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Honeywell Acquires LNG Technology and Equipment from Air Products for $1.81 Billion

By
Garima Bansal
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Honeywell-Air Products

Honeywell has announced its acquisition of Air Products’ liquefied natural gas (LNG) processing technology and equipment brand for $1.81 billion. This strategic move, valued at approximately thirteen times the projected EBITDA for 2024, will enable Honeywell to offer comprehensive solutions for managing energy transformation processes.

With this acquisition, Honeywell will enhance its existing LNG pre-treatment solutions by incorporating Air Products’ extensive portfolio, which includes coil-wound heat exchangers (CWHE) and related equipment. Known for their compact size, reliability, safety, and high natural gas throughput, these exchangers are suitable for both onshore and offshore applications.

Vimal Kapur, Chairman and CEO of Honeywell, emphasized the importance of natural gas as a critical, lower-emission, and affordable transition fuel essential for meeting global energy demands during the shift toward renewable energy infrastructure.

The Chairman, President, and CEO of Air Products, Seifi Ghasemi, highlighted that divesting the LNG heat exchanger technology and equipment business aligns with Air Products’ strategy to focus on its core industrial gas business and advancing clean hydrogen production. This move supports their goal to decarbonize industrial and heavy-duty transportation sectors.

Ken West, President and CEO of Honeywell’s Energy and Sustainability Solutions (ESS) segment, noted that integrating the acquired technologies and team will allow Honeywell UOP to offer a broad range of scalable solutions to help global customers transition to more sustainable and efficient energy practices.

This acquisition is part of Honeywell’s broader strategy to focus on high-return investments that support future portfolio growth, particularly in automation, aviation, and energy transition. The deal is expected to close by the end of the year, subject to customary closing conditions and financing approval. It is anticipated to be accretive to adjusted earnings per share in the first full year of ownership.

Honeywell’s acquisition of Air Products’ LNG technology and equipment represents a significant step in expanding its capabilities and offerings in the energy sector, reinforcing its commitment to sustainability and innovation.

Graphisads and IIM Lucknow Launch G Force Accelerator for Media Startups

By
Garima Bansal
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Graphisads IIM Lucknow

Graphisads Limited, a prominent advertising and outdoor media company, has partnered with the Indian Institute of Management Lucknow (IIM Lucknow) to launch “G Force,” an accelerator program aimed at supporting aspiring media and MarTech entrepreneurs. This initiative combines the industry expertise of Graphisads with the academic prowess of IIM Lucknow to foster the growth of innovative businesses in the media landscape.

The G Force program represents a significant milestone in the Indian media sector, promoting collaboration and innovation between advertising professionals and academia. This partnership is unique in India, bringing together an advertising agency and a renowned academic institution to propel media startups forward. Graphisads, with its extensive media presence, strong client relationships, and vast network, aims to create numerous success stories, targeting around ₹100 crore in achieved success by these startups within the next three years.

The COO of IIM Lucknow Enterprise Incubation Center, Arunodaya Bajpai, expressed enthusiasm for the collaboration, highlighting the rapid growth and immense potential of the Media & Entertainment sector. The G Force program focuses on areas such as gamification, event automation, influencer marketing, adtech, DOOH platforms, programmatic media opportunities, and MarTech. Through personalized guidance, the program aims to equip startups with the tools and knowledge needed to thrive in the market.

To further enrich the program, Graphisads has assembled a distinguished Mentor Board consisting of industry stalwarts. These mentors include top media professionals such as Anurag Batra, Anil Dua, Varun Kohli, Mona Jain, and Rajeev Gupta. Their expertise will provide invaluable mentorship to participating startups.

The Director of Graphisads, Alok Gupta, who conceptualized the G Force initiative, emphasized the company’s commitment to giving back to the industry that has contributed to its own success. This collaboration underscores Graphisads’ dedication to nurturing the next generation of media and MarTech entrepreneurs through the G Force accelerator program.

KreditBee Seeks Private Credit Funds Ahead of IPO

By
Garima Bansal
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Madhusudan Ekambaram KreditBee

KreditBee, a fintech lender backed by Premji Invest and ICICI Bank, is engaging in discussions with private credit funds for a new funding round. This strategic move aims to bolster its valuation in preparation for its anticipated entry into the IPO market next fiscal year.

With a current valuation of $700 million, KreditBee raised over $200 million in March from its existing investors, including Advent International, Mitsubishi UFJ Financial Group (MUFG) Bank, Premji Invest, Motilal Oswal Alternates, NewQuest Capital Partners, and Mirae Asset Ventures. The non-bank financing company has accumulated more than $400 million in funding so far.

