Therefore, it’s not surprising that a few sectors
become the flavour of the year at some point in time and others occupy those slots at some later stage. At present, PE players are gung-ho about investments in infrastructure. At a recent seminar, Shivani Bhasin, a Principal in IDFC private Equity, said that India will invest nearly $450 billion in infrastructure over the next five years, and thanks to several incentives given by the government to private players, investment in the sector will double to 8% of the country’s GDP in the same period.
The other exciting sectors for the PE firms now are media and telecom infrastructure. Warbug Pincus has invested $33.33 million for a 7% stake in Dainik Jagran. The opportunities are so large that no one wants to miss the bus in the print media; global private equity investor Blackstone Group has invested $275 million in the Hyderabad-based Ushodaya Enterprises, the owners of Eenadu and ETV. Temasek Holdings, Investment Corp. of Dubai, Goldman Sachs Group, and others have invested $1 billion for a 10% stake in Bharti Infratel (the wholly-owned telecom tower subsidiary of Bharti Airtel). In addition, Kohlberg Kravis Roberts & Co put in $250 million for an estimated 2% stake in Bharti Infratel.
Competition and competitors are yet another set of parameters that investors like to dwell upon before zeroing in on their investment decision. Putting forth his view on the issue, Anubhav Gupta (Investment Analyst, Kim Eng Securities India) says, “The current competitive advantage possessed by the investee firm, the investee’s market and competitive position and the current competitors are certainly considered by the investor.” Therefore, New York Life Investment Management India Fund pumped in Rs.225 million in Avesthagen, a systems biology firm, because the latter has the potential to develop valuable intellectual property portfolio. Similarly, the PE firm’s $25 million infusion in Sarvana Global Energy was because of the cost competitive edge of the latter.
become the flavour of the year at some point in time and others occupy those slots at some later stage. At present, PE players are gung-ho about investments in infrastructure. At a recent seminar, Shivani Bhasin, a Principal in IDFC private Equity, said that India will invest nearly $450 billion in infrastructure over the next five years, and thanks to several incentives given by the government to private players, investment in the sector will double to 8% of the country’s GDP in the same period.The other exciting sectors for the PE firms now are media and telecom infrastructure. Warbug Pincus has invested $33.33 million for a 7% stake in Dainik Jagran. The opportunities are so large that no one wants to miss the bus in the print media; global private equity investor Blackstone Group has invested $275 million in the Hyderabad-based Ushodaya Enterprises, the owners of Eenadu and ETV. Temasek Holdings, Investment Corp. of Dubai, Goldman Sachs Group, and others have invested $1 billion for a 10% stake in Bharti Infratel (the wholly-owned telecom tower subsidiary of Bharti Airtel). In addition, Kohlberg Kravis Roberts & Co put in $250 million for an estimated 2% stake in Bharti Infratel.
Competition and competitors are yet another set of parameters that investors like to dwell upon before zeroing in on their investment decision. Putting forth his view on the issue, Anubhav Gupta (Investment Analyst, Kim Eng Securities India) says, “The current competitive advantage possessed by the investee firm, the investee’s market and competitive position and the current competitors are certainly considered by the investor.” Therefore, New York Life Investment Management India Fund pumped in Rs.225 million in Avesthagen, a systems biology firm, because the latter has the potential to develop valuable intellectual property portfolio. Similarly, the PE firm’s $25 million infusion in Sarvana Global Energy was because of the cost competitive edge of the latter.
in functions such as aircraft maintenance, engine storage and landing/take-off. With an impressive list of satisfied customers, that include corporations like Taikoo Aircrafts Engineering and Airport Authority of India, Bry-Air is surely going places. Surprisingly, even after setting up an additional plant in Malaysia, to cater to the fast-expanding South-East Asian market, the company was not satisfied with its expansion spree. So, it acquired Germany-based, A+H Hamburg, to become the first Indian HVAC&R (Heating, Ventilation, Air Conditioning & Refrigeration) company to acquire a foreign company. According to Pahwa, “We are actively looking at a couple of other acquisitions in Europe. With a licensee in Brazil and an associate plant in the US, we have our network all over the world.” Not bad for a company that expects to touch a turnover of Rs.230 crore in the FY-09 and Rs.400 crore by 2010-11.
professionals. He divulges to 4Ps B&M that although the company is neck deep in providing T&D programmes to almost the whole of the BPO industry, but managing the HR function within the organisation is a different ball game altogether. George feels that the biggest challenge at HMIL is to retain quality manpower that can further impart the much needed training services. At HMIL, the HR Manager plays an integral role in the organisational success via his knowledge and advocacy of people. George elaborates, “This advocacy includes creating an environment that motivates people. To deal with the challenges, we are fostering effective methods of goal setting, communication and empowerment through responsibility and building employee-ownership towards the organisation.”
latest luminary on the block - the new Executive Chairman of Lowe, Balki, who has his very special take on Creativity. The Director of 2007’s acclaimed film Cheeni Kum – all set to put together another film, PA, starring both, the Big and Small Bachchan- strongly believes that creativity is not necessarily about humour or popular hindi street-speak, but engagement and interest-value based on basic consumer insights. “For me, creativity in advertising is anything that is interesting and engaging… anything that kills boredom. Creativity is the biggest currency that drives effective and memorable advertising. It is not strategic inputs, marketing warfare, business plans or gimmicks, but how interesting you are as a person, brand, commodity of organization. Creativity need not – as some believe – only follow the haha (entertainment) route. It can make you cry, think, be scared, anxious, romantic, nostalgic… anything that connects. The idea is to see creativity as a powerful instrument that engages the reader /audience /consumer to reach a new level of empowerment”.
companies are setting up shops on the Chinese mainland, especially when it comes to the IT industry, is because of the government allowing huge incentives for investments in these areas, which includes tax holidays and reduced land rentals and import charges. And these advantages are not something which the pharma industry is devoid of too. Talk about Ranbaxy which has decided to convert China into a major manufacturing hub and a market as a whole – in other words, a complete make and sell model in place! Ramesh Adige, Executive Director, Ranbaxy, while commenting on the same pronounces, “China is emerging as a good destination to source cost-effective ‘Active Pharmaceutical Ingredients’ and intermediates which will allow companies like Ranbaxy to economise its cost of production…” And its not just Ranbaxy wanting to gain control over Chinese drugs, but also Dr. Reddy’s, which besides buying cheaper raw materials from China has also set up a JV in Shanghai where it employs about 100 people who develop drugs for the Chinese market and conduct pilot tests for drug sales in China as well.