Impact

Freedom

Taking a billion people out of poverty in India while preserving and enhancing democratic freedoms will transform the world and holds the potential to create a force for good in the midst of the transition of the world to a new civilisation

Citizenship

Inclusion

Exclusion

Direct Impact

International Participation

Commercial Impact

GPC seeks to leverage its thematic research platform to advocate for and influence government policies in India and globally which promote the ideas of Peace, Prosperity and Freedom. The firm regularly produces policy research across a range of topics which address key challenges facing India as it seeks to develop rapidly and sustainably, and establish strong, peaceful links with the rest of the world. A selection of these is provided below

India’s growth is being propelled forward by five areas of mass inclusion which are in turn driving income growth and poverty reduction at scale. GPC seeks to invest in themes and companies which are contributing to financial, digital, healthcare, education and work place inclusion, and leverages its research platform to develop thought leadership in these areas


  • 600m Indians have gotten access to the internet over the last decade, with nearly half of these over the last five years, as the country has rapidly built out its 3G/4G networks, and low-cost smartphones have proliferated
  • Internet access is transforming India with new delivery models for all types of services (education, healthcare, retail) and access to information for people at the bottom of the income pyramid allows them to succeed as consumers, employees and entrepreneurs
  • In spite c.6.5x growth in India’s internet user base over the last decade, internet penetration in India is still only c.50% compared to c.60% in China and c.80% in the US, indicating significant further potential

  • The size of India’s education sector is expected to increase by c.2x to US$180bn by 2020, driven by growth in India’s “young population” (ages 6-17) and the increasing adoption of digital learning
  • Despite this growth, there are significant gaps in India’s education infrastructure; there are 3-5x more primary schools than secondary schools in the country, there is a shortage of c.1.5m trained teachers and the country’s average student-teacher ratio of 42 is one of the highest amongst emerging market economies
  • As such, there is significant potential to transform India’s education and skills development capabilities, with a combination of physical and digital infrastructure required to deliver higher quality education in the country

  • 355mn new bank accounts opened in India with c.US$14bn of deposits, since Aug-2014 under the financial inclusion campaign initiated by the Government of India resulting in increase in Indians having bank accounts from 35% to 80%
  • This has resulted in an increase in credit access in rural India, improved efficiency in India’s welfare distribution system and a reduced reliance on the cash economy
  • This increase in bank accounts notwithstanding, c.20% of the Indian population still does not have access to a bank account; additionally, of the new bank accounts opened in the last 5 years, 15% are “zero balance” accounts

  • India’s healthcare market is one of the fastest growing in the world (forecast to grow by c.US$372bn by 2022), driven by rising disposable income levels, greater healthcare awareness and an increase in lifestyle-related diseases
  • Additionally, government expenditure on healthcare is expected to increase from c.2% of GDP today to c.7.5% of GDP by 2030, in line with the healthcare spends of other emerging market economies
  • However, despite these growth drivers, there are sizeable gaps that need to be filled across India’s healthcare sector, particularly across areas like doctor availability (0.7 doctors per 1,000 people), hospital beds (1.3 beds per 1,000 people) and health insurance coverage (c.85% of India’s population lacks health insurance)

  • India’s current labour force of c.500m is greater than the combined forces of Japan, the European Union and the United States; further India’s working age population is expected to cross 1bn and surpass China in the next 10 years
  • This demographic dividend has the potential to fundamentally reshape India’s position in the world, creating a global leader across a wide range of sectors that will benefit from a young, growing and most importantly, well-trained labour force
  • However, women’s labour force participation remains extremely low, and a large portion of India’s c.500m labour force is severely under-employed in either the agriculture or ‘unorganised’ sectors

Independent of whether permitted by local or international law, GPC does not invest in any businesses which:

  • Provide goods and services that can harm human life such as weapons/munitions/armaments
  • Provide products that can directly damage mental or physical well-being such as pornography, alcohol, tobacco or drugs
  • Harms animals or keep them in inhumane conditions
  • Violate international and national standards for human rights or treat their employees unfairly
  • Violate environmental laws or have an irreparable harm on the environment or biodiversity
  • Operate their businesses using corrupt business practices, or make improper payments to public officials or secure their returns from unethical practices