The company’s leadership team, consisting of co-founder and CEO Madhusudan Ekambaram, co-founder and CTO Karthikeyan Krishnaswamy, and co-founder and CFO Vivek Veda, plans one final private funding round before transitioning to an IPO. This private round is expected to take place within the next year, after which KreditBee will monitor market conditions to determine the optimal time for listing. If the current conditions remain stable, the IPO could occur in approximately one and a half years.

KreditBee is projecting robust growth for the current fiscal year, with an expected increase of 25-30%. The company’s personal loans segment, which is its oldest product, continues to perform strongly. Additionally, KreditBee aims to develop its business loan and loan against property segments during this period.

In light of recent concerns raised by the Reserve Bank of India (RBI) regarding unchecked growth in the unsecured lending sector, KreditBee is adopting a cautious growth strategy. The RBI’s Financial Stability Report highlighted risks associated with consumer loans, particularly personal loans, where many borrowers are managing multiple loans simultaneously. High delinquency rates are especially prevalent among borrowers with personal loans below ₹50,000.

The regulatory measures implemented, such as increased risk weights, have already tempered growth within the industry. Lower-rated non-banking financial companies (NBFCs) are experiencing capital constraints, while highly rated NBFCs like KreditBee, which benefit from strong capital adequacy and low leverage, are facing a modest increase in funding costs.

KreditBee’s loan portfolio is heavily focused on personal loans, with over 90% of its loans having an average tenure of 12 months.

CeraTattva Innotech Secures Significant Funding to Propel Innovation in Advanced Materials

By
Garima Bansal
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Dr Ganesh Babu

CeraTattva InnoTech Private Limited, a pioneering firm specializing in pre-ceramic precursors and advanced ceramic products, has successfully concluded a funding round, securing ₹1.31 Crores. This funding round was jointly led by Campus Angels Network and Forge Innovation & Ventures, underscoring growing investor confidence in CeraTattva’s transformative approach to materials science.

Founded and nurtured at the IIT Madras Incubation Cell, CeraTattva is renowned for its breakthroughs in polymer-to-ceramic technology. This innovation promises significant advancements in high-temperature applications crucial for sectors such as aerospace, defense, energy, and automotive industries.

Dr. Ganesh Babu, Founder & CEO of CeraTattva, expressed enthusiasm about the funding’s potential impact: “This investment marks a pivotal moment for us, enabling substantial enhancements in our production capabilities. It will accelerate our efforts to deploy cutting-edge material solutions across diverse industries, driving innovation and technological progress.”

Campus Angels Network, dedicated to supporting deep tech startups from university campuses nationwide, sees strategic value in CeraTattva’s innovations. Chandran Krishnan, Managing Director & CEO, commented on their investment rationale: “CeraTattva’s commitment to advancing material science aligns seamlessly with our mission. We believe their polymer-to-ceramic technology will redefine standards in aerospace and defense, facilitating significant industrial transformation.”

Forge Innovation & Ventures, renowned for its role in seeding and scaling hardware tech innovations, recognizes CeraTattva’s potential to revolutionize materials science. Vish Sahasranamam, Co-Founder & CEO, highlighted the strategic significance of the investment: “CeraTattva’s capability to convert polymers into ceramics represents a breakthrough. Their advanced products offer superior thermal and mechanical properties, promising substantial cost efficiencies and performance benefits across multiple sectors.”

The newly secured funds will facilitate the establishment of a pilot production facility, product enhancements, and market expansion initiatives. This strategic investment underscores CeraTattva’s ambition to emerge as a leading materials tech innovator and manufacturer, poised to address complex challenges in modern industrial applications.

With a focus on scaling operations and advancing technological frontiers, CeraTattva aims to consolidate its position as a catalyst for innovation in advanced materials, driving sustainable growth and industry leadership.

DMart’s Quarterly Profits Surge 17.45% to Rs 773.68 Crore on Strong Sales Growth

By
Garima Bansal
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Avenue Supermarts Ltd, the parent company of retail chain DMart, announced a 17.45% rise in consolidated net profit to Rs 773.68 crore for the June quarter. This growth was driven by increased sales in general merchandise and apparel categories.

According to a regulatory filing, the company’s net profit stood at Rs 658.71 crore in the same quarter last year. Revenue from operations rose by 18.57% to Rs 14,069.14 crore during the quarter, compared to Rs 11,865.44 crore in the corresponding period last fiscal.

Total expenses for Avenue Supermarts in the June quarter increased by 18.62% to Rs 13,056.61 crore. The company’s total income reached Rs 14,110.74 crore, marking an 18.54% increase in the June quarter.

CEO & Managing Director Neville Noronha commented on the results, noting that the contribution from general merchandise and apparel sectors showed improvement, resulting in a rise in gross margins.

During the quarter, DMart expanded its footprint by opening six new stores, bringing its total store count to 371 as of June 30, 2024. Noronha also mentioned that operating costs had increased due to ongoing efforts to enhance service levels and build future capabilities.

