As is commonly seen with financial investors in India, SMIT has acquired minority stakes in the companies it has invested in. Consequently, in these companies, it has not taken over day-to-day management control. Nevertheless, SMIT maintains a high degree of involvement with its investee companies in areas of strategic importance and continually monitors the performance of these companies using well defined reporting channels that are put in place as soon as possible after an investment is made. In each of its investee companies, SMIT enjoys strong governance rights such as representation on the board of directors, key board committees and an array of affirmative rights.
With IFC as a strategic partner and a cornerstone investor, SMIT also prides itself on its intense focus on environmental and social matters that are evaluated and influenced in each stage of the investment process and are an integral part of the asset management program.
By drawing on the expertise, experience and network of its sponsor institutions, SMIT is in a unique position to be able to add value to its portfolio companies, even where it does not directly run its daily operations.