360° Coverage : Cautious Optimism On India With Grand Trunk Capital, Apollo...

2 Updates
Cautious Optimism On India With Grand Trunk Capital, Apollo Global And Sony
Photo Credit: Forbes Business

Cautious Optimism On India With Grand Trunk Capital, Apollo Global And Sony

Apr 30 2014, 9:17pm CDT | by

Sanjay Patel of Apollo Global Management summarized investors’ experiences in India over the course of this century as a cyclical experience of “euphoria and despair.” With national election results...

Filed under: news

 
 
 

25 weeks ago

Cautious Optimism On India With Grand Trunk Capital, Apollo Global And Sony

Apr 30 2014, 9:17pm CDT | by

Sanjay Patel of Apollo Global Management summarized investors’ experiences in India over the course of this century as a cyclical experience of “euphoria and despair.” With national election results to be officially announced May 16th, there is cautious optimism that the Bharatiya Janata Party (BJP) and its leader Narendra Modi will be announced as significant enough election victors to avoid political gridlock while executing necessary reforms and infrastructure development. At the Milken Institute Global Conference in Beverly Hills, a panel of investment experts provided their forward-looking insights.

Mr. Patel is head of Apollo Global Management’s Europe unit as well as leading Apollo’s private equity investment portfolio in India. Mr. Patel who has participated on the same panel at the Milken Institute Global Conference for several years noted, “our room has been shrinking” indicative of lessening interest in Indian investment. He acknowledged economic data from recent years has been poor but sees nothing that cannot be fixed and turned around. Apollo Group has been ramping up their investment in India for the previous 12 months and believes the government paralysis that has stymied the government in recent years may linger enough into the next administration to provide a longer window of good opportunity.

Sam Gupta is CEO and CIO of Grand Trunk Capital Management, an India focused investment vehicle. Previous to Grand Trunk, in partnership with Soros Fund Management, he was the founder and portfolio manager of QIF Management that invested more than $2.5 billion in India. Mr. Gupta sees the recent election as transformative to India with 450 million of 850 million voters under 35, “the intensity of expectations is higher than seen before.” Mr. Gupta emphasized that the youth voting block that wants better infrastructure and better jobs is more unified than before by the digital revolution of Twitter and other social platforms. He sees the young people crossing racial, religious, age and caste differences to unify around issues they all support.

Man Jit Singh is president of Sony Pictures Home Entertainment. While today he manages the worldwide home entertainment division, he previously was CEO of Multi Screen Media, the operating company for Sony Pictures Television’s TV networks in India that he continues to serve as non-executive chairman. Mr. Singh emphasized the record of Mr. Modi in the Gujarat State where he was Chief Minister from 2001 to 2012: “the hope is that Mr. Modi has developed infrastructure in the state he comes from.” Gujarat is “visibly different than other parts of India” and there is now optimism that he can do the same for all of India.

The key issues to unlock India’s promise of economic development all centered in discussions around excessive bureaucracy, lacking infrastructure and a need for political resolve. Regarding where investment opportunities are in the market today:

  • Mr. Patel sees the expansion of credit markets and lending businesses as opportune places to be to take advantage of economic and infrastructure expansion. He also notes that in the global low interest rate environment that exists today, investors can find good yields of 9% to 18% in India.
  • Mr. Gupta has three themes he sees to invest in: digitization, finance and infrastructure. The digitization is a natural development with a youthful population and technology expanding. Regarding finance, “if anything happens in India, the financial system must be a part.” And, infrastructure is potentially the biggest opportunity though it will take time to ramp up projects.
  • Mr. Singh following along the lines of digitization leans toward investment in the entertainment industry. He notes with an average age of 26, the young growing population of India will only have an expanding interest in entertainment while TV has “only 60% penetrated in India” to-date.

There are many broader opportunities in India if the new government can succeed in reforms. Mr. Singh noted only 10% of GDP is from exports, something that can clearly grow. Mr. Gupta brought up that food waste is currently at about 50% in a country that is the world leader at producing fruits and vegetables; a clear space for innovation and development that could change both India and the world’s food markets. Mr. Patel voiced a sentiment echoed by the others that Mr. Modi may be the least corrupt Prime Minister India has had since Prime Minister Nehru left office in 1964. All this in mind, it is a time for cautious optimism for India’s development as the results of the elections and the actions of the future government are awaited.

