INDIA Inc today is a competent partner of the world’s most prominent conglomerates that wish to tap this market. Be it automobiles or energy, retail or real estate, infrastructure or financial services, tie-ups with international players straddle the entire corporate landscape in India.

While these tie-ups have given multinationals an easy entry into the otherwise tough-to-operate Indian terrain, they have also helped Corporate India reinforce its presence in the top echelons of global business. Though global tie-ups are not new for India Inc, the past couple of years have seen a robust growth in their numbers, especially in real estate, retail and financial services sectors.

The real estate market is evolving at a rapid pace in India. With burgeoning volumes and rising prices, real estate developers are working out new strategies to meet project deadlines and stay on top. Large developers like DLF, Ansal API and Indiabulls Real Estate are now tying up with global construction players to ensure timely delivery of projects.

DLF, for instance, has formed a JV with Laing O’Rourke for construction projects. Ansal API has tied up with Malaysia-based UEM Builders and Indiabulls Real Estate is working with Europe-based Strabag SE. This will ensure timely delivery of projects.
Not only do such tie-ups speed up project delivery, but experienced international companies also bring the best of construction techniques, large floor plates and marquee project development skills.

Such tie-ups have helped project execution become the key differentiator between top-notch developers and the so-called fly-by-night operators. A deal with a construction major provides both developers and contractors with skilled manpower and adequate supply of materials. It works well for the construction companies too. While global firms get an entry into the booming Indian real estate market, domestic companies get a pan-India presence, as well as branding, by tying up with projects of top-notch developers.

Retail is the other sector which is going in for tie-ups with international players. This may be attributed to government regulations, which do not allow foreign players to set up direct shop in India. However, one cannot deny the expertise that these established players have in managing back-end retail operations.

For example, the Tata Group tied up with UK-based retailer Tesco for managing its hypermarket discount format, Star Bazaar. Under this arrangement, Tesco will receive a fee for providing its vast retail expertise and technical capability to support Tata’s big-box format.

The Future Group forayed into the insurance business through a JV with the Italy-based Generali Group. Being the largest retailer in the country, Pantaloon Retail has almost 8 million sq feet of retail space. Its large customer base will provide its JV partner with a ready market for the insurance business and help the latter log higher revenues. The parent company will, in turn, earn fees for this arrangement, as it will provide space to its partner to set shop in its stores.

Another retail biggie, Reliance Retail, has tied up with Boots for its beauty and healthcare products, in what can be considered a two-way venture. Being a new player in the tricky business of retail, Boots wanted to pick up the expertise and technical know-how of running a successful retail company from its Indian partner. Further, Reliance felt it required the backing of a strong brand and its experience in a specialised vertical like beauty and healthcare. Similar tie-ups have been done for shoes, toys and apparels as well.

Coming to financial services, the two hot segments of this industry — mutual funds (MFs) and insurance — today flaunt some well-recognised international names. These two sectors have emerged strongly in India. As they enjoy a wide reach in the Indian market, they have become hot partnering favourites with prominent global players.

And it is not just domestic private sector companies that are being eyed by these MNCs. Many public sector enterprises, especially in the MF space, have now entered into foreign JVs to join the tug of war against the private-cum-multinational combine.

While Punjab National Bank (PNB) and SBI Asset Management Company (AMC) have partnered Principal Group and Societe Generale Group, respectively, for quite some time now, others like Bank of Baroda (BoB) and Canara AMCs are the latest members of this growing club. While BoB has now tied up with Pioneer Global AMC, Canara has roped in Robeco Investment Management to strengthen its operations. The foreign collaborators in the private mutual fund space include AXA Investment Managers, Sun Life Asset Management, Prudential Asset Management and BNP Paribas Asset Management.

In the insurance sector, while the lone PSU player Life Insurance Corporation (LIC) continues to rule the roost, most of the private players are operating via foreign JVs. These include Max New York Life, HDFC Standard Life, Tata AIG, Bajaj Allianz, Birla Sun Life and ICICI Prudential, to name a few.

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