Fund Strategy
Manufacturing: Sector Focus
There is a huge opportunity in India's Manufacturing Sector
- Capital Goods / Industrials
- Pharma / Chemicals
- Autos / EVs / LITHIUM ION / Solar / Power
- Textile / Steel / Cement / Green Energy / Renewables
- Avoid: Infra / Real Estate / Trading
10 Reasons Why We Like Manufacturing?
- Opportunity For Import Substitution
- Deleveraging: Highest Across The World
- Corporate Balance Sheets: Lower Leverage
- Bank Credit Is Back
- Demand: Shifts In India's Income Pyramid
- Demographics: India Is Competitive
- Order Books: All Time High
- Capacity Utilisation: Above Average
- Corporate Profit: About To Take Off
- Government Reforms
Opportunity For Import Substitution
Import reduction due to Policy reforms, local investments & disruption in global supply chains. Huge potential for Manufacturing Sector
Deleveraging: Highest Across The World
Source: BIS, Jefferies
Indian non-financial sector debt-to-GDP has declined by 24%
Corporate Balance Sheets: Lower Leverage
Deleveraged India Inc has enough headroom to increase leverage for funding capex. This sets the stage for a new leg of investment cycle.
Bank Credit Is Back
Impaired loans have now decelerated to a 10-year low.
Banks are ready to fund the capex cycle.
YTD credit id growing at one of the highest rates in the past 10 years due to increase in domestic demand.
Demand: Shifts In India's Income Pyramid
Demographics: India Is Competitive
India has the best demographics amongst the leading Emerging Market countries. Labour costs are a key factor to propel India to become the world’s manufacturing hub
Order Books: All Time High
Post-COVID the capital goods industry saw a revival in order bookings
Increasing intensity of Gross Block addition due to demand uptick
Capacity Utilisation: Above Average
Capacity utilisation saw an uptick post-COVID and is currently above long-term average.
Corporate Profit: About To Take Off
Profits to compound at more than 25% over the next four years to reach the previous peak of 7% of GDP
Government Reforms
Do You Think Last 8 Years Reforms In India Can Be Wiped Of By A Single Event?
Increasing intensity of Gross Block addition due to demand uptick
Eco System
Fund Features
| Fund Name | The Boring AMC India Manufacturing Fund |
| Fund Type | Category III Alternative Investment Fund |
| Target Corpus | INR 500Cr |
| Commitment Amount | Minimum INR 1Cr |
| Investment Manager / Sponsor | OMKARA-ASSAS LLP |
| Tenure of the Fund | The fund is open ended with no definite tenure |
| Benchmark | NIFTY MIDCAP |
| Trustee | MITCON Credentia Trusteeship Services Ltd |
| Custodian | Nuvama Custodial Services Limited |
| Fund Accountant | Nuvama Clearing Services Limited |
| Legal & Tax advisor | Mukesh M Gangar & Co. |
| RTA | Kfintech Technologies Ltd |
| Sponsor commitment | 5% of the corpus or INR 10 crore, which ever is lower |
| Taxation | No specific pass-through status accorded to (no a) Category III AIFs. Trust taxation principles to apply to the AIF and practically taxes to be discharged at the AIF level. Investors are strongly urged to consult their tax advisors with (space) specific reference to their own situations. For more detail(s), please refer to the (P)rivate (P)lacement (M)emorandum. (PPM to be capitalised) |
Fee Structure
| Fee Type | Class | Capital Commitment | Fixed Mgmt Fee | Performance Fee | Soft Lock in | Exit Load |
|---|---|---|---|---|---|---|
| Fixed | ||||||
| A1 | INR 1cr-3cr | 2.50% | N/A | 1 Year -2% | 2% | |
| A2 | INR 3cr-5cr | 2.25% | N/A | 1 Year -2% | 2% | |
| A3 | INR 5cr-10cr | 2.00% | N/A | 1 Year -2% | 2% | |
| A4 | Above 10cr | 1.50% | N/A | 1 Year -2% | 2% | |
| Variable (with performance fees) | B1 | INR 1cr-3cr | 1.50% | 15% sharing over 9% hurdle rate | 1 Year -2% | 2% |
| B2 | INR 3cr-5cr | 1.25% | 15% sharing over 9% hurdle rate | 1 Year -2% | 2% | |
| B3 | INR 5cr-10cr | 1.00% | 15% sharing over 9% hurdle rate | 1 Year -2% | 2% | |
| B4 | Above 10cr | 0.75% | 15% sharing over 9% hurdle rate | 1 Year -2% | 2% | |
