Final Internship Report

IBS MUMBAI SANKET JAIN – 13BSP0708
A REPORT
ON
RESEARCH ON CONSUMER AND

HEALTHCARE SECTOR
By
Sanket Jain
Enrollment No. 13BSP0708

A REPORT
ON
RESEARCH ON CONSUMER AND

HEALTHCARE SECTOR
By
Sanket Jain
Enrollment No. 13BSP0708
Equirus Capital Private Limited
A report submitted in partial fulfilment of the requirements of

PGPM Program of
IBS MUMBAI
Distribution List:
Sr. Name Description Designation Company
1. Prof.SarikaRachuri Faculty Guide Professor IBS Mumbai

Equirus Capital
2. Mr.Varun Bhatia Company Guide Vice Presient
Private Limited
Date of Submission: 30thMay, 2014

ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to Mr.
Ajay Garg, Managing Director of Equirus Capital Private Limited for giving me the
golden opportunity to work with his prestigious organization.
I would like to express my gratitude to Mr. Abhijeet Dhar, Director of Equirus

Capital Private Limited and Mr. Varun Bhatia, Vice President of Equirus Capital Private
Limited for their cordial support, valuable information and guidance, which helped me
in performing my assignment and project at various stages of my Summer Internship
Program.
I am deeply indebted to Prof. Sarika Rachuri for her exemplary guidance,

monitoring and constant encouragement. The blessing, help and guidance given by her
time to time shall carry me a long way in the journey of life.
I am obliged to employees of Equirus Capital Private Limited, for the valuable

information provided by them in their respective fields. I am grateful for their
cooperation and support.
Lastly, I thank almighty, my family and friends for their constant encouragement
without which this assignment would not be possible.
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TABLE OF CONTENTS
ACKNOWLEDGEMENT i
EXECUTIVE SUMMARY ii
1 INTRODUCTION 1
1.1 PURPOSE AND SCOPE OF THE REPORT 1
1.2 OBJECTIVES 2
1.2.1 Primary Objective 2
1.2.2 Secondary Objective 2
1.3 LIMITATIONS OF THE STUDY 2
1.4 COMPANY PROFILE 3
1.4.1 A summary of highlights: 4
1.5 INSDUTRY ANALYSIS 5
1.5.1 Top Investment banks in india 6
1.6 SWOT ANALYSIS OF INVESTMENT BANKING INDUSTRY 7
1.7 PORTER’S 5 FORCES ANALYSIS OF INVESTMENT BANKING INDUSTRY 8
1.8 METHODOLOGY 10
1.9 SIP OVERVIEW 11
2 OVERVIEW OF INVESTMENT BANKING 12
2.1 MEANING 12
2.2 THE SELL SIDE AND BUY SIDE 13
2.3 SERVICES OFFERRED BY INVESTMENT BANKING FIRM 13
2.4 ROLES WITHIN AN INVESTMENT BANK 15
2.5 MERCHANT BANKING and INVESTMENT BANKING 17
2.6 EVOLUTION OF INVESTMENT BANKING IN INDIA 19
2.7 COMMERCIAL BANKS V/S INVESTMENT BANKS 21
3 ACTIVITIES OF INVESTMENT BANKS 23
3.1 EQUITY CAPITAL MARKETS 23
3.2 DEBT CAPITAL MARKETS 23
3.3 ADVISORY AND M&A 24
3.4 CORPORATE FINANCE 24
3.5 SALES & TRADING, RESEARCH AND SUPPORTING ACTIVITIES 25

3.6 STRUCTURED FINANCE 25
3.7 EXPORT FINANCE 25
3.8 PROJECT FINANCE 26
3.9 ASSET / WEALTH MANAGEMENT 26
3.10 MERCHANT BANKING (PRIVATE EQUITY) 26
3.11 INDUSTRIAL LENDING 26
3.12 OTHER ACTIVITIES 27
4 DETAILS OF ASSIGNMENT 27
4.1 SODIUM SILICATE 28
4.1.1 Basic Information about the chemical 28
4.1.2 Application (uses of sodium silicate) 29
4.1.3 List of companies manufacturing sodium silicate (globally) 29
4.1.4 List of companies manufacturing sodium silicate in India 29
4.1.5 Average price of sodium silicate 29
4.1.6 Feasibility report 29
4.2 EXPRESS LOGISTICS INDUSTRY 31
4.2.1 Facts about Indian Express Logistics Industry 31
4.2.2 Recommendations on the basis of Research 32
4.3 FOOD PROCESSING INDUSTRY, FOOD & BEVERAGE INDUSTRY AND
FMCG (NON-FOOD) INDUSTRY 33
4.4 HEALTHCARE SPACE 35
4.5 Quick Service Restaurant Industry (QSR) 38
4.5.1 Types of Restaurants 38
4.5.2 QSR Industry: Global Overview 40
4.5.3 Top Global Players in QSR Industry 40
4.5.4 Facts About QSR 40
4.5.5 Number of Locations of Major Players 41
4.5.1 Valuation Matrix 41
4.6 INDIAN QSR INDUSTRY 44
4.6.1 Reasons for Rise In Demand Of QSR 45
4.6.2 Market Share of Indian and Foreign Brands in Indian QSR Industry 45
4.6.3 Store Counts 46
4.6.4 Break up of Indian QSR Industry Market Share 46

4.6.5 Number of Outlets (Annual Growth) 47
4.6.6 Growth in Indian QSR Industry 47
4.6.7 Challenges Faced By QSR In India 49
4.6.8 Need Gaps (Recommendations) 49
4.7 ANALYSIS ON TYPICAL APC, AVERAGE AREA, FOOTFALLS PER DAY
AND USD/SQ.FT. OR RS./SQ. FT. (MONTHLY) 50
4.8 PRIVATE EQUITY FUNDS 51
5 CONCLUSION 54
6 GLOSSARY 55
EXECUTIVE SUMMARY
Internship plays is an important component as it helps to get exposure to the
corporate world and work with industry experts. My name is Sanket Suresh Jain,
Enrolment No. 13BSP0708. I am pursuing PGPM course from one of the best B schools
of India i.e. IBS Mumbai.
The Internship was offered for a period of 14 weeks starting from 25th February
till 30th March in Equirus Capital Private Limited, on the 4th Floor of A Wing, Fortune
2000, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051. Equirus Capital Private
Limited is a prestigious Investment Banking firm providing a wide range of services to
its clients.
The Title for the internship was research on consumer and health care industry.
The main objective was to carry out various assignments given by the company guide.
The main goal was to find companies whom we can approach for investment
opportunities.
The internship emphasized on in-depth research on various companies in

consumer and healthcare industry and keeping daily check on the current happenings in
these industries. It involved analysing various players in the consumer and healthcare
sector, understanding their working, understanding their products & services and
analysing their financial needs for expansion or any other purpose. The data collected
is then used to make further analysis on the company for business opportunities.
The profile given to me for internship in Equirus Capital Private Limited has
helped me gain immense knowledge and experience in the consumer and healthcare
industry in India and globe. It also gave me an opportunity to work with experienced
and knowledgeable people and experts. The assignments carried out during internship
were on various sectors in the healthcare space, quick service restaurant industry and
portfolio companies of private equity fund.
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1 INTRODUCTION
Internship is an important component of education as it bridges the gap between

theory and practice in the corporate world. Internship has given me exposure to real-life
situations, which cannot be simulated in the classroom. It has helped me to understand
various aspects of the industry which will be beneficial at various stages of my career
and also will provide guidance for my future on the job performances.
The assignments done during the internship tenure has helped me gain
knowledge about various sectors. The work done can be broadly classified in two
categories:
 Research Focused
 Data Analysis
Both, research and analysis, has helped me understand how to analysis a

company and has helped me understand the working of an investment banking firm.
1.1 PURPOSE AND SCOPE OF THE REPORT

