M&A : desi style.
From software services to auto parts and generic drugs, Indian companies are becoming increasingly confident in their ability to manage global enterprises. Led by a new breed of Indian executive, they are embarking on an overseas shopping spree, snapping up dozens of small and midsize companies around the world, and sounding the death knell of the protectionist Bombay Club.
So far this year, Indian companies have announced 47 overseas acquisitions valued at about $2.2 billion, putting them on track to surpass the record $3.7 billion in Indian foreign acquisitions in 2005, when 134 deals were announced. They hope to gain expertise, build brands and add scale to set themselves up not only for business abroad but also for increasing competition at home as India continues to liberalize its economy.
Many of those leading the charge overseas are educated at Western management schools, trained at multinationals, global in outlook and eager to take care of their shareholders. As Peter Wonacott and Henny Sender write, their approach marks a radical departure from tradition. For decades, an informal group of Indian industries, known as the Bombay Club, used its lobbying clout with the government to oppose any market-opening moves -- even as rival China was well along the path to a market economy.
Now, some of the same companies support proposals that would open India's economy wider -- such as Prime Minister Manmohan Singh's recent call for his government to draw up a blueprint for a freely convertible currency, which could further fuel overseas acquisitions.
The only thing I care about for India in this coming decade is Education and Infrastructure. If we can get the ball rolling and get some killer FDI flow directed towards these 2 areas...it's going to mean sustainability in the long haul...
MMS has his work cut out for him...but what a job I say.
So far this year, Indian companies have announced 47 overseas acquisitions valued at about $2.2 billion, putting them on track to surpass the record $3.7 billion in Indian foreign acquisitions in 2005, when 134 deals were announced. They hope to gain expertise, build brands and add scale to set themselves up not only for business abroad but also for increasing competition at home as India continues to liberalize its economy.
Many of those leading the charge overseas are educated at Western management schools, trained at multinationals, global in outlook and eager to take care of their shareholders. As Peter Wonacott and Henny Sender write, their approach marks a radical departure from tradition. For decades, an informal group of Indian industries, known as the Bombay Club, used its lobbying clout with the government to oppose any market-opening moves -- even as rival China was well along the path to a market economy.
Now, some of the same companies support proposals that would open India's economy wider -- such as Prime Minister Manmohan Singh's recent call for his government to draw up a blueprint for a freely convertible currency, which could further fuel overseas acquisitions.
The only thing I care about for India in this coming decade is Education and Infrastructure. If we can get the ball rolling and get some killer FDI flow directed towards these 2 areas...it's going to mean sustainability in the long haul...
MMS has his work cut out for him...but what a job I say.
