]%
kar]\Y[imakalagfk$oà[``Yn]Z][ge]j]dYlan]dq[`]Yh]j_an]f
l`]k`Yjh\]nYdmYlagfg^l`]Af\aYf[mjj]f[q&Egj]gn]j$l`]
?gn]jfe]flgÂf\aY ?gA!`YkZ]]f]f[gmjY_af_]f]j_qHKMk
lgfYf[]gn]jk]YkY[imakalagfkl`jgm_`^gj]a_f\]Zlafkl]Y\
g^\ge]kla[\]Zlgjgof^mf\klgYnga\^mjl`]jhj]kkmj]gf
l`][gmfljqk[mjj]flY[[gmfl\][al&J]lYadYf\[gfkme]j
hjg\m[lk$l]d][geYf\h`YjeY[]mla[Ydko]j]gl`]jhjgeaf]fl
k][lgjk$j][gj\af_gf]Zaddagf%\gddYj\]Yd]Y[`&
=pàZal-&9n]jY_]\]Ydkar]Yf\fmeZ]jgê]_Y\]Ydkgn]jl`]dYkln]q]Yjk
11
7
5
5
3
76.7
67.8
142.8
82.9
62.0
98.7
FY09
FY10
FY11
FY12
FY13
FY14
Average deal size (US$ million)

Number of big-ticket deals
EF;kjYak]klYc]af
Indian units
K]hl]eZ]j*()+$l`]J]k]jn]:YfcgÂf\aY J:A!Yddgo]\
^gj]a_fhjgegl]jklgaf[j]Yk]l`]ajklYc]kafl`]ajAf\aYfmfalk
oal`gmlk]]caf_alkYhhjgnYd$eYcaf_al]Yka]j^gjkm[`\]Ydk
to occur.
Af>Q),$k]n]jYd^gj]a_fEF;kaf[j]Yk]\klYc]kafl`]aj
Af\aYfmfalk&<]khal]dgo?<H[m]kYf\kdgof]kkafj]^gjek$
afl]jfYlagfYdhdYq]jkYj]Zmddak`YZgmll`]^mlmj]g^l`][gmfljq
Yf\Yj]]phYf\af_l`]aj^ggl`gd\aflàkeYjc]l&Oal`l`]
kdgoaf_][gfgeq$nYdmYlagfk`Yn]lYc]fYZ]Ylaf_$oà[``Yk
YlljY[l]\^gj]a_fhdYq]jklg_ggfYk`ghhaf_khj]]&9lYlae]
when Indian companies are battling with mounting debt on
l`]ajZggckYf\à_àfl]j]kl[gklk$egklEF;kYj]fgl^Y[]\
oal`l`]k]hjgZd]ek&L`]^Y[ll`Yll`]q`Yn]ka_fa[Yfl[Yk`
reserves has enabled them to raise their holdings in Indian
mfalk&Egj]gn]j$l`]^Yddaf_Af\aYfjmh]]$oà[``Ykj]_akl]j]\
Y\][daf]g^))&,af*()+$eYc]kalYdm[jYlan]lae]^gj
^gj]a_f]flala]klgZmqafl`]Af\aYfeYjc]l&LgY\\lglàk$af
Dggcaf_Yll`]kljYl]_qZ]àf\km[`\]Ydk$oàd]l`]_]f]jYd
motive remains increasing presence in Indias growing
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kljYl]_qlg]n]flmYddqeYc]l`]ajAf\aYfmfalkhjanYl]&
EYjc]lj]_mdYlagfkYddgohjgegl]jklg\]daklY[gehYfqa^
l`]aj`gd\af_]p[]]\k1(&?gaf_hjanYl]`Yk_glalkY\\]\
advantages. The parent company can manage growth
hdYfkem[ègj]^j]]dqYf\]^[a]fldq$oal`gmlogjjqaf_
about minority shareholders. It needs to disclose minimum
af^gjeYlagfYZgmlalkgh]jYlagfk$kYnaf_al^jgeYddg^l`]
eYf\Ylgjq\ak[dgkmj]j]imaj]e]flke]Yfl^gjYdakl]\]flalq&
Transactions 2014
E9afl`]f]o]jYg^
;gehYfa]k9[l*()+
L`]f]o;gehYfa]k9[l*()+akYdYf\eYjcgfl`]Af\aYf
regulatory landscape. The new Act has been enacted to
_jY\mYddqj]hdY[]l`]gd\;gehYfa]k9[lg^)1-.$oal`l`]
Yaeg^]fYZdaf_Yf]YkqYf\]^[a]fl]fnajgfe]fllg[gf\m[l
Zmkaf]kk$aehjgn]Y[[gmflYZadalq$]f`Yf[]ljYfkhYj]f[q$
]f^gj[]k]d^%[gehdaYf[]Yf\aehjgn][gjhgjYl]_gn]jfYf[]af
the Indian business environment.
Impact: LàkakYo]d[ge]egn]$Ykalakdac]dqlg
]fkmj]Ykh][aYdar]\Yml`gjalq^gjkm[`[Yk]k$
j]kmdlaf_afaf[j]Yk]\]^[a]f[qYf\bmkla[]$Yf\
appropriate regulation and oversight.
The new Act contains several provisions that would help

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E9$[gjhgjYl]j]kljm[lmjaf_!&:jgY\dqkh]Ycaf_$l`]f]o
9[l^g[mk]kgfl`j]][jala[Ydl`]e]k]Yka]jj]kljm[lmjaf_$
afn]klgjhjgl][lagfYf\af[j]Yk]\j]_mdYlgjq^jYe]ogjc&Làk
ogmd\`]dheYc]l`]hjg[]kkegj]keggl`Yf\ljYfkhYj]fl$
oàd]hmllaf_[`][ckafhdY[]lg]fkmj]l`Yll`]k]hjgnakagfk
Yj]^gddgo]\&Kge]g^l`]c]qhjgnakagfkh]jlYafaf_lgE9
Yj]2
10
Establishment of NCLT: Under the old Companies

9[l$Yfqk[`]e]g^YjjYf_]e]fl`Y\lgZ]eYf\Ylgjadq
Yhhjgn]\Zql`]@a_`;gmjl$oà[``Ykbmjak\a[lagf
over the companies involved in the transaction. This
was intended to ensure the Courts oversight on the
ljYfkY[lagf$afgj\]jlgZjaf_^Yajf]kkYf\bmkla[]^gjYdd
hYjla]kafngdn]\&@go]n]j$l`]j]o]j]ka_fa[Yfl[gf[]jfk
Yjgmf\\]dYqafk]]caf_YhhjgnYdk$oal`l`]hjg[]kklYcaf_
q]Yjkafkge][Yk]k&@]f[]$l`]f]o9[l[Yddk^gjl`]
[j]Ylagfg^l`]FYlagfYd;gehYfqDYoLjaZmfYd F;DL!&
Fast track merger:Mf\]jl`]gd\9[l$Yfqe]j_]j

between group companies or between a parent
company and a subsidiary would require compliance
with all the provision listed under sections 391 to
+1,$h]jlYafaf_lgl`]gn]jka_`lg^l`]@a_`;gmjl$
\ak[dgkmj]fgjekYf\gl`]jYkh][lk&@go]n]j$l`]
new provision does not require to be engaged with
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gjegj]keYdd[gehYfa]k$ Z!Y`gd\af_[gehYfq
Yf\alko`gddqgof]\kmZka\aYjq OGK!$gj [!gl`]j
prescribed companies. This provision does not apply
to mergers between small public companies but
lgZgl`hmZda[Yf\hjanYl][gehYfa]kaf[Yk]g^Y
merger/demerger between a holding company and a
WOS.
Impact: This move is intended to help companies

Ynga\lae]%[gfkmeaf_[gmjlhjg[]kk]kafl`][Yk]g^
afl]jfYdj]kljm[lmjaf_$eYcaf_l`]hjg[]\mj]lae]Yf\
[gkl]^[a]fl&Alakdac]dqlg]f[gmjY_]j]kljm[lmjaf_
among small enterprises and group companies.
Cross-border merger: The old Companies Act was

daeal]\lgYddgoaf_^gj]a_f[gehYfa]klgZ]e]j_]\
aflgYfAf\aYf]flalq&@go]n]j$YfAf\aYf[gehYfq
was not permitted to merge/amalgamate with a
^gj]a_f[gehYfq&L`]f]o9[lj]egn]klàkZYjja]j
by allowing mergers both ways.
Impact: L`]egn]akdac]dqlghjgna\]aeh]lmklg
[jgkk%Zgj\]jljYfkY[lagfk&Alg^^]jk]paZadalqlgAf\aYf
companies in structuring overseas operations. It also
provides an opportunity to Indian players to establish
corporate strategies on a global scale.
Merger of a listed company with an unlisted company:

9[[gj\af_lgl`]f]o9[l$l`]e]j_]jg^Ydakl]\[gehYfq
oal`Yfmfdakl]\gf]eYqfglYmlgeYla[YddqeYc]l`]
f]odq^gje]\]flalqYdakl]\[gehYfq&Aloadd`Yn]lg_g
l`jgm_`l`]daklaf_hjg[]kkZqeYcaf_YhmZda[g^^]jaf_lg
_]ldakl]\&9\\alagfYddq$af[Yk]g^km[`Yj]n]jk]e]j_]j$
l`]k`Yj]`gd\]jkg^l`]dakl]\ljYfk^]jgj[gehYfqemklZ]
hjgna\]\Yf]palg^^]jYlY^Yajhja[]lg[geh]fkYl]^gjl`]
dgkkg^daima\alq&
Impact: This provision helps streamline the merger
hjg[]kkYf\akYae]\Yl]daeafYlaf_l`]hgkkaZadalqg^
ZY[c\ggjdaklaf_g^[gehYfa]kl`jgm_`j]n]jk]e]j_]jk&
Egj]gn]j$alhjgna\]kYf]palghhgjlmfalqlg\akk]flaf_
k`Yj]`gd\]jko`gogmd\dac]lgghlgml&
Minority squeeze out: 9[[gj\af_lgl`]f]o9[l$af[Yk]k

o`]j]l`]Y[imajgjZ][ge]kl`]k`Yj]`gd\]jg^1(gj
egj]klYc]g^Y[gehYfq$aloadd[gehmdkgjadq`Yn]lg
fgla^ql`]lYj_]l[gehYfqgâlkafl]flagflgY[imaj]l`]
ZYdYf[]klYc]`]d\Zqeafgjalqk`Yj]`gd\]jk&
Impact: Làkhjgnakagf_jYflkj]da]^lgeafgjalq
k`Yj]`gd\]jkZqhjgna\af_l`]eYf]palghhgjlmfalqYlY
^Yajdq\]l]jeaf]\hja[]&AlYdkg^Y[adalYl]kl`][gfkgda\Ylagf
g^l`]`gd\af_gêafgjalqk`Yj]`gd\]jkoal`gmlYfqdgf_
drawn out litigation.
Rehabilitation of sick companies: The new Act contains

provisions to increase creditors say in the revival and
j]`YZadalYlagfhjg[]kkg^Yka[c[gehYfq&L`]9[lYddgok
k][mj]\[j]\algjk$j]hj]k]flaf_-(gjegj]g^l`]
gmlklYf\af_\]Zlkg^Y[gehYfq$lgd]YfYhhda[Ylagfoal`
l`]F;DL^gj\][dYjaf_Y[gehYfqka[c&Egj]gn]j$l`]f]o
l]klg^ka[cf]kkoaddZ]l`]afYZadalqg^Y[gehYfqlghYq
alk\]Zlk$afkl]Y\g^l`]hj]nagmk[jal]jaY]jgkagfg^f]l
ogjlòà[``YkfgoZ]]fj]egn]\&
Impact: L`]hjgnakagf`]dhkY\\j]kkl`][gf[]jfkg^
[j]\algjk$o`g`Yn]YdoYqk[jala[ar]\l`]Af\aYf[gjhgjYl]
d]_akdYlagf&L`]kmZklalmlagfgâfYZadalqlghYqgn]j
f]logjlàkYo]d[ge]egn]$Ykl`]f]logjlòYkYf
afYhhjghjaYl]e]Ykmj]Yf\oYkkmZb][llgY[[gmflaf_
considerations.
Limit for objection to the scheme of arrangement:

Mf\]jl`]gd\;gehYfa]k9[l$Yfqk`Yj]`gd\]j$[j]\algj
afl]j]kl]\hYjlq[YfgZb][llgYk[`]e]g^YjjYf_]e]fl
e]j_]j$\]e]j_]j$Y[imakalagf$]l[&!Z]^gj]Y[gmjla^
he/she deems the proposed scheme adverse to personal
afl]j]klk&@go]n]j$l`]f]o9[lklYl]kl`YlgfdqYh]jkgf
`gd\af_Yld]Ykl)(k`Yj]kgjY[j]\al`gd\af_g^Yl
d]Ykl-g^l`]lglYdgmlklYf\af_\]Zl[YfgZb][llgl`]
proposed scheme.
Impact: Làkegn]oadd`]dhhmlYf]f\lg^jangdgmk
dala_Ylagfkl`Ylk`Yj]`gd\]jkd]Y_YafklY[gehYfq$
thereby reducing unnecessary delays or potential
\]jYade]flg^Y_an]fk[`]e]g^YjjYf_]e]fl&9ll`]
kYe]lae]$l`]afl]j]klkgêafgjalqk`Yj]`gd\]jkYj]c]hl
afeaf\Zqhjgna\af_l`]el`]ghlagflg]pala^l`]qYj]fgl
[ge^gjlYZd]oal`l`]k[`]e]g^YjjYf_]e]fl&
Transactions 2014
11
Private equity
highlights
Af>Q),H=afn]kle]flkYj]]ph][l]\lgZ]MK)(&)Zaddagf
[gn]jaf_,*)\]YdkYka_fa[Yflaf[j]Yk]afY__j]_Yl]
\]YdnYdm]&Làkaf[j]Yk]aflglYdnYdm]gâfn]kle]flk[YfZ]
YlljaZml]\lgaf[j]Yk]\fmeZ]jg^Za_\]Ydk MK)((eaddagf
Yf\YZgn]!\mjaf_l`]q]Yj&L`]j]o]j]*+km[`ljYfkY[lagfk
Y__j]_Ylaf_MK.&)Zaddagfegj]l`Yf\gmZd]Yk[gehYj]\
to US$2.6 billion across 12 deals in FY13. This included two
mega deals (US$1.2 billion investment by Qatar Endowment
>mf\af:`Yjla9ajl]dYf\MK/0,eaddagfafn]kle]flZqY
;YfY\aYfh]fkagf^mf\Yf\A<>;aflog`q\jghgo]jhdYflkg^
BYahjYcYk`Hgo]jN]flmj]k&AfY\\alagflgl`]k]$l`]j]o]j]0
gl`]j\]Ydkoal`YnYdm]g^MK*((eaddagfYf\YZgn]j]kmdlaf_
in an increase in the total value.
Domestic consumption theme continues

to attract PE players. Technology sector
kYoka_fa[Yflaf[j]Yk]af\]Ydngdme]k
Yf\af^jYkljm[lmj]k][lgjaf\]YdnYdm]&
Oàd]l`]nYdm]oYk\jan]fZqZa_la[c]l\]Ydk$l`]ngdme]oYk
\geafYl]\Zq]Yjdq%klY_]\]Ydk&L`]fmeZ]jg^]Yjdq%klY_]
\]Ydk\mjaf_l`]q]YjkmjhYkk]\l`]lglYdfmeZ]jg^_jgol`
\]YdkZqlog%làj\&Làk[d]Yjdqj]][lkl`]]ngdmlagfg^f]o
k]lgâfn]klgjkN;'9f_]d^mf\kafl`]Af\aYfH=][gkqkl]e
lg_]l`]joal`qgmf_]flj]hj]f]mjkdggcaf_^gjhYjlf]jklg
ZY[cl`]ajZmkaf]kka\]Yk&L`]Y[lanalqafl`]_jgol`klY_]
\][daf]\Zq)0gfl`]ZY[cgô]Yc][gfgea[_jgol`$oà[`
aflmjf$d]\lgdgoj]imaj]e]flg^[YhalYd&Oal`YdYj_]gn]jYdd
H=hgjl^gdag$k][gf\Yjq\]Ydk H=lgH=\]Ydk!Y[[gmfl]\^gj
Yka_fa[Yflk`Yj]g^l`]_jgol`\]YdkYf\_gaf_^gjoYj\Yj]
gfdq]ph][l]\lgaf[j]Yk]&
L][`fgdg_q[gflafm]\oal`à_`]klfmeZ]jg^\]Ydk egj]l`Yf
+(af[j]Yk]^jgedYklq]Yj!^gddgo]\ZqJ;H$`]Ydl`[Yj]Yf\>K
oal`-/$,.Yf\,,\]Ydk$j]kh][lan]dq&Afl]jekg^nYdm]$l`]lgh
n]k][lgjkl`Yl[gfljaZml]\.(g^l`]lglYdafn]kle]flk\mjaf_
l`]q]Yjo]j]l][`fgdg_q$af^jYkljm[lmj]$l]d][ge$J;HYf\J@;
eYbgjdq\jan]fZqZa_%la[c]lljYfkY[lagfk&
12
Investment activity continues to be broad based with nearly 7

\a^^]j]flk][lgjk[gfljaZmlaf_lg/-g^l`]lglYd\]YdnYdm]
kYe]Ykhj]nagmkq]Yj&@go]n]j$\ge]kla[[gfkmehlagfd]\
k][lgjko]j]l`]egklY[lan]oal`[dgk]lg-(g^\]Ydngdme]k
announced in sectors such as retail and consumer products
J;H!$^gg\Yf\Y_ja[mdlmj]$`]Ydl`[Yj]$fYf[aYdk]jna[]k >K!
Yf\j]Yd]klYl]$`gkhalYdalqYf\[gfkljm[lagf J@;!&
L`]q]YjkYokge]kgjlg^j]nanYdafZa_\]Ydkafl`]Af^jYkljm[lmj]
k][lgjoal`YdegklY1(af[j]Yk]af\]YdnYdm]af>Q),&L`]J;H
k][lgjYdkgj]hgjl]\egj]l`Yf)((_jgolàf\]YdnYdm]\m]
lgdYj_]afn]kle]flkaf]%[gee]j[]Zmkaf]kk]kkm[`Yk>dahcYjl$
Snapdeal etc.
Exhibit 6. Aggregate PE investments

