<div>At a time when private equity players are facing the pressure of exits with their investment cycles nearing end and fund managers are complaining about the time to raise India centric funds going up, Kohlberg Kravis Roberts & Co (KKR) managing to raise a $6-billion pan Asia fund came as a welcome news. The American PE fund would invest a substantial chunk of the total fund in India, focusing on deals around $100 million.<br /> <br /> According to the data obtained from Venture Intelligence, a firm that tracks PE investments in India, the first six months has not been particularly good for inbound investments. “PE investments in the first six months of 2013 were $3.351 billion (across 163 investments) down by 19.1 per cent compared to the corresponding period in 2012 ($4,143 million invested across 238 investments),” said Arun Natarajan, managing director, Venture Intelligence.<br /> <br /> Amidst all the issues and problems faced by PE players in India, there are still some investments that have made families and individuals millionaires in the last couple of years. BW brings to you two such companies — A Velumani and his Thyrocare Technologies and the S Chand group — which made it big, thanks to PE investment.<br /> <br /> <br /> </div> <table width="600" cellspacing="1" cellpadding="1" border="1" align="center"> <tbody> <tr> <td><img width="600" height="300" alt="" src="/image/image_gallery?uuid=4c4f4c7e-f1f2-498a-90bf-72022d37ac31&groupId=36166&t=1373784675616" /></td> </tr> <tr> <td><strong>A Velumani <br /> </strong></td> </tr> </tbody> </table> <div><span style="color: rgb(128, 128, 128);"><strong><br /> Thyrocare Technologies<br /> </strong></span><span style="color: rgb(128, 0, 0);"><strong>A Velumani: Net worth Rs 720 crore</strong></span><br /> <br /> While talking to A Velumani, promoter of Thyrocare Technologies, a Mumbai-based medical diagnostics services provider, one tends to get confused about whether they are talking to an entrepreneur or a social activist. Velumani, with a net worth of around Rs 720 crore, quotes American playwright Douglas Carter Beane’s play “As Bees In Honey Drown” and says most rich people also end up similarly once they become rich.<br /> <br /> Velumani, 56, while talking money, says something that is seldom heard from Indian entrepreneurs — social responsibility through wealth creation. “Since 1996 when I started Thyrocare, I have added one zero to the topline of the business every four to five years, I wish to add two more zeros in the next ten years. But I do not like the idea of judging people by the amount of money they have or the house they live in, my aim is to build a professional Indian company that serves 8 billion clients around the world,” said Velumani.<br /> <br /> Velumani, originally from Appanickenpatti Pudur, near Coimbatore in Tamil Nadu, was the first graduate from his village. But he had to remain jobless for four years before he moved to Mumbai with a job at Bhabha Atomic Research Centre (BARC). While working, he completed his masters and Phd in thyroid chemistry from Tata Memorial Hospital. On his way to the hospital Velumani would see long queues of patient and he felt he should try and do something about that.<br /> <br /> “I was no doctor, but I came up with the next best thing,” he said. After 14-years of service with BARC, Velumani quit, to start a small laboratory, with Rs 1 lakh that he had got as provident fund for his service.<br /> <br /> It is perhaps the hardships that Velumani has undergone that make him a little different from the nouveau rich promoters. “I somehow cannot identify with rich people who talk about buying jet planes and expensive cars,” declares Velumani who does not own a car, and often uses one of the 15 Tata Nanos that the company uses for brand promotion. “My employees often say that why I being the promoter use Nano, but I tell them that I do not judge people by the vehicle they use or the clothes they wear. Besides, I like the car.” he said.<br /> <br /> Velumani, whose father was a landless farmer in Tamil Nadu, says that Thyrocare’s focus is the bottom and middle of the pyramid. “We have managed to reduce the cost for our customers substantially, and we still try to reduce it every year. No company in the world has gone bankrupt when they sell products at lower cost, the other way around has happened however,” said Velumani.<br /> <br /> In 2012, Norwest Venture Partners (NVP) bought 10 per cent stake in Thyrocare for Rs 120 crore, valuing the company at Rs 1,200 crore. Earlier in 2010, CX Partners picked up 30 per cent stake in the company for Rs 188 crore. Based on the PE deal, Velumani’s net worth can be calculated at around Rs 720 crore. Ask him how his life has changed after the PE deals, he tells you that nothing has changed. <br /> <br /> “Luckily, my family members too never asked me to take them to a foreign vacation or get them an expensive car after the deal,” said Velumani.<br /> <br /> “The net worth of an entrepreneur is a notional value, and I do not focus on that. My only focus now is that my two sons who have joined me recently are able to make Thyrocare a company that becomes as big as the German companies which live for at least 100 years,” said Velumani. And when you ask him about how he likes to pass his time he is quick to say, “In my laboratory like always, the only difference is I am surrounded by MBAs and doctors” he said.