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

 
 
 

17 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

2 days 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 workforce of 20,000 by 30 per cen ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 days 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 th ...
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

Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday.
 
 
Japan to aid connectivity upgrade in northeast India
Tokyo, Sep 1 (IANS) India and Japan Monday decided to strengthen cooperation for improving connectivity and socio-economic development in northeastern states of India.
 
 
Three Ebola cases recorded in Nigeria oil hub
Abuja, Sep 1 (IANS) At least three cases of Ebola virus disease (EVD) have been recorded in Nigeria's oil hub of Port Harcourt, where a fatality was confirmed last week, the country's Minister of Health Onyebuchi Chukwu said here Monday.
 
 
India, Japan to elevate strategic partnership
Tokyo, Sep 1 (IANS) Prime Minister Narendra Modi Monday said relations with Japan were of the "highest priority" for his government and announced a slew of initiatives, including turning the strategic partnership into a "special" partnership and a fast-track channel for Japanese investors.
 
 
 

Latest from the Network

Three executed in Yemen for having US links
Aden, Sep 2 (IANS) Three people have been executed by militants in Yemen Monday for having links with the United States, a military source said. "Suspected Yemen-based Al Qaida operatives kidnapped three local...
Read more on Politics Balla
 
Lena Dunham condemns naked photo leak
Los Angeles, Sep 2 (IANS) Actress-writer Lena Dunham has condemned a mystery hacker who leaked nude photographs of celebrities, including actress Jennifer Lawrence. Lawrence hit headlines Sunday when intimate snaps of...
Read more on Celebrity Balla
 
Three children, teacher killed in China school stabbing
Beijing, Sep 2 (IANS) A stabbing spree in a Chinese school has left three children and a teacher dead Monday. Chen Yanfu, 43, who was upset that his daughter was not allowed to register at the school, rampaged through...
Read more on Politics Balla
 
Jennifer Aniston eases exercise regime
Los Angeles, Sep 2 (IANS) Actress Jennifer Aniston, who admits she's "eased up" her workout regime, says it's important to take time off from working hard in the gym to simply enjoy life sometimes. The 45-year-old,...
Read more on Celebrity Balla
 
Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday. The drug named Favipiravir and developed by a subsidiary of Fujifilm Holdings in...
Read more on Business Balla
 
Miley Cyrus: The internet is more damaging than drugs
Miley Cyrus thinks the internet ''hurts your brain'' more than drugs. The 21-year-old singer believes social media - such as Facebook and Instagram - causes more damage to your mental health than smoking cannabis. She...
Read more on Celebrity Balla
 
Britney Spears in contact with ex-boyfriend from 6 years ago
Britney Spears is reportedly in contact with her ex-boyfriend from six years ago. The 'Piece of Me' hitmaker only split from her beau David Lucado last week after it emerged he'd allegedly cheated on her and now the...
Read more on Celebrity Balla
 
Joan Rivers may end up 'as a vegetable' or in 'wheelchair'
Joan Rivers' doctors fear she may end up ''as a vegetable'' or ''needing a wheelchair'' after she suffered a cardiac arrest last week. The 81-year-old comedienne's relatives are reportedly preparing themselves for the...
Read more on Celebrity Balla
 
Kate Upton will 'pursue anyone' who shares naked photos of her
Kate Upton's lawyer will ''pursue anyone'' who shares naked pictures of her. Nude photographs of the 22-year-old model were reportedly leaked online after her mobile phone's online storage system iCloud was allegedly...
Read more on Celebrity Balla
 
'Ukrainian conflict has escalated into war'
Kiev, Sep 1 (IANS) Ukrainian Defence Minister Valeriy Geletey Monday said the conflict in eastern Ukraine between government troops and pro-independence insurgents has escalated into a "war". "A great war came at our...
Read more on Politics Balla