Sun Pharmaceuticals agreed to buy New York‑listed Organon & Co. for $11.75 billion in late April, marking the largest outbound acquisition by an Indian company in nearly two decades and highlighting a broader surge of cross‑border deals by India Inc, consultancy and reporting show. Companies and analysts say this new wave targets strategic assets and capabilities abroad amid weak domestic investment and easier access to global capital.
Deal highlights
Sun Pharma’s $11.75bn acquisition of Organon is the standout transaction, closing in late April.
Grant Thornton data show 162 Indian companies spent more than $18bn on outbound acquisitions in 2025, up 34% from 2024.
Other recent deals
Tata Motors bought Turin‑based Iveco for $4.4bn, Coforge acquired Silicon Valley AI firm Encora for $2.35bn, and the Bajaj Group purchased a 23% stake in Allianz SE in 2025.
Analysts say many smaller firms are also pursuing greenfield investments and cross‑border buys alongside marquee transactions.
Motivations differ from 2000s
Unlike the early‑2000s trophy‑asset spree, firms now seek operational benefits: market access, brands, technology, R&D, and distribution.
Stronger balance sheets, easier global financing, and supply‑chain protection are driving many buyers, according to industry experts and data firms.
Domestic headwinds
India faces falling foreign portfolio inflows, slowing net FDI, and weak private‑sector investment despite incentives, the country’s chief economic advisor recently noted.
That domestic environment is prompting companies to diversify abroad even as the government urges more local investment.
Strategic and financial trade‑offs
Executives say overseas expansion offers faster-capability building and cheaper industrial land in some markets.
But large cash deals, like Sun Pharma’s all‑cash purchase, carry financial risk, and past purchases such as Tata Steel’s Corus acquisition show cross‑border bets can underperform.
Policy and currency considerations
Free‑trade agreements with the UK, EU, Australia, and others could accelerate outbound deals, analysts say.
Younger corporate heirs living abroad and concerns over long‑term rupee depreciation also encourage holding assets in foreign currency.
Outlook and constraints
Some experts warn geopolitical uncertainty and an energy shock could slow dealmaking in the near term.
Still, analysts and deal‑data providers expect the long‑term trend to continue as Indian companies hedge domestic uncertainty by building foreign bases.
Featured image credits: The Blue Diamond Gallery
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