The Internship Report gives a brief of the various assignments carried out by me
during the SIP tenure. It gives an outlook of the work done by me while working with
the industry experts in Equirus Capital Private Limited.
The profile given to me for internship in Equirus Capital Private Limited has
helped me gain immense knowledge and experience on the consumer and healthcare
industry in India and globe. It has also given me an opportunity to work with
experienced and knowledgeable people and experts
This report is also submitted in partial fulfilment of the requirements of PGPM

program of one of the most reputed Management School of India, IBS Mumbai.
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1.2 OBJECTIVES
The main objective of my internship at Equirus Capital Private limited is to

analyse various players in the consumer and healthcare sector and find certain
companies who can be approached for investment. The objective can be categorized
into primary objective and secondary objective.
1.2.1 Primary Objective
 To understand the current scenario of the industry

 To enlist various attributes for the research
 To analyse the companies which look attractive for investment purpose
1.2.2 Secondary Objective
 Practical understanding of working of Investment Banking firms

 Optimum utilization of this opportunity to learn as much as possible
 To suggest various companies to the company guide to approach
 To keep daily track of the happenings in the industry
 Successful completion of the project
1.3 LIMITATIONS OF THE STUDY
 Vast data to be analysed

 Time consuming process
 Lack of proper information available on internet
 Due to time constraint some important segments might have been missed
 Lack of appropriate technique and procedure
 Lack of resource
 Lack of data
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1.4 COMPANY PROFILE
The Banyan Tree philosophy: The Banyan Tree was chosen as the symbol for
Equirus to convey the intent of building an entrepreneurial organization where the
various branches take roots, and become indistinguishable from the founding trunk.
With that philosophy, we have seen that the tree is able to survive for hundreds of years.
It also intends to capture the strength and shelter provided by the banyan tree to its
surrounding eco-system.
Equirus Capital (P) Limited is a very reputed firm in the field of investment
banking. The company provides various services to their clients. The services offered
by Equirus Capital Private Limited include Private Equity Advisory, Mergers and
Acquisitions, Structured Finance, Capital Markets and Institutional Equities.
VISION
To be the most preferred investment bank through Focus, Innovation and Trust.
VALUES
The values we adhere to, towards achieving our vision are:
 Client interest is paramount
 Innovation
 Transparency in dealings
 Excellence in execution
 Team Spirit
 Passion
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Equirus Capital (P) Limited is a very reputed firm in the field of investment
banking. The company provides various services to their clients. The services offered
by Equirus Capital Private Limited include Private Equity Advisory, Mergers and
Acquisitions, Structured Finance, Capital Markets and Institutional Equities.
Equirus (pronounced ek-wi-rus) was coined to convey the commitment to

financial markets and stands for the idea 'Equities are us'.
Equirus Capital, a full service investment banks backed by prominent investors,

was founded in July 2007 by a passionate group of seasoned professionals with the
intent of providing best-in-class investment banking & related advisory services for
Indian Corporates.
Over the last 6 years, Equirus has built impeccable credentials and market
standing across domains & has created a niche for itself in its ability to structure and
deliver transactions in-line with client requirements. Over 73 successful transactions
across capital raising, M&A and repeat business with marquee clients stands testimony
to our capabilities.
1.4.1 A summary of highlights:
 Teams in Mumbai and Ahmedabad

 Closed multiple transactions across various sectors
 Category I Merchant Banker registered with Securities and Exchange
Board of India (SEBI)
 Commenced Institutional Equities & Research in January 2010 with
Bhavin Shah as CEO
 Member of NSE, BSE
 Exclusive India partners of Clairfield an international network of
investment banks
 Partners present in 18 countries with over 250+ investment bankers
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1.5 INSDUTRY ANALYSIS
An investment bank is a financial institution that assists individuals,

corporations, and governments in raising capital by underwriting or acting as the client's
agent in the issuance of securities (or both). An investment bank may also assist
companies involved in mergers and acquisitions and provide ancillary services such as
market making, trading of derivatives and equity securities, and FICC services (fixed
income instruments, currencies, and commodities). Unlike commercial banks and retail
banks, investment banks do not take deposits.
The major work of investment banks includes a lot of consulting. For instance,
they offer advices on mergers and acquisitions to companies. The other arena where
they give advice are tracking the market and determining when should a company come
out with a public offering and what is the best possible way to manage the public assets
of businesses. The role that an investment bank plays sometimes gets overlapped with
that of a private brokerage house. The usual advice of buying and selling is also given
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by investment banks. There is no demarcating line between the investment banking and
other forms of banking in India. This has been observed majorly of late. All banks
nowadays want to provide their customers the best of services and create a niche for
themselves and that is why apart from investment banks, all other banks too are aiming
at making it big. At the macro level, investment banking is related with the primary
function of assisting the capital market in its function of capital intermediation, i.e., the
movement of financial resources from those who have them (the investors), to those
who need to make use of them for producing GDP (the issuers). Over the decades,
investment banks have always suited the needs of the finance community and thus
become one of the most vibrant and exciting segment of financial services. Globally
investment banks handle significant fund-based business of their own in the capital
market along with their non-fund service portfolio which is offered to the clients. All
these activities are broadly segmented across three platforms - equity market activity,
debt market activity and merger and acquisitions (M&A) activity. In addition, given the
structure of the market, there is also a segmentation based on whether a particular
investment bank belongs to a banking parent or is a stand-alone pure investment bank
1.5.1 Top Investment banks in india
 Citi Bank
 J. P. Morgan
 Credit Suisse A.G.
 Deutsche Bank
 Barclays Capital
 Kotak Mahindra Bank Limited
 Yes Bank Limited
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1.6 SWOT ANALYSIS OF INVESTMENT BANKING INDUSTRY

SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
Strength and Weakness involves analysis of the internal factors which affects the working
of a Company. Opportunities and Threat involves analysis of the external factors which
affects the working of a Company.
STRENGTHS:
 Strong management
 Cost advantages
 Economies of scale
 Customized services
 Brand name
 Technology
WEAKNESSES:
 Low market share
 Difficult to reach enough potential consumers
 Outdated Technology
 Lack of co-ordination
 Project execution to be improved
 Lack of Scale
OPPORTUNITIES
 Emerging markets and expansions
 Innovation
 New Technology
 New Services
 International expansion
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THREATS
 Economic slowdown
 Intense competition
 Political risk
 Government regulations
 Substitutes
1.7 PORTER’S 5 FORCES ANALYSIS OF INVESTMENT

