services sector in india monthly update may 2013

7/28/2019 Services Sector in India Monthly Update May 2013

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Services Sector in India

Monthly Update

May 2013



Services – Monthly Update

Top Story

Dubai based Jumeirah Group planning hotel in Goa

Even as its first hotel in India is set to debut in Mumbai in 2017, Dubai based hotelchain Jumeirah Group is planning a new venture in Goa. The hotel group is indiscussions with the developer of the Mumbai property to develop another hotel in

Goa. The company has been looking to make its presence felt in the Indian hospitality

industry and this is a move towards it. In 2012, the company had signed amanagement agreement to operate a 470 room property in Mumbai's Lower Parel

district. Now the company is in discussions with the same developer to open a secondproperty in Goa. However, no timeframe has yet been set for the completion of this

property.

The company in a statement said that it was eager to expand in the hospitality sector

in India but the bureaucratic obstacles in the country are difficult to overcome.

News Update

General

HRH Group looking to raise funds for expansion

Historic Resort Hotels (HRH), which operates a chain of heritage hotels in Udaipur, islooking for foreign funds to expand in the Indian hospitality sector. Through the fund

that is raised, the company plans to enlarge existing hotels, lease hotel units andvacant lands from other member companies and acquire fresh properties. The

company plans to open two new art galleries in financial year 2014 and invest INR 2.5bn for the maintenance of its heritage properties which will be funded through

internal accruals.

Currently, the HRH group operates 10 properties, including hotels and resorts with

around 600 rooms across Rajasthan. It offers customers with experiences in island‐

palaces, museums, galleries, car collections, and much more. The foreign funds thecompany plans to raise will provide it with the opportunity to expand its presence in

the hospitality sector of India.

Global Franchise Architects to invest INR 400 mn in its Indian subsidiary

Geneva based Global Architects which operates brands like Pizza Corner and Donut

Bakers is investing INR 400 mn in its India to expand its the operations of itssubsidiary in the country. The funding will mostly be used for the growth of Pizza

Corner. The company has already spent over a year looking for risk capital to expand

in the Indian pizza industry. However a lack of consensus on valuation so far meansthat the company has been unable to raise private equity funding.




The company has 60 Pizza Corner stores in India of which 75% are owned by

franchisees. However, with expansion in newer markets the company is hopeful of

having more corporate‐owned stores in the next few years. In the next nine months,the company plans to launch 25 new stores, mostly in south India.

Snapdeal acquires online retailer of handcraft products

Snapdeal.com has acquired Shopo.in, an online marketplace for Indian handcraft products, signaling within the Indian online retail space. Although the Indian designer

and handicrafts market is large, it is highly fragmented. With demand for such

products being huge, Snapdeal wanted to create a platform for small businessesacross the country to sell their products to consumers nationally. Since Shopo had

built a very strong supply side for Indian handicraft and designer products, it was

natural for Snapdeal to acquire it.

News Update

Regulatory

Radio cab fares to increase in Delhi

The transport department in Delhi has decided to revise the fares of radio taxis in thecity. This comes after auto‐rickshaw fares were revised in early May. Air‐conditioned

radio taxis will now charge INR 23 per kilometre while the economy taxis will charge

INR 13 per kilometre. The transport department had increased the fares of auto‐rickshaws and regular taxis by 25%. While the radio taxi operators demanded a

similar hike, the government agreed to increase their fare by 15%.

Radio taxi fares were last revised in Sep 2010. The fares existing since then for AC and

non‐AC radio cabs have been INR 20 and INR 10 per kilometre respectively. The new

fares are expected to be operational from the beginning of Jun.

News Update

Expansion Plans

Worldhotels opens new hotel in Gurgaon

Worldhotels is continuing its expansion in the Indian hospitality industry with the

opening of a new hotel in Gurgaon. The Galaxy Hotel & Spa will be joiningWorldhotel’s ‘First Class Collection’. The hotel will feature 80 guest rooms and suites,

complete with all modern facilities such as restaurants and bars, conference and




meeting rooms, an event venue which can accommodate up to 1,000 guests, anexclusive spa and luxurious retail options.

The Galaxy Hotel & Spa is renowned for its exquisite food and beverage offeringswhich include oriental specialties at The Monk; India's first cricket themed pubbrewery, Howzatt; and the acclaimed Indian restaurant Axis, which showcases a

spectacular open kitchen. The new property will help Worldhotels in its expansion

plans in the Indian hospitality sector.

