Everstone Group agrees to buy Kenstar

Mumbai, Monday, November 06, 2017 – The Everstone Group (Everstone) has agreed to buy “Kenstar”, India’s leading brand of coolers, air conditioners and home appliances. The proposed sale, subject to statutory approvals and specific clearances, includes the purchase and transfer of the “Kenstar” brand and businesses under the brand on a going concern basis including a state-of-the-art manufacturing facility, as well as assets from Century Appliances Ltd. (an associate of the Videocon Group).

The Parties will work together to close the deal in the near future.

Under the agreement, the existing management team at Kenstar, led by business head Rajiv Kenue, will continue to manage the business, and will be strengthened significantly by the operational capabilities, additional resources and financial investments of the Everstone Group. Operating as an independent company, the Kenstar business will be controlled by Everstone. As part of the planned deal, Everstone will also enter into a strategic alliance with Videocon group, among others, for manufacturing, cooperation on Kenstar brand, and developing new products.

Kenstar is a market leading brand of air coolers, with No. 1 or strong No. 2 positions in most regions in India and a National No. 2 share. Kenstar also has a significant and growing presence in air conditioners and a broad range of home appliances such as mixer grinders, juicer mixer grinders, food processors, electric kettles, oxy fryers, microwave ovens, water heaters, and smart ceiling fans.

The Everstone Group currently spans a portfolio of over 30 companies, with a combined turnover of over Rs. 12,000 crores and a total workforce of around 1,00,000. It has a track record of building businesses from scratch such as Burger King India (chain of fast food eateries); IndoStar Capital Finance, a leading NBFC; and rapidly growing businesses such as publisher S. Chand Group (recently listed on the stock exchange after over four years of acquisition-led growth). The agreement to buy Kenstar follows Everstone’s acquisition of HUL’s bread and bakery division under the brand Modern in April 2016. Powered by Everstone’s financial investments and operating expertise, the Modern business has been completely revamped. In less than 18 months, Modern Foods has grown rapidly as an independent company, with a comprehensively renovated brand, rapidly expanding distribution, and innovative new products.

Speaking on the proposed Kenstar deal, Avnish Mehra, Managing Director, Everstone Group, said, “Kenstar is a marquee household appliances brand with a strong recall. Everstone looks forward to significantly invest in the Kenstar brand and leverage our operating expertise to unlock its true potential by strengthening the
dealer network, supporting product innovation, and investing in brand building.”

Anirudh Dhoot, Director, Century Appliances Ltd., welcomed the agreement and said: “We believe Everstone is the perfect partner for Kenstar with the right mix of financial resources and operating expertise to rapidly grow the latent potential of the Kenstar business. We look forward to collaborating with Everstone and Kenstar teams in growing the business in the years to come.”

About The Everstone Group
The Everstone Group is a premier India and Southeast Asia focused business group and multi asset manager with assets under management of approximately US $4 billion. Everstone has presence across six offices— Singapore, Mumbai, Delhi, Bengaluru, Mauritius, and London. The firm’s strong presence and network in India and Southeast Asia allows its existing and new portfolio businesses to build operations in the region and beyond. Everstone has been awarded ‘Mid-Market Firm of the Year in Asia’ for 2016, by Private Equity International. The Everstone Group follows an active and operational investing style and has a history of building large-scale businesses. The group has stakes in several businesses in consumer categories including, but not limited to, Modern Foods, Ritu Kumar, S Chand Group, Ozone, Burger King India, Burger King Indonesia, Domino’s Indonesia, and several marquee restaurant brands. Everstone also has a fully integrated real estate development platform and is India’s largest developer of industrial real estate through IndoSpace.
For more information, visit www.everstonecapital.com
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About Kenstar
Launched in 1996 with the promise of bringing “the way the world lives” into India, Kenstar is one of the leading household brands focused on climate control categories such as Air Coolers, Air Conditioners, smart ceiling fans, and a vibrant range of home appliances, including Mixer Grinders, Juicer Mixer Grinders, Food Processors, Hand Blenders, Juicers, Electric Kettles, Oxy Fryer, Pop-Up Toasters, Microwave Ovens, Induction Cooktops, Water Heaters, Irons and Smart Ceiling Fans. Distributed nationally at over 15,000 points of sale, with 1000+ trade partners, Kenstar is a No. 2 brand nationally in Air Coolers, with a No. 1 or strong No. 2 position in all regions other than North India.

