Posted on 13 April, 2020
Providing guidance to entrepreneurs and business
owners from his own experience in the aftermath of 9/11 and the Great Financial
Crisis, "Google and PayPal were founded just two years prior to the
dot-com crash. A crisis is a terrible thing to waste", writes Mukul
Gulati, Managing Partner, Zephyr Peacock.
Click
here to read the full article on ‘Economic Times’
Below is an excerpt from the post which first appeared on
Economic Times on 13 April 2020:
What are the implications of Covid-19 for businesses in
India?
·
Business leaders need to focus on the health and
safety of employees, customers and the community. This public health crisis is
posing a direct risk to lives, and businesses need to prioritize safety and
health.
·
Businesses need to conserve capital and optimize
cost. These steps will help the business survive until such time that the
economy starts to recover.
·
Business leaders need to adapt the business
model to the post-crisis reality. We know that the post-coronavirus world will
look very different from the current one and the crisis will give rise to long
term trends paving way for new business models.
Businesses such as retail, restaurants and movie theatres
that rely on the congregation of a large number of people will be impacted for a
considerable period of time. In the post-coronavirus world, new opportunities
will emerge, and more resilient business models will develop. Long term trends
such as online delivery, cloud-kitchens, tele-medicine and ed-tech will
accelerate. Businesses will increase investments in deploying remote
communications, artificial intelligence and 'contactless' services.
Times of crisis lead to new opportunities
Google and PayPal were founded just two years prior to the
dot-com crash. The second World War provided economies of scale to manufacture
and laid the foundation of global leadership for American businesses. The
balance of payments crisis in India in 1991 led to economic reforms that helped
establish the foundation of modern India.
While globalization is here to stay, western economies and
businesses will seek to reduce their reliance on China. Will Indian policy
makers create the needed policy support by cutting red tape and improving
infrastructure? Will Indian businesses be ready to capitalize on these new
opportunities? As the saying goes, 'a crisis is a terrible thing to waste'.
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 MoreEmerald 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 MoreZephyr Acorn provides equity
Zephyr Acorn provides equity financing and business support to innovative early-stage companies in East Africa.
Read MoreActive 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.