Strong corporate balance sheets and ample dry private capital (PE) to deploy have contributed to a strong M&A environment.
โWe have seen four consecutive years of growing deal volume and value, with 2022 setting another record year. We are seeing strong M&A activity across all sectors, including financial services, utilities, manufacturing and health caresaid Karan Singh, managing partner at Bain & Company India and an author of the report. Environmental, social and governance (ESG) is a new topic and India is emerging as a hotspot for renewable energy, he added.
In the biggest merger announcement ever made in India, HDFC, the mortgage firm, has signed to merge with HDFC bank in a deal valued at $40 billion.
Indian conglomerates are betting on new growth engines and future earnings sets that offer higher multiples than their traditional businesses through scoping agreements. Adani's $10.5 billion deal for Ambuja cements Y ACC makes it the second largest cement maker in India, according to the report.
torrent pharma purchased skincare player health treatment to strengthen that part of your portfolio. Additionally, many companies are buying online businesses and combining them with their offline presence to create omnichannel offers for consumers. Aditya Birla Fashion and Retail bought majority stakes in multiple brands as part of its effort to create a new house of digital-first brands.
โBalance sheets are strong, there is confidence to make bold bets on new sources of growth, and high-quality assets are available as sellers are willing to exit at current multiples. M&A activity is robust across the board, from conglomerates acquiring new value creation engines to insurgents buying up new segments and acquiring new capabilities,โ he said. Vikram Chandrashekhar, partner Bain & Company. The Indian government's ambitious energy transition policies are opening up business opportunities. Renewable energy deals have experienced significant accelerations as traditional energy companies and conglomerates are building their renewable presence in India, he added.
Also, India is becoming a great alternative for global companies that are eager to diversify their supply chains. The shift is driving deals in areas like active pharmaceutical ingredients, specialty chemicals and contract manufacturing, where private equity players are acquiring serial assets and integrating them to create one big platform, according to the report.
