India Inc teams up for global insights
The project called 'India Inc Going Global', is being conceived by Harvard Business School and the CII, reports Indulal PM.business Updated: Jun 25, 2007 02:06 IST
India Inc is teaming up to share knowledge in global markets. As more Indian companies expand their global footprints, large corporates such as Infosys, Asian Paints and Mahindra & Mahindra have taken the lead in forming a platform that will facilitate dissemination of information on global markets.
The project, billed "India Inc Going Global”, is being conceived in participation with the Harvard Business School and the Confederation of Indian Industry (CII).
"The programme helps companies to understand a particular global market,” said an executive who is part of the alliance. Business houses participating in the project include Infosys, Mahindras, Bharat Forge, ICICI Bank and Asian Paints. BS Brar, MD of GVK Biosciences, is heading the project. The members include DS Shibulal, co-founder and director, Infosys; Chanda Kochhar, deputy MD of ICICI Bank; and Amit Kalyani, executive director, Bharat Forge.
The programme envisages a better knowledge-sharing platform for the regulatory and business environment of a particular target company. "We have formed three clusters -- inorganic growth, leadership element, and the India advantage. Depending on the strategic need of the members, they can join whichever group they are interested," the executive said and added that the number of clusters would be increased depending on the requirements.
According to a recent Ernst & Young study, Indian firms are expected to spend more than $35 billion this year in cross-border acquisitions. In 2005, Indian firms spent $4.3 billion on international mergers and acquisitions and this went above $15 billion in 2006, the report said.
This year, Tata Steel acquired Anglo-Dutch steel major Corus for $12.3 billion and Birla group's Hindalco bought Canada's Novelis for $6 billion. So far this year Tata Power bought Indonesia's Bumi Resources for $1.3 billion while Essar took over Algoma Steel for $1.5 billion.
"But this does not just include M&As. The programme also intend to provide a better understanding of the business and financial environment," the executive said.