Tata Motors accounts for 80% of the £19-billion (approx Rs. 1.9 lakh crore) turnover of the 41 fastest-growing Indian companies based in Britain, according to a new analysis by consultants Grant Thornton LLP released on Friday.
The report prepared in collaboration with the Confederation of Indian Industry says that over 700 Indian companies in Britain employed over one lakh people and played an important role in the country’s economy. Tata Steel and Tata Motors together employ nearly 60,000 people.
Anuj Chande, partner and head of the South Asia Group at Grant Thornton, said: “The appetite and opportunities for successful UK investment by Indian companies remains as strong as ever. In light of sluggish growth potential in India, investors are increasingly eager to enter, or scale up their UK operations as the British economy re-enters a growth phase”.
He added: “The UK and India’s cultural history also plays a large part in many Indian executives decision to set up a base here, giving them direct UK market access and a springboard into the recovering European market”.
The report titled 'India Meets Britain: Tracking the UK’s Top Indian Companies’ says that over half of the top 41 fastest-growing companies are in the pharmaceuticals and chemicals (22%) and technology and telecoms (32%) sectors.
The report adds that Indian companies also appear to regard the UK as a good base for engineering and manufacturing, with 10% of the top 41 operating in the industry.
“The automotive industry remains a significant contributor to growth…Unsurprisingly this is dominated by Tata Motors”, the report says.
According to the research, London is not the overwhelming dominant location in which Indian companies choose to set up. The fastest-growing Indian companies in the UK are fairly evenly spread throughout the country, with just under 30% of the top 41 based in the capital.
Chande said: “The entrepreneurial spirit of Indian companies is evident in the fact that many have entered quite specialist and high-value sectors, such as pharmaceuticals and technology. Moreover, they’ve located their businesses in regions where the local job market acts in their favour – either through specific acquisitions of businesses in those regions, or the attractiveness of investment opportunities marketed by business councils and local authorities in these areas.”