December 2007
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Hindustan Unilever to sell Modern Foods to Switz Group

Hindustan Unilever Ltd (HUL) is selling its Modern Foods unit to Middle East-based Switz Group for about 1 bln rupees, local business daily The Economic Times said quoting sources close to the deal. The Middle East-based Switz Group is owned by Mumbais Khorakiwala family, which also owns Indian pharmaceutical firm Wockhardt Ltd, retail chain Akbarallys and bakery chain Monginis. The report cited unnamed sources as saying that HUL will not sell the plant, real estate and manufacturing facilities of Modern Foods as part of the deal. […]

Yatra Capital invests euro 8.79 mn in two firms

Yatra Capital (Yatra), a private equity player with focus on the Indian real estate, today announced investments in two companies in the retail and hospitality sectors. One of them is a $3.91 million (around Rs 22.8 crore) investment for a 28 per cent holding in Gangetic Developers, a joint venture formed to develop a retail mall in Agra, Uttar Pradesh. The other company that Yatra invested in was Alliance Hospitality Services to develop premium star category hotel and services apartments in Pune, Maharashtra. Yatra would invest ¤4.88 million (around Rs 28.5 crore) in the company for an equity holding of 20 per cent. With these investments, Yatra has now committed USD 80.5 million (around Rs 470.9 crore) of the initial USD 100 million (Rs 585 crore) it raised in December 2006. The PE player has identified hospitality and retail as the next growth areas. The hospitality sector in India is forecasted to grow at 8.8 per cent every year over the next 10 years, and it is anticipated that 1 lakh rooms will be required in the next 5-7 years with average room rates rising by 20-25 per cent in 2-3 years. […]

Essar Power to divest 10% to PEs for $700 m

The Ruia-controlled Essar Power (EPL) is offloading 10% stake to private equity (PE) investors to raise up to $700 million. The equity of the company is valued at $7 billion, sources said. Essar Power currently operates power plants with a capacity of 1,200 MW and has drawn up an investment plan of over $4 billion to set up three more projects with cumulative capacity of 3,600 MW. The projects are coming up in Gujarat, Madhya Pradesh and Jharkhand and are expected to be funded on the basis of debt-equity of 3:1. The company has drawn up plans to set up projects of about 6,000 MW capacity. Though company officials declined to comment, sources in the company confirmed that Mumbai-based SSKI has been appointed as the merchant banker. […]