The average deal size in India between 2003 and 2005 was $21m, compared to $66m in China and $163m in South Korea. However, Bain & Co predicts that two economic forces will fuel investment opportunities over the next five years.
The private equity market in India last year attracted $2.2bn in overseas and domestic investment capital but consumer demand and the country’s growing skills base will serve to boost the size and volume of private equity deals, predict consultants Bain & Co.
Strong overseas interest in India’s fast-growing economy will help to treble the value of investments into the country’s private equity market to $7bn a year by 2010, according to a new study.
Bain & Co’s India Private Equity Outlook is based on a review of more than 150 private equity deals, valued at about $7bn, which together represented 80 per cent of all such deals in India between 2000 and 2005.