VCCircle

There are more details emerging on what the outgoing Maruti Udyog Ltd Managing Director Jagdish Khattar is expected to do after he hangs up his boots on December 18. The chief of India's largest car maker is turning an entrepreneur at the age of 65. He is apparently looking to set up a chain of multi brand auto distribution and services outlets, probably along the same lines of AutoNation of the US ($19 billion in annual revenues), reports The Economic Times. His clientele will be the new multinational car makers coming to India such as Nissan, Renault, Volkswagen etc.
His value proposition to these makers will be higher distribution and service reach to the end consumer at lower overheads such as real estate costs. The idea seems to be good since it does not make sense for multinational automakers to have their own distribution outlets and service stations in the entire country as they are unlikely to be a mass product like the way a Hyundai or Maruti is. It's not known yet if Khattar has landed funding. Venture capital funds like Matrix Partners India, which recently expanded its fund size to $450 million, is looking at backing experienced CEOs like Khattar to become entrepreneurs. They are ready to write out larger cheques for greenfield companies founded by such veterans as against a typical startup venture.
For instance, ex-Hyundai chief in India BVR Subbu has formed an auto manufacturing company (they have taken over Daewoo Motors' plant near Delhi) which will make vehicles for MNC auto makers on an outsourced basis. Subbu, who has partnered with people like Ajay Singh of SpiceJet, has secured $50 million funding from DE Shaw, South Africa’s Rand-owned fund Satwa (based out of Hong Kong), and Infrastructure Leasing and Financial Services Ltd (IL&FS).

Jagdish Khattar is hanging up his boots at Maruti Suzuki, India's largest car manufacturer. But the man is not retiring from working life completely. Former bureaucrat-turned-MD Khattar is contemplating being an entrepreneur. Speaking to reporters on Monday on the sidelines of the company press conference, Khattar said he was yet to decide what venture he would embark on after he remits office on December 18.
Khattar has been a successful CEO, and he led the company in the last eight years through a turbulent period of transforming Maruti from a PSU to a publicly-listed, private sector entity. Khattar joined the company in 1993, and became the MD of the company in 1999.
Since Khattar is venturing out on his own, it's likely he will come under the radar of PE/VC funds. DS Brar, former CEO of Ranbaxy Pharmaceuticals, found his calling as an entrepreneur by teaming up with G V Sanjay Reddy to found GVK Biosciences. Rashmi Barbhaiya, former R&D head of Ranbaxy, also quit the job to start Advinus, which is backed by Tata Group and ChrysCapital. Sequoia recently hired George Zacharias from Yahoo India to head up a managed IT services company.

I am curious to know how many of the business plan contest winners have made it big or at least won a larger VC funding? If anyone knows, please comment. I know that Travelguru was a Harvard Business School business plan product. Is it largely a PR exercise for the organisers or do they really mean business? The debate can go on.
But the news is Siemens Venture Capital, the corporate venture arm Siemens AG, has announced a business plan competition for India. It's called the India Innovation Program. SVC has invited business proposals from entrepreneurs and innovators in the areas of energy and environmental care, healthcare, automation and control, industrial and public infrastructures, lighting, automotive, and information technology, a release from the firm said. The last date for submission of the plans is November 30, 2007.
In energy and environmental care, the focus is on, for instance, solutions related to energy generation and storage, smart grid technologies and energy efficiency improvements. In healthcare, Siemens is looking at business plans focusing on imaging technologies, diagnostics (laboratory point of care), molecular imaging & biomarkers, image guided systems and therapies, healthcare IT&Software, as well as new diagnostics technologies (e.g. nanotech, optical).
In industrial and public infrastructures, the focus is on sensor and automation enabling technologies, such as wireless connectivity, next generation batteries, mesh networks and process improvements, including non-destructive testing.
The top three finalists will receive a token cash prize (the amount is undisclosed). In addition to the prize, the winners will also be evaluated for a funding opportunity from SVC and / or opportunities for collaboration with Siemens, the release said.

Details here.

TiE-ISB Connect has sought entries for its annual business plan competition. Entrepreneurs are requested to submit a maximum of 5 page abstract of their business idea to TiE-ISB Connect Committee to qualify for an elevator pitch on November 14-16. This will be attended by some leading venture capitalists.

Applications are available at www.tie-isbconnect.com. The last date for submission of business plans closes on 31st August 2007.