India emerges third largest investor in UK
Manoj Kumar
July 5, 2006
It is not only L.N Mittal with an Indian address who is raring to take on the global companies in steel sector, but Indian companies like Mahindra & Mahindra, Essel Propack, Nicholas Piramal from different sectors are making strategic investment in countries like UK to expand their global reach.
“With Indian businesses investing £1.02 billion into the UK, India now ranks as the third largest foreign investor in the UK globally, and the second largest from the Asia-Pacific region,” British High Commissioner to India, Sir Michael Arthur said today.
Indian foreign investment projects into the UK increased by a staggering 110 per cent in 2005-06, Mr Arthur said. During 2005-06, the UK recorded a total of 76 investment projects from India.
Having been on the top 10 FDI league table for several years, and now third Indian companies seem to be using the UK as their international base and gateway into Europe.
According to 2005-06 UK Investment Review Report’ authored by Mr Mark Dolan, UK Trade & Investment Deputy Director India, Inward Investment: “The flow of Indian investment to the UK has turned from a trickle in the late 1990s to a flood, with the scope and breadth of projects rapidly expanding. While IT remains the dominant sector for investment, there is strong growth in investments in pharmaceuticals and engineering as well.”
In 2005-06, 1,217 foreign companies from around the world chose to invest in the UK - a 14.3 per cent increase over the previous year. The US, with 446 projects, Japan, with 84 projects, and India, with 76 projects are the top three investors.
The 76 new projects from India include 39 from Mumbai, 10 from New Delhi, 22 from Bangalore, Chennai and Hyderabad, and 5 from Kolkata.
Mr Rajeev Sawhney, Corporate Vice-President, HCL Europe, said: “HCL has created employment of over 2,000 there and has contributed to the local economies in its own way.”
Among other major Indian companies, which are aggressively investing in the UK include Essel Propack Ltd — the world’s largest packaging company with estimated 32 per cent global market share. It has acquired Arista Tubes and Telcon Packaging in the UK for a combined value in excess of £6.4 million, and safeguarded 200 jobs.
The company plans fresh investments worth £2.7 million in the UK. Nicholas Piramal India Limited (NPIL)- global leader in healthcare from India, has also acquired global marketing rights and technical know-how of Inhalation Anaesthetics business from Rhodia Organique Fine Limited, UK, for £8.9 million, besides acquiring another UK company, Avecia Pharmaceuticals Limited, for £9.5 million.
State owned State Bank of India has also recently opened branches in Manchester, Leicester and Birmingham.
El Forge, a Chennai-based supplier of automotive components, acquired Shakespeare Forgings Limited, Birmingham, which serves the auto, agricultural and mining sectors in the UK.
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