Business Standard 14 June 2012
The consumer story in India makes fast moving consumer goods (FMCG) space an attractive destination for private equity and venture capital investors.
Compared to the typical $20-50 million deals that took place in the past few years, 2012 witnessed one of the largest PE deals in FMCG space with the Singapore Government owned Temasek Holdings buying a five per cent stake in Godrej Consumer Products Ltd (GCPL) for Rs 685 crore ($135 million).
Following Temasek’s investment, the FMCG sector witnessed another large deal, where Singapore Government GIC Special Invest-ments and Baring India PE jointly invested Rs 500 crore for a minority stake in Marico Ltd, through a preferential issue.
Explaining the trend, Abhay Pandey, managing director, Sequoia Capital, said, “The Indian consumer story is a secular, long-term growth trend playing out and investors are backing high quality companies that can take advantage of this trend.”