We develop opportunities in areas of growth. India is one of the world’s fastest growing economies and has emerged as a key destination for foreign investors in recent years.
Economic reforms initiated in the 1990’s have grown in scope and scale and produced increasingly beneficial returns.
One of them is the steady improvement in India’s relative position in the global economy, reflected in the country’s growing influence in international institutions, such as the G-8 and G-20, and its negotiation with free trade areas, notably ASEAN and the EU.
Another is the improved efficiency to be found in the economy and in the adoption of international “best practices” in the production of a cross spectrum of goods and services.
A third positive outcome has seen India’s ranking amongst the top ten investment destinations since 2007-08, attracting 195 Billion USD in FDI and 97 Billion USD in FII over the past 5 years.
Our Business Model
Red Ribbon has developed a proprietary incubation process through which we invest out own capital in selected projects that meet our stringent selection criteria.
Identifying an opportunity
When considering a project we assess factors such as:
- Foreign Direct Investment restrictions,
- Sector risks,
- Market size,
- Availability of human capital and scalability.
All our projects merit from technical and economic viability validation by international risk management companies such as Dun & Bradstreet.
Post due-diligence we identify and appoint an industry leader from the relevant sector to head the project as CEO. The appointment is based on the candidate’s track record, a shared vision, and their ability to establish, grow and list an enterprise. An equity stake is offered to the CEO by way of a generous stock option, linked to performance.
We use our own capital to progress each project through each early stage gestation milestone, making the project ‘Finance Ready’ with a significantly reduced risk profile.
Projects are then made ‘Investment Ready’ through the preparation of a suite of fund raising documents, such as the Information Memorandum, supported by detailed financial analysis and a comprehensive market study. These are distributed to a network of high net worth individuals and institutions for Phase II funding.
Once we have raised appropriate finance we move into a period of continuous asset management to drive each business forward. This is carried out through a controlling board presence, ensuring timely delivery of the business plan.
Potential exits for investors range from a listing on a London or New York stock exchange, to a trade buyer, an institutional sale, or a buyout by Red Ribbon Group (Phase III funding).
Identifying an opportunity