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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (10168)	12/21/1999 11:44:00 AM
From: Mohan Marette	Respond to of 12475

GE Capital (India) plans to pick stake in start-ups gecapitalindia.com Tina Edwin(fe) NEW DELHI, DECEMBER 20: GE Capital is planning to pick up stake in a number of small companies engaged in manufacturing niche products or owning proprietary technologies. The subsidiary of the US-based multinational corporation, General Electric, has already invested Rs 250-300 crore in Indian companies in the last one year, GE Capital, president for Asia region, Pramod Bhasin, said at the Associated Chambers of Commerce and Industry of India's annual meet here on Monday. Speaking at a session on 'Innovative Financing of Knowledge Industries', he stated, "We will typically come to companies that are two-three years old, not necessarily making money but have market access." He felt that funding of sound projects in information technology would not be a problem as venture capitalists, strategic investors, angel investors and other financiers were hungry for investment options in the country. Moreover, Indian financial institutions were already gearing up to invest in new ventures and angelinvestors were ready to provide the seed capital, he added. Bhasin, however, cautioned that mortality rates of new projects was very high. "Fifty per cent of the companies would fail and 50 per cent of the people will lose money. But among those which are successful, one investment would give return that is 100 times of the actual investment thus compensating loss suffered by other projects." He stated that companies will have to introduce more complete transparency, keep their books open, dilute promoter stake, and be willing to listen to investors sitting by their side to attract funds inflow. One of the best options available to Indian companies would be to go for an initial public offer to raise funds. Companies could use the money raised through IPOs for acquisitions and build up corporations. Bhasin felt that the next millenium would belong to India as it has unparalled advantages in terms of resources. GE Capital has already identified India has one of the important destination and by next year, it proposes to employ up to 15,000 people directly or indirectly in knowledge based business here. He cautioned businessmen that internet would be a "greater destroyer" of profit margin. He pointed out that the world is going through fundamental change due to the growth of Internet.