Founded by Radhakishan Damani and family, DMart operates retail outlets offering essential home and personal products across various states including Maharashtra, Gujarat, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab, and NCR.

Anicut Capital Closes Rs 300 Crore Equity Continuum Fund to Support IPO-Ready Companies

By
Garima Bansal
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Chennai-based investment firm Anicut Capital has announced the closure of its first late-stage equity continuum fund, which totals Rs 300 crore. This fund is designed to support high-potential companies within Anicut’s portfolio that are gearing up for an Initial Public Offering (IPO) in the next 2-4 years. It specifically targets 5-6 companies that have shown significant growth and profitability, positioning them well for public listing.

The launch of this fund aligns with a broader trend where venture capital firms create winners-only funds to reinvest in their most successful portfolio companies. As these companies expand, they require larger investments. Funds like Anicut’s continuum fund help maintain ownership stakes while providing the necessary capital for further growth. Anicut Capital plans to write cheques of Rs 50-60 crore from this new fund, which is double the amount typically provided by its growth equity funds. Currently, Rs 400 crore has been deployed across seven deals, with the entire corpus expected to be deployed by the end of the financial year.

Ashvin Chaddha, Managing Partner and Co-founder of Anicut Capital, expressed excitement about the successful closure of the Rs 300 crore Anicut Equity Continuum Fund, which includes a Rs 200 crore base fund and a Rs 100 crore green-shoe option. He noted the strong investor interest and swift closure within eight weeks, highlighted by a substantial Rs 60 crore investment from HDFC AMC, underscoring strong investor confidence.

Founded in 2015, Anicut Capital manages six alternate investment funds (AIFs) with assets totaling Rs 3,000 crore. The firm has backed 120 companies, including well-known names like Bira, Blue Tokai, and Milky Mist. Anicut Capital offers a diverse range of funds catering to different stages of a company’s lifecycle, from seed to growth stages, and includes a private credit fund that finances promoter stake buyouts and acquisition finance. Currently, Anicut is also in the process of raising its third credit fund, targeting a corpus of Rs 1,200-1,500 crore.

IAS Balamurugan, Managing Partner & Co-founder of Anicut Capital, mentioned that their third credit fund is progressing well, with significant deployments expected by June. This reaffirms their dedication to market opportunities. Expanding on private credit and early-stage innovation, Anicut has launched three active fund structures in GIFT City and demonstrated strong investment execution with $100 million deployed in the first half of 2024.

Orios Venture Partners Delays Third Fund Closure Amid Economic Uncertainty

By
Garima Bansal
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India-based venture capital firm, Orios Venture Partners, has delayed the final close of its third fund for a second time, now targeting the end of 2024. Initially aiming to raise $200 million, the fund has so far secured approximately $100 million from investors. This delay highlights the difficulties VC firms face in securing commitments from investors during uncertain times.

Founded in 2013 by Rehan Yar Khan and Anup Jain, Orios Venture Partners focuses on early-stage tech companies in India. The firm has invested in notable startups like PharmEasy and GoMechanic and manages over $300 million across its funds. The repeated delays in closing the third fund are influenced by the global economic slowdown, rising interest rates, and inflation, making investors cautious.

The delay in closing the third fund is likely to impact the startup ecosystem in India, as Orios has been a significant early-stage funding provider. With the closure pushed back, it could become difficult for startups to secure funding to scale up operations, potentially slowing the growth of India’s tech startup sector.

Despite these challenges, Orios remains optimistic and continues to support its portfolio companies while actively seeking new investment opportunities. The firm is in constant dialogue with existing investors to reassure them about its strategy and the potential of the Indian startup ecosystem, focusing on resilient sectors like fintech, health tech, and consumer tech.

Orios Venture Partners’ decision to delay the closure of its third fund reflects the broader market sentiment, with venture capital firms worldwide facing similar issues. Geopolitical tensions, the aftermath of the COVID-19 pandemic, and ongoing economic uncertainties have contributed to this cautious approach. While it poses risks for startups seeking funding, the delay also shows Orios’ commitment to raising the right amount under favorable conditions, navigating these challenges carefully to continue supporting innovation and growth within the startup ecosystem.

Zomato Completes Liquidation of Slovakian Subsidiary Amid Strategic Focus on Core Markets

By
Garima Bansal
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Zomato, a prominent player in the foodtech industry, has announced the dissolution of its subsidiary in Slovakia effective July 12, 2024, marking the completion of liquidation proceedings that began ten months ago. This decision was disclosed in a recent stock exchange filing.

Last September, the Gurugram-based company initiated liquidation proceedings for its Slovakian subsidiary, citing its non-operational status and minimal financial impact on Zomato’s overall turnover and revenue. The subsidiary, with a net worth of Rs 2.2 lakh, had negligible active operations, contributing less than 0.0001% to the company’s total net worth.

