KKR & Co. Bullish on India’s Consumer Sector for Investment Opportunities

KKR & Co. Bullish on India’s Consumer Sector, Eyes Investment Opportunities

In a recent interview in Mumbai, Gaurav Trehan, head of Asia Private Equity and CEO of KKR & Co.’s India business, expressed optimism about the investment opportunities in India’s consumer sector. Despite elevated valuations, KKR remains bullish on India’s domestic consumption story, believing it will continue to be a long-term success.

KKR joins other global firms in deploying billions of dollars in India, attracted by the country’s fast-growing economy and investment incentives. The firm has already invested about $11 billion in India over nearly two decades, with a focus on healthcare, technology services, and consumer-focused sectors.

In the consumer segment, KKR has backed companies like Lenskart Solutions Pvt and Lighthouse Learning Group, as well as taking a stake in Mukesh Ambani’s retail business. Looking ahead, KKR may also explore opportunities in the manufacturing sector, driven by the government’s initiatives to promote India as a manufacturing hub.

Despite challenges in the past, including losses in its local credit portfolio, KKR remains committed to investing in India through its Asia credit fund. The firm raised $1.1 billion for its debut KKR Asia Credit Opportunities Fund in 2022, with a focus on the Asia-Pacific region.

With plans to add executive advisers and expand its presence in India’s direct lending market, KKR is poised for growth in the country. The firm, known for its infrastructure investments in India, may also consider entering the real estate sector in the future.

Founded in 1976, KKR has evolved into an alternative-asset management giant with a diverse portfolio. At its recent investor day, KKR executives outlined their goal of reaching $1 trillion in assets under management in five years, with a focus on Asia, infrastructure, retirement, and wealth as key growth areas.

As KKR continues to expand its presence in India, the firm remains optimistic about the country’s investment potential and is poised to capitalize on opportunities in the consumer and manufacturing sectors.