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Indian firms took over more than 75 international companies last year. Among the most-publicized deals, Tata Motors, part of Tata Group, India's oldest industrial conglomerate, bought South Korean company Daewoo's truck plant in that country. Reliance Infocomm, belonging to India's largest privately held business house, Reliance Group, took over Flag International, a major telecom network, for US$211 million. The deal gives Reliance access to 50,000 kilometers of fiber optic network worldwide. Software giant Wipro Ltd has acquired US-based consulting company Nerve Wire for $18.7 million even as its contemporary, Infosys Technologies, snapped up Australian software firm Expert Information Services Pty Ltd for $23 million.
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US and European companies are there to be taken over by Asia its already happening.
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In the UK alone, Indian firms have about 440 investments/joint ventures, with India being the eighth largest investor. Last year, the top 92 Indian-American owned companies in the US generated business of $2.2 billion and provided full time employment to about 19,000 in 2002. There are 1,441 Indian companies operating in Singapore. Of these more than 450 are technology enterprises.
Having ventured abroad, some Indian companies are already leaders in their fields. Essel Propack is the world's largest laminated tube manufacturer with a presence in 11 countries and a global marketing share of 25%. Moser Baer is the world's second largest manufacturer of blank compact discs. Hindustan Inks has the world's largest single stream fully integrated ink plant of 100,000 tons per annum capacity and 100%-owned subsidiaries in the US and Austria. Aditya Birla Group is the world's largest producer of viscose staple fiber.
A spin-off of Indian companies taking the acquisition route for further growth is the trend of other corporates setting up greenfield ventures abroad. Mahindra & Mahindra is producing 10,000 tractors annually at its US subsidiary. The automotive giant is now planning similar forays in Indonesia, China, Russia and South Africa. Electrosteel Castings is setting up a finishing facility for ductile iron pipes in Spain with a capacity of 175,000 tons per annum. Hindustan Seals, manufacturer of roll on pilfer-proof closures and crown closures, is setting up manufacturing facilities in Sri Lanka, Egypt, Morocco, Tanzania and Russia. Finally, Oswal Projects is commissioning an ammonia project in West Australia with an investment of $630 million.
With economic liberalization having paved the path to prosperity, Indian companies are better equipped to take advantage of new opportunities. Many of them are sitting on piles of cash thrown up by profitable local ventures.
Add to this the erosion in the values of international companies due to an ongoing global recession. More Indian companies can therefore be expected to snap up their foreign competitors in the months to come.
One good thing about the broke Europeans is their countries are easy for the Indian take away