Godrej, Videocon may bid for GE's appliance business

Leading investment bankers such as UBS, JPMorgan and Goldman Sachs have sounded out the Godrej Group and Videocon on a possible bid for General Electric’s appliances division.

The Indian durable makers are closely studying the feasibility of acquiring the US giant’s appliance business, which makes refrigerators, air-conditioners and ovens. The Godrej Group had an earlier joint venture with GE that broke up in 2001. Investment bankers have estimated the deal size at $3-4 billion. Sources said the division, with sales of $7.2 billion, had an EBITDA of around $450 million. It accounted for 4% of GE’s revenues of $173 billion.

PE funds invest Rs 600cr in Godrej Inds

Godrej Industries has alloted 27.9 million shares for Rs 215 each to various entities raising about Rs 600 crore, a company statement said.

Of the shares alloted 13.95 million shares to State Bank of India (Equity), 5.3 million shares to Quantum, 3.14 million shares to Sloane Robinson and 2.3 million were issued to Deutsche Securities Mauritius.

New York Life Fund picks up minority stake in Avesthagen

New York Life Investment Management India Fund has picked up a minority stake in the Bangalore-based Avestha Gengraine Technologies (Avesthagen) for Rs 22.5 crore.Avesthagen will invest the money in expanding its business and to increase its global presence. Avesthagen is focussed on the convergence of food, pharmaceuticals and clinical genomics. The company provides solutions to agriculture and health disorders such as degenerative diseases, metabolic disorders and infections.

According to Srinivas Chidambaram, managing director, Jacob Ballas Capital India (JBC), the investment advisor to NYLIM India Fund, “With its unique business model, Avesthagen has the potential to develop a valuable IP portfolio which can be leveraged globally in the bio-pharma, bio-nutritional and bio-agriculture sectors.”

Avesthagen’s clients include global and Indian companies such as bioMerieux, Cipla, Godrej Industries, Nestle, Groupe Limagrain, and Danone. Avesthagen expects to commercially launch some of its products for the bio-pharma and bio- nutritional markets in 2008.