Hyderabad: An international network of corporate finance professionals and firms which focus on cross-border mergers and acquisitions, Globalscope recently held its annual meet in Hyderabad. Fourteen partners of the company, from the European Union (EU), Asia and Africa, met to explore business opportunities in India. Globalscope claims its member firms managed deals worth over €10 billion (Rs57,700 crore) across the world in the last two years and is upbeat on the growing opportunities for arranging funds for companies in the Indian market.
Benedetti wants to draw attention to India, ‘where growth is continuing and consolidating.’
In an interview with Mint, Giuseppe Benedetti of Benedetti, Rossi and Partners of Milan, Italy, and the incoming chairman of Globalscope, said a number of companies wish to take part in the Indian growth story and are looking for investment avenues in the country. Edited excerpts:
What was the focus of Global-scope’s annual meet in India?
We are a network of firms and professional focusing on one particular aspect of corporate finance—mergers and acquisitions. We have companies from nearly 20 countries that include all the important ones in the EU.
We also have partners both from India and China, which are the countries from where most of the economic growth will come in the next decade. We chose to hold this year’s annual conference in India and particularly at Hyderabad, which is the headquarters of our Indian partner—Fieldstone Capital Services Pvt. Ltd. We wanted to bring focus and attention to this country, where growth is continuing and consolidating.
Increasingly, there will be more opportunities for investments both by Indian companies overseas and by non-Indian companies into this country. Such reciprocal flow of investments is in tremendous need of acceleration. International companies coming into India will typically bring in technology, whereas Indian companies would like to get access to foreign markets. The Globalscope annual conference discussed the emerging opportunities for cross-border acquisitions on both sides.
What kind of opportunities do you see emerging in India? What is the size of deals that you would prefer to look at in the country?
Members of Globalscope would have done deals roughly worth over €10 billion in the last two years of our existence. Our focus has been predominantly on the mid-market segment. The average transaction would range from €2 million to €200 million.
The largest deal would be around €1 billion. We would like to continue our focus on mid-market segment in India as we do internationally. However, we are not averse to taking up major deals. Right now, Indian companies are exporting their goods to somebody who owns the brand and puts the price tag. This is a missed opportunity. Indian companies will have to either build or buy brands to ensure higher margins.