Zydus Cadila eyes Kraft’s India consumer biz; Sachin Bansal may back Ola
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Zydus Cadila Group is in advanced negotiations with US-based food and beverage major The Kraft Heinz Company to acquire its India consumer division for around Rs 4,500 crore ($610 million), The Times of India reported, citing people aware of the development.

Kraft Heinz’s brands in India include Complan, Glucon-D, Nycil, and Sampriti Ghee.

Zydus Cadila Group is looking to make the acquisition through Zydus Wellness, a subsidiary of drugmaker Cadila Healthcare Ltd.

The various products of Zydus Wellness include low-calorie sweetener Sugar Free, Everyuth beauty products, Nutralite and Actilife.

Zydus Wellness is in talks with private equity firms Multiples PE, ChrysCapital and True North to raise Rs 2,000 crore ($270 million) for funding the buyout, the report said.  

After the acquisition, Zydus Wellness could be valued at Rs 8,500 crore ($1.15 billion), according to the report.

Separately, GlaxoSmithKline initiated a strategic-sale review of its powder consumable brand Horlicks, which competes with Complan, and its other nutrition products in order to support its $13 billion deal to buy Novartis’ 36.5% stake in their consumer healthcare joint venture.

In another development, Flipkart co-founder Sachin Bansal is looking to invest up to $100 million (Rs 740 crore) in homegrown cab-hailing major Ola, run by ANI Technologies Pvt. Ltd, The Economic Times reported.

Citing three people aware of the development, the report said a large component of Bansal’s investment will be primary infusion into the company.

Bansal sold his stake in Flipkart as part of a deal this year in which Walmart acquired around 77% holding in the Indian e-commerce company for $16 billion (Rs 1.07 trillion).

In May, Bansal said in a Facebook post that he would leave Flipkart. “I’ll be taking some long time off and focus on finishing a few personal projects. Will catch up on gaming (and see what kids are playing these days) and brush up on my coding skills,” he added in the post.
Last month, Ola had raised $50 million (Rs 360 crore) from China-Eurasian Economic Co-operation Fund and Hong Kong-based Sailing Capital.

In October 2017, it raised $1.1 billion (Rs 7,174 crore then) in a round led by China’s Tencent Holdings, which included existing Japanese investor SoftBank Group Corp. and a few new US-based financial investors.

Separately, venture capital and growth-equity investment firm SAIF Partners has filed a petition with the National Company Law Tribunal (NCLT) accusing venture capitalist Chintalapati Srinivasa Raju and his firms of accounting fraud and siphoning off money from IVision Media, The Economic Times reported.

SAIF Mauritius, a fund of SAIF Partners, has accused IVision Media of giving interest-free loans to Associated Broadcasting Company Ltd (ABCL), the operator of television channels under the brand name TV9, without its consent, the report said.

SAIF Partners had picked up 80% stake in IVision Media for Rs 50.37 crore in August 2008, according to the report.

NCLT has restrained ABCL from selling its shares or assets until further orders, the report said.

Raju, along with his associates, held nearly 82% stake in ABCL, according to the report. Raju told the financial daily that he wasn’t involved in any wrongdoing.

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