Zomato’s strategic focus on its core market of India prompted the withdrawal from smaller markets, including Slovakia, as part of broader plans announced in 2016 to scale back operations in several countries, such as the US, the UK, Brazil, Italy, and Slovakia. Notably, Italy and Slovakia were identified as non-focus markets due to the absence of local operational teams.

In addition to Slovakia, Zomato also liquidated subsidiaries in Portugal and New Zealand last year. The company’s quarterly earnings report highlighted its intention to establish an ESOP pool comprising 18.26 crore employee stock options, representing approximately 2% of its fully diluted outstanding share capital.

During the financial year 2023-24, Zomato’s standalone revenue from operations saw a significant 71% year-on-year increase to Rs 12,114 crore, driven by strong performances in food delivery and quick commerce segments. The company reported a net profit of Rs 351 crore for FY24. Moreover, its quick commerce division achieved positive adjusted EBITDA in March and aims to expand its services, targeting up to 1,000 stores by March 2025.

Adani Wilmar Expands Chemicals Footprint with Omkar Chemicals Acquisition

By
Garima Bansal
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0

Adani Wilmar, a major player in India’s FMCG sector through its joint venture with Wilmar Group of Singapore, has announced the acquisition of a 67% stake in Omkar Chemicals Industries for Rs 56 crore. The company is well-known for its diverse product portfolio, including edible oils, wheat flour, rice, pulses, chickpea flour (besan), and sugar, along with its significant presence in the oleochemicals market.

In a recent regulatory filing, Adani Wilmar finalized a share subscription and purchase agreement to secure the majority stake in Omkar Chemicals Industries Pvt Ltd, a specialist in the chemicals sector. The transaction, valued at Rs 56.25 crore and payable in cash, is expected to be completed within the next 3-4 months.

Omkar Chemicals operates a manufacturing facility in Panoli, Gujarat, with an annual production capacity of approximately 20,000 tonnes of surfactants. The company is also expanding its capabilities to include additional product lines.

The specialty chemicals market presents a lucrative opportunity across various sectors, such as home and personal care, food additives, plastics, polymers, agrochemicals, and lubricants. Adani Wilmar currently engages in this sector through third-party manufacturing and imports from Wilmar’s global plants. The acquisition of Omkar Chemicals will enable Adani Wilmar to establish local manufacturing capabilities and strengthen its position in this competitive market.

Saumin Sheth, Chief Operating Officer of Adani Wilmar, highlighted the strategic importance of the acquisition, emphasizing that it would enhance Adani Wilmar’s production capabilities and enable the company to better meet customer needs. The focus is on expanding the product range with Wilmar’s diverse portfolio, aligning with strategic objectives in downstream derivatisation of oleochemicals.

Through this acquisition, Adani Wilmar aims to consolidate its presence in the specialty chemicals sector and expand its offerings in the Indian market, leveraging synergies to drive growth and innovation.

Adani Group to Invest Additional Rs 20,000 Crore in Vizhinjam International Seaport, Aiming for 2028 Completion

By
Garima Bansal
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0

The Adani Group plans to invest an additional Rs 20,000 crore to complete the remaining three phases of the Vizhinjam International Seaport, India’s first transshipment port. This announcement was made by Karan Adani, Managing Director of Adani Ports and Special Economic Zone Ltd (APSEZ), after the official reception ceremony for ‘San Fernando,’ the first mothership to dock at Vizhinjam. He highlighted that the port will reduce logistics costs for Indian manufacturers by 30 to 40%.

The mothership arrived on Thursday at the port, developed by APSEZ under a public-private partnership model at an approximate cost of Rs 8,867 crore. Adani stated that the additional investment would enable the completion of the remaining phases in one go. He emphasized that the company’s primary focus is on reducing transit costs for manufacturers rather than gaining market share.

Adani acknowledged the challenges faced during the project but credited the support from the local community, government, and political parties for the successful completion of the first phase. He noted that securing enough stones for the breakwater construction was initially a challenge, but this issue has now been resolved, allowing for the completion of the remaining phases.

Vizhinjam port, with its strategic location, is expected to play a crucial role in India’s maritime sector as the first transshipment port in the country. The project received formal support from Kerala Chief Minister Pinarayi Vijayan, who welcomed the 300-meter-long ‘San Fernando’ at a ceremony attended by various dignitaries, including Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal.

The Chief Minister stated that the Vizhinjam International Seaport Limited would be fully operational by 2028, 17 years ahead of schedule. Initially, the plan was for the port to be fully equipped by 2045, with phases two, three, and four completed. However, with an investment of Rs 10,000 crore, the port will now be fully operational by 2028, and an agreement for this investment will be signed soon.

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