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This presentation by consultant Carl Nisser from SJ Berwin LLP London delves into the changing investment trends in India, highlighting the major issues in the internal market, the competitive landscape fostering stronger Indian companies, and the shift from inbound to outbound investment strategies. Key topics covered include democratic strength, growth rates, entrepreneurial spirit, competition dynamics, and cross-border deals by Indian firms, predicting a surge in M&A activities by Indian companies. The presentation also discusses the increasing presence of Indian businesses in Europe, private equity investments, and the evolving nature of India's global economic engagements.
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India: Moving away from inbound to outbound investmentCarl Nisser – ConsultantSJ Berwin LLP – London3130087
Overview of Presentation • Major issues in India’s internal market • Competition – a base for stronger Indian companies • Changing investment trends 1
Major issues in India’s internal market • Democratic strength • Growth rate of 9 percent overall and 15 percent in IT • Increased education reflected in improving literacy rates – total adult population (15 +) 61.3 percent. Youth (15 - 24) 73.3 percent • Entrepreneurial spirit • Rule of Law and Competition Law • Huge financial market • Military R&D and production • Sustainable energy production and nuclear power generation 2
Competition – a base for stronger Indian companies • India is one of the most competitive countries for production of steel, auto components, pharmaceuticals and chemicals offering low cost high value products • Software and services such as call centres, accounting, graphic art, customs application developments, back offices for multinational entities • Local versus foreign lawyers • Governmental interference 3
Changing investment trends • From back office to main stage • From agents and distributors to direct presence with a footprint in Europe through M&A’s for strategic reasons 4
Cross border deals by Indian firms Changing investment trends (cont’d) 5
Changing Investment trends (cont’d) • Indian firms acquired 180 firms in EU and US in 2006 and 130 in 2005 • 210 M&A’s by Indian companies expected in 2007 and about 400 in 2010 • Mittal Arcelor; Tata Tetley; Tata Corus • Bollywood now shoots in UK, diamond trade in Antwerp etc. • Presence of Indian immigrants in the EU • Private Equity from small to large • 40 percent of acquisitions by Indian companies are in Korea, Hong Kong and Singapore and 60 percent in EU and US 6
Changing investment trends (cont’d) • Total M&A’s into India in 2006 $3.5 billion whilst private equity deals $7.5 billion 7
Many thanks for listening. Carl Nisser Consultant – SJ Berwin LLP 10 Queen Street Place, London EC4R 1BE Tel: +44(0)20 7111 2396 E-mail: carl.nisser@sjberwin.com 8