“18 new Indian companies chose to expand into London this fiscal year”
London continues to be a preferred investment destination for Indian companies with international aspirations, as 18 new companies have chosen to expand to this global business hub so far this fiscal year, said Hemin Bharucha, Director national for India, London & Partners.
London & Partners is London’s economic development agency and the office of the Mayor of London in India. This social enterprise helps Indian companies establish a base in London and also enables London-based companies to do business here.
“There is huge interest and we are seeing an uptrend. More and more Indian companies want to set up shop in London. Typically, companies were in software (mainly SaaS). But in the last two years, we are now seeing companies focusing on cleantech, information technology, life sciences and smart cities,” Bharucha said. Activity area.
From a level above 90%, the share of technology companies has fallen to around 60%. Other areas such as clean energy and life sciences are experiencing considerable growth. He pointed out that of India’s 18 start-ups, up to nine were from the financial and technology business services sector, three from the creative, urban and life sciences sector each. Seven of these companies are from Bengaluru, followed by four from Pune, two from Mumbai and the NCR region each, and one from Hyderabad, Mohali and Chandigarh each.
It should be recalled that India continues to be the second largest FDI investor in the UK and has maintained this position for the third consecutive year.
Asked what drives Indian companies’ interest in expanding into London, Bharucha said three main factors attract Indian companies: customers, access to global finance and global talent.
Regarding recent challenges such as Brexit, the Russian-Ukrainian conflict and the fall in the value of the pound, Bharucha said these issues have all played to the advantage of Indian businesses. “Brexit as an event has not affected the investment interest of Indian companies,” he noted.
The UK economy is expected to enter a painful recession in the fourth quarter of this calendar year which will last until the end of 2023.
Bharucha pointed out that Indians view London as a safe investment destination and pointed out that the UK’s legal system and accounting system are similar to India’s. “Indians are comfortable with British law. Also, when times are tough, the first place they want to invest is London. We have seen a record number of investments coming from India to London in recent years,” he added.
He also said that London & Partners, which has offices in Mumbai and Bengaluru, does not charge any fees for its services. This agency wants to increase its notoriety in India, by letting local companies know that London & Partners wants to support them in their international journey.
Indian start-ups have been one of his main areas of interest in recent years, he noted, adding that several Indian start-ups are interested in internationalizing their business.
Visit of the Mega UK trade delegation
Bharucha said London Deputy Mayor for Business Rajesh Agrawal will lead a large business delegation to India in February next year.
“We will take the delegation through the cities of India. We will welcome like-minded companies to engage with them. London & Partners will hold matchmaking conversations ahead of the delegation’s visit so that when they come they can engage in advanced discussions,” he said. This delegation will seek partners in India and companies with which they can work to distribute their services and products in the country.
August 07, 2022