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M&A: Avoiding cheap leverage trap while executing cross-border transactions

Dhanpal Jhaveri, Managing Partner, Everstone Private Equity, shares his views on “Planning, Negotiating, and Executing Cross-border Transactions” at the Mint Dealmakers Forum 2017, held on 22nd September, 2017

Read more at:  http://www.livemint.com/Compani​es/N4vjerajodTP2​ljxrz4lkL/MA-Avoiding-cheap​-leverage-trap-while-​executing-crossbord.html

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‘Everstone is bullish on platform deals’

In an exclusive interview with The Hindu Business Line, Dhanpal Jhaveri, Managing Partner, Everstone Private Equity, talks about the overall PE scenario in India and shares his perspective about the firm’s possible investment and exit plans for the year.

Read more at: http://www.thehindubusinessline.com/companies/everstone-is-bullish-on-platform-deals/article9857889.ece

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Food industry veteran Ajay Kaul joins Everstone Group as Senior Director to drive QSR growth for food platform F&B Asia

Singapore, Aug 22, 2017 – Food and beverage (F&B) industry veteran Ajay Kaul has joined Everstone Group as Senior Director to support growth in the Quick Service Restaurant (QSR) business of its food platform F&B Asia.

The former CEO of Jubilant FoodWorks Ltd., which includes brands such as Domino’s Pizza India and Dunkin’ Donuts India, will also serve as Executive Chairman on the boards of F&B Asia’s investments in Indonesia: Domino’s and Burger King.

Ajay, who has spent more than a decade in the F&B industry, took Domino’s in India to become the largest market for Domino’s outside of the US. It is the largest QSR brand in India for the past few years. Ajay has nearly 28 years of overall work experience, including at American Express and TNT India and Indonesia where he had sales and marketing, as well as business leadership, roles.

At Everstone, he will oversee QSR investments of F&B Asia that owns and operates several marquee brands such as Burger King (India and Indonesia), and Domino’s (Indonesia). Also under the platform’s umbrella are brands such as Masala Library, Farzi Café, Pa Pa Ya, Masala Bar, Harry’s, Pind Balluchi, and Duck & Rice.

“We are thrilled to welcome Ajay to the Everstone Group and the F&B Asia family where his wide experience and success in the food sector will be greatly beneficial as we target higher and sustained growth in our QSR businesses in Indonesia—Burger King as well as the Domino’s brand,” said Philip Walters, Executive Chairman, F&B Asia.

F&B Asia is an investment vehicle owned and managed by Everstone that was created to build a Pan-Asian Food and Beverage Services (“F&B”) platform across multiple formats and cuisines. On the QSR front, the platform company plans to grow Domino’s Indonesia, as well as Burger King Indonesia and India, by 30 to 50 stores each annually. Currently, Burger King Indonesia has over 70 stores while Domino’s Indonesia has more than 130.

“I really look forward to working with my colleagues at Everstone and F&B Asia at a time where favourable
demographics, rising incomes and increasing interest in eating out in Indonesia make for an exciting journey
of growth and innovation for top QSR brands,” Kaul said.

An alumnus of IIT-Delhi, Kaul completed his MBA from XLRI Jamshedpur.

