Indian PE market to triple at $7 bn by 2010
India Inc remains strong on foreign investors' radar with the private equity market in the country set to more than triple to nearly $7 billion by 2010, from $2.2 billion last year, a new study shows.
By PTI |
NEW DELHI: India Inc remains strong on foreign investors' radar with the private equity market in the country set to more than triple to nearly $7 billion by 2010, from $2.2 billion last year, a new study shows.
US-based global business consulting firm Bain & Company said in a report on Thursday that a growing consumer class in the country and increasingly differentiated skill set are two major economic forces driving the estimated surge in the size of the Indian private equity market.
However, PE investments in the country through 2010 were expected to remain focussed on traditionally smaller growth-capital investments.
Transformational mega-deal buyouts, similar to those in the US and other developed markets, are far more difficult to execute here given government limits on access to foreign leverage and the reluctance of family-controlled businesses to cede control, it said in its India Private Equity Outlook report.
However, recent signs of a change in attitude could sign the emergence of a nascent buyouts market, the report added.
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"We have observed early signs that the traditionally strong opposition to change in control issues may be starting to diminish," Bain & Company's Private Equity Practice division head in India and author of the report, Sri Rajan said."Though it's too early to state categorically that a sea change is underway, removal of this roadblock could pave the way for the emergence of a private equity buyouts market in India."
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