VALUEx Mumbai: A.M. Prasad on what is driving bullishness on investments in India

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Following in the footsteps of VALUEx Zurich Klosters and VALUEx Vail, VALUEx India held its first value investing conference in Mumbai, Nov 7-9, 2011.

As with all of the VALUEx conferences, the goal of VALUEx India is to serve as a forum for value investors from around the world to share ideas and to enable participants to become better investors and better people.

A not for profit event, VALUEx is inspired by the philosophy behind value investing, the open source revolution where leadership comes from a group of individuals and Chris Anderson / TED / Ideas worth Sharing:

Content and speakers are selected using the same principle applied at TED. The focus is on “Ideas worth sharing”, rather than pitching products / companies / one’s own services.

I will be posting content as more is uploaded. There were a lot of great speakers and content all about value investing and improving ones’ process.

Below is the first video with transcript:

A.M. Prasad shares his thoughts on what is driving his bullishness on investments in India at the first annual VALUEx India conference in Mumbai, India.

Hi everybody, I am A. M. Prasad from Chennai. I run a construction company right now we are into low cost housing. I use to run an IT company where we do work for lot of banks. I think that’s about the introduction.

The two things which, two ideas on which I am quite bullish, I am optimist, I am extremely bullish on India but I think the drivers as I kind of see are two things; one is, I think, there is phenomenal aspirations from the youth of India. Things have changed dramatically are changing dramatically, today the youth just to give a perspective when a graduate enters into work just out of his college. His earnings today are more than what his parents have earned when they retired and that’s causing a lot of change and that’s causing lot of aspirations in the family as well as in the society.

It’s not untypical of people who have moved in from rural areas into the cities, graduated, got into work and when they go back and when they demonstrate the earning power which is much more than what their parents ever dreamt of in their entire lives. I think that’s a huge driver and motivation for a lot of other people to follow that footsteps and I personally, we see this everyday living in India people working for us who probably earned a fraction of salary and their children are earning much much more and they are very proud and its creating an eco-system.

I think the second think which I am very bullish about is there is a lot of value engineering happening cost engineering, value engineering happening in India, I think that’s a huge thing I am sure all of you heard about the Nano cars but I think it’s happening all over like professor Jhunjunwala what he said everything is got a huge market in India at a set price it’s not you can’t import an idea, you can’t import a product from elsewhere and then expected to be a market leader here to work in India it needs to be absolutely right, priced right and we see that all the time whether it’s automobile or whether it’s houses, real state, mobile telephony whatever. So I think the key driver is the companies who are heavily into invest, heavily value engineering for the next you know, possible time frame I think there is a huge opportunity waiting for them so that’s about it.


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