Bharti Enterprises, the parent company of Airtel, plans to get into the investments space by being strategic partners in new businesses. The company has roped in Mr. Prakash Nene, a senior ICICI Ventures executive as corporate director, investments and new opportunities to spearhead the initiative with the mandate to identify new business opportunities where Bharti Enterprises can invest. He would report directly to Mr. Sunil Mittal.
Bharti Enterprises is the parent company of the Sunil Mittal group with investments in Bharti Airtel, financial services venture Bharti-AXA and fresh food and vegetables distribution business Field Fresh. The group is making a foray into the retail business through a wholly-owned subsidiary Bharti Retail.
Bharti Enterprises has surplus cash and is looking at new investment opportunities to deploy these funds in an optimal manner. The company is clear that it does not want to be a mere financial investor and wants to invest with a long-term horizon and help the investee company or business in creating value. It is possible that the company may also incubate new businesses.
Bharti Enterprises will also look at investments in mutual funds and sundry other financial instruments. Bharti Enterprises move to enter the strategic investment space is in line with other business families and high net worth individuals who have branched out into private equity. Prominent examples include Azim Premji, who has started Azim Premji Investments, and Dabur’s Burman family who have made investments in their personal capacity in companies such as Punjab Tractors and Vishal Mega Mart. Bharti Enterprises will differentiate itself from others in that it will make direct investments as a company and play a far more active role.
Read more in The Economic Times article.
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