New Delhi: In a significant development in the global business landscape, Bharti Enterprises has made headlines with its estimated USD 4 billion deal to acquire a 24.5% stake in BT Group, the UK’s largest broadband and mobile company. This strategic move is part of a broader trend of Indian companies investing in British firms, a trend that has seen several major Indian conglomerates expanding their reach into the UK market.
Bharti Enterprises’ acquisition of BT Group marks the latest milestone in a series of high-profile investments by Indian companies in the UK since the turn of the millennium. This trend reflects a growing interest and confidence among Indian firms in establishing a stronger presence in international markets.
The Tata Group has been at the forefront of this expansion. In February 2000, Tata Tea achieved what was then considered the biggest acquisition in Indian corporate history by purchasing Tetley, a leading global tea brand from Britain, for £271 million. Tetley, known for its iconic TV advertisements featuring the Tetley Tea folk, was a major acquisition for Tata Tea, which was significantly smaller at the time. After a prolonged pursuit that included losing out to venture capitalists initially, Tata Tea’s persistence, led by then Chairman Ratan Tata and Tata Tea Managing Director RK Krishna Kumar, eventually secured the deal.
Following this landmark acquisition, the Tata Group continued to build its global presence. In January 2007, Tata Steel outbid Brazil’s Companhia Siderúrgica Nacional (CSN) to acquire Anglo-Dutch steelmaker Corus Group Plc for USD 12 billion. This acquisition, completed in April 2007, not only elevated Tata Steel to the forefront of the global steel industry but also demonstrated the potential of Indian companies to compete with larger multinational corporations.
In June 2008, Tata Motors further cemented its international ambitions by acquiring British luxury carmaker Jaguar Land Rover from Ford Motor Company for USD 2.3 billion. The all-cash transaction was a significant moment for Tata Motors and was described by Ratan Tata as a “momentous time.” The acquisition was aimed at retaining the unique identities of Jaguar and Land Rover while pursuing their established business plans.
Welspun India Ltd, another major player in this narrative, entered the UK market in July 2006 with its acquisition of an 85% stake in CHT Holdings Ltd, the holding company of Christy, a leading terry towel brand in Britain. The acquisition, valued at Rs 132 crore, allowed Welspun to access the premium Christy brand and the UK and European markets, marking its first major step towards becoming a global home textile company.
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In October 2016, Mahindra & Mahindra made its mark by acquiring the UK-based two-wheeler maker BSA Company for £34 lakh (around Rs 28 crore) through its subsidiary, Classic Legends Pvt Ltd. This acquisition enabled Mahindra to obtain and license the BSA brand for global marketing and distribution of motorcycles.
TVS Motor Company joined the ranks of Indian firms acquiring UK-based companies in April 2020. The Chennai-based company acquired Norton Motorcycles, a prestigious British bike manufacturer, for £16 million in an all-cash deal. This acquisition underscored TVS Motor’s commitment to expanding its footprint in the international motorcycle market.
Bharti Enterprises’ latest acquisition of a stake in BT Group represents not just a significant financial investment but also an extension of the Indian corporate footprint into a major global market. This move is indicative of the growing trend of Indian companies leveraging opportunities abroad to enhance their global presence and diversify their business portfolios.
As Indian companies continue to make their mark in international markets, the acquisition of British firms highlights a strategic shift towards global expansion and competitive positioning. The involvement of major Indian conglomerates in these high-profile acquisitions reflects their growing ambition and capability to play a significant role in the global business arena.
