- Friday, April 26, 2024
By: Shubham Ghosh
Indian-owned companies functioning in the UK have hit a record high of 954 this year, registering a significant increase over the previous year, according to the ‘India Meets Britain Tracker 2023′.
The 2023 analysis, released here on Thursday (11) evening, found the combined turnover of Indian-owned companies in Britain has more than doubled – from £19 billion in 2014 to £50.5 billion in 2023.
“We all agree that now we are on the cusp of something sensational and as a British government minister, I want to be a part of that,” said Lord Dominic Johnson, UK minister for investment in the department for business and trade (DBT).
“I want these two free democracies – India and the UK – who believe in the values of liberty and human endeavour to come together to truly, by our common partnership, create a stronger set of economies as one,” he said.
The tracker, released annually by professional services firm Grant Thornton and the Confederation of Indian Industry (CII) to analyse the contribution of Indian businesses to the UK economy, marks its 10th edition this year.
“Nobody seems to know that Indian companies are here in such numbers… I think we can do better with this. There is an opportunity for us to find verticals in which we can connect the two economies for joint opportunities in which Indian businesses come here to leverage opportunities and take finished products back into the Indian economy,” said Indian high commissioner to the UK Vikram Doraiswami.
He also called on UK companies to leverage opportunities on offer in smaller Indian cities and rural areas with a “considerable upsurge in demand”.
With the ninth round of negotiations on an India-UK free trade agreement (FTA) now complete, the latest research found that the number of Indian-owned companies operating in the UK remained at its highest level over the past 12 months despite businesses and economies worldwide still feeling the impact of the pandemic.
“The increase in the number of companies compared to last year alone is remarkable, amidst ongoing operational challenges and rising costs. This increasing presence in the UK is reflective of the growing relationship between the two countries, with the past decade witnessing ever-deepening ties between India and the UK,” said Anuj Chande, head of South Asia Business Group, Grant Thornton UK LLP.
Chande pointed out that bilateral trade between India and the UK has more than doubled from £16.4 billion in 2013 to £35.9 billion in 2022, which shows that the UK continues to have an attractive offering for Indian investors.
“The significant Indian diaspora here is also believed to have encouraged more Indian companies to look at the UK as their natural home,” he added.
The research also identifies the fastest-growing Indian companies in the UK each year, measured by those with a turnover of more than 5 million pounds, year-on-year revenue growth of at least 10 per cent and a minimum two-year track record in the UK.
Of the 954 companies, 79 met the qualifying criteria – more than double that of the 37 in 2022. The average annual revenue growth rate among the Tracker companies also almost doubled compared to last year (38 per cent) to hit a record high of 71 per cent.
The three fastest growing companies in this year’s research by year-on-year revenue growth were: LT Foods International Ltd, growing 807 per cent; St. James Court Taj Hotel, growing 491 per cent; and Reliance Big Entertainment (UK) Private Ltd, growing 364 per cent.
“The CII looks forward to the early conclusion of the UK-India free trade agreement (FTA), which would take this relationship to the next level and bring significant benefits to both sides,” said CII director general Chandrajit Banerjee.
“Indian companies are key participants in the UK economy, both in terms of investment and in terms of trade. The 10th Grant Thornton-CII report shows that the UK remains a top market for Indian businesses, against the backdrop of recent global economic developments, and attests to the close economic partnership between the two countries,” he said, according to a press release from UK Grant Thornton.
While London remains the preferred location in the UK – with 35 of the 79 companies in this year’s Tracker headquartered in the UK capital – as in last year’s research, many Indian-owned companies are starting to look beyond London for growth opportunities and those located outside of the capital now account for more than 50 per cent of the total.
The north of the UK is the most popular region outside of London, with 20 per cent of all tracker companies located there. This year, for the first time, the tracker also includes a company headquartered in Northern Ireland.
Technology, media and telecommunications companies continue to dominate the Tracker, recording an average growth rate of 51 per cent and making up 24 per cent of the fastest growing Indian-owned companies in the UK. This is followed by engineering and manufacturing (23 per cent) and pharmaceuticals and chemicals companies (15 per cent), the press release added.
(With PTI inputs)
