Business Activity
Dhir India invests in underperforming companies and assets in India with the objective of providing shareholders with income and capital growth.
Non-performing assets are typically over-leveraged capital structures with insufficient liquidity and in default of their obligations to creditors. Often these companies have significant assets and/or solid underlying business fundamentals, which are not being fully utilized, especially in view of industrial sector growth, which has now caught up with the rest of the economy and is estimated to have been 9-10 per cent per annum since 2004-2005.
In the Company’s experience, the resolution of existing debts, and in some cases a turnaround of the underlying business, can lead to substantial profits on exit from the investments being generated in the short and medium term.
Primarily, Dhir India is seeking to create a diversified portfolio through four types of investment opportunity:
- the turnaround of companies
- the re-sale of assets or companies
- the break-up and sale of assets; and
- bridge financing
|