Home > Popular News > Indian expansion in Hungary

Indian expansion in Hungary

In recent years, Indian companies have invested $1.3 billion in Hungary and employ 8,000 people. About 220 Indian companies are in business, and Tata Consultancy Services is by far the largest of them.

13 January 2012

Indian expansion in Hungary

The Indian economy was growing spectacular compared to itself: 8.5 percent economic growth in 2010 - said Gauri Shankar Gupta, Indian diplomat at the performance of CEU

According to Opten - the company information service, 220 companies operates under Indian control in Hungary but 19 of them are profitable only. (These figures do not include those companies whose ultimate owner is Indian, but some other countries' sister company holds them formally.) The largest Indian company is Branch Office of Tata Consultancy Services, which has European Software Centre in Budapest.

Tata Consultancy Services’ first Global Delivery Center was established at Budapest, Hungary in February 2001.

Tata Consultancy Services’ first Global Delivery Center was established at Budapest, Hungary in February 2001.

Only three companies' revenues exceeds HUF1 billion

At the beginning of last year Tata had 660 employees,this number reached 740 by end of the year. Its revenue has been constantly and strongly growing: it was just over HUF3 billions in 1005, around HUF4 billions in 2007, the turnover reached HUF7.9 billions in 2010. However, it is not true for profit trend, however: the highest result, HUF204 million, was reached in 2007. Tata's profit was only HUF29 millions in 2009 and HUF199 millions in 2010.

The second largest Indian-owned company is Alkaloida Chemical Works in Tiszavasvári.Sun Pharma acquired the plant in 2006 that was formerly owned by ICN and Valeant before. The company generated HUF3.6 billions of revenues and realised HUF2.7 billions of loss in 2010.

Only one more Indian-owned company besides Tata and the Alkaloida, reached over a HUF1 billion turnover in 2010. Rainbow Fashion was founded in 1998 by Indian citizens. The clothing and footwear wholesaler company's revenue exceeded HUF20.1 billion and million pre-tax profit 2 years ago.

Gauri Shankar Gupta is confident that further contacts are formed between the two countries' companies. In general, value of foreign investments by India has been dynamically increasing. In recent years, Indian capital export has increased from the level of $20 billion to $40-50 billions in foreign countries. For example, India has interest in British Jaguar and Land Rover as well.