BANKING INDUSTRY
Porter five forces analysis is a framework for industry analysis and business
strategy development. The Porter’s five forces analysis of Investment Banking Industry
is as follows:
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Threat of new entrants: New competitors are often drawn to an industry

because of the opportunity to make profits. When new competitors enter markets, they
become rivals to existing market participants, which tends to lower the profitability of
all market participants. Investment banking being a growing sector has a lot of potential
for new firms, hence causing threat to the existing firms. Another factor being, the
barriers to entry are very high and barriers to exit are not very high. So firms take time
to enter the industry but leaving the industry is not very difficult. Some of the major
barriers to entry include, access to the latest technology and to the skilled employees
and the benefits of reputation in the industry. Large and established firms have many
advantages like strong distribution network, customer loyalty, skilled and experienced
manpower and a well known brand name.
Threat of substitute products: The availability of substitute products increases

the chances that a business will lose customers; thus, substitution risk lowers
profitability. Substitute products in the Investment banking industry are not a big threat
to Investment banking industry. A customer is likely to switch from investment banking
industry to other services. Also limited number of substitutes means that the customers
cannot easily switch to other products or services of similar price and still receive the
same benefits. High switching cost positively affects Investment banking industry.
Bargaining power of suppliers: The more pressure suppliers can exert on a

company, the more bargaining power they have over that company. Bargaining power
generally increases profitability for the party that exerts it. Investment banking is a
service oriented business. Human capital may be considered as a supplier to a firm.
Human capital can significantly affect the investment banking industry. But human
capital is an easy qualitative factor to overcome, so the industry will not have to spend
much time trying to overcome this issue.
Bargaining power of consumers: The more pressure customers can exert on a

company, the more bargaining power they have over that company. Bargaining power
generally increases profitability for the party that exerts it. For an investment banking
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industry, customers focus more on services offered by the firm. Service Differentiation
can attract a customer. The customers require special customization as per their needs.
Competitive rivalry within the industry: This is usually the most important
determination of competitive forces. The major bases of competition include service
quality, the range of service offered, and the price. There are many players in the
investment banking industry. Service differentiation plays a major role in attracting new
customers and retaining the existing ones. Also the exit barriers are low in investment
banking industry. When exit barriers are low, weak firms are more likely to leave the
market, which will increase the profits for the remaining firms. Low exit barriers are a
positive for Investment banking industry.
1.8 METHODOLOGY
The following methodology was used during my internship
 Analytical Methods using Primary and Secondary Methodology

 Understand the Company and its workings as a whole
 Complete daily projects as and when required
 In-depth understanding of the industry
 Analysing past records of companies
 Analysing the annual reports and financial highlights of global players
 Reviews in economic times and business today
 Primary research by visiting local grocery stores and pantaloons, big bazaar
and life style
 Keeping daily checks on latest news and updates relating to the industry
 Analysing data on various online websites like www.dealcurry.com,
www.vccircle.com and www.vccedge.com
 To collect relevant data and extract useful information
 To make the required proposal with the needed information
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1.9 SIP OVERVIEW
The projects assigned to me during internship involved deep and focused

observation and research on consumer and healthcare industry in India. It involved data
collection through primary and secondary research on consumer and healthcare industry
in India. The research was carried out by surfing various websites on the internet and
also by visiting places like local grocery stores and brand outlets like pantaloons, life
style, big bazaar, etc. It also involved reading news articles and reviews about the
industry. The data collected by my research is then used by the company to make further
analysis on the various companies for exploring business opportunities. It also involved
finding the portfolio of the active private equity funds in India.
The projects given to me during the three months of internship has helped me
learn about the investment banking firms. The company also gave me access to their
account on the www.vccedge.com which is a database with information about various
parameters of private and public companies. This has helped me in successful
completion of various projects.
The experience and knowledge gained during this internship tenure is very
valuable and will be cherished throughout my professional carrier. This report talks
about the various assignments which were completed by me during the summer
internship tenure.
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2 OVERVIEW OF INVESTMENT BANKING
2.1 MEANING
Investment Banking Simply means financial intermediary that performs a variety
of services. Investment banks specialize in large and complex financial transactions
such as underwriting, acting as an intermediary between a securities issuer and the
investing public, facilitating mergers and other corporate reorganizations, and acting as
a broker and/or financial adviser for institutional clients. Major investment banks
include Barclays, Goldman Sachs, Deutsche Bank, JP Morgan, Morgan Stanley, Credit
Suisse, Citibank and Yes Bank Limited. Some investment banks specialize in particular
industry sectors. Many investment banks also have retail operations that serve small,
individual customers.
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income instruments, currencies, and commodities). Unlike commercial banks and retail
banks, investment banks do not take deposits.
2.2 THE SELL SIDE AND BUY SIDE
There are two main lines of business in investment banking -
 The "sell side" involves trading securities for cash or for other securities (e.g.
facilitating transactions, market-making), or the promotion of securities (e.g.
underwriting, research, etc.).
 The "buy side" involves the provision of advice to institutions concerned with
buying investment services. Private equity funds, mutual funds, life insurance
companies, unit trusts, and hedge funds are the most common types of buy
side entities.
2.3 SERVICES OFFERRED BY INVESTMENT BANKING FIRM

Typically, an investment banking group nowadays provides world-wide some
or all of the following services, either in divisions of the bank or in associated
companies within the group:
 Mergers and Acquisition Advisory

 Private Placement of Debt and Equity
 Securities Underwriting
 Management of Capital issues
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 Management of Buyback and takeovers

 Corporate Advisory Services
 Project Advisory Services
 Other services like Restructuring/Sales, Real Estate, Loan
 Syndication and so on.
The core services provided by the Investment banks are in the areas of debt
market, equity market and advisory services. There is no demarcating line between the
investment banking and other forms of banking in India. This has been observed
majorly of late. All banks nowadays want to provide their customers the best of services
and create a niche for themselves and that is why apart from investment banks, all other
banks too are aiming at making it big. At the macro level, investment banking is related
with the primary function of assisting the capital market in its function of capital
intermediation, i.e., the movement of financial resources from those who have them (the
investors), to those who need to make use of them for producing GDP (the issuers).
Over the decades, investment banks have always suited the needs of the finance
community and thus become one of the most vibrant and exciting segment of financial
services.
Globally investment banks handle significant fund-based business of their own

in the capital market along with their non-fund service portfolio which is offered to the
clients. All these activities are broadly segmented across three platforms - equity market
activity, debt market activity and merger and acquisitions (M&A) activity.
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2.4 ROLES WITHIN AN INVESTMENT BANK
All roles fit into three categories;
 Front Office
 Middle Office
 Back Office
Front Office
Front office is generally described as a revenue generating role. There are two
main areas within front office: Investment Banking and Markets. Investment Banking
is basically advisory on mergers, acquisitions and fund raising. Markets is then split
into further divisions; sales, trading, some research and also structuring.
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Middle Office
Middle office roles generally comprise of risk management positions. This can
be seen as more cost cutting roles, as middle office positions involve analyzing and
evaluating the risk taken by front office employees. This can be done by setting limits
on the amount of money available to trade with, for example.
Back Office
Back office roles are mainly operation roles and include the technology
division. Operations employees are used to make any transfers, and generally ensuring
there are no errors in hat is being performed. The back office jobs are often considered
unglamorous and some investment banks outsource to specialty shops such as
custodial companies. Nevertheless, they allow the whole thing to run. Without them,
nothing else would be possible.
Front – Office Mid - Office Back – Office

