GLOBAL INDIAN COMPANIES
Where do you see the merging and acquisition (M&A) drive among Indian companies going in the next five years?
It is inevitable that we will see consolidation in many sectors and I expect Indian companies will be much more active in executing cross-border transactions as they reach out to cater to new markets. We have already seen this happening with several old economy heavyweights picking up assets across the globe in areas such as automotive, energy and metals.
Indian companies in search of size will continue to seek targets overseas. Sectors like minerals, metals, chemicals etc will be active in this regard. Overall, we will Where do you see the merging and acquisition (M&A) drive among Indian companies going in the next five years? see an increased merger and acquisition activity among Indian companies with a bias towards small domestic deals and large cross border deals.
I feel that there is no question of a slowdown in the M&A activities in the next five years. It is difficult to pinpoint a particular region or country as a preferred destination and say that most M&As will be directed there. Indian companies will always be on the lookout for opportunities that they feel will be worth pursuing
Please comment on India Inc and its standing among global corporations on the corporate social responsibility (CSR)
and sustainable development fronts.
On the CSR front, there is so much that can be done for the larger society, that we are part of, that there is no dearth of opportunities to contribute. At Mahindra Satyam we pioneered the concept of Emergency and Healthcare Management such as emergency ambulance service. On sustainability, India Inc is seized of its responsibilities.
India Inc is far behind most in the current waves of CSR and sustainability. As a nation we have a long history of generous corporations using philanthropy to work with the communities where we operate. Moving to a more strategic, mainstream engagement has been slow – but is the key to India’s development, both to seize opportunities as well as mitigate risks.
The recent summit in Bangalore, where both Indian and foreign multinationals pledged billions of dollars in investment, reflects India’s growing strength as a competitive investment destination. Why should (or why should not) global Indian companies be focusing more on the market at home?
We are addressing a massive opportunity of including millions in this growth story as new and untapped markets unfold. However, we have challenges - developing human capital in general and quality talent for employment as well as infrastructure to support these exciting changes and opportunities. This we are doing fully conscious of social and environmental imperatives and look for environment friendly technology transfer.
Indian multinationals would definitely be very keen on focusing on the home market where opportunities exist. If the market exists for their products/services, one would unlikely not tap the home advantage. I think it’s only a question of time that we become consumers of things that we now produce/deliver to other parts of the world....
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