Released on: October 10, 2007, 9:16 pm

Press Release Author: PRCC

Industry: Financial

Press Release Summary: Research conducted by the global research and analytics firm,
Evalueserve, shows that if current trends continue, India will receive US $13.5
billion in Private Equity (PE) funding during 2007, ranking it among the top seven
countries in the world. And, forecasts show this funding could rise to almost $20
billion in 2010 - a thousand-fold increase since the $20 million invested in 1996.


Press Release Body: Research conducted by the global research and analytics firm,
Evalueserve, shows that if current trends continue, India will receive US $13.5
billion in Private Equity (PE) funding during 2007, ranking it among the top seven
countries in the world. And, forecasts show this funding could rise to almost $20
billion in 2010 - a thousand-fold increase since the $20 million invested in 1996.

In its newly released report, "An Indispensable Guide to Equity Investment in
India", Evalueserve claims there are over 366 investment related firms currently
operating in India and another 69 have raised - or are in the process of raising -
funds and are planning to start their operations soon. In total, these PE firms
seem to have amassed US $48 billion earmarked for investment in India between July
2007 and December 2010. "Several firms that we talked to also mentioned they would
be willing to invest even more if they saw good investment opportunities," said
Evalueserve Chairman, Dr. Alok Aggarwal. This stands in stark contrast to 1996, when
Indian companies only received a total of US $20 million. Indeed, if Indian
companies do receive US $20 billion in funding during 2010, this would represent a
stunning thousand-fold increase over a period of just fourteen years.

However, beyond the tech-heavy activity that has driven much of the earlier
investment opportunities, there are many new areas that private equity and venture
capital firms are now aggressively looking to invest in. These include
manufacturing, financial services, healthcare, real estate and construction.
However, Evalueserve cautions that a solid understanding of the unique Indian market
and some behavioral adjustments will be required from investment players who are new
to India in order to maximize returns for their investors. In addition to the
required capital, proper research in a challenging market, subtle and savvy
managerial skills, and a healthy dose of patience must also be invested to ensure
success.

Editor's Notes
o PE Firms have already raised US $48 billion earmarked for India between July 2007
and December 2010.
o Three groups of rapidly growing sectors:
 Global Rapid Growth - IT, BPO, KPO, Drug Research and Clinical Research
Outsourcing, Engineering Services Outsourcing, etc,
 Indian Domestic Market - Retail, Travel and Hospitality, Healthcare,
Entertainment, Education
 Manufacturing and Infrastructure - e.g., Automobiles, Automotive
Components, Electrical and Electronic Components, Speciality Chemicals, etc.
o Opportunities for PE's Investing in India: Cherrypick companies who do well from
BSE-100 and BSE-500 companies. Indian government will open the banking sector to
competition and liberalize other sectors like metals & mining, utilities & capital
goods, attracting more PE, VC, and Hedge Funds. Investing in Indian Family run
businesses will require different management techniques and patience in the
increasing M&A trend in India.
o Best Practices in PE Investments: Investors should be diversified in the listed
above. Existing hi-tech companies in India will contribute to only 10% of the
overall growth of Indian economy. India should not be compared to other countries
like China & US to track trends in PE investments and growth. Success in India will
require a long term view.
About Evalueserve
Evalueserve offers high-quality knowledge services in Investment Research, Business
Research, Intellectual Property & Legal Research, Market Research, and Data and
Financial Analytics to clients worldwide. Founded in 2000, it has operations centres
in India, China and Chile, and a strong sales presence in all major global
locations. Nitron Circle of Experts, a recently acquired subsidiary, is an
independent research firm which provides institutional investors with direct access
to a network of senior industry executives in a wide range of industries.
Evalueserve won several awards in 2006, including the Red Herring Asia Top 100
Award, the NASSCOM IT Innovation Award for Business Model Innovation and the
Deloitte Fast 50 APAC Award.
To learn more about Evalueserve, please visit www.Evalueserve.com



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