Senior Research Scholar, Shorenstein-Asia Pacific Research Center, and Director, Center for South Asia, Stanford University, dossani1@stanford.edu
Dr. Dossani is a Senior Research Scholar at the Shorenstein Asia-Pacific Research Center. His research is on development in South Asia, with a focus on policy reforms in technology and regional security. He is an advisor to the Indian government on higher education policy and innovation. His most recent book is India Arriving, published in 2007 by AMACOM in the United States and by McGraw-Hill in India. His next book is Does South Asia Exist? Prospects for Regional Integration, co-edited with Daniel Sneider and Vikram Sood, to be published in 2009 as part of the SAPARC-Brooking Series on Asian Regionalism.
The Impact of Private Equity on the Indian Firm
The private equity industry in India is about a decade old. It invested about $7 billion in India in 2009, a decline from $14 billion in 2008. While most of the money comes from overseas sources - primarily American pension funds and endowments - the management tends to be based in India and the companies that are invested in are companies that cater to local markets. As a result of private equity investments, a range of old consumer industries has been revitalized with new management models, higher levels of technology and access to capital markets. Based on a survey of 15 portfolio firms, we identify the impact of private equity on organizational evolution in India. We find that private-equity funded firms can become market leaders and that the changes in their organizational structures can become industry benchmarks.
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