Business mergers and Acquisition, LT - Current Affairs Questions and Answers

ANSWER: Anil Manibhai Naik

Explanation:
BoD of Larsen & Toubro on April 7, 2017 elevated SN Subrahmanyan as CEO and MD from the post of Deputy MD and President of the company.

Anil Manibhai Naik was appointed the non-executive chairman w.e.f Oct 1, 2017 for 3 years.

Subrahmanyan will take charge as CEO on July 1, 2017.

Naik, or AMN as he is popularly called, had given himself five-year extension in 2012 to restructure the complex businesses, focus on core business, exit non-core businesses and find his successor.

His current term as group executive chairman ends on September 30, 2017.

Naik was asked by BOD to provide advice, guidance and mentorship to the company’s executive management in the capacity of non-executive chairman, according to a company statement.

Naik has acceded to the Board’s request after working with L&T for over 52 years.

L&T: Know More

• Headquarters: Mumbai
• Key Subsidiaries: Larsen & Toubro Infotech, L & T Mutual Fund
• Founders: Søren Kristian Toubro, Henning Holck-Larsen

ANSWER: SN Subrahmanyan

Explanation:
Deputy Managing Director and President, Larsen & Toubro, SN Subrahmanyan will take over as chairman of the USD 16 billion engineering and construction powerhouse from AM Naik.

• Naik introduced Subrahmanyam as his successor at the company’s 71st AGM
• Naik has been with L&T for over 50 years now
• Company is expecting to double its revenue to INR 2 lakh crore by 2021 based on India’s success story
• India is currently at the cusp of a turnaround. All indicators are positive as the projected GDP growth rate is 7.4 percent in 2016-2017
• India is the fastest growing large economy in the world
• Government’s thrust on infrastructure and its Make in India initiatives will fuel growth
• The company is banking on the defence sector
• It is expected the defence sector will generate business opportunities worth INR 13 lakh crores over the next 10 years.
• With the resolution of the issues pertaining to fuel supply and clearer understanding on nuclear liability issues, Nuclear power sector is expected to grow over the next 10 years to INR 50,000 crore.
• L&T plans to make missiles one day, Naik said.

ANSWER: Nagpur

Explanation:
Larsen & Toubro has been identified as the implementation partner to convert Orange City of Nagpur into the nation’s first large scale integrated Smart City as per Letter of Intent handed over by Maharashtra CM Devendra Fadnavis to representatives of the company

• The modifications will be leveraged to cover the tire city and following Jaipur, this is a positive step for L&T.
• Markets have reacted favourably to the announcement with Larsen & Toubro trading up INR 7.95 or 0.53 percent from its previous closing.

ANSWER: L&T

Explanation:
IT department has signed a contract with L&T Infotech for implementing Project Insight to strengthen non intrusive information driven approach for improving tax compliance.

• The project will be rolled out in three phases and the first phase platform is expected to of live from May 2017
• Integrated platform will play a key role in widening tax base and data mining to track tax evaders.

ANSWER: None of the above

Explanation:
NYSE listed technology firm Synnex Corporation has acquired Bengaluru based BPO firm Minacs for USD 420 million in a deal underlining consolidation in the business process management space.

• Buyout also showcases the efforts in the BPM sector to gravitate towards higher end services and capabilities like analytics
• PE firms CX Partners and Capital Square Partners which purchased Minaca from the Aditya Birla Group are exiting the firm.
• This acquisition is Synnex’s second biggest in India.
• In 2013, it had acquired BPO firm IBM Daksh for USD 505 million.

ANSWER: Forever 21

Explanation:
Kumar Mangalam Birla led Aditya Birla Fashion and Retail has acquired Indian business of international clothing brand “Forever 21” from Diana Retail Pvt Ltd, the US based company’s local franchise partner for over INR 175 crore or USD 26 million.

• Transaction involved acquisition of the Forever 21 Undertaking of Diana Retail from July 1 through business transfer agreement and not share transfer.
• Consideration for acquisition is USD 26 million
• Forever 21 will form part of the Madura Fashion & Lifestyle division
• Forever 21 is among the fastest growing fashion retailers in the world with a network of more than 700 stores worldwide.

ANSWER: HelloTech

Explanation:
Los Angeles-based startup HelloTech and rival in-home tech support company Geekatoo said that they had merged, in a sign of consolidation in the hotly competitive on-demand sector.

• HelloTech will combine its network of about 150 college students who provide on-demand tech repair to Southern California consumers with Geekatoo's US network of about 5,000 technicians, the companies said in a joint statement.
• The merger connects HelloTech with Geekatoo's national market and provides Geekatoo with more access to venture capital funding, HelloTech co-founder Richard Wolpert said in an interview.
• HelloTech, which launched about a year ago, has raised $17 million from investors, while 5-year-old Geekatoo has raised close to $3 million.

ANSWER: Knowlarity Communications

Explanation:
Cloud telephony company Knowlarity Communications on May 9th 2016 acquired Delhi based Smartwards, a customer engagement platform that simplifies loyalty for local businesses and their consumers

• As per the statement, Shantanu Mathur and Dhanraj Singh Bisht- co founders of Smartwards will lead the Indian operations for Knowlarity
• Smartwards started operation in 2013

ANSWER: Volob Technologies

Explanation:
GirnarSoft, the parent company of auto classifieds portal CarDekho.com, has acquired virtual reality startup Volob Technologies in an all-cash deal, the company announced on May 3rd.

• This is the eight such transaction entered into by GirnarSoft, which has emerged as one of the most active players in the Indian startup M&A leaderboard over the past 18 months, and comes less than a week after it announced its acquisition of SaaS startup Connecto.
• Founded in 2010 by Tarun Kumar and Shweta Jain, Volob Technologies provides 3D visualisation solutions to various industries, primarily automotive, according to a company-issued statement.

ANSWER: Hitachi

Explanation:
The partnership is to provide joint services to global clients and the market. Part of the collaboration involves joint provision of value to clients by Hitachi and Virtusa through increase in operational and technology efficiency and enhancing functionality

• Hitachi provides IT solutions through combination of various products and services internationally.
• Both firms have been working together since 2015.