TEX Fund (TF)
TEX Fund is a close ended fund with a life of 7 years established in June 2014. The Fund has been registered with Securities & Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012 as a Category-I SME Fund. The initial contributors of TEX Fund are Government of India, Ministry of Textiles (MoT) and SIDBI. The primary objective of the fund is to contribute to the development of the powerloom and related textile sectors.
The TEX Fund’s investment focus will be early and growth stage investments in Small Enterprises, as defined under the MSMED Act, 2006, and as amended from time to time. Each investment will be limited to 3 crore. The Fund shall look for investing in companies involved in new and emerging fields in the textile industry and allied products and services. The TEX Fund would inter alia invest in areas such as development of textile production machinery and automation, technical textiles for various applications, coated textiles, textiles for defence applications, sportswear, weaving and processing. Related products and services such as chemicals and materials also offer scope for venture investment. Innovative marketing is an area which could add value to the country’s textile products.
TEX Fund is looking for investment in projects offering potential for attractive growth and earnings. Key criteria for project selection are –
- Strong and committed core team: SVCL looks for management teams having demonstrated performance track record, commitment and energy.
- High scalability and non-cyclical business: SVCL aims to invest in promising businesses having potential for sustainable high growth rates. Sectors preferred should be relatively insulated from periodic downturn of the economy.
- Sustainable competitive advantage: SVCL prefers to invest in innovative business models with a sustainable competitive advantage.
- A clear exit plan: SVCL seeks to invest in ventures with clear strategy for exit within a reasonable time period in order to create and realize the value in the investment.