**Japanese Companies Solidify Their Long-Term Investment in India**
Japanese firms are establishing a strong foothold in India, according to Sourav Mallik, managing director and deputy chief executive of Kotak Investment Banking. In a recent interview, he highlighted the resurgence of domestic acquirers in India’s mergers and acquisitions (M&A) landscape, even as Japanese investors increase their activity in the market.
Mallik pointed to significant M&A transactions, such as JSW Paints’ acquisition of AkzoNobel, Torrent Group’s purchase of J.B. Chemicals & Pharmaceuticals, and Bajaj Finance’s buyout of Allianz, as evidence of the growing ambitions of Indian business groups. “We are witnessing a robust influx of capital from global investors into India, while domestic capital remains strong and consistent. Indian companies are becoming increasingly active in M&A, and I anticipate that the volume of M&A activity in 2026 will exceed that of 2025,” he stated.
In 2025, Kotak Mahindra Group’s investment banking division led domestic banks in investment banking fees, ranking fourth overall with revenues of $77.4 million from equity, debt, and M&A transactions. Noteworthy deals included KKR’s $1.4 billion sale of JB Chemicals to Torrent Pharma, Bain Capital’s $1.1 billion investment in Manappuram Finance, and Carlyle’s $400 million stake in Roop Automotive.
Mallik emphasized the broad spectrum of deal activity, noting that while larger groups dominate the M&A scene, mid-sized businesses are also presenting numerous opportunities as acquirers or targets. This trend is fueled by business confidence, healthy balance sheets, and the availability of both debt and equity capital.
The motivations behind M&A in India vary, with companies seeking to enter new markets, divest non-core operations, or enhance their market share. Additionally, some first-generation entrepreneurs are considering exits due to succession challenges. However, many established groups, such as the Adani Group, Aditya Birla Group, JSW Group, and Torrent Group, are witnessing the next generation stepping up to lead, resulting in increased M&A activity.
Private equity investors are also playing a significant role in this dynamic landscape, not only facilitating private capital deals but also preparing for future opportunities in innovative ways.
In conclusion, the M&A environment in India is thriving, driven by both domestic and international players, with expectations for continued growth in the coming years.
**FAQ**
**Q: What factors are driving M&A activity in India?**
A: M&A activity in India is driven by companies looking to enter new markets, divest non-core businesses, and enhance their market share, supported by strong business confidence and capital availability.
