The Hindu : Tamil Nadu / Madurai News : Private equity funding mooted

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Saturday, Aug 23, 2008
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Tamil Nadu

Tamil Nadu - Madurai

Private equity funding mooted

Staff Reporter

MADURAI: The Confederation of Indian Industry (CII) has mooted private equity funding as an alternative way of funding for developing micro, small and medium enterprises (MSME).

The Madurai Zone of the CII organised a session on ‘Driving growth of MSME’s through private equity funding’ here on Thursday. The objectives of the session were to create an awareness of private equity funding and its benefits among MSMEs of southern districts.

It was pointed out that investment by overseas private equity funds would reach $ 48 billion by 2010, from $ 17.14 billion last year. With tightening of financial markets across the world, alternate ways of financing for development of business apart from conventional sources of financing needed to be explored.

According to a CII release, 386 private equity deals were struck in 2007. However, IT and outsourcing segments constituted the bulk. MSMEs need to evaluate alternate funding options for accelerating growth.

Veda Corporate Advisors Director Venkat Subramanyam presented an overview of private equity eco-system and sectoral preferences of private equity investors.

He also spoke about the functioning of private equity funds in financial and management side of the company. TVS Capital Funds Executive Director Suresh Raju said that a company should have a detailed project report with a good financial layout on the proposed business model. CII Madurai Zone Chairman, R. Dinesh, shared the experience of TVS Logistics, which had acquired private equity in its early stages of inception.

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