In what appears to be a coup for the fledgling Pakistani private equity industry, Indus Basin Holdings has managed to get Britain’s former foreign secretary David Miliband on board as a senior adviser.
“We are delighted to be able to bring on board the expertise of Miliband who knows the region and its challenges well,” said Indus Basin founder and CEO Aamer Sarfraz, according to a press release issued by Miliband’s office. “He shares our conviction that investment in Pakistan’s agricultural sector can have substantial long-term impact on the country’s poorest farming communities.”
“I am delighted to be advising Indus Basin Holding, a company that is investing in Pakistan’s future at a time of such fundamental importance,” said Miliband in a press statement. “I care deeply about Pakistan, the development of its economy and its future in the wider region. IBH is committed to developing an agricultural sector which has huge potential, but currently lacks investment. I look forward to working with IBH in building support and investment in Pakistan’s agricultural capacity and productivity.”
Officials at the company say they had been trying for the past year and a half to secure the contract with Miliband, who served as Britain’s foreign secretary between 2007 and 2010. He also served as Britain’s secretary of state for the environment, food and rural affairs previously.
Some of the largest private equity firms in the world are known for employing high profile non-serving statesmen on their advisory boards. This practice was made famous by the Washington-based Carlyle Group which employed both former US president George Bush Senior and former British prime minister John Major on its various advisory boards. More recently, former Pakistani prime minister Shaukat Aziz joined the advisory board of the US private equity firm Blackstone Group.
The purpose of employing such high profile people on a company’s advisory board is two-fold. Firstly, their experience as statesmen gives them extraordinary macro-level insight in terms of the opportunities that exist around the world. Secondly, their connections both in governments as well as amongst large corporations and wealthy individuals often make them a valuable resource in opening otherwise inaccessible doors and closing deals.
Indus Basin Holdings is only a relatively recent entrant into Pakistan’s nascent private equity and venture capital space but already began to attract a lot of attention for the kinds of big-name investors it was able to attract in its fund, which is focused on capitalising on opportunities presented by raising productivity levels in Pakistani agriculture.
The company’s investors include Tim Draper, the famous American venture capitalist known for being an early investor in Skype and Hotmail, and Baron Lorne Thyssen-Bornemisza, a Swiss aristocrat whose family owns the ThyssenKrupp, a German technology conglomerate with over 670 subsidiaries and 200,000 employees worldwide.
Indus Basin’s investments currently include Agroventures, a Faisalabad-based breakfast cereal manufacturer, and Rice Partners, a company that is focused on contract farming and marketing Pakistani rice directly to North American and European retailers.
Published in The Express Tribune, January 21st, 2012.
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@Asim: Thanks for your appreciation
Mr. Zisca M. Singha i am really disspointed after reading your comment... leaving religious battles and historical constraints, we all belong to one planet, and you yourself saying that we are on backfoot..so who needs more attention we have to save our homeland our planet regardless of other issues.. Discussion over here is not on politics, politicians, social, religious and historical matters. I being a Pakistani strongly recommend all foreign think tanks investors and experienced personals to stand with not only Sohni Dharti but all such NGO's and organizations who are working for agriculture, i am telling you if we flourish this field we would be even able to feed to not only 180 million people we can feed the whole ASIA.
I seriously go with Mr. Kamran Ashraf point of view. I have personally watched Sohni Dharti TV its vision/programs they are excellent and awesome, first i would like to mention here that its the first agricultural TV channel of Pakistan who is promoting the importance of agriculture, role of agriculture in building strong economy of our country, educating farmers and promoting each and everything related to agriculture. i appreciate the idea and vision behind it which is really empowering poor farmers and also started to refuel economy of this country. There is lot they can do under the umbrella of Sohni Dharti TV channel and if that is blended with some foreign guidance/experience and aids the results would be extremely matchless.