Deal Sourcing Risk Management Operations
Marketing Treasury Information Tech
Distribution Valuation Compliance
Project Finance Corporate Strategy Internal Audit
Merchant Banking Proprietary Trading Training
Research Market Making Internal Research
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2.5 MERCHANT BANKING and INVESTMENT BANKING
 As a general rule, investment banks focus on initial public offerings (IPOs) and
large public and private share offerings. Merchant banks tend to operate on
small-scale companies and offer creative equity financing, bridge financing,
mezzanine financing and a number of corporate credit products
 While investment banks tend to focus on larger companies, merchant banks

offer their services to companies that are too big for venture capital firms to
serve properly, but are still too small to make a compelling public share
offering on a large exchange
 In order to bridge the gap between venture capital and a public offering, larger
merchant banks tend to privately place equity with other financial institutions,
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often taking on large portions of ownership in companies that are believed to

have strong growth potential
 Merchant banks still offer trade financing products to their clients. Investment
banks rarely offer trade financing because most investment banking clients
have already outgrown the need for trade financing and the various credit
products linked to it.
 Merchant banks can also be said as a British term for investment banks
 Merchant banker has been defined under the Securities & Exchange Board of
India (Merchant Bankers) Rules,1992 as "any person who is engaged in the
business of issue management either by making arrangements regarding
selling, buying or subscribing to securities as manager, consultant, advisor or
rendering corporate advisory service in relation to such issue management"
 To conclude the argument, merchant banking has different connotations in the

US and other markets
 In the US it is primarily a fund based activity while in the UK and in India it is

implies intermediation and advisory activity in connection with public
floatation of securities
 Investment Banking can thus be defined as a broader term which covers fund
and fee based activities
 Merchant Banking can either be a fund based activity or a fee based activity
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2.6 EVOLUTION OF INVESTMENT BANKING IN INDIA

The origin of investment banking in India can be traced back to the 19TH century
when European merchant banks set-up their agency houses in the country to assist in
the setting of new projects. In the early 20TH century, large business houses followed suit
by establishing managing agencies which acted as issue house for securities, promoters
for new projects and also provided finance to Greenfield ventures. A few small brokers
also started rendering Merchant banking services, but theirs was limited due to their
small capital base.
In 1967, ANZ Grindlays bank set - up a separate merchant banking division to

handle new capital issues. It was soon followed by Citibank, which started rendering
these services. The foreign banks monopolized merchant banking services in the
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country. The banking committee, in its report in 1972, took note of this with concern
and recommended setting up of merchant banking institutions by commercial banks and
financial intuitions. State bank of India ventured into this business by starting a
merchant banking bureau in 1972.In 1972, ICICI became the first financial institution
to offer merchant banking services.
The growth of the industry was very slow during this period. By 1980, the
number of merchant banks rose to 33 and was set-up by commercial banks, financial
institutions and private sector. The advent of economic reforms in 1991 resulted in
sudden spurt in both the primary and secondary market. The securities scam in may,
1992 was a major setback to the industry. Several leading merchant bankers, both in
public and private sector were found to be involved in various irregularities. Some of
the prominent public sector players involved in the scam were Canbank financial
services, SBI capital markets, Andhra bank financial services, etc. leading private sector
players involved in the scam included Fair growth financial services and Champaklal
investments and finance (CIFCO).The market turned bullish again in the end of 1993
after the tainted shares problem was substantially resolved. There was a phenomenal
surge of activity in the primary market. The registration norms with the SEBI were quite
liberal. This led to rise in the number of investment banking firms in the country and
currently it is one of the growing segments with intense competition within the industry.
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2.7 COMMERCIAL BANKS V/S INVESTMENT BANKS
COMMERCIAL BANKS INVESTMENT BANKS
Bank, or division of bank, primarily

Banks, or division of bank, primarily
specialized in securities / capital market
dealing with deposits and loans
activities
Take deposits and Provide a lending Don’t take deposits and Don’t provide
service to their customers loans
Have a few hundred core customers or

May have millions of customers
less
Provide a very standardized service Provide a very bespoke service
Provide transactional day-to-day

services
 Current / Savings / Fixed

Don’t provide transactional day-to-day
accounts
services
 Credit and Debit cards
 Mortgages and Personal loans
 Insurance
Provide strategic advice to companies,

Don’t provide strategic advice to
e.g. on their structure, acquisitions,
companies
divestments, etc.
Over the years, commercial banks have Traditional activities are underwriting
started offering an increasingly wider and placement of financial products
range of banking / financial products and issued by corporations / public sector
services, often of the same nature of entities. Investment banks structure them
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those offered by investment banks (e.g., to optimize the products’ risk / reward
underwriting of securities) profile and then provide liquidity
through sales and trading activities
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3 ACTIVITIES OF INVESTMENT BANKS
Investment Banks provide services in various areas. The activities carried out
by them are briefly explained below:
3.1 EQUITY CAPITAL MARKETS
 Advise and underwrite issuance and placement of equity and equity-linked

instruments on the primary and secondary markets
 Role of Global Coordinator, Bookrunner, Lead Manager, Sponsor in
transactions such as:
 Initial Public Offerings (IPOs)
 Rights issue and capital increase without the pre-emptive rights
 Secondary offerings
 Convertible / Exchangeable bonds
 Blocks
 Equity derivatives
 Listings
 Process organized along the following activities:
 Origination
 Advisory and Arranging
 Syndication & Placement
3.2 DEBT CAPITAL MARKETS
 Advise and underwrite issuance and placement of debt instruments on the

primary and secondary markets
 Role of Lead Manager and Bookrunner in transactions such as:
 Bond Issuance by sovereign, corporate and financial issuers
 Asset – backed securities issuance and securitizations
 Rating advisory
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 Secondary offerings
 Debt / balance sheet restructuring
 Interest rate derivatives
 Origination
 Advisory and Arranging
 Syndication & Placement
3.3 ADVISORY AND M&A
 Financial advice in transactions such as:

 Mergers & Acquisitions
 Spin-offs, demergers and JVs
 Disposals
 Corporate restructurings
 IPOs (for listing and valuation)
 Privatizations
 Valuations and fairness opinions
 Financial analysis
 Preparation / review of budgets and business plans
 Origination
 Advisory preparation
 Execution
3.4 CORPORATE FINANCE
 Work together with Advisory in the Originations of Advisory transactions

 Work together with ECM / DCM in the origination / underwriting of securities
issuance
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3.5 SALES & TRADING, RESEARCH AND SUPPORTING

ACTIVITIES
 Sales & Trading of financial products in the secondary market:

 Brokerage
 Dealing
 Market Making
 Proprietary Trading
 Research: Support Sales & Trading, covering from the macro scenarios to
single stock analysis
 Risk Management: Review and monitoring of trading activities
 Back-Office: Administration and settlement operations for the trading
activities
3.6 STRUCTURED FINANCE
 Advise and structure lending facilities to support the growth of corporate