About F&B Asia Ventures
F&B Asia Ventures is an investment holding company which is a pan-Asian food and beverage platform with
assets across multiple cuisines, geographies and formats. The company is focused on expansion of brands via
organic and inorganic routes, opportunistically evaluating synergetic bolt-on acquisitions and working on the
franchise model for franchising brands in other South-East Asian countries. F&B Asia brands include Harry’s,
Domino’s, Burger King, Pind Balluchi and Duck & Rice.

For more information, visit www.fb-asia.com

About Everstone Group
The Everstone Group is a premier India and Southeast Asia focused private equity and real estate investment
firm with assets under management of approximately US $4 billion. Everstone has around 200 people
working across six offices—Singapore, Mumbai, Delhi, Bengaluru, Mauritius and London. The firm’s strong
presence and network in India and Southeast Asia allows its existing and new portfolio businesses to build
operations in the region and beyond. Everstone has been awarded ‘Mid-Market Firm of the Year in Asia’ for
2016, as well as ‘Private Equity Firm of the Year in India’ by Private Equity International for six consecutive
years from 2011 to 2016.

For more information, visit www.everstonecapital.com

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Modern gets modern

ET Brand Equity writes on how ‘Modern gets modern’ and Rajev Shukla, Managing Director, Everstone Capital Asia and director on the board of Modern Food and Aseem Soni, CEO and board member, Modern Food share their perspective…

Read more at: http://brandequity.economictimes.indiatimes.com/news/marketing/modern-gets-modern/59652575

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Rising to the occasion

Deep Mishra, Managing Director, Everstone Group and Aseem Soni, CEO, Modern Food Enterprises Pvt. Ltd., are featured in a column in the Asian Venture Capital Journal (AVCJ) that talks about Modern Foods’ history and rebranding and Everstone’s role in the firm.

Read more at: http://www.everstonecapital.com/assets/articles/avcj-modern-story.pdf

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Modern Food Enterprises Relaunches Iconic Brand with Enhanced Portfolio of Health-Focused Products

Mumbai, June 23, 2017 : Modern Food Enterprises Pvt. Ltd. (MFEL) has announced a comprehensive relaunch of its iconic Modern brand, with new brand positioning; new brand identity; fresh, vibrant and contemporary packaging; and an enhanced portfolio of superior and healthier products.

The new Modern brand has been carefully crafted to strengthen its appeal to multiple consumer segments, at every life stage, for every meal occasion, through a range of products that are smarter choices for consumers seeking healthier, nutritious and tastier options.

The revamped new logo refreshes the iconic Modern wordmark, making it more vibrant and energetic, lending a sense of positivity, smartness, versatility and imagination to the re-launched brand. The packaging builds on the iconic elements of the Modern brand—the signature checkered patterns and stripes—and transforms them into a vibrant new look that manifests Modern’s new philosophy of ‘Thrive, and savour life to the fullest.’

In the Mumbai-Thane region, Modern currently has an estimated overall 15% market share, which the company is looking to increase to over 20% during the course of the next two quarters.

Modern Food sees significant potential in the health and wellness breads category. The Mumbai-Thane region is one of the two most evolved markets in India, along with Delhi. Within Mumbai, the Health & Wellness sub-category accounts for 25% of the overall bread sales. As a leading industry player, Modern will spearhead the development of this segment in the Mumbai-Thane region and across India, making more healthy, nutritious and tasty choices available to consumers.

Aseem Soni, Chief Executive Officer & Board Member, Modern Food, said, “In the Mumbai-Thane market alone, we are looking at 25% overall growth and this will be driven by a 30% growth in the health and wellness range alone.
“We have made a conscious decision to focus on the health and wellness segment during the relaunch phase. The team at Modern Food has worked hard on creating an advanced portfolio of superior products, keeping in mind the evolving taste of consumers and their changing lifestyles that demand healthy, nutritious and tasty food choices. In terms of overall business perspective, we are looking at a 25% increase in revenue by FY18, and at a goal to grow revenue four-fold by FY2021 to Rs 1,000 crore.”

