Burmans to float $150m PE fund

NEW DELHI: The sons of Dabur India chairman VC Burman—Mohit and Gaurav—are floating a private equity fund to invest in Indian companies. Even though a source close to Mohit Burman said it was premature to comment on the fund, an international media report said the Burmans would set up the Indian arm of the UK-based Promethean.

The media report said Sir Peter Burt, former chairman of ITV, would be the chairman of the India fund. Promethean India would be listed on London’s Alternative Investment Market, and the fund has reportedly lined up investors like Bank of Scotland, where Sir Peter was once chief executive, and Alliance Trust. Insinger de Beaufort has been appointed nominated adviser to the company.

Promethean India will have offices in Delhi and Mumbai, and has reportedly lined up a few deals. It is learnt that the fund could be in the region of $150 million but this could not be confirmed. Incidentally, Mohit Burman’s brother Gaurav Burman is a principal with Promethean UK. Gaurav will also be involved in the running of the India fund.

While the fund is a new initiative, the Burmans have been making investments in their personal capacity. They had in 2005 acquired a 14.5% stake in Punjab Tractors in which they recently sold to Mahindra & Mahindra. In addition, the family has also made investments in Vishal Mega Mart, Lord Krisha Bank, Fidelity India and in ABN Amro Indian operations.