|21 December, 2019

Bahrain's Investcorp outlines key investment themes driven by urbanisation

Investcorp also outlines opportunities in the areas of real estate, consumer technology, financial services and healthcare

Bahrain: Investcorp, a leading global provider and manager of alternative investment products, today outlined the compelling investment opportunities in India that are being driven by urbanisation.

The whitepaper, 'A Different India: Opportunities from India’s Urbanisation Dividend and Structural Reforms' was launched on the sidelines of the first India Information Sessions curated by Investcorp in Mumbai. It provides a perspective on the scale and impact of urbanisation in India and analyses how the Indian economy is poised for the potential of significant growth over the next few decades, despite recent challenges.

The whitepaper notes that the scale of India’s past, present and future urbanisation is unprecedented. It is estimated that India will add 360 million people to its urban areas between 2018 and 2050. Based on urbanisation levels, India appears today to be where China was in 2000, with Indian cities already contributing 75 per cent of the country’s GDP. The analysis determines that the impact of India’s projected urbanisation is 65x larger in comparison to the United States during the second industrial revolution of the 20th century. Furthermore, the government is changing the political and economic landscape with several transformative pro-growth initiatives. These landmark reforms will provide easier access to a single economic market, which is fast approaching its entry into the top five global economies.

Mohammed Alardhi, executive chairman of Investcorp said, “We marked a key milestone in our journey of global expansion with the inauguration of our office in Mumbai, India earlier this year. We are committed to identifying opportunities that align with our investment thesis in India under the overarching umbrella of investing in businesses and real assets that provide access to high-quality goods and services for mass-market consumption.”

Rishi Kapoor, Co-Chief Executive Officer of Investcorp added, “We, at Investcorp, believe that urbanisation and the recent structural reforms will unlock large markets in housing, consumer tech, healthcare and financial services over the medium to long term. The whitepaper outlines some of the key growth drivers and trends for each of these areas. We are leveraging these opportunities in India by backing a new breed of entrepreneurs that are building efficient and scalable business models that meet the needs of a young, middle class, urban population by providing goods and services at an affordable price point through innovation. We remain bullish on India’s long-term trajectory.”

The whitepaper notes that additional changes are necessary for corporate governance, policy clarity and stability, tax reforms for foreign investors and investment infrastructure, before the true potential for growth from India becomes a reality for foreign investors. It concludes that investment teams that seek to capture this growth will have to take a more proactive, hands-on approach to deal sourcing, portfolio management and realising value.

In its latest Insights series, Investcorp also outlines opportunities in the areas of real estate, consumer technology, financial services and healthcare, supported by case studies.

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