The Hindu Business Line : Crisis offers chances for Indian cos to acquire firms abroad

PARIS: Meltdown in the world financial markets has thrown open new opportunities for Indian firms to buy out under-valued overseas assets that fit well into their gameplan for achieving global ambitions, India Inc's top CEOs say. With Dow Jones Industria l Average declining by over 10 per cent and Nasdaq index eroding by 20 per cent in the last month only, several high-flying US and European companies are quoting at Price-to-Earning (PE) multiples that could make them sitting ducks for a growing number o f Indian corporates with global foot-prints.

While the gloomy situation - despite the $700 billion bailout package - opens new avenues for inorganic growth, the acquisitions must make a “strategic fit” into the existing businesses of corporates.

Besides, funds are hard to come, leaving little scope for the leveraged buy-outs. “You have an opportunity for those Indian firms which are cash rich,” said Hinduja Group President Mr G P Hinduja.

CEOs were asked about the opportunities and challenges arising out the turmoil in the US markets and the contagion in Europe. They included Hinduja, Bharat Forge Chairman Mr Baba N Kalyani, M W Corp Chairman Mr Mukul Kasliwal, TCS Executive Director Mr P hiroze Vandrevala, JK Paper Managing Director Mr Harsh Pati Singhania, FICCI Secretary General Mr Amit Mitra, CII Director General Chandrajit Banerjee, Great Eastern Energy Corporation Chairman Y K Modi and Mr Triveni Engineering Chairman and Managing Di rector Mr Dhruv Sawhney.

They were here for India-EU Business Summit last week. The FICCI Secretary General felt European and American firms can be acquired at dirt cheap price. “Assets are under-valued and the Indian companies will take advantage,” Mr Mitra said. - PTI

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