 Syndicated Loans
 LBO and MBO
 Acquisition Finance
 Shipping Finance
 Real Estate Finance
3.7 EXPORT FINANCE
 Advise and structure lending facilities aimed at export activities, often with
the support of export agencies
 Trade finance
 Credit lines “Bank to bank”
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3.8 PROJECT FINANCE
 Advise and structure financing independently from the credit rating of their
promoters
 Feasibility studies
 Developments of financial strategies and of financial models and sensitivity
analysis
 Advisory in the tender offer processes and in review proposals
 Syndication and organization of pools
 Co-financing with development banks / agencies
3.9 ASSET / WEALTH MANAGEMENT
 Managing the financial wealth of their clients, usually focused on high net
worth individuals and institutions
 Leveraging on the firm’s brand and relationships at all levels
3.10 MERCHANT BANKING (PRIVATE EQUITY)
 Acquisition of shareholdings in companies (usually industrial) either

directly or by setting a specialized close-end fund
 Investments can target majority stakes (industrial rationale) or minority
stakes (financial rationale)
 Depending on the life cycle of the investment, referred to as venture capital
(start up) or private equity (sector development or maturity)
3.11 INDUSTRIAL LENDING
 Lending to Corporate and SMEs

 Facilitated lending
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3.12 OTHER ACTIVITIES
 Some activities of investment banks have been shifting towards the

following areas of business:
 Collection of deposits and granting of loans
 Purchase and sale of real estate assets
 Financial advisory for SMEs
4 DETAILS OF ASSIGNMENT
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There were various assignments offered to me during my internship at Equirus

Capital Private Limited. The work done during internship can be broadly divided into
two categories:
 Research
 Analytical
There were certain projects which were research based and it involved hard core
research. The data collected was submitted to the company guide as per the required
format and the further analysis work was done by the company guide. There were few
projects which required analysis also to me made. The following are the various
assignments undertaken during the internship tenure.
4.1 SODIUM SILICATE
The first assignment of SIP was research on Sodium Silicate. There were various
parameters to be found and analyzed for this task. The data had to be collected for Indian
and global market. It was basically to explore this segment for investment opportunities.
The topics covered in this research were:-
4.1.1 Basic Information about the chemical
 Also known as waterglass or liquid glass

 Available in aqueous solution and solid form
 Formula – Na2Sio3
 Pure compositions are colourless or white, but commercial samples
are often greenish or blue owing to the presence of iron-containing
impurities
 Harmful if swallowed or inhaled
 Grades – Neutral and alkaline
 Final product is packed in drums / containers as per customer
requirement
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4.1.2 Application (uses of sodium silicate)
 Soaps and detergent industries

 Paper industries
 Oil drilling industries
 Construction Industries
 Foundries
 Ceramic Industries
 Manufacturing of electrodes
 Automobiles
 Refractories
 Textile
 Passive fire protection
4.1.3 List of companies manufacturing sodium silicate (globally)
C Quest, LLC, Vandana Chemicals, PQ Corporation, Thatcher Chemical,

InterAtlas Chemicals, Ampak Chemicals, Inc., Seidler Chemical Co., Inc., Lintech
International LLC, Continental Chemical USA, PPG Industries, Weifang Yaxing
Chemical Co. Ltd,, W. R. Grace & Co.
4.1.4 List of companies manufacturing sodium silicate in India
Kiran Global Chems. Ltd, Triveni Chemicals, Suvidhi Industries, Yash Chemicals,
Nilkanth Organics, A. B. Enterprises, Bombay Lubricant Oil Company, Arihant
Enterprise, MAlpro Silica Pricate Limited, R. R. enterprises
4.1.5 Average price of sodium silicate
 Average Price is US $200/ton

 Recently Price has increased by around US $10/ton
4.1.6 Feasibility report
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On the basis of the research a feasibility report was prepared:
Project estimation
- Sodium silicate manufacturing is a continuous process

- Unit to run 3 shift a day and 25 days a month (300 days a year)
- Plant erection estimated considering the pollution requirements of 60ft chimney
- Any local law applicable to be taken into consideration prior to plant
implementation
Land and Building
- 1500 sq.m area with 500 sq.m built up shed
Machinery and Equipment
- 1T/hr glass tank furnance; boiler and accessories; agitator; storage drums;
balance; test kir
Raw materials
- 100 tons/month soda ash

- 175tons/month silica sand
Utilities
- 20k VA power connection

- 10QMEC water supply
- 8KL/day furnace oil
Miscellaneous expenses
- Office establishment
- Material handling
- Transportation
- Palnt maintenance
Capital Investment
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- Estimated : INR 98,44,000/-
Cost of Production
- Estimated per annum : INR 2,56,91,420/-
Turnover
- Estimated sales : INR 2,85,00,000/-
Profit
- Profit per annum : INR 28,08,580/-&Net profit ratio 9.8%
Rate of Return
- 28.53%
Break Even Point
- 44.4%
4.2 EXPRESS LOGISTICS INDUSTRY

Next assignment was research on the Express Logistics Industry. The various
area of research were global logistics industry, Indian logistics industry, major
organised players in the logistics industry, trends in the Indian logistics industry,
logistics cost in India, FDI regulations in the logistics industry, future trends in logistics,
express logistics industry, characteristics of express delivery services, competition
within the industry, mergers, conclusion and recommendations.
4.2.1 Facts about Indian Express Logistics Industry
- There are a large number of players in the express industry

- The total number of players is estimated at about 2500 across the country
- The presence of a large number of players leads to a high level of
competition within the industry
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- The smaller players, due to limited networks, tend to operate in a specific

region like intra-city market, state-level market or specific routes
- The competition level in this segment is the highest as multiple players
cater to this segment, and the service differentiation is limited, leading to
pricing becoming the major element of competition
- The larger players, with wider network and better systems, are able to offer
wider range of services as well better reliability of services
- In addition, there are the large global players who have a wide global
network
- There exist a large number of medium-sized players with focus on regional
markets but presence across multiple regions
- These players have differentiated presence in their focus markets
- Though they have better pricing power than smaller players, price remains
a major competition element for this segment as well
- Overall, the level of competition in the Indian express industry is at a high
level with the larger players enjoying a competitive advantage over the
rest of the industry
4.2.2 Recommendations on the basis of Research
- Create appropriate policy changes per mode of transportation (road, rail,

water and air).
- Increasing investments in the various modes of transportation and opening
up capacity, especially for rail and waterways.
- Harmonize and streamline processes across government bodies that have
a role to play in the logistics sector, thereby reducing stoppages and touch
points of cargo movements.
- This will also increase the speed with which goods are transported within,
into and out of the country.
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4.3 FOOD PROCESSING INDUSTRY, FOOD & BEVERAGE

