On Friday, leading consultants, Grant Thornton LLP, released a report that reveals that Tata Motors is also among 41 fastest growing Indian companies based in Britain with 80% of its £19 billion (INR1.9 lakh crores) turnover. These increased operations in the UK are due to slow and lack luster growth potential in India.
The British economy is entering a new growth phase with many Indian companies enhancing their UK operations thanks to a flourishing UK and Indian cultural history. Indian companies also look upon the UK as an ideal base for engineering and manufacturing with 10% of the top 41 fastest growing companies operating in the industry with the auto industry being a major contributor to growth.
These fast growing Indian companies in the UK are spread out through the length and breadth of the country with 29% of the top 41 based in the capital. North of England has 29% of the total while the South has 32% and 10% based in the Midlands which is regarded as the heart of UK manufacturing.
Anuj Chande, Partner and Head of the South Asia Group at Grant Thornton UK LLP, commented: “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. 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.”
His Excellency Ranjan Mathai, High Commissioner of India to the United Kingdom, launched the report earlier this week at an exclusive dinner attended by some of the fastest growing and largest Indian employers. He said: “I am very pleased that this research has been conducted to show the strength of Indian investment and the range of business in which they have invested in the UK. This complements the UKTI statistics of India being the 5th largest investor in the UK last year.”
Chande continued: “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.”