The Hindu Business Line : Argonaut plans more investments in India

US-based private equity fund Argonaut, which manages $2 billion worth private equity investments across the world, has committed to make India its second biggest investment destination in the two-three years time, its Managing Director, Mr Anil Khatod, has said.

Until now, Argonaut Private Equity has $40 million worth investments in Indian companies, including the $10-million funding to Chennai-based Midas Communication Technologies. The fund has also committed $20 million to Blue River Capital, another private equity fund in India. The fund has also made $10 million worth investments in Indian companies through stock markets.

Mr Khatod, who took over as the fund's Managing Director last week, said Argonaut was also in the final stages of committing $12-15 million investment in another Indian venture.

Long-term plan

"We are focused on long-term effort in investing in Indian companies. We feel the Indian economy is at a stage now where it can absorb larger amount of capital flow," he said.

Currently, after the US, Australia accounts for the fund's second biggest share of its investments at about $300 million.

Huge potential

Mr Khatod said he was bullish on infrastructure, construction, engineering, energy and telecom, precision manufacturing, auto parts, pharmaceutical and textile sectors in India. There was also huge potential in the domestic retail sector as well, he said. Typically, the fund could invest anywhere between $1 million and $200 million in a single company. "But, $10-50 million is our sweet spot," he said.

Mr Khatod said Argonaut would continue with its investments in companies as long as the companies generate more value.

In India, Argonaut is being assisted by associates such as Edelweiss Capital to identify the right companies for investments. "The combination of Argonaut's financial resources and proven track record with Anil's broad network of contacts and business management, investment and M&A experience will be highly valuable to growing companies in India," said Mr Rashesh Shah, Managing Director & CEO, Edelweiss Capital.

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