ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • IRDAI sets a target of 5 years for life insurance companies for greater penetration; proposes state-level committee
  • Dalal Street Corner: Bank, FMCG stocks help Nifty clear crucial hurdle of 15,800; what should investors do on Tuesday?
  • Despite windfall tax, brokerages remain bullish on oil & gas stocks; see up to 70% upside on ONGC, Oil India
  • Rupee settles flat at 78.94 against US dollar
  • Akasa Air showcases crew uniform; conducts proving flight test
Read in App
Business News » India News

PE Inflows in retail space double to $1.2 billion in 2 years: Report

Liberalisation in FDI policies has attracted major global PE funds to double their investments in the Indian retail sector. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
PE Inflows in retail space double to $1.2 billion in 2 years: Report
US and Canada-based PE funds together invested more than $1.13 billion into the retail sector. Image source: Pixabay

Liberalisation in FDI policies has attracted major global PE funds to double their investments in the Indian retail sector. According to the ANAROCK’s Private Equity in Indian Real Estate report,  total private equity inflows in the Indian retail sector between 2015 and 2018 stood at $1.84 billion. Of this, nearly $1.2 billion were pumped in between 2017-2018 alone.

US and Canada-based PE funds together invested more than $1.13 billion into the retail sector, bestowing their faith on an industry riding on increasing consumerism which is expected to rise to $3,600 billion by 2020. Tier-2 and-3 cities were high on the radar of the PE investors. In the last four years these investors infused almost half of their total investments into the retail sector in cities like Amritsar, Ahmedabad, Bhubaneshwar, Chandigarh, Indore and Mohali.

Shobhit Agarwal, MD & CEO of ANAROCK Capital, said, “Our report highlights the fact that unlike the commercial office sector, retail is to some extent geography-agnostic because its success depends on the spending power of its target audience. As a result, shopping malls in Tier 2 & 3 cities have performed as well as, if not better than, their Tier 1 counterparts. This also led to increase in rentals and profitability and caused PE investors to start considering investment options outside their accustomed Tier 1 geographies.”

US-based funds such as Blackstone and Goldman Sachs invested over $1 billion into the Indian retail space between 2015 and 2018. Of this, more than $700 million went into tier-2 and-3 cities. Only $300 million came to cities like Pune and MMR, the report stated.  Large PE funds have recognised the potential of smaller cities which continue to have a shortage of organised retail space despite the rising disposable income and aspiration-driven consumption appetite being generated there, it said.

PE investors from UAE, Singapore and Netherland also showed interest in Indian retail during the period and invested close to $800 million in this space. "Ahmedabad, Bhubaneshwar, Ranchi, Kochi, Lucknow, Surat and Amritsar, among others, are the new retail growth hubs where the next chapter of the Indian retail story will play out in the coming years," says Kejriwal. "In fact, global retailers are now also eyeing cities like Chandigarh, Lucknow and Jaipur, to name a few. There is every reason to expect increasing funding infusions into the retail sector of these cities in the future," said Anuj Kejriwal, MD & CEO - ANAROCK Retail. 

The government had earlier allowed 51 percent FDI in multi-brand retail and 100 percent FDI in single-brand retail under the automatic route, against the previous 49 percent.
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Private Equity
Written By: ZeeBiz WebTeam
Updated: Mon, May 20, 2019
03:32 pm
ZeeBiz WebDesk
RELATED NEWS
Blackstone acquires majority stake in ASK Investment Managers Blackstone acquires majority stake in ASK Investment Managers
Indian consumer electronics firm boAt gets USD 100 million from Warburg Pincus; Here is what you need to KNOW about Co Indian consumer electronics firm boAt gets USD 100 million from Warburg Pincus; Here is what you need to KNOW about Co
Drip Capital raises $25 million private equity, venture capital fund to accelerate global trade Drip Capital raises $25 million private equity, venture capital fund to accelerate global trade
Real Estate Buzz: Logistics, Warehousing emerge prime investment destination for PE investors Real Estate Buzz: Logistics, Warehousing emerge prime investment destination for PE investors
Making money: Ultra rich in India expected to hike investment in Private Equity: Report Making money: Ultra rich in India expected to hike investment in Private Equity: Report

LATEST NEWS

7th Pay Commission Latest News: Air Force Announces vacancies for Group C positions; here are details, how to apply?

Readjust Your Lens of Financial Planning to See Through Rising Inflation, Nityanand Prabhu, ED & Business Head, LIC Mutual Fund

Pricing flexibility, lower credit cost to help revive NBFC-MFIs profitability this fiscal: Report

Gold Price Today: Yellow metal subdued on marginal pressure from high dollar index – check prices in metro cities

Money Guru: How To Take Care Of Your CIBIL Score For Better Financial Planning? Expert decodes

IndiGo's OTP plunging in last 2 days: mass bunk, salary discontent among cabin crew

Corporate Watch: JSW Steel, Titan, Torrent Pharma, Mindtree, Mphasis among 20 stocks that will remain in focus on dividend, bonus announcements this week

Despite windfall tax, brokerages remain bullish on oil & gas stocks; see up to 70% upside on ONGC, Oil India

IRDAI sets a target of 5 years for life insurance companies for greater penetration; proposes state-level committee

Will recession hit Indian shores in six months? Zee Business Managing Editor Anil Singhvi decodes

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV