GLOBAL CHAMPS

In the past five years, 307 overseas companies have been acquired by Indian corporates, the worth of the mergers totalling $ 20 billion (over Rs 90,000 crore). The rate of Indian acquisitions has been growing exponentially over the past five years, the last two witnessing more than half of the 307 takeovers. The acquisitions reflect the growing confidence of Indian business because they believe they can do a better job than the foreign players. It also indicates the cash surpluses accumulated by companies in an economy consistently growing at 8 per cent. Indian businesses have emerged from fairly retrogressive economic conditions to embrace the global markets so much so that our business section calls these Indians the Raiders of the Lost Ark.

The open economy of the past 15 years has forced Indian companies to become globally competitive. They have realised there is no reason why they should confine themselves to the domestic market. For many, the only way to go is global. The smartest of firms know that building assets in India takes far too long and comes with too many strings attached and therefore have begun to shop abroad.

The story of the Indian software companies’ overseas thrust is well documented but the international forays of companies in the manufacturing sector are relatively new. The audacity and aggression is truly breathtaking. Bharat Forge is the second largest forging company in the world; Ranbaxy is among the top eight generic drug manufacturers in the world. Asian Paints is one of the top five paint companies in the world. M&M is emerging as one of the world’s largest farm equipment companies.