The
urge to merge and acquire companies overseas by Indian
IT, pharma, and other big-ticket M&As like the Tata
Group''s bid for the Anglo-Dutch Corus Group with a $9.5-billion
offer, could lead to higher outflows in of foreign direct
investments (FDI) from India than inflows in to the country
this year.
Till
date acquisitions of foreign businesses by Indian companies
this year alone have amounted to around $10 billion and
by the end of FY 2007 outflows could end up exceeding
the total foreign inflows into the country.
As
Indian companies compete aggressively in the global markets,
they have been trying to locate operations where the least-cost
mix of labour and raw materials and marketing advantages
present themselves.
Increased
Indian investments overseas reflect the need of operating
in a globalised market place.
Major
overseas investments have been made by Tata Tea, Indian
Hotels
Company, M&M Bharat Forge, Wipro, Nicholas Piramal,
Videocon, Wockhardt, Sterling Biotech, Geometric Software
and a host of mid rung IT and pharmaceutical companies.
|