PE investors keen on food processing and agro based firms
By siliconindia   |   Wednesday, 21 July 2010, 23:45 IST   |    1 Comments
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PE investors keen on food processing and agro based firms
Mumbai: Private equity (PE) investors are eyeing on the food processing and agricultural based companies and have invested $300 million in these companies during January-June this year. The comparative figures in 2008 and 2007 were $187 million and $4.3 million, respectively. According to Grant Thorton, PE investments in these sectors were about $398 million. "The writing is on the wall. PE activity is growing in the space," said C G Srividya, Partner, Specialist Advisory Services. Grant Thorton. Greater professionalism, accountability, openness to foreign investment and fairly attractive valuations of these companies has attracted many PE players. "Valuations vary from company to company. Some promoters are moderate in their expectations, while some are not. It boils down to the negotiations you have with promoters and how you can strike a path in between which is win-win for all," said Gaurav Mathur, Managing Director of India Equity Partners (IEP) Fund Advisors. Deal sizes in this space were not huge but the money pumped in it was sufficient to boost the promoters, added Mathur.