$ 40 Billion in PE investment for India Inc expected
Private equity (PE) investors are looking at India with different hopes. They feel that the emerging economy has the potential of providing them with good return on investment of their investments.
A PricewaterhouseCoopers (PwC) India report estimated that India has the potential to get PE funding of $40 billion (over Rs.2.36 lakh crore) by 2025. It was based on the survey conducted with the 40 PE firm partners.
The current growth friendly government has improved the PE sentiments. The large young population has induced higher consumption rates and the realistic valuations, globally competitive businesses, rising private entrepreneurship, the ability to support businesses going global and innovation are few of the reasons for the continued growth of India Inc.
Infrastructure and Manufacturing sector will see the major part of the PE investments in the coming years. This was predicted by Sanjeev Krishan, Leader — Private Equity PwC India. The PE investors are also looking for solid Indian companies with proven local presence, to expand in the overseas markets. The PE investors will do proper due diligence before making their choice of companies and the governance quality would become a differentiator.
The survey also mentioned that more mature forms of investment, such as buyouts, would start taking place. There are a lot of opportunities in angel/venture capital in this sector.
Source- The Hindu Business Line
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