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November 19, 2006

Buyouts feature in Corporate Dossier

Economic Times' Corporate Dossier supplement has a four-part feature on buyouts in India and how they initial few deals have fared. (Part 1, part 2, part 3 and part 4.)
Infomedia is expected to show a very significant increase in revenue and profits in FY 2007, and will double its profits this year. The erstwhile ACC refractories, now Ace Refractories , is expecting to grow revenues by more than 20%, with exports growing by about 40%.

Meanwhile revenues at VA Tech WABAG are expected to grow at a rate of 30% over last year. MBOs, by the nature of their creation, are a high-risk category. And managing the MBO can be a tricky issue. As the Actis-PTL and Tata Infomedia-ICICI Venture buyouts have shown, existing managements can pose a problem.

...Things are also finally falling in place at Punjab Tractors, which saw a bitter battle for control with the previous CEO Yash Mahajan, till last year. Finally, Actis and the Burmans of Dabur now control the board, and the company has a new chairman in PD Narang of Dabur, and a new CEO too, in P Sivaram, the former CFO who has been pushed up to lead the tractor company.
Arun Natarajan is the Founder of Venture Intelligence, which tracks private equity and venture capital in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.