467
421
381
381
252
5,460
8,341
9,129
6,643
10,161
FY10
FY11
FY12
FY13
FY14
Value (US$ million)
Volume
Source: VCC Edge Venture Intelligence and EY analysis
Exhibit 7. Stage-wise analysis (by volume)
170
118
208
166
74
61
72
53
80
37
212
192
150
134
9
10
FY10
Buy-out
FY11
Growth
PIPE
11
FY12
123
12
FY13
10
FY14
Early Stage
Source: VCC Edge, Venture Intelligence and EY analysis
Transactions 2014
13
Exhibit 8. Sector-wise analysis by value (US$ million)
1,595
1,460
1,260
1,149
1,033
688
669
628
324
293
291
232
227
313
Tech
Infra
Telecom
RCP
RHC
HC
FS
Auto
F&A
CBP
M&E
Pharma
IP
Other

Other includes logistics, business services, oil and gas, textiles, education, travel, metals and mining and chemicals.
IP Industrial products, CBP Cement and building products, HC Healthcare, RHC Real estate, hospitality and construction,
RCP Retail and consumer products, F&A Food and agriculture
Exhibit 9. Sector-wise analysis by volume

Technology
96
Business services
14
Retail and
consumer products
57
Education
13
Healthcare
Financial Services
46
44
Infrastructure
Media and
Entertainment
13
12
Food and
Agriculture
Real estate,
hospitality and
construction
Industrial products
29
20
34
Pharmaceuticals
Other
10
33

Other includes auto, logistics, textiles, cement and building products, travel, chemicals, oil and gas, telecom, metals and mining.
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jYak]\Yk[gehYj]\oal`l`]hj]nagmkq]Yj&Egj]l`Yf-(g^
l`]k]^mf\ko]j]jYak]\Zqn]dYj_]^mf\eYfY_]jkA<>;
9dl]jfYlan]k$O]kl:ja\_];YhalYd$=n]jklgf]kDg_akla[k^mf\$
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MK.,,eaddagf\mjaf_l`]q]Yj jkl[dgk]^gjalkMK)Zaddagf
Af^jYkljm[lmj]^mf\!afo`YloYkl`]dYj_]klAf\aY%kh][a[^mf\
kaf[]*()(&
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Af\aY%ZYk]\^mf\eYfY_]jk$]Y[`g^l`]k]^mf\jYak]kmf\]jdaf]
l`]aehgjlYf[]g^_gg\ljY[cj][gj\Yf\'gj\a^^]j]flaYl]\
Yf\^g[mk]\afn]kle]flkljYl]_qg^l`]^mf\eYfY_]j&L`]
[gflafmaf_^mf\jYakaf_[`Ydd]f_]k\a\j]][lgfl`]f]o^mf\
jYakaf_Yffgmf[]e]flk$oà[`Yegmfl]\lgMK-&,Zaddagf
^jgeMK/&0Zaddagfaf>Q)+&
14
=palY[lanalqf]]\kka_fa[Yflhmk`
L`]j]akYka_fa[Yfl^g[mkYddYjgmf\gf]palkZmll`]j]
o]j]gfdq)**]palkaf>Q),Yk[gehYj]\lg)(.af>Q)+3
`go]n]j$egj]aehgjlYfldq$l`]lj]f\akYjgmf\+-(lg,((
afn]kle]flkYffmYddq&G^l`]lglYd]palk$eYpaemeo]j]af
dakl]\[gehYfa]kl`jgm_`l`]gh]feYjc]ljgml]^gddgo]\Zq
ZmqZY[ck&AHGeYjc]lko]j]najlmYddq[dgk]\\mjaf_l`]q]Yj
Yf\l`]j]o]j]gfdq^gmjH=%ZY[c]\AHGk\mjaf_l`]q]Yj$
[gehYj]\oal`l`j]]af>Q)+&L`]]palkl`jgm_`l`]kljYl]_a[
jgml]\][daf]\Zq*.lg)1[gehYj]\oal`*.afhj]nagmk
q]Yjoal`Y\][daf]afl`]gn]jYddE9Y[lanalq&=palhj]kkmj]k
`Yn]Ydkgd]\^mf\eYfY_]jklg^g[mkegj]Y__j]kkan]dq
gfh]j^gjeYf[]aehjgn]e]flYf\ghlaearYlagfY_]f\YYl
afn]kl]]kYf\egj]Yf\egj]?HkYj]Y[lan]dq]f_Y_af_oal`
l`]ajhgjl^gdag[gehYfa]k&
Exhibit 10. Funds announced and raised
Exhibit 11. Number of exits
By value (US$ million)

19
FY13
FY14
7,853
5,398
2,395
26
24
18
2,849
50
By volume
49
4
FY13
38
27
FY14
Announced
35
34
Raised
25
10
FY13
Buyback
IPO
Secondary
Strategic
FY14
Open Market
Source: VCC Edge, Venture Intelligence and EY analysis
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]flala]kYf\hgkkaZd]\an]kle]flkg^fgf%[gj]Zmkaf]kk]klgaehjgn]ZYdYf[]k`]]lkgj[gf[]fljYl]gf[gj]Zmkaf]kk]k$
Yf\ aaa!\an]kle]flklghjgna\]]pallgaf[meZ]flH=afn]klgjk&
=palkk`gmd\[gflafm]lglYc][]fl]jklY_]Yf\af[j]Ykaf_dq_]legj]ZYf\oa\l`Yf\^g[mk^jge^mf\eYfY_]jk&L`]]pal
Y[lanalqf]]\klgka_fa[Yfldqaehjgn]^gjl`]_jgol`Yf\kmklYafYZadalqgÂf\aYfH=af\mkljq&
L`]f]o_gn]jfe]flkhgda[q\aj][lagfakdac]dqlg`Yn]Yka_fa[YflaehY[lgfl`]Y[lanalq$afl`]dYll]j`Yd^g^l`]q]Yj&
Hgkalan]egn]kkm[`Ykaeh]lmklgaf^jYkljm[lmj]$[YhY[alqZmad\af_$aehjgnaf_]phgjl[geh]lalan]f]kk
g^l`]Af\aYfaf\mkljqYf\klYZadalqafj]_mdYlgjqYf\lYpj]_ae][gmd\Ym_mjo]dd^gjl`]\]eYf\^gjH=[YhalYd&
Transactions 2014
15
K][lgj^g[mk
Automotive
16
<]khal]l`]`]Y\oaf\k^Y[]\gn]jl`]dYkl[gmhd]g^q]Yjk$
l`]k][lgj`Ykoalf]kk]\jgZmklE9Y[lanalq&Làkj]][lk
l`][gf\]f[]g^d]Y\af_af\mkljqhdYq]jkafl`]dgf_l]je
hgl]flaYdg^l`]k][lgj&
Randhir Kochhar,
Partner-Automotives, Transaction Advisory Services
Auto components
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jYl]kY\n]jk]dqY^^][l]\l`]kYd]kngdme]afl`]af\mkljq&
<]khal]làkkdm__ak`h]j^gjeYf[]$l`]E9afl`]k][lgj
af[j]Yk]\&Af>Q),$l`]j]o]j]YlglYdg^*0\]Ydkafl`]k][lgj
oal`YfY__j]_Yl]\ak[dgk]\nYdm]g^MK+/1eaddagf&Oàd]l`]
deal volume was at par with what was seen in the previous year
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9mlgeglan];gehgf]flEYfm^Y[lmj]jk9kkg[aYlagf 9;E9!$
l`]Af\aYfYmlg[gehgf]flkk][lgjak]ph][l]\lgf]Yjdq
ljahd]afnYdm]gn]jl`]f]pl\][Y\]lgj]Y[`MK))-Zaddagf
Zq>Q*)^jgeMK,(&.Zaddagfaf>Q)+&Làkkljgf__jgol`
akdac]dqlgZ]kmhhgjl]\Zql`]af[j]Ykaf_\ge]kla[Yf\
]phgjl\]eYf\^gjhYkk]f_]jYf\[gee]j[aYdn]à[d]kYk
o]ddYkl`]af[j]Ykaf_k`Yj]g^]phgjlk^gjegkl[gehgf]fl
eYfm^Y[lmj]jk&9dl`gm_`l`]k][lgj^Y[]k[`Ydd]f_]kafl`]
f]Yjl]je$l`]dgf_%l]jegmldggcj]eYafkhgkalan]&9[[gj\af_
lg9;E9]klaeYl]k$hjg\m[lagfg^hYkk]f_]jn]à[d]koadd_jgo
l`j]]^gd\lg)(eaddagfmfalkaf>Q*)^jge+&*eaddagfmfalkaf
>Q)+$j]hj]k]flaf_Y;9?Jg^)-&AfY\\alagf$l`]f]]\lg
[gehdqoal`]eakkagfYf\kY^]lqfgjek$af[j]Ykaf_d]n]dkg^
af\a_]farYlagfZq_dgZYdGja_afYd=imahe]flEYfm^Y[lmj]jk
G=Ek!Yf\hj]nYd]f[]gÂf\aYYkYeYfm^Y[lmjaf_`mZ
^gjkeYdd[YjkYj]]ph][l]\lgZggkll`]\ge]kla[Ymlg
[gehgf]flkk]_e]fl&L`]k]^Y[lgjk`Yn]d]\lgkljgf_
\ge]kla[Yf\afZgmf\E9Y[lanalqafl`]k]_e]fl\mjaf_l`]
q]Yj&Gf]g^l`]dYj_]kl\]Ydkafl`]k][lgjoYkl`]^gjeYlagf
g^Y_dgZYdYddaYf[]^gjYmlg[gehgf]flkZ]lo]]fl`]EYàf\jY
?jgmhYf\KhYafk;A=9mlgeglan]&Mf\]jl`]l]jekg^l`]
YddaYf[]$EYàf\jYEYàf\jYDl\&Y[imaj]\Y)+&-afl]j]kl
afKhYfak`Ymlg[gehgf]fleYfm^Y[lmj]j$;A=9mlgeglan]K9$
^gjMK)*+eaddagf&;gf[mjj]fldq$;A=9mlgeglan]$l`jgm_`
alkmfal9mlge]lYdK9$Y[imaj]\Yfmf\ak[dgk]\eYbgjalq
klYc]afEYàf\jYKqkl][`$l`][gehgf]flZmkaf]kkYje
gÊYàf\jY?jgmh$^gjMK)++eaddagf&L`]Y_j]]e]flak
Yae]\Yl]klYZdakàf_Y_dgZYdkmhhdqf]logjcg^Ymlgeglan]
[gehgf]flkoal`Y[geZaf]\YffmYdlmjfgn]jg^YhhjgpaeYl]dq
MK+Zaddagf$oal`gh]jYlagfkkhYffaf_l`]_dgZ]&
9ka_fa[Yfllj]f\oalf]kk]\\mjaf_l`]q]YjoYkafl]jfYlagfYd
gj_YfarYlagfkZmqaf_gmll`]ajklYc]kafAf\aYfBNk$Z]llaf_
gfl`]gmldggcg^l`]Af\aYfYmlgeglan]eYjc]l&L`]k]
ljYfkY[lagfkYj]Z]af_]p][ml]\Zq^gj]a_fhdYq]jklg
]p]j[ak]af[j]Yk]\[gfljgdg^dg[Ydgh]jYlagfk$Yegn]oà[`
is in line with the control centralization strategy witnessed
Yegf__dgZYdG=Ek&L`][YhY[alqmladarYlagfafl`]k][lgj`Yk
Zgllge]\gml$oà[èYc]k[gehYfa]koal``]Ydl`qZYdYf[]
k`]]lk$kljgf_hgl]flaYdafn]kle]fl[Yf\a\Yl]kl`Yl[Yf
h]j^gjeo]ddo`]f\]eYf\ha[ckmh&Egj]gn]j$l`]kdgo\gof
k]]fZql`]k][lgj`Yk`]dh]\Zjaf_\gofnYdmYlagfkg^Ymlg
[gehYfa]k$Yf\lg_]l`]joal`l`]\][dafaf_Af\aYfJmh]]$
làkeYc]kY[imajaf_km[`[gehYfa]kYdm[jYlan]hjghgkalagf&
?]jeYfq%ZYk]\E9@D=?jgmhY[imaj]\l`]j]eYafaf_,(
afl]j]klafAf\aY%ZYk]\haklgfeYfm^Y[lmj]j$EY`d]Af\aY
HaklgfkDl\&$^jgealkBNhYjlf]jAf\aYHaklgfkDaeal]\$oàd]
Yfgl`]j?]jeYfqhdYq]j>j]m\]fZ]j_;gC?$l`jgm_àlk
mfalNaZjY[gmkla[?eZ@;gC?$Y[imaj]\l`]j]eYafaf_-(
afl]j]klafKa_eYNaZjY[gmkla[ Af\aY!Hnl&Dl\&$^jgealkBN
hYjlf]jKa_eY;gjhAf\aYDl\&
Transactions 2014
17
Outlook
Af>Q)-$nYjagmkk]_e]flkg^l`]k][lgj$km[`YkYmlg
[gehgf]flk af[dm\af_lqj]k!Yj]dac]dqlgj]hgjlkljgf_
E9Y[lanalq&Afl`]Ymlg[gehgf]flk]_e]fl$afZgmf\
\]Ydkea_`l[gflafm]lgj]][l^gj]a_f[gehYfa]kZmqaf_
gmll`]ajAf\aYfBNhYjlf]jkoal`Yf]q]gf[gfkgda\Ylaf_
l`]ajZmkaf]kk]kafAf\aY&Afl`]lqj]k]_e]fl$afgj_Yfa[
_jgolàkn]jqem[`gfl`][Yj\k^gjd]Y\af_\ge]kla[
hdYq]jk&9dl`gm_`dYklq]Yj$9hgddgLqj]kka_fa[Yfl
MK*&-ZaddagfZa\lgY[imaj]MK%ZYk]\;ggh]jLaj]
JmZZ]j;g&\a\fglkYadl`jgm_`$làkhjgna\]kYhj]na]o
g^l`]YeZalagmkhdYfkgÂf\aYfYmlg[gehgf]fl
eYfm^Y[lmj]jklgY[à]n]k[Yd]Yf\_jgol`&9_gg\
]pYehd]g^l`]_dgZYdYeZalagfkgÂf\aYfYmlgeglan]
[gehgf]fl[gehYfa]kakl`]Y[imakalagfg^F]meYq]j
L]c^gj$Y_dgZYd^gj_af_Yf\eY[àfaf_hdYq]j$Zq9el]c
Auto.
Af\aY`YkYdj]Y\qZ][ge]YeYfm^Y[lmjaf_`mZg^keYdd
[Yjk^gj_dgZYdYmlgeglan]eYfm^Y[lmj]jk&L`][gmfljqk
[gfka\]jYZd]\ge]kla[eYjc]lg^^]jaf_][gfgea]kg^
k[Yd]$klYZd]_jgol`hgl]flaYd$Yf\kmZklYflaYddYZgj
YnYadYZadalqeYc]alYnaYZd]hdY[]^gj]phgjlk&9f\fgl
bmkl^gjkeYdd[Yjk$l`][gmfljqakfgo]e]j_af_YkYf
]phgjl`mZ^gjea\%kar]\k]\YfkYf\mladalqn]à[d]kYk
o]dd&Oal`l`]\]hj][aYlagfafl`]Af\aYfJmh]]$Af\aYf
YmlgYf[addYjq[gehYfa]kg^^]jYlj]e]f\gmkghhgjlmfalq
YkYnaYZd]kgmj[af_\]klafYlagf^gj\]n]dgh]\eYjc]lk
km[`Ykl`]MKYf\=mjgh]&Egj]gn]j$l`]YjjanYdg^
l`]f]o_gn]jfe]flak]ph][l]\lgZjaf_afka_fa[Yfl
hgda[q[`Yf_]k$oà[òaddhjgna\]Y^ja]f\da]jafn]kle]fl
[daeYl]$l`]j]ZqYlljY[laf_^gj]a_fhdYq]jklg]klYZdak`
presence in the country. Industry participants are also
`gh]^mdl`Yll`]f]o_gn]jfe]flogmd\Zjaf_afj]^gjek
km[`Yk_gg\kYf\k]jna[]klYp$Yf\khmjaf^jYkljm[lmj]
\]n]dghe]fl$oà[òadd\jan]][gfgea[_jgol`Yf\
aehjgn][gfkme]jk]flae]flk$l`]j]ZqZjafaf_[`]]jlg
l`]af\mkljq&Goaf_lgYddl`]k]^Y[lgjk$o]Yj]dac]dqlg
k]]YdglgâfZgmf\Y[lagfafl`]k][lgj$kaeadYjlgl`]
trend seen over the last two years.
18
Exhibit 12. M&A deals in the automotives sector

39
29
28
668
191
379
FY12
FY13
FY14
Deal value (US$ million)
Number of deals
FY12
FY13
FY14
<ge]kla[
Inbound
17
13
14
Outbound
13
Total
39
29
28
*(
46
22
Inbound
327
62
234
Outbound
321
83
123
Total
668
191
379
Number of deals

