Categories
Realty

Jerry Rao wants to give you 15% assured returns

Jerry Rao is a well-known entrepreneur most famously known for starting Mphasis.

His latest venture is Value and Budget Housing Corporation (VBHC) of which he is the Executive Chairman

I was surprised to get this offer from VBHC which promises the investor an assured return of 15%

[gview file=”https://alphaideas.in/wp-content/uploads/2015/07/Chennai-Investment-Scheme-V1.pdf”]

Basically, VBHC is using the credit profile of the Investor to get itself low cost HFC funds.This is surprising as only last year, VBHC had raised funds from pedigreed investors like Carlyle group and IFC.

What happened Jerry?The money ran out?

Categories
Anecdotes

Two stories from Rahul Bhasin

 Rahul Bhasin is a private equity investor who is trying to invest in Indian factories despite the government of India emphatically telling him that this is not a smart thing to do. He had two stories to tell me. The first is as follows: Bhasin received a business investment proposal from a dynamic entrepreneur in Tiruppur. The proposal involved dismantling the existing factory in Tiruppur and moving it to Oman. The entrepreneur claimed that despite Oman’s high labour costs, the sheer ease of doing business there would make this proposed shift economically viable and profitable. Needless to say, Bhasin, being an Indian patriot of the subdued variety and not a hyper-minister, was not sure whether he should weep or laugh. The second story is about a run-of-the-mill factory. The factory manager answered all questions competently. When it came to questions relating to the use of the back-up diesel generator, the manager started to fumble. Finally, he said rather sheepishly: “To tell you the truth, Mr Bhasin, we have never had a need to use the back-up generator in years. Our power supply has been quite reliable.” No prizes for guessing — this factory is in Gujarat-from IE

Categories
Quotes

Jerry Rao:All of India could look like Bengal

We are shutting down mines and our few factories, convinced that these actions are pro-poor. We de-industrialise Coimbatore and Ludhiana, by forcing 16-18 hour power cuts on them, even before we have successful industrialisation. Incidentally, while by no means the only one, power-cuts were a significant factor in de-industrialising West Bengal. Some 20 years ago, I had gone to pay a visit to Mr Dugar, who was my company’s landlord in Kolkata. After several generations of Dugars doing business in difficult terrains in Assam, he was busy selling his tea gardens in Assam and buying some in Munnar. I congratulated him on the improvement of the power situation in Kolkata. “Dugar saab, ab to power cuts ka problem chala gaya hai, aapke Kalkatte mein.” He actually started crying.

“Rao saab, aisa mat kahiye. Kalkatte key sab kaarkhaane band ho gaye hain. Isi liye power ka problem kum ho gaya hai. Yeh koi tareeka hai power cut ki samasya ko solve karne ka? Yeh to bahut hee bura hua hai.” As you look at the chunks of land all around Kolkata, Howrah, Sealdah, Garden Reach, where factories are shut, the equipment is rusting, grass is growing in areas that were earlier paved, one begins to understand Dugar. In the coming years, get prepared to see these sights in other parts of the country too. There is a saying: What Bengal thinks/ does today, the rest of India thinks/ does tomorrow. We are determined to create a de-industrialised moonscape across India. All of India in 2035 could, and probably will, look like Bengal does today.-wrote Jerry Rao