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Investment
V-Mart
This mid-sized retailer of affordable apparel and related merchandise, with 28 stores spread across 20 northern and western Indian cities, has revenues of Rs 100 crore (~US $25 million), and attractive EBITDA margins. Its stores range in size from about 7,000 to 12,000 square feet, targeting lower to middle income consumers and sell both branded and private label merchandise. With a significant proportion of company-operated stores, V-Mart has put a strong franchise model in place which is growing rapidly.
It is well positioned to benefit from the briskly growing Indian organised retail industry. V-Mart typically locates stores in smaller cities and towns, thereby benefiting from relatively low rents and limited competition. Indeed, in the tier-II and tier-III towns in which V-Mart competes, it is the market leader in the value-retailing segment. By rapidly adding new stores in new towns, V-Mart is maintaining its first-mover advantage and positioning itself to grow revenues at about 30% CAGR for the next several years. The company is led by a strong and dynamic management team with over 15 years experience in developing organised retail stores in competitive metropolitan areas and tier II towns
Bombay Stock Exchange (BSE)
Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now spanning three centuries in its 133 years of existence. Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient access to resources. There is perhaps no major corporate in India which has not sourced BSE's services in raising resources from the capital market.
Today, BSE is the world's number one exchange in terms of the number of listed companies and the world's fifth in transaction numbers. The market capitalisation as on 24 November 2008 stood at US$ 552 billion. An investor can choose from more than 4,700 listed companies. The BSE index, SENSEX, is India's first stock market index that enjoys an iconic stature, and is tracked worldwide. It is an index of 30 stocks representing 12 major sectors. BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in more than 450 cities and towns of India. BSE has always been at par with the international standards.
Aditya Birla Private Equity has taken a minority stake in the BSE, which retains its strong duopolistic market position in a high growth market with strong barriers to entry.
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