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M&A helping Indian firms emerge globally: Sanjay Dawar

Sarika Malhotra     July 5, 2013
The quest for growth has spurred a number of Indian companies to look beyond their national boundary over the last couple of years. The outbound investments by Indian companies have almost tripled over the last decade. The main factor driving Indian companies' overseas investments is the search for top-line revenue growth through new capabilities, knowledge and assets, product diversification and market entry.

Some of them have been fairly successful at leveraging their low-cost advantage to create efficient global business models and seeking entry into fast-growing emerging markets as well as developed economies. To be sure, eight Indian companies now feature in the Fortune Global 500 list.

Notably, the scale of overseas investment by domestic companies has also expanded over the last few years. In fact, India was placed second in 2010, only after China, in terms of the average size of net purchase deals.

M&A has proven to be a rapid and efficient vehicle for Indian companies in this race for global growth, particularly for family-run Indian companies. In 2012, India's outbound M&A value totaled to $11.2billion, a 68.5 per cent jump from last year. Acquisi-tions are helping Indian compa-nies to reach the required scale quickly and emerge as significant players on the global stage.

Sanjay Dawar, Managing Director, Accenture Consulting

(As told to Business Today's Sarika Malhotra)

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