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HindustanTimes Sun,20 Apr 2014

Banking

Private equity sees a better year ahead
Rachit Vats, Hindustan Times
Mumbai, January 29, 2013
First Published: 22:14 IST(29/1/2013)
Last Updated: 22:18 IST(29/1/2013)

After seeing a tough 2012, the private equity industry in India is hoping to sell some of its investments this year to exit with profits in 2013-14, says a report by consulting firm Grant Thornton unveiled on Tuesday in Mumbai.

PE investments in India dipped 15% for the year ending December 2012.

“We are extremely positive about the industry which is going through a cycle and presently in a consolidation phase,” said Harish HV, Partner, India Leadership Team at Grant Thornton India.

“Last year was particularly tough as the potential for return on investments has not panned out as per expectations. Investors found it tough to recover the principal amount and hopefully there will be more exits this year and the next,” said Harish.

The reports suggests PE will focus on sectors such as pharma, food and beverages, consumer goods, education and ecommerce in 2013.

Top sectors for PE have been real estate, financial services, telecom, IT and ITES, health and life sciences, infrastructure and manufacturing.

“With 1-2 investment cycles behind it the Indian PE industry is more mature. Investors have gained from experience, are more cognizant of the risks of doing business in India,” said Darius Pandole, Partner, New Silk Route Advisors, Indian Private Equity and Venture Capital Association.


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