Listed private equity-backed companies in India are growing significantly faster than their listed non-private equity-backed peers, a Venture Intelligence study found.
Sales at listed private equity-backed companies grew at 22.9 per cent over the five-year period between 2000 and 2005, compared to only ten per cent at non-private equity-backed listed firms.
The Private Equity Impact report, measuring the economic impact of private equity and venture capital on the Indian economy, also shows that wages at listed private equity-backed companies grew at 32 per cent over the five-year period between 2000 and 2005, compared to six per cent at non-private equity-backed firms.
Arun Natarajan, founder and CEO of Venture Intelligence, said, 'The common thread that emerges from the study is that private equity/venture capital investment, when chosen and leveraged well, can help Indian companies innovate, create new businesses and accelerate growth in several ways that add significant value to the Indian economy.'
The Private Equity Impact study was conducted by Venture Intelligence with advice and guidance from Professor Amit Bubna of the Indian School of Business, Hyderabad.
Source : altassets