Indian Investment Crucial For Post-Brexit UK, Shows Report
Nearly 800 Indian companies in the United Kingdom had a combined revenue of £46.4 billion last year, according to the “India Meets Britain Tracker 2018” report.
Indian investment is crucial to post-Brexit growth in the United Kingdom, according to a new report that showed that nearly 800 Indian companies in the country had a combined revenue of £46.4 billion last year. The firms employed nearly 105,000 people and paid £360 million in corporation tax last year, the report, titled “India Meets Britain Tracker 2018,” said.
It also identified 87 fast-growing Indian companies in the United Kingdom, the top five being TMT Metal Holdings Ltd, Wipro Holdings UK Ltd, Piramal Imaging Ltd, Tata Group firm TCNA UK Ltd, and Route Mobile UK Ltd. Of these 87 companies, 22 had been featured in last year’s list.
One-third of the total number of firms also recorded an impressive growth rate of over 50 percent, and over half of the fast-growing firms are based in London. Observing that the British capital is now becoming a leading destination for investment, the report noted that this is a jump from 44 per cent of companies headquartered there in 2017 and 39 per cent in 2016.
The report, in its fifth year now, is released annually by professional services major Grant Thornton with the Confederation of Indian Industry (CII). “The report clearly shows that the UK remains a highly attractive destination for Indian investors,” Anuj Chande, head of South Asia Group at Grant Thornton UK, was quoted as saying by PTI.
Noting that the United Kingdom cannot overlook Indian economy, which is growing to be the third largest in the world by 2030, he added: “Following the Brexit vote, the UK economy is in a period of flux as it looks at how to reinvigorate its role as a global trading nation and seeks to forge new trade deals. The UK must ensure that, beyond Brexit, it (India) remains a leading investment destination.”
The current report highlights not only the 87 Indian companies in the United Kingdom, but also the top Indian employers, with insights into the company’s evolving scale, business activities, locations and their performance that impact the UK economy. The report also observed that 19 per cent of these fast growing Indian companies in the UK had women on their boards.
“The phenomenal growth rate just goes to show that Brexit or no Brexit, the UK remains a very important partner for India,” YK Sinha, the Indian High Commissioner to the UK, was quoted as saying by the news agency.
The report only lists Indian companies which have a minimum two-year track record in the United Kingdom, turnover of more than £5 million and year-on-year revenue growth of at least 10 per cent as per the latest published accounts filed as on Feb. 28 this year. The companies that are on the current list have an an average annual growth rate of 44 per cent, with seven companies seeing turnover growth of more than 100 percent. These companies include TMT Metal Holdings Ltd, Route Mobile (UK) Ltd and Accord Healthcare Ltd. Four of these companies are on the list for the fifth consecutive year – Accord Healthcare Ltd, Glenmark Pharmaceuticals Europe Ltd, Milpharm Ltd, and Secure Meters (UK) Ltd.
The current list heavily features companies in technology and telecom, and pharmaceutical and chemicals sectors prominently, as they make up 20 per cent and 16 per cent of the list, respectively.
According to the report, Indian companies in the United Kingdom saw operating profits of £2.25 billion. “At a time when the UK is forging a future outside of the European Union, it will be looking to strengthen its ties with long-standing partners like India. The Indian economy is forecast to grow substantially and what the UK must focus on is both creating new and maintaining existing investment opportunities as it competes for India’s investment on a global platform,” Shuchita Sonalika, director and head of CII UK, was quoted as saying in the report.