India

Private equity and venture capital research, reports and surveys with a focus on India

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• An overview of private equity in India according to ICICI Bank 30 Apr 2009. Source: ICICI Bank. Amit Ratanpal. 2008, the year, which shook the entire globe, left an unforgettable impression on the history of the financial world. Even though India is predominantly a domestic consumption driven economy, it suffered from global volatility and uncertainty. During the year, there has been a slowdown in the economy across the board. Auto sales have plunged on lagged impact of monetary tightening, exports decelerated, industrial production took a backseat on falling capital goods and intermediate goods output and credit growth has faltered, according to Amit Ratanpal, head of private equity at ICICI Bank.

• Pressing needs 09 Dec 2008. Source: Asia Private Equity Review (APER). Infrastructure investment in India is expected to slow in the wake of the global credit crunch, according to this Asia Private Equity Review (APER) article. In May 2006, the then Finance Minister of India and new Minister of Home Affairs Palaniappan Chidambaram announced the most ambitious infrastructure development plan ever for his nation. He revealed that the government wanted to attract $150bn of overseas investment over a period of ten years to upgrade India’s roads, power generation and other facilities in order to entice foreign manufacturers. It has become clear that this is going to take longer.

• Private equity investing in India: a survey of private equity investors and their portfolio companies 24 Sep 2008. Source: KPMG. This is an exciting time to be involved in private equity in India. Large global PE investors are either setting up dedicated Indian funds or increasing allocations for Indian investments in their global portfolios. Fund sizes have increased dramatically from $25m to $100m just a few years ago, to between $400m and $1bn. Average deal sizes have also increased to about $50m in 2007, while the average deal was $8m in 2002, according to this KPMG India survey.

• Quarterly India Venture Capital Report 03 Sep 2008. Source: Dow Jones VentureSource. Venture capitalists were eager to back advertising start-ups in India during the second quarter of 2008, according to the Quarterly India Venture Capital Report from Dow Jones VentureSource. The report found that $89m, nearly 37 per cent of the region's quarterly investment total, went to five advertising/marketing companies, more than any other sector. Overall, India attracted $238m in venture investment with 17 deals closed in the second quarter, a 120 per cent increase over the $108m invested in 12 deals during the same period in 2007.

• Connected through private equity funds: investors in Europe connect with India through private equity funds 13 Aug 2008. Source: Asia Private Equity Review (APER). For decades, institutions based in the UK have been the most active investors in India’s private equity scene. The recent string of commitments announced by the CDC Group is further testimony to this, according to Asia Private Equity Review (APER).

• Venture capital investment in India reaches a record $928m in 2007 27 Feb 2008. Source: Dow Jones VentureSource. Annual venture capital investment in India skyrocketed 166 per cent in 2007, according to Dow Jones VentureSource. Consumer/business services and web-related companies accounted for more than half of all deals.

• The Indian Stock Market – Continued Boom or Impending Bust? 06 Feb 2008. Source: Evalueserve. During 2005, India’s economy grew by 9% and reached US$ 800 billion, and during 2006, it grew by another 9.2% to reach US$ 910 billion (in nominal terms). At the same time, during the last 16 years, i.e., 1991–2006, annual inflation—as measured by the average Wholesale Price Index (WPI)—has been approximately 6.7%, and given the savings rate and liquidity in the system, our analysis shows that the annual inflation in the country will likely to hover around 5% during the next 14 years (i.e., until 2020). So, assuming a constant exchange rate where one US Dollar equals 40 Indian Rupees,1 India’s economy is likely to be US$ 1,030 billion in 2007, US$ 1,490 billion in 2010, and around US$ 5,040 billion in 2020 (all in nominal terms). This implies that including inflation, there will be approximately a five-fold increase in India’s economy between 2007 and 2020.

• Evalueserve's 'An Indispensable Guide to Equity Investment in India' 17 Oct 2007. Source: Evalueserve. Over the past several years, investors have earned massive profits in the Indian market. However, beyond the tech-heavy activity that has driven much of these profits, there are many new and interesting areas that private equity and venture capital firms are now aggressively looking to take advantage of, Evalueserve research found.

• Market for Funds Investors 05 Sep 2007. Source: Asia Private Equity Review (APER). Funds of varied sizes have been established in India Aside from China, India has to be the next most vibrant market for limited partners seeking to invest in promising fund management firms. In the first half of 2006, eight fund management firms’ fund raising efforts added an additional US$1.12 billion to the market.

