1 / 11

INDIA INVESTMENTS ABROAD

INDIA INVESTMENTS ABROAD. Indian Outward FDI Scenario. India has emerged as the world's 21st largest outward investor, with an investment of over USD 75 billion across the world over the past decade. Annual FDI outflows have jumped fifty-fold after 2000.

felice
Download Presentation

INDIA INVESTMENTS ABROAD

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INDIA INVESTMENTS ABROAD

  2. Indian Outward FDI Scenario • India has emerged as the world's 21st largest outward investor, with an investment of over USD 75 billion across the world over the past decade. Annual FDI outflows have jumped fifty-fold after 2000. • During 2009-10, the actual outward FDI in JVs and WOSs stood at US$ 10.3 billion • During the first quarter of fiscal year 2010-11, Indian companies completed 101 outbound acquisitions • Indian companies made 536 outbound acquisitions globally in fiscal year 2009-10 • The manufacturing sector accounts for the bulk of overseas investment (FDI) by Indian companies followed by ‘financial, insurance, real estate and business services' and by ‘wholesale and retail trade and restaurants and hotels’. • IT initially dominated services OFDI, investment in other services industries, such as financial and insurance services, entertainment and broadcasting, construction, and telecommunications, is now mounting. • On a yearly basis, Singapore was the largest FDI recipient in 2009-10due to a sudden jump in investments after the two countries signed a Comprehensive Economic Cooperation Agreement in 2005.

  3. India: distribution of outward FDI flows, by economic sector and industry,ª selected years (US$ billion, and percent of total outflows)

  4. India: geographical distribution of outward FDI flows, 1996-2010

  5. India’s top 15 outward FDI destinations, 1996-2002 and 2002-2009

  6. High Profile M&A deals by Indian Outward Investing Firms

  7. India: top 25 Greenfield projects, by outward investing Indian firm, 2007-2009

  8. Recent Investments • ELGI Equipments Limited (EEL), a manufacturer of industrial compressors has approved a US$ 953,823 worth acquisition of Belair S.A – France, a company engaged in assembly, sales and service of industrial compressors, piping, fittings and accessories. • Shree Renuka Sugars Ltd, has signed an agreement with Brazilian conglomerate, GrupoEquipav, to buy a controlling 50.79 per cent stake in Equipav SA Acucar e Alcool for US$ 329 million. • Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has acquired a 10 per cent stake in Canada-based Americas Petrogas Inc and a 20 per cent stake in its subsidiary GrowMaxAgri Corp • Telecom company, BhartiAirtel, has announced that it has agreed to acquire a 70 per cent stake in Bangladesh-based Warid Telecom. • Nava Bharat (Singapore) Pte Ltd has signed a share sale and purchase agreement (SPA) with the Zambian government for acquiring a 65 per cent stake in Maamba Collieries Ltd (MCL). • Automobile major, Mahindra & Mahindra (M&M), has forayed into the aerospace business by acquiring majority stakes in two Australian companies, Aerostaff Australia and Gippsland Aeronautics. • Kolkata-based Pawan Kumar Ruia Group has acquired a 60 per cent stake in Germany's Henniges Automotive Grefrath GmbH, a supplier of automotive sealing systems to leading carmakers. • India-based Crompton Greaves Ltd, part of the Avantha Group, has acquired the UK-based electrical engineering company, Power Technology Solutions, for around US$ 45.5 million. • The Essar Group has acquired a coal mine in Indonesia to fuel its upcoming thermal power projects, becoming the fourth Indian firm to buy coal mines in the South-East Asian nation. • The Chennai-based Siva Group, a US$ 3-billion diversified conglomerate, has acquired a 50 per cent stake in Isklar, a Norwegian glacial natural mineral water company.

  9. Investment Policies • The limit for investment up to US$ 50 million, which was earlier available in a block of three years, is made available annually without any profitability condition. • The limit of 200 per cent of the net worth of the Indian party has been enhanced to 400 per cent of the net worth of the Indian party. • The Indian venture capital funds (VCFs), registered with the SEBI, are permitted to invest in equity and equity-linked instruments of offshore venture capital undertakings, subject to an overall limit of US$ 500 million and compliance with the SEBI regulations issued • The aggregate ceiling for overseas investment by mutual funds, registered with SEBI is US$ 7 billion. The existing facility allows a limited number of qualified Indian mutual funds to invest cumulatively up to US$ 1 billion in overseas Exchange Traded Funds, as may be permitted by the SEBI. • The Liberalised Remittance Scheme (LRS) for Resident Individuals has been enhanced to US$ 200,000 per financial Year • The limit for portfolio investment by listed Indian companies in the equity of listed foreign companies has been raised to 50% of the net worth of the investing company as on the date of its last audited balance sheet. • Registered Trusts and Societies engaged in manufacturing/educational sector have been allowed to make investment in the same sector(s) in a Joint Venture or Wholly Owned Subsidiary outside India, with the prior approval of the Reserve Bank.

  10. Looking Ahead • With more mergers and acquisitions, Indian companies would be getting direct access to new and more extensive markets, and new products and technologies, which would enable them to increase their existing customer base and market hold. • The growth of Indian OFDI is expected to continue. The sectoral and regional distribution of Indian outward FDI is broadening. • According to a recent report, India might be the largest source of emerging market MNEs by 2024 • Over 2,200 Indian firms are likely to invest overseas in the next fifteen years • The liberalization of sectors as medical services, defence and education is prompting Indian firms to explore overseas acquisitions to build both domestic strength and global presence. • It can also be expected that foreign investments in the natural resource sectors will surge, given the continuing difficulty in acquiring large tracts of land for agricultural purposes and the growing resistance to large mining projects in India.

  11. D – 139, East of Kailash, New Delhi – 110065, INDIA T: +91 11 46544801/02/03 E: info@aceglobalconsulting.com W: www.aceglobalconsulting.com Via- Maffino Maffi, 12 – 26100 Cremona, ITALIA T: +39 0372.450827 E: antonio.pozzari@bpsinternational.org W: www.bpsinternational.org

More Related