The following information applies to both the SEAF India Agribusiness Fund and the SEAF India Agribusiness International Fund. While these two funds will in general target the same kinds of investment, depending upon the specific circumstances, there may be some slight differences in the portfolios of these funds.
SEAF established our SEAF India Agribusiness International Fund (SIAIF) in 2010 to target promising SMEs across thirty-three identified sub- sectors of India’s agribusiness value chain. At the time of the fund’s establishment, 40% of our investments worldwide had been in the food and agribusiness sector and we had worked for 6 years with Kotak Mahindra Bank in India on the India Growth Fund. Bolstered by our local team of experts in agribusiness finance, SEAF will apply our global agribusiness experience, along with deep local sector knowledge, to generate substantial sustainable growth in dynamic Indian agribusinesses.
India has a large agrarian economy and is one of the biggest producers of agricultural commodities in the world. The country boasts the world’s second largest amount of arable land and there is growing domestic demand for an increased quantity and variety in consumed food. Supported by a favorable policy environment and the demand-push impact of a young consumer class with a growing disposable income, India offers significant investment opportunities in the food and agribusiness sector and is poised to become a global player in these industries. Despite its promise, the agribusiness sector has historically been plagued by a lack of available growth capital and India’s rural, and predominately agricultural, population continues to be relatively unproductive and poor—with more than 500 million rural Indians living on less than $1.30 a day. The increased demand and favorable policy context, combined with the substantial opportunities to achieve higher productivity, value addition, technological improvements, and waste reduction, presents exceptionally high growth prospects and financial and development returns for the fund.