THE STATE INVESTMENT CORPORATION LIMITED

Portfolio and Investment Management

SIC - subsidiary section 2

The Corporation has invested in businesses and firms, operating across a spectrum of strategic and commercial sectors. These industries include logistics, production, distribution, financial services, information and communications technology, real estate, tourism and leisure. Currently valued at approximately Rs 7bn, the investment portfolio of SIC predominantly features equity investments, alongside a lesser proportion of fixed-income investments.

The Portfolio and Investment Management Team is entrusted with the task to perform market research, supervise current market trends, identify and evaluate new avenues of investments for the Corporation. Collaboration with policymakers and co-operation with other key institutions form an integral part of the strategical direction of the company. The strategic intent is to identify projects with good development potential and ensure their successful implementation. New development possibilities are continuously explored in context to expansion and extension of national goals, for value addition, industry-wise progress, leveraging on advantages of diversification, and enabling commercial feasibility.  The Corporation is agile enough to secure funding for financing of projects through the use of various financial instruments.

SIC has put in place a well-structured procedure, engraving a pathway to simplify the decision-making process around investments. This procedure considers critical investment standards, requirements and incorporates balanced risk-taking.

SIC has a consistent and rigorous approach for the selection of investment in its portfolio. The strategy for selection is to conduct an industry-wide macro-analysis of each sector. This enables diversification and mitigation of risks. At a secondary stage, a comprehensive due diligence process and appraisal is carried out on each project by a multi-disciplinary team. Where required, external technical expertise is sought to obtain independent technical advice. Projects are examined by Management and IFAs, evaluated by the Investment Committee and eventually approved by Board.