INDUSTRY AND FMCG (NON-FOOD) INDUSTRY
The next sector which was worked on during internship was Food Processing
Industry, Food & Beverage Industry and FMCG (non-food) Industry in India to
understand the various players, their working and the products and services offered by
them. The research was done on various companies which were already funded and
ones which were not funded. The points covered during this assignment were:-
 Name of the company
 Area of Business
 Base city
 Products offered
 Description
 Chain type (Distribution or Retail)
 Number of outlets
 Revenue
 Promoter’s name
 Past private equity deals
 Deal size
 Deal year
 Name of investor
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A Print screen of the

Excel Worksheet made
on the Food Processing,
Food &Beverage and
FMCG (non food)
Industry
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4.4 HEALTHCARE SPACE
During the Internship I have also worked on the Healthcare space in India. It
involved deep research on various sectors in the healthcare space in India. This research
helped me gain immense knowledge on the various healthcare sectors which were
studied.
The various sectors in healthcare space on which research was done are:
 Single Speciality Hospitals

 Minimal Invasive Surgery
 Super Speciality Hospitals
 Dental Care Chains
 Dermatology Clinic Chains
 Asset Light Hospital Management
 Women and Child Care
 Eye Care Hospitals
 Primary Healthcare Clinics
 Pharmacy Chains
 AYUSH Care Centres
 Contract Research and Manufacturing Companies
 In Vitro Fertilization (IVF) Facility and many more
In process of completing this assignment, research was done on more than 90

companies involved in the various segments stated above. Two Excel Sheets were made
which had details of the various players in these sectors. One sheet had all the players
which were not funded and the other had names which had being funded in the past.
There were companies in the list submitted which could be proposed for funding.
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The following were the parameters covered during analysing these companies in
the healthcare space:-
 Name of the company
 Area of Business
 Base city
 Description
 Chain type (Distribution or Retail)
 Number of hospitals/plants
 Revenue
 Promoter’s name
 Past private equity deals
 Deal size
 Deal year
 Name of investor
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Sample (Print screen) of the Excel Worksheets made during research on

healthcare space (funded & non-funded)
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4.5 Quick Service Restaurant Industry (QSR)

The next assignment done during the internship was on quick service
restaurant industry. This was both research and analytical. This assignment required
lots of research on the QSR industry. The work done during the research on this sector
is explained below.
Types of
Restaurants
Casual Quick Service

Fast Dining Cafes
Dining Restaurants
4.5.1 Types of Restaurants
 Fast Dining
Fine dining restaurants are full service restaurants with specific dedicated meal
courses. Decor of such restaurants features higher-quality materials, with an eye
towards the "atmosphere" desired by the restaurateur, than restaurants featuring lower-
quality materials. The wait staffs are usually highly trained and often wear more formal
attire. Fine-dining restaurants are almost always small businesses and are generally
either single-location operations or have just a few locations. Food portions are visually
appealing. Fine dining restaurants have certain rules of dining which visitors are
generally expected to follow often including a dress code.
 Casual Dining
A casual dining restaurant is a restaurant that serves moderately-priced food in a
casual atmosphere. Except for buffet-style restaurants, casual dining restaurants
typically provide table service. Chain examples include TGI Friday's and Applebee's in
the U.S. and Harvester in the U.K. Casual dining comprises a market segment between
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fast food establishments and fine dining restaurants. Casual dining restaurants often
have a full bar with separate bar staff, a larger beer menu and a limited wine menu. They
are frequently, but not necessarily, part of a wider chain, particularly in the United
States. In Italy, such casual restaurants are often called "trattoria", and are usually
independently owned and operated.
 Quick Service Restaurants

A quick service restaurant (QSR), also known as a fast service restaurant within
the industry, is a specific type of restaurant characterized both by its fast food cuisine
and by minimal table service. Food served in fast food restaurants typically caters to a
"meat-sweet diet" and is offered from a limited menu; is cooked in bulk in advance and
kept hot; is finished and packaged to order; and is usually available ready to take away,
though seating may be provided. Fast food restaurants are typically part of a restaurant
chain or franchise operation, which provisions standardized ingredients and/or partially
prepared foods and supplies to each restaurant through controlled supply channels.
 Cafes
Cafes are informal restaurants offering a range of hot meals and made-to-order
sandwiches. Coffee shops, while similar to cafes, are not restaurants due to the fact that
they primarily serve and derive the majority of their revenue from hot drinks. Many
cafes are open for breakfast and serve full hot breakfasts. In some areas, cafés offer
outdoor seating.
The assignment given to me was to make analysis of the quick service restaurant
(QSR) industry for both, Indian market and global market. This involved in-depth
research on global giants in QSR space like McDonalds Corporation, Subway, Burger
King, Papa John’s, Wendy’s, KFC, Yum Brands, Dominos, etc. and also on the Indian
players and presence of global giants in India.
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4.5.2 QSR Industry: Global Overview
• QSR Industry represents one of the largest segments of the food industry with
over 200,000 restaurants and $120B in sales in the U.S. Alone
• Over the five years to 2013, revenue within the global fast food restaurant
industry grew at an average annual rate of 2.5%, to reach a value of $526.2
billion
• Due to existing competition in developed nations, top players of QSR are moving
in emerging economies in order to expand their revenue and profit
4.5.3 Top Global Players in QSR Industry
• McDonalds’
• Yum! Brands (Pizza Hut, KFC and Taco Bell)
• Wendy
• Subway (operated by Doctor’s Associates)
• Dominos Pizza
• Burger King
• Papa John’s
4.5.4 Facts About QSR
• In 2012, the top four global players, all based in the US (McDonalds', Yum!
Brands, Doctor's Associates, and Burger King) accounted for approximately
23.5% of the available market share
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• By 2017, it is expected that the major global operators will only increase their
market share marginally, despite the opening of more stores in high growth
developing countries.
• Their growth in establishments will continue to be overwhelmed by local single-

owner establishments offering more local, traditional and in-demand food styles
• Maintaining Consistency in product and quality of service are the biggest

challenges faced by QSRs
4.5.5 Number of Locations of Major Players
• McDonalds’ – 35,000
• Subway – 40,855
• Dominos Pizza – 10,000
• Pizza Hut – 11,139
• Burger King – 12,997
• KFC – 18,000
• Wendy’s – 6,650
4.5.1 Valuation Matrix
After the basic research on the QSR industry, the annual reports of the giant players
were analyzed to find out the key financial ratios i.e. valuation matrix which is
explained below: (Note: All amounts in USD Million)
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MCDONALDS’ CORPORATION
Particulars 2013 2012 2011 2010

Revenue 28,106 27,567 27,006 24,075
Operating Profit 8,764 8,605 8,530 7,473
EBITDA 10,354 10,095 9,950 8,753
EBITDA Margin (%) 36.84 36.62 36.84 36.36
Net Profit 5,586 5,465 5,503 4,946
Net Profit Margin (%) 19.87 19.82 20.38 20.54
Gross Block 28620 47512 25488 37,068
Debt 14,130 13,633 12,134 11,497
Cash In Hand 2,799 2,300 2,300 2,400
Net Debt 11,331 11,333 9,834 9,097
Market Capitalization 94,940 66,420 76,190 66,420
EV 106,271 77,753 86,024 75,517
EV To SALES 3.78 2.82 3.19 3.14
EV To EBITDA 10.26 7.70 8.65 8.63
PE Ratio 17.25 16.28 14.61 13.73
YUM
Particulars 2013 2012 2011 2010

