Why Andrew Holland thinks interest in defence, renewables won’t dim anytime soon

Avendus Capital's Andrew Holland believes that there is going to be more disruption in the BFSI industry, either through regulation or through new entrants.

Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies LLP sees promising growth in India’s defence, renewables, services, beverages and electronics sectors.

In an exclusive interview to Moneycontrol on August 21, Holland said he views defence and renewables sectors favourably, thanks to the increase in capex, which would have a direct impact on their earnings.  The rising interest in the sectors is across the globe, not just limited to India, and the trend is unlikely to change anytime soon.

“I think these sectors are going to perform well for a good couple of years in terms of order wins," the market expert said.

Holland is also bullish on the services sector. “In services, I am thinking about hotels and airlines where I continue to see domestic spending continuing.” He also considers the revival of foreign travel towards India to further uplift this sector.

Holland is bullish on premiumisation as a theme as well. Here he is particularly upbeat about alcoholic and non-alcoholic beverages and believes the space is just starting out, with a long runway of growth ahead. “The beverages companies are something that I would be looking at very closely,” Holland said.

Despite the sector comprising small companies at the moment, Holland likes the electronics space. The industry is going to be a huge success domestically as well as for exports. “ This is a very exciting area on the runway for growth. I think there are a few new companies to be listed over the coming quarters in the sector, which gives us a good choice” Holland said.