The complete one hour panel discussion is below.

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

8 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

India stands firm on objections to WTO Doha Round deal
United Nations, Oct 24 (IANS) Even as the World Trade Organisation's trade deal remained stalled due to India's objections, an Indian envoy at the UN stood firm on them, declaring a "permanent solution on food security with necessary changes in World Trade Organisation (WTO) rules, if required, is a must and cannot be kicked down the road".
 
 
India firm on objections to WTO Doha Round deal over food security
United Nations, Oct 24 (IANS) Even as the World Trade Organisation's trade deal remained stalled due to India's objections, an Indian envoy at the UN stood firm on them, declaring a "permanent solution on food security with necessary changes in World Trade Organisation (WTO) rules, if required, is a must and cannot be kicked down the road".
 
 
Twitter declares war on passwords
San Francisco, Oct 24 (IANS/EFE) Twitter formally declared war on passwords during a developers' conference in San Francisco, unveiling a new system that allows users to log-in to mobile apps with a phone number.
 
 
Ebola not to upset Africa's overall growth: IMF
Harare, Oct 23 (IANS) The Ebola outbreak in West Africa, which has claimed 4,500 lives, will have minimum impact on continent's overall growth, a top International Monetary Fund (IMF) official said Thursday.
 
 
 

Latest from the Network

Second MERS case reported in Qatar
Doha, Oct 23 (IANS) A 43-year-old man in Qatar has tested positive for Middle East Respiratory Syndrome (MERS) in the second confirmed case of the deadly virus in 10 days, media reported Thursday. The patient had...
Read more on Business Balla
 
Two people die in Pakistan bomb blast
Islamabad, Oct 23 (IANS) At least two people were killed and 12 others injured in an explosion that took place in Pakistan's Balochistan province Thursday, media reported. The bomb was planted on a motorcycle, Dawn...
Read more on Politics Balla
 
Trott extends contract with Warwickshire till 2017
London, Oct 23 (IANS) England batsman Jonathan Trott, whose mental issues led to his abrupt departure from last winter's Ashes tour, has confirmed his successful comeback to competitive cricket by signing a new three-...
Read more on Sport Balla
 
Srikanth, Kashyap big movers in BWF rankings
Kuala Lumpur, Oct 23 (IANS) Indian men shuttlers Kidambi Srikanth and Parupalli Kashyap jumped seven places each in the latest Badminton World Federation (BWF) rankings released Thursday while Olympic bronze medallist...
Read more on Sport Balla
 
Alvin Stardust dead
London, Oct 23 (IANS) English singer Alvin Stardust died after a short illness. He was 72. Stardust's manager confirmed the news about his demise Thursday, reports mirror.co.uk. He was recently diagnosed with...
Read more on Celebrity Balla
 
Indian man reunited with family after 40 years
Dubai, Oct 23 (IANS) An Indian man, who had disappeared from his hometown in Kerala nearly 40 years ago, has been found by his family at a hospital in Dubai in the UAE, a newspaper report said. Now in his 60s, Abdulla...
Read more on Politics Balla
 
Srikanth, Kashyap, Saina rise in world rankings
Kala Lumpur, Oct 23 (IANS) Indian men shuttlers Kidambi Srikanth and Parupalli Kashyap jumped seven places each in the latest released Badminton World Federation (BWF) rankings Thursday while Olympic bronze medallist...
Read more on Sport Balla
 
Flintoff signs for Big Bash side Brisbane Heat
Brisbane, Oct 23 (IANS) Former England captain and all-rounder Andrew Flintoff, who retired from international cricket in 2009, Wednesday confirmed that he will play for Brisbane Heat in the Big Bash League (BBL) this...
Read more on Sport Balla
 
OPEC daily basket price falls again
Vienna, Oct 23 (IANS/WAM) The basket of 12 crude oils of the Organization of Petroleum Exporting Countries (OPEC) closed at $81.94 a barrel Wednesday compared to $82.09 Tuesday, the OPEC Secretariat said. The new OPEC...
Read more on Business Balla
 
Lopez to sign multi-million dollar deal?
Los Angeles, Oct 23 (IANS) Singer-actress Jennifer Lopez is reportedly in the final stages of securing a multi-million dollar deal to perform in Las Vegas. The 45-year-old is being offered $350,000 per show at The...
Read more on Celebrity Balla