Tag Archives: Lidia Szypulska

RUSNANO commended for its strategies

A June 29, 2016 Frost & Sullivan press release on PR Newswire provides an overview of RUSNANO’s (Russian Nanotechnologies Corporation) current status and a few brief historical notes,

Based on its recent analysis of the nanotechnology investment market, Frost & Sullivan recognizes RUSNANO with the 2015 Frost & Sullivan Award for Enabling Technology Leadership in Russia. RUSNANO has played a significant role in transforming scientific developments in nanotechnology to commercial businesses that attract private investments. By rolling out innovative nanotechnology-based products, it facilitates the diversification and modernization of the Russian economy.

“When investing in companies during their growth stage, RUSNANO may acquire a significant stake in the charter capital,” said Frost & Sullivan Best Practices Analyst Lidia Szypulska.  This allows its investment team, along with the management of the portfolio company, to define the strategic direction of the company’s development and take the steps required to improve its operational performance. RUSNANO executes its long-term business plan ahead of schedule. For the second year in a row, it has a profit (according to IFRS) despite the fact that it was not forecast to turn a profit before 2018, demonstrating high performance.

The combined turnover of RUSNANO’s portfolio companies was RUB 341 billion in 2015 while the overall Russian nanoindustry turnover was more than 1 trillion RUB, more than one-third of its total production. To extend its dominance, RUSNANO fosters relations with international investment funds and manufacturing companies in high-development locations such as the United States, Europe, Israel, Japan, India, and China.

“RUSNANO’s future strategy involves setting up 100 plants and R&D centres by 2020. It expects revenues from its portfolio companies to reach RUB 600 billion by the same time,” noted Szypulska. “Already, more than 20 of RUSNANO’s portfolio companies are applying nanotechnologies transferred to Russia from the US, France, Germany, the Netherlands, and Israel. RUSNANO also invests in several foreign companies that base their research or manufacturing in Russia.”

As for the history,

RUSNANO is one of the largest technology investors in Russia, focusing mainly on raising private capital to finance promising hi-tech enterprises that need capital to boost production or sales volume. In 2013 [emphasis mine], RUSNANO optimized its business model by separating the functions of asset management and asset ownership by incorporating a management company, RUSNANO Management Company LLC. The company aligns its priorities with the Russian government for developing the nanotechnology industry. With a significant government investment of RUB 101 billion, RUSNANO hopes to match global nanotechnology developments and lead the international hi-tech investment sector by 2020.

The most promising end-user sectors for nanotechnology are power production, nanomaterials, nanoelectronics and optoelectronics, telecommunications, healthcare, biotechnology, construction, mechanical and instrumental engineering, and chemically and petrolchemical industries. RUSNANO has so far invested in 105 projects and launched 68 plants and research and development (R&D) centres in 28 regions of Russia.

Yes, 2013 was an interesting year for RUSNANO as I noted in my May 17, 2013 post titled: Russia’s nanotechnology efforts falter? Apparently. Putin was not thrilled with RUSNANO’s results up to that time and there were rumblings. After all that, it must be nice to have the efforts be recognized. One minor niggle, I can’t tell whether or not RUSNANO is a client of Frost & Sullivan’s.

For anyone curious about Frost & Sullivan, from the About page (A Message from Our Chairman),

We’ve spent more than 50 years guiding our clients toward transformational growth strategies by focusing on innovation opportunities driven by disruptive technologies, mega trends, emerging markets and new business models. Today, more than ever before, companies must innovate, not only to survive, but thrive in the future. The risks of resisting change – the “innovator’s dilemma” – massively outweigh outweigh [sic] pursuing the safe and predictable. The consequences are too great to ignore.

Ooops (“outweigh outweigh” in the Chairman’s message)! Everyone makes mistakes.