New Delhi, June 22, 2009
Financial Chronicle
Nearly half of the companies surveyed by industry chamber Ficci said they would consider to make fresh investments in Europe as they expect markets there to stabilise and recover in the next six to 12 months.
The survey said the Indian investments in the EU during the current year might not reach the 2008 mark of Euro 2.4 billion due to global economic slowdown.
The survey covered 30 companies including Wockhardt, Suzlon Energy, HCL Technologies, Apollo Tyres and ONGC, out of which 12 firms were positive about the European markets and said would consider making fresh investments there.
A majority of the firms said the planned deal size is less than USD 100 million on an average as they are not willing to go for large-sized buys because of the current economic environment, the study said.
It said the rush to acquire companies in Europe reached its peak in 2007 when the total investments reached a high of Euro 9.5 billion, while the investment dropped to Euro 2.4 billion in 2008.
European countries emerged as a favoured destination for Indian companies, who were seeking growth in size and scale of operations, increased market access, better technologies and research and development facilities.
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