PE funds eye consumption-focussed sectors, says Deloitte

Consultancy firm Deloitte said today private equity funds continue to be bullish on domestic consumption focused sectors like e-commerce.
During the first nine months of the year, the country saw many as 460 deals valued at USD 8 billion driven by the e-commerce sector, as against 410 deals worth USD 8.5 billion in the whole of last year, the firm's report said.
"The appetite of PE funds would continue to be directed towards companies that benefit from the strength of domestic consumption," it said.
E-commerce, small retail, agriculture, healthcare, financial services, education and media and entertainment would be potential beneficiaries of this trend, it said.

Limited Partners (LPs), who invest in private equity funds, also re-draw their strategies due to recent developments like the bull-run on stocks markets after the formation of a stable, pro-reform government, it said.
"Growing domestic consumption, results of the recently concluded general elections that gave stability at the Centre and declining global commodity prices has created a trifecta to position the country once again as one of the top investment destinations in the world," Deloitte India Senior Director Kalpana Jain said.
Once the government's policy measure starts reflecting on the ground, there would be larger investment in the infrastructure, education, healthcare and renewables sectors, it said.

Though policymakers have called revival of growth "uneven", because of the lack of a linear path, investors are betting strongly on India due to expectations of a strong revival, it said.