Session timeout

Sorry, your session timed out after a long time of inactivity. Please click OK and Sign In again.


OK

Indian companies have become more cautious when it comes to investing overseas

Indian investors have become more cautious when it comes to making overseas investments, but they will come back to the market if the right opportunities spring up.

Indian investors have become more cautious when it comes to making overseas investments, but they will come back to the market if the right opportunities spring up.

When asked if Indian investors have been scared off from investing overseas after disappointments in Indonesia and Australia, 20 per cent of delegates at Coaltrans India 2014 said they had, adding that they were hoping the Government would subsidise their investment so they can keep the power sector afloat.

Just under a quarter said that the main reason was that a weak rupee has made prices expensive, while 42 per cent believed they haven’t been scared off, but they have been taking a more sensible and careful approach to foreign investment.
Jim Nicholson, Senior Vice President Asia at Argus Media, said: “Clearly the weak rupee has made prices expensive. There’s no argument there.”

However, whilst he feels they are taking a “cautious approach” to foreign investment, he believes that the appetite is still there and that Indian companies will come back if they see any good opportunities.

Mark Gresswell, Chief Analyst at HDR Salva, said: “I think it’s fair to say that Indians investing overseas have been unlucky in a sense. Initially they went to Indonesia and bought some properties there and then the Indonesian Government brought in the HPA royalty scheme, which made it very difficult for Indian investors to transfer price their coal into India. Then they looked at Australian assets as well and purchased some assets there then the Australian Government went and put a carbon tax and mining tax in place.”

He added that they’re probably taking a back step and will come back into the market when they have re-evaluated what’s going to happen.

 

This content is provided by Coaltrans Conferences for informational purposes only, and it reflects the market and industry conditions and presenter’s opinions and affiliations available at the time of the presentation.

Related Insights