According to a joint Paper brought out by Deloitte and ASSOCHAM, more than 80% private equity investment is likely in healthcare, education and clean energy in future as these 3 sectors are emerging as most favoured ones for PEs investors in India.
Dr Swati Piramal president of ASSOCHAM pointed out that the Government of India has been laying substantial focus to build these sectors through public-private partnership projects across the country with a view to providing quality services in these three key areas of economic activities.
PEs investment in these sectors suits their investors the most as the aforesaid areas assured return on investments for a period exceeding 5 years, pointed out joint findings of Deloitte and ASSOCHAM Paper.
As far investments in clean energy are concerned, the Paper said that Indian companies raised USD 315 million in PE investments in 2009, down 48% from 2008 (USD 595 million). There were 26 deals, three deals more than in the previous year. Companies raised USD 156 million in PE investment in 2009, down 13% from 2008.
The Paper added that there is likely to be an increase in deal activity and capital inflows into the Indian cleantech space, primarily in clean energy, water and waste management sectors given the significant potential of the market and Government initiatives. Moreover, there are considerable investment plans of TATA Power, Greenko, Moser Baer and other large players.
There is a steady increase in the number of market players and the industry landscape is rapidly evolving. Investments are expected to be broader based and apart from renewable energy generation, areas such as waste water, waste management, energy infrastructure and storage, energy efficiency would attract investments.
Source: Steel Guru