Well i must recommend Indus Basin Holding to collaborate with the group "Sohni Dharti" so they & you in collaboration can save the most precious side (agriculture) of this country.
Very good induction of David Miliband for the most important sector of the world, especially for Pakistan, which has the full of potential for the agriculture and almost covering 70% of Pakistan. Economic gurus are also worried about future food security problem for the whole world. But what would be the strategy to boost the economy through agriculture? Is this only for investor who will take the advantage as usual or will it being beneficial for the farmers?
This is the very serious project, and how will they take off? Will they approach from grass root level? Will they educate farmers either from agriculture universities/institutions etc.? Or through electronic media which has the access to each house hold of the country like agriculture TV channel that is more than the universities/institutes, because it can teach the farmers/stakeholder in very well manners. It all depends on the Indus Basin Holdings and their advisers. Let see what approach they will use.
thanks for projecting my views - you are great.
@Talha: Talha sahib, connections is something that need to be established in the world over. From everywhere place from Washington, New York, to London, to Moscow, connections are created by people in business's by networking events, lunches, charity events, dinners, art galleries. They are hosted, and aspiring business' aim to get tables, to get entry to these events, so they can meet them. A good PR company can introduce to many people of note. Once, you have these peopole on board, they can introduce you to many high net worth people from all over the world, and can open doors in o ther countries. Sometimes, their phone call makes a big difference.
I think many Pakistani big business' dont try enough to network internationally, which they should. Indian business's on the other hand do. They call all the top international people to events, they even host them. An indian business group will charter a Yacht for the Monaco Grand Prix, and call allt he top International businessmen, and even ppl connected to the government, entertain them, and hopefully get some doors open. This by NO MEANs, seals hte deals, but open doors.
In the US, you can hire lobbyists, who will lobby for you in Congress to pass certain laws and bills that you want.
Networking like this is done all over the world. Not now, but for centuries.
@Agriculture King: I agree sir, agriculture is the way forward. We should encourage foreign investors as well as local investors to invest in agriculture. For foreign investors, we should set up competetive tax advantages for investing in Pakistan. We should remove bureaucratic red tape as well.
Tol all the fellows who are making silly comments. The CEO of indust basin is from a decent business family; not the biggest business family. He is well edcuated, and when he was college, he created a billing software, and got a patent for it, and sold it at a hefty profit to a US software firm, and since then has been doing various other deals.
Once he made money, he settled in UK in a good area, and overthere if you socialize, do business in the right circles, David Milliband is not that hard to meet. All it takes is for some firms to set up lunches, dinners, events, charity events, where important people meet and network.
There is no NEED for army or anything else. And if someone is lucky enough to know such people through any channel, one should utilize for one's benefit. Their farmers are well paid, much more than the average farmer, and they have set up a good system.
Right now there is 0 investment in Pakistan, we should be happy that, something is coming. There are other options like Brazil, Russia, Vietnam, Indonessia, China, India Ghana, and those countries ppl are giving foreign investors red carpet welcome, so be a little greatful.
We have become a nation of people, who are cynical for no ryhme or reason. Those of us commenting have become well off enough that, we have a suzuki or corolloa, we live in a comfortable home, we have heating, and cool air in the summer (albeit the power outrages), we can send our childerne to school, and manage our health expenses. When we got to this level, we felt happy. Then we realized there were thousands of people just like us, and we are just average (we forgot the millions beneath us). How do we feel good about ourselves? By being negative, sarcastic, even vicious about high achievers. Like shakespeare described the average person in Othello. To feel good about his normal average position in society, he has to be critical of the senators.
Thank you Indus basins for all the good work you are doing in Pakistan. You have made Pakistan proud. Right now, pakistans credit rating is one above Junk. There are travel adviseries and restrictions against us. A person of NOTE like Millband would have to think 1000 times before joining a Pakistanis firm.
He has no shortage of firms, who want him to join. Firms from anywhere from Brazil, Chile, to India, and Indonessia. He did it because, he thinks it can add value.
