Author Archive for Atish

Omnivore Capital (OC): Weekly Office Hours [via Skype]

Subhadeep and I are starting weekly office hours online via Skype video conference calls (one or both of us will attend every week). Any entrepreneur or startup that is interested in agriculture and rural India can sign up for the office hour slots. You don’t have to pitch us – you can just ask us for feedback on ideas or thoughts on something within our area of knowledge. Our goal in doing this is to share our knowledge with a broader audience and to help people flesh out ideas and opportunities. Typically we only meet people when they (think they are) ready to pitch us for an investment. We would much rather get involved with dedicated entrepreneurs much earlier in the process. Also, we have some ideas we would love people to pursue and if we met someone with the right experiences/background would be more than happy to share those ideas with people.

Our office ours will occur weekly on Friday’s 5pm to 7pm IST via Skype. To sign up for office hours this week, just click here

We will announce signups for office hours a few days in advance each week. To be notified of our office hours, you can either subscribe to our blog or follow our twitter feed

Atish Babu Office Hours

Sorry for the short notice. Did not expect to have office hours this week, but had a few hours open tonight and decided to schedule it at the last moment. Let’s meet! Just posted new @Ohours for Sun, May 08 http://ohr.me/lDhZul

Omnivore Capital: Atish Babu Office Hours

I will be holding office hours this Sat Apr 30 from 7:30pm IST / 10am EDT / 7am PDT for two hours.

Each slot is 15 minutes long, and will occur over video (so please have a webcam if you sign up for a slot).

To sign up for a time slot, please visit http://ohr.me/kybU0j

Especially hoping student and young entrepreneurs sign up for office hours.

Event Announcement: HBS India Conference

Date: Friday January 26, 2007 3pm – 8pm

Location: Harvard Business School, Soldiers Field, Boston, MA 02163 USA

For more info visit: http://www.hbsindiaconference.com/index.htm

Panel Info:
VENTURE CAPITAL/PRIVATE EQUITY – THE INDIAN CAPITAL MARKETS
ENTREPRENEURSHIP – START-UP SUCCESSES IN EMERGING MARKETS
INDIAN GIANTS – INDIAN FIRMS GOING GLOBAL
SOCIAL ENTERPRISE IN INDIA – STORIES OF INSPIRATION AND INNOVATION
US INDIA RELATIONS: STRATEGIC AND ECONOMIC IMPLICATIONS

MIT Sloan Entrepreneurship Resources

Alok’s prior post about quality startup analysis got me thinking about what resources are available to help guide entrepreneurs. MIT (full disclosure, MIT is my alma mater) has posted the material for several of its courses online. The material for a few of the entrepreneurship classes are posted at http://ocw.mit.edu/OcwWeb/Sloan-School-of-Management/index.htm

Hope people find the information there useful

Atish Babu
Student
Harvard Business School
atish.babu@gmail.com

Dubai Ports and Indian Companies Expanding in the West

Summary:
Indian companies will be able to make significant acquisitions in the US and Western Europe despite the collapse of the Dubai ports deal. Two factors will influence cross border Indian M&A: 1) Industry of Acquisition Target; 2) Mittals’ Handling of the Arcelor situation

Introduction:
Since the collapse of the Dubai Ports deal (http://en.wikipedia.org/wiki/Dubai_Ports_World_controversy), many people have asked me whether I believe Indian companies will be able to make large (+$1 billion) in the United States and Western Europe and when we will see the first Indian acquisition of a US company for more than $1 billion. While I believe protectionism will increase in the West over the coming years, I don’t believe it will be able to stop the expansion of Middle Eastern and Indian companies in the West. In my estimation, we have already seen a billion USD transaction by an Indian company – Mittal Steel’s acquisition of the US based International Steel Group for $4.5 billion. By the end of 2008, I believe we will see an additional two such acquisitions. Cross-border M&A, over the next several years, will be shaped by the industry of acquisition targets and how the Mittals handle their unsolicited bid for Arcelor.

Industry of Acquisition Target:
The US and Western Europe do not want Indian firms to control companies in the security, infrastructure, and natural resource sectors. Many business leaders in South Asia and the West are concerned over growing protectionism sentiment and politicians using that sentiment for partisan gains. Duabi Ports revealed that US politicians will thwart acquisitions by Middle Eastern (ME) and Indian companies in certain industries. However, Chinese companies have faced both sides of this issue before. CNOOC, a Chinese oil company, went through a similar situation to the Dubai Ports Deal when it attempted to acquire Chevron. At the same time, Lenovo was able to acquire the computer division from IBM. These Chinese acquisitions demonstrate that US politicians and the public will tolerate acquisitions where foreign entities won’t control US security, infrastructure, and natural resource assets. Indian I&T and pharma companies will be able to undertake large US acquisitions the next few years.

Mittals’ Handling of the Arcelor situation:
Another catalyst to cross-border M&A will be how the Mittals handle their unsolicited bid for Arcelor. Right now, Lakshmi and Aditya Mittal have the opportunity to do more to open the gates for Indian M&A in US and Europe than any other factor. They have the opportunity to change opinions, in Western markets, about the ability of Indian companies to execute mergers and acquisitions.

In the 1990′s and the early part of this decade, Indian companies developed a bad reputation in Western M&A circles. Since cross-border M&A was new for many Indian companies during this time, Indian business leaders focused on learning. They went around meeting many bankers and acquisition targets without many deals ever coming to fruition. The perception is that Indian companies have not developed the internal resources or knowledge to execute mergers and acquisitions. As a result, US bankers and companies believe that Indian companies are slow to get deals done and that they will waste a great deal of time looking at many companies and asking for non-critical information. I have seen a marked shift by Indian companies; they have created dedicated M&A teams and brought in individuals with more experience executing deals. When US bankers or companies hear about interest by Indian companies, there is part of them that sarcastically thinks, “Here we go again.” They were left with a bad taste in their mouth from their dealings with Indian companies in the late 1990′s, when they wasted a great deal of time with Indian companies without anything coming of it. But the Mittals may open the door enough for the new corporate M&A teams at Indian companies to rewrite that perception.

The Mittals bid for Arcelor is important for two reasons. First, it served as a wake up call to Western markets. Historically, cross-border acquistions by Indian companies have been less than $100 million, with a few exceptions. As such, Indian companies didn’t garner much attention from Western M&A circles as many bankers and business leaders thought of Indian companies were off to the side. Mittal’s unsolicited offer for Arcelor was a wake up call for Western markets because it signaled that Indian companies now had the appetite and ability to be a major force in large M&A deals. Second, the Mittal-Arcelor situation has shown the world that Indian or Indian-led companies have now developed internal M&A teams that are sophisticated enough and have the knowledge to work through complex cross-border deals issues, such as poison pills and political maneuvering. The Mittals will open windows in the US and Western Europe just enough for bankers and companies to engage with interested Indian parties. When that happens, they will be surprised to see the progression by Indian companies to develop internal M&A teams with the requisite knowledge and sophistication to get large deals done.

- Atish Babu (atish.babu@gmail.com)