Posted on 26 June, 2018
Pankaj Raina, Managing Director, Zephyr Peacock India writes in Livemint on the investment themes to watch out for in food and agriculture sectors in India.
Below are excerpts from the post which first appeared on Livemint on 26 May 2018:
The agriculture sector accounts for around 17% of India’s gross domestic product and employs close to half of India’s labour force. While many segments of the economy are experiencing improvement in productivity through modern management practices and use of technology, besides capital investment, the agriculture sector remains set in old ways.
Increasing urbanisation, growth in the middle class and the accompanying change in nutrition needs will increase demands on agriculture. The segment will do well to infuse the entrepreneurial energy, which has transformed sectors such as IT, pharma and financial services, to drive growth.
The inefficient agriculture supply chain, which is plagued by the presence of inefficient intermediaries capturing a large share of profits, poor infrastructure and outdated farming techniques, also provides significant opportunities for entrepreneurial innovation. Entrepreneurs could also develop low-cost tools, smart farming techniques and warehousing facilities, besides improving the quality of inputs and extending the reach of irrigation, to transform agriculture in India.
Zephyr Management is a global emerging markets investment manager, specializing in the creation and management of highly focused private equity funds
Since its inception in 1994, Zephyr has sponsored and/or managed 26 investment funds in both public and private securities markets representing approximately $1.2 billion in combined commitments and assets under management
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Investment activities are currently focused on India, Sri Lanka and Africa.
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