Business Services Sector in India Monthly Update August 2012
Top Story SpiceJet now available through Amadeus Indian aviation company SpiceJet will now be available to users of Amadeus e‐Travel Management (AeTM), the online global distribution system corporate booking tool of Amadeus which is a Madrid based transaction processor and provider of advanced technology solutions for the global travel and tourism industry. Given the increased demand from travel managers looking to book low‐cost carriers in India, Amadeus created a framework that delivers the full content of SpiceJet to AeTM users through a direct API development. SpiceJet will be the first Indian low‐cost carrier whose content will be available through AeTM. AeTM users in India will be able to book additional services such as in‐flight meals while ensuring that they are booking negotiated corporate fares. Moreover, AeTM users will have flexible account payment options instead of having to provide credit card details at the end of every booking. With corporate travels steadily increasing in India and business travel expected to grow by 10% this year, SpiceJet expects its association with Amadeus will ensure that its fares are available not only to corporations in India but also reach out to over 6,000 corporations worldwide. With the help of Amadeus, the company is hopeful of meeting its future business goals and establish itself as the leading low‐cost carrier for travel within India.
News Update General
Expedia and RedBus join hands The world’s largest online travel company, Expedia and India’s biggest bus ticketing company, RedBus have entered into a partnership aimed at making Expedia a one stop shop for travel planning. Expedia added bus tickets to its existing range of services in a bid to offer localized and complete travel booking solution to its Indian customers. Expedia India, the Indian subsidiary of Expedia Inc. hopes to cash in on the increasing number of travellers looking for short weekend getaways, which has resulted in a significant rise in demand for bus services over the last few years. The partnership with RedBus will give Expedia access to bus seat inventory across 180,000 bus services, operated by over 900 operators across the country. An addition of such an inventory can take the overall travel experience in India to the next level for Expedia customers. This is yet another initiative from Expedia keeping in mind the comfort and needs of its Indian customers after it had recently launched its visa services. As an introductory offer, Expedia is also offering INR 500 off on bus tickets with every hotel that is booked. Business Services – Monthly Update
Just Dial giving investors exit option Just Dial Ltd., the Mumbai based local business listings site, has re‐filed for an IPO. The IPO is expected to give the venture capital investors of Just Dial a multi‐bagger exit. Investors like SAIF Partners, Tiger Global Management and Sequoia Capital may make as much as ten times the capital they had invested. Although Just Dial would not be getting any benefits as the money raised would go to the selling shareholders, the issue size for the public will make it the largest IPO by an Indian internet firm. The IPO is aimed at providing liquidity and exits to the company’s investors as it is a completely secondary offering. The issue will see sale of 13.5% stake mostly by existing shareholders SAIF Partners and Tiger Global Management. Air India aircrafts, tickets to carry ads Air India which is currently reeling under loans and losses of INR 675.2 bn is planning to carry advertisements on its aircraft in a bid to earn additional revenues. The airline plans to allow advertisers to put up ads on the tail or the hull of the aircraft. Air India is looking to earn between INR.0.5 mn to INR 2 mn per aircraft per month for an advertisement. More than one advertisement could help the airline earn up to INR 4 mn per aircraft. Revenue that the airline can earn through advertisements will depend on the kind of advertisements that advertisers would want to place on the aircraft. Most of the advertisements would come for aircrafts operating in the domestic sector as there are more stopovers for these aircrafts which increases visibility. The airline is however looking more at in‐flight advertisements and has said that it has already received many queries for these kinds of advertisements as it assures visibility. The airline is also planning to create advertising space on its boarding passes and bag tags.
News Update Expansion Plans
Sahara Group enters retail segment through its ‘Q Shops’ Sahara Group has forayed into the consumer product retail segment and is planning to sell around 800 different products through its retail format, Sahara Q Shop. The group has made an initial allocation of INR 30 bn for this business and plans to increase investment according to needs in the future. The Sahara Q Shop will be housed in an area of 330 sq ft. and will be a delivery centre for its products in the staples, personal care, general merchandise and lifestyle categories. At present around 800 such Sahara Q Shops will be opened and this will later be increased to 60,000 stores. Consumers can place order for products through Business Services – Monthly Update
Sahara’s six lakh personnel or call centres and products will be delivered from the various warehouses which will be set up across the country. The company plans to have about 305 warehouses and the first phase of the business will cover 60 towns across Rajasthan, Uttar Pradesh, Uttarakhand, Bihar and Jharkhand. Flipkart completes fourth round of funding Flipkart Online Services Pvt. Ltd., India’s largest consumer e‐commerce firm has raised ~INR 8.3 bn in its fourth round of funding. The deal is likely to secure Flipkart’s finances for the next three years. South Africa based Nasper Group and Silicon Valley’s Iconiq Capital are the new investors, while existing shareholders Tiger Global and Accel Partners will make follow‐on investments in Flipkart’s latest round of funding. With this investment, Nasper will become the second largest shareholder in Flipkart after Tiger Global. Flipkart plans to invest the money raised in expanding its supply chain capacities and launching new categories. The funding will fuel the company’s growth plans and help it to achieve its ambition of reaching INR 55 bn in gross merchandise value by 2015. Industry Expert Speak SpiceJet to be available to Amadeus eTravel Management users – Neil Mills, Chief Executive Officer, SpiceJet Ltd. "Corporate travel is on the rise in India with business travel expected to grow by 10% this year. We are delighted to work with industry leaders like Amadeus, to ensure our fares are available to corporations in India with the potential to reach over 6,000 corporations worldwide.”
