IndiaCo Ventures Ltd, a Pune based private equity firm, has received directors’ nod to invest $2-5 million each in Madhya Pradesh based manufacturing company Neo Corp International Ltd and UK based venture capital fund Grow VC Advisors Ltd. The proposed investment will be made in the next 18 months time, Rahul Patwardhan, Vice-chairman and MD, IndiaCo Ventures Ltd, told VCCircle.
Patwardhan informed that IndiaCo is not committing to put in $2-5 million to each of the firms, rather it will look at the opportunities and invest on the basis of the capital requirements for the companies.
Neo Corp International provides applications for textiles, agriculture and infrastructure and construction industry. IndiaCo’s investment in Neo Corp is part of its regular investment activity. Investment in Grow VC will help IndiaCo to leverage opportunities outside India, while at the same time it will help bring in technologies for the portfolio companies, said Patwardhan.
IndiaCo invests from its balance sheet and has invested in three companies so far in the last two years. They include Verity Technologies Pvt Ltd (25.64% stake), which provides value added services in telecom sector, Info Dynamic Telesystems Pvt Ltd (48.93% stake) in telecom infrastructure and Laser Cosmetics Pvt Ltd (20.83% stake) in healthcare sector.
IndiaCo invests through three of its vehicles – IndiaCo Telecom, IndiaCo Healthcare and IndiaCo Clean Energy. These are 100% subsidiaries of IndiaCo Ventures and focused on telecom, healthcare and clean energy sectors respectively. Besides telecom, healthcare and clean energy, IndiaCo is also interested in investing in several other sectors including manufacturing, defense & aerospace, IT & education and educational institutes.
Though the company did not invest through IndiaCo Clean Energy aggregate vehicle yet, but Patwardhan informed that it has been evaluating certain companies for making investment.
The company has posted Rs 3.9 crore as revenue in March 31, 2009, down from Rs 4.3 crore from its corresponding figure in the previous year. The net profit was at Rs 1.1 crore in March 31, 2009 as compared to Rs 1.7 crore in the previous year.