Industry Expert Speak

Accor Group’s Formule1 brand looking to expand in India – Philip Logan, Vice

President -Formule1

India,

Accor

Group

“It (Indian hospitality sector) is a tough market and there are many barriers to entry.We are not a charity. The property prices are very high, especially for the budget

segment of hotels.”

Bureaucratic pressures concern hotel groups looking to enter India – Gerald

Lawless, CEO and President - Jumeirah Group

“The barriers to entry are high, which is one of the difficulties in India and even thenwhen you do get that entry, the bureaucracy is so cumbersome for the developer it

takes ages to get something up and running.”

Transactions (Mar 2013 – May 2013)

Date Buyer Target Deal Size

(INR mn) % stake Deal Status

Type of Transaction

9th May2013

CanaanPartners and

Mayfield Fund

Indiapropert y.com

380 N.A. Completed PE

26th Apr2013

Mumbai

Angels andAmit Gupta

Plustxt

MobileSolutions Pvt

Ltd

N.A. N.A. Completed PE

18th Apr2013

PublicisGroupe

Neev

InformationTechnologies

Pvt. Ltd.

N.A. 100 Completed M&A




15th Apr

2013

Jungle

Ventures

ZipDialMobile

Solutions Pvt.Ltd.


4th Apr

2013

McCann

WorldgroupIndia

End To EndMarketing

Solutions Pvt.Ltd.


28th Mar

2013

ZeeEntertainment

EnterprisesLtd.

MirriAd

AdvertisingPvt. Ltd.


15th Mar

2013

ValueFirst

Digital MediaPvt. Ltd.

clk2c.com N.A. 100 Completed M&A

8th Mar

2013

BigtreeEntertainment

Pvt. Ltd.

TicketGreen.c

omN.A. 100 Completed M&A

4th Mar

2013

Tree HouseEducation &

AccessoriesLtd.

BrainworksLearning

Systems Pvt.Ltd.


Annual Financial Results – Revenue (INR mn)

Companies FY ‘10 FY ‘11 FY ‘12 FY ‘13

Blue Coast Hotels Limited 883.17 918.78 N.A. N.A.

Cox & Kings Limited 3,991.54 4,967.39 8,449.16 N.A.

Deccan Chronicle HoldingsLimited

9,219.45 10,309.15 9,146.50 N.A.

DLF Limited 78,508.98 101,444.44 96,293.80 N.A.

Eco Recycling Limited 59.24 164.83 N.A. N.A.

EIH Limited 8,940.00 12,749.24 14,155.95 N.A.

Empire Industries Limited 1,524.56 1,759.40 1,733.00 N.A.

Hotel Leela Venture Limited 4,784.01 5,533.50 5,710.90 6,538.60




HT Media Limited 14,129.20 17,674.03 19,719.90 20,159.90

Info Edge (India) Limited 2,370.81 3,222.86 3,918.84 4,699.50

Infomedia 18 Limited 1,487.54 1,454.31 N.A. N.A.

ITC Limited 191,358.70 225,747.00 265,517.90 316,275.40

Jagran Prakashan Limited 9,418.94 12,210.89 13,249.86 N.A.

Jindal Hotels Limited 191.51 230.27 249.47 280.52

Kamat Hotels (India) Limited 1,064.70 1,263.70 1,477.31 N.A. Kilburn Office Automation

Limited393.61 548.72 N.A. N.A.

Lancor Holdings Limited 1,175.17 1,954.09 1,027.31 N.A. REI Six Ten Retail Limited 6,909.80 7,165.00 6,140.51 N.A. Royal Orchid Hotels Limited 1,205.64 1,542.19 N.A. N.A. Shriram EPC Limited 13,673.65 16,708.74 18,546.34 N.A. Thakkers Developers Limited 371.97 585.40 N.A. N.A. The Indian Hotels CompanyLimited 25,625.30 28,624.70 34,327.10 37,433.60

Thomas Cook India Limited 3,179.54 3,737.93 3,775.14 N.A.

Annual Financial Results – Income (INR mn)

Companies FY ’10 FY ’11 FY’ 12 FY’ 13

Blue Coast Hotels Limited 68.74 (31.57) N.A. N.A.

