77 years since India's independence, the influence of Indian businesses on the UK's economy is significant.

Aug. 13, 2024, 2:39 p.m.

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Since India gained independence, a remarkable transformation has occurred: from being ruled by the British to Indian companies playing a key role in driving the UK's economy.

The latest acquisition by an Indian company occurred on Monday when Bharti Enterprises announced their intention to acquire a 24.5% stake in the British telecommunications giant, BT group, valued at 3.2 billion pounds (approximately $4 billion).

Bharti Enterprises has declared their plan to purchase the controlling interest in the British company from Patrick Drahi, its largest shareholder.

But how do Indian businesses influence the UK economy?

Let's examine this in more detail:

Almost 1,000 companies, $1.5 billion in taxes

The UK currently hosts 971 firms owned by Indian entities, according to research by accounting firm Grant Thornton.

Thornton published these findings in the 11th edition of its India meets Britain Tracker, a collaborative project with the Confederation of Indian Industry.

These companies employ 118,430 people in the UK and generate a combined revenue of about $87 billion.

These figures represent a notable increase from 2023, when India had 954 businesses in the UK employing 105,931 individuals and generating a collective revenue of $64 billion.

Furthermore, these firms paid $1.50 billion in corporation tax, surpassing the $1.2 billion recorded in 2023.

According to Grant Thornton, financial services companies constitute six percent of all tracked companies.

This figure was a mere one percent in 2023.

Five of these six financial services companies – India Infrastructure Finance Company UK Ltd, Union Bank of India, State Bank of India (UK), Bank of Baroda UK Ltd and Punjabi National Bank (International Ltd) – are under the ownership of the Indian government.

For the first time, Grant Thornton identified 100 Indian companies that achieved a growth rate exceeding 10 percent.

These rapidly expanding businesses experienced an average revenue increase of 48 percent.

These companies collectively achieved a revenue of $54.86 billion, representing a remarkable 70% surge compared to their 2023 turnover of $32 billion.

Notable examples of Indian-owned companies include St James Court Hotel, a part of the Taj hotel chain and owned by The Indian Hotels Co Ltd (IHTL.NS), and EET fuels, a company concentrating on decarbonisation efforts in the UK, owned by the Indian conglomerate Essar Group.

Several major pharmaceutical companies, such as Dr Reddy's, Cipla, and Glenmark, also operate in the UK. A number of these companies specialize in generic medications and supply medicines to the National Health Service (NHS).

Vedanta Resources, owned by Indian entrepreneur Anil Agarwal, is headquartered in London and was previously listed on the London Stock Exchange.

Furthermore, India is the second largest source of Foreign Direct Investment in the UK.

In 2023, India initiated 118 Foreign Direct Investment (FDI) projects in the UK, generating 8,384 new employment opportunities, according to data from the Department for Business and Trade.

India has emerged as the leading source of Foreign Direct Investment (FDI) in the West Midlands.

The region's strong ties with India have led to the sending of delegations to strengthen existing relationships and attract further investment.

Indian businesses in the UK

Several prominent Indian companies, including Tata Group, Reliance Industries, and Wipro, have made significant acquisitions in the UK. Let's delve into these investments.

Advertisement: Tata Group

This Indian conglomerate owns Jaguar Land Rover, the renowned British luxury car manufacturer. Tata Steel also operates plants in the UK, including the Port Talbot facility.

In 2023, Tata pledged over 4 billion pounds (approximately $5.10 billion) to build an electric car battery factory in the UK.

A Tata Steel sign is visible outside their plant in Scunthorpe, northern England (October 15, 2014). File Image / Reuters Reliance Industries

Reliance New Energy Solar Ltd acquired British battery technology company Faradion Ltd for $135 million in 2021.

In 2019, Reliance Brands Ltd took full ownership of the 259-year-old British toy retailer Hamleys from C Banner International Holdings.

Wipro, a global information technology company, is known for its diverse services, including consulting, technology, and outsourcing.

In 2022, India's Wipro acquired Capco, a management consultancy firm based in the UK, for $1.45 billion.

Advertisement Eicher Motors

The iconic British motorcycle manufacturer Royal Enfield was purchased by Eicher Motors Group in 1994. The company is now headquartered in Chennai.

Established in 1901 in Worcestershire, England, Royal Enfield is the world's oldest continually produced motorcycle brand.

Mahindra & Mahindra LTD

Mahindra and Mahindra Ltd, an Indian multinational conglomerate, revived the dormant BSA Motorcycles brand in 2021 after a nearly 50-year hiatus in production. The company acquired BSA Motorcycles, known for its motorcycles, in 2021.

BSA, or Birmingham Small Arms Company Ltd, was established in Birmingham, England in 1861 and is renowned worldwide for its motorcycles.

TVS Motor Co, an Indian two-wheeler manufacturer, is a prominent player in the global automotive industry.

The automotive group acquired the esteemed British brand Norton in 2020. In fiscal 2023, TVS Motor Co also took a majority stake (70%) in EBCO Ltd, a British company engaged in the production and distribution of electric bicycles.

UK Fintech refers to the financial technology sector in the United Kingdom.

Indian investment firm Wadhawan Global Capital played a key role in securing £32 million in funding for British digital bank Zopa in 2017.

A second home abroad

Many Indians, particularly high-net-worth individuals (HNWIs), are establishing a second residence in the UK.

For instance, billionaire Adar Poonawalla acquired a 25,000 square foot mansion near London's prestigious Hyde Park in 2023 for $176 million.

According to the Financial Times, this was the most expensive home sold in London that year and the second-most expensive property ever sold in the city.

Another billionaire, Ravi Ruia, also purchased a London mansion for $144 million in July 2023.

Ruia acquired the Hanover Lodge mansion, situated on 150 Park Road with views of Regent’s Park, from Russian real estate magnate Andrey Goncharenko, according to Bloomberg.

Adar Poonawalla, the CEO of Serum Institute of India. Source: SII. This purchase was among the largest residential transactions in London in recent years.

Other prominent business figures like Lakshmi Mittal and Neeraj Kanwar also hold properties in London.

“Numerous Indians possess estates and prestigious properties in the heart of London. The city provides Indian high-net-worth individuals with a superior quality of life, a lifestyle for themselves and future generations, excellent connectivity to other global cities, a robust currency, and a sense of familiarity given the significant Indian population there,” Ashwin Chadha, CEO of India Sotheby’s International Realty, explained to Hindustan Times Digital.

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