Number of Indian companies investing in the UK on rise despite Brexit: Report

LONDON April 26: The number of Indian companies investing in the UK registered a jump over the previous year despite the ongoing uncertainties around Brexit, according to a new report tracking Indian investments in the UK.

The annual ‘India Meets Britain Tracker’ released in London on Wednesday finds that the number of Indian companies doing business in Britain has increased from 800 in 2018 to 842 in 2019, with a combined turnover of 48 billion pounds.

The report, published by business advisory firm Grant Thornton UK LLP and the Confederation of Indian Industry (CII), revealed a more than doubling of the Corporation Tax paid by these companies to hit 684 million pounds, up from 360 million pounds in the previous year.

“The headline figures in the Tracker are startling. They are testament to the strength and entrepreneurial-ism of the Indian business community, with some companies growing by more than 100 per cent year on year,” UK minister for investment Graham Stuart said at the launch.

The minister pointed out that the figures are likely to see a further jump from next year, when the UK’s Corporation Tax, from the current level of 19 per cent, will drop to 17 per cent.

“We will always welcome Indian investments and we recognise India’s importance as one of our most critical bilateral investors,” he said.

Among some of the other highlight figures from the Tracker, 24 per cent of Indian companies in the UK have at least one woman on their board, up from 19 per cent last year, and they employ an estimated 104,783 people in the country.

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“The report brings out in such graphic terms the contribution that Indian businesses are making to the UK. We all wondered how the Brexit process would have affected the investment sentiment from India and now we have the answer – Indian business retains its positive outlook towards the UK,” said Ruchi Ghanashyam, the Indian High Commissioner to the UK.

The report, now in its sixth year, provides a tracker of the fastest growing Indian companies in the UK with 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.

Among these Accord Healthcare Ltd, Milpharm Ltd and Secure Meters (UK) Ltd have been consistently recorded as fast growing ever since the Tracker was launched in 2014.

Anuj Chande, Partner and Head of South Asia Group at Grant Thornton UK LLP, noted: “Given the continuing uncertainty driven by the UK’s exit from the European Union (EU), it is encouraging to see that Indian investors continue to invest confidently in the UK and in fact, there are now more Indian businesses active in the UK than ever before.”

“The fall in the value of sterling has also had a role to play, making UK assets increasingly attractive to overseas investors. Low rates of corporation tax and the ease of doing business in the UK also remain significant draws.”

Lakshmi Kaul, Head & Representative – UK, CII, added: “As India’s economy continues to grow, Indian companies will increasingly have greater choice over where to invest and the UK must ensure that, beyond Brexit, it remains a leading investment destination.”

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Three companies in this year’s Tracker reported growth of more than 100 per cent, with the fastest growing of these being TMT Metal Holdings Limited, with a growth rate of 649 per cent.

This was followed by Route Mobile (UK) Limited, which reported growth of 189 per cent, and BB (UK) Ltd, which achieved turnover growth of almost 129 per cent.

At an awards ceremony to coincide with the Tracker launch, TMT bagged the Fastest Growing Company award for the year and Route Mobile won the award in the tech category.

Tata Motors Limited was named the Top Employer in the UK, employing over 43,000 people, and Union Bank of India was named the Fastest Growing Financial Services Company.

As in the previous years, technology and telecoms companies dominate the Tracker, accounting for 35 per cent of the fastest-growing companies. Engineering and manufacturing companies are the next in line, accounting for 16 per cent, followed by pharmaceutical and chemicals companies at 15 per cent. – PTI