<ge]kla[
K][lgj^g[mk
Cement and
building products
Transactions 2014
19
Consolidation and
\]d]n]jY_af_akl`]lYdc
g^l`]lgof
>Q),`YkZ]]fYZdg[cZmkl]jq]Yj^gjl`][]e]flaf\mkljqaf
l]jekgÊ9&L`]k][lgjj]hgjl]\YlglYdg^)1\]Ydk$f]Yjdq
-0à_`]jl`Yfl`]fmeZ]jg^\]Ydkj][gj\]\dYklq]Yj )*
\]Ydk!&Dggcaf_YlnYdm]Yko]dd$l`]k][lgjj][gj\]\egj]l`Yf
Yl`j]]%^gd\af[j]Yk]^jgel`]hj]nagmkq]Yj$oal`\]Ydkoal`
YfY__j]_Yl]\ak[dgk]\\]YdnYdm]g^MK)&)Zaddagf MK*00
eaddagfaf>Q)+!&Egnaf_gfl`]^gglkl]hkg^dYklq]Yj$l`]
Y[lanalqoYk[gehd]l]dq\geafYl]\Zq\ge]kla[ljYfkY[lagfk$
Ykl`]af\mkljqakZ]af_lahh]\^gjYeYkkan][gfkgda\Ylagf$\m]
lgYkalmYlagfg^gn]j[YhY[alqafYkdgoaf_][gfgeq&L`]k]
\]YdkY[[gmfl]\^gj//Yf\0,g^l`]k][lgjklglYd\]Yd
nYdm]Yf\ngdme]$j]kh][lan]dq$\mjaf_l`]q]Yj&L`]gmlZgmf\
^jgfloYk[gehd]l]dqkad]floal`r]jg\]Ydk&
Consolidation seems to be imminent in the Indian cement
af\mkljq&Oal`l`]kdgo\gofaf][gfgea[Y[lanalq$l`]af\mkljq
ak^Y[]\oal`kdm__ak`\]eYf\&L`][gmfljqlg\Yq`gmk]kegj]
l`Yf)((dYj_][]e]fleYc]jkYf\f]Yjdqloa[]l`]fmeZ]jg^
keYdd[]e]fleYfm^Y[lmjaf_hdYflkl`Yl`Yn]mf^YngjYZd][gkl
kljm[lmj]k&:]lo]]f>Q(1Yf\>Q)+$l`]af\mkljqk[YhY[alq
`Yk_jgofYlY;9?Jg^Yjgmf\)(&;]e]fleYfm^Y[lmj]jk
`Yn][gflafm]\lgY\\[YhY[alq_an]fl`]?gAk]klaeYl]kg^
hgl]flaYd\]eYf\^gj[]e]fl\m]lgl`][gmfljqkYeZalagmk
af^jYkljm[lmj]\]n]dghe]flhdYfk&Làk`Ykj]kmdl]\af
ka_fa[Yfl]p[]kkkmhhdqafl`]af\mkljq&@go]n]j$_an]f
l`]kdgo\]eYf\$l`]af\mkljqkYn]jY_][YhY[alqmladarYlagf
`Yk_gf]\gof^jge1+af>Q(/lgYdalld]egj]l`Yf/(
fgo&AfY\\alagflggn]j[YhY[alq$l`]af\mkljq`YkZ]]f
20
^Y[af_YfmeZ]jg^[`Ydd]f_]kkm[`YkY[ml]k`gjlY_]g^[gYd$
afY\]imYl]YnYadYZadalqg^jYadoYqoY_gfk^gjljYfkhgjl$Yf\à_`
input costs.
9ddl`]k]^Y[lgjkYj]hmllaf_ka_fa[Yflhj]kkmj]gfeYj_afk
Yf\hjglYZadalq$oà[àkeYcaf_almfnaYZd]^gjkge]g^l`]
hdYq]jklggh]jYl]&LgY\\lgl`Yl$k]n]jYd[gehYfa]k`Yn]
been struggling with heavy debt on their balance sheets and
hjgegl]jkYj]dggcaf_^gj]palghlagfk&KeYdd[]e]fl[gehYfa]k
Yf\[]e]fleYfm^Y[lmjaf_^Y[adala]kg^à_`dqd]n]j]\dYj_]j
companies have become possible acquisition targets and
the transactions seen during the year align to this trend. In
K]hl]eZ]j*()+$MdljYl][`;]e]fl$YkmZka\aYjqg^9\alqY:ajdY
?jgmh$Y[imaj]\log[]e]flmfalk^jgeBYqh]]?jgmhkBYqh]]
;]e]fl^gjMK.()eaddagf$eYcaf_all`]dYj_]kl\]Ydafl`]
k][lgj&L`]BYqh]]?jgmhmk]\l`]\]Ydlgljaekge]g^l`]\]Zl
^jgealkZYdYf[]k`]]lk&AfYkaeadYjljYfkY[lagf$K`jajYe?jgmh
\an]kl]\alkklYc]afKgml`%ZYk]\Kj]]BYqYbglà;]e]flklgEq
@ge]Af\mklja]kDaeal]\$YBNZ]lo]]fAjak`[]e]fleYc]j;J@
Hd[Yf\Eq@ge]?jgmh$afY\]Ydogjl`MK**1eaddagf&Làk
\an]klalmj]oYkYdkgafl]f\]\lghYj]l`]\]Zlgfl`]Zggckg^
K`jajYe?jgmh&
9hYjl^jge[gfkgda\YlagfYf\\an]klalmj]k$YfmeZ]jg^
[gjhgjYl]j]kljm[lmjaf_]p]j[ak]ko]j]Ydkgj][gj\]\&AfBmdq
*()+$afYZa\lgkaehda^qalk_jgmhkljm[lmj]afAf\aY$Koakk
Zmad\af_eYl]jaYdeYbgj@gd[aeYffgmf[]\alkhdYflge]j_]alk
`gd\af_je$@gd[aeAf\aY$oalàlkmfal9eZmbY;]e]flk$oàd]
Yll`]kYe]lae]$9eZmbYY[imaj]\@gd[aek-(&()klYc]af
9;;Daeal]\&AfYfgl`]jj][]flljYfkY[lagf$L`]Af\aY;]e]fl
Dl\& A;D!Yffgmf[]\l`]YeYd_YeYlagfg^loggâlkkmZka\aYja]k
oalàlk]d^&Mf\]jl`]ljYfkY[lagf$A;Dkdakl]\[gehYfqLjaf]ljY
Cement and unlisted entity Trishul Concrete Products are to
Z]e]j_]\oalÀ;D&L`]hmjhgk]g^làkhjghgk]\e]j_]jaklg
j]af^gj[]alk[gj]gh]jYlagfk&
Afl`][]e]flaf\mkljq$l`]j]`Yn]Z]]f[]jlYafY[imakalagfk
\jan]fZqdgf_%l]jehgl]flaYdg^l`]k][lgj&Oal`l`]^g[mk
fgoaf[j]Ykaf_gfaf^jYkljm[lmj]\]n]dghe]fl$l`]k][lgjak
fgo]ph][l]\lgk]]ka_fa[Yfl_jgolàfl`]ZY[c\jghg^
latent demand. This should continue to drive interest in the
k][lgj^jgeYfafn]kle]flklYf\hgafl&
Nitin Gupta,
Partner-Cement and building products, Transaction Advisory Services
Outlook
The Indian cement sector is poised to grow at a moderate
*+afl`]jklimYjl]jg^>Q)-\m]lgo]Yc\]eYf\
afl`]ea\klg^kdgo][gfgea[Y[lanalq&@go]n]j$Ykljgf_
lmjfYjgmf\ak]ph][l]\Ykl`]f]odq^gje]\_gn]jfe]flak
]ph][l]\lgaee]fk]dq^g[mkgfaehjgnaf_af^jYkljm[lmj]&
Gf]g^l`]c]q]fYZd]jkg^j]nanYdg^_jgolàkj]f]o]\
afn]kle]flkafl`][gmfljq$hYjla[mdYjdqafaf^jYkljm[lmj]&
L`]_gn]jfe]flak]ph][l]\lggn]j[ge]]paklaf_\]dYqk
afaf^jYkljm[lmj]hjgb][lkYf\[ge]mhoal`j]^gjekaf
k][lgjkdac]jgY\$l`]j]ZqYlljY[laf_afn]kle]flkaflgl`]
k][lgj&Al`Ykdakl]\\gofaf^jYkljm[lj]Yf\afn]kle]fl
j]^gjekYkgf]gâlklghl]fhjagjala]k^gjl`][geaf_
months. the government also intends to introduce a new
hdYflgeg\]jfar]mjZYfaf^jYkljm[lmj]$Yk[`]e]oà[`
oaddj]hdY[]l`]BYoY`YjdYdF]`jmFYlagfYdMjZYfJ]f]oYd
Eakkagfl`YloYk[geeakkagf]\mf\]jl`]hj]nagmk
_gn]jfe]fl&K`Yj]gâf^jYkljm[lmj]kh]f\af_afgn]jYdd
?<H`YkZ]]fkl]Y\adqaf[j]Ykaf_afl`][gmfljq^jge
-afl`]L]fl`>an]Q]YjHdYf >QH!$lg/&-afl`]
=d]n]fl`>QHlgYf]ph][l]\1&1afl`]Lo]d^l`>QH&9dd
l`]k]^Y[lgjkYj]dac]dqlg_an]YeYbgjZggkllg\]eYf\
^gj[]e]fl&Egj]gn]j$l`]`gmkaf_eYjc]l$oà[àk
[mjj]fldq^Y[af_Ykdgo\gof\m]lgà_àfl]j]kljYl]kYf\
[gfkljm[lagf[gklk$eYqk]]Yj]nanYd$]kh][aYddqafla]j%AA
Yf\la]j%AAA[ala]k$^mjl`]jhmkàf_mhl`][]e]fl\]eYf\&
;gfkgda\Ylagfak]ph][l]\lgZ]l`]Za__]kl\jan]jgÊ9
Y[lanalqafl`]k][lgj&HdYq]jk^jgel`]o]kl]jfYf\]Ykl]jf
hYjlg^l`][gmfljqYj]lgml]\YkhjgZYZd]Y[imaj]jkYk
\]eYf\afl`]k]j]_agfk[gflafm]klgZ]aflY[l$mfdac]l`]
kgml`]jfj]_agf$oà[àk^Y[af_gn]jkmhhdq&L`]j]^gj]$
eYfm^Y[lmjaf_^Y[adala]kYj]dac]dqlg_gmf\]jl`]`Yee]j&
9d]Y\af_[]e]fleYfm^Y[lmj]jakj]hgjl]\dq]q]af_
acquisitions in a move to triple its production capacity over
l`]f]pll`j]]lg^gmjq]Yjk&
J][]fldqaf9hjad$logg^l`]ogjd\kd]Y\af_[]e]fl
eYfm^Y[lmj]jkDY^Yj_]Yf\@gd[aeYffgmf[]\e]j_]j
hdYfk$oà[òaddd]Y\lgl`][j]Ylagfg^l`]dYj_]kl_dgZYd
[]e]fl[gehYfq$DY^Yj_]@gd[ae$oal`hj]k]f[]aff]Yjdq
1([gmflja]kYf\Y[geZaf]\eYjc]lnYdm]g^MK--
Zaddagf&AfAf\aY$@gd[aeakhj]k]fll`jgm_`9;;Yf\9eZmbY
;]e]fl$oàd]DY^Yj_]akhj]k]fll`jgm_`DY^Yj_]Af\aY
Hnl&Dl\& DAHD!&L`]_dgZYdljYfkY[lagfeYqj]kmdlaflg
Yhgl]flaYde]j_]jg^9;;$9eZmbYYf\DAHD$Yf\làk
hgl]flaYd\]YdeYqj]imaj]Yka_fg^^^jgel`];geh]lalagf
;geeakkagfgÂf\aY&K`gmd\làk\]Yd_gl`jgm_`$alakdac]dq
Exhibit 13. M&A deals in the cement and building

products sector
19
17
12
235
288
1,050
FY12
FY13
FY14
Number of deals
Source: Thomson ONE and EY analysis
FY12
FY13
FY14
12
16
Inbound
Outbound
17
12
19
<ge]kla[
56
131
0(0
Inbound
174
157
242
235
288
1,050
Number of deals
<ge]kla[
Total
Outbound
Total
lgj]kmdlafl`]^gjeYlagfg^l`]dYj_]kl[]e]fl[gehYfq
afl`][gmfljq$hYnaf_l`]oYq^gjegj][gfkgda\Ylagfkaf
l`]af\mkljqafgj\]j^Y[][geh]lalagf&
L`]k][lgjYdkg[gflafm]klgYlljY[lka_fa[Yflafl]j]kl
^jgekljYl]_a[Yf\fYf[aYdafn]klgjkYkl`][gmfljqk
dgf_%l]je_jgol`klgjqj]eYafkje&9f\oal`l`]
_gn]jfe]flfgolYcaf_mhl`]ZYlgf$Af\aYk][gfgeq
ak]ph][l]\lgoalf]kkkljgf_]j_jgolàf>Q)-$oà[`
oadd^mjl`]jZggklafn]klgj[gf\]f[]afl`][gmfljq&
Egj]gn]j$Yk[]e]fl[gehYfa]kYj]fglà_`dqaehY[l]\
Zqaehgjlkgj^gj]a_f]p[`Yf_]ngdYladalq$H=jekYj]o]dd
hgkalagf]\lgeYc]`Yf\kge]j]lmjfk&
Transactions 2014
21
K][lgj^g[mk
Chemicals
22
Afl`]k`gjllge]\amel]je$afZgmf\Y[lanalqafl`]
kh][aYdlq[`]ea[YdkkhY[]$]kh][aYddqafY_jg[`]ea[Ydk
ak]ph][l]\lgaf[j]Yk]\m]lgl`]c]]fafl]j]klZ]af_
evinced by the European and Japanese players.
Ajay Arora,
Partner Chemicals, Transaction Advisory Services
L]ha\nYdm]$j]kada]fl
volume
E9klgjqafl`][`]ea[Ydkk][lgjoYkYeapg^mhkYf\\gofk&
L`]k][lgjj]hgjl]\YlglYdg^+0\]Ydkaf>Q),$oà[àkYf
af[j]Yk]g^,)^jge*/\]Ydkafl`]hj]nagmkq]Yj&Gfl`]
gl`]j`Yf\$l`]\]YdnYdm]g^MK,-1eaddagfj][gj\]\\mjaf_
the year has registered a sharp decline compared to US$2.3
Zaddagfk]]faf>Q)+&Làkka_fa[Yfl\][daf]afnYdm]g[[mjj]\
Z][Ymk]>Q)+oYkYjYl`]j]p[]hlagfYdq]Yj$kaf[]alj][gj\]\
logZa_%la[c]lljYfkY[lagfk@af\mbY?jgmhkY[imakalagfg^MK%
ZYk]\kh][aYdlq[`]ea[Ydk[gehYfq@gm_`lgfAfl]jfYlagfYd^gj
MK)&(-ZaddagfYf\JYaf;geeg\ala]kY[imakalagfg^:]d_ame%
`]Y\imYjl]j]\[gYdlYjhal[èYfm^Y[lmj]j$Jl_]jkF&N&$^gj
MK1-*eaddagf&:Yjjaf_l`]k]log$j]klg^l`]ljYfkY[lagfk$
oal`\ak[dgk]\\]YdnYdm]$o]j]hj]\geafYfldqg^dgola[c]l%kar]
d]kkl`YfMK)((eaddagf!&Làklj]f\`Ykj]h]Yl]\alk]dâf
>Q),$o`]j])+gmlg^),\]Ydkoal`\ak[dgk]\nYdm]^Yddaf_af
the same deal range. The largest deal in this sector was valued
YlMK*..eaddagf$o`]j]9\alqY:ajdYFmng 9:F!kgd\alk
[YjZgfZdY[cZmkaf]kklgYfgl`]j_jgmhje$KCA;YjZgf:dY[c
Af\aY!&L`]\an]kle]floYkYae]\Ylj]\m[af_l`]\]ZlZmj\]f
gf9:FkZYdYf[]k`]]lYko]ddYklgkmhhgjll`][gehYfqk
_jgol`hdYfkYf\]fYZd]allg]p]j[ak]af[j]Yk]\^g[mkgfgl`]j
Zmkaf]kk]k hYjla[mdYjdqfYf[aYdk]jna[]kYf\Y_jaZmkaf]kk!&
L`]Y_ja[mdlmjYd[`]ea[Ydkk]_e]flj]hgjl]\l`]eYpaeme
fmeZ]jg^\]Ydk )/!\mjaf_l`]q]Yj$oalègklg^l`]eZ]af_
\ge]kla[&Af\aYkY_ja[mdlmjYd[`]ea[YdkeYjc]l$hYjla[mdYjdq
[jghhjgl][lagf[`]ea[Ydk$`YkYka_fa[Yflhgl]flaYd^gj
E9&L`][gmfljqakl`]k][gf\%dYj_]kleYjc]laf9kaY^gj
agrochemicals with low agricultural yields and low pesticide

