Small companies, big shoppers

July 9 - The Economic Times - Call it a buying spree by India's minnow brigade in the global bazaar. Just when you thought that the strengthening of the rupee is taking its toll on exports, a bunch of small firms seized the opportunity to gobble up a few foreign firms. As many as 46 overseas acquisitions by small and medium-sized companies in India have been recorded in the past one year alone.

Of the 46 acquisition deals that have been concluded in the past year, 41 companies are by small, says a research analyst at the Federation of Indian Chambers of Commerce and Industry.

Though a bulk of these acquisitions are in the IT space, sectors like pharmaceuticals, gems and jewellery, agro, automotive, electrical and electronics and food and beverages, among others, too have added a chapter to the M&A story. The IT industry had the maximum number of acquisitions to its credit. While big Indian companies have been shying away from large ac-quisitions, mid-size IT players have been setting more aggressive acquisition targets. Mid-tier companies need to attain scale to get invited to the same bids as the big firms. Some of them are focused on niche areas and need to build competencies in those areas. Read More.