PE favorites over the years have moved from manufacturing to IT/ITES to emerging industries like life sciences, healthcare, media & entertainment. Retail, with its phenomenal growth potential offers new growth for PE firms with significant deals in recent past. PE promises to fuel the M&A wave in retail and act as an engine for Indian retail to reach the promised heights and set new precedents.

Private Equity space in India has seen unprecedented growth with US$7.5 billion investments in 2006, an increase of 225% over last year, and is expected to touch the $10 billion mark in 2007. Buoyed by profitable exits of older PE firms such as Warburg Pincus, Citigroup, Chrys Capital, ICICI Ventures and General Atlantic, India has seen the entry of a number of new PE firms in past two years.