India Inc. is surely going places! Taking over Corus is another feather in the cap of indigenous home-grown firms that have begun to reverse the order of takeovers. Only recently Videocon-Daewoo deal worth $684.78 mn showed that Corus is just not a stray deal and India Inc. has actually come of age to compete with the world’s best, even on their home turf.
Clearly, the axis of corporate power is seeing a major shift and the sure winners are Asian countries – India and China. The buyout of Corus (formerly British Steel) has in particular given a jolt to the Europe as it was this company which had provided the infrastructural backbone for the expansion of the English empire in the 18th and the 19th century. The tide has been reversed now. Summing this up, a prominent British newspaper headlined its story: “The Empire Strikes Back”.
The most significant change is that Indian businessmen who were till recently interested in smaller markets like Africa and Asia are flexing their muscles among the corporate world of Europe and Americas. It is estimated that out of the total investments done offshore by Indian companies, Oil and Gas and Pharma and Healthcare sectors together account for nearly 35%, followed IT companies that account for about 13% of all investments. The total amount of investments done offshore by Indian companies can be gauged from the fact that even after the takeover of Corus, being termed as the biggest global takeover by an Indian company, investments by Indians in the manufacturing sector a miniscule 10% of the overall investment.
Other than Tatas and Videocons, several more of Indian firms have been in news recently for similar takeover. These include Suzlon Energy, M&M, Ranbaxy Labs and the AV Birla Group. Even relatively lesser known Indian companies like Subex System which purchased UK-based Azure Solutions for $140 million.
Other companies which have been in the forefront of international ventures recently include AV Birla Group, whose MD, Kumar Mangalam Birla, is now on prowl looking for to buy global firms. The recent buyout of the Canadian Minacs was only one such step.
Ranbaxy too is eyeing new markets vigorously. Its CEO, Malvinder Singh has recently been on global acquisition spree. Presently, the company has eight overseas plants from where nearly three-fourth of its revenue comes.
A major acquisition was carried out by Suzlon Energy recently, which acquired Belgian Hansen Transmissions which is the world’s second largest maker of gearboxes. Tulsi Tanti, CMD, Suzlon Energy bought Hansen because gearboxes are a major component for Suzlon’s turbines. With another company in his arsenal, Suzlon is now gearing up for more global ventures.
Other significant acquisitions in the recent past include Tata Tea buying the food and beverage firm Energy Brands, USA ($677 mn), Wipro buying three US-based companies, mPower, cMango and Quantech, for a combined $58 mn, ONGC Videsh taking over Ominex of Columbia ($425 mn), Aban Lloyd buying the Norwegian oil major Sinvest ($425 mn), Dr. Reddy’s taking over Betapharm, Germany ($571.77 mn) and also Jeco Holding, Germany (140 mn euros), Ranbaxy taking over Terapia, Romania ($324 mn) and Videocon buying CPT major Thomson, France (240 mn euros).
This is not to speak of Reliance, which now divided two-fold, has become manifold stronger with both Mukesh and Anil Ambani looking for fresh M&As on global level. Though the two brothers have recently been concentrating on strengthening their domestic fiefdoms, the two cannot be excluded when one talks of M&As globally.
This is also not to speak of the Indian businessmen settled abroad like Mittals who are shoulder-to-shoulder with Tatas, when it comes to steel.
Clearly, the axis of corporate power is seeing a major shift and the sure winners are Asian countries – India and China. The buyout of Corus (formerly British Steel) has in particular given a jolt to the Europe as it was this company which had provided the infrastructural backbone for the expansion of the English empire in the 18th and the 19th century. The tide has been reversed now. Summing this up, a prominent British newspaper headlined its story: “The Empire Strikes Back”.
The most significant change is that Indian businessmen who were till recently interested in smaller markets like Africa and Asia are flexing their muscles among the corporate world of Europe and Americas. It is estimated that out of the total investments done offshore by Indian companies, Oil and Gas and Pharma and Healthcare sectors together account for nearly 35%, followed IT companies that account for about 13% of all investments. The total amount of investments done offshore by Indian companies can be gauged from the fact that even after the takeover of Corus, being termed as the biggest global takeover by an Indian company, investments by Indians in the manufacturing sector a miniscule 10% of the overall investment.
Other than Tatas and Videocons, several more of Indian firms have been in news recently for similar takeover. These include Suzlon Energy, M&M, Ranbaxy Labs and the AV Birla Group. Even relatively lesser known Indian companies like Subex System which purchased UK-based Azure Solutions for $140 million.
Other companies which have been in the forefront of international ventures recently include AV Birla Group, whose MD, Kumar Mangalam Birla, is now on prowl looking for to buy global firms. The recent buyout of the Canadian Minacs was only one such step.
Ranbaxy too is eyeing new markets vigorously. Its CEO, Malvinder Singh has recently been on global acquisition spree. Presently, the company has eight overseas plants from where nearly three-fourth of its revenue comes.
A major acquisition was carried out by Suzlon Energy recently, which acquired Belgian Hansen Transmissions which is the world’s second largest maker of gearboxes. Tulsi Tanti, CMD, Suzlon Energy bought Hansen because gearboxes are a major component for Suzlon’s turbines. With another company in his arsenal, Suzlon is now gearing up for more global ventures.
Other significant acquisitions in the recent past include Tata Tea buying the food and beverage firm Energy Brands, USA ($677 mn), Wipro buying three US-based companies, mPower, cMango and Quantech, for a combined $58 mn, ONGC Videsh taking over Ominex of Columbia ($425 mn), Aban Lloyd buying the Norwegian oil major Sinvest ($425 mn), Dr. Reddy’s taking over Betapharm, Germany ($571.77 mn) and also Jeco Holding, Germany (140 mn euros), Ranbaxy taking over Terapia, Romania ($324 mn) and Videocon buying CPT major Thomson, France (240 mn euros).
This is not to speak of Reliance, which now divided two-fold, has become manifold stronger with both Mukesh and Anil Ambani looking for fresh M&As on global level. Though the two brothers have recently been concentrating on strengthening their domestic fiefdoms, the two cannot be excluded when one talks of M&As globally.
This is also not to speak of the Indian businessmen settled abroad like Mittals who are shoulder-to-shoulder with Tatas, when it comes to steel.
No comments:
Post a Comment