<br /> </div> <div>break-page-break</div> <div><br /> <div><span style="color: rgb(128, 128, 128);"><strong>S Chand Group</strong></span><br /> <strong>Gupta family, net worth Rs 367 crore</strong><br /> Family. A word used by Indian film and television industry to dish out brainless soaps and discussed in business circles only when some billionaire brothers fight, is the foundation of the Gupta family of S Chand Group which is worth Rs 367 crore. <br /> <br /> The New Delhi-based Gupta family, that came into spotlight after Everstone Capital invested Rs 200 crore in the company, live under the same roof, in their sprawling Panchwati bungalow in Friends colony.<br /> <br /> S Chand Group (SCG) was founded in 1937 by Shyam Lal Gupta. It is one of the country’s oldest publishing houses specialising in education. The company publishes some 14 million annually mostly in the education space which includes school textbooks, technical education books and higher education books. The company has also started selling educational CDs and other digital content in last five years.<br /> <br /> At a time when digital technology is growing fast and lot of questions are being raised on the publishing business, SCG is also looking to establish itself as one of the major players in the space. <br /> <br /> <span style="color: rgb(128, 128, 128);"><strong><br /> </strong></span></div> <table width="600" cellspacing="1" cellpadding="1" border="1" align="center"> <tbody> <tr> <td><img width="600" height="300" alt="" src="/image/image_gallery?uuid=6ffdc54a-2cef-44ea-8557-4f5b0d221a18&groupId=36166&t=1373784610741" /></td> </tr> <tr> <td><strong>The Gupta family</strong></td> </tr> </tbody> </table> <div><span style="color: rgb(128, 128, 128);"><strong><br /> </strong></span><br /> “We want to expand in the education space as well as digital learning space. Our aim is to make the company a prominent player in the knowledge space,” said Dinesh Jhunjhunwala, vice chairman, SCG, and son-in-law of Gupta family. SCG has partnered with some international players to create content in the digital space for schools. The company has entered in to a joint venture with Houghton Mifflin Harcourt of the US for its digital play.<br /> <br /> The family as well as the group are headed by two matriarchs — Nirmala Gupta and Savita Gupta. <br /> Himanshu Gupta, a passionate golf player, and son of Nirmala Gupta is joint managing director of the company who has been actively involved in the business. While Jhunjhunwala, who is the son-in-law of Savita Gupta, has also been actively involved in the expansion of the business in the country.<br /> <br /> Everstone Capital picked up 35 per cent in the company in October 2012 valuing the company at Rs <br /> 571.42 crore. In 2012-13, the total turnover of the stated company has been Rs 340 crore. When asked if the PE infusion has changed anything for the promoters, Jhunjhunwala said: “The money raised through PE was infused in the business and utilised for our expansion plans. We are also in talks with another player for an acquisition which could be completed by the end of this year.” <br /> <br /> Earlier SCG had acquired Vikas Publishing, another major player in the education space, for undisclosed amount. The company in 2010 had also acquired Blackie and Sons’ Indian arm and a majority stake in BPI India, a well known children’s book publisher.<br /> <br /> The company has tied up with Google for selling digital versions of its books. “We are also in talks <br /> with Amazon and hope to expand in this space in the coming years,” said Amit Gupta, CEO, SCG. Since 2006, the company has also brought in professionals to head its different departments. “While the fundamentals of the company remain humane, professionals have to be brought in for the company to grow fast,” said Gupta, who is not part of the family and was hired by the company some seven years back. <br /> <br /> Yet, Gupta’s grandfather and father have been writers with the company. <br /> </div> <div>break-page-break</div> <div><br /> <strong>Long-term Growth Story Intact</strong><br /> Industry trackers say that while exits are going to be tough, inbound investments may make sense for some investors due to the weaker Indian rupee. However, the history of weaker exits and other problems not just in India but across Asia has made many investors cautious. “It took us 18 months to raise the fund and about 60 per cent of the limited partners (LPs) are the ones who had invested in our fund (first Asia fund) earlier. That said, it is a good time to invest in India as the long-term growth story remains intact,” said Sanjay Nayar, member and chief executive, KKR, India.<br /> <table width="620" cellspacing="1" cellpadding="1" border="1"> <tbody> <tr> <td> <strong>Owner</strong></td> <td> <strong>Company</strong></td> <td> <strong>Networth</strong></td> </tr> <tr> <td>LD Mittal</td> <td> International Tractors Ltd<br /> (Sonalika Group)</td> <td>3500<br /> </td> </tr> <tr> <td>Patu Kaswani, Ravi Jaipuria and Gopal Group</td> <td>Lemon Tree Hotels</td> <td>4504</td> </tr> <tr> <td>A Velumani</td> <td>Thyrocare Technologies</td> <td>720</td> </tr> <tr> <td>Binesh Chudgar and family</td> <td>Intas Pharma</td> <td>6,700</td> </tr> <tr> <td>Rajendra J Gandhi</td> <td>Stovekraft Pvt Ltd</td> <td>400.4</td> </tr> <tr> <td>Sanjay Agarwal</td> <td>AU Financiers (India)Pvt Ltd</td> <td>523.6</td> </tr> <tr> <td>Kedar Vaze and family</td> <td>SH Kelkar & Company</td> <td>478.4</td> </tr> <tr> <td>Chandrasekhar Gopalan</td> <td>Sutures India</td> <td>310</td> </tr> <tr> <td>Nirmala Gupta and family</td> <td>S Chand Group</td> <td>367</td> </tr> <tr> <td>C M Arun</td> <td>Vasan Healthcare</td> <td>2600</td> </tr> <tr> <td> </td> <td> </td> <td>(In Rs Cr</td> </tr> <tr> <td> * Source Grant Thornton PE deal tracker</td> <td> </td> <td> </td> </tr> </tbody> </table> <div><br /> <strong><br /> <br /> <br /> sachin581@gmail.com<br /> Sachin_vd@twitter</strong></div><strong> </strong></div></div>
