Rothschild mulls retail foray

Will also make long-term investments in tech firms.

E L Rothschild, a privately-owned company of investment banker Sir Evelyn de Rothschild and his wife Lady Lynn de Rothschild, is planning a second innings in India. The company, which recently reduced its stake in a farm produce joint venture with Bharti, is now planning to "own and operate international as well as Indian retail brands" in the country. It will also make long-term investments in small, mid-sized technology companies.

"We are keen on being active owners and operators with local partners and not simply be financial investors.... We are interested in being in India with the best international brands that are most committed to broad-based success in an India-specific way, as well as with the best Indian brands that aspire to achieve international stature," said Lady Lynn de Rothschild on her plans for retail.

This will be E.L Rothschild's second foray into India. It had set up an equal joint venture with Bharti called FieldFresh. But it recently reduced its stake in FieldFresh to 9.9 per cent after DelMonte Pacific bought into the company.

Rothschild added that unlike her company, international brands cannot fucus only on India. "We can protect international brands' integrity while being fully committed to the Indian-specific development of their business in partnership with us. We think this is a very significant value-add to our international and Indian partners," added Rothschild.

Rothschild did not provide details on investment or potential partners.

"We would look at all opportunities with the right indian and international partners (for front and back-end retail)."

Interestingly, Rothschild sits on the board of cosmetics giant Estee Lauder and its popular brands MAC and Clinique have already opened exclusive showrooms under a franchise agreement with Shopper's Stop.

"We believe that if products and services improve a consumer's sense of well being, then they are, in fact, luxury""giving something better to the consumers life. That is what we would like to achieve with our efforts in retail in India," said Rothschild.

Current government norms allow 51 per cent foreign direct investment in single-brand retail. While FDI is not permitted in muti-brand retail, 100 per cent FDI is allowed in wholesale cash-and-carry operations.

Lady Lynn de Rothschild has a background in the telecommunications industry, and that would explain her interest in technology opportunities in India.

But the proposed investments may not be made through a technology-specific fund.

"A fund is always a possible form of entry, but we are first keen to establish win-win partnerships with the best Indian companies where we can make a significant contribution to the whole enterprise," she said, adding: "A fund does not always offer that perspective because of its constitutional requirement for a five-year pay-out to investors. We would not use any financing vehicle which would prejudice any of our investments in that way."