In this context, we plan to strengthen our presence in the states where we are already present, especially Maharashtra, Kerala, Tamil Nadu, Telangana, Karnataka and West Bengal; and expand our presence in white spaces in the North and West. In Mumbai-Thane region specifically, we are planning to widen our reach by significantly increasing distribution.” added Soni.
Speaking further, Soni said that though Modern is well known in Maharashtra as a bread and bakery brand, he expected the brand’s distribution to go up by over 50% within Mumbai.

Modern, named the Most Trusted Bread Brand in India last year, has a legacy of over five decades in the country and is the pioneer of the organized bread sector in India.

Everstone Group, a leading Southeast Asia and India focused private equity investor with approximately US $4 billion assets under management acquired Modern Food from Hindustan Unilever Ltd. on 1st April, 2016, and Modern’s relaunch has been crafted with intensive efforts over the last 12 months, with significant investments in manufacturing, as well as R&D at Modern’s new innovation hub in Chennai, coupled with thorough efforts on consumer insights, strategy and design.

The new portfolio features products such as Milk Plus bread enriched with calcium; Hi-Fibre Brown bread reinforced with premium wheat fibre; 100% whole-wheat bread; and new innovations such as Multigrain Superseed Bread which not only has superseed sprinkles on top but even the flour is made of seven grains and contains Omega 3. All these products will be now available in Mumbai-Thane, giving the state’s consumers a greater variety of tasty and healthier eating and snacking options for every meal and snack occasion.

With the backing of Everstone Group, the 25% overall revenue growth in Modern in the current fiscal year will be significantly driven by volume growth of more than 20% in the health and wellness segment.

Rajev Shukla, Managing Director, Everstone Capital Advisors, Mumbai, and a Director on the Board of Modern Food, said, “At Everstone Capital, we believe in strong partnerships and building great brands. Modern is an iconic brand, the first brand to launch packaged bread in Mumbai in 1968 and was the first to launch the iconic fruity bread in 1968 and the first ever brown bread. It has been a pleasure for me to work with the Modern Team in crafting the renovated mix. We have received an excellent response in the last few weeks since our relaunch in southern India and Kolkata. Consumers love the renewed Modern, reflecting in bread volume uplifts of more than 5% in the aggregate (vs. incoming sales rate) across markets where the relaunch has been rolled out.

Our health and wellness segment is also expanding steadily. In the last 45 days,since the launch of our new bouquet of products, the health and wellness range is growing at double the normal value growth for the overall portfolio. We are confident of accelerating this success in a crucial region like Mumbai-Thane,” Shukla added.

Everstone will continue to make key investments in Modern to expand its market and build the brand, improve quality, innovate and expand the range, as well as enter new markets and categories.

About Modern Food Enterprises Pvt. Ltd
Established in 1965 by the Government of India, Modern was the first branded bread in India. In the following decades, Modern became one of India’s best recognized brands with a full range of white, sweet, health and wellness breads, as well as value-added bakery products such as rusks, cakes, muffins, buns, pavs and cream rolls. Modern Food’s bread and bakery products are manufactured and marketed nationally through a network of over 40 manufacturing plants and around 80,000 outlets. In its new avatar, Modern wants its customers to ‘Thrive, and savour life to the fullest’ by helping them make smarter choices from its expanded range of healthy, nutritious and tasty bread and bakery products.

Visit www.modernfoods.co.in for more information.

About Everstone Group
The Everstone Group is a premier India and Southeast Asia focused private equity and real estate investment firm with assets under management of approximately US $4 billion. Everstone has around 200 people working across six offices—Singapore, Mumbai, Delhi, Bengaluru, Mauritius and London. The firm’s strong presence and network in India and Southeast Asia allows its existing and new portfolio businesses to build operations in the region and beyond. Everstone has been awarded ‘Mid-Market Firm of the Year in Asia’ for 2016, as well as ‘Private Equity Firm of the Year in India’ by Private Equity International for six consecutive years from 2011 to 2016.

