Financial Daily from THE HINDU group of publications
Friday, Mar 22, 2002
Financial Daily from THE HINDU group of publications Friday, Mar 22, 2002 |
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Info-Tech
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Hardware `Intel Capital may invest around $400 m this year' Our Bureau
BANGALORE, March 21 ``IF you look at investment years as you do wine, Vintage 2002 will be a great year,'' said Intel Capital Vice-President, and Director Worldwide Geographies, Mr Claude M Leglise. Explaining, he said that technology ideas would never stop, but entrepreneurs who quit cushy jobs this year could be expected to be the most motivated. Venture Capitalists (VCs) and financiers would have more time to assess now that there is no need to rush to invest and finally, valuations are back to reality. ``This is not intended to be mean to the entrepreneur. But now, expectation of financial returns is consistent with real returns,'' Mr Leglise said. Intel itself is ``cautiously optimistic'' about growth. ``Things will get better, but I don't know when,'' Mr Leglise said. In the PC sector, ``I am fairly certain there is growth, not much, but a little,'' Mr Leglise said. The communications sector, according to him, is still sick, and running a fever. The PC in fact could offer ``some exciting opportunity for investors'', he said. ``Imagine if I could do without a battery charger for my laptop for the seven days that I am visiting India. Intel is actually looking at investing in companies developing new fuel systems, such as converting methanol to electricity. So next time on a flight you could ask for whisky for yourself and some methanol for your notebook,'' he said. Web servers and embedded voice-only devices that are moving towards programmable platforms (read mobile phones with new applications) are other potential areas. Mobile phones could end up with as many applications around them as PC itself. Broadband to the home would also be an investment opportunity. In India, there has been a lot of investment in the late stage. ``This is wonderful, but there will not be a late stage if there is no early stage. It just marks the stage of maturity of the market,'' he said. In the next stage, the maturing needs to happen on a large scale. ``If VCs can create an infrastructure, it will really leverage the intellectual capital of the country,'' he said. As for Intel Capital's own investment, he said he hoped it would be higher, than last year's $360 million which was lower than $1.4 billion in 2000. This year, it was likely to be between $300-400 million, but no targets had been set, he said. Investment would be in companies, which would see a growth in PCs and laptops, high-end servers, cell phones, and networking and communication.
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