Once
protected from overseas competition, India Inc. is fast becoming
a hunter, extending its footprints far beyond its own borders.
It is diversifying operations and investments across the world,
leaving an indelible mark on the world stage. India Inc. is
increasingly realizing that it is operating in a global economy
and accordingly adopting a comprehensive vision. Conducive
economic environment and easier access to debt financing have
improved liquidity like never before.
This has given rise
to an unparalleled appetite for business consolidation, triggering
a wave of big-ticket domestic as well as cross-border mergers
and acquisitions (M&As). The increasing number and value
of outbound M&A deals is a sign of the present mindset
of several Indian companies—acquire and grow worldwide.
Consequently, the Indian companies are looking for scale,
efficiency and competitiveness and are not hesitant to take
risks. The risk-taking tendency highlights the growing prominence
of corporate India in the global arena.
In
the latest Fortune Global 500, as many as six companies
from India—IOC, RIL, BPCL, HPCL, ONGC and the SBI—have
joined the elite club. Based on the current growth and M&A
trends, the number is expected to double by 2010. Interestingly,
India Inc. is spending more money on overseas acquisitions
than foreign companies and making its presence felt globally.
For the first time, leading Indian conglomerates like Tata
and Reliance have featured in the annual list of top 50 most
innovative companies in the world, compiled by BusinessWeek
in association with Boston Consulting Group. In the process,
both have edged past several international giants known for
innovation.
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