The coming decade will see many great companies emerge out of India in Manufacturing.  This will not be because of cost arbitrage alone, but from genuine capabilities companies have developed which will be of relevance to global buyers seeking credible “win-win” partnerships. 

Good companies will use the cash flow to re-invest and create virtuous cycles where they could grow profits at 20-25% for a decade. 

If we can identify a bunch of cos that can do this, even if one assumes some errors, we will get a very good result.  However, one must be willing to stretch time.  With small companies, results are seldom linear. 

Enclosed is a brief note to explain our thought process underlying this investment