For more information, visit www.everstonecapital.com

LinkedIn

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Everstone Group increases investment in Servion Global

Mumbai, May 25, 2017 – The Everstone Group has increased its investment in leading Customer Experience Management (CEM) solutions provider Servion Global Solutions to around $74 million, on the back of its portfolio firm posting strong revenue growth and witnessing a significant jump in profitability.

Everstone and Solmark, an equity fund started by technology entrepreneurs, had initially acquired a controlling stake in Servion in November 2014 through Evertech Pte Ltd, Everstone Group’s technology investing platform.

The latest round also includes investments by a large part of Servion’s management team and the founders on the back of new customer wins and strong revenue and EBITDA growth.
Servion Global Solutions CEO Sameet Gupte said, “We aim to double our revenue in the next three years organically and are also keen to bolster our offerings by exploring strategic acquisitions in line with our vision.”

Servion’s latest revenue was US $75 million.

“The additional investment from Everstone endorses the confidence in the Servion growth story and we are excited to utilize the new capital to further scale-up our hiring and growth in markets across the US, UK, Asia and the Middle East,” Gupte said.

Our vision is to be a leader in the Customer Experience Management (CEM) space enabling enterprises to convert their customer touch points into long-lasting journeys and optimize the costs of their customer interaction channels. New customer wins and recognition from industry analysts is validating our vision, approach and focus,” added Gupte.

Fuelling Servion’s growth ambitions globally are major deals won by it recently. These include a contract with one of the largest US wholesale retailers to provide Omnichannel solutions, including its flagship ServIntuit platform, for customer analytics. It also includes delivering a cloud-based customer experience solution for a major telecom provider in Asia; winning a contract to improve the OmniChannel platform of a UK government agency; and providing an AI (Artificial Intelligence) powered virtual customer assistant solution for a leading retail bank in the Middle East.

Prateek Dhawan, Everstone MD and board member of Servion, said, “We’re excited about where Servion is headed as it adds more marquee clients, expands rapidly, adds new technology platforms to help its clients engage their customers more efficiently, and strengthens its talent pool.

We will continue to partner strongly with Servion to help it realise its global goals,” added Dhawan.

Servion has been recently recognized by Ovum, a market-leading research and consulting firm, in its On the Radar report for having “assembled a robust set of technologies rooted in the contact
center, but (which) can integrate with customer touchpoints and across the enterprise to help clients create a seamless customer journey and enterprise workflow”.

Servion also recently introduced ServCloud, its multichannel contact center-as-a-service solution with advanced reporting and predictive analytics, in the US market.

About Servion
Servion enables business transformation for enterprises in the area of customer experience management (CEM). Over the past two decades, Servion has evolved from being a single channel (voice) interaction expert to being an industry pioneer in omnichannel customer experience. Servion manages over 10 billion customer interactions annually across 60 countries, in six
continents. Servion’s CX experts based in the US, UK, UAE, Singapore, and India deliver measurable outcomes through consulting, advanced technologies and industry-specific IP platforms. For more information on Servion Global Solutions, please visit: www.servion.com

About Everstone Group
The Everstone Group is a premier India and Southeast Asia focused private equity and real estate investment firm with assets under management of approximately US $4 billion. Everstone has around 200 people working across six offices—Singapore, Mumbai, Delhi, Bengaluru, Mauritius and London. The firm’s strong presence and network in India and Southeast Asia allows its existing and new portfolio businesses to build operations in the region and beyond. Everstone has been awarded ‘Mid-Market Firm of the Year in Asia’ for 2016, as well as ‘Private Equity Firm of the Year in India’ by Private Equity International for six consecutive years from 2011 to 2016.

