Technology, Venture Capital, Private Equity

Perspectives from an Indian VC

Archive for November, 2007

Sub prime ruminations (Part 1)

Posted by Arun Uday on November 27, 2007

For the past few days, I have been mulling over the fallouts and developments post the sub prime crisis in the US, and there are two strong thoughts that emerge – a)Have the global financial markets become too complex for their own good? and b)Is the US on the verge of losing its position of pre-eminence in the global economy?
As you will see, the two are kind of related, but intend to restrict this post to (a). But, before I delve in, let me take a small philosphical digression and try to connect that with the theme here.

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Posted in economics, economy, finance, sub prime | Leave a Comment »

Imminent slowdown?

Posted by Arun Uday on November 22, 2007

I’m in Hong Kong for a few weeks on work and things don’t seem very bright here (I mean on the business front).  The Hang Seng Index has had the second largest fall this year and all the pink papers and business channels don’t seem too optimistic either. Nobody’s uttering the “R” word yet, but with oil in kissing distance from $100, the writedowns from subprime crisis showing little signs of ending soon and the dollar on a free fall, all macro economic parameters don’t seem that healthy. Goldman Sachs too has predicted a $2 trillion crunch consequent to the intertia on the part of big banks to lend aggressively following the crises they are going through. As a result, PE buyouts are also witnessing a huge slowdown from a record $400 billion in Q2 CY07 to $130 billion in Q3CY07. It sure looks like a long cold winter ahead.

 

Posted in economy | 2 Comments »

On Google’s alliance strategies

Posted by Arun Uday on November 14, 2007

Techville’s headlines in the recent past have been hogged by the two big initiatives launched by Google viz. Open Social and Android.  Was reading this piece on MARS which likened Google’s Android to Microsoft’s Windows strategy. The gist of this article as also many others that have appeared elsewhere is that by opening up the social net and  mobile platforms, Google stands to gain in a similar manner in which MS did when the PC architecture opened up. I have a different (and a not so bullish) take on Google’s strategy.
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Posted in Android, Google, Open Social | Tagged: , , | Leave a Comment »

HSBC Private Equity invests in Trivitron

Posted by Arun Uday on November 5, 2007

Chennai-based diagnostic equipment company Trivitron Medical Systems Pvt Ltd will get a funding of $ 11 million (Rs 45 crore) from HSBC Private Equity and venture capital firm ePlanet Ventures. According to reports, an HSBC PE entity, HSBC Asian Ventures Fund 2 Ltd, and ePlanet will get a minority stake in Trivitron, which plans to utilise the funds for acquisitions and joint ventures and also for developing a medical technology park in Chennai.
The medical technology park, likely to be located in Sriperumpudur in Chennai, is being built with an investment of Rs 250-crore. The 25-acre park will promote indigenisation of medical technology in India. Currently the medical technology industry imports account for $ 2.7 billion, of which medical equipment contributes 90 per cent. The new park is intended to indigenise this industry.
Besides the private equity funding, the company has also raised Rs 105 crore from internal accruals and bank borrowing, the report says. Trivitron’s technology partners too have chipped in with Rs 100 crore for the technology park project. Its current revenues are not reported, but the company hopes to clock Rs 1000 crore sales by 2012. Dr G S K Velu is the Managing Director of Trivitron group.

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