Australian billionaire bullish on India

Mr Kerry Packer, chairman of the $5 bn Australian Consolidated Press Holdings (CPH) is betting on India. He has already made two major investments in India . First one is in Himachal Futuristic Communications Limited(HFCL). The second one is a $ 250 million venture capital fund KVP Ventures. "India is by far the largest investment we have made and do not envisage this kind of investment in any other country," said his son, Mr. James Packer.

In the largest telecom industry deal struck in India, Consolidated Press Holdings invested around $ 235 million to pick up 10 per cent in HFCL. HFCL and CPH has also entered into a joint venture for floating two companies - one for manufacturing software and other for foraying into e-commerce. "We just want to be a small part of the Indian story, a minor part. We don't want any controlling stake or anything like that," the 67-year-old Mr Packer told the press.

The venture capital fund KVP Ventures is promoted by Himachal Futuristic Communications Ltd chairman Vinay Maloo, Mumbai-based stock broker Ketan Parekh and Mr Kerry Packer. KVP (which stands for Kerry, Vinay and Parekh) Ventures will be the third entity set up by Packer in the last one month. All three partners have equal stakes, Mr Parekh and Mr Maloo will hold the equity in their individual capacities. KVP Ventures, with an initial corpus of Rs 1,100 crore ($250 million) is reported to the country's largest venture fund.

The fund aims to identify, incubate and fund ideas in high growth, high technology areas such as infotech, software, Internet, e-commerce, telecommunications and media and entertainment. Biotechnology is another focus area. The fund will mostly look for investments in unlisted companies. Setting up an incubator for portals is also in the offing but Mr. Packer refused to divulge information regarding the size of these investments, adding that announcements would be made shortly.

We are going to find, promote and fund ideas which will become big stories, said Mr Parekh. We are lucky enough to invest in a country of the future. We are putting our money where our mouth is, said Packer at the press conference announcing the joint venture.

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