Gilbert Ee
Linkages
Indian Private Equity Fund
Risk Management connectivity
5AT isn't only defining new business
initiatives, regional consolidation and
implementation. It is also about people
issues such as encouraging teamwork and
cooperation to achieve the needs of our
partners and clients. Gilbert Ee explains,
'For instance, in SAT we made sure we have
the right Management Information System
process that will encourage linkages across
departments. Also, throughout the project
GFM and other departments followed SAT
developments closely, to see what we
could do to support the planned growth in
activities such as efficiency in funding costs
or in terms of new product capabilities for
delivery to clients. This ensured we had a
holistic approach to the planned growth.'
Another new initiative is the Private
Equity Fund for India. This is an F&A
private equity fund partnership between
Rabobank and a local well-respected
partner. The fund will be run
independently by a professional team
investing in capital-hungry Indian
companies with a proven track record.
Murphy: 'We bring to the table our F&A
expertise and research and our
origination skills as bankers in India
where we have a primary position. The
other party brings significant private
equity skills to the equation. It's a good
symbiotic relationship.'
Srivastava, who is responsible for
overseeing the Fund continues, 'There are
two things happening in F&A in India: one
is that F&A businesses are building up
economies of scale and the other is the
development of brands. Until now,
processed foods has been a very small,
unorganised market. Now with the
demographic (including lifestyle) changes,
and interest of the international food
companies, the processed food industry
is poised for a big boom. Companies are
building up brands, not only for India,
but also for export markets, where
equity is required. There is also a lot of
consolidation in the sector so that firms
can enjoy economies of scale, but
consolidation requires substantial equity
as well.'
Risk Management was also targeted
in SAT. Says Ee, 'In the past, GFM
looked at local currency or Asian
market risk independently in each of
the countries. We can now look at the
portfolio of total Asian risk to get a
more Consolidated picture and allow
us to manage or diversify this risk more
efficiently.'
The Word