Transactions (Jun 2012 – Aug 2012)
Date
Buyer
Target
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
28th Aug 2012
Fashionandyou.com
Urbantouch.com
N.A.
100
Completed
M&A
24th Aug 2012
Accel Partners
BookMyShow
1,000
N.A.
Completed
Private Equity
Business Services – Monthly Update
31st Jul 2012
Sahara Group
Plaza Hotel, New York
31,460
100
Planned
M&A
5th Jul 2012
N.A.
Yatra Online Pvt. Ltd.
800
N.A.
Completed
Private Equity
3rd Jul 2012
Yatra Online Pvt. Ltd.
Travelguru
1,000
100
Completed
M&A
2nd Jul 2012
Helion Venture Partners and Accel Partners
MySmartPrice Web Technology Pvt Ltd
20
N.A.
Completed
Private Equity
199.3
N.A.
Completed
Private Equity
27th Jun 2012
Sequoia Capital OneAssist India and Consumer Solutions Lightspeed Venture Pvt. Ltd Partners
27th Jun 2012
ValueFirst Messaging
Gingersoft Media Pvt. Ltd.
N.A.
100
Completed
M&A
12th Jun 2012
N.A.
etownindia.com
13
N.A.
Completed
Private Equity
Annual Financial Results – Revenue (INR mn) Companies
FY ’09
FY ’10
FY ’11
FY’ 12
Blue Coast Hotels Limited
769.21
883.17
918.78
N.A.
Cox & Kings Limited
2869.00
3991.54
4967.39
8449.16
Deccan Chronicle Holdings Limited
10188.90
9219.45
10309.15
9146.50
DLF Limited
104313.57
78508.98
101444.44
96293.80
210.37
59.24
164.83
N.A.
10164.58
8940.00
12749.24
14155.95
Eco Recycling Limited EIH Limited
Business Services – Monthly Update
Empire Industries Limited
1360.77
1524.56
1759.40
1733.00
Hotel Leela Venture Limited
5821.14
4784.01
5533.50
5710.90
HT Media Limited
13466.01
14129.20
17674.03
19719.90
Info Edge (India) Limited
2458.00
2370.81
3222.86
3918.84
Infomedia 18 Limited
1637.00
1487.54
1454.31
N.A.
165561.40
191358.70
225747.00
265517.90
Jagran Prakashan Limited
8233.72
9418.94
12210.89
13249.86
Jindal Hotels Limited
180.35
191.51
230.27
249.47
Kamat Hotels (India) Limited
1235.57
1064.70
1263.70
1477.31
Kilburn Office Automation Limited
353.42
393.61
548.72
N.A.
Lancor Holdings Limited
1519.73
1175.17
1954.09
1027.31
REI Six Ten Retail Limited
8314.74
6909.80
7165.00
6140.51
Royal Orchid Hotels Limited
1401.59
1205.64
1542.19
N.A.
Shriram EPC Limited
10066.17
13673.65
16708.74
18546.34
141.04
371.97
585.40
N.A.
The Indian Hotels Company Limited
27566.30
25625.30
28624.70
34327.10
Thomas Cook India Limited
2652.00
3179.54
3737.93
3775.14
ITC Limited
Thakkers Developers Limited
Annual Financial Results – Income (INR mn) Companies
FY ’09
FY ’10
FY ’11
FY’ 12
Blue Coast Hotels Limited
20.38
68.74
(31.57)
N.A.
Cox & Kings Limited
628.08
1338.50
1290.86
314.46
Business Services – Monthly Update
Deccan Chronicle Holdings Limited
1423.30
2609.18
1625.83
606.80
DLF Limited
44696.00
17198.30
16396.09
12008.20
(4.49)
1.45
7.16
N.A.
EIH Limited
1699.55
663.70
(52.30)
1240.84
Empire Industries Limited
172.34
258.33
285.33
361.00
Hotel Leela Venture Limited
1449.56
410.39
378.20
186.20
9.06
1359.14
1809.12
1654.90
570.29
520.76
631.43
1033.29
Infomedia 18 Limited
(1007.69)
(333.96)
(457.20)
N.A.
