Bio-technology, film production and education are among the five emerging sectors expected to attract an investment of $8.5 billion from private equity and venture capital funds in the next five years, a study has said.
The other key sectors identified by the private equity (PE) and venture capital (VC) funds are clean technologies and logistics, according to the Assocham-Deloitte study.
PEs and VCs are shifting to non-IT areas, where regulatory mechanism is disappearing, it said.
“VCs and PEs which for long has been choosing IT for investment purposes, have found huge investment opportunities in above listed areas as regulatory regime in them is gradually disappearing,” Assocham President Sajjan Jindal said.
The Life Sciences sector has been attracting specialist Venture Capitalists from global and local funds.
A US-based life sciences fund has recently invested about 20 million dollars in a Hyderabad-based pharma company, the study added.
“It is anticipated that the Biotechnology and Life Sciences would alone attract about $1.5 billion investments from VCs and PEs by 2012,” Jindal said.
“Clean technology is another area which would attract PEs and VCs,” he said. As per the study PEs and VCs would be able to garner an investment of $3.5 billion in cleantech areas.
In logistics, VCs are expected to invest in excess of two billion dollar in India's maritime infrastructure and logistics, he said.
National Maritime Development Programme envisages investment to upgrade India's maritime sector of which 64 per cent is expected to come from VCs and PEs firms.
In 2007, investors committed 290 million dollars in 11- cleantech investment deals compared with 140 million dollars in nine deals in 2006.
The $1.8 billion Indian film industry is expected to attract $250 million of VC investment in five years, it said.
A global private equity firm with 36 billion dollar in assets is planning investment of about 200 million dollar in the Indian education sector by taking up strategic positions in companies offering e-learning, distant learning, vocational training and the like, Assocham said.
Source: Economic Times