Financial Daily from THE HINDU group of publications
Saturday, Apr 15, 2006
Financial Daily from THE HINDU group of publications Saturday, Apr 15, 2006 |
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Industry & Economy - Foreign Direct Investment SAIF outlines major investment plans
Preeti Mehra
Cash cow Rough calculations suggest SAIF Partners total investment in 2006 and 2007 would be around $400 million The firm is also in the process of finalising a major investment in the media sector
New Delhi , April 14 Private equity firm SAIF Partners, which has till now invested about $100 million in India, is planning to scale up its investments in the country in a big way. According to Mr Ravi Adusumalli, General Partner, Head of India Operations, SAIF Partners, the firm is scouting for buys across sectors including media and auto components and is in the process of setting up a third fund of about $ 800 million. Approximately 30 per cent of the total outlay of the third fund, or $240 million, will be invested in to India. "We have been scaling up our investments in India every year. We will invest about 20 per cent from our second fund (of $650 million) in India," Mr Adusumalli said. SAIF Partners third fund will be operational by the next year. Rough calculations suggest that SAIF Partners' total investment in 2006 and 2007 in India would be around $400 million. The private equity firm is also in the process of finalising a major investment in the media sector. "We have formed a joint venture with a media company to invest in a new line of business related to the electronic media. We have already executed this in China and have been quite successful," Mr Adusumalli said. SAIF has outlined an investment of over $30 million towards this deal that is likely to be completed in the next few weeks. The deal would mark a shift in SAIF Partners' strategy of making average investments of $15-20 million. SAIF Partners is also trying to shake off its IT oriented image and is looking to make investments across sectors including in the manufacturing domain. In India, SAIF Partner's investments include SlashSupport, Sify.com, IL&FS Investsmart, Makemytrip.com and Jindal Poly Films Ltd. "We are increasingly branching outside of technology as can be seen from our most recent investment in Jindal Poly Films, a manufacturer of flexible packaging films," Mr Adusumalli said. Jindal Poly Films is also SAIF Partner's first investment in the manufacturing sector. SAIF Partners was established in 2001 with investments from Softbank Corporation and Cisco Systems.
Related Stories: More Stories on : Venture Capital | Foreign Direct Investment
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