Indian firms next only to US in London projects

Indian companies are second only to US firms in the number of projects
being executed in London, which is the biggest destination for foreign
direct investment among European cities.

According to Think London, a UK based semi government agency engaged in
promoting the city as an investment destination, the number of projects
executed by Indian companies have increased ten fold in the past 10 years.

"We are working with 19 Indian projects, which have a gross value addition
of 22 million pounds and have created 170 jobs. But the actual number of
Indian projects is much more," said Michael Charlton, chief executive,
Think London.

According to Charlton, the majority of the projects are in the technology
space, followed by financial business and creative fields which includes
animation. "As much as 36 per cent of Indian investments in Europe is
directed to London".

In a survey released today by Think London, 61 per cent of Indian and US
companies having operations in the city said that the return on investments
and revenue growth was the highest for operations based in London than
anywhere any other European city. "Four times as many US and Indian
companies in London than those in other European cities feel that their
return on investment is significantly higher as a result of their presence
in the city," the report said.

Moreover, four out of five Indian and US companies, based in London said
that their revenue growth was much faster than their offices in other
European cities. The survey also found that more than 50 per cent of the
Indian and US companies based in Europe also said in their survey that
their London based offices posted a better revenue growth.

"This is significant because the usual perception is that the cost of
investment in London is high. The survey results imply that the initial
high costs of investments in London is offset by high return on investment
and revenue growth," said Charlton. He also pointed out that between 2007
and 2012, there would be an investment opportunity of $ 80 billion in
London. "Nearly 10 per cent of that will be due to activities related to
the London Olympics. Indian companies can reap large benefits if they
invest in London".