Cox & Kings Limited 1,338.50 1,290.86 314.46 N.A.


2,609.18 1,625.83 606.80 N.A.

DLF Limited 17,198.30 16,396.09 12,008.20 N.A.




Eco Recycling Limited 1.45 7.16 N.A. N.A.

EIH Limited 663.70 (52.30) 1,240.84 N.A.

Empire Industries Limited 258.33 285.33 361.00 N.A.

Hotel Leela Venture Limited 410.39 378.20 186.20 (4,334.9)

HT Media Limited 1,359.14 1,809.12 1,654.90 1,676.50

Info Edge (India) Limited 520.76 631.43 1,033.29 915.90

Infomedia 18 Limited (333.96) (457.20) N.A. N.A.

ITC Limited 41,681.80 50,179.30 62,581.40 76,080.7

Jagran Prakashan Limited 1,759.03 2,077.87 1,783.19 N.A.

Jindal Hotels Limited 18.35 25.19 30.35 24.44

Kamat Hotels (India) Limited (14.66) (100.17) (276.56) N.A.

Kilburn Office AutomationLimited

12.08 5.61 N.A. N.A.

Lancor Holdings Limited 182.02 322.46 112.06 N.A.

REI Six Ten Retail Limited 264.44 290.40 3.19 N.A.

Royal Orchid Hotels Limited 69.75 122.21 N.A. N.A.

Shriram EPC Limited 467.57 741.74 415.34 N.A.

Thakkers Developers Limited 36.58 120.46 N.A. N.A.

The Indian Hotels CompanyLimited

(1,368.80) (872.60) 30.60 (4302.4)

Thomas Cook India Limited 471.61 562.40 523.37 N.A.




Quarterly Financial Results – Revenue (INR mn)

Companies Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

Jan-Mar

2013

Cox & Kings Limited 5,319.4 6,889.2 3,570.3 N.A.


1,504.3 N.A. 1,023.2 N.A.

DLF Limited 21,977.1 20,395.4 13,100.4 22,255.5

Eco Recycling Limited 52.461 N.A. 52.249 N.A.


HT Media Limited 4,832.7 5,009.3 5,402.5 4,915.4

Infomedia 18 Limited 110.992 125.985 N.A. N.A.

Jagran Prakashan Limited N.A. N.A. N.A. N.A.

Jindal Hotels Limited 57.6 N.A. 74.428 N.A.

Kilburn Office Automation

Limited38.53 27.168 N.A. N.A.

Lancor Holdings Limited 156.837 N.A. N.A. N.A.

REI Six Ten Retail Limited 1,939.2 692.9 657.7 N.A.

Royal Orchid Hotels Limited 360.4 355.598 485.213 N.A.

Thakkers Developers Limited N.A. N.A. 140.97 N.A.

The Indian Hotels CompanyLimited

8,525.7 8,138.0 10,604.7 10,165.2

Thomas Cook India Limited 1,285.7 999.4 N.A. 829.4

Quarterly Financial Results – Income (INR mn)

Companies Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

Jan-Mar

2013

Cox & Kings Limited 1,468.3 1,476.0 33.4 N.A.





(1,662.4) N.A. (22.1) N.A.

DLF Limited 2,927.9 1,385.1 2,848.0 (41.9)

Eco Recycling Limited 2.02 N.A. 4.152 N.A.


HT Media Limited 406.5 333.1 536.1 400.8

Infomedia 18 Limited (23.738) (33.648) N.A. N.A.

Jagran Prakashan Limited N.A. N.A. N.A. N.A.

Jindal Hotels Limited 6.712 N.A. 10.51 N.A.

Kilburn Office Automation

Limited(14.6) (36.253) N.A. N.A.

Lancor Holdings Limited 25.448 N.A. N.A. N.A.

REI Six Ten Retail Limited 1.0 (11.9) (9.3) N.A.

Royal Orchid Hotels Limited 223.61 (121.146) (105.719) N.A.

Thakkers Developers Limited N.A. N.A. 68.216 N.A.

The Indian Hotels Company

Limited (333.6) (574.9) 497.7 (3,891.6)

Thomas Cook India Limited 310.1 100.6 N.A. 14.0




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services sector in india monthly update may 2013

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