Davos 2023: Kedaara Capital's Manish Kejriwal Is Betting On These Sectors
India can no longer be ignored not only as a source of production, but also as a source of demand, said Kejriwal.
India's growth story will be led by companies in the financial services, consumer goods, and pharmaceuticals sectors, according to Kedaara Capital Advisors LLP's Manish Kejriwal.
The financial services market is massive in India right now, but it is still massively underpenetrated, Kejriwal told BQ Prime's Niraj Shah on the sidelines of the World Economic Forum in Davos, Switzerland.
"Whether it's lending, NBFCs, banks, or asset management, the market is still evolving, but the level of penetration is still lower," said Kejriwal, founder and managing partner at Kedaara Capital. "Whether it's insurance, both life and general insurance, the market is huge. We are coming up with ways to use fintech and technology to address the market from a credit evaluation perspective," he said.
"Then I see consumer durables. Take consumer goods, and we have consumer tech companies like Lenskart, Purplle, and Nykaa addressing certain verticals so strongly that they are able to deal with the same product in a much cheaper way for the end customer," he said. "India despite having the lowest per capita manufacturing, our products can be priced at a much more competitive level."
Pharmaceuticals, like IT services, is another sector with enormous potential as India emerges as the world's supply factory, Kejriwal said.
'India No Longer Ignorable'
After the nation was ignored for many years, boardrooms across the country are now focusing on their India strategy, Kejriwal said. With the disruptions in China, the world is now looking for alternatives.
"The bigger change is India emerging as a market for demand," Kejriwal said.
"Being a democracy with a relatively free market, it's probably people who are realising how attractive [India can be]... One is as a source of production," he said. "Whether it's I.T. services or pharmaceuticals, I see India as a demand source."
"Historically, we saw India as a source for I.T. services and Y2K services, but guys like Infosys changed that," Kejriwal said. "Even smaller I.T. services companies are doing phenomenal work, not just cheap low-end services [but] product development... India is a market too that can no longer be ignored."
The Kedaara Capital founder further stated that a financially strong China is crucial for India, "most importantly for our supply chains not to be whacked out of proportion".
Watch the full conversation here: