Professional Documents
Culture Documents
Innovation themed investments in Lifestyle, Lifeskills & Education, Lifecare & Applied Technologies
+
Cross-sector early-stage development experience sunrise sectors over the last two decades
Extensive Indian and global network Track record of 11 exits in past careers with
Culture of entrepreneurship average IRR @58% p.a. over 3-5 years
Strong corporate governance Attained superior returns through commercial
Rigorous financial discipline and controls and operational inputs to sunrise sector deals
Investment characteristics
Focus on sizeable sunrise sectors with innovation as a super theme
Based on proven venture investing and exit credentials of senior team in similar sectors
Portfolio Companies: Revenues about INR 25 crore, nearing break-even/ profitable, in the year of investment
Portfolio Companies: Professionally managed, adaptive companies
Individual Portfolio Investment ticket size: INR 25-50 crore
Term of the Fund 2.5 years for investments + further 3.5 years for exits (+1 year extension at discretion of IM)
Lifeskills &
Education Delivery Channels
Innovation themed Education
investments in sunrise 22% CAGR Learning Solutions
to 2015
sectors poised to deliver
22% revenue CAGR R&D, CRAMS
till 2015 Lifecare Specialty Devices
25% CAGR
to 2015 Specialty Care
Pharma Retail
Cleantech
Applied
Mobile VAS
Technologies
25% CAGR Intellectual Property applications
to 2015
Automation
In India, c. INR 610,000 crores market in above sectors is set to grow at > 20% p.a. till 2015
and fulfill ALL the selection criteria
Lifecare, INR
39,500 cr CAGR till 2015
Applied 25% 25%
Technologies, 22%
INR 153,000 cr 20%
Lifestyle, INR
232,800 cr
Lifeskills &
Applied Lifeskills & Lifestyle Lifecare
Education, INR
70,900 cr Technologies Education
300
1000
250
Share Price (in Rs)
800
100 400
50 200
0 0
Feb-00
Feb-01
Feb-02
Feb-03
Feb-04
Feb-05
Feb-06
Feb-07
Aug-00
Aug-01
Aug-02
Aug-03
Aug-04
Aug-05
Aug-06
Apr-06
Oct-06
Apr-07
Oct-07
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Jul-06
Jul-07
Jul-08
Jul-09
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
INR 100 invested in a fast growing pharma company in INR 100 invested in a small unlisted education
2002 yielded INR 600 in 2006 for its private equity investor solutions provider in 2006 is currently worth INR 3,525
250
450
400
200
350
150 300
100 200
150
50 100
50
0 0
Jul-99
Jul-00
Jul-01
Jul-02
Jul-03
Jul-04
Jul-05
Mar-99
Mar-00
Mar-01
Mar-02
Mar-03
Mar-04
Mar-05
Mar-06
Aug-09
Sep-09
Nov-09
Dec-09
Nov-98
Apr-09
Nov-99
Nov-00
Nov-01
Nov-02
Nov-03
Nov-04
Nov-05
Oct-09
Apr-10
Feb-09
Feb-10
Mar-09
Mar-10
Jul-09
May-09
May-10
Jun-09
Jan-10
Jun-10
INR 100 invested in a mobile network provider in 1998 INR 100 invested in a fast food chain in 2009 yielded
yielded INR 640 for its venture capital investor in 2005 INR 880 in 2010 for its venture capital investor
Bharat is the youngest CEO at the Aditya Birla Group and is founder of Aditya Birla Private Equity
Over 20 year of strategy, principal investing, M&A, post-merger integration, capital markets & CXO-level experience.
As Founding CEO, he led the initiative to set ABPE practice, build the team and raise $200m in its maiden domestic
fund in trying environment of 2009. In his earlier role as Head of Group Finance at the Aditya Birla Group, he played
a pivotal role in expanding the Group through complex M&A and organic means. Earlier he worked with the Indian
JV of J P Morgan with ICICI, where he was responsible for primary capital markets and corporate advisory, leading
PSU practice. He is Fellow Chartered Accountant, Cost Accountant, Company Secretary and Bachelor of Commerce
Bharat Banka
Career highlights
th
Formation of India’s 5 largest mobile company, Idea Cellular, through merger of Birla AT&T and Tata,
acquiring RPG Cell and Escotel, providing exit to JV Partners Tata and Cingular, US $ 1 billion sale pre-IPO
and US$ 550 million IPO, creating a US$ 5 billion company and creating 2.5x value in less than 2 years
Creation of India’s largest $7 billion cement company by acquiring L&T Cement in a complex deal, re-
branding and consolidation of L&T Cement with Grasim Cement to form UltraTech Cement
Establishing $6 billion non-ferrous giant Hindalco by merging Birla Copper & INDAL with Hindalco and
raising finance in excess of $2 billion in innovative structures
Formation of US$ 2 billion Aditya Birla Nuvo by merging Indian Rayon, Fertilizer & Financial Services
Private Equity investments into Anupam Industries, a leading material handling equipment player, into CARE,
the second largest credit rating agency in India, into V-Mart Retail, the fastest growing value retail store chain in
North & West India; and into BSE, India‟s premier stock exchange
Active member of Indian Angel Network, Mentor Square & expert panel of “Hottest Startups (NEN)”,
mentoring entrepreneurs. A Member of National Committee on Capital Markets, Confederation of Indian Industry
(CII). He is a member of the Boards at a leading materials handling equipment company and a fast growing
apparel company, He is also on the Advisory Councils of an upcoming healthcare solutions company and a
unique social media platform.
