Indian businessmen keen on acquisitions abroad

New Delhi, July 26 (UNI) Indian entrepreneurs have gone out aggressively buying outright and acquiring stakes in overseas companies at a far greater speed than their compatriots shopping around the running concerns in India.

An analysis by the ASSOCHAM Eco Pulse (AEP) study shows that of the total 58 Mergers and Acquisition (M&A) deals finalised globally during May-June 2006, Indian firms secured 24 outbound transactions, mostly in engineering, IT-ITeS, pharmaceuticals and energy sectors.

There were three outbound deals in each of these areas in the two month period tracked by the AEP study.

Corporate giants like Wipro, Tata Motors, Nicholas Piramal, Larsen&Toubro, Raymonds and Lupin Laboratories were in the lead in the acquisition race overseas.

''The Indian private sector firms seemed have received a shot in their arm by L N Mittal' s takeover of Arcelor. They have well fought the so called economic patriotism in some of the European countries,'' ASSOCHAM President Anil K Agarwal said.

The trend only proves that entrepreneurial courage and skill of Indian Industry has been unleashed wherever opportunities exist all around the globe. Instead of investing in time-consuming greenfield projects, there is increasing pattern noticed about the entrepreneurs going and buying out existing firms, he added.

All our industrial houses seem to have been enthused by L N Mittal's business philosophy of expansion through acquisitions since, as he says, life is short and the entrepreneurs have to make the best use of it, ASSOCHAM Secretary General D S Rawat said.

In the domestic arena also cement, IT and ITeS, telecom, pharmaceutical and retail sector witnessed maximum number of deals.

Wockhardt Ltd acquired Dumex India Ltd to bring in 'Synergies' while in pharmaceutical segment also Tata Industries made an undisclosed investment to pick up about 30 per cent in Indigene Pharmaceuticals.

The sectoral breakup of the total deals reveals that the energy sector accounted for eight deals, highest in number, which is followed by engineering and technology (IT and ITeS) sector with six deals each.

The pharmaceuticals sector also struck five deals during the two month duration. Telecom and FMCG sector witnessed four deals each.

In the most recent acquisitions, Wipro Technologies acquired European-based IT solutions provider enabler for an all cash deal exceeding 52 million dollar, computer aided design and engineering services firm 'Quantech'. In other such deals, NIIT Technologies Ltd (NTL) took over UK-based insurance solutions provider 'ROOM Solutions' Ltd for around 25 million dollar in an all cash deal, Godrej Beverages and Foods also acquired 'Nutrine Confectionery' for an approximate sum of Rs 250 crore and Lupin Ltd purchased 51 per cent stake in Belgium's 'Artifex Finance CVA'.

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