Indian firms flourish in UK, with revenues on the rise
The number of Indian-owned companies operating in the UK has grown in the past 12 months from 850 to 900, with a corresponding hike in revenues, according to the 2022 ‘India Meets Britain Tracker’ from Grant Thornton.
This year’s Tracker found that Indian-owned firms employed 141,005 staff in Britain, up from 116,046 in 2021. They had combined revenues of £54.4 billion, a rise from £50.8 billion in 2021.
The Tracker also identifies the fastest-growing Indian companies in Britain, measured by those with a turnover of more than £5 million, year-on-year revenue growth of at least 10% and a minimum two-year track record in the UK.
Anuj Chande, Partner and Head of South Asia Business Group, Grant Thornton UK, said: “For 2022, 37 companies met the qualifying criteria, achieving an average growth rate of over 38%. The fastest growth among these was recorded by MSSL (GB) Ltd, part of the Motherson Sumi group, which bagged the Tracker Award of the year for its 248% growth. The other companies to bag the awards for their fast growth included tech firm Prodapt (UK) Ltd, which grew 114%, and Route Mobile (UK) Ltd with 98%.
“Despite ongoing challenges faced by all companies over the past 12 months, our latest research finds that the number of Indian companies operating in the UK has increased and that many continue to grow at a rapid rate, with some recording triple digit growth.”
Most of the fastest-growing companies featuring in the 2022 Tracker are based in London (46%). For the ninth year in a row, technology and telecoms companies dominate the Tracker, accounting for 35% of those who qualified for inclusion. This is followed by the pharmaceuticals and chemicals sector (27%) and engineering and manufacturing (14%).
“While London continues to dominate as the location of choice, for the first time, more of the fastest-growing companies are also starting to be located outside of the city, highlighting the appeal the whole of the UK holds to overseas investors,” said Chande.
Referencing recent trade talks between the UK and Indian governments, he added: “A free trade agreement, once concluded, would confirm the two nations as true partners. It paves the way for an enduring economic relationship that benefits the people of both countries and brings exciting opportunities for businesses in India and the UK for many years to come.”
Grant Thornton analysed data from 900 UK-incorporated limited companies that are owned directly or indirectly, or controlled, by either an Indian-incorporated parent or an Indian citizen resident outside the UK.
Chandrajit Banerjee, a Confederation of Indian Industry (CII) Director, said: “The relationship between the UK and India continues to grow and it is encouraging to see that the number of Indian-owned companies operating in the UK has continued to grow since the last research, despite the disruption caused by the pandemic.
“Following the UK Prime Minister Boris Johnson’s recent visit to India, the two countries can now focus on deepening their relationship further for the future, with the start of negotiations on a free trade agreement signalling long-term intent.”
Commenting on the findings, Lord Grimstone, Minister for Investment in the UK’s Department for International Trade (DIT), said: “India is a very special place, and its growth has been nothing short of remarkable.
“This growing, confident, outward looking India has benefited the world and certainly benefited the UK. Our relationship is defined by our peoples, our mutual investment and mutual trade. In the last five years, Indian investment into the UK has more than quadrupled and we calculate that it supports almost half a million jobs on our shores,” he said, pointing to the ongoing India-UK free trade agreement (FTA) negotiation as “the biggest deal yet to come”.
And Gaitri Issar Kumar, Indian High Commissioner to the UK, commented: “The pandemic has created uniquely challenging economic circumstances over the past two years. Despite this, Indian businesses in the UK have succeeded in expanding their combined turnover and increasing the number of jobs they support.”
- The Tracker, published annually by professional services firm Grant Thornton and the CII, analyses the contribution of Indian businesses to the UK economy. It is now in its ninth edition.