• A tale of two sectors: what can Indian telecom firms teach the power industry about reforms? 06 Jun 2007. Source: Knowledge Wharton. The casual visitor to India, says Knowledge Wharton, might find it hard to believe that it houses one of the world's hottest economies - one increasingly mentioned in the same breath as China's. In India, shabby airports, potholed roads and clogged ports remain the norm, and major cities suffer regular brownouts, especially during the summer when demand for electricity surges. The government estimates that India will need to spend $150bn over the next seven to eight years to bring its infrastructure up to par.

• Manufacturing in India: opportunities, challenges, and myths 16 May 2007. Source: KPMG. India represents an economic opportunity on a massive scale, says KPMG. China and India are likely to be the world’s two biggest economies by mid-century, and although India has underperformed in the first lap of the growth race, there was a strong possibility that India may well move ahead. Although India is still seen by industrial investors as an economy where risk is higher and the business environment more problematic than in rival Asian investment locations, India also offers some advantages in the region.

• The Indian growth phenomenon 14 Feb 2007. Source: Actis Capital. While much has been written about India’s booming consumer class, Actis explores why income and demographic trends are fuelling sustained growth and looks at the exciting opportunities this presents.

• Private equity in India's banking and financial services industry 07 Feb 2007. Source: India Venture Capital Journal. The Indian banking and financial services industry is opening up new opportunities for investment, says the India Venture Capital Journal. This report contains analysis and surveys of the active VC/PE players involved in the industry.

• Beyond Taj Mahal 13 Dec 2006. Source: Asia Private Equity Review (APER). Indian companies are assuming a role on the global private equity divestment scene, says APER. For more than half a century, the notion of going global has been an alien subject to Indian corporations.

• Indian pharma industry to look beyond the generics market Industries 06 Dec 2006. Source: KPMG. India is set to become a regional hub for R&D, manufacturing and exporting, says KPMG. Multi-national companies are returning, but they believe considerable regulatory and infrastructure challenges remain.

• The new breeds 06 Dec 2006. Source: Asia Private Equity Review (APER). Two different profiles of private equity managers are emerging in China and Indian, says APER, while, they discover, the Asian private equity party is still in full swing.

• China or India: Which is the better long-term investment for private equity firms? 18 Oct 2006. Source: Knowledge Wharton. India and China are both vast countries just opening to development, says Knowledge Wharton, filled with opportunity and risk for private equity investors. Inevitably, the two countries' rising economic fortunes invite debate over which offers the better climate for investment.

• An Indian exit ... in London 06 Sep 2006. Source: King Stubb & Kasiva. A backgrounder from King Stubb & Kasiva for private equity players that are interested in listing Indian companies on the UK's AIM market.

• Manufacturing in India - opportunities, challenges, and myths 30 Aug 2006. Source: KPMG. India represents an economic opportunity on a massive scale, says KPMG. China and India are likely to be the world's two biggest economies by mid-century, and although India has underperformed in the first lap of the growth race, there was a strong possibility that India may well move ahead.

• Private equity investments in India cross $2.3bn during 2005 28 Jun 2006. Source: Venture Intelligence India. While late-stage and publicly-listed companies cornered over 60 per cent of private equity investments during 2005, Venture Intelligence India's study shows that last year also witnessed a revival in early-stage investments.

• 2006 Update to Granting Stock Options in India 01 Jun 2006. Source: Fenwick & West. Fred M Greguras. This is an overview of the legal and strategic issues related to a U.S. parent company granting stock options to employees of its Indian subsidiary, including consideration of exchange controls, securities laws and obtaining possible tax benefits for an optionee.

• 2006 update to structuring venture capital and other investments in India 10 Apr 2006. Source: Fenwick & West LLP. Fred M Greguaras, Blake Stafford, and S R Gopalan. Many US and other foreign investors are evaluating alternatives for investments into software development, business process outsourcing, drug discovery and other services companies based in India, says Fred M Greguaras, Blake Stafford, and S R Gopalan of Fenwick & West.

• Guide to mergers and acquisitions in India 2005/2006 01 Apr 2006. Source: Baker & McKenzie. With a fast growing consumer market and large reserves of both natural and human resources, India has seen strong FDI inflows since 2003, says Baker & McKenzie. India provides substantial federal incentives for new investors, like concessional duties on the importation of capital goods and enhanced freedom to source external commercial loans.