In a major initiative towards increasing deal flows between companies in India and the UK, a separate network of ?angel? investors from both the countries will be launched in January. The angel investors network will offer financial assistance to Indian firms seeking to enter the UK and vice versa.
To be launched by UK trade minister Digby Jones when he visits India in January, the initiative is being spearheaded by well-known market expert and fund manager Alpesh Patel, who is also a member of the UK-India Business Council board.
In an exclusive interview to FE, council chief executive Sharon Bamford said, ?The network will bring together angel investors from the UK and India to look at syndicating deals and building trust and relationships for companies that are looking to internationalise. The companies may need smallish amounts??2-3 million?to start to make the move. This network will facilitate that.?
The rationale, Bamford said, is, if there was an Indian company going to the UK , it would need help on contacts, networking and on regulation and systems. This would also hold true for a UK company coming into India. Investments by angel investors from the host country will be of major assistance to such companies.
Said Bamford, ?How do these new entities know who to trust? Are they on the right side of the law, for instance? If you have investors and you syndicate that deal and there?s a UK investor involved in an Indian company, if it?s his money, he?ll make sure that works.?
?But not only that, they will invest in companies where they have sectoral experience. They will understand the local network and infrastructure, so Indian companies set up in the UK have access to support in the same way British companies have,? she added.
Bamford explained the council was bringing the angel investors together to look at the increasing deal flows on both sides. ?A part of our role as an enabler is to create a new network. We want to see real deal flows. Tangible deals. This is a new way of looking at India . In April, we will have an event on early-stage investments and internationalisation in London. The first milestone is in April, and we want to see some investments by then.?
On major deals between India and the UK , Bamford said the council was delighted with the Tata-Corus and Vodafone deals, and was now watching events unfold on the Land Rover-Jaguar front closely.
?I think that?s the beginning. The UK warmly welcomes Indian investments. So we?re watching with great interest the Tatas and their interest in the Land Rover-Jaguar deal. There?s also another Indian company interested in it. I am waiting for an announcement,? she said.
Bamford added that the UK would like to see the retail and insurance sectors in India opened up more. ?We think there?s a big opportunity in the insurance market, for example, and much more liberalisation is needed around there. But we?re talking to the government. I think we?re at the beginning and we?re moving up the chain, and that?s how it should be.?