Revenue 13,084 13,633 12,626 11,343
Operating Profit 1,798 2,294 1,815 1,769
EBITDA 2,519 2,951 2,445 2,363
EBITDA Margin (%) 19.25 21.65 19.36 20.83
Net Profit 1,091 1,597 1,319 1,158
Gross Block 12,751 5,974 5,022 4,964
Debt 2,918 2,932 2,997 2,915
Cash In Hand 669 912 1,300 1,500
Net Debt 2,249 2,020 1,697 1,415
EV 34,929 30,040 24,027 17,565
EV To SALES 2.67 2.20 1.90 1.55
EV To EBITDA 13.87 10.18 9.83 7.43
PE Ratio 24.84 19.98 17.4 15.58
WENDEY'S
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Particulars 2013 2012 2011 2010

Revenue 2,487 2,505 2,431 3,416
Operating Profit 135 123 137 142
EBITDA 297 277 282 324
EBITDA Margin (%) 11.94 11.06 11.60 9.48
Net Profit 45 7 10 3
Gross Block 3,314 3,428 3,367 2,274
Debt 1,425 1,445 1,350 1,523
Cash In Hand 647 255 541 585
Net Debt 778 1,191 809 938
EV 4,048 3,181 2,739 2,868
EV To SALES 1.63 1.27 1.13 0.84
EV To EBITDA 13.63 11.48 9.71 8.85
PE Ratio 29.77 28 31.07 30.57
PAPA JOHN'S
Particulars 2013 2012 2011 2010

Revenue 1,439 1,343 1,218 1,110
EBITDA 132 133 120 120
EBITDA Margin (%) 9.17 9.90 9.82 10.77
Net Profit 70 62 55 57
Gross Block 291 276 257 489
Debt 158 88 51 99
Cash In Hand 14 16 19 48
Net Debt 144 72 32 51
Market Capitalization 2,200 1,750 1,400 614
EV 2,344 1,822 1,432 665
EV To SALES 1.63 1.36 1.18 0.60
EV To EBITDA 17.76 13.70 11.97 5.56
PE Ratio 34.38 18.13 14.25 13.93
DOMINOS
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Particulars 2013 2012 2011 2010

Revenue 1,802 1,678 1,652 1,570
EBITDA 340 306 283 196
EBITDA Margin (%) 18.84 18.21 17.13 12.48
Net Profit 143 112 105 88
Gross Block 129 125 117 122
Debt 1,512 1,536 1,450 1450
Cash In Hand 185 153 93 134
Net Debt 1,327 1,383 1,357 1,316
Market Capitalization 4,270 1850 1410 725
EV 5,597 3,233 2,767 2,041
EV To SALES 3.11 1.93 1.67 1.30
EV To EBITDA 16.49 10.58 9.78 10.41
PE Ratio 31.28 17.04 13.12 9.05
BURGER KING
Particulars 2013 2012 2011 2010

Revenue 1,146 1,971 2,340 2,404
EBITDA 588 532 499 446
EBITDA Margin (%) 51.31 26.99 21.33 18.55
Net Profit 234 118 88 45
Gross Block 4,391 4,496 4,750 2,741
Debt 2,956 2,994 2,680 733
Cash In Hand 787 547 459 188
Net Debt 2,169 2,447 2,221 545
Market Capitalization 9,290 5,758 NA NA
EV 11,459 8,205 NA NA
EV To SALES 10.00 4.16 NA NA
EV To EBITDA 19.49 15.42 NA NA
PE Ratio 31.45 21.65 NA NA
4.6 INDIAN QSR INDUSTRY
 QSR Industry – Rs. 5,500 Cr.
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 Expected to be Rs. 7,000 Cr. in next 3 years
 Growing approximately at robust 20 – 25 percent over past few years
 Highest growth segment over others in restaurant industry
 Urban youth make up the prime target audience (Age group : 16 – 35 years)
 India with its 1.3 billion population base and strong domestic economy, is
undoubtedly a market for any business
 Over 65% of India’s current population is younger than 35 years in age (1.2
billion)
 Many of these people are welcoming international brands as well as domestic

brands in the QSR space
4.6.1 Reasons for Rise in Demand Of QSR
 Rise in disposable income of middle class consumers
 Rising demand for quick bites in emerging economies
 To withstand competition, most of the players are tailoring their offerings in

terms of flavours, pricing, services, etc.
 Focus on affordable and competitive pricing clubbed with catering growing

consumer need as convenience, increased appetite, and craving for international
food
4.6.2 Market Share of Indian and Foreign Brands in Indian QSR Industry
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Market Share in Indian QSR

Industry
37%
63%
Indian Brands
Foreign Brands
 Indian Brands like Jumbo King, Dosa Plaza, Kaati Zone, Goli Vada Pav
account for 37% of market share
 Foreign Brands like Dominos, Subway, KFC, McDonalds, etc. account
for 63% of market share
4.6.3 Store Counts
 Dominos – 630
 Subway – 390
 McDonalds – 330
 KFC – 361
 Pizza Hut - 367
 Papa John’s - 30
4.6.4 Break up of Indian QSR Industry Market Share
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20% Dominos
Subway
40%
McDonalds
12% KFC
Pizza Hut
11% Others
8% 9%
4.6.5 Number of Outlets (Annual Growth)
Brand
2013 2012 2011 2010 2009
Name
Dominos 576 465 378 306 241
KFC 361 280 203 143 170
Pizza Hut 367 310 260 209 190
4.6.6 Growth in Indian QSR Industry
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80
70
60
50
40
Market
30
size in Rs.
20 Billion
10
0
 The Indian QSR industry has grown at a CAGR of 30% from 2009 to
2013
 It is expected to be a Rs. 70 Billion Industry at 27% CAGR by the end of

2016
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4.6.7 Challenges Faced By QSR In India
 Food price inflation
 Many small and mid-size unorganized players competing with large chain
players
 Manpower is a big challenge (attrition rate - 25-30%)
 High real estate and labour costs
 Presence of multiple intermediaries
 Lack of appropriate infrastructure and inadequate technologies
 Obtaining the requisite licenses is a major obstacle
4.6.8 Need Gaps (Recommendations)
 Childcare facility
 Games to help people pass time while waiting for their orders
 24 hour QSR
 QSR which allows pets
 Menus should show pictures of every dish
 Membership Cards
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4.7 ANALYSIS ON TYPICAL APC, AVERAGE AREA,

FOOTFALLS PER DAY AND USD/SQ.FT. OR RS./SQ. FT.
(MONTHLY)
On the basis of research, analysis was done regarding typical APC, average area,
footfalls per day and USD / Sq. Ft. (for global market) and Rs. / Sq. Ft. (for Indian
market) monthly for one outlet. APC is average per customer. It means how much cash
an individual pays if he visits your outlet. This was done for global market as well as
Indian market. This will help an individual or organization to decide whether to invest
in the QSR or not.
Global
Typical APC Average Area Footfalls per USD/Sq. Ft.

