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Atria ready to scale up, says IVFA partner Pramod Kabra

MUMBAI: Private equity firm India Value Fund Advisors (IVFA) is committed to its investments in Atria Convergence Technologies (ACT) and is looking at inorganic opportunities to grow the Bengaluru-based broadband and cable TV company.

“We continue to hold controlling stake in ACT through a new fund and are looking at both organic and acquisition opportunities to grow the company,” IVFA partner Pramod Kabra told TelevisionPost.com.

Broadband will be the bigger area of focus, but ACT will look to enter new territories in the cable TV business only if there are acquisition opportunities. “We are interested in only making friendly acquisitions. We want to work with the local cable TV operators,” said Kabra.

In broadband, ACT will enter new geographies, including the bigger cities in the west and north of India. Currently, the company operates its broadband business in the southern states of Karnataka, Andhra Pradesh, Telengana and Tamil Nadu.

“Our initial focus will be to deepen our presence. But we also plan to enter the big markets of the west and north of India,” said Kabra.

ACT is eyeing a total broadband subscriber base of one million in FY16. As on 30 April 2015, it had 0.68 million broadband subscribers.

ACT has 850,000 cable TV subscribers and is targeting one million by the end of FY16. The cable TV operations are concentrated in the states of Karnataka and Andhra Pradesh.

“We have got TA Associates as a partner. They bring with them their global expertise and relationship. As majority partner, we will continue to control the board even after the transaction,” said Kabra.

While the private equity giant will hold 40 per cent of ACT, IVFA has 55 per cent stake. The remaining 5 per cent is with the founder-promoters CS Sunder Raju and K Nagaraju.

After a seven-year investment, India Value Fund III exited from ACT. IVFA has reinvested $300 million in ACT through its new fund Indium V (Mauritius). TA Associates has invested $200 million to acquire 40 per cent stake in ACT.