The latest annual India meets Britain Tracker reveals that Brexit uncertainty has not dampened the appetite of Indian investors for British business. Instead, analysis of data from almost 850 UK-incorporated limited companies owned or controlled by Indian interests* found a significant increase in the contribution of Indian companies to the UK economy over the last year…reports Asian Lite News
The uncertainty in the market over Brexit fails to dither Indian investors to perch on Britain. There are now a record 842 Indian companies operating in the UK, up from c. 800 in the previous year, with combined revenues of almost £48 billion (£46.4 billion in 2018), according to a report published by CII and Grant Thornton. There are now a record 842 Indian companies operating in the UK, up from c. 800 in the previous year, with combined revenues of almost £48 billion (£46.4 billion in 2018),
Confederation of Indian Industry (CII) and Grant Thornton launched the 6th edition of the India Meets Britain Annual tracker that maps fastest growing Indian companies in the UK. The report was launched by Mr Graham Stuart, Minister for Investment, Mrs Ruchi Ghanashyam, High Commissioner of India, Mr Chandrajit Banerjee, Director General, CII, David Dunckley, CEO, Grant Thornton UK, Anuj Chande, Partner, Grant Thornton UK and Lakshmi Kaul, Head & Representative – UK, CII.
The launch event was attended by a number of fastest growing Indian companies in the UK and dignitaries including Baroness Usha Prashar, Lord Jitesh Gadhia and Lord Dolar Popat, Prime Minister’s Envoy to Rwanda & Uganda.
Indian companies paid a combined total of over £684 million in corporation tax, which is almost double the amount recorded in last year’s report (£360 million), and employed 104,783 people (104,932 in 2018 report).
The 2019 report provides an overview of the complete landscape of Indian investment into the UK. It also provides a tracker of the fastest growing companies, as measured by those with turnover of more than £5 million, year-on-year revenue growth of at least 10% and a minimum two-year track-record in the UK.
“This year’s report shows the continued importance of the contribution that Indian companies make to the UK economy,” said Anuj Chande, Partner and Head of South Asia Group at Grant Thornton UK LLP. “This investment creates jobs, contributes tax and plays an important role in extending the long-standing ties between India and the UK.
“Given the continuing uncertainty driven by the UK’s exit from the EU, it is encouraging to see that Indian investors continue to invest confidently in the UK and in fact, there are now more Indian businesses active in the UK than ever before.
“The attraction for Indian investors and families includes factors such as top universities and the opportunity to do business in English. The fall in the value of sterling has also had a role to play, making UK assets increasingly attractive to overseas investors. Low rates of corporation tax and the ease of doing business in the UK also remain significant draws.”
This year’s tracker includes 62 companies that recorded an average growth rate of 37%. The total combined revenue of these companies reached over £12 billion last year. Three companies in this year’s Tracker reported growth of more than 100%. The fastest growing of these is TMT Metal Holdings Limited, with a growth rate of 649%. This was followed by Route Mobile (UK) Limited, which reported growth of 189%, and BB (UK) Ltd, which achieved turnover growth of almost 129%.
Technology and telecoms companies continue to dominate the Tracker, as they have done since its launch in 2014. This year, they account for 35% of the fastest-growing companies. Engineering and manufacturing companies are the next in line, accounting for 16% of the 2019 Tracker. This is followed by pharmaceutical and chemicals companies, which account for 15%, continuing historically strong representation.
The geographical spread of the fastest-growing Indian companies across the UK remains unchanged compared to last year.** London continues to be the preferred location for more than half (53%) of the 62 fastest growing Indian companies.
The North and the Midlands rank joint second, accounting for 11% of the companies included in this year’s Tracker, and the South accounts for 10%.
“This year’s tracker shows the impressive growth rate many Indian businesses are continuing to achieve in the UK,” Mr Chande added. “The UK’s strengths in technology and innovation, financial services and manufacturing offer Indian businesses important opportunities to invest and develop their reach and capabilities.
“As India seeks to capitalise on its growing economic status and the UK looks to reinvigorate its role as a global trading nation, the future relationship between the two countries has the potential to become more substantial than ever over the next few years.”
“The UK remains a highly attractive destination for Indian investors,” said Lakshmi Kaul, Head & Representative – UK, CII. “A record number of Indian companies are now based in the UK, employing nearly 105,000 people, as the country provides an excellent environment for long-term business.
“The most successful Indian businesses look at their UK investments from a long-term perspective and not for short-term gains. As India’s economy continues to grow, Indian companies will increasingly have greater choice over where to invest and the UK must ensure that, beyond Brexit, it remains a leading investment destination. But the foundations for a mutually beneficial relationship between India and the UK are clearly already in place. The two countries have much to offer each other and, by committing to re-forge their historic relationship, they can move forward together towards a prosperous future.”
The event hosted by Grant Thornton saw an awards presentation to the fastest growing companies across sectors:
- Top Employer in the UK – Tata Motors Limited
- Fastest Growing Company (with a minimum turnover of 5m) – TMT Metal Holdings Limited
- Consistently Growing Company from 2014 – Accord Healthcare Limited
- Consistently Growing Company from 2014 – Milpharm Limited
- Consistently Growing Company from 2014- Secure Meters (UK) Limited
- Fastest Growing New Entrant – Dhoot Transmission (UK) Limited
- Fastest Growing Technology Company – Route Mobile (UK) Limited
- Fastest Growing Pharma & Chemical Company – Milpharm Limited
- Fastest Growing Financial Services Company – Union Bank of India (UK) Limited