A new report that analyses the latest trends on investment in and the performance of Indian businesses operating in the UK, reveals that Indian companies remain integral to the long term growth of the East Midlands’ economy.
The India meets Britain Tracker, published by Grant Thornton UK LLP in association with the Confederation of Indian Industry (CII), monitors Indian businesses operating in the UK with an annual revenue growth of 10% or more. It shows that the 87 fastest growing companies achieved an average annual growth rate of 44%, with seven companies seeing turnover growth of more than 100%.
The report shows that uncertainty over the outcomes of Brexit negotiations does not appear to have negatively affected Indian companies’ enthusiasm for the UK as an investment destination, with around 800 Indian companies now operating in the UK.
The report names two East Midlands firms as amongst the UK’s fastest growing Indian companies, as Chris Frostwick, practice leader of Grant Thornton’s East Midlands regional office, explains: “Our Tracker report places Leicester company Dion Global Solutions at number 22 with a 60% growth in turnover, and Jain International Food of Sleaford at number 69, having recorded a 19% growth in turnover.”
Commenting on the new India meets Britain Tracker 2018 report, Dr Nik Kotecha OBE, Chief Executive of Morningside Pharmaceuticals Ltd, which is based in Loughborough, said: “The East Midlands is a fantastic area to do business and it’s not by coincidence that our region is the fastest growing outside of the South East.
“It’s great to see that 10 of the top 50 fastest growing Indian companies in the UK are based in the Midlands. The Tracker’s statistics show the Midlands and the North are now tied as the most popular locations for businesses on the list, after London.”
Last year, Grant Thornton named Dr Kotecha as one of its Faces of a Vibrant Economy, which identifies the UK’s 100 most inspirational and innovative individuals from across the private, not for profit and public sectors.
Dr Kotecha adds: “I was honoured to accompany Prime Minister Theresa May on her first trade mission to India, and during the visit I saw Indian businesses were very interested in two-way investment with the East Midlands and UK as a whole. There is a real appetite for hi-tech exports of products and services from the UK, which was evidenced by the £1.2 billion in trade deals announced following the trip.
“I think this year’s Tracker shows our business ties with India are continuing to grow and this is providing a boost to the economy, as well as jobs for people locally, and tens of thousands nationally.
“Morningside manufactures quality generic and branded medicines for UK hospitals and pharmacies, as well as supplies countries globally through aid agencies. Post-Brexit it’s very important for East Midlands companies to continue developing business relationships with countries outside of the European Union,” he says, “in order to grow export-led trade with the rest of the world.”
Chris Frostwick adds: “Indian companies are going from strength to strength in the UK, with this year’s tracker showing a nearly 60% increase in companies making the list.”
Companies in the technology and telecoms, and pharmaceutics and chemicals sectors feature strongly on this year’s report, making up 20% and 16% of the list respectively. For the first time, this year, companies from the engineering and manufacturing sector came joint second in the number of companies in the Tracker.
Chris continues: “A key factor of Indian companies’ success in the UK is that they have established themselves in growing markets where they have the relevant expertise for example, in the technology and telecoms sector and this year, in particular, the engineering and manufacturing sector.
“The report clearly shows that the UK remains a highly attractive destination for Indian investors.
“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. With India’s growing wealth and increasingly important role on the world stage its position in the Commonwealth is growing, coinciding with the UK’s aims to revitalise trade and investment with Commonwealth countries. The UK cannot overlook the significance of the Indian economy (set to be the third largest in in the world by 2030) and must ensure that, beyond Brexit, it remains a leading investment destination.”
Indian companies and the UK economy
The India meets Britain Tracker report highlights that whilst combined turnover (£46.4bn) and employment numbers (105,000) remained stable year-on-year, appetite for investment has risen. The UK attracted four of the top ten largest European deals, as Indian corporates were able to take advantage of up to a 20% fall in the value of the pound against the rupee since the UK’s vote to leave the EU. Moreover, investment by Indian companies already in the UK has increased, with capital expenditure (capex) rising from £4.25bn in 2017 to £4.69bn this year.
The report also identifies operating profits of £2.25bn for Indian companies operating in the UK and a combined corporation tax contribution of £360 million.
For more about Grant Thornton please go to www.grantthornton.co.uk