Market Overview

Aditya Birla Capital and Värde Partners Form Strategic Partnership to Invest in Stressed and Distressed Assets in India


Aditya Birla Capital Limited (ABCL) and Värde Partners (Värde), today
announced an exclusive strategic partnership to pursue investments in
stressed and distressed assets in India.

Operating through a joint platform, both parties will evaluate
investments across sectors, focusing on the acquisition, restructuring
and resolution of the substantial supply of non-performing assets in
India as well as special situations financings. Given the current
landscape and further prospects in asset reconstruction in India, ABCL
and Värde believe there is an attractive pipeline for strong capital
deployment opportunities over the next several years.

Ajay Srinivasan, Chief Executive of ABCL said, "The ARC business is a
strong addition to the businesses we already have at ABCL. We see a
large opportunity in the distressed space, especially in the
mid-corporate segment. One of the things that we bring to the table as a
Group, is that we understand how to run many businesses. We are looking
at leveraging this skill set as we enter this new business. Thus, our
decision to enter into a joint venture with Värde Partners, who bring
restructuring expertise to augment our core strength. The expertise and
experience of both ABCL and Värde, makes this a strong combination to
capitalise on the opportunity that India presents."

Ilfryn Carstairs, Co-CIO of Värde Partners said, "We see India as a core
market for Värde and a critical part of our long-term strategy in
Asia. We are particularly excited to partner with an organisation with
the quality reputation and established relationships of ABCL to address
what we believe will be a very large, multi-year opportunity. Värde's
deep, global restructuring expertise developed over the firm's 25-year
history will be complemented by Aditya Birla's strong team and
experience in Indian credit and asset markets."

On receipt of necessary approvals, both parties will jointly own and
control the platform, which will leverage ABCL's expertise in the
financial services domain, the Aditya Birla Group's wide operational
experience across sectors and Värde's established capabilities in global
credit and value investing strategies. Värde currently manages about
US$14 billion globally, and has invested nearly US$500 million in India
in the past five years across corporate stressed, distressed, special
situations and lending assets. With regional headquarters established in
Singapore in 2008, Värde expects to open its fifth Asia office in Mumbai
later this year, subject to regulatory approvals.

About Aditya Birla Capital Ltd.

Aditya Birla Capital Limited (ABCL) is the holding company of all the
financial services businesses of the Aditya Birla Group. With a strong
presence across the life insurance, asset management, private equity,
corporate lending, structured finance, project finance, general
insurance broking, wealth management, equity, currency and commodity
broking, online personal finance management, housing finance, pension
fund management and health insurance business, ABCL is committed to
serving the end-to-end financial services needs of its retail and
corporate customers. Anchored by more than 16,000 employees, ABCL has a
nationwide reach and more than 2,00,000 agents / channel partners.

Aditya Birla Capital is a part of the Aditya Birla Group, a US$44.3
billion Indian multinational, in the league of Fortune 500. Anchored by
an extraordinary force of over 120,000 employees, belonging to 42
nationalities, the Aditya Birla Group operates in 35 countries across
the globe.

About Värde Partners

Värde Partners is an approximately US$14 billion global alternative
investment firm that employs a credit-oriented, value-based approach to
investing across a broad array of geographies, segments and asset types,
including real estate, corporate credit, mortgages, specialty finance,
transportation and infrastructure. Värde Partners sponsors and manages a
family of private investment funds. Founded in 1993, Värde Partners has
regional headquarters in Minneapolis (USA), London and Singapore.

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