India Inc Goes Abroad - MAPE Advisory Group

The Industry Context
Consumer Sector
The Consumer sector comprises deals made in the Tea, Apparel and Textile. The Consumer sector accounts for 4.1% of total deal
volume and 7.8% of deal value.
Value (US$mm)
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 Q106
Source: Bloomberg, Merger Markets, Mape
Value No of Deals
Two tea deals (Tata-Tetley and Apeejay - Premier Foods) accounted for 87% of total deal value in the sector. Tata Tea's acquisition of
Tetley group for US$431.2mn is the biggest deal in the sector and is considered as a landmark deal for outbound Indian transactions.
Godrej's recent acquisition of Keyline Brands in the UK is the first instance of an Indian company buying a foreign business on standalone
basis rather than as a synergy/front- end for the Indian activities as in the case of tea industry deals.
The increasing prominence of Indian textile companies in the international market place has not mirrored in their deal activity. We
foresee heightened international deal activity in this sector driven by Indian companies' quest for customer relationships and global
production facilities.
Select Transactions in the Sector
Acquirer Target
Country
Date Deal Size
(US$mn)
Apeejay Premier Foods lpc UK Oct-05 140.5 1 0% in th list e de UK foo compa d yn
Int renational (T ae Bsuiness)
Dabur I dnia Redrock Lt .d UK Jul-03 5.0 UK base dR derock is engag de in
manufacturi gn, selling, incl duing export of
vario su cosm teics, toiletries a dn healthcare
products GHCL Dan iRver Icn. USA Dec-05 53.5 100% in US- absed manufacturer and
marketer of textil eproducts Godrej Keyline Brands Ltd UK Oct-05 2 .2 100% in UK based FMCG company eng gaed
in t eh manuf cature, marketing, sales a d n
distributio nof c som etics and toiletries;
annual turnover of GBP16.7mn in 2004
Raymond India Regency Tex tiles Portuguese Oct-01 3.0 100% in the Portugal-based garments Portug ea su
company
Tata Tea Tetl y Group e
UK eFb-0 431.2 100% in th eworld's N muber tea 2 bag
company, with a pr senec ei nover 35
co nutries
Tata Tae Fmal herb I cn. & USA Oct-05 Est. < 10.0 100% in Califor ina-based c mo panies selling
Goodearth herbal, fruit flavore d , medicinal and
traditional t aes
Remarks
12
6
5
4
3
2
1
0
No. of Deals