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PEs, VCs shifting to non-IT sectors, says study

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 9:59 PM IST

Bio-technology, film production and education are among the five emerging sectors expected to attract an investment of $8.5 billion from private equity and venture capital funds in the next five years, a study has said.     

The other key sectors identified by the private equity (PE) and venture capital (VC) funds are clean technologies and logistics, according to the Assocham-Deloitte study.     

PEs and VCs are shifting to non-IT areas, where regulatory mechanism is disappearing, it said.     

"VCs and PEs which for long has been choosing IT for investment purposes, have found huge investment opportunities in above listed areas as regulatory regime in them is gradually disappearing," Assocham President Sajjan Jindal said.     

The Life Sciences sector has been attracting specialist Venture Capitalists from global and local funds.     

A US-based life sciences fund has recently invested about $20 million in a Hyderabad-based pharma company, the study added.     

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"It is anticipated that the Biotechnology and Life Sciences would alone attract about $1.5 billion investments from VCs and PEs by 2012," Jindal said.     

"Clean technology is another area which would attract PEs and VCs," he said. As per the study PEs and VCs would be able to garner an investment of $3.5 billion in cleantech areas.     

In logistics, VCs are expected to invest in excess of $2 billion in India's maritime infrastructure and logistics, he said.

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First Published: Aug 04 2008 | 7:16 PM IST

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