By Pawan Lingayat, Vice President, SMC Capitals – Partner of Translink Corporate Finance in India
As India’s economic transformation accelerates, deal activity is intensifying across the board. Cross-border M&A is no longer dominated solely by large conglomerates – mid-market companies, venture-backed firms and private equity funds are now shaping the deal landscape in significant ways.
Outbound M&A: Strategic expansion
Indian companies are pursuing acquisitions abroad to secure supply chains, gain access to new markets, acquire advanced technology, and tap into international R&D ecosystems.
Recent trends include:
- Auto component manufacturers acquiring electric vehicle (EV) design firms in Germany to fast-track innovation.
- Agri-input companies buying distribution assets in Africa to expand market reach.
- Software firms acquiring niche providers in Canada and Eastern Europe to strengthen product capabilities.
Inbound M&A: Manufacturing on the map
Global corporations are increasingly choosing India as a core manufacturing hub. Sectors such as semiconductors, electronics, and clean energy are benefitting from the PLI scheme, a skilled labour force, and a vast domestic market. European and US firms are acquiring Indian assets to serve both local and international supply chains.
Sector spotlights
- Technology and SaaS: Foreign investors are acquiring Indian engineering and data science firms, while Indian companies are targeting overseas consulting and product development businesses.
- Healthcare & Life Sciences: Pharma and biotech companies are expanding global footprints, while diagnostics and medtech are attracting inbound capital.
- EV & Clean Energy: M&A is active across auto suppliers, battery manufacturers, and green hydrogen projects.
- Consumer Goods: FMCG giants are acquiring Indian direct-to-consumer (D2C) brands, while Indian groups are buying niche global brands to diversify portfolios.
- Financial Services – Cross-border deals are emerging in wealth management, asset management, and insurance.
Private equity: The deal engine
Private equity firms are fuelling both inbound and outbound transactions, driving platform buy-and-build strategies and facilitating succession transitions in family-owned businesses.
Risks and realities
Despite the optimism, challenges remain. Regulatory complexity, cultural integration in cross-border contexts, valuation mismatches and execution risks can all affect deal success. Experienced acquirers are mitigating these through phased investments and strong local partnerships.
Five trends to watch
- Growth in Indian acquisitions in North America and Europe in areas such as climate tech, AI and engineering.
- More global corporations entering India’s advanced manufacturing sectors.
- Rising cross-border joint ventures in high-tech industries.
- Increased succession-driven acquisitions of family-run businesses.
- AI and automation influencing M&A strategy and valuations across industries.
India’s M&A market is maturing rapidly, offering compelling opportunities for buyers and sellers alike. Those who act early – and wisely – will be best positioned to benefit from a decade of sustained growth.
Ends.
Translink International AG
