GIC Group's Asia operations director Rajesh Srivastava told The Financial Express that his company has identified sunrise industries like food processing, poultry, floriculture, meat processing, dairy, frozen vegetables and sugar for the purpose of financing.

He added that his company would also concentrate on restructuring, expansion and advising Indian companies in forming joint ventures. Srivastava declined to give further details on the operation of the proposed offshore fund on the ground that it was still at a "primitive stage." He, however, added that the potential in Indian agri business was tremendous.

He said that the GIC Group, which set up its base here in 1990, was currently involved in the restructuringand rehabilitation of a horticulture unit in Maharashtra, a tomato processing unit in Rajasthan and a poultry unit in Uttar Pradesh.

GIC's work with the World Bank in India precipitated the modernisation initiatives now underway in the distribution and processing sectors. Srivastava said that GIC's current work with Indian companies has already spawned new ventures and his company was also working with some companies to develop new products, bring appropriate technologies and develop marketing strategies for domestic and export purposes. "GIC's commitment in India is to build on its past successes," he added.

GIC Group president Richard Gilmore said that India has to liberalise at a faster rate with uniform application for the agricultural sector, increased project financing, which can only be achieved through greater transparency in the banking sector, and more opportunities for both onshore and offshore debt and equity financing. "Of equal importance is introducing hedging mechanisms into theagricultural economy so as to reduce risk and increase efficiency."

In a related development, Commonwealth Development Corporation (CDC), the British government's development finance institution, has decided to increase the investment to Rs 2,000 crore in future from the present level of Rs 1,200 crore in India. CDC would concentrate its future investment in equity, quasi-equity and, occasionally, debt in support of equity.

CDC Advisors John Majoribanks said that CDC would invest in manufacturing, services, agri business and some aspects of infrastructure and invites requests for investment between Rs 4 crore and Rs 250 crore in these sectors from sponsors and intermediaries. CDC has been active in India since 1987 and has developed an investment portfolio in some 45 companies.