Theme
Market Opportunity
Impact Opportunity
SDGs Impacted
Financial
Inclusion
25% growth in microfinance industry in last 5 years
20-30% p.a. growth in affordable housing finance
90% of Indians lack access to formal sources of credit
US$350bn gap in formal credit for India's 63m
Global Energy Transition
US$30tn total investment expected across energy transition technologies in next 20 years
2/3rd reduction in energy intensity needed by 2050
75% share of renewables in electricity by 2050 (25% today
Digital Innovation and Participation
US$10bn of SaaS revenue by 2025 for Indian companies
25% growth for digital IT services until 2025
0.7% of GDP spent on R&D in India (vs. 2-3% by peer group)
c.660m Indians still do not have access to the internet (2020)
Quality Healthcare Access
US$50bn medical devices exports from India by 2025
US$8bn revenue cycle management market by 2023
30m Indians slip into poverty annually due to healthcare costs
38 medical personnel per 10,000 people (vs. 45 targeted)
Education Inclusion
US$60bn online education market in India, growing at >40% per annum
32 students per primary school teacher (vs. 16 in China)
< 20% of engineering graduates are "employable"
GPC adopts a distinctive approach to investing in India based on creating market leaders, which, at this stage in India’s development, recognises the role of globalisation of Indian businesses and helping these businesses penetrate international markets as well as bringing international business to India
Strategic, Thematic Investing
GPC has a built a proprietary thematic research capability generating Indian, cross-border and international investment themes. This research has been effectively used to drive origination and deal flow for the Fund. Key investment themes developed so far include: Mass Inclusion; Digital Leapfrog; the Rise of the Indian Multinational; the Industrial and Infrastructure Revolution; a parallel Agricultural Revolution and Changing Demographics and Consumers
GPC invests primarily in healthcare, technology and services recognising that India needs international grade companies to emerge and foreign participation to drive mass market participation
Mass healthcare provision
- Current Gap: India’s ratio of 0.7 doctors per 1,000 people that is significantly lower than the WHO average of 2.5 doctors
- Future Trend Indicator: India’s healthcare sector is expected to grow to at a 16% CAGR to US$280bn by 2020
Mass technology & digital participation
- Current Gap: Indian Internet penetration at c.27% compared to 51% in China and 88% in the US in 2015
- Future Trend Indicator: Internet usage is growing at c.40% in India, compared to global growth of c.10%
Financial inclusion
- Current Gap: 19% of the Indian population does not have access to a bank account
- Future Trend Indicator: 255m new bank accounts opened in India with c.US$11bn of deposits, since Aug-2014
Mass education & skills development
- Current Gap: Only 8.2% of Indians are graduates with illiterates being six times more than graduates
- Future Trend Indicator: Size of India’s education sector expected to double to US$180bn by 2020
Workforce inclusion
- Current Gap: c.91% of India’s workforce is part of the unorganised sector
- Future Trend Indicator: At least 280m more people will enter India’s job market by 2050
India-International
The fund selects technology, healthcare and services, particularly financial, as meeting its criteria in terms of growth, profits, internationalisation scope and governance, Given, Indian companies have far lower cost structures, which, in the Fund’s target sectors, GPC estimates are 30-50% lower than in the U.S., this creates an opportunity for the Fund to partner with local companies which are looking to internationalise and in particular diversify and grow into more profitable developed markets
GPC’s International Approach to India
GPC investments help create companies with international revenues and a low cost structure utilising India’s advantages and leverage international know-how to help them succeed in the domestic markets too
Creates highly successful international businesses that operate in the most attractive international markets leveraging India’s cost structure advantage and providing access to India too
Creates market leaders in India by taking high potential quality Indian companies into the most attractive international markets and bringing them international partners
Partnership Capital
As part of its investment process, GPC develops a “value blueprint” for each company, which encompasses multiple initiatives in which GPC will participate. The initiatives are selected according to Portfolio Company business needs, their impact on value and GPC’s value addition skill set. GPC executes these initiatives in partnership with the the leadership teams of its portfolio companies, and the team has a demonstrable track record of working with senior management teams and business owners, to unlock value and reposition companies for growth
