7 thoughts on “Private Equity continues to pour into India”

  1. As more money is invested in India – most Indian managers will become mediocre.
    Most Indian enterprises excelled at a time when capital was constrained.
    Where have you gone, Mera India?

  2. I think India will continue to grow above 8% in 2007. Manufacturing, infrastructure and agriculture are going to be the main growth engines along with IT. The only worry is going to be inflation (Wholesale Price Index) which catapulted from 5.58 percent to 6.12 percent, its highest level in two years.

    The link below shows what the Indian Finance Minister thinks about inflation.

    Chidambaram says inflation ‘spurt’ a concern

  3. I agree with petrabro’s comment. I guess Indian enterprenuers lack function of risk-taking.

    Currently India’s infrastructure SUCKS (poor BW performance) not to mention local provider’s control over subscriber’s connection (mac controlled). Not sure how the local infrastructure will support triple play (maybe 10 years). Then again, the the investors are looking at long term growth given India is a few years behind the West.

    Just thought I’d mention how this investement stacks up.

    3i gets 6.5% (in 2005 3i got 33%)
    cisco gets 4%
    oif gets 18%


  4. Thought I’d add a note to the discussion as I am a “microfinance venture capitalist” currently living in Delhi and working to find microfinance firms to invest in, in India.

    While I agree with the comment above regarding the poor nature of India’s infrastructure, it only takes a 15 drive on the roads to see that there is certainly no lack of risk-taking in India.

    From the smaller world that I play in, there are plenty of entrepreneurs running small financial services firms who are 1) working on tight budgets to do big things, and 2) are constantly thinking about the future and how to achieve profitable growth.

    On the larger scale, I think we will continue to see big things on the Sensex this year to 18 months, whether they come in the form of earnings announcements or IPOs. The following sectors deserve a lot of attention from investors: Infrastructure, financial services, telecom, and consumer retail.

    You can keep up with my musings on India at http://www.bankerinindia.typepad.com

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