MUMBAI, April 23 Morgan Stanley (MS.N) will
start a private equity unit in India, where it already runs an
investment bank and an asset management firm, the U.S. firm
said on Wednesday.
The unit, to be launched on May 1, will be headed by Aluri
Srinivasa Rao who has joined from ICICI Venture, a unit of
India's No. 2 lender, ICICI Bank (ICBK.BO), Morgan Stanley said
in a statement.
"Private equity will form a critical component of our India
platform," said Narayan Ramachandran, managing director and
country head of Morgan Stanley in India.
Global financial firms and domestic banks are expanding
into private equity in India where a rapidly growing economy
has opened up big opportunities.
Government-run State Bank of India (SBI.BO), India's
biggest lender, said on Wednesday it was in talks with foreign
partners to launch private equity funds.
Morgan Stanley said it would invest in India through its
Asia-dedicated private equity fund. The $1.5 billion fund
closed in the third quarter of 2007.
(Reporting by Narayanan Somasundaram; Editing by Ranjit