Technology, Venture Capital, Private Equity

Perspectives from an Indian VC

Archive for June, 2010

Indian telecom industry – bracing up for phase 2

Posted by Arun Uday on June 8, 2010

For long, the Indian telecom industry has been an object of study globally for the path breaking and innovative operational & business models that they introduced to the world. While the success of the Indian telecom companies in building an industry with enviable profitablity despite operating in the world’s cheapest ARPU market has evoked wonder, we may just see the next chapter of this story unravelling in the next few years. The charts below capture exactly what has been happening to the telecom industry in India.

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HSBC Private Equity invests in Avitel Post Studioz

Posted by Arun Uday on June 3, 2010

Avitel Post Studioz Ltd, a Mumbai-based company providing post-production and related services to the media & entertainment industry, has raised Rs 50 crore from The HSBC Asian Ventures Fund 3 Ltd, a $700-million closed-end fund for private equity investment in Asia. The fund is advised by the HSBC Private Equity Asia Ltd (HPEA) Group.

With this, James Savage, a director at HPEA, will join the board of Avitel, said a company statement. Standard Chartered–STCI Capital Markets Ltd acted as the sole financial adviser in the transaction.

Avitel has raised the fund to expand its business as it plans to utilise the capital to establish an export oriented unit for animation and post production services, as well as scale up its existing facilities catering to the domestic film and advertising markets. The company also plans to recruit around 300 professionals in the next two years.

Avitel launched its operation 35 years ago, and currently has a strong presence in the domestic post production market, focusing both on feature film and advertising industry. The domestic post production and visual special effects industry in India is estimated at Rs 1,000 crore, and is expected to grow at a CAGR of 18% over the next 3-5 years, added the statement. Avitel is also planning an initial public offering (IPO) over the medium term. Read the rest of this entry »

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