Indian honchos eyeing global firms going cheap

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Paris, October 3:: As the troubled US and European economies look at Asia with envy, India's top honchos are eyeing acquisition of global firms going cheap amidst a severe financial crisis.

Be it Bharat Forge Chairman Baba N Kalyani or M W Corp Chairman Mukul Kasliwal or TCS Executive Director and Head of Global Affairs Phiroze Vandrevala, they are all scouting for distressed assets in Europe or North America.

With over 10 per cent drop in the Dow Jones Industrial Average and 20 per cent erosion in the Nasdaq index only in the last month, stocks of several of high-flying companies are quoting at a much lower Price-to-Earning (PE) multiples.

"Automobile technology assets are available at 5-6 times EBIDTA (earnings before interest, depreciation, tax, amortisation)," Kalyani told PTI.

India's largest automotive component and forging firm Bharat Forge has already established strong presence in Germany, Sweden, Scotland UK, the USA and China.

Kalyani, Kasliwal, Vandrevala were here early this week along with FICCI Senior Vice President and Managing Director of JK Paper Harsh Pati Singhania, K K Modi and Y K Modi for the business Summit, coinciding with the annual summit between India and the European Union. The summit saw leading members of FICCI and CII building bridges with their counterparts in MEDEF, Paris' elite business chamber.

FICCI Secretary General Amit Mitra felt several European and American companies can be acquired at dirt cheap price.