For more information, visit www.everstonecapital.com

LinkedIn

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Everstone Group Co-Founder and Managing Partner Sameer Sain talks on the Big Deal show in an exclusive interview on CNBC TV18

Everstone Group Co-Founder and Managing Partner Sameer Sain talks on the Big Deal show in an exclusive interview on CNBC TV18.

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Canada Pension Plan Investment Board and IndoSpace Form Joint Venture ‘IndoSpace Core’

Key Highlights:

  • Canada Pension Plan Investment Board (CPPIB) and IndoSpace form IndoSpace Core, a joint venture that will focus on acquiring modern logistics facilities in India.
  • CPPIB has initially committed approximately US$500 million to the joint venture and will own a significant majority stake.
  • IndoSpace Core has committed to acquire 13 well-located industrial and logistics parks totalling approximately 14 million square feet, from current IndoSpace development funds
  • The venture also has the option to acquire an existing pipeline worth approximately US$700 million as well as participate in a future development pipeline.

 

Toronto, Canada/Mumbai, India – May 15, 2017: Canada Pension Plan Investment Board (CPPIB) and IndoSpace, India’s largest developer of modern industrial and logistics real estate, today announced the creation of IndoSpace Core, a joint venture that will focus on acquiring and developing modern logistics facilities in India. CPPIB has initially committed approximately US$500 million to the joint venture and will own a significant majority stake. IndoSpace Capital Asia will manage the new entity.

IndoSpace Core has committed to acquire 13 well-located industrial and logistics parks totalling approximately 14 million square feet, from current IndoSpace development funds. The joint venture will acquire the first nine facilities totalling approximately nine million square feet at closing, and the additional facilities within 24 months. The assets are prime industrial properties located in the top industrial and logistics hubs in India, including Chennai, Pune, Mumbai, Delhi and Bangalore.

Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPPIB, said, “The strong fundamentals underlying the Indian manufacturing and retail sectors and growth in e-commerce, combined with the low stock of high-quality modern industrial real estate in the country, make this a compelling investment opportunity for a long-term investor like CPPIB. This joint venture gives us immediate scale and access to a significant development pipeline in a rapidly growing sector. IndoSpace is the leading industrial platform in India and we look forward to building a long-term partnership with IndoSpace and its sponsors through this joint venture.”

IndoSpace Core has the option to acquire additional industrial and logistics parks totalling approximately 11 million square feet, which are currently being developed by IndoSpace funds and are worth approximately US$700 million. IndoSpace Core will also opportunistically acquire stabilized assets from third parties across India.

Sameer Sain, Co-Founder and Managing Partner, Everstone Group, said, “As the leading owner and developer of logistics and industrial spaces in India, IndoSpace is excited to partner with CPPIB, one of the premier owners of industrial real estate globally. The combination of our expertise and a strong macro backdrop, including Make in India, the GST rollout and growth in e-commerce, will provide significant opportunities for this joint venture.”

About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2016, the CPP Fund totalled C$298.1 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn or Twitter.

About IndoSpace
IndoSpace (www.indospace.in) is the pioneer and largest provider of modern industrial and logistics real estate in India and currently has 21 industrial and logistics parks across India. It is a joint venture between the Everstone Group (www.everstonecapital.com) and Realterm (www.Realterm.com). The Everstone Group is a premier India and South East Asia focused private equity and real estate firm. Realterm is a multi-strategy private equity real estate operator whose industrial platforms, Realterm Logistics and Aeroterm, are industry leaders with over 300 operating and development properties in North America, Europe and India.

For more information:

Canada Pension Plan Investment Board
Dan Madge
Senior Manager, Media Relations
T: +1 416 868 8629
dmadge@cppib.com

Mei Mavin
Director, Corporate Communications
T: +1 646 564 4920
mmavin@cppib.com

IndoSpace
Kamil Zaheer
Executive Director, Corporate Communications
Everstone Group
T: +91 98115 38880
kzaheer@everstonecapital.com

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