TVS Shriram Growth Fund Launched by TVS Capital

TVS Shriram Growth Fund is an India focused growth equity fund that is established with a vision to develop and nurture India's mid-cap businesses, especially businesses from emerging cities, into world class companies. It is registered with SEBI under the Venture Capital Funds regulations, and is managed by TVS Capital Funds. The sponsors of the fund are the TVS Group and Shriram Group. The fund will be a strategic growth partner that understands the nuances of building businesses and can offer a range of management expertise and professional services along the expansion path. The fund will target investee companies with the following characteristics:

• Mid-cap companies with revenues of Rs. 30 to Rs.250crores
• Proven business models that require growth equity capital
• Investments in sectors with consumer consumption theme
• Focus on emerging Tier II, III cities and metros
• Significant minority stake with active participation on the Board
• Investment size of Rs.10 to Rs.50crores

The fund intends to target investment opportunities in consumer consumption driven sectors, such as health care delivery, privatised education, hospitality, speciality retail, food & agro, and consumer media and entertainment. For example, media & entertainment sector is estimated to be Rs. 50,000crores approximately and is growing at 18% CAGR , and organised retail is estimated to be Rs. 75,000crores and is growing at over 50% CAGR. The fund will focus on sub-sectors that have a developmental theme, such as organising an unorganized sector, offering high quality products and increased choices to consumers or development of the entrepreneur and enterprise. The fund believes that providing growth capital to these opportunities can lead to disruptive growth and produce high returns.