Rupee rise emboldens India Inc to look for foreign buyouts
Mahindra and Mahindra, Godrej and Biocon are looking at acquisitions in overseas markets. NRI wealth primer for India
By PTI |
NEW DELHI: While the rupee's sharp rally is becoming a cause for heartburn among exporters, it is giving attractive foreign acquisition opportunities to some of the big corporate houses such as Mahindra and Godrej.
Business heads of three leading Indian firms from as many sectors -- automaker Mahindra and Mahindra, consumer goods major Godrej and biotechnology firm Biocon -- today said they were looking at acquisitions in overseas markets as the rupee appreciation had made such plans a good-value proposition.
"With the rupee appreciating, you are going to be able to acquire companies," Biocon Chairman Kiran Mazumdar Shaw told reporters here on the sidelines of the India Economic Summit.
Biocon is looking to buy companies in the US, Europe and emerging markets and this could happen by the end of this fiscal, she said.
"Rising rupee is a good time to go and acquire companies abroad," Godrej group Chairman and Managing Director Adi Godrej said at the same summit.
"We are looking at emerging markets like Latin America, South Africa and China," Godrej said, adding that the acquisition would be in the range of $500 million.
An acquisition of this size would cost today less than Rs 2,000 crore in the Indian currency, but would have been higher by 10-15 per cent as of last year. Rupee is currently trading at around 39.80 to a dollar, representing a surge of about 14 per cent in a year.
Automotive major M&M's Vice Chairman and MD Anand Mahindra also said that the company was planning to acquire companies in overseas markets as the rupee's rise against the dollar had cut down the cost of overseas acquisitions
Business heads of three leading Indian firms from as many sectors -- automaker Mahindra and Mahindra, consumer goods major Godrej and biotechnology firm Biocon -- today said they were looking at acquisitions in overseas markets as the rupee appreciation had made such plans a good-value proposition.
"With the rupee appreciating, you are going to be able to acquire companies," Biocon Chairman Kiran Mazumdar Shaw told reporters here on the sidelines of the India Economic Summit.
Biocon is looking to buy companies in the US, Europe and emerging markets and this could happen by the end of this fiscal, she said.
"Rising rupee is a good time to go and acquire companies abroad," Godrej group Chairman and Managing Director Adi Godrej said at the same summit.
"We are looking at emerging markets like Latin America, South Africa and China," Godrej said, adding that the acquisition would be in the range of $500 million.
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An acquisition of this size would cost today less than Rs 2,000 crore in the Indian currency, but would have been higher by 10-15 per cent as of last year. Rupee is currently trading at around 39.80 to a dollar, representing a surge of about 14 per cent in a year.
Automotive major M&M's Vice Chairman and MD Anand Mahindra also said that the company was planning to acquire companies in overseas markets as the rupee's rise against the dollar had cut down the cost of overseas acquisitions
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