Note: In addition to the above, GPC will adhere to the ‘harmonised exclusion DFI list’ and will not invest in any activity that includes: (i) forced or child labour, (ii) activities or materials deemed illegal under local law or by international conventions/agreements, (iii) cross-border trade in waste or waste products, (iv) destruction of high conservation value areas; (v) radioactive materials and unbounded asbestos fibres, (vi) pornography and/or prostitution, (vii) racist and/or anti-democratic media and (viii) Any business with substantial part of business in alcoholic beverages, tobacco, weapons and munitions, or gambling/casinos

GPC looks to create a direct development impact through its investments by supporting portfolio companies in declaring, making, measuring and communicating their impact. As a result:

  • The firm introduced an ESG Policy in 2016 and has worked closely with leading global development finance institutions and external experts to develop a strong internal systems and procedures to mitigate environmental and social risks and capture value-addition opportunities on a systematic basis within all of its portfolio companies
  • The firm closely evaluates and monitors environmental and social risks and development impact delivered by its portfolio companies and looks to continuously improve their performance by integrating environmental and social initiatives as part of core portfolio management plans to mitigate risks and capture opportunities

As a result of these initiatives, GPC has been able to bring its investee companies in line with global best practices for ESG practices becoming standard bearers for others in their industries while delivering a significant development impact in India and beyond

 

Impact by Our Invested Businesses

102,000+

Jobs Created

US$800m

worth of energy savings

5m

small businesses digitised

1.2m

individuals financially empowered

2,000

affordable medicines distributed among 40 countries

Reducing Energy Wastage

Enzen uses innovative low-carbon technologies and solution to help companies increase energy efficiency by reducing their energy costs and emissions

Impact Delivered: US$800m worth of energy savings

Reduced Power Losses and Renewable Energy Promotion

Torrent Power is India’s leading power generator and distributor and operates renewable energy plants (wind and solar) across eight locations. The company has the lowest transmission & distribution (T&D) losses in the country due to their in-built efficiency enhancing design features

Impact Delivered: 611 MW of renewable energy operational capacity, T&D loss of 4.98% on licensed distribution of 2,500 MW

Low Cost Drug Delivery

Torrent Pharma is one of India’s leading pharma companies, which utilizes robust manufacturing technologies and manufacturing facilities to distribute quality medicines globally at affordable prices

Impact Delivered: 2,000+ product registrations across 40 countries

Financial Inclusion

Edelweiss Group is one of India's leading diversified financial services conglomerates that provides underserved customers access to finance, enabling them to create assets, generate wealth and protect incomes

 

Impact Delivered: Advanced financial inclusion for 1.2m individuals

Digitising Small Businesses in India and Africa

Azure leverages its technology platform to help digitise small businesses by onboarding them onto leading global digital platforms at a large scale

Impact Delivered: 5m small businesses digitised

GPC believes that India’s development into the world’s second largest economy by [2030] depends on it establishing broad and deep business linkages with the rest of the world, and in particular with major markets including the US, Europe, China and Japan. Therefore, the firm works closely with its portfolio companies to develop and implement international expansion strategies to help these companies access foreign markets, talent, investment and expertise

Since its inception, GPC has successfully leveraged its international network and senior advisors to implement a number of international expansion initiatives with its portfolio companies, including:

Securing large, transformative contracts from international clients

Recruiting senior management in and building out international sales teams across the US, Europe, China, East Asia and Latin America

Executing international acquisitions and implementing M&A strategies

Identifying and securing joint venture partners

Securing rights to global intellectual property and helping portfolio companies secure their IP in overseas markets

GPC’s approach has utilised India’s attractive cost structure to build international companies that can be exited internationally

  • 77of portfolio companies have international presence
  • 55of portfolio companies have grown international revenues more than 50%
  • China, US, Europe were most important markets penetrated for profitable growth
  • 17revenue growth and 21% EBITDA growth in last 3 years, as strategy further crystallised
  • 25,000 new jobs added across portfolio since investment, c4.1x increase in number of employees, providing cost advantage

 

75% of invested companies ranked top 10 in their sectors, 45% ranked top 3