Name
($) (Sq. Ft.) day (monthly)
McDonalds 5 3500 4000 171
Burger King 6 3000 2000 120
KFC 4 3000 2500 100
Wendy’s 5 3000 1500 78
Subway 7 1200 500 88
Dominos 6 1100 700 115
India
Typical APC Average Area Footfalls per Rs./Sq. Ft.

Name
(Rs.) (Sq. Ft.) day (monthly)
QSR 300 1000 500 4500
Speciality
750 5000 150 675
Restaurants
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4.8 PRIVATE EQUITY FUNDS
The last assignment offered during the internship was collecting data on all
private equity funds in India. It involved collecting data regarding the fund name, the
portfolio company and their valuations. This was done by taking help of a database i.e.
www.vccedge.com. The company has provided me with the username and password to
access the database.
The database was very useful. The main advantage of database was it gave me
access to the fund name. Now, once the fund name is known, research had to be done
on it. It involved surfing on the internet for gathering the required information, viewing
the funds profile to know about the portfolio company it has. Once the portfolio
companies are known, deal size, deal year and other parameters had to be found.
The main task was to collect data on private equity funds who have invested in
various companies in India. It involved collecting the information on investments made
from the year 2000 till date. The points to be collected involved the company name in
which the funds have invested, sector in which the company works, status - whether
public or private, financial year of which existing profit, existing EBITDA were taken,
deal size, year in which deal took place and the percentage of stake acquired by the
investing fund.
While collecting this data care had to be taken that only the existing portfolio
companies were to be included in the excel worksheet. The exited companies i.e.
companies from which the fund has withdrawn its investment were not to be included
in the worksheet.
The time taken for completing this assignment was approximately one month.
The total number of funds analyzed was 379 with an average of 5 companies in the
portfolio of every fund, which makes it a huge excel sheet.
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Sample of the Excel Worksheet made On PE Funds
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5 CONCLUSION
income instruments, currencies, and commodities).
The various research and analysis done during SIP has helped me gain in-depth
knowledge about various segments in consumer and healthcare industry. It has helped
me to understand the method of analysing a company on basis of its annual reports. It
has given me a deep insight about the consumer and healthcare industry and has also
made me understand the working of an investment banking firm.
The research data collected is further analysed by company experts to explore

more business opportunities. Depending upon the financial performance and needs of
various companies in the consumer and healthcare space, they are approached for
investment opportunities. This helps the companies in need for funds to raise funds to
expand their operations.
Also the internship has helped me understand the working of investment banking
firm. In today’s competitive scenario, it is very necessary for a firm in any sector to
expand in order to grow its profit and survive. Investment banking firms help such
people to expand by providing them their services.
The profile given to me for internship at Equirus Capital Private Limited has
helped me gain immense knowledge and experience on the consumer and healthcare
industry in India and globe. It has also given me an opportunity to work with
experienced and knowledgeable people and experts.
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6 GLOSSARY
 FICC – Fixed Income Instruments, Currencies and Commodities
 FDI – Foreign Direct Investment
 FMCG – Fast Moving Consumer Goods
 IVF – In Vitro Fertilization
 QSR – Quick Service Restaurants (Also known as fast-food restaurants)
 APC – Average Pay per Consumer
 EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization
 EV – Enterprise Value (Market capitalization plus debt, minority interest and

preferred shares, minus total cash and cash equivalents)
 Gross Block – The total value of all of the assets that a company owns. Value is
determined by the amount it cost to acquire these assets, and it is not decreased
to take into account the effects of depreciation
 P/E Ratio – Price-Earnings Ratio (Market value per share / Earnings per share)
 Speciality Restaurants – Specialize in a particular multicultural cuisine not

specifically accommodated by any other listed categories
 CAGR – Compound Annual Growth Rate (The year-over-year growth rate of an

investment over a specified period of time)
55 | P a g e

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IBS MUMBAI SANKET JAIN – 13BSP0708

RESEARCH ON CONSUMER AND

Enrollment No. 13BSP0708

RESEARCH ON CONSUMER AND

Equirus Capital Private Limited

A report submitted in partial fulfilment of the requirements of

Sr. Name Description Designation Company

1. Prof.SarikaRachuri Faculty Guide Professor IBS Mumbai

Date of Submission: 30thMay, 2014

I would like to express my gratitude to Mr. Abhijeet Dhar, Director of Equirus

I am deeply indebted to Prof. Sarika Rachuri for her exemplary guidance,

I am obliged to employees of Equirus Capital Private Limited, for the valuable

3.5 SALES & TRADING, RESEARCH AND SUPPORTING ACTIVITIES 25

4.6.4 Break up of Indian QSR Industry Market Share 46

The internship emphasized on in-depth research on various companies in

Internship is an important component of education as it bridges the gap between

Both, research and analysis, has helped me understand how to analysis a

1.1 PURPOSE AND SCOPE OF THE REPORT

This report is also submitted in partial fulfilment of the requirements of PGPM

The main objective of my internship at Equirus Capital Private limited is to

1.2.1 Primary Objective

 To understand the current scenario of the industry

1.2.2 Secondary Objective

 Practical understanding of working of Investment Banking firms

1.3 LIMITATIONS OF THE STUDY

 Vast data to be analysed

1.4 COMPANY PROFILE

Equirus (pronounced ek-wi-rus) was coined to convey the commitment to

Equirus Capital, a full service investment banks backed by prominent investors,

1.4.1 A summary of highlights:

 Teams in Mumbai and Ahmedabad

1.5 INSDUTRY ANALYSIS

An investment bank is a financial institution that assists individuals,

1.5.1 Top Investment banks in india

1.6 SWOT ANALYSIS OF INVESTMENT BANKING INDUSTRY

1.7 PORTER’S 5 FORCES ANALYSIS OF INVESTMENT

Threat of new entrants: New competitors are often drawn to an industry

Threat of substitute products: The availability of substitute products increases

Bargaining power of suppliers: The more pressure suppliers can exert on a

Bargaining power of consumers: The more pressure customers can exert on a

The following methodology was used during my internship

 Analytical Methods using Primary and Secondary Methodology

1.9 SIP OVERVIEW

The projects assigned to me during internship involved deep and focused

2 OVERVIEW OF INVESTMENT BANKING

An investment bank is a financial institution that assists individuals,

2.2 THE SELL SIDE AND BUY SIDE

There are two main lines of business in investment banking -

2.3 SERVICES OFFERRED BY INVESTMENT BANKING FIRM

 Mergers and Acquisition Advisory

 Management of Buyback and takeovers

Globally investment banks handle significant fund-based business of their own

2.4 ROLES WITHIN AN INVESTMENT BANK

All roles fit into three categories;

Front – Office Mid - Office Back – Office

2.5 MERCHANT BANKING and INVESTMENT BANKING

 While investment banks tend to focus on larger companies, merchant banks

often taking on large portions of ownership in companies that are believed to

 To conclude the argument, merchant banking has different connotations in the

 In the US it is primarily a fund based activity while in the UK and in India it is

2.6 EVOLUTION OF INVESTMENT BANKING IN INDIA

In 1967, ANZ Grindlays bank set - up a separate merchant banking division to

2.7 COMMERCIAL BANKS V/S INVESTMENT BANKS

COMMERCIAL BANKS INVESTMENT BANKS