Investments in Indian agri-business firms rose 75% in the first half of 2013. A total of US$126 million was invested across nine companies in the sector by private equity and venture capital companies. During the same period last year, six companies received US$72 million, according to Venture Intelligence.
Meanwhile, agri-business investment activity rose so much during the latest quarter that it was now tied with healthcare in second place for being the favorite industry among venture capitalists. This was according to data on the number of investments for the second quarter of 2013 gathered by Venture Intelligence. Some of the companies that attracted VC interest were Arohan Foods, Barrix Agro Sciences, Khyati Foods, Sarona Asset Management, and Lawrencedale Agroprocessing.
"The rising appetite for such companies among overseas investors and also the higher prices being enjoyed by agri commodities in recent years could continue to sustain Private Equity interest in the industry," said Arun Natarajan, chief executive of Venture Intelligence.
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