Manufacturing firms on expansion binge
Manufacturing companies are planning to invest as much as Rs 200,000 crore over the next two years.
• Of Rs 200,000 cr, Rs 100,000 cr will come from internal generation
• Half of this debt may come through the ECB route
• Most corporates are going for brownfield expansion
• Rising interest rates won't impact India Inc's investments
With annual outflows averaging at $1 billion, the country's ranking in UNCTAD's outward FDI performance index has already shot up from the 107th position in 1999 to the 61st spot in 2003.
The two most important destinations for Indian FDI last year were the US and the Russian Federation, accounting for around 37 per cent of the total Indian overseas investments during last year, while Europe accounted for 40 per cent of the total outflow.
Some large Indian investments
• ONGC's 25 per cent stake buy-out in a Sudan oil firm from Talisman Energy of Canada for $720 million (around Rs 3,312 crore)
• The Hinduja's purchase of controlling interest in C3, a call centre in the Philippines
• Msource's Spanish language centre in Tijuanna, Mexico
Manufacturing Outsourcing
India is fast developing into a manufacturing hub for world corporations wanting to leverage the sector's proven skills in product design, reconfiguration and customisation with creativity, assured quality and value addition. About 20 percent of Indian automotive production in 2004 is exported to developed countries.
While some MNCs enter into OEM deals to source components, others have Indian arms to supply to global markets.
• GE has entered into an OEM deal with Thermax India to supply chillers for the latter's power systems.
• South Korean two-wheeler major Hyosung is making India the
manufacturing hub for its 250cc cruiser bike, Aquila through a technical
tie-up with Pune-based Kinetic Engineering.
• Ford Motor Company is aiming to source US$ 120-160 million worth
of auto components from Indian manufacturers over the next two years under its India Sourcing Program.
• Global consumer electronics giant Matsushita of Japan has decided
to source Panasonic colour television sets from India for its international market.
• Colgate is setting up a brand new toothpaste facility in western India which will be one of 15 such facilities across the world.
Manufacturing companies are planning to invest as much as Rs 200,000 crore over the next two years.
• Of Rs 200,000 cr, Rs 100,000 cr will come from internal generation
• Half of this debt may come through the ECB route
• Most corporates are going for brownfield expansion
• Rising interest rates won't impact India Inc's investments
With annual outflows averaging at $1 billion, the country's ranking in UNCTAD's outward FDI performance index has already shot up from the 107th position in 1999 to the 61st spot in 2003.
The two most important destinations for Indian FDI last year were the US and the Russian Federation, accounting for around 37 per cent of the total Indian overseas investments during last year, while Europe accounted for 40 per cent of the total outflow.
Some large Indian investments
• ONGC's 25 per cent stake buy-out in a Sudan oil firm from Talisman Energy of Canada for $720 million (around Rs 3,312 crore)
• The Hinduja's purchase of controlling interest in C3, a call centre in the Philippines
• Msource's Spanish language centre in Tijuanna, Mexico
Manufacturing Outsourcing
India is fast developing into a manufacturing hub for world corporations wanting to leverage the sector's proven skills in product design, reconfiguration and customisation with creativity, assured quality and value addition. About 20 percent of Indian automotive production in 2004 is exported to developed countries.
While some MNCs enter into OEM deals to source components, others have Indian arms to supply to global markets.
• GE has entered into an OEM deal with Thermax India to supply chillers for the latter's power systems.
• South Korean two-wheeler major Hyosung is making India the
manufacturing hub for its 250cc cruiser bike, Aquila through a technical
tie-up with Pune-based Kinetic Engineering.
• Ford Motor Company is aiming to source US$ 120-160 million worth
of auto components from Indian manufacturers over the next two years under its India Sourcing Program.
• Global consumer electronics giant Matsushita of Japan has decided
to source Panasonic colour television sets from India for its international market.
• Colgate is setting up a brand new toothpaste facility in western India which will be one of 15 such facilities across the world.