| Investing in India has been a prime factor for the rise | | | | institutional and high net worth clients globally. UAE |
| of the Indian economy in terms of gross domestic | | | | national Khaled al-Muhairy, the Dubai-based alternative |
| product (GDP) and vice-versa. Investment advisors | | | | investments company, was also one of the first Gulf |
| who have been guiding investors on the prospects of | | | | investment funds to embark on India as an |
| favourable investments in India are quite optimistic. In | | | | investment destination during the pre-crisis period as |
| such a trend quite evident lately, the private equity | | | | the Gulf looked forward to surplus petro funds for |
| (PE) and venture capital (VC) investments into India | | | | investing in India. |
| have been somewhat remarkable. This trend is | | | | Further, PE players have invested more than US$ 300 |
| further strengthening the confidence of all investors | | | | million in companies related to food processing, |
| alike. | | | | agri-based sectors during January-June 2010, as per a |
| According to a recent report released by global | | | | Grant Thorton report. In calendar year 2009, PE |
| consultancy Bain & Company, titled 'India PE Report | | | | investments in these sectors were about US$ 398 |
| 2010', there is renewed confidence among the leading | | | | million as against US$ 187 million in 2008 and US$ 4.3 |
| global PE investors about the Indian market. Private | | | | million in 2007, respectively. |
| equity and venture capital investments are projected | | | | All these indicators signal the vociferous favour that |
| to reach US$ 17 billion (around Rs 80,000 crore) this | | | | India seems to have found from the PE investors. |
| year owing to some strong impetus received from | | | | Private equity investments in India in May 2010 alone |
| strong economic growth in the country. As per a | | | | grew by almost 200 per cent as compared to the |
| study by Venture Intelligence, private equity firms | | | | corresponding period last year. During the month of |
| have invested about US$ 2,364 million across 67 | | | | May, financial services, materials and healthcare |
| deals during the quarter ended June 2010. | | | | segment were the most favoured sectors for PE |
| Funds focused on Indian equity are becoming | | | | funding. Major PE investments during May were in |
| favourites with these global investors. Investment | | | | companies like Avinja Properties, National Stock |
| firm, Evolvence Capital, which is based out Dubai, | | | | Exchange, Fortis Healthcare and Pegasus Assets |
| announced its plan on July 21, 2010, to launch its third | | | | Reconstruction by PE firms such as Kohlberg Kravis |
| India-focussed fund - The Evolvence India Fund II - | | | | Roberts & Co (KKR), Temasek Holdings' and DE |
| targeting to attract a corpus of US$ 400 million from | | | | Shaw etc. |