Indian companies have periodically surprised global markets by thinking big when the world appeared uneasy. The mid-2000s were one such moment. The benefits of liberalisation were becoming visible, confidence in Indian boardrooms was high, balance sheets were strengthening and global asset prices, still recovering from earlier shocks, offered rare opportunities.
What followed were a series of path-breaking acquisitions that fundamentally altered how Indian capital was perceived.
For the first time, Indian corporates began acquiring product-led businesses, at scale, with global footprints.
Tata Steel’s acquisition of Corus, Tata Motors’ bold purchase of Jaguar Land Rover, Hindalco’s takeover of Novelis, Bharti Airtel’s expansion into Africa through Zain and ONGC Videsh’s overseas energy investments were not merely transactions. They were clear declarations that Indian companies could acquire, operate and transform global businesses across geographies and cycles.
Then came a long pause.
For more than a decade after that phase, Indian outbound M&A was largely tactical rather than transformational. The aftershocks of the global financial crisis, tighter regulation, rising leverage concerns and growing shareholder scrutiny ushered in a far more conservative era.
Corporate priorities shifted decisively towards deleveraging, balance sheet repair, smaller bolt on acquisitions and a sharper domestic focus with incremental expansion.
The memory of over-leveraged transactions, particularly in infrastructure and commodities, made boards deeply cautious.
This mindset was further reinforced by recurring geopolitical tensions, trade disputes, currency volatility and, eventually, the pandemic. Preserving capital became the dominant objective often at the cost of strategic ambition.
The world has changed again.
Today’s environment is undeniably difficult. Supply chains are fragmented, costs remain volatile, capital is expensive and geopolitical risk has become structural rather than episodic.
Predictably, sentiment is pessimistic. Yet this is precisely the kind of environment that has historically produced some of the most successful acquisitions. The reason is straightforward: uncertainty creates dislocation and dislocation creates mispricing.
Across sectors such as pharmaceuticals, specialty chemicals, industrial manufacturing, energy transition and consumer brands, there are high-quality assets with sound fundamentals that are constrained by capital availability, geography or short-term uncertainty.
Private equity has become more selective, particularly in the West, and strategic buyers are cautious. Valuations are not distressed, but they are materially more reasonable than during euphoric cycles. This is where companies with strong balance sheets gain a decisive advantage.
Global experience reinforces this pattern with striking clarity. During commodity downturns, energy companies such as Exxon and Chevron consolidated assets to deepen vertical integration, reduce costs and secure long-term resource positions.
In technology, Microsoft reshaped its growth trajectory through ecosystem building acquisitions such as LinkedIn and GitHub — transactions that were questioned at that time but later became central to its enterprise dominance.
In consumer and media, Disney’s acquisitions of Pixar, Marvel and Lucasfilm transformed it from a traditional studio into an intellectual property-driven global platform. In each case, the deals were executed amid uncertainty and fully appreciated only years later.
In periods like this, strong balance sheets become strategic weapons. Companies with low leverage, predictable cash flows and capital market access can negotiate patiently, structure deals to manage risk, invest after acquisition when competitors are retreating and absorb short-term volatility without compromising long-term strategy. This is how market leadership is typically built — during pauses, not peaks.
A similar pattern is emerging across sectors such as life sciences, where Indian companies are expanding their role in the global supply chain beyond volume-led manufacturing to higher-value products, in their endeavour to further strengthen India’s position as the “pharmacy of the world.”
Over the past three to four years, outbound activity has clearly shifted towards portfolio-led acquisitions, alongside a growing focus on higher-value segments where pricing power is stronger, such as complex generics, biologics and specialty therapies.
These acquisitions enable companies to immediately participate in higher-margin segments, gain access to highly regulated markets and build proximity to end-markets, thereby reducing complexity and risk.
At the same time, they help deepen research and development capabilities through access to advanced technologies, specialised talent and complex product pipelines. Seen in this context, Sun Pharmaceutical Industries’ agreement to acquire US-based Organon & Co. for approximately USD 11.75 billion stands out, not merely for its size, but for its timing and intent.
After years of Indian pharmaceutical companies focusing on portfolio rationalisation and compliance-driven investments, this transaction signals renewed confidence in global expansion through acquisitions. It reflects a strategic shift beyond traditional generics towards branded products, women’s health and biosimilars in attractive global markets.
Every M&A cycle is shaped by courage as much as capital. The companies that redefine industries are rarely those that wait for perfect clarity; they are the ones willing to act decisively amid ambiguity.
If executed with strategic discipline, the next wave of Indian acquisitions could once again reshape corporate India’s global footprint, much as it did two decades ago.