ITC Limited
33245.90
41681.80
50179.30
62581.40
Jagran Prakashan Limited
916.31
1759.03
2077.87
1783.19
Jindal Hotels Limited
15.31
18.35
25.19
30.35
Kamat Hotels (India) Limited
56.61
(14.66)
(100.17)
(276.56)
Kilburn Office Automation Limited
14.57
12.08
5.61
N.A.
Lancor Holdings Limited
320.09
182.02
322.46
112.06
REI Six Ten Retail Limited
225.97
264.44
290.40
3.19
Royal Orchid Hotels Limited
199.93
69.75
122.21
N.A.
Shriram EPC Limited
335.54
467.57
741.74
415.34
0.78
36.58
120.46
The Indian Hotels Company Limited
124.60
(1368.80)
(872.60)
30.60
Thomas Cook India Limited
250.12
471.61
562.40
523.37
Eco Recycling Limited
HT Media Limited Info Edge (India) Limited
Thakkers Developers Limited
Business Services – Monthly Update
Quarterly Financial Results – Revenue (INR mn) JulSep 2011
OctDec 2011
JanMar 2012
AprJun 2012
Cox & Kings Limited
1,367.2
2,846.2
2,678.2
N.A.
Deccan Chronicle Holdings Limited
2,382.4
2,439.8
2,195.1
N.A.
DLF Limited
25,324.1
20,343.7
26,167.8
21,977.1
Eco Recycling Limited
N.A.
61.6
N.A.
52.461
EIH Limited
N.A.
3,138.4
N.A.
N.A.
393.5
426.6
522.6
334.2
N.A.
1,784.2
N.A.
N.A.
4,888.6
5,216.0
4,861.0
4,832.7
N.A.
919.9
N.A.
N.A.
317.313
N.A.
N.A.
N.A.
ITC Limited
N.A.
62,478.4
N.A.
N.A.
Jagran Prakashan Limited
N.A.
3,170.2
4,123.1
N.A.
52.442
70.148
71.721
57.6
N.A.
347.44
N.A.
N.A.
150.126
N.A.
N.A.
N.A.
Lancor Holdings Limited
N.A.
148.391
203.461
N.A.
REI Six Ten Retail Limited
1,477.3
2,975.5
1,599.3
N.A.
Royal Orchid Hotels Limited
358.264
434.671
456.723
360.4
The Indian Hotels Company Limited
N.A.
5,214.8
N.A.
8,525.7
Thomas Cook India Limited
1,021.4
873.0
819.2
1,285.7
Companies
Empire Industries Limited Hotel Leela Venture Limited HT Media Limited Info Edge (India) Limited Infomedia 18 Limited
Jindal Hotels Limited Kamat Hotels (India) Limited Kilburn Office Automation Limited
Business Services – Monthly Update
Quarterly Financial Results – Revenue (INR mn) JulSep 2011
OctDec 2011
JanMar 2012
AprJun 2012
Cox & Kings Limited
274.1
(75.7)
(263.5)
N.A.
Deccan Chronicle Holdings Limited
210.9
213.3
60.8
N.A.
3,724.1
2,583.5
2,117.0
2,927.9
Eco Recycling Limited
N.A.
1.95
N.A.
2.02
EIH Limited
N.A.
452.5
N.A.
N.A.
Empire Industries Limited
83.0
91.0
117.5
N.A.
Hotel Leela Venture Limited
N.A.
(996.5)
N.A.
N.A.
438.4
481.6
219.9
N.A.
N.A.
288.5
N.A.
N.A.
(138.069)
N.A.
N.A.
N.A.
ITC Limited
N.A.
17,009.8
N.A.
N.A.
Jagran Prakashan Limited
N.A.
413.0
415.2
N.A.
5.724
9.177
8.803
6.712
Kamat Hotels (India) Limited
N.A.
(0.406)
N.A.
N.A.
Kilburn Office Automation Limited
5.65
N.A.
N.A.
N.A.
Lancor Holdings Limited
N.A.
(70.267)
39.637
N.A.
REI Six Ten Retail Limited
11.4
(33.7)
(3.9)
N.A.
Royal Orchid Hotels Limited
(22.153)
25.139
106.58
223.61
The Indian Hotels Company Limited
N.A.
504.8
N.A.
(333.6)
Thomas Cook India Limited
250.5
50.4
7.9
310.1
Companies
DLF Limited
HT Media Limited Info Edge (India) Limited Infomedia 18 Limited
Jindal Hotels Limited
Business Services – Monthly Update
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Business Services – Monthly Update