Prem Watsa and his India innings

Canada-based Prem Watsa's India (which also happens to be his home turf) innings started in 2010, when he acquired a small 10% stake in India Infoline Limited (now IIFL Holdings Limited) spending a little less than INR 300 crore. Today, the man in question has made an open offer to buy an additional 26% stake in IIFL Holdings for INR 1,621 crore.

In fact going by the spate of announcements so far this year, Mr Watsa and his team have truly been keeping busy targeting inorganic growth opportunities.

Few days back, two of his group companies in India announced two separate acquisitions. In August 2015, Mr Watsa took a majority ownership in National Collateral Management Services Limited (NCMSL), a leading private-sector agriculture storage company in India, for INR 800 crore. During the same month, Mr Watsa (through Thomas Cook India Limited) also took over the India and Hong Kong businesses of Kuoni for INR 535 crore.

Its worthwhile to take note of the manner in which Mr Watsa has transformed Thomas Cook India, which he acquired in 2012. Mr Watsa acquired 87% in Thomas Cook India for INR 963 crore in 2012. The very next year, Thomas Cook India signed an agreement to buy 74% stake in IKYA Human Capital Solutions Private Limited (now Quess Corp Limited) for INR 256 crore, making a foray into staffing services. At the time of acquisition IKYA was amongst the top three temporary staffing companies in India. In the following years, IKYA went on to acquire a host of companies including Hofincons Infotech and Industrial Services Private Limited (an industrial asset management firm), Aramark India Private Limited (a facility management company) and a few others outside India, including Brainhunter Systems Canada, Transfield Services Qatar and Randstand Lanka. Mr Watsa also entered into time share vacations after acquiring Sterling Holiday Resorts India Limited in 2014, and then merging it with Thomas Cook India. The deal valued Sterling Holiday at about INR 870 crore. The inorganic growth account of Sterling Holiday was opened this month after the company signed an agreement to acquire Nature Trails Resorts Private Limited, marking a foray into adventure tourism.

Taking a cue from the manner in which Mr Watsa has transformed Thomas Cook India, it may be easy to assume that he may have chosen similar growth paths for IIFL Holdings and NCMSL.