India Inc to shine in global M

New Delhi, Apr 8 (UNI) With the continued strength of its economy and stock markets, India is likely to play an important role in the global mergers and acquisitions (M&As) market clocking deals worth 50 billion dollars this year as compared to just 16.3 billion dollars in 2005.

A steep and encouraging increase in both inbound and outbound M&As backed by healthy performance at home, strong management capabilities and access to competitive financing is indicative of this trend, Confederation of Indian Industry (CII) said today.

''Indian companies are spreading their wings beyond borders and acquiring foreign assets to serve global markets. The total value of M&A deals in India has been growing at a compounded annual growth rate (CAGR) of around 28 per cent between 2002 and 2006,'' said Dr Sarita Nagpal, Head Manufacturing Services Division, CII.

India Inc is steadily moving towards building globally competitive enterprises with M&A deals reaching 21.4 billion dollars in 2006 from 7.5 billion dollars in 2004, she said.

A paper released at the CII National Conclave on Expansions and Consolidations stated that from 1995 to August 2006, the largest proportion of outbound acquisitions has been in North America, accounting for 32 per cent of total outbound deal.

This was followed by Europe with 29 per cent of the total deals. Europe is now emerging as the prime destination for Indian companies making acquisitions abroad.

Dr Nagpal said, ''Indian companies are likely to take larger steps globally, particularly in the US and Europe, while the scale of domestic Indian companies will continue to attract both strategic and private equity interests, the latter fuelled by the growing funds raised from Western investors seeking high returns.'' Growth through inorganic route has become an integral part of companies' strategy and there is a clear drive to gain in scale and size.

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