Accolades: Recipient of “Professional Achiever – Finance Sector” Award from ICAI, 2008
Publications: Writes his column „Bankanomics‟ in Network 18 business magazine „The Entrepreneur‟ and had
co-authored book on „Project Finance‟ for the ICAI
Over 14 years of experience in private equity Over 25 years of varied experience in accounting,
advisory and consulting in India and the US. financial control, tax management & operational
Was formerly an Associate Partner with the global risk control, legal and compliance, and optimization
management consulting firm Kurt Salmon of IT and administration resources; of which the last 16
Associates, where he jointly led development of in the financial services industry, with firms like UBS
their practice in India. Brings a strong background and ABN AMRO Equities. Has extensive experience in
directing Finance & Accounting, treasury and risk
in strategic consulting for leading global and Indian
management functions for financial institutions.
lifestyle and consumer-facing companies. Holds a Sandeep is a Chartered Accountant from the ICAI and
Mehul Maroo
General Principal
Master‟s degree in Engineering and Management, Sandeep Bhat
holds a Bachelor of Commerce degree from the
CFO and
and a Bachelor‟s degree in Industrial and Systems Head of University of Mumbai.
Engineering, both from Stanford University. Compliance
Total Cash
Total Cash Inflow incl. Manner of
Company Name Sector/Business Outflow Div IRR Divestment Sunrise sectors: Team competence
(US$ mn) (US$ mn) (%)
TECHNOLOGY
Mro-Tek Ltd Internet Access Products 0.5 1.0 31.5 IPO
- 11 exits with 58% IRR p.a. underline
Future Software 2.0 6.2 91.0 Strategic Sale
Telecom Software - Telecom
Equipment Vendors senior team members proven credentials
Sasken Communication
3.8 7.0 64.3 IPO
Technologies Ltd Telecom Software - Telecom in overweight sectors
Equipment Vendors
Internet software - Online - Investing track record from start up to exit
Active Hotels Ltd 7.0 62.0 72.5 Strategic Sale
hotel reservation system
CONSUMER
- Direct entrepreneurial experience
Shoppers Stop Ltd Retailing 3.4 12.6 23.4 IPO
- Largely proprietary deal origination with 60+
Godrej Beverages & Foods Consumer Goods 24.8 38 53.6 Strategic Sale
Far Pavilions Tours and Travels Leisure, Hotels and Travel
3.0 5.5 34.0 Strategic Sale
deals already evaluated for the sunrise fund
Pvt Ltd Services
Indian August Tours & Travels Leisure, Hotels and Travel
2.4 14.0 140.0 Strategic Sale
Pvt Ltd Services
Size of
Company Duration of
Description Investment Exit Route
Investment
(INR Crs)
India's leading manufacturer of EOT cranes;
now has a technical collaboration with Mitsubishi
Public issue
Heavy Industries. Anupam has a
Anupam 50 3 -4 years or sale to 3rd
Industries demonstrated track record of profitable
party
growth and has a solid order book and
prospects.
Theme Duration of
Company Description Exit Route
Investment
The company operated medium to luxury
branded hotels under management contract
A chain of business Public issue or
Lifestyle as well as self owned properties. It is looking 3 years
and family hotels sale to 3rd party
to expand further in fast growing tier 2
business centres
Risks
- With a good probability of high IRR, there is an equal risk of losing entire investment in some of the portfolio companies
- The overall portfolio and underlying investments will remain largely illiquid till the eventual exit
- The prospects of an IPO of portfolio companies in this Fund are likely to be more muted compared with late-stage investments
- With the focus on disruptive business models, investments may be with first-time unproven entrepreneurs/ management
besides products/ offerings of portfolio companies might have muted precedents of success
- Investment exits in specific cases may exceed 3 years with an extended holding period
- Limited prospects of negotiating collateral securities to securitize against capital loss
- Investors must seek expert advise from competent advisors on percentage of their Net Worth to be allocated to this Fund
Mitigation
- The Fund expects to be diversified and balanced across a judicious mix of early stage assets across overweight sectors
⁻ Investment team‟s track record of investing and entrepreneurial experience may:
• Help filling the management gaps while keeping the promoters on track to achieving business milestones
• Help mentoring the portfolio companies to retain focus to achieve profitability and scales of operation
• Keep an eye on timing and selecting an appropriate mode of exit out of multiple options
Website: www.adityabirla-pe.com
Cautionary Statement
This „Presentation‟ is for informational purposes only and does not constitute an offer to sell the shares of Aditya Birla Capital Advisors Private Limited (the “Company”) or an offer to
participate in the funds proposed to be managed by it. This information profile has been provided to its recipient upon the express understanding that the information contained herein, or
made available in connection with any further investigation, is strictly confidential and is intended for the exclusive use of its recipient. It shall not be photocopied, reproduced or distributed
to others at any time. This document is neither a prospectus nor an invitation to subscribe to the shares of the Company. Nothing in this document is intended to constitute legal, tax,
securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. The information herein is subject to change without
notice.
Statements in this „Presentation‟ describing the Company‟s objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of the
applicable securities laws and regulations. Actual results could differ materially from those expressed or implied in this „Presentation‟. Important factors that could make a difference to the
Company‟s operations include global and Indian demand-supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the Company‟s
principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors
such as litigation and labour negotiations The information including facts and figures have been derived from public sources and should be relied upon by the reader at his or her own risk
and the Company, its directors or officers assume no responsibility, expressed or implied, for the completeness or accuracy of the information contained or views expressed herein or for
any direct or consequential loss arising from any use of this publication or its contents.
1110v1.0