consumption in comparison to global peers. In addition to
\][dafaf_kmhhdqg^YjYZd]dYf\Yf\jakaf_\]eYf\^gj^gg\af
Af\aY$alakoa\]dqYfla[ahYl]\l`Yll`]Af\aYfeYjc]loaddk]]
af[j]Yk]af[gfkgda\YlagfY[lanalqaf^mlmj]&L`]Af\aYf[`]ea[Yd
af\mkljq`Ykàklgja[YddqZ]]fà_`dq^jY_e]fl]\$\geafYl]\
ZqkeYdd%lg%e]\amekar]\^Yeadq%gof]\Zmkaf]kk]k&L`]k]
[gehYfa]khgkk]kk]p[]dd]flcfgod]\_]g^hjg[]kk[`]eaklja]k
Yf\kqfl`]kak[YhYZadala]k$[mklgear]\hjg\m[lhgjl^gdagk$
kgmf\cfgod]\_]g^[gfkme]jf]]\k$oa\]\akljaZmlagf
f]logjcYf\kh]]\lgeYjc]l&L`]k]`Yn]Z]]f^]og^l`]
c]q\jan]jkZ]àf\Y[imakalagfkafl`]af\mkljq&AfBmdq*()+$
;gjgeYf\]d9_ja[gY[imaj]\l`]Y_jg^gjemdYlagf\anakagfg^
HmfbYZ;`]ea[YdkYf\;jghHjgl][lagf^gjYfmf\ak[dgk]\kme&
L`]ljYfkY[lagfoYkhjaeYjadqYae]\Yl]phYf\af_l`]g^^]jaf_k
g^;gjgeYf\]d$eYafdq^gjkmdh`mj%ZYk]\^gjemdYlagfk&AloYk
Ydkg\gf]lgklj]f_l`]fl`]jek\akljaZmlagff]logjcYf\
lg]phYf\alkeYfm^Y[lmjaf_hj]k]f[]lgl`]o]kl]jfhYjlg^
l`][gmfljq&AfEYq*()+$9\alqY:ajdY;`]ea[Ydk 9:;!`Y\
Y[imaj]\l`][`dgj%YdcYdaYf\h`gkh`gja[Y[a\\anakagfg^KgdYjak
;`]el][Àf\mklja]k^gjMK*/eaddagf&
<ge]kla[\]Ydkj]eYaf]\je\mjaf_l`]q]Yj$oal`*/\]Ydk
j][gj\]\YlYfY__j]_Yl]\\ak[dgk]\nYdm]g^MK,+/eaddagf&
9[lanalqoYkdYj_]dq\jan]fZqY_ja[`]ea[Ydk$Y[[gmflaf_^gj
-*g^l`]lglYd\]Ydngdme]&C]q\]YdkYffgmf[]\gfl`]
\ge]kla[^jgflo]j]l`]Y[imakalagfkg^kljYl]_a[klYc]kaf
EYf_Ydgj];`]ea[Ydk>]jladar]jkDl\&Zq<]]hYc>]jladar]jk
Af\mklja]kDl\& *,&,.!Yf\RmYja>]jladar]jk;`]ea[YdkDl\&
).!&Gfl`]gl`]j`Yf\$[jgkk%Zgj\]jY[lanalqoYkdgooal`,
inbound and 7 outbound deals.
Transactions 2014
23
Exhibit 14. M&A deals in the chemicals sector
Outlook
38
Af\aYk[`]ea[Ydkk][lgjakdac]dqlgoalf]kk[gflafm]\
_jgolàfE9afl`][geaf_q]Yjk&9kljgf__jgol`
^gj][YklYf\Yà_`d]n]dg^^jY_e]flYlagfà_`da_`lk
l`]hgl]flaYd^gj\]YdeYcaf_afl`]k][lgj&L`]k][lgj
`gd\kYka_fa[YflhgkalagfafAf\aYk][gfgeq$Z]af_
l`]làj\%dYj_]kleYjc]lafl`]o`gd]g^9kaY&AloYk
nYdm]\YlYf]klaeYl]\MK)(0Zaddagfaf*())Yf\ak
hjgb][l]\lgZ]nYdm]\YlYhhjgpaeYl]dqMK*1(Zaddagf
Zq*()/$oà[`ljYfkdYl]kaflgYkljgf_;9?Jg^)0&
9ll`]\ge]kla[d]n]d$l`]k][lgjakà_`dq^jY_e]fl]\
Yf\\geafYl]\Zq^Yeadq%gof]\keYdd%Yf\e]\ame%
kar]\Zmkaf]kk]k&L`]k]gj_YfarYlagfkdY[cl`]fYf[aYd
resources and managerial capabilities to compete
gfYfYlagfYdgj_dgZYdk[Yd]$Yf\l`]j]^gj]$l`]q
oadd[gfklYfldqj]eYafgfl`]dggc%gml^gjkljYl]_a[
hYjlf]jkgjafn]klgjk&Oal`l`]hja[]kg^mj]Yafl`]
afl]jfYlagfYdeYjc]l_gaf_kcqà_`$Af\aYak]ph][l]\
to ramp up production at home to reduce dependence
gfaehgjlk&EYjc]lhYjla[ahYflkYj]Ydkg`gh]^mdl`Yl
the new government would help revive urea units that
`Yn]Z]]fk`ml\gof^gjgn]jY\][Y\]$oà[òaddZ]
YeYbgjhgkalan]^gjl`]af\mkljq&Gfl`]afZgmf\^jgfl$
dgoh]f]ljYlagfg^kh][aYdlq[`]ea[Ydkafl`][gmfljq
ak]ph][l]\lg\jan]^gj]a_fafl]j]kl$kaf[]_dgZYd
[gehYfa]kdggclgafn]klaflàkhgl]flaYdà_`_jgol`
eYjc]l&L`]j]akYZmgqYflafl]j]klk`gofZqEF;k
to acquire companies operating in certain high growth
specialty chemicals segments such as paints and
[gYlaf_k$[gfkljm[lagf[`]ea[Ydk$YngjkYf\^jY_jYf[]
among others.
Oal`\]n]dgh]\][gfgea]kk`goaf_ka_fkg^j]nanYd
Yf\_jgol`$Af\aYf[`]ea[Yd[gehYfa]kYj]dac]dqlg
Z][ge]egj]Y[lan]Yf\[gflafm]lgk[gml^gjfa[`]
strategic targets that provide them with access to
f]oeYjc]lk$kljgf_l][`fa[Yd[geh]l]f[a]kYf\'gj
[gehd]e]flYf\Ya\l`]aj]paklaf_hjg\m[lhgjl^gdagk&
Gfl`]H=^jgfl$l`]dYkleYbgjH=ljYfkY[lagfoYkaf
*()*o`]f:dY[cklgf]afn]kl]\eafgjalqklYc]afK&@&
C]dcYj;g$Yd]Y\af_YngjkYf\^jY_jYf[][gehYfq&
L`]j]`YkZ]]fYdegkllogkm[[]kkan]q]Yjkg^l]ha\H=
activity due to considerable slowdown in the demand
Yf\afka_fa[Yfl[YhalYd]ph]f\almj]hjg_jYekZq
Af\aYf[gehYfa]k&@go]n]j$oal`_jgol`]ph][l]\lg
ha[cmhafAf\aYYf\eY[jg^Y[lgjkdggcaf_klYZd]gf
l`]gn]jk]Yk^jgfl$o]]ph][ll`YlAf\aYf[`]ea[Yd
[gehYfa]koaddklYjlj]%afn]klaf_afl]jekg^]phYf\af_
[YhY[ala]k$oà[àflmjf$ogmd\j]f]oH=afl]j]klaf
the sector in the short to medium term.
24
26
27
591
2,280
459
FY12
FY13
FY14
Number of deals
FY12
FY13
FY14
14
17
27
Inbound
Outbound
26
27
38
<ge]kla[
376
82
437
Inbound
58
197
)(
Outbound
157
*$(((
12
Total
591
2,280
459
Number of deals
<ge]kla[
Total
K][lgj^g[mk
Oil and gas
Transactions 2014
25
Securing long term gas

supplies
E9Y[lanalqafl`]gadYf\_Ykk][lgjj][gj\]\YfY__j]_Yl]
\ak[dgk]\nYdm]g^MK-&/Zaddagf&Làkakl`]à_`]klnYdm]
j][gj\]\afYfqk][lgj\mjaf_>Q),$Y[[gmflaf_^gjf]Yjdq*-
g^l`]q]YjklglYd\]YdnYdm]&
Af\aYk[gfklYflf]]\^gj]f]j_qk][mjalq[gflafm]klgZ]l`]
c]q\jan]jZ]àf\km[`ka_fa[YflE9ljYfkY[lagfk$kaf[]
l`]_YhZ]lo]]fkmhhdqYf\\]eYf\^gj]f]j_qj]kgmj[]k$
akkl]Y\adq_jgoaf_&<]Yd%eYcaf_afl`]k][lgjoYk\geafYl]\
ZqhmZda[k][lgjmf\]jlYcaf_k HKMk!$kaf[]l`]?gA`Y\
Z]]f]f[gmjY_af_klYl]%gof]\gadYf\_Yk[gehYfa]klg
Y__j]kkan]dqhmjkm]Y[imakalagfkg^]f]j_qYkk]lkgn]jk]Yk&
9ka_fa[Yflhgjlagfg^l`]k][lgjk\]YdnYdm]oYk_]f]jYl]\
ZqlogZa_%la[c]lgmlZgmf\Y[imakalagfkZqGF?;Na\]k` GND!$
l`]gn]jk]YkYjeg^klYl]%gof]\GadFYlmjYd?Yk;gjhgjYlagf
Daeal]\ GF?;!)!afBmf]*()+$Y)(klYc]afJgnmeY
9j]Y)G^^k`gj]:dg[cafEgrYeZaim]^jgeNa\]g[gf$bgafldq
oal`l`]klYl]gof]\GadAf\aYDaeal]\ GAD!$^gjMK*&,/-
Zaddagf$Yf\*!logegfl`kdYl]j$af9m_mkl*()+$GND
kgd]dqY[imaj]\YfY\\alagfYd)(klYc]afl`]kYe]Zdg[c
^jge9fY\Yjcg&L`]k]\]YdkYj]imal]kljYl]_a[Z][Ymk]$
Y[[gj\af_lgGND$9j]Y)`Ykl`]hgl]flaYdlgZ][ge]gf]
g^l`]ogjd\kdYj_]klDF?hjg\m[af_`mZkoal`]ph][l]\
j][gn]jYZd]_Ykj]kgmj[]kafl`]jYf_]g^+-/(L;>&Làk
hjgb][lakYdkgkljYl]_a[Yddqdg[Yl]\lgkmhhdqAf\aYk_jgoaf_
_YkeYjc]loal`DF?YlY[geh]lalan]hja[]&AfYfgl`]j\]Yd$
GNDY[imaj]\YfY\\alagfYd)*afl]j]klaf:dg[c:;%)($
Y\]]h%oYl]jg^^k`gj]Zdg[caf;Yehgk:Ykafaf:jYrad$^gj
MK-*1eaddagf$l`jgm_`]p]j[ak]g^hj]]ehlagfja_`lk&
9hYjl^jgeGND$oà[àkl`][gmfljqkdYj_]klgadj]f]j$
Af\aYfGad;gjhgjYlagfDaeal]\ AG;D!$j][]fldqYffgmf[]\
l`]Y[imakalagfg^Y)(afl]j]klafH]ljgdaYeFYkagfYd
:]j`Y\k H=LJGF9K!DF?%\]klaf]\fYlmjYd_Yk]d\kYf\
]phgjlhjgb][laf;YfY\Y&
GmlZgmf\Y[lanalqafl`]mhklj]YekhY[]ak]ph][l]\lg
_jgoYkAf\aYf[gehYfa]k[gflafm]lg`mfl^gjgad_Yk
Ykk]lk$kmhhgjl]\ZqYklYZd]_gn]jfe]flYll`][]flj]&
FG;kkm[`YkGND$GAD$?9AD$AG;$@H;DYf\:H;D$
Yj]k[gmlaf_^gj\ak[gn]j]\Yf\hjg\m[af_Ykk]lkYdkg
considering long term strategic investments to enhance
l`]ajj]k]jn]kj]kgmj[]k][mjalqhgkalagf&
Dilip Khanna,
Partner Oil and Gas, Transaction Advisory Services
26
Exhibit 15. M&A deals in the oil and gas sector
Outlook
<]eYf\^gjfYlmjYdj]kgmj[]kafl`]ogjd\kk][gf\%
egklhghmdgmk[gmfljqak]ph][l]\lgl`jan]^mjl`]j$
as the energy demand in emerging economies such as
;àfY$Af\aYYf\l`]Ea\\d]=Yklaf[j]Ykaf_dqY[imaj]
^g[mk&9[[gj\af_lgl`]Afl]jfYlagfYd=f]j_q9_]f[q$
Af\aYoaddZ][ge]l`]dYj_]klkgmj[]g^gad\]eYf\Y^l]j
*(*(&L`][gmfljqk]f]j_q\]eYf\oaddf]Yjdq\gmZd]
Zq*(+-$\jan]fZqY_jgoaf_][gfgeqYf\af[j]Yk]
in population. Crude oil consumption will surpass 8
eaddagfZYjj]dkh]j\YqZq*(+-$oà[àkegj]l`Yfl`]
[mjj]fl[gfkmehlagfg^9mkljYdaY$BYhYfYf\Cgj]Yhml
lg_]l`]j&:ql`Ylq]Yj$Af\aYoaddZ][ge]l`]k][gf\%
dYj_]klaehgjl]jg^gad$f]plgfdqlg;àfY&?an]flàk
jakaf_]f]j_q\]eYf\$\ge]kla[hdYq]jkoadd`Yn]lg
]eZYjcgfYfYeZalagmkhdYflgZggkll`]aj\ge]kla[
]phdgjYlagfYf\hjg\m[lagf[YhYZadala]k$oàd]Yll`]
kYe]lae]]f`Yf[]l`]ajhgjl^gdagg^gn]jk]YkgadYf\
gas assets through the inorganic route.
Af\aYkgadYf\_Ykk][lgjak]ph][l]\lgj][gj\egj]
gmlZgmf\E9kaf>Q)-$hjaeYjadq\jan]fZql`]
f]]\lgk][mj]gadYf\_Ykkmhhda]kZqFYlagfYdGad
;gehYfa]k FG;k!^gjl`][gmfljq&AfZgmf\Y[lanalq
ak]ph][l]\lgZ]daeal]\$eYafdqafl`]\gofklj]Ye
j]faf_Yf\l`]h]ljg[`]ea[YdkhY[]Yf\gad]d\
k]jna[]klgkge]]pl]fl&
14
15
10
109
960
FY12
FY13
5,730
FY14
Number of deals
FY12
FY13
FY14
<ge]kla[
Inbound
Outbound
15
14
10
%
689
Inbound
45
271
Outbound
64
%
-$/)1
109
960
5,730
Number of deals
Total
<ge]kla[
Total
Transactions 2014
27
K][lgj^g[mk
Power and
utilities
28
Strategic transactions
oal`^gj]a_fmladala]kYf\
sustainable energy helps
sustain activity
The Indian power and utilities sector put up an impressive show
afl`]E9eYjc]l&Af>Q),$l`]k][lgjj]hgjl]\*1\]Ydkoal`
YfY__j]_Yl]\ak[dgk]\nYdm]g^MK)&+Zaddagf&;gehYj]\lg
>Q)+$oàd]l`]\]Yd[gmfl`Ykf]Yjdqj]eYaf]\mf[`Yf_]\
Y_Yafkl*0\]Ydk!$\]YdnYdm]`Yk\gmZd]\^jgel`]MK.-*
million recorded last year. This is the second consecutive
af[j]Yk]afl`]k][lgjk\]YdnYdm]$ljYfkdYlaf_aflgY;9?J
g^.,gn]jl`]dYkllogq]Yjk&L`]Y[lagf`YkZ]]feYafdq
\ge]kla[affYlmj]$Y[[gmflaf_^gj.*Yf\++g^l`]k][lgjk
lglYd\]Ydngdme]Yf\nYdm]$j]kh][lan]dq&Oàd]l`]k][lgj
j][gj\]\eg\]jYl]afZgmf\Y[lanalq )(\]Ydk!$gmlZgmf\\]Ydk
o]j]Ydegklfgf%]pakl]fl gfdqgf]\]Yd!&
DYl]dq$l`]j]`YkZ]]fka_fa[YflY[lagfYjgmf\E9afl`]
k][lgj&Gn]jl`]dYkl\][Y\]$\jan]fZql`][gfka\]jYZd]
\]eYf\Yf\kmhhdq_Yh$YkYdkg]ph][lYlagfkg^à_`j]lmjfk$
\m]lgl`]l`]fhj]nYadaf_à_`k`gjl%l]jehgo]jhja[]k$
eYfq[gehYfa]k egkldqoalèafaeYdhgo]j'af^jYkljm[lmj]
k][lgj]ph]ja]f[]$a^Yfq!`Y\]fl]j]\l`]hgo]jk][lgj&L`]q
`Yn]hmlafhdY[]Y__j]kkan]afn]kle]flhdYfk$[geeallaf_
ka_fa[YflYegmflg^[YhalYdlgZmad\[YhY[ala]k&@go]n]j$l`]
[`Yf_]afl`]gn]jYdd][gfgea[]fnajgfe]fll`YlY^^][l]\l`]
YnYadYZadalqg^gmlka\]]imalq[YhalYdYf\k]n]jYdk][lgj%kh][a[
akkm]kj]dYl]\lgdYf\Y[imakalagf$]fnajgfe]flYd[d]YjYf[]k$
^m]dYnYadYZadalq$]l[&$j]kmdl]\afl`]k][gehYfa]k]f\af_
with heavily levered balance sheets and partially constructed
Ykk]lkj]imajaf_]imalq[YhalYd&;gfk]im]fldq$kge]g^l`]k]
[gehYfa]k`Yn]klYjl]\k]ddaf_g^^l`]ajYkk]lklgjYak]^mf\k$
kaf[]l`]ajYZadalqlgaf^mk]Y\\alagfYd]imalqafhjgb][lk`Yk
been severely impacted. They are also increasingly trying to
YlljY[l^gj]a_fkljYl]_a[hYjlf]jklgafb][ll`]j]imaj]\daima\alq
Yf\Zjaf_afl`]f][]kkYjql][`fa[Ydk][lgj]ph]jlak]afl`]aj
hjgb][lk&?dgZYdhdYq]jk$hYjla[mdYjdq^jgel`]=mjgh]Yf$Ea\\d]
=Ykl]jfYf\9kaYf[gmflja]k$Yj]k`goaf_af[j]Yk]\afl]j]kl
afl`]k][lgj&AfEYj[`*(),$BYahjYcYk`Hgo]jN]flmj]k$Y
hYjlg^l`]BYqh]]?jgmh$kgd\g^^loggâlkgh]jYlaf_`q\jg
hgo]jhjgb][lklgYfafn]kle]fl[gfkgjlamed]\Zq9Zm<`YZa
FYlagfYd=f]j_q;g&^gjMK.)0eaddagf&L`]egn]oYkafdaf]
oal`BYqh]]khdYfklgj]\m[]l`]egmflaf_\]ZlgfalkZggck&
=Yjda]j\mjaf_l`]q]Yj$>jYf[]ZYk]\?<>Km]rY[imaj]\/,
klYc]afY)(((EO[gYd%ZYk]\hgo]jhdYflZ]af_k]lmhZq
E]]fYckà=f]j_qYf\Af^jYkljm[lmj]@gd\af_kHnl&Dl\&
Transactions 2014
29
>gj]a_fmladala]k[gflafm]lg`Yn]YfYhh]lal]lgeYc]ka_fa[Yfl
investments in the Indian power generation sector. The dominant
l`]e]Yegf_hgo]jmladala]kaklgafn]klafgh]jYlagfYdhjgb][lkgj
hjgb][lkafY\nYf[]\klY_]kg^[gfkljm[lagf&@go]n]j[gehYfa]k
oal`Yhj]k]f[]af]imahe]fleYfm^Y[lmjaf_'=H;eYqYdkg
[gfka\]j_j]]f]d\hjgb][lk&Afl`]f]pl.%)*egfl`k$o]]ph][l
Yld]YklYfgl`]jloglgl`j]]\]Ydkgêgj]l`YfMK+((,((
million to be announced in this sector.
Kuljit Singh,
Partner Power and utilities, Transaction Advisory Services
Cleantech and renewable energy were the most popular

