Kpmg

KPMG INTERNATIONAL CASE COMPETITION

TEAM NAME: COLLEGE: TEAM MEMBERS: BattleStars NMIMS, Mumbai

EXECUTIVE SUMMARY

• The Indian market for PE has huge growth potential with Telecom, Pharmacy, Business process outsourcing being sectors of focus in future • CAGR of companies such as Infosys BPO, EXL service, First Source, Mphasis and WNS turns out to be higher than industry average of private equity funds. • Increasing skin-in-the-game and high valuations makes Indian Industries more lucrative for PE funding

AGENDA

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Executive Summary Overview of Private Equity Advantages of Private Equity funds Advantages of Private Equity to the economy Strategic benefit of Private Equity Comparison between Private Equity and Non-Private Equity firms Analysis of the deals:

1. 2.

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Bharti Airtel Arch Pharmalabs Limited Spectramind E-services

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Conclusion Appendix

OVERVIEW OF PRIVATE EQUITY

• Private equity is essentially a way to invest in some asset that isn't publicly traded, or to invest in a publicly traded asset with the intention of taking it private It is a high risk and high reward investment approach The common thread that emerges from the study is that Private Equity / Venture Capital investment, when chosen and leveraged well, can help Indian companies scale up rapidly and accelerate growth in several ways that add significant value to the Indian Economy

• SPLIT IN BUSINESS OPERATIONS

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• CATEGORY-WISE GROWTH

High growth and high revenues through PE Becomes the key for economic growth in India

Private Equity Firms

Non Private Equity Firms

Diversified portfolio helps in reducing Funds are more focused risk emanating from sectoral or customer concentration. PE firms have the potential of converting a non performing company into a star Non PE firms will not give loans to company who are sick or our incurring= losses

Potential high rewards tend to attract very talented individuals to both...