Transcript RVCF - RIICO

Emerging opportunities in Technical Textiles
-Rajasthan Perspective
13th September, 2010
Rajasthan Venture Capital Fund
Managed by
Rajasthan Asset Management Company Private Limited
Objective
Supporting growth in Technology and the
emerging high growth sectors
Provide healthy returns to the Contributors/
Investors by realizing substantial long-term
capital appreciation
Focus on SMEs through early and growth
stages of funding
RVCF I
RAMC setup in the year 2002-03 jointly by RIICO, SIDBI, Bank of Rajasthan
and few IT companies, as an autonomous private sector company.
RAMC acts as Investment Manager to Rajasthan Venture Capital Fund (RVCF)
with twin objective of supporting growth of technology and innovations and to
provide healthy returns to its contributors.
Investment Pan India : focus -Rajasthan and NCR.
RAMC has two Funds under its management ie RVCF-I and RVCF-II
RVCF-I commenced operations in the year 2003 with a pilot corpus of INR 16
Cr. contributed equally by RIICO and SIDBI.
The first fund invested INR 16 Cr in 10 projects: 5 in IT sector, 2 each in Retail
and Tourism sectors and one in bio-technology sector - located in Rajasthan
and National Capital Region (NCR).
RVCF II
 RVCF-II started operations in 2008-09 on receipt of the permission
from Securities Exchange Board of India (SEBI).
Committed corpus of INR 115 Cr. contributed by 11 contributors ( FIs,
Insurance companies and Technology Dev. Board). Raising additional corpus
of INR 35 Cr under “Green Shoe” option.
Preferred sectors: Information Technology, Biotech, Auto, Clean Tech, Agro &
Food processing, and Other High Growth newTechnology based Projects.
Second Fund (RVCF -II) –Recently committed INR 73.45 Cr in 8 projects : -Two
each in IT and Retail . One each in Agro, Health, Auto and Media.
RVCF is one of the three regional funds, out of 12 such funds supported by
SIDBI, to have successfully raised second fund, based on its successful track
record.
Performance matrix of Investee companies – RVCF I
Name of Company
Investment
Committed
Natural
Technologies Pvt.
Ltd.
Banking Software
Exited with an IRR of 26.26%
Cyber Futuristics (I)
Pvt. Ltd
BPO/KPO
Rs. 104 Lac
Escotoonz
Entertainment Pvt.
Ltd
Animation TV
serials and films
Exited with an IRR of 6%
Liqvid eLearning
Services Private Ltd
E-Learning
Rs. 300 Lac
Home Furnishing
Retail
Exited with an IRR of 41%
Hiteshi Herbotech
Pvt. Ltd.
Bio Agri
Rs. 60 Lac
Fast growing demand, Raw material
availability, Experienced management
Harbinger Techaxes
Pvt. Ltd.
Business
Analytics
Software
Rs. 200 Lac
Exit made at IRR of 8.5%
Vasari IndiaPvt. Ltd
Ethnic Wear
Retail outlets
Rs. 240 Lac
Proven track record, Well established
Market
E-Factor Adventure
Tourism Pvt Ltd
Expansion of Hot
air Ballooning in
North India
Rs. 200 Lac
First company to have permission
from GoI to do hot air ballooning on
commercial basis
Geeta Star Hotels
and Resorts Pvt. Ltd
Specialty Hotels
Rs. 180 Lac
Eco Friendly Hotel
The Home Store
India Limited
VASARI
Product/
Services
Geographical advantage, Growth
potential, Management capabilities
Negotiation for Exit at IRR of 16.5% is
an advanced stage
Recent Investments of RVCF II
S.
No.
Name
Investment
Committed
INR in Crore
Sector
Product/Service
1
Imaging Super
Consultants Pvt. Jaipur
5.95
Health
State of Art Linear
Accelerator Machine in
PPP with Hospital,
Jaipur
2
AAA IT Solutions Pvt.
Ltd (Job Junction),
Ahmadabad
3.00
ITeS
Vocational Training
Institute and First
Employment Exchange
for Blue Collar Jobs in
India
3
Rajasthan Patrika Pvt
Ltd. Jaipur
15.0
Media
Digitization and
expansion of print
media
4
Sebacic India Ltd,
Vadodara
5.0
Agritech
Manufacturing plant of
Sebacic Acid using
Castor Oil
5
The Loot India Pvt Ltd,
Mumbai
15
Retail
Discount Retail Store
6
Technico Industries
Ltd, Baval
15
Auto
Auto ancillary –OEM
Maruti, Toyota, Nissan
7
NexTenders India Pvt.
Ltd, Mumbai
8.5
IT/ITES
E-procurement
8
XSIS IS Promotions
Pvt. Ltd
6.0
Retail
Sports Equipments
9
Total
73.45
Imaging Super
Consultants Pvt. Ltd.
SEBACIC INDIA LIMITED
Investment Strategy
A) Investment
• Preferred sectors: Information Technology, Biotech, Auto, Clean Tech,
Agro & Food processing, and Other High Growth newTechnology
based Projects.
• Upto 40% equity
B) Geographical Reach
• Pan India investments with focus on Rajasthan and NCR
C) Investment Range
• Investment range: INR 2 Cr to INR 15 Cr per VCU
D) Investment Horizon
• 3 to 5 years with expected IRR of over 20%
E) Investment Instruments
• Equity shares
• Optionally convertible cumulative preferences shares (OCCPS)
• Optionally convertible debentures (OCD), etc.
• or as permitted by SEBI
Exit Options
•
Strategic Sales-Mergers/acquisitions or Trade
Sale
•
Initial Public Offerings (IPOs) to the public.
•
Buy back by company/promoters.
WHAT SHOULD A GOOD BUSINESS PLAN INCLUDE
• Executive Summary - Brief Details of the Project and Extent of Financial Support Required.
• Description of Business and its industry
• Details of idea/plan
• Scalability
• Entry barriers
• Creation of value
• Market Research and analysis
• Design and development plans
• Operational plan
• Management team / organization
• Critical risk and problems
• Financial plans
• Competitive Strengths As Perceived By the Promoters and the Management.
• SWOT Analysis
• Proposed Exit
The Do’s & Don’ts of Business Plans
• The business plan is best written by the management itself,
• Know what you don’t know and make sure you spend the
time to figure it out,
• Avoid exaggeration of the facts and support your claims,
• Address key concerns of the audience,
• Tailor make the plan to suit the profile of the audience,
• Discuss all identified risks, don’t be selective,
• Develop the financials and executive summary sections last,
• Get an outsider’s perspective, and
• Avoid jargon and “fluffy” adjectives such as “best”,
“superior”, etc. without supporting justification.
Thank You
Girish Gupta
CEO, RVCF
[email protected]