k]_e]flkl`YlYlljY[l]\eYpaemeYll]flagf^gj\]YdeYcaf_$
[gfljaZmlaf_`Yd^l`]\]Ydngdme]Yf\egklg^l`]\]YdnYdm]
\mjaf_l`]q]Yj&=f]j_q\]eYf\^jgej]f]oYZd]kgmj[]kaf
l`][gmfljqakgfl`]jak]Yf\l`]?gA`Ykj]Ydar]\l`]f]]\
lg]klYZdak`Ykljgf_^gmf\Ylagf^gjj]f]oYZd]]f]j_qlg
meet this demand. It has set up an ambitious target to more
than double its renewable energy capacity to almost 55
?OZql`]]f\g^l`]lo]d^l`n]q]YjhdYf *()*)/!&L`]
[gmfljq`YkeY\]ka_fa[Yfl`]Y\oYqlgoYj\ke]]laf_làk
lYj_]l$`Ynaf_afklYdd]\Y[YhY[alqg^Ydegkl+(?Oladdl`]
]f\g^*()+&Oaf\Yf\`q\jghgo]j`YkYlljY[l]\ka_fa[Yfl
afl]j]kl$oal`Zgl`l`]k]k]_e]flkk]]af_Ydglg^\]Ydk
h]jlYafaf_lgE9$H=Yf\N;&Afl`]oaf\k]_e]fl$\]Ydk
afngdn]\<D>kloafkYd]gôaf\]f]j_qhjgb][lkgf]af
LYeadFY\mlgLmdahJ]f]oYZd]Hgo]jl][`^gjMK+,eaddagf
Yf\l`]gl`]jafJYbYkl`YflgNagd]l?j]]fHgo]j^gjMK)(
eaddagf&Dggcaf_Yl`q\jghgo]j$afY\\alagflgl`]BYqh]]%
9Zm<`YZaFYlagfYd=f]j_q\]Yd$L]bYkkYjfacY@q\jg=f]j_a]k
Hnl&Dl\&$Ymfalg^?j]]fcg?jgmhHD;$Y_j]]\lgY[imaj]
:m\àd`q\jghgo]jhjgb][l^gjMK)(-eaddagf&
Outlook
<]YdY[lanalqafl`]hgo]jYf\mladala]kk][lgjak
]ph][l]\lgaehjgn]^mjl`]j&KaeadYjlgl`]hj]nagmk
q]Yj$j]\m[af_d]n]jY_]ak_gaf_lgZ]l`]eYbgj\jan]j
^gjE9afl`]f]Yj^mlmj]&9faf[j]Ykaf_fmeZ]jg^
[gehYfa]kYj]dggcaf_lg]pal^jgel`]hgo]jZmkaf]kk
in order to improve their balance sheets that were
\]Zl%af^]kl]\Y^l]jl`]j][]fl][gfgea[kdgo\gofaf
Af\aY&@]f[]$o]Yj]dac]dqlgk]]egj]\]Ydkafngdnaf_
\an]klaf_g^^g^Ykk]lk$\anakagfkgjkmZka\aYja]kZqdYj_]
power houses.
International players are increasingly showing interest
afl`]k][lgjYf\l`]lj]f\akdac]dqlg[gflafm]af
l`]f]Yj^mlmj]&>gj]a_fhdYq]jkYj][gfka\]jaf_
afn]kle]flkegkldqafgh]jYlagfYdgjmf\]j%
[gfkljm[lagfhjgb][lk$Ykl`]q\gfgloak`lg]flYf_d]
l`]ek]dn]kafl`]]Yjdqh`Yk]kg^dYf\Y[imakalagfYf\
Exhibit 16. M&A deals in the power and utilities sector

26
28
29
FY12
FY13
FY14
<ge]kla[
12
16
18
Inbound
11
11
)(
26
28
29
68
162
432
Inbound
268
,1(
871
Outbound
)-(
%
%
Total
486
652
1,303
Number of deals
Outbound
Total
486
652
FY12
FY13
1,303
FY14
Number of deals

<ge]kla[
30
k]]caf_YhhjgnYdk&@go]n]j$l`]k][lgjg^^]jkka_fa[Yfl
growth potential and an entry now will provide global
hdYq]jkYkljgf_^gglaf_afl`]eYjc]l$Z]^gj]l`]][gfgeq
lmjfkYf\l`]k][lgjkh][a[akkm]kYj]kgdn]\&9[[gj\af_
lg]klaeYl]k$Af\aYf]]\kYhhjgpaeYl]dqMK*)(Zaddagf
ogjl`gâfn]kle]flafl`]k][lgjlgaf[j]Yk]alkhgo]j%
_]f]jYlagf[YhY[alqZq,,Zq*()/&Làkhjgna\]kY
[gfka\]jYZd]_jgol`hgl]flaYdafY[gmfljq$o`]j]f]Yjdq
*-g^l`]hghmdYlagfkladddY[cY[[]kklg]d][lja[alq
Y[[gj\af_lgOgjd\:Yfc!&
L`]?gA`YkYdkgmf\]jlYc]fe]Ykmj]klgaehjgn][gYd
kmhhdqlg^]]\[gYd%ZYk]\hgo]jhdYflk$oà[`[mjj]fldq
Y[[gmfl^gjegj]l`Yf`Yd^g^l`][gmfljqklglYdhgo]j
_]f]jYlagf[YhY[alq&Al`Ykkg^YjYhhjgn]\egj]l`Yf)-(
^m]dkmhhdqY_j]]e]flko`]j]afklYl]%gof]\;gYdAf\aY
Daeal]\oaddkmhhdq[gYdlg[geeakkagf]\hgo]jhdYflkgj
l`gk]lgZ][geeakkagf]\\mjaf_9hjad*((1Yf\EYj[`
*()-$afngdnaf_Y[YhY[alqgêgj]l`Yf/($(((EO&L`]
?gAYdkg\][a\]\lgafalaYl]hmZda[hjanYl]hYjlf]jkàhlg
increase coal production in the country. It also allocated
)/[gYdZdg[cklgnYjagmkklYl]%gof]\[gehYfa]k$gml
gôà[`),Yj]e]YfllgZ]mk]\^gjhgo]jhjg\m[lagf&
9\\alagfYddq$alYddgo]\[]jlYafhgo]j[gehYfa]klghYjlaYddq
hYkkgfl`]jakaf_[gklgâehgjl]\[gYdgflg[gfkme]jk$
Yegn]l`Yloadd]f[gmjY_]hdYq]jklgaehgjl[gYd$_an]f
l`]k`gjlY_]g^\ge]kla[kmhhdq&=n]fl`]j][]fldq^gje]\
_gn]jfe]fl`Ykl`]hgo]jk][lgjimal]à_`gfalkY_]f\Y$
oal`l`]YeZalagfg^hjgna\af_*,p/]d][lja[alqlg]n]jq
[alar]f&9ddl`]k]Y[lagfkaf\a[Yl]l`]?gAk]eh`Ykakgf
aehjgnaf_l`]hgo]jkalmYlagfafl`][gmfljq$oà[`[YfY[l
YkYeYbgj]fYZd]jlgYlljY[lafl]j]kl^jge_dgZYdhdYq]jk&
J]f]oYZd]]f]j_qakYk]_e]floà[àkdac]dqlg]naf[]
eYpaemeafl]j]kloalòaf\Yf\`q\jgg^^]jaf_kljgf_
hgl]flaYd&L`]?gAkklYf[]gf]f[gmjY_af__jgolàfl`]
k]_e]flak]na\]fl^jgel`]YeZalagmklYj_]lal`Ykk]lmh
^gj[YhY[alq]phYfkagf&AllYj_]lklg\]hdgqkgdYjhgo]jlg
]d][lja^qf]Yjdq,((eaddagfh]ghd]j]ka\af_afjmjYdAf\aY
Yf\]phYf\l`]mk]g^j]f]oYZd]]f]j_qafgl`]jhYjlkg^
l`][gmfljq&<m]lgl`]k]^Y[lgjk$o]]ph][llàkk]_e]fl
lgk]]`]a_`l]f]\Y[lagfgfl`]E9^jgflaf>Q)-&
Transactions 2014
31
K][lgj^g[mk
Retail and
consumer
products
32
Oàd]l`]\]YdY[lanalqakeml]\$alakfglYj]][lagfg^l`]
afl]j]klafl`]k][lgj&:gl`^gj]a_fYf\\ge]kla[eYbgjk
[gflafm]lgk[gml^gjhgl]flaYdY[imakalagfghhgjlmfala]kYk
l`]_jgolàfl`]k][lgj[gflafm]klgZ]YlljY[lan]&?an]f
l`]fYlmj]g^l`]k][lgj$l`]imYdalqlYj_]lkYj]\a^[mdllg
a\]fla^qYf\alak]imYddq\a^[mdllgf\oaddaf_k]dd]jk&
Nitin Gupta,
Partner-Retail and Consumer Products, Transaction Advisory Services
:a_%la[c]lafZgmf\
transactions
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\][daf]afE9Y[lanalq$oàd]\]YdnYdm][gflafm]\lgjak]&Af
>Q),$l`]j]o]j]..\]Ydkoal`YfY__j]_Yl]\ak[dgk]\nYdm]
g^MK+&1Zaddagf$Yk[gehYj]\lg>Q)+$oà[`j]hgjl]\)(0
\]Ydkoal`YfY__j]_Yl]\ak[dgk]\nYdm]g^MK*&/Zaddagf&
FglYZdq$làkakl`]k][gf\[gfk][mlan]af[j]Yk]af\]YdnYdm]
oalf]kk]\afl`]k][lgj$j]hj]k]flaf_YfYn]jY_]YffmYd
_jgol`g^.0^jge>Q)* MK)&,Zaddagf!&Gn]jYdd$l`]^gg\
Yf\Z]n]jY_]k]_e]fl[gflafm]\lgYlljY[leYpaemeafl]j]kl
+,\]Ydk!$^gddgo]\Zqh]jkgfYdYf\`ge][Yj] )(\]Ydk!&
KaeadYjlgl`]lj]f\k]]fafhj]nagmkq]Yjk$\ge]kla[\]Ydk
[gflafm]\lg\jan]Y[lagfafl]jekg^ngdme]$Y[[gmflaf_
^gjf]Yjdq.-g^l`]lglYdY[lanalqafl`]k][lgj&>gg\Yf\
Z]n]jY_]oYkl`]hjgeaf]flk]_e]fl&Egkl\ge]kla[\]Ydk\a\
fgl\ak[dgk]YfqnYdm]Yf\l`]dYj_]kl\]Ydafngdn]\LYlY?dgZYd
:]n]jY_]kDl\&Y[imajaf_l`]j]eYafaf_klYc]afEgmfl=n]j]kl
Eaf]jYdOYl]jDl\&eYcaf_alalko`gddqgof]\kmZka\aYjqafY
\]Ydogjl`MK+)eaddagf&AfZgmf\\]Ydk[gflafm]\lgkàf]$
kaf_d]%`Yf\]\dq[gfljaZmlaf_f]YjdqYddg^l`]k][lgjk\]Yd
nYdm] 10g^nYdm]af>Q),!&9degklYddafZgmf\\]Ydkafngdn]\
hdYq]jk^jge\]n]dgh]\][gfgea]kgfl`]Zmq]jka\]Ykkdgo]j
_jgolàfl`]ajdg[YdeYjc]lkhjgehl]\l`]k]hdYq]jklgk[gml
^gjghhgjlmfala]kafgl`]jeYjc]lk&GmlZgmf\\]Ydkj]eYaf]\
kmZ\m]\oalÀf\aYf>E;?[gehYfa]kYdegklmf]fl`mkaYkla[
afeYcaf_Y[imakalagfkgn]jk]Yk&Gfdqkap\]Ydko]j]j][gj\]\
\mjaf_l`]q]Yj$d]kkl`Yf`Yd^gô`YloYkj][gj\]\afl`]
previous year.
Although the sectors deal value registered a rise over the
hj]nagmkq]Yj$f]YjdqYddg^l`]nYdm]oYkj][gj\]\^jge
Ykaf_d]ljYfkY[lagf:jalak`>E;?eYbgjMfad]n]jHD;k
Y[imakalagfg^Y\\alagfYdklYc]afalkgofmfalYf\Af\aYkdYj_]kl
>E;?[gehYfq$@af\mklYfMfad]n]jDaeal]\ @MD!^gjMK+&.
billion. This transaction happens to be the largest acquisition