Agri-investment????????(So we will have to beg Big Multinational companies for food). We have been doing Agri-farming for centuries and we don't need their help. Why don't Western countries buy our products like textile, surgical instruments, leather, grain, rice, +++++++++ and lift trade sanctions on Pakistani products??????? Why don't they send us business such as call-centers, IT, professional visas +++++++ like they give favours to India. No, this is just another attempt to colonise Pakistan, again. India just allowed(2012) its (Mumbai)stock-market to allow investment by foreign companies and I mean only in stock-market & no where else. Water of our River's controlled by India and Agri-farming controlled by Western owned multinationals. Gives you a hint.
@Talha...... plz get a life
@Rt. Rev. Wrong: like your name you are WRONG...in your mindset
Pakistani economy is not going to do any better if we continue depending on agriculture. Africa is a good example if we want to learn anything. Proper industrialization is the answer to all our ills. Obviously industrialization would mean having to set up a proper IT system.
Millibands are committed Labourite.What one of them is doing in Zardari Republic of Pakistan?
@Talha: then u should hang ur head in shame....since u think all FAUJIs are evil...
I have always seen Mr. Miliband as a more balanced statseman. Seeing his actions towards Pakistan when he was the foreign secretary, I do believe that he has some soft corner for Pakistan and I respect him for that.
I have been following IBH for some time now and they are doing exceptionally good...both for themselves and Pakistan. They are building a very interesting portfolio - a clear evidence of sound investment strategy; and getting Mr. Miliband on board - a clear evidence that their marketing is working effectively internationally. They seem to approach conventional businesses unconventionally - as per their website, an off-take agreement for the dairy is already in place. I wish them luck and hope to see more good news!
@Falcon @ ubaid:
Stop puffing up, I made that connection after looking their team which has a healthy mix of ex Fauji Foundation employees and renowned businessmen.
Getting statesman onboard isn't something that can be achieved without extensive connections, and this is Pakistan after all.
It seems something good.
@Talha... plz visit the company's website before making such absurd comments
"Indus Basin Holding Ltd is incorporated in Mauritius, and licensed by the Mauritius Financial Services Commission (FSC). The company is privately owned with offices in Pakistan."
Indus Basin has certainly done a lot of investments in productive areas of Pakistan, i would recommend Pakistani investors to capitalize most out of our agriculture sector
good news
@Talha: Yes in fact Bill Gates, Warren Buffett, and late Steve Jobs were also employed by Pak Army. Can we get our head out of conspiracy theories for a change???
The company's interests in Pakistan relate to food and agriculture. Food is produced cheaply in Pakistan to be sent abroad at a profit and as agriculture is tax exempt its a win-win situation for hem. If Pakistan gets some positive benefi from this, then it makes sense.
The company's main investers are big "venture capitalists" which should ring alarm-bells in every sane man's mind. Investers/companies like this caused the global financial crisis in US and now in Europe mainly because of their greed. We will be livinng in fool's paradise if we think they are coming to Pakistan to improve the lives of our poor farmers. Thats just not how investers think. Its all about the bottom-line. If anything, they are going to bring these farmers under their credit net and mint money out of them for years to come in the name of interest repayments.
Congratulations.
More Profit means More Power, More Power means more Influence over future destiny!
A good opening for Mr.Miliband and to Pakistani Company - opportunity for both - it is high time company open its doors for learned youth of this country qualfied yet roaming for job..............there appear no one to look at them....God be with these youth!
Big Catch
So Imran Khan's dream that foreigners will get in visa line for job in Pakistan is true and We even started hiring Ex, foreign ministers. GEO PAKISTAN
Indus Basin Holdings seems like a private equity front of Pak Army with a mix of business dynasties.
That probably is the reason for its deep connections.
Welcome aboard. Pakistan indeed has a alot of ''spare'' wealth for new hedge funds to exploit.