27 July, 2021

Think Big, Go West

With plans to buy out foreign companies, software firms are at the vanguard of the Indian transnational wave

Think Big, Go West

FOR paranoid swadeshis worried about foreign transnationals gobbling up Indian businesses, here's some food for thought. India is about to see its first breed of truly transnational corporations. And they come, no surprises here, from India's computer software business.

Just look at what the Rs 648-crore Delhi-based information technology company, NIIT, has planned for itself. "We intend to acquire a $50 million software company in the US by September next year. Buying that company could cost us up to $100 million. Organic growth alone cannot sustain our pace of growth," says CEO Vijay Thadani. From an initial list of 150 companies, NIIT's shortlist at last count was down to 15. The company plans to pay for this acquisition through internal resources, but if that doesn't suffice, it could always fork out the money through its proposed American Depository Receipts (ADR) issue, which is expected to be in the range of $75 million.

The world in my pocket: NIIT isn't alone. The Bangalore-based Rs 260-crore...

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