Crisil Ratings: Indian companies doubling M&A pace since fiscal 2017
Indian companies are doubling down on mergers and acquisitions (M and As) to grow faster and stay competitive, says a new Crisil Ratings report.
Sectors like AI, tech, pharma, and consumer businesses are snapping up deals to get access to new tech, talent, and intellectual property capabilities.
Since fiscal 2017, annual deal volumes have more than doubled, a clear sign that companies want quicker market entry.
Most ratings stable after acquisitions
Crisil looked at 600 major deals across 20 sectors.
Tech-heavy industries use M and As to close technology, talent, and intellectual property capabilities, while cement and metals companies, meanwhile, are pursuing acquisitions for consolidation and to shorten build timelines from four-six years to one-three years.
Stronger balance sheets have helped too. Companies have cut their debt levels since 2017.
While some big debt-funded deals struggled with integration or delays, around three-fourths of ratings were reaffirmed or upgraded following acquisitions, and about 60% of acquirers deleveraged on or ahead of plan within two years.