TVS Capital upbeat about agriculture, food businesses

Chennai-based growth equity company TVS Capital Funds Limited, which manages Rs 1,200-crore investments, is bullish on agriculture, food with the Food Security Bill in place. Besides, it is also looking to invest in the manufacturing sector.

"The country is expected to put more focus on productivity, which translates into more farm equipment, better irrigation, increased seed supply, and opportunities in logistic and supply chain," said Gopal Srinivasan, chairman and managing director of TVS Capital.

TVS Capital essentially invests in domestic consumption sectors including education, healthcare, agriculture and food, and retail. The deal size for it ranges from Rs 50-100 crore. It helps first generation companies increase size and improve cash flows.
 

Srinivasan said the $350-billion Indian agri and food sector had a great potential and added, currently a $ spent on agriculture provided an added value of another dollar in India. However, in other developing nations like Brazil and Mexico it stood at $4-12.

With Hyderabad having world-class intellectual property such as International Crop Research Institute for Semi-Arid Tropics (Icrisat) and National Institute of Nutrition, TVS Capital expects good entrepreneurial culture and funding ideas here.

In manufacturing, with hiring costs on the rise in China, the small and medium enterprises here have an advantage in exports and increased investment opportunities in infrastructure management services, according to him.

Apart from these, it is actively considering opportunities in the government-generated services. "The Indian government is the single largest outsourcer in the country," said Srinivasan.