Future Ventures wants to do a Berkshire here
Kishore Biyani's Future Ventures is looking to create an economic environment that will allow entrepreneurs to flourish and prosper in the country. India Inc's hotshots
By TNN |
MUMBAI: Future Ventures (FVIL), Kishore Biyani���s latest initiative, is looking to create an economic environment that will allow entrepreneurs to flourish and prosper in the country.
FVIL, which has filed a draft prospectus for an IPO, is looking to do that by following the successful business models of giant global corporations such as Warren Buffett���s Berkshire Hathaway, Sweden���s Investor AB and Hong Kong���s Hutchison Whampoa.
These companies primarily invest in fast-growing businesses driven by successful entrepreneurs and help them become global-sized operations. And the returns that they deliver to investors are enormous. For instance, Berkshire Hathaway, which listed in 1987, has delivered a return of 48% in the past two years and a 4,484% since listing.
���FVIL is seeking to create, build, acquire, invest in and operate innovative and emerging businesses in India���s rapidly growing consumption-led sectors,��� the firm���s draft prospectus states. An investment banker said that the idea behind the venture is to democratise entrepreneurship. FVIL���s listing is also likely to broad-base and democratise equity ownership in the country. Investment banking sources said that the firm would have been willing to allow retail investors to subscribe to 100% of the issue but the laws don���t permit that.
FVIL, which has filed a draft prospectus for an IPO, is looking to do that by following the successful business models of giant global corporations such as Warren Buffett���s Berkshire Hathaway, Sweden���s Investor AB and Hong Kong���s Hutchison Whampoa.
These companies primarily invest in fast-growing businesses driven by successful entrepreneurs and help them become global-sized operations. And the returns that they deliver to investors are enormous. For instance, Berkshire Hathaway, which listed in 1987, has delivered a return of 48% in the past two years and a 4,484% since listing.
���FVIL is seeking to create, build, acquire, invest in and operate innovative and emerging businesses in India���s rapidly growing consumption-led sectors,��� the firm���s draft prospectus states. An investment banker said that the idea behind the venture is to democratise entrepreneurship. FVIL���s listing is also likely to broad-base and democratise equity ownership in the country. Investment banking sources said that the firm would have been willing to allow retail investors to subscribe to 100% of the issue but the laws don���t permit that.
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FVIL���s investments and track record so far suggests that it has invested in consumption-led sectors. More than Rs 150 crore has been invested a in a slew of companies so far. They include women���s apparel firm Biba, My Dollar Store franchisee Sankalp Retail and sportswear retailer SSIPL. Recently, it also bought 70% in rural retailer Godrej Aadhar. More investments will be made in similar consumer sectors.
The companies that FVIL has invested in will also benefit from access to the Future Group���s ecosystem with its multiple retailing formats, thousands of suppliers and vendors and millions of customers. ���The Future group has successfully demonstrated the ability to identify, incubate and grow various consumption-led businesses in India. FVIL will have access to Future Group���s management team, insights and relationships that will aid in more effectively advising and managing business ventures,��� says a report by borkerage firm Enam Securities.
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