KKR bullish on India's consumer sector and private credit opportunities
KKR & Co. remains optimistic about the investment potential of India's consumer sector, despite high valuations. Gaurav Trehan, head of Asia Private Equity and CEO of KKR India, believes the sector will continue to offer attractive opportunities for the next 15-30 years.
KKR joins a growing number of global firms investing heavily in India, lured by its rapid economic growth and government incentives. The firm has already deployed $11 billion in India across various sectors, including healthcare, life sciences, technology services, and consumer. KKR co-founder Henry Kravis has indicated that the firm plans to invest its next $10 billion in India even faster than before.
Beyond consumer, KKR is also exploring opportunities in India's manufacturing sector, encouraged by government initiatives to establish India as a manufacturing hub. The firm may also consider adding external executive advisors to support its portfolio companies.
While KKR faced challenges with its local credit portfolio in the past, it remains committed to India's credit market. The firm has raised $1.1 billion for its Asia Credit Opportunities Fund and expects India to account for 20% of the region's direct lending market.
KKR, known for its diverse investment strategies, has so far avoided India's real estate sector. However, the firm is open to entering the market at the right time.
With its ambitious growth plans and focus on key areas like Asia, infrastructure, and retirement, KKR is poised to play a significant role in shaping India's investment landscape.