Dear Madam or Sir,

Besides reporting on European projects, today’s JP Director’s Report also looks at another focus of interest - India. Indian investors are looking for European target companies, primarily in sectors such as Automotive, Engineering Services, IT, etc. But not only that: Companies in India require further funds for their rapid growth, and are seeking European transferees or investment partners. Sectors of particular interest include the tourism industry, the dairy industry or even service providers. Indian SME’s in particular are driving income growth in these industries.

At 8.8 percent, the Indian economy in June, Q2 2010, grew as so strongly as that of any European nation. During the financial crisis, India benefited from its huge domestic market, as well as its low level of dependence on exports. As even China recently suffered from the deteriorating world economy, this has brought India’s growth ever closer to that of its major rival. India has become a pillar of stability in Asia. And there is a good chance that it will further expand this role. Bottom line: economic risk in India is currently lower than in China and Japan.

Business is primarily expanding in consumer durables. Industry is working to expand capacity. Car manufacturers such as Maruti Suzuki, Hyundai and VW have month-long delivery waiting periods, because their suppliers are unable to keep up with production.
And there is no cooling off in sight – quite the opposite. Several further factors indicate that India’s domestic demand will continue to grow. Agriculture this year benefited from a very good monsoon, and the government predicts a bumper harvest. This will reduce inflation and provide higher income for the rural population. 60 percent of India’s 1.2 billion people live in rural areas. If they are in a position to spend more, this will give economic growth a major boost. To this must be added the huge demand for investment in the crumbling infrastructure as well as pressure to expand capacity facing many companies. And finally, rising wages will fuel domestic demand.

Indian investors in Europe are primarily targeting acquisition benefits, such as indirect access through the target company to leading developed nation customers (EADS, Siemens, Daimler, Porsche, etc.), access to advanced technologies or the optimisation of yield through the use of the respective location advantages. A good deal for both sides – European and Indian companies.

We wish you every success in seizing these opportunities. The current economic recovery will mainly benefit those companies which can think and act beyond their limitations.

Best Regards

Heinz Jäger
- CEO -

IT/Comunication/Engineering Services

Leading software company in the financial service industry wants to acquire manufacturer of banking application software; minimum size of the target: Turnover of 15 m € or more; project no. 156425

East European Distributor IT&C is searching for a buyer of up to 100 % of the shares; turnover over 100 m €; market leader with a share of 25 % in a country with high growth rates; products: systems, components, imaging, software, networking, printing, peripherals etc.; warehouse over 5,000 sqm; project no. 155949

Indian Company (revenue 250 m €) offers following services: Design & engineering, product life cycle management, product development IT; the company wants to acquire engineering service firms in Europe; acquisition criteria: Expertise: Design & engineering, sector: Automotive, aeronautics, space; expertise: Offshore development centres, sector: IT; investment size: Minimum 20 m € and preferably 10 % profit margins; project no. 71794-C  

German investment company wants to takeover medium-sized software companies in Germany, Austria and Switzerland; the target could be in a transition phase (e.g. succession of ownership etc.); revenue of the target: 3 – 15 m €; focus: ERP, BI, PLM, CRM, HR und SCM; projekt no. 156451

Automotive

Leading German Manufacturer in the automotive aftermarket with a high export share, a worldwide strong brand and focussed mainly on car infotainment wants to acquire companies in the growth sectors electronics, car supplier and assembly solutions; minimum turnover of 20 m €; the buyer has an investment budget of 125 m €; project no. 60260

Indian Automotive Supplier seeks acquisition in electronics related to automotive sector; Options: R&D house – electronics or OEM supplier for electronics with in-house R&D; requirement is in the field of electronics products / systems supply for automobile; involved in design and manufacturing of hardware, software and embedded; preferable product range: Tyre pressure monitoring system, body control modules, ECU for fuel injection system etc.; size of the company: If it is R&D House - turnover of 4 m € plus or if it is design-cum-manufacturing facility - turnover of 15 m €; project no. 71794-A

Indian Automotive Component Manufacturer is interested in acquisition; revenue around 100 m €; interested product areas: VH (noise, vibration & harness); medium & small motors; bumpers, fenders, door panels and door trims; GPS/navigation; window regulator; availability of long-term OEM customers; availability of technological / design / engineering skills; the target company should be a market share leader/technology leader; company under cost pressure, possibility of transferring lower end work to a lower cost region, may be even facing financial difficulties; project no. 71794-B

European Manufacturer of car accessories for sports cars, motorbikes etc. is searching for an acquirer; turnover more than 50 m €; one of the leading brand names in the automotive aftermarket; worldwide distribution; enormous growth potential; high EBIT-margin; project no. 59935

Logistics

Central European logistics operator is looking for forwarding or logistics operator throughout Europe; investment criteria: turnover should be 10 – 50 m €, low assets or preferably non-assets based business model (contracted fleet, rented warehouses), strong and young management team, positive EBITDA, diversified customers portfolio; project no. 156440

One of the largest and most successful Serbian logistics to financial services Group of companies established in 1990 is rapidly growing its logistics and distribution business, from 4,3 m € revenue in 2010 to 20 m € revenue in 2011 on the basis of signed long term contracts with large local and international companies such as L’Oreal, Tommy Hilfiger, Fila, Krones, Siemens, Pioneer, Danube Food Group etc; in order to fund business expansion, they intend to raise finance by selling equity interests to a trade or financial investor; project no. 78625

British logistics company located in London seeks a buyer; turnover: 4 m €; the company provides a wide range of multi-modal freight forwarding and transport services; the service portfolio includes: competitive FCL and LCL freight rates, international road transportation, UK haulage & distribution, bonded depot facilities, customs duty clearance and consultancy; the shareholder of the company decided to sell 100 % of the shares including the real estate assets; project no. 95501

Travel

Independent Indian travel company is looking for a partner (minority stake or up to 100 % of the shares); revenue: 300 m €; main business fields: Conferences & incentive management, foreign exchange services, outbound holidays, Indian holidays, adventures and travel insurance; marketing and sales offices in USA, Argentinia and Europe; the management has an excellent reputation; project no. 156032-A

Indian travel firm seeks an investor; majority stake possible; turnover: 14 m €; profit margin: 8 %; 100 employees; focus: outbound and domestic business; clients: retail & corporate business; locations: 9 branches and 25 franchise; awarded as No. 1 tour operator e. g. by BBC, Ernst & Young and other prestigious awards; project no. 156032-B

Food

Manufacturer of diary products from India is searching for a partner for a majority position; revenue 120 m €; PBT 5 %, main products: Milk, milk oil, skimmed milk powder, full cream milk powder, diary whitener, butter milk powder, milk powder blends; capacity: More than 2 m litres per day; the company has a strong procurement network of more than 150,000 farmers across 120 chilling centres; pan India network of distributors; exports to 33 countries; project no. 156032-C

Strong German manufacturer of organic food (baby food, juices, fruits and vegetables tins, bakery products, pasta, convenience food, etc.) looks for acquisition chances in Europe; majority stakes up to 100 % would be preferred; project no. 84951

Producer of frozen food (vegetables, fish, poultry etc.) wants to expand its business by purchasing companies in the field of frozen poultry; project no. 79123

Western European brewery will continue to expand further and is looking for acquisitions in the field of beer and mineral water in whole Europe; project no. 50474