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Raise Money And Keep That Money In Your Bank
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Entrepreneur India caught up with Mohandas Pai, Chairman of Aarin Capital to know more about Make In India, StartUp India initiative and what future holds for investors. Here are some excerpts. 

There’s a lot of talk about allowing valuation. As an investor what would you suggest entrepreneurs who are going to raise funds?

See valuation is a function between the buyer and the seller. The people who want to invest, suggest a price, and depending upon the supply and demand the price will be set. There will also be negotiations. My advice to everyone would be, raise money and keep the money in your bank, and don’t be deterred by cash because if you’re gaining money and losing cash you’re going to run dry.

How do you see Make in India and Startup India doing?

Startup India will do well no doubt about that. But Make in India will be much more difficult, because of the added restrictions and regulations, the supply chain costs are very high. Make in India has started a program to reduce cost of business. Supply chain cost in India is 14 per cent of their GDP, China is 6 per cent and America is 5 per cent. We need more initiatives in that area only then will manufacturing become feasibly cheaper.

Have you seen any impact on the manufacturing sector post Startup India initiate?

Yes, I think the manufacturing sector is experiencing positive growth, they are looking for investment, and even though they are struggling right now they will do well. I think it’s positive because of the efforts by the current government.

Do you see any particular domain benefitting from this Make in India campaign?

I think the growth will be across the board to all. 

Edition: December 2016

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