afl`]Af\aYfE9eYjc]laf>Q),Yf\Ydkgl`]làj\%dYj_]kl
afZgmf\Y[imakalagfj][gj\]\afl`][gmfljqkaf[]>Q(1&9k
e]flagf]\]Yjda]j$Af\aYkkljgf_\]eg_jYhà[^]Ylmj]k$jakaf_
disposable income and rapid urbanization continues to attract
^gj]a_f[gehYfa]k&=e]j_af_eYjc]lk`Yn]YdoYqkZ]]fY
[gj]hYjlg^Mfad]n]jkdgf_%l]jekljYl]_q$oal`l`]k]eYjc]lk
Y[[gmflaf_^gjf]Yjdq-/g^l`][gehYfqk_dgZYdj]n]fm]k
\mjaf_*()+&EYjc]lkkm[`YkAf\aY$:jYrad$Af\gf]kaYYf\
Kgml`9^ja[YY[lYkYkà]d\gfl`][gehYfqk_jgolàf[Yk]
Yfqkdgof]kkak^Y[]\af\]n]dgh]\][gfgea]k&<]khal]kdgo]j
_jgolàf]e]j_af_eYjc]lk\mjaf_*()+\m]lgl`]aehY[lg^
I=lYh]jaf_afl`]MK$Mfad]n]jakk`Yjh]faf_alk^g[mk^mjl`]j
gfl`]k]eYjc]lkYf\Yaeklgaf[j]Yk]l`]aj[gfljaZmlagflg
/-Zq*(*(&L`][gehYfqk;=GoYkj][]fldqimgl]\afYf
afl]jna]okYqaf_l`Yl_jgolàfl`]k]eYjc]lkkladdj]eYafk
o]ddYZgn]l`Ylakk]]faf\]n]dgh]\eYjc]lk&Alakl`]j]^gj]
Y[[]d]jYlaf_afn]kle]flkafl`]k]eYjc]lkYf\l`]j]akfg
change in our strategy.
K]n]jYd[gjhgjYl]j]kljm[lmjaf_]p]j[ak]ko]j]mf\]jlYc]faf
l`]k][lgj$o`]j] )!hdYq]jk\an]kl]\kge]g^l`]aj\anakagfk'
Zmkaf]kk]k ]&_&Mk`YK`jajYe=fl]jhjak]kk]ddaf_g^âlkda_`laf_
Zmkaf]kklgKm\àj?]fk]lk^gjMK0eaddagfYf\@af\mklYf
Mfad]n]jDl\&\akhgkaf_alkeYjaf]]phgjlZmkaf]kklg?Y\j]
EYjaf]=phgjl!3 *![gehYfa]kmf\]jo]fle]j_]jk ]&_&$
:YdjYehmj;àfaEaddkDl\&e]j_]\oal`C`YdadYZY\Km_YjEaddk
Dl\&Yf\Kl]jdaf_Khaff]jkDl\&hdYff]\lge]j_]oal`KYngjal
>gg\Af\mklja]kDl\&!3 +!^gj]a_f]flala]k[gfkgda\Yl]\l`]aj
`gd\af_kafl`]ajmfalk ]&_&$l`]Mfad]n]jHD;@MD\]Yd$OYd%
EYjlEYmjalamk@gd\af_kY[imaj]\l`]j]eYafaf_-(klYc]af
l`]BN:`YjlaOYdeYjlHnl&Dl\&$Yf\CgcmqgKL;g&Dl\&g^
BYhYfY[imajaf_YfY\\alagfYd+)klYc]afAf\aY%ZYk]\Cgcmqg
;YedafDl\&!$Yf\ ,!dg[Yd[gehYfa]kZgm_`lgmlj]eYafaf_
klYc]kafmfalk ]&_&@MDY[imaj]\l`]j]eYafaf_/,afl]j]kl
af9imY_]d;`]ea[YdkHnl&Dl\&Yf\LYlY?dgZYd:]n]jY_]k
Dl\&Zgm_`lgmll`]j]eYafaf_,1&1klYc]afEgmfl=n]j]kl
Eaf]jYdOYl]jDl\&^gjMK+)&+eaddagf!&
Transactions 2014
33
Exhibit 17. M&A deals in the RCP sector
Outlook
L`]?gAk\][akagflggh]fmh-)><Aafemdla%ZjYf\
j]lYad`YkhYn]\l`]oYq^gjkljgf_\]Yd%eYcaf_af
l`][Yk`Yf\]ph]jlak]kljYhh]\Af\aYfj]lYadk][lgj$
oà[àkkladdj]]daf_mf\]jl`]aehY[lg^l`]_dgZYd
][gfgea[kdgo\gof&>E;?hdYq]jkYj]dac]dqlg
YlljY[l[gfka\]jYZd]afZgmf\afl]j]kl^jge\]n]dgh]\
eYjc]lk$kaf[]Af\aY[gflafm]klgZ]YfYlljY[lan]
\]klafYlagf^gjeYbgjhdYq]jkdggcaf_^gj_jgol`
gmlka\]l`]aj`ge]eYjc]lk&:jalak`j]lYad_aYfl$L]k[g
HD;$`Ykj][]fldqZ]]f_an]f[d]YjYf[]Zql`]>gj]a_f
Afn]kle]flHjgeglagf:gYj\lgk]lmhY-(2-(BNYl
Yfafn]kle]flgÂFJ.&0Zaddagf$l`]j]ZqZ][geaf_
l`]jklEF;lg]fl]jl`]emdla%ZjYf\j]lYadeYjc]l
afAf\aY&@go]n]j$l`]^Yl]g^làk><Ahgda[qakkladd
^Yj^jge[]jlYaf$Ykalakq]llgZ]k]]f$o`YlklYf\k
l`]f]odq^gje]\_gn]jfe]floaddlYc]gfl`]kYe]&
<]khal]l`Yl$YklYZd]_gn]jfe]fljmffaf_l`]k`go
oadd_an]YeYbgjZggkllgk]flae]flkgâfl]jfYlagfYd
Yf\\ge]kla[hdYq]jklgmf\]jlYc]afn]kle]flk$_an]f
l`]mf\akhml]\dgf_%l]je_jgol`klgjqoalàfl`]
[gmfljq&Oal`Z]ll]j_gn]jfYf[]Yll`]`]de$^Y[lgjk
km[`Ykà_`]j[gfkme]jYf\Zmkaf]kk[gf\]f[]$
aehjgn]\af^jYkljm[lmj]$Yf\[gfljgdd]\afYlagfYf\
afl]j]kl[gklkYj]dac]dqlgZ]f]lj]lYadYf\[gfkme]j
Zmkaf]kk]k$l`]j]Zqhjgehlaf_\]YdY[lanalqafl`]
country.
<ge]kla[Y[lanalqak]ph][l]\lgZ]mf\]jhaff]\
Zql`][gfkgda\Ylagfg^[gehYfa]kafl`]j]lYad$
>E;?Yf\]%[gee]j[]k]_e]flk&>mlmj]?jgmhk
j][]flYffgmf[]e]fllgY[imaj]kgml`%Af\aYZYk]\
kmh]jeYjc]lj]lYad[`Yaf$Fad_ajak$akbmklgf]g^l`]
eYfq\]Ydkl`]Af\aYfj]lYadeYjc]lakdac]dqlgk]]af
l`][geaf_q]Yj&Gj_YfarYlagfkYj]dggcaf_lgZggkl
l`]aj]paklaf_Zmkaf]kkhgjl^gdagk$Y[à]n]][gfgea]kg^
k[Yd]$^g[mkgfZY[coYj\afl]_jYlagflgaehjgn]hjgl
eYj_afk$Yf\]f`Yf[]l`]ajkmhhdq[`YafeYfY_]e]fl
hjg[]kk&Kge]Af\aYf[gehYfa]kYj]dac]dqlg[gflafm]
lgmf\]jlYc][gjhgjYl]j]kljm[lmjaf_Y[lanala]kafgj\]j
lgeYc]l`]ek]dn]kYlljY[lan]lg^gj]a_fafn]klgjk&
While outbound deal activity was almost dormant
af>Q),$l`][geaf_q]Yjakdac]dqlgk]]hdYq]jk
oal`kljgf_ZYdYf[]k`]]lkc]]hmhl`]ajk]Yj[`^gj
Y[imakalagflYj_]lkYZjgY\&9`gklg^[gehYfa]kYj]
]phdgjaf_l`]Zmkaf]kkhgl]flaYdg^gn]jk]YkeYjc]lk
^gj]phYfkagf$oalèYjc]lkkm[`Yk9^ja[Y$Kgml`%=Ykl
9kaYYf\DYlaf9e]ja[Y^]Ylmjaf_à_`gfl`]daklg^
^Yngj]\lYj_]l\]klafYlagfk&
34
108
84
66
1,382
2,671
3,879
FY12
FY13
FY14
Number of deals
FY12
FY13
FY14
<ge]kla[
45
71
43
Inbound
24
22
17
Outbound
15
15
Total
84
108
66
<ge]kla[
371
,1(
77
Inbound
751
*$((*
+$/1/
Outbound
*.(
179
1,382
2,671
3,879
Number of deals
Total
K][lgj^g[mk
Technology
Transactions 2014
35
L][`klYjl%mhkkl]Ydl`]
show
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\][daf]af>Q),&L`]q]Yjj][gj\]\YlglYdg^/*\]Ydkoal`Yf
Y__j]_Yl]\ak[dgk]\\]YdnYdm]g^MK.0-eaddagf$[gehYj]\
lg0/\]Ydkoal`Y[gdd][lan]\]YdnYdm]g^MK)&.Zaddagf
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k][lgjkladd[gflafm]klgd]Y\l`]hY[c$j][gj\af_l`]à_`]kl
fmeZ]jg^\]Ydkaf>Q),&;jgkk%Zgj\]jljYfkY[lagfkj]hgjl]\
eYpaemeY[lanalq$oà[`Y[[gmfl]\^gj.1g^l`]k][lgjk
lglYd\]YdkYf\[gfljaZml]\f]YjdqYddg^l`]\]YdnYdm]&
Af\aYkl][`fgdg_qklYjl%mh][gkqkl]eakfYddqlYcaf_g^^$
oà[``Ykmfladfgo^gmf\al\a^[mdllg_jYZl`]Yll]flagfg^
global technology companies. India has always possessed the
required talent and appeal that has nurtured the development
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`Yn]]f`Yf[]\l`]ajkcaddkafZmad\af_affgnYlan]hjg\m[lk$
oà[àk\jYoaf_l`]Yll]flagfg^_dgZYdgj_YfarYlagfkl`Yl
Yj][gflafmYddqk]Yj[àf_^gjkcadd]\ogjc^gj[]Yf\^j]k`
a\]Yk&?dgZYdhdYq]jkYj]af[j]Ykaf_dq_]Yjaf_mhlgZmqgml
f]o[gehYfa]k$]kh][aYddqafl`]Yj]Ykg^\YlYk][mjalq$
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HjgZYZdq$l`]egklj]fgof]\Y[imakalagfg^làkfYlmj]af
>Q),ak>Y[]ZggckZmqgmlg^:Yf_Ydgj]%ZYk]\kg^loYj]
\]n]dgh]jDalld]=q]DYZkafBYfmYjq*(),&Làkakl`]jkl
Y[imakalagfZql`]kg[aYde]\aY_aYflafAf\aYYf\akdac]dqlg
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eYjc]l&BmklY^]o\YqkdYl]j$?gg_d]^gddgo]\af>Y[]Zggck
^gglkl]hkZqY[imajaf_Aeh]jeame$Yl`j]]%q]Yjgd\o]Z
k][mjalq[gehYfq$Yegn]l`Ylakafl]f\]\lg_an]YeYbgj
Zggkllgl`]l][`_aYflkYdj]Y\q%kgda\k][mjalqaf_`laf_
khYe$^jYm\$Yf\YZmk]&=Yjda]jafFgn]eZ]j*()+$GjY[d]`Y\
YdkgY[imaj]\:]f_Ydmjm%ZYk]\:alr]jEgZad]$YklYjl%mhegZad]
security company. With more and more disruptive technology
[gehYfa]k]e]j_af_afl`][gmfljq$km[È9ljYfkY[lagfk
Yj]dac]dqlg_Yafege]flmeaf^mlmj]&
Gf]g^l`]k]_e]flkmf\]jl`]khglda_`loYkZmkaf]kk
aehjgn]e]flkgdmlagfkoà[`^g[mk]\gf=JHYf\;JE&
Several transactions were recorded where the target entity
hjgna\]\kgdmlagfkl`Yl`]dhaehjgn]eYfY_]e]flg^
\a^^]j]flYkh][lkg^Zmkaf]kk$oà[``Yk_jYZZ]\`]a_`l]f]\
36
Yll]flagfg^gj_YfarYlagfkZ][Ymk]g^Y[`Ydd]f_af_Zmkaf]kk
]fnajgfe]fl&Gn]jl`]dYkl^]oq]Yjk$d]Y\af_Af\aYfALhdYq]jk
have been moving up the value chain by strengthening their
[gfkmdlaf_hjY[la[]k&Làk`Ykhjgna\]\logeYbgjZ]f]lk
aehjgn]e]flaf[da]flj]dYlagfkàhkYf\[gfn]jkagfg^
[gfkmdlaf_Ykka_fe]flkaflgALgj\]jk&Q9K@L][`fgdg_a]k$
Yl][`fgdg_qYf\gmlkgmj[af_k]jna[]khjgna\]j$Y[imaj]\
Kh][ljYKg^lL][`fgdg_a]k$YZmkaf]kkkgdmlagfkkh][aYdakl^gj
process industries and SAP channel partner in India; while
Yfgl`]jALje$9khaj]Kqkl]ek Af\aY!Hnl&Dl\&Zgm_`l
gmlN]jkYflL][`fgdg_a]k$Y@q\]jYZY\%ZYk]\l][`fgdg_q
company that specializes in Oracle Retail and Electronic
<YlYAfl]j[`Yf_]Aehd]e]flYlagf&:gl`l`]k]\]Ydko]j]
intended to strengthen the acquiring companys position in
=JHYhhda[Ylagf&AfYfgl`]jafklYf[]$l`]ALk]jna[]kYjeg^
l`];C:ajdY?jgmh$:ajdYkg^l$j][]fldqY[imaj]\l`]MK%ZYk]\
hjgna\]jg^;JEkgdmlagfk$=fYZd]HYl`$eYjcaf_alk]fljqaflg
l`]MK/-Zaddagf;JEkgdmlagfkeYjc]l&
Analytics was yet again a segment that held enormous
Yhh]Yd$Yk]na\]fl^jgel`]k]n]jYdljYfkY[lagfkalj]hgjl]\&
Af\aYfl][`fgdg_q_aYflOahjgDl\&]fl]j]\aflgYkljYl]_a[
hYjlf]jkàhYf\Zgm_`lgmlYeafgjalqklYc]afGh]jY
Kgdmlagfk$YMK%ZYk]\Za_\YlYk[a]f[]Yf\hj]\a[lan]YfYdqla[k
[gehYfq$afY\]Ydogjl`MK+(eaddagf&Dalld]=q]DYZk$oà[`
oYkY[imaj]\Zq>Y[]Zggc$akYdkg]f_Y_]\aflgYfYdqla[kYf\
hjgna\]kl]klaf_Yf\YfYdqkaklggdk^gj9f\jga\\]n]dgh]jk$oal`
YoYqlg`]dhl`]eaehjgn]Yhhda[Ylagfh]j^gjeYf[]&9fgl`]j
\]Ydafngdn]\l`]MK%`]Y\imYjl]j]\;=:$Ye]eZ]j%ZYk]\
Y\nakgjqjeZmqaf_gmlLYd]flF]mjgf$Y[dgm\%ZYk]\lYd]fl
YfYdqla[kje^jge:]f_Ydmjm&Oal`Zmkaf]kk]kfgogofaf_
[gfka\]jYZd]\YlYgoaf_af^jgeljY\alagfYdkgmj[]kYko]ddYk
f]oYn]fm]kkm[`Ykkg[aYde]\aY$]pl]jfYd\YlY$Yf\eY[àf]%
lg%eY[àf][gfn]jkYlagfk$Za_\YlYYfYdqla[k[Yf`]dhZmkaf]kk
kqfl`]kar]$[gjj]dYl]Yf\hjg[]kklàk\YlYlg\jan]hj]\a[lan]
YfYdqkak&9[[gj\af_lgF9KK;GE$Af\aYkZa_\YlYeYjc]l
ak]ph][l]\lgZ]ogjl`MK)ZaddagfZq*()-$j]][laf_
Y;9?J_jgol`gêgj]l`Yf0(kaf[]*()*&Egj]gn]j$
we are already seeing the ball rolling with more and more
^gj]a_fEF;k]q]af_làkeYjc]l&L`]ogjd\kdYj_]kl[àhk]l
eYfm^Y[lmj]j$Afl]d$`Ykj][]fldqYffgmf[]\alkhdYfklglYh
làkeYjc]loalàlkf]oj]Yd%lae]\YlYYfYdqla[khjg[]kkgjlg
\jan]_jgol`^jgel`][gmfljqkZa_\YlYeYjc]l&
Outlook
L`]AL%:HGk]_e]fl[gflafm]klgl`jan]YkYc]q
[gfljaZmlgjlgl`]gn]jYddl][`fgdg_qk][lgj$oalègj]Yf\
egj][ala]k]e]j_af_Yk^Yngj]\gmlkgmj[af_`mZkY[jgkk
the country. According to a recent survey1ZqL`gdgfk$
Y[gfkmdlaf_je:]f_Ydmjm[gflafm]klgZ]l`]egkl
YlljY[lan]AL'AL=Kgmlkgmj[af_\]klafYlagfafl`]ogjd\$
oal`kapgl`]j[ala]k^]Ylmjaf_Yegf_l`]lgh)(k]]fYk
egklYlljY[lan]^gjlàk\geYaf&L`]j]ak]ph][l]\lgZ]Y
ka_fa[Yflbmehaf\]YdY[lanalq$\jan]fhjaeYjadqZqfgf%
nga[]:HGljYfkY[lagfk&9kAf\aYfAL%:HGhdYq]jkegn]mh
l`]nYdm][`Yaf$Y[imakalagfkaf\geYaf%kh][a[k]_e]flk$
Yko]ddYk=JH%ZYk]\[gfkmdlaf_ak]ph][l]\lgaf[j]Yk]
ka_fa[Yfldq&L`]k]hdYq]jkoadddggcYl\janaf_kqf]j_a]k
Yf\affgnYlagfZq]phYf\af_l`]aj_dgZYdhj]k]f[]]n]f
while strengthening their onshore presence to deliver
better service to their clientele.
Kge]g^l`][gmfljqkeYbgj[Yk`%ja[ÀL[gehYfa]koadd
Ydkg_gaf^gjdYj_]jY[imakalagfklàkq]Yj$Yk[gehYj]\
lgkeYdd]jlm[c%af\]Ydkl`]q`Yn]Z]]f\gaf_afl`]hYkl&
L`]k]hdYq]jkeYqf]]\lglYhl`]E9jgml]lgY[à]n]
j]n]fm]_jgol`$kaf[]gj_Yfa[_jgolèYqkdgo\gof\m]
lgà_`]jZYk]$Yfaf[j]Yk]af\]eYf\^gjf]ol][`fgdg_a]k
Yf\l`]f]]\lg]phYf\aflgf]oeYjc]lk&9kg^<][]eZ]j
*()+$Af\aYklghl`j]]ALk]jna[]kjekL;K$Af^gkqk
Yf\Oahjg`Y\daima\Ykk]lk [Yk`Yf\[Yk`]imanYd]flk!
g^[dgk]lgMK.Zaddagf&O]eYq]ph][lkm[`hdYq]jk$o`g
`Yn]Z]]fkallaf_gf[gfka\]jYZd][Yk`had]k$lgaehjgn]
l`]aj[YhalYdYddg[Ylagfl`jgm_È9&
L`]f]odq^gje]\_gn]jfe]flak]ph][l]\lghmlYeYbgj
]eh`Ykakgfl][`fgdg_qYf\eYfm^Y[lmjaf_$oà[òadd
^mjl`]j\jan]\]YdeYcaf_afl`]k][lgj&L`]FYlagfYd
9kkg[aYlagf^gjKg^loYj]Yf\K]jna[]k;gehYfa]k
F9KK;GE!akj]hgjl]\hj]hYjaf_Y\g[me]fllgZ]
hj]k]fl]\Z]^gj]l`]f]o_gn]jfe]fl&L`]\g[me]fl
[gn]jkakkm]kjYf_af_^jgelYpYlagf$jmd]kh]jlYafaf_
lgl][`fgdg_qklYjl%mhklgaf[]flan]k^gjbgZ[j]Ylagf
afkeYdd]jhYjlkg^l`][gmfljq$oà[`$a^j]kgdn]\$oadd
khmj_jgolàfl`]af\mkljq&9[[gj\af_lgF9KK;GE$
there is a need to renew investments and encourage
affgnYlan]klYjl%mhkYf\]flj]hj]f]mjkàhafl`]k][lgj$
afgj\]jlgklaemdYl]_jgol`Yf\Zjaf_afl`]em[`%
f]]\]\ljYfk^gjeYlagf$Yf\alakghlaeakla[l`Yll`]f]o
_gn]jfe]flogmd\mf\]jlYc]l`]f][]kkYjqkl]hklgeYc]
positive changes in the sector.
Gfl`]gmlZgmf\^jgfl$afY\\alagflgl`]MKYf\l`]
MC$l`]ljY\alagfYddq^Yngj]\\]klafYlagfk$o]Yj]dac]dq
lgk]]kljgf_Y[lanalqaf[gflaf]flYd=mjgh]$gfoà[`
k]n]jYd_dgZYd[gjhgjYlagfk`Yn]fgoklYjl]\^g[mkaf_gf&
;gjhgjYlagfkaf[gmflja]kkm[`Yk>jYf[]$?]jeYfqYf\
Switzerland are moving in to establish outsourcing ties with
Af\aYfALjekafYfYll]ehllgj]\m[]l`]aj[gklk&AfZgmf\
\]YdkYj]Ydkg]ph][l]\lg_jgoYkAf\aY[gflafm]klgg^^]j
dgo[gkl$ogjd\[dYkklYd]fl&9`gklg^^gj]a_fhdYq]jkYj]
^g[mkaf_gfl`]ajAf\aYkljYl]_q$hdYffaf_lgaf[j]Yk]l`]
[gmfljqkk`Yj]afl`]ajgn]jYddj]n]fm]ZYkc]l&
<]Ydkafngdnaf_klYjl%mhk$]kh][aYddqafZa_\YlYYfYdqla[k$
will continue to attract interest in the transaction
dYf\k[Yh]$Zglàfl]jekgÊ9Yko]ddYkH='N;&9k
l`]eYjc]l[gflafm]klg_jgoZqd]YhkYf\Zgmf\k$aloadd
hjgna\]ka_fa[Yflghhgjlmfala]k^gj]paklaf_Yf\mh[geaf_
hdYq]jkYf\oaddhdYqYeYbgjjgd]af`gohdYq]jk\jY^ll`]aj
investment strategies.
) Afl`]kmjn]q$L`gdgfkYjjan]kYll`]jYfcaf_ZYk]\gfkaphYjYe]l]jk2k[Yd]Yf\
imYdalqg^lYd]fl3[gkl3Zmkaf]kk[YlYdqkl ][gfgea[hjgd]g^l`][alq!3af^jYkljm[lmj]3
jakck hgdala[YdYf\kg[aYdjakc$jakcg^fYlmjYd\akYkl]jk]l[!3Yf\imYdalqg^da^]&
Transactions 2014
37
9kl`]?dgZYdALk]jna[]k[gehYfa]k]eZjY[]f]oYj]Yk
km[`YkKE9;kYf\af[j]Yk]^g[mkgffgf%daf]YjhdYl^gje
ZYk]\_jgol`$eYfqklYjl%mhkoalàffgnYlan]l][`fgdg_a]k
oadd[gflafm]lgYlljY[lafn]kle]flafl]j]kl^jgel`]e&
Ashish Basil,
Partner-Technology, Transaction Advisory Services
Exhibit 18. M&A deals in the technology sector

