Sanjeev Asthana, who recently quit as the president and chief executive of Mukesh Ambani-controlled Reliance Retail, is planning to launch a $100-million (Rs 460 crore) private equity (PE) fund to invest in food and agriculture sectors, according to a person close to the development.
Called I-Farm Venture Advisors, the fund would invest in small and medium enterprises, the person said. While Asthana would be the main promoter, discussions were on to get well-known corporates on board as co-promoters, he added.
When contacted, Asthana confirmed the news, but declined to elaborate on the details. “The whole food and agriculture space is on growth track and there is a lot of headroom available to invest. The fund will invest in good ideas, entrepreneurs and firms,” the source said.
“Right now, they are in the discussions about the strategy to be adopted and fund raising,” the executive in knowledge of the deliberations said.
The fund would also tap institutional investors such as banks, non-banking financial companies and corporates, he said, adding it might invest in food processing companies and retail services firms, among others.
Chandra P Singh, a former senior executive at RPG’s Spencer Retail, would be one of the top executives of the fund, the person said.Though there was a buzz about Raghu Pillai, another high profile Reliance Retail executive, joining the fund, when contacted, Pillai denied the development.