Why Indian Companies Betting High On Foreign Investment

Bangalore: Decline in the value of rupee has not stopped Indian companies to buy businesses from abroad. For instance, recently Apollo Tyres have bought Cooper Tires for a whopping $2.5 billion. This premium acquisition took place when the country is witnessing sharp depreciation in the rupee.

According to Grant Thornton data, in 2012 Indian companies have spent up to $14 billion on overseas acquisitions, which was 27 percent higher when compared to 2011. In the same year, the rupee value slipped from 46.5 to 53.4 to a dollar that is up to up to 15 percent.

Little wonder, this year, Indian companies spent around $3.5 billion on foreign acquisitions until now, including the Apollo Tyres deal. This indicates an increase of 72 percent in the same period last year.

In the year 2007, many Indian companies made overseas business by investing $33 billion in that particular year. One of those renounce deal was Tata Steel’s business deal with Anglo-Dutch steel maker Corus who invested up to $12 billion.

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