The accountancy firms have staged a comeback with four making it to the top 10 as against one only in 1999. INDATA is a comprehensive database on the Indian corporate finance market which analyses M&As and private equity deals in the country.

According to the review, the number of M&A deals continue to grow, and deals worth over $4.7 billion have already been announced. This already exceeds the total for the whole of 1999 which was in itself a record year. Deal sizes have continued to grow and 43 deals worth over Rs 100 crore ($22 million) were recorded.

The industry split was surprisingly consistent with 1999 - infrastructure (power, telecom and cement) and IT continuing to lead with 35 per cent and 26 per cent respectively. By numbers, IT represented half the total of 398 recorded deals, over 25 per cent being dotcom acquisitions.

The study throws up certain important highlights. Foreign companies no longer dominate the picture, as there are many more domestic acquirers.Consolidation in the cellular telecom sector quickened following favourable changes in the regulatory framework for the industry. Cement also witnessed consolidation with two further divestments by Indian groups, both to French acquirers.

In the food and FMCG sectors, the Indian small scale sector laws have historically hampered the growth of Indian companies in these sectors and existing companies have to grow through greenfield projects as there are few targets to acquire.

Chemicals and pharmaceuticals have seen little activity but this should change as WTO deadlines for changes in patent laws and lower import tariffs come closer and begin to impact domestic manufacturers.