Future Ventures wants to do a Berkshire here
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Mumbai: Kishore Biyani's latest initiative Future Ventures (FVIL) is looking to create an economic environment conducive to entrepreneurial activities in the country. FVIL, which has filed a draft prospectus for an IPO, is looking to do that by following the successful business models of giant global corporations such as Warren Buffett's Berkshire Hathaway, Sweden's Investor AB and Hong Kong's Hutchison Whampoa. These companies primarily invest in fast-growing businesses driven by successful entrepreneurs and help them become global-sized operations. And they deliver a good return to investors. For instance, Berkshire Hathaway, which listed in 1987, has delivered a return of 48 percent in the past two years and a 4,484 percent since listing. "FVIL is seeking to create, build, acquire, invest in and operate innovative and emerging businesses in India?s rapidly growing consumption-led sectors," the firm's draft prospectus states. An investment banker said that the idea behind the venture is to democratize entrepreneurship. Investment banking sources said that the firm would have been willing to allow retail investors to subscribe to 100 percent of the issue but the laws don't permit that. FVIL's investments and track record so far suggests that it has invested in consumption-led sectors. More than Rs 150 crore has been invested a in a slew of companies so far. They include women's apparel firm Biba, My Dollar Store franchisee Sankalp Retail and sportswear retailer SSIPL. Recently, it also bought 70 percent in rural retailer Godrej Aadhar. More investments will be made in similar consumer sectors. The companies, that received investment from FVIL, will also benefit from access to the Future Group's ecosystem with its multiple retailing formats, thousands of suppliers and vendors and millions of customers.

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