86
FY12
FY13
FY14
<ge]kla[
35
+(
22
Inbound
29
26
27
Outbound
22
31
23
Total
86
87
72
)$(-*
235
12
Inbound
841
133
438
Outbound
352
)$*0(
235
2,245
1,648
685
Number of deals
87
72

2,245
1,648
685
FY12
FY13
FY14
Number of deals
<ge]kla[
Total
38
K][lgj^g[mk
Telecom
Transactions 2014
39
The telecom sector will see some consolidation in the coming

h]jag\&Oal`l`]jakaf_[YhalYdafl]fkalqg^l`]Zmkaf]kk$alak
]ph][l]\l`Ylkge]hdYq]jkeYqdac]lg]al`]jj]klja[ll`]aj
gh]jYlagfklg^]o[aj[d]kgj]phdgj]Yf]pal^jgeZmkaf]kk&
@go]n]j$l`]fYf[aYddaYZadala]kg^hgkkaZd]lYj_]lk$[gmhd]\oal`
l`]hYqe]fllg_gn]jfe]flgfl`]klYjl%mhkh][ljmeY[imaj]\
oal`l`]lYj_]l$oaddZ]Y\Yeh]f]jgfl`]nYdmYlagfk&
Ashish Basil,
Partner-Telecom, Transaction Advisory Services
9jak]afafl]j]kl^jge
^gj]a_fgj_YfarYlagfk
L`]j]oYkYka_fa[YflZggklafE9Y[lanalqafl`]l]d][ge
k][lgjaf>Q),&L`]q]Yjj][gj\]\YlglYdg^))\]Ydkoal`Yf
Y__j]_Yl]\ak[dgk]\\]YdnYdm]g^MK+&)Zaddagf$Yk[gehYj]\
lg>Q)+$oà[`Ydkgj]hgjl]\))\]Ydk$Zmloal`YlglYdnYdm]
g^bmklMK**(eaddagf&LàkljYfkdYl]kaflgYka_fa[Yfl)+
lae]kaf[j]Yk]afnYdm]Yk[gehYj]\lg>Q)+&<]YdY[lanalq
oYkYdegkl]n]fdq\akljaZml]\Z]lo]]f\ge]kla[$afZgmf\Yf\
gmlZgmf\\]Ydk&@go]n]j$aloYkafZgmf\\]Ydkl`Yl\geafYl]\
\]YdnYdm] MK*&)Zaddagf!$Y[[gmflaf_^gj.0g^l`]k][lgjk
total value.
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o`]f:jalak`l]d][ge_aYfl$Ng\Y^gf]?jgmh$Yffgmf[]\alk
hdYff]\Y[imakalagfg^l`]+-&.*klYc]^jgelàj\%hYjlq
k`Yj]`gd\]jkafNg\Y^gf]Af\aYDl\& NAD!^gjY[gfka\]jYlagf
g^MK)&/Zaddagf&>gddgoaf_làkY[imakalagf$NADoaddZ][ge]
Yo`gddqgof]\kmZka\aYjqg^l`]Ng\Y^gf]?jgmh&L`]
\]YdoYkl`]j]kmdlg^dgf_klYf\af_><Aj]^gjekafAf\aYk
][gfgea[àklgjq$o`]j]l`]?gAYddgo]\mhlg)((><Aaf
l`]l]d][gek][lgj&=Yjda]j$^gj]a_fl]d][gegh]jYlgjk[gmd\
`gd\mhlgYeYpaemeg^/,afYfAf\aYf]flalq&Mf\]jl`]
f]ojmd]k$,1><AakYddgo]\mf\]jl`]YmlgeYla[jgml]$oàd]
^gjZmqaf_gjaf[j]Ykaf_klYc]mhlg)(($[gehYfa]koadd
`Yn]lgk]]cYhhjgnYdg^l`]>gj]a_fAfn]kle]flHjgeglagf
:gYj\ >AH:!&9dl`gm_`l`]Ng\Y^gf]\]YdoYkà_àfnYdm]$
aloYkKaf_L]d9mkljYdaY@gd\af_Hl]Dl\&$Ymfalg^Kaf_Yhgj]
L]d][geemfa[YlagfkDl\&$oà[`Z][Ye]l`]jkl^gj]a_f
[gehYfqlg]flaj]dqgofgh]jYlagfkafl`]Af\aYfl]d][ge$
o`]falY[imaj]\l`]j]eYafaf_*.klYc]afKaf_L]d?dgZYd
Af\aY!Hnl&Dl\&9fgl`]j\]YdkYoFgjoYq%ZYk]\L]d]fgj
K9jYakaf_alkklYc]afAf\aYfBNL]d]oaf_k;geemfa[Ylagfk
Hnl&Dl\&lg/,ZqY[imajaf_YfY\\alagfYd*-klYc]^gjY
[gfka\]jYlagfg^MK)/,eaddagf&
40
LàkoYkbmklYhj]na]og^l`]eYfqegj]hgkkaZd]klYc]
af[j]Yk]k'BNZmqgmlkl`Ylo]Yj]dac]dqlgk]]afl`]l]d][ge
k][lgj&K]n]jYdgl`]j^gj]a_fl]d][gegh]jYlgjk`Yn]Y
hj]k]f[]afAf\aYl`jgm_`hYjlf]jkàhk&>gj]pYehd]JmkkaYf
[gf_dge]jYl]Kakl]eY`gd\kYBNoal`K`qYeL]d]dafc K`qYe
Kakl]eY!$EYpak;geemfa[YlagfkgÊYdYqkaY`YkhYjlf]jkàh
oal`Kaf\`qYK][mjala]kAfn]kle]flkHnl&Dl\&g^l`]9hgddg
?jgmh 9aj[]d!$BYhYf%ZYk]\FLL<g[geg`YkYhYjlf]jkàh
oalÀf\aYkLYlY?jgmh LYlYL]d]k]jna[]k!$Yegf_klgl`]jk&
?an]fl`]Yegmflg^[geeale]fl^gj]a_fhdYq]jkYj]
]p]j[akaf_afl`]Af\aYfl]d][geeYjc]l$oà[àkaf\a[Yl]\Zq
l`]emdla%Zaddagf\gddYjafn]kle]flkgh]jYlgjk`Yn]hd]\_]\lg
eYc]afl`]j][]flkh][ljmeYm[lagf$o]Yj]dac]dqlgk]]egj]
hdYq]jkjYakaf_l`]ajklYc]afAf\aYfmfalkkggf]jl`YfdYl]j&
Another trend that seems imminent is the consolidation in the
l]d][gek][lgj&;mjj]fldq$l`]k][lgjakgn]j[jgo\]\oalègj]
l`Yf)(hdYq]jk$oal`l`]lgh%l`j]]gh]jYlgjk[geeYf\af_Y
\geafYflk`Yj]afl]jekg^kmZk[jaZ]jZYk]Yko]ddYkeYjc]l
j]n]fm]&Afgj\]jlg[gflafm]gh]jYlagfkYf\_jgo$hdYq]jk
f]]\lgZmqkh][ljmeYf\l`]à_`hja[]khYa\^gjYajoYn]k
Yj]mkmYddqfYf[]\l`jgm_`\]Zl$oà[`^mjl`]jZmj\]fkl`]
companys balance sheet that is already mounted with a high
\]ZllYc]f^gjfYf[af_l`]hYkl[YhalYd]ph]f\almj]&Kge]g^
l`]gh]jYlgjk$o`gYj]`]YnadqZmj\]f]\Yf\mfYZd]lgeYc]
^mjl`]jafn]kle]fl$ea_`l`Yn]fg[`ga[]Zmllg]phdgj]Yf
ghlagfg^Z]af_Y[imaj]\ZqdYj_]j[gehYfa]klgaehjgn]l`]aj
fYf[aYdhgkalagf&L`]?gAYdkgkge]o`Ylka_fYdd]\alkafl]fl
lgca[cg^^[gfkgda\Ylagfafl`]^jY_e]fl]\k][lgj$oal`l`]
=ehgo]j]\?jgmhgÊafakl]jk =?gE![d]Yjaf_l`]E9hgda[q
^gjl]d][gegh]jYlgjk&Mf\]jl`]f]ofgjek$l`]=?gEjYak]\
l`]eYpaemedaealgfl`]eYjc]lk`Yj]g^Ye]j_]\]flalqlg
-(^jge+- gâlkj]n]fm]gjkmZk[jaZ]jZYk]!$YhjghgkYd
l`Ylak]ph][l]\lgZ]f]ldYj_]j[gehYfa]k$o`g[Yffgo
`Yn]YZa__]jk`Yj]g^l`]ha]&:a_hdYq]jkafl`]k][lgj[YfZ]
in the race to buy small operators.
Outlook
L`]Af\aYfl]d][gek][lgjakklYf\af_gfl`]]\_]g^
YljYfkalagfh`Yk]&L`]jak]g^[gfkgda\Ylagf$\YlY%
^g[mk]\kh][ljmeY[imakalagfYf\aehjgn]\lYja^^kYj]
Yddaf\a[Ylaf_l`YlY[gehd]l]gn]j`Ymdg^Zmkaf]kkak
_gaf_lglYc]hdY[]&L`]j][]fldq[gf[dm\]\YajoYn]k
Ym[lagfkhgafllgoYj\Y_jgoaf_^g[mkgf\YlY&F]Yjdq
0(g^l`]YajoYn]kafl`])$0((E@rZYf\o]j]
Ym[lagf]\$oà[è]Yfkl`Ylgh]jYlgjkhdYflgmk]làk
ZYf\^gjà_`%kh]]\,?k]jna[]k$afdaf]oal`_dgZYddq
hj]^]jj]\DL=ZYf\&Egj]gn]j$oal`l`]k]Ym[lagfk
leaving a considerable dent on operators balance
k`]]lk$o][Yf]ph][lhdYq]jklghYkkgflàkaf[j]Yk]\
burden onto consumers.
L`]k][lgjak^Y[af_Yfaeeaf]fl[gfkgda\Ylagf$oà[`
oaddZ]l`]c]q\jan]jZ]àf\l`]k][lgjkE9Y[lanalq
in FY15. Several telecom operators in the country are
incurring losses and may not have too many options
Zmllgk]ddgmlgjh]jak`[gehd]l]dq^jgel`]eYjc]l&
L`]j][]fldqYffgmf[]\E9hgda[q$lg_]l`]joal`
l`]_ma\]daf]k]ph][l]\Yjgmf\kh][ljmek`Yjaf_Yf\
ljY\af_$Yj]]ph][l]\lgYa\af]fYZdaf_Y[imakalagfk
in the sector. Rating agency Fitch reported that the
k][lgjakdac]dqlg`Yn]gfdqkaplgk]n]fgh]jYlgjkd]^l
Y^l]jYkh]ddg^[gfkgda\Ylagf&9[[gj\af_lgNg\Y^gf]
Af\aYkE<Yf\;=G$EYjl]fHa]l]jk$l`]YajoYn]k
Ym[lagfaf>]ZjmYjq*(),`Y\j]Yddqk]ll`]ZgqkYhYjl
^jgel`]e]fkaf[]gfdqY`Yf\^mdg^Za_gh]jYlgjkZa\
^gjegklg^l`]ZYf\oa\l`$oàd]kge]g^l`]o]Yc]j
hdYq]jko]j]ka\]daf]\&Làklj]f\akZmlYhj]na]og^
o`Ylak]ph][l]\afl`]f]pljgmf\g^Ym[lagfkYf\
clearly shows that it is the bigger players that will
af[j]Ykaf_dqlYc]YZa__]jZal]g^l`]ha]$oàd]l`]
keYdd]jhdYq]jkoaddZ][gfkme]\kdgodq&@]f[]$gf]
g^l`]c]qlj]f\kl`Ylo]Yj]dac]dqlgk]]gn]jl`]
f]plq]Yjakl`]gh]jYlgjklYcaf_l`]E9jgml]lg
acquire spectrum. With spectrum holding in India being
à_`dq^jY_e]fl]\\m]lghj]k]f[]g^dYj_]fmeZ]jg^
hdYq]jk$gh]jYlgjkoadddggclgY[imaj]gl`]jhdYq]jklg
[gehd]e]fll`]ajgofkh][ljme`gd\af_k$Yf\]f`Yf[]
l`]k]jna[]kl`]q[Yfg^^]j&
Exhibit 19. M&A deals in the telecom sector

13
FY12
FY13
FY14
)(
Inbound
Outbound
13
11
11
)$,*0
214
915
%
*$)*1
27
0(
1,455
220
3,124
Number of deals
11
11
<ge]kla[
Total
1,455
220
FY12
FY13
3,124
FY14
Number of deals

<ge]kla[
Inbound
Outbound
Total
Transactions 2014
41
Conclusion
L`]Af\aYfE9dYf\k[Yh]oYkYll`][jgkkjgY\kaf>Q),$
o`]j]ngdme]k\][daf]\$ZmloYkegj]l`Yf[geh]fkYl]\
Zqaf[j]Yk]\\]YdnYdm]&<mjaf_l`]dYklloglgl`j]]q]Yjk$
o]`Yn]k]]f[gjhgjYl]ZgYj\keYcaf_[Yd[mdYl]\egn]k
Yf\af\md_af_afE9gfdqo`]fl`]qk]]j]YdkljYl]_a[
nYdm]afl`]\]Yd$jYl`]jl`Yfbmkl`ghhaf_gflgl`]E9
ZYf\oY_gf&Kljgf_[Yk`ZYdYf[]k$Zggeaf_]imalqeYjc]lk
and narrowing valuations have traditionally been considered
Ykc]qaf_j]\a]flk^gjYfE9j][ah]&@go]n]j$eYfY_]e]fl
l]YekfgodggclgY[à]n]nYdm]$oal`Yj]f]o]\^g[mkgf
cost management and returning rewards to increasingly
Y[lan]k`Yj]`gd\]jk&9^l]jYhjgdgf_]\fYf[aYd[jakakYf\l`]
[`Ydd]f_]kl`Yl[gf^jgfl]\l`]E9eYjc]l$[gehYfa]kYf\
boards are now choosing quality over quantity.
?dgZYddq$[gf\]f[]afE9Y[lanalqakjakaf_$oà[àk
j]][l]\afYfaf[j]Yk]afl`]e]_YZdg[cZmkl]j\]Ydkkaf[]
l`]Z]_affaf_g^*(),&;gflafmgmkdqaehjgnaf_klYZadalqaf
l`]=mjgh]Yf][gfgeq$l`]kl]Y\q_jgolàfl`]MKYf\
9Z]fgea[kqa]d\af_kge]hgkalan]j]kmdlafBYhYf$Yj]Ydd
Ykh][lkl`YlYj][gfljaZmlaf_lgmhda^ll`]k]flae]flg^_dgZYd
[gjhgjYlagfk$hjgehlaf_l`]elgj]nakall`]ajafgj_Yfa[
_jgol`kljYl]_a]k$oà[``Y\Z]]fk`]dn]\gn]jl`]hYkl^]o
42
q]Yjk&=Yjda]j$_dgZYd[gjhgjYlagfk`Y\l`]YZadalqlgeYc]
Y[imakalagfk$Zmldalld]afl]fl&@go]n]j$Yko]eYc]gmjoYq
l`jgm_`l`]ljYfkalagfh]jag\g^j]kmj_af_][gfgeq$Zgl`
_dgZYdYf\\ge]kla[$o]k]]gj_YfarYlagfklYcaf_YZgd\]j
klYf[]lgoYj\\]Yd%eYcaf_&@]f[]$gn]jl`]f]pl)*egfl`k$
jakaf_\]YdnYdm]akdac]dqlg[gflafm]eYcaf_`]Y\daf]k$oal`
\]Ydngdme]k]ph][l]\lgaf[j]Yk]gfdqeYj_afYddq&
Af\aYk_jgol`klgjqakkladdaflY[l&L`]Afl]jfYlagfYdEgf]lYjq
>mf\akZmddak`gfl`][gmfljqk_jgol`hjgkh][lk$h]__af_
Af\aYk?<H_jgolàf>Q)-Yl-&-Yf\à_`]jYl.&*-afl`]
^gddgoaf_q]Yj&Egj]gn]j$l`]gf_gaf_l]fkagfkafgl`]j:JA;
][gfgea]kYj]dac]dqlg^Yj]o]dd^gjAf\aY&:jYradakZYlldaf_
jakaf_afYlagf$kdgoaf__jgol`$Yf\[gfk]im]flegf]lYjqYf\
k[Ydhgda[qla_`l]faf_&E]Yfoàd]$;àfYk][gfgeqakk`goaf_
ka_fkg^kdgo\gof$Yf\JmkkaYakàlZql`]lmjegadafMcjYaf]&
Af\aYoadddac]dq]e]j_]Ykl`]^Yngj]\\]klafYlagf$a^l`]k]
^Y[lgjkj]kmdlafYhgjl^gdagj]ZYdYf[af_Yegf__dgZYdafn]klgjk&
AfY\\alagf$l`]?gAk\][akagflgj]dYp><AfgjekafYfmeZ]j
g^k][lgjk`Ykgh]f]\\ggjk^gj^gj]a_fafn]kle]flkaflgl`]
[gmfljq&Làk$lg_]l`]joal`l`]e]Ykmj]klYc]flg[gflYaf
l`]loaf%\][alkYf\afYlagf$Yf\Yo]YcAf\aYfJmh]]$`Yk
[j]Yl]\Yhgkalan]]fnajgfe]fl^gjaf[j]Yk]\afZgmf\Y[lanalq&
Gfl`]\ge]kla[^jgfl$[gfkgda\YlagfaklYcaf_hdY[]afY
fmeZ]jg^k][lgjk$km[`Ykl]d][ge$[]e]flYf\Zmad\af_
hjg\m[lkYf\]%[gee]j[]Ylj]f\oà[àkdac]dqlgafl]fka^q
af>Q)-&Egj]gn]j$l`]eYjc]lak[mjj]fldqZmrraf_oal`f]ok
g^[gjhgjYl]j]kljm[lmjaf_$hYjla[mdYjdq\an]klalmj]k&Oal`
[gjhgjYl]ZYdYf[]k`]]lkja\\]foal`\]Zl$gj_YfarYlagfk
Yj]k]ddaf_g^^l`]ajfgf%[gj]Zmkaf]kk]klgjYak]^mf\kYf\
\]d]n]jY_]&LàkYhhjgY[àk]ph][l]\lgZ]af[j]Ykaf_dq
na]o]\YkYnaYZd]e]YfklgkmklYafYf\Y[à]n]_jgol`$Yk
o]ddYk[j]Yl]nYdm]^gjklYc]`gd\]jk&
Af\aYkim]kllgk][mj]kmhhda]kg^fYlmjYdj]kgmj[]kak
]ph][l]\lg_Yl`]jhY[]gn]jl`]f]plq]Yj$oal`l`]?gAlYcaf_
kl]hklg]f[gmjY_]Af\aYfhdYq]jklgY[imaj]gad$_YkYf\[gYd
Ykk]lkgn]jk]Yk&Afdaf]oal`làk$YfmeZ]jg^klYl]%gof]\Yf\
private companies have announced their investment plans and
Yj]Yfpagmklg\]hdgql`]ajka_fa[YfloYj[`]klkafY[imajaf_
Ykk]lkYZjgY\&Egj]gn]j$oal`l`]:K=K]fk]plgm[àf_YfYdd%
lae]j][gj\à_àfEYq$afn]klgj[gf\]f[]akdac]dqlgj]lmjf
lgl`]hmZda[akkm]eYjc]l$Yddgoaf_hdYq]jklgjYak]egj]^mf\k
and boost their inorganic growth plans.
The overwhelming general election results which led to
l`]^gjeYlagfg^YklYZd][]fljYd_gn]jfe]fl$`Ykaf^mk]\
[gf\]f[]afl`]eYjc]l&KggfY^l]jl`]j]kmdlk$k]n]jYd
af\mkljqYfYdqklkj]nak]\Af\aYk?<H_jgol`gmldggcmhoYj\k$
oàd]l`]klg[ceYjc]lklgm[`]\YfYdd%lae]à_`&L`]E9
eYjc]lakdac]dqlg^gddgokmalYf\akaf^gjYeYbgjhgkalan]
kmjhjak]afl`][geaf_q]Yj&L`]]ph][l]\]eh`Ykakg^l`]
f]o_gn]jfe]flgfaf^jYkljm[lmj]oadddac]dq[j]Yl]Yhgkalan]
oYn]afj]dYl]\k][lgjkaf[dm\af_kl]]d$hgo]jYf\$[]e]fl
Yf\Zmad\af_hjg\m[lk&>mjl`]jegj]$[dYjalqYjgmf\hgda[q
^jYe]ogjcaf[dm\af_><AdaealafnYjagmkk][lgjk$jgd]g^;;A
]l[&oaddYkkmY_]^]Yjkg^^gj]a_fYf\\ge]kla[afn]klgjkYdac]$
creating a positive corporate environment and opening up the
][gfgeq^gjegj]E9ghhgjlmfala]k&
Transactions 2014
43
Appendices
Exhibit 20. Quarterly deal activity

