“India is an exciting market and we are bullish on it,” says Manas Tandon, partner/global head, private equity goods & products, Partners Group, following the listing of Vishal Mega Mart, where Partners group raked in over $3 billion for its stake in the company. “We have made investments in India over the years and believe in the India growth story”.
Vageesh Gupta, MD & head, Partners Group India, acknowledges the seamless listing process during Vishal Mega Mart’s debut on the National Stock Exchange (NSE). “This transition underscores the maturity and efficiency of India’s financial markets,” says Gupta.
Partners Group, a global private markets investment firm with $150 billion in assets under management (AUM), has built a track record through strategic investments in India and abroad. Headquartered in Switzerland, the firm operates from 20 offices worldwide and specialises in managing portfolios across private equity, real estate, infrastructure, royalties and private credit.
Vishal Mega Mart made its debut on the market on 18 December 2024, opening at Rs110 – a 41 per cent premium over its IPO price. The company’s revenue has grown at a CAGR of 26.3 per cent during 2021-22 to 2023-24. With 645 stores, it offers groceries, apparel and household goods to middle-class consumers.
“We have followed Vishal Mega Mart’s progress since 2011 and continue to have strong conviction in the company’s business model and consumer-centric approach, which generates industry-leading returns on capital”, Tandon notes.
Partners Group, in collaboration with Kedaara Capital, had acquired Vishal Mega Mart from TPG Capital in 2018. Through targeted investments in expansion and modernisation, Partners Group and Kedaara Capital helped Vishal Mega Mart become a household name, establishing its presence across India and serving the value-conscious segment of the population. Since 2018, Vishal Mega Mart has nearly tripled its footprint to over 650 stores, generating revenues of about Rs8,900 crore.
Creating value
“Consumers are at the heart of every decision we make at Vishal,” affirmed Gunender Kapur, MD & CEO, Vishal Mega Mart. “Our mission is to make aspirations affordable for middle- and lower-middle-income India.” He also acknowledged the vital role played by Partners Group in supporting the company’s vision, adding, “We look forward to its continued support, as we create value for all our stakeholders”.
“Vishal Mega Mart has a proven track record of successful store growth, with an impressive average payback period of just 19 months for each new store,” says Gupta. “We believe that its management and its product and brand portfolio are well-positioned to tap into the potential for further expansion of the company’s store network.”
Partners Group has made investments across several companies, including Aavas Financiers, one of India’s leading affordable housing finance companies. Other strategic investments include stakes in Ecom Express, CSS, etc, in the consumer and technology sectors.
With a focus on high-growth sectors such as consumer, healthcare, financial services and technology, Partners group continues to leverage its expertise to drive transformation and deliver sustainable returns. Its ability to identify and nurture businesses with strong potential positions it as a key player in shaping the future of private markets investment.
“I have found that Partners Group has an understanding of India’s ecosystem,” says Gaurav Deepak, co-founder & CEO, Avendus. “Coupled with its data-centric approach, this has enabled it to identify key trends and assets across sectors, which have large value outcomes. The group adopts an entrepreneurial approach, enabling it to transform portfolio companies into market leaders. This has helped it to generate strong returns”.
The fund is looking to expand its India portfolio after it has grown fourfold to over $8 billion since Partners Group began investing in the country nearly a decade ago. The firm plans to exit certain investments and reinvest the proceeds into sectors like healthcare, technology, and education. Additionally, it is awaiting regulatory approval to sell its entire 10.8 per cent stake in mortgage lender Aavas Financiers to CVC Capital Partners, a deal announced in August. The group is also preparing for a potential IPO of Ecom Express, a leading logistics solutions company to the India e-commerce industry, in which it is the largest shareholder.
What’s next for Partners Group? Tandon smiles and says: “Picture abhi baaki hai (The story isn’t over yet)”