Investor's tip to Indian manufacturers: Adopt tech and become 'Silicon Valley' for global funds
Indian investor Ankit Kedia urges the manufacturing sector to adopt affordable AI and tech to build a 'home-grown Silicon Valley,' leveraging government incentives and tier 2 and tier 3 cities. At the Super AI event, he highlighted rising investor interest, global potential, and plans to raise Rs 400 crore for Capital-A Fund-2.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Given the government's generous incentives, the Indian manufacturing sector should adopt technology to become a " Silicon Valley " that attracts global sovereign funds, said Bengaluru-based industrialist-turned-investor Ankit Kedia."Eventually, we should build Indian manufacturing startups that expand abroad as part of our future plans, as we want to make products for the world with a home-grown Silicon Valley-type ecosystem," Kedia said in an interview to PTI at the Super AI conference and exhibition held June 18-19 here.However, technology must be made affordable for these cash-strapped manufacturers operating in lower-cost environments in tier 2 and tier 3 cities, he said.Bengaluru, already recognised as a technology hub and often called India's Silicon Valley, should now focus on manufacturing, especially by leveraging advanced technologies such as artificial intelligence, he suggested.Kedia, who is currently working on a Rs 400-crore Fund-2 under his five-year-old Capital-A, shared his vision for the Indian manufacturing sector over the next 15 years, aiming for a strong foundation across the country, starting with low-cost factories in tier 2 and tier 3 cities.With two decades of experience in various industries and five years of running Capital-A Fund-1, Kedia is focused on technologies for the manufacturing sector, which he wants to combine with his long-term investment horizon of 15 to 20 years.Kedia has explored opportunities for the use of AI in manufacturing at the Super AI show, stating that he is returning home to raise Rs 400 crore for Fund-2, which will be strategically invested in factories in tier 2 and tier 3 cities such as Amritsar, Pune, Ahmedabad."We want hardware producers in these cities to form the foundation of our future manufacturing ecosystem and to share prosperity across the country," he said."India's large consumer market, along with the government's Production Linked Incentive (PLI) schemes, provides further confidence to investors to support small and medium-sized software or hardware manufacturers, who will have a low-cost advantage when competing globally," he emphasized.Kedia also sees international sovereign funds moving to India for better returns on investment, especially as they face pressure from global uncertainties.Capital-A Fund-1 has reported an Internal Rate of Return (IRR) of 28 per cent and is being tracked at 1.8X, Kedia said."Such fund returns are becoming more and more attractive to sovereign funds in Europe and the United States," said the fund manager, who invested Rs 120 crore under Fund-1 across 25 investments five years ago."The strong domestic market, the stability of the Indian ecosystem, and the potential of leveraging an increasing number of free trade agreements (FTAs) between India and international markets are all plus points for our manufacturing sector," he underscored.Harshul Arora, founder and CEO of Noida-based Macgence, noted that more and more enterprises are shifting to AI-automation to be more cost-effective and capture a bigger share of the market through efficient production."Small manufacturers in tier 2 and tier 3 city regions are able to use AI to communicate with their clients - a real time translation is offered to these small manufacturers to communicate in any language with clients."This will increase their communication skills and reach to global businesses as well as a large audience," said the 24-year-old who started with a language solutions company and now runs training data solutions for AI companies globally.Over 7,000 participants from more than 100 countries attended the Singapore Super AI.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
37 minutes ago
- Time of India
Bullets, gunpowder gutted as fire hits Verna ammo company
Vasco: Bullets and gunpowder were gutted in a major fire that broke out at Hughes Precision Manufacturing Pvt Ltd, at IDC Verna early on Saturday. Verna fire station in charge Dilesh Gaonkar told TOI that the fire broke out around 4am, and the firefighters received a call from the headquarters about the accident around 4.10am. 'Live and spent bullets and gunpowder stored in one room of the company were destroyed by the flames,' Gaonkar said. 'Boxes containing ammunition turned to ashes, but luckily no casualties were reported.' He said that fire tenders were pressed into service from Verna, Vasco, Margao, and Panjim. 'According to the company's officials, CCTV cameras captured smoke coming out of the storage room,' Gaonkar said. 'The preliminary probe has suggested that a short circuit could be the reason for the massive fire.' Gaonkar said that the Verna fire station has asked the company to provide details on the materials gutted and the loss incurred in the fire. Sources said the loss could run into crores. The company supplies ammunition to the Indian defence forces. The fire tenders were deployed at the company site till late on Saturday. 'Although we succeeded in extinguishing the flames, we are monitoring the site,' Gaonkar said.
Time of India
an hour ago
- Time of India
I-T raid unearths gold smuggling and hawala transactions
Kozhikode: The Income Tax (I-T) department conducted searches at multiple premises of Seashell Savoury Group and Pulikkal Group in Kozhikode on Saturday allegedly revealing hawala transactions, reverse hawala, gold smuggling, unreported foreign investments, underreported land purchases in cash and other undisclosed financial activities. The I-T department said that the findings at multiple locations point to large-scale tax evasion and concealment of income and assets both in India and abroad. Search was conducted at the residential and business premises of Abdu Razakh Pulikkal, Rasheed Ali Pulikkal, Ahammed Kabeer Pulikkal. Details of foreign dividends received over the years were unearthed in the raid. "Clear evidence of the use of hawala channels to send money amassed abroad to India was uncovered. Undisclosed investments in several buildings, land, and illegal quarries/crushers were found," it said. Sales suppression over the years was quantified from the offices of Delicia Group. "Details of income from GCC region transferred to Indonesia for purchases were also uncovered," it said. Searches were also conducted at the residential premises of Hameed Narikolil, Kunhimoosa and their business premises. It says that the group has revenue from hotel businesses both in India and abroad. It operates more than 80 hotels in the GCC region, owned and managed by Indian residents but not disclosed for taxation in India.
Time of India
an hour ago
- Time of India
Opium farmers demand policy overhaul, fair pricing
Jaipur: The opium farmers' association of Rajasthan and Madhya Pradesh has strongly urged the Centre to rethink its opium cultivation policy for 2025-26. They have demanded fair treatment of farmers, higher prices, and an end to what they call 'exploitative practices'. In a statement released Friday, the association clarified that "opium is a medicinal crop, not a drug" and blamed corrupt officials rather than the crop itself for mismanagement. "Opium is not inferior — it is the system and some officials that failed the farmers," the association asserted. Key demands include issuing traditional cultivation licences to all farmers and families who grew opium since Independence and revising the price of raw opium to at least Rs 50,000 per kg to align with global standards. "Farmers have faced years of exploitation under the guise of regulation while their production costs skyrocketed," the association said. The group also criticised the govt-imposed Concentrated Poppy Straw (CPS) system, describing it as an attempt to "enslave farmers to private companies." They called for its discontinuation, arguing that if CPS was genuinely effective, parallel traditional farming wouldn't still exist. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo "If CPS is truly superior, make its performance data public. Stop forcing it on traditional farmers," the association has demanded. The association suggests that the govt should directly buy and fairly compensate for all by-products like doda chura, comparing it to how no one expects farmers to manage cow dung after consuming the milk. The Central Bureau of Narcotics issues licences to farmers for opium cultivation and is the sole authority responsible for its procurement. They have also urged the govt to prevent opium cultivation from falling into the hands of private companies and called for a CBI probe into the operations of the narcotics department between 2015 and 2025. The farmers stressed that adopting their suggestions would "ensure economic freedom for the country, prosperity for farmers, and affordable medicines for patients, in line with the PM's 'Make in India, Made by Farmers' vision."