235
201
196
173
211
171
164
166
3.9
3.3
8.6
4.4
8.9
4.7
Apr-Jun
12
Jul-Sep
12
Oct-Dec
12
Jan-Mar
13
Apr-Jun
13
Jul-Sep
13
Deal value (US$ billion)

44
Number of deals
7.0
Oct-Dec
13
2.0
Jan-Mar
14
Exhibit 21. Top 10 deals of FY14

Geography
Date
Target
Target
Country
Acquiror
Acquiror
Country
Value
(US$ million)
Sector
Inbound
9hj%)+
Hindustan
Mfad]n]jDl\
India
Mfad]n]jHD;
UK
+$-/+
Retail and
consumer
products
Outbound
9m_%)+
JgnmeYG^^k`gj]
Area 1
EgrYeZaim]
GadFYlmjYd?Yk
;gjhDl\
India
*$.,(
Oil and gas
Outbound
Bmf%)+
Na\]g[gf
EgrYeZaim]
GadYf\FYlmjYd?Yk
;gjhDl\$GadAf\aYDl\
India
*$,/-
Oil and gas
Inbound
G[l%)+
Ng\Y^gf]Af\aYDl\
India
Ng\Y^gf]?jgmhHD;
UK
)$.-+
Telecom
Inbound
<][%)+
?dYpgKeal`Cdaf]
H`YjeY[]mla[YdkDl\
India
?dYpgKeal`Cdaf]HD;
UK
)$(+-
Pharmaceuticals
<ge]kla[
G[l%)+
Oaj]d]kk:mkaf]kk
K]jna[]kHnlDl\
India
:`Yjla9ajl]dDl\
India
915
Telecom
Inbound
EYj%),
BYahjYcYk`Hgo]j
N]flmj]Dl\*
Hydro Power
Hjgb][lk
India
TAQA India Power

N]flmj]kHnlDl\$
AF<G%9>JA;9Af[$Af\aY
Emdlahd]
countries
618
Power and
utilities
<ge]kla[
K]h%)+
Jaypee Cement
;gjhDl\*;]e]fl
Units
India
MdljYL][`;]e]flDl\
India
.()
Cement and
building
products
Outbound
G[l%)+
:dg[c:;%)($HYjim]
das Conchas
:jYrad
GadFYlmjYd?Yk
;gjhDl\
India
529
Oil and gas
Outbound
Fgn%)+
EY[<gfYd\@gmk]
UK
Dg\`Y?jgmh
India
,1(
Real estate
Exhibit 22. Deal size break-up

FY13
10%
FY14
2% 1%
11%
2% 2%
Less than US$20 million

US$20-100 million
21%
US$100-500 million
18%
US$500-1000 million
US$1000 million and above
66%
67%
Transactions 2014
45
Exhibit 23. Deal activity by industry

FY13
Target vertical
FY14
Deal volume
Deal volume
Agricultural inputs
14
)(+
,(
Automotives
29
191
28
379
31
529
Aviation
Cement and building products
12
288
19
)$(-(
Chemicals
27
*$*0(
38
459
%
)((
)$(/(
71
628
%
Education
16
+()
%
Engineering services
17
67
12
)0(
Financial services
49
)$/++
42
683
Healthcare
26
553
25
,1(
Hospitality and leisure
17
)$*,-
12
184
Investment companies
23
19
18
<]^]fk]
<an]jka]\af\mkljaYdhjg\m[lk
<an]jka]\af^jYkljm[lmj]
Dg_akla[k
11
45
11
38
E]\aYYf\]fl]jlYafe]fl
56
452
43
123
E]lYdkYf\eafaf_
,(
897
25
166
Eak[]ddYf]gmk
)(
11
55
14
1.(
)(
-$/+(
247
%
41
+$,0*
33
)$0.0
Oil and gas

HYh]jYf\^gj]klhjg\m[lk
Pharmaceuticals
Ports and shipping
31
%
Power and utilities
28
652
29
)$+(+
Hjg^]kkagfYdk]jna[]k
29
186
31
254
Railways
Real estate
Retail and consumer products
Roads and highways
28
687
18
-*(
)(0
*$./)
66
+$0/1
113
Technology
87
)$.,1
72
685
Telecom
11
**(
11
+$)*,
L]plad]k
23
34
11
29
)(0
Travel services
46
Methodology
LjYfkY[lagf*(),akZYk]\gf=QkYfYdqkakg^L`gekgfGF=k
E9\YlY&
L`]\YlY[gehad]\ak^gjl`]h]jag\)9hjad*()+lg+)
EYj[`*(),&L`]j]hgjlà_`da_`lkYffgmf[]\\]YdkYf\
af\a[Yl]kl`]ajklYlmk]al`]jh]f\af_gj[gehd]l]\&
L]jeafYl]\\]Ydk`Yn]Z]]f]p[dm\]\^jgeal&
<YlYoYkgZlYaf]\^jgeL`gekgfGF=l`jgm_`YfE9
[mklgear]\k]Yj[`$o`]j]Af\aYoYk]al`]jYlYj_]lgj
seller or an acquirer.
<]YdnYdm]k`Yn]Z]]flYc]fYkaf\a[Yl]\afL`gekgfGF=
Y[[]kk]\9hjad*()+!&9ddl`]YegmflkYj]afMK\gddYjk
mfd]kkgl`]joak]klYl]\!&L`][gfn]jkagfjYl]g^fgf%MK
\gddYj\]YdkakafY[[gj\Yf[]oal`L`gekgfgf]ZYfc]j
_ma\]daf]k3^gj]a_f]p[`Yf_]jYl]kYj]afY[[gj\Yf[]oal`
deal announcement dates.
AfklYf[]kgêmdlahd]\]Ydkafngdnaf_eYf\Ylgjqgh]f
g^^]jk$klYc]Y[imakalagfkafljYf[`]kgje]j_]jk`Yn]
been combined into a single deal
L`]\]Ydk]pljY[l]\`Yn]Z]]f[dYkka]\^gjYfYdqkakgf
l`]^gddgoaf_ZYkak2
Af\mklja]kZYk]\gf=Qkk][lgj[dYkka[Ylagf
AfZgmf\$gmlZgmf\Yf\\ge]kla[ZYk]\gfl`]lYj_]l'
acquirer countries
<]Ydkar]ZjY[c]lkZYk]\gfYffgmf[]\\]YdnYdm]k
L`]fmeZ]jk`Yn]Z]]fjgmf\]\g^ô`]j]gl`]joak]
indicated
>Q\]fgl]kfYf[aYdq]Yj
l`]h]jag\^jge)9hjad QQ!+)EYj[` QQ#)!
Transactions 2014
47
Connect with us
Amit Khandelwal
Ranjan Biswas
FYlagfYd<aj][lgj
=eYada\2Yeal&c`Yf\]doYd8af&]q&[ge
G^[]2#1))*(./)/)0(
HYjlf]jYf\FYlagfYdD]Y\]jL][`fgdg_q$
Communication and Entertainment
=eYada\2jYfbYf&ZakoYk8af&]q&[ge
G^[]2#1)0(./*/-)+)
Ajay Arora
HYjlf]j%HjanYl]=imalq
=eYada\2eYqYfc&jYklg_a8af&]q&[ge
G^[]2#1)**.)1*(0-(
Kuljit Singh
HYjlf]jJ]lYadYf\;gfkme]jHjg\m[lk$
;]e]flYf\:mad\af_Hjg\m[lk
E9Y\nakgjq
=eYada\2falaf&_mhlY8af&]q&[ge
G^[]2#1))),+.++**(
HYjlf]jAf^jYkljm[lmj]$Hgo]jYf\<]Zl
E9Y\nakgjq
=eYada\2cmdbal&kaf_`8af&]q&[ge
G^[]2#1))),+.++))(
Ashish Basil
HYjlf]jL][`fgdg_q$L]d][geemfa[Ylagf
E9Y\nakgjq
=eYada\2Ykàk`&ZYkad8af&]q&[ge
G^[]2#1))*,,.,,-1(
48
Mayank Rastogi
HYjlf]jYf\D]Y\]j%E99\nakgjq
=eYada\2YbYq&YjgjY8af&]q&[ge
G^[]2#1)**.)1*())(
Nitin Gupta
Dilip Khanna
HYjlf]jGadYf\?Yk
E9Y\nakgjq
=eYada\2\adah&c`YffY8af&]q&[ge
G^[]2#1))*,./),/(*
Randhir Kochhar
Ajay Shah
HYjlf]j9mlgeglan]Yf\J]Yd=klYl]
E9Y\nakgjq
=eYada\2jYf\àj&cg[``Yj8af&]q&[ge
G^[]2#1))*(./)/)1(
HYjlf]jE]\aYYf\=fl]jlYafe]fl
E9Y\nakgjq
=eYada\2YbYq&k`Y`8af&]q&[ge
G^[]2#1)**.)1*(.,(
Krishnakumar V
Rajeev Suneja
HYjlf]jDa^]k[a]f[]k
E9Y\nakgjq
=eYada\2cjak`fYcmeYj&n8af&]q&[ge
G^[]2#1)**.)1*(1-(
HYjlf]j>afYf[aYdK]jna[]k
E9Y\nakgjq
=eYada\2jYb]]n&kmf]bY8af&]q&[ge
G^[]2#1)**.)1*(./(
Sailesh Rao
Rajeev Dalal
HYjlf]jEYfm^Y[lmjaf_
E9Y\nakgjq
=eYada\2kYad]k`&jYg8af&]q&[ge
G^[]2#1)0(./*/-)+*
HYjlf]jJ]lYadYf\;gfkme]jHjg\m[lk
E9Y\nakgjq
=eYada\2jYb]]n&\YdYd8af&]q&[ge
G^[]2#1)**.)1*(//(
Sushi Shyamal V
HYjlf]jAf^jYkljm[lmj]
E9Y\nakgjq
=eYada\2kmkà&k`qYeYd8af&]q&[ge
G^[]2#1)**.)1*(-/(
Rajesh Samson
HYjlf]jAf^jYkljm[lmj]
E9Y\nakgjq
=eYada\2jYb]k`&kYekgf8af&]q&[ge
G^[]2#1))*,./),.*/
Transactions 2014
49
Gmjg^[]k
Ahmedabad
2ndggj$KànYdacAk`YYf
F]Yj;&F&Na\`qYdYqY
Ambawadi
9è]\YZY\%+0(()L]d2 #1)/1..(0+0((
>Yp2 #1)/1..(0+1((
Bengaluru
12th)+thggj
M:;alq$;YfZ]jjY:dg[c
Fg&*,NallYdEYddqYJgY\
:]f_Ydmjm%-.((()
L]d2 #1)0(,(*/-(((

#1)0(./*/-(((
>Yp2 #1)0(**)(.((( )*thggj!
>Yp2 #1)0(***,(.1- )+thggj!
)kl>dggj$Hj]kla_]=e]jYd\
Fg&,$EY\jYk:YfcJgY\
DYn]dd]JgY\Bmf[lagf
:]f_Ydmjm%-.((()
L]d2 #1)0(./*/-(((
>Yp2 #1)0(****,))*
Chandigarh
1st>dggj$K;G2)..%)./
K][lgj1%;$EY\`qYEYj_
;`Yf\a_Yj`%).(((1
L]d2#1))/*./)/0((
>Yp2#1))/*./)/000
Chennai
La\]dHYjc$.th/th Floor
9:dg[c Eg\md].()$/()%/(*!
Fg&,$JYban?Yf\àKYdYa$LYjYeYfa
;`]ffYa%.(())+
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@al][`;alq$EY\`Yhmj
@q\]jYZY\%-(((0)
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NCR
?gd^Na]o;gjhgjYl]Lgo]j:
F]Yj<D>?gd^;gmjk]
Sector 42
?mj_Ygf%)**((*
L]d2 #1))*,,.,,(((
>Yp2 #1))*,,.,,(-(
Kochi
9th>dggj$9:9<Fm[d]mk
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Cg[à%.0*+(,
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6thggj$@L@gmk]
)0%*(CYklmjZY?Yf\àEYj_
F]o<]dà%))((()
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Kolkata
22 Camac Street
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CgdcYlY%/((().
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4th-th>dggj$HdglFg*:$Lgo]j*$
K][lgj)*.$
FGA<9*()+(,
?YmlYe:m\`FY_Yj$M&H&Af\aY
L]d2 #1))*(./)/(((
>Yp2 #1))*(./)/)/)
Mumbai
14th>dggj$L`]JmZq
*1K]fYhYla:YhYlEYj_
<Y\Yj O!$EmeZYa%,(((*0
L]d2 #1)**.)1*((((
>Yp2 #1)**.)1*)(((
Pune
;%,()$,thggj
HYf[`kàdL][`HYjc
Yerwada
F]Yj<gf:gk[gK[`ggd!
Hmf]%,))((.
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EY M and A On The Road To Recovery

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EY M and A On The Road To Recovery

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M&A: on the road

Private equity highlights

2. Cement and building products

4. Oil and gas

5. Power and utilities

6. Retail and consumer products

M&A: on the road to recovery

Exhibit 1. M&A activities of Indian companies

Deal value (US$ billion)

Source: EY analysis of Thomson ONE data

Exhibit 3. Five most active sectors by deal count in FY14

Source: EY analysis of Thomson ONE data

Oil and gas

Power and utilities

Exhibit 2. Five most active sectors by deal value in FY14

Source: EY analysis of Thomson ONE data

Exhibit 4. Geographical distribution of deals

M&A: on the road to recovery

Increase in mega deals

Average deal size (US$ million)

M&A: on the road to recovery

Number of big-ticket deals

The new Act contains several provisions that would help

Establishment of NCLT: Under the old Companies

M&A: on the road to recovery

Fast track merger:Mf\]jl`]gd\9[l$Yfqe]j_]j

Impact: This move is intended to help companies

Cross-border merger: The old Companies Act was

Merger of a listed company with an unlisted company:

Minority squeeze out: 9[[gj\af_lgl`]f]o9[l$af[Yk]k

Rehabilitation of sick companies: The new Act contains

Limit for objection to the scheme of arrangement:

Domestic consumption theme continues

M&A: on the road to recovery

Investment activity continues to be broad based with nearly 7

Exhibit 6. Aggregate PE investments

Value (US$ million)

Source: VCC Edge Venture Intelligence and EY analysis

Exhibit 7. Stage-wise analysis (by volume)

Source: VCC Edge, Venture Intelligence and EY analysis

Exhibit 8. Sector-wise analysis by value (US$ million)

Source: VCC Edge Venture Intelligence and EY analysis

Exhibit 9. Sector-wise analysis by volume

Source: VCC Edge Venture Intelligence and EY analysis

M&A: on the road to recovery

Exhibit 10. Funds announced and raised

Exhibit 11. Number of exits

By value (US$ million)

Source: VCC Edge Venture Intelligence and EY analysis

Source: VCC Edge, Venture Intelligence and EY analysis

M&A: on the road to recovery

M&A: on the road to recovery

Exhibit 12. M&A deals in the automotives sector

Deal value (US$ million)

Deal value (US$ million)

M&A: on the road to recovery

Exhibit 13. M&A deals in the cement and building

Deal value (US$ million)

Source: Thomson ONE and EY analysis

M&A: on the road to recovery

agrochemicals with low agricultural yields and low pesticide

Exhibit 14. M&A deals in the chemicals sector

M&A: on the road to recovery