Sectors

The Indian aerospace and defence market presents an attractive and significant opportunity for Indian and foreign companies across the supply chain. Though India has the third-largest armed forces in the world, only about 35% of defence equipment is manufactured in India, mainly by public sector units which makes India one of the largest importers of conventional defence equipment. About 70% of its defence requirements are met through imports.

India has become the world's fourth largest spender on defence, following a 13.1% increase in its 2016-17 defence budget at a CAGR of 10% over FY 2000-14and expected to reach $64.8 billion by 2020.

With a capex opportunity of US$245Bn over the next decade, India is about to start one of the world's largest procurement cycles which in the 1st stage will finalize defence orders worth Rs.2.8 trillion by 2016 and pushing for at least 40% indigenous content in the defence products which is a huge opportunity for both domestic and foreign manufacturers.

Favourable regulatory environment by liberalizing defence procurement procedure favouring indigenization, increasing FDI limit up to 49% and 100% on sectorial basis, making it one of 25 identified sectors under the 'Make in India' initiative, new Industrial licensing policy and favourable trade policy will help the Indian Industry to compete with their global counterparts, generating incremental market opportunities.

Lexicon and its Team Members have specific knowledge and expertise for Aerospace and Defence sector work for both domestic and global market.

Engagements are currently limited to private equity dispositions, M&A advisory, Joint venture and market related advisory and valuation work.

We help foreign defence contractors and companies to enter into joint ventures with Indian private companies and vice versa, which will support the development of a sustainable supplier base for the defence sector.

Lexicon team members have extensive financial institutions coverage including the insurance, bank and specialty finance sectors. Our team has a comprehensive understanding of the specific and nuanced regulatory regimes governing these industries. Lexicon or its Firm Members have engaged and executed a number of projects in debt and equity financing and buy side and sell side M&A advisory engagement.

Lexicon active mandates include debt and equity financing for payroll lending companies as well as non-bank financial institutions in the emerging markets.

The Indian Real Estate sector is currently valued at USD 100 billion and has been growing at over 10% CAGR for the last 5 years and expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP). total FDI inflow in construction development sector (including townships, housing, built-up infrastructure) during April 2000 to September 2015 has been around US$ 24.16 billion which is about 9% of total FDI inflows during that period.

With high growth in IT and other services, rapid urbanization, burgeoning middle class and growing demand for homes, the Real Estate sector provides an attractive opportunity for Private Equity investors. It is also a capital intensive sector and contributes about 5-6% of GDP, thus providing a sizeable opportunity for PE Investors. The sector has attracted in excess of USD 15 billion in PE Investments since 2006 when FDI was opened up in the sector.

The real estate sector comprises four sub sectors - housing, retail, hospitality, and commercial.

Government in achieving the mission of "Housing for All by 2022" makes it among one of the most rising sectors.

The Indian Healthcare and Life Sciences sector is currently valued at USD 78 billion and has been growing at over 15% CAGR for the last 5 years. The sector broadly encompasses 5 key sub-segments - Hospitals, Pharmaceuticals, Diagnostics, Medical Equipment and Pharmacy Chains.

With just about 4% of GDP spend, over 20% of global disease burden and an inadequate healthcare infrastructure, the sector provides an attractive opportunity for both strategic and private equity investors. The sector has attracted investments of more than USD 20 billion in the last 5 years largely driven by several big ticket M&A transactions and more than 170 private equity transactions.

Our Firm has deep advisory and fund raising experience in the Power generation segment, specifically in Emerging Markets. We have been attached to several Coal, Gas and hydro-power developments in India for the last several years and continue to work with institutional investors and multi-national banks for fund raising and to exercise the mandate for power generation.

We are also attached to several large Solar and Wind Energy power plant in different parts of India for the last several years and continue to work with institutional investors and multi-national banks for fund raising and to exercise the mandate for power generation.

Team members from Lexicon have a significant 20-year track record serving many of the largest Media & Entertainment providers and communication companies in India.

Representing clients for equity placement, debt capital markets, M&A advisory, and Special Situations and sizable liquidity provision, Lexicon Team Members are qualified to engage on projects of significant complexity, scale and scope to meet our client requirements on a timely basis.

Indian Technology services and solutions market has grown to USD 113 billion at a 13% CAGR over the last 5 years. This growth was largely driven by services-led outsourcing offerings with large Indian IT services companies evolving into top vendors of choice globally.

Global technology sector is now seeing the next phase of growth with the emergence of SMAC (Social, Mobile, Analytics and Cloud) technologies apart from strong growth of Internet, IT Security and Payments markets.

With this background, Indian Technology sector is expected to continue to be one of the most active sectors, both for M&A and PE syndication.

Team members from Lexicon have a significant 20-year track record serving many of the largest Technology providers and communication companies in India.

Representing clients for equity placement, debt capital markets, M&A advisory, and Special Situations and sizable liquidity provision, Lexicon Team Members are qualified to engage on projects of significant complexity, scale and scope to meet our client requirements on a timely basis.