Focus on depth of Market

The overall market of India infrastructure is a vital growth opportunity. While there have been obstacles for any small cap company in this market, it remains an exeptional growth market that will continue to explode over the next 20 years or so. The India economy is one of the most attractive emerging growth stories in the global economy expansion. Companies who provide services to this growth market will find on going opportunity for long term value. This is not simply a short term window of opportunity it is a long and deep growth opportunity. Kindly look at excepts from a recent analyst report on the depth of this growth opportunity:

"New Delhi: Putting political risks aside, global private equity (PE) funds looking for high return on investments are going to target Indian infrastructure companies in the coming years, says a report by research agency Preqin.

India is attracting the highest number of unlisted, closed-end funds that focus on a single country, making it the most preferred choice among emerging markets, according to the study, released late last week.

“In terms of opportunities, emerging markets are becoming more popular with global investors after the global financial crisis, and India is at the centre of this,” said analyst Elliot Bradbrook, who has authored the report

India, the world’s second-fastest growing major economy after China, will need $1 trillion (Rs45.1 trillion) worth of infrastructure investment over the next five years, according to the researcher.

The government is encouraging infrastructure investment, and plans to issue infrastructure bonds worth Rs30,000 crore in the year starting 1 April, finance minister Pranab Mukherjee said in his annual Union budget speech on 28 February.

Currently, there are 38 overseas infrastructure investors, all of them PE funds, with a preference for assets in India, says the Preqin report. Of these, 25 have raised an aggregate $9.5 billion, while the rest are scouting for another $7.3 billion.

In addition, nine India-focused funds will be launched in 2011, the report said."

One can clearly see that this opportunity exists and will create exceptional wealth for companies that develop strong strategic business plans focused on providing the key services to this space. The companies that are best positioned will be those who have India based relationships and can fully understand and be responsive to the select needs within the cultural and business accepted norms of the society. These should be core foundations an investor looks for in provider companies to the India infrastructure growth opportunity.

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