Carlyle Managing Director and India Head Amit Jain recently advised businesses to focus on what they can control and “fundamentals” in the face of increasing global uncertainty that is likely to result in greater volatility this year.
Jain’s advice suggests that businesses should not try to predict or respond to every market fluctuation or external event that may impact their operations. Instead, they should concentrate on the fundamental aspects of their business, such as their core products or services, customer needs, and operational efficiency.
By focusing on what they can control and their core strengths, businesses can better weather any storm that may come their way. This approach allows them to maintain stability and continuity in their operations, even when external factors are unpredictable and volatile.
Jain’s statement also highlights the importance of a long-term perspective in business planning. Rather than making short-term decisions based on current market conditions, businesses should focus on building a strong foundation that can withstand the ups and downs of the market over time.
Overall, Jain’s advice serves as a reminder that businesses should not lose sight of the fundamentals that drive their success, even in the face of external uncertainty and volatility. By staying grounded and focusing on what they can control, businesses can weather any storm and emerge stronger in the long run.
Economic Uncertainty: World Economies Exit Protracted Bull Run, Carlyle’s Amit Jain
“The atmosphere is unstable. The world’s economies have exited a protracted bull run. In addition to being influenced by underlying economic factors, we have seen valuations rise in tech firms. After Covid, we observed increased liquidity and an increase in inflation due to a number of variables. Inflation causes interest rates to rise, which can take many different forms, according to Jain, who delivered a harsh interview at Mint’s premier yearly investment conference.
Jain predicted that this would likely persist. When there are so many factors at play, Jain advised staying focused and returning to the fundamentals. “This is the year to go back to the fundamentals,” he said.
He stated that India may also be affected if the western economy experiences a protracted and severe decline.
Jain believed that India’s foundations were solid, though. “If you take India as a film, it will work,” he said.
He was careful to be cautious, though.
Consumption accounts for 60% of the domestic economy, so there is some protection (against worldwide volatility), but no insulation, according to Jain.
In India, the Carlyle Group handles assets worth over $5 billion; globally, it oversees assets worth over $373 billion.
Carlyle recently purchased a majority stake in VLCC Healthcare as part of its venture in India.
The PE firm’s investment thesis for India is driven by two main topics. This involves funding businesses that build for the world as well as businesses that build for India (India for India). (India for Global).
Investments are permitted in the consumer, healthcare, financial services, packaging, pharmaceuticals, IT services, vehicle components, and real estate industries.
The digital economy is opening up many opportunities, according to Jain, for which consumer businesses are not yet ready. Therefore, rather than waiting for the release of new products, businesses need to innovate their capabilities and procedures. Regarding consumer technology, Jain argued that businesses with strong unit economics make appealing investments.
Investments are permitted in the consumer, healthcare, financial services, packaging, pharmaceuticals, IT services, vehicle components, and real estate industries.
The digital economy is opening up many opportunities, according to Jain, for which consumer businesses are not yet ready. Therefore, rather than waiting for the release of new products, businesses need to innovate their capabilities and procedures. Regarding consumer technology, Jain argued that businesses with strong unit economics make appealing investments.
“Consider yourself a proprietor if you want to go far. Owners also choose their investments. But they constantly ponder how to make the most of what they have when they first get up in the morning. or the best method to fix what they currently have. The way he thinks differs from that of a trader, he said.
