Posted on 30 April, 2020
Abhijeet Kudva, Managing Director, Zephyr Peacock India writes for Outlook Money on what companies can do to overcome the COVID-19 crisis.
Below is an excerpt from the post that first appeared on Outlook Money on 30 April 2020:
"In the face of COVID-19, businesses face unprecedented challenges. Companies must rethink their business models and continue to deliver through innovative methods. It is also imperative that businesses develop a plan to survive the crisis.
The first obvious measure is to conserve cash. Businesses should defer expenses, halt expansion projects, and freeze new hiring. Companies must identify and focus on high growth and high potential markets, and let go of business with low growth potential."
"The priorities and needs of customers often change during
and after the crisis. Businesses must remain engaged with the customers to
adapt to evolving needs. When recoveries begin after the crisis, the company
will be prepared to onboard new clients, sell new products capturing the market
in high growth sectors.
A recent example is from an emerging market-focused, freight logistics company. In 2016-17, sea freight rates dropped by 60 to 70 per cent. This negatively impacted the company’s business in freight forwarding. The company focused on rapidly developing a technology platform to deliver high-quality service for its customers and to reduce its operational expenses. The company deployed the technology platform soon after the crisis and consolidated all non-customer facing processes to a centralised offshore facility powered by technology. These measures helped the company improve its operational efficiencies to exceed industry benchmarks of efficiency ratios and operating leverage."
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
Emerging Markets Focus
The firm has initiated several private equity funds investing in several African countries, South Korea, Mexico, India, and Sri Lanka since its founding. Zephyr's funds serve medium size enterprises that are often ignored by larger private equity players. Zephyr funds provide growth capital to established companies with proven business models and sustainable competitive advantages.
Investment activities are currently focused on India, Sri Lanka and Africa.
Zephyr Peacock India
Zephyr Peacock India provides equity financing for fast growing, small to medium sized companies led by strong entrepreneurs and management teams.Read More
Emerald Sri Lanka Fund
Emerald Fund provides equity financing for fast growing, small to medium sized (SME) Sri Lankan companies led by strong entrepreneurs & management teams.Read More
Zephyr Acorn provides equity
Zephyr Acorn provides equity financing and business support to innovative early-stage companies in East Africa.Read More
Active Portfolio Support
The firm's special expertise lies in bringing global best practices to medium-sized growing companies by assisting them in conceptualizing sustainable business strategy, management development, compensation, ESG, expansion outside of their home country, capital structure and positioning for stock exchange listing or trade sale.