RUSNANO implements investment projects by using its resources and establishing nanotechnology investment funds
LONDON, June 29, 2016 /PRNewswire/ -- 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.
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, 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.
"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 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.
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."
Each year, Frost & Sullivan presents this award to the company that has demonstrated uniqueness in developing and leveraging new technologies, which significantly impacts both the functionality and the customer value of the new products and applications. The award lauds the high R&D spend towards innovation, its relevance to the industry, and the positive impact on brand perception.
Frost & Sullivan's Best Practices Awards recognize companies in a variety of regional and global markets for outstanding achievement in areas such as leadership, technological innovation, customer service, and product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research.
RUSNANO was founded as a joint stock company in March 2011, through reorganization of state corporation Russian Corporation of Nanotechnologies. RUSNANO is instrumental in realizing government policies for nanoindustry growth, investing in financially effective high-technology projects that guarantee the development of new manufacturing within the Russian Federation. The company invests in nanotechnology companies directly and through investment funds. Its primary investment focus is in nanoelectronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and tools/instrument production, construction, industrial and other nanomaterials, chemical and petrochemical industries. The Government of the Russian Federation owns 100 percent of the shares in RUSNANO. By the moment, thanks to RUSNANO's investments, 68 plants and R&D centers are launched in 28 regions of Russia.
Management of the investment assets of RUSNANO are carried out by a limited liability company established in December 2013, RUSNANO Asset Management. Anatoly Chubais is Chairman of its Executive Board.
Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO's Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.
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