Indian companies are increasingly using mergers and acquisitions (M&A) to expand their operations, enter new markets, and strengthen their competitive positions. Instead of relying only on organic growth, businesses are acquiring established companies to access new customers, technology, talent, and resources.
According to Grant Thornton Bharat’s Annual Dealtracker 2025, India recorded 963 M&A transactions worth approximately $60.2 billion in 2025. This reflects growing interest in strategic acquisitions across technology, manufacturing, healthcare, and financial services.
The trend shows that M&A activity in India is not just to increase size but also to improve capabilities and create long-term business value.
Corporate Consolidation Is Encouraging Indian Companies to Pursue Acquisitions
Corporate consolidation is one of the major reasons behind rising M&A activity in India. Companies are acquiring competitors and related businesses to increase market share, reduce operating costs, and strengthen their industry positions.
For example, JSW Paints acquired a 60.76% stake in Akzo Nobel India in 2025. The deal strengthened JSW’s position in India’s paints industry by giving it access to an established business and wider market presence.
Similarly, Bajaj Finserv acquired Allianz’s 26% stake in its Indian insurance joint ventures for ₹24,180 crore, gaining complete ownership of these businesses.
Such transactions show how companies are using acquisitions to gain greater control, combine resources, and compete more effectively.
Family Business Succession Is Creating New M&A Opportunities
Succession planning is another factor influencing M&A decisions among Indian businesses. Many family-owned companies face challenges when transferring leadership and ownership to the next generation.
Differences in business vision, management preferences, and a lack of interested successors can make transitions difficult. As a result, some businesses consider selling ownership stakes, bringing in strategic investors, or merging with other companies.
For example, the Godrej family completed an ownership restructuring agreement in 2024, dividing the group’s businesses between two family branches. Although it was not a conventional third-party acquisition, it highlights how succession planning can reshape major Indian business groups.
These transitions can create opportunities for investors and companies interested in acquiring established businesses.
Access to AI and New Technology Is Accelerating M&A Activity in India
Technology is changing business operations, making AI, cloud computing, automation and cybersecurity important acquisition priorities.
Developing these capabilities internally can take considerable time and investment. Acquiring technology companies allows businesses to access specialised talent, established products, and technical expertise more quickly.
For example, Capgemini announced its $3.3 billion acquisition of US-based WNS in 2025 to strengthen its business process services and AI-powered transformation capabilities.
Similarly, Blackstone’s investment in Indian AI infrastructure company Neysa highlights growing interest in businesses supporting AI adoption.
These deals demonstrate how companies are using acquisitions to strengthen their digital capabilities and prepare for changing market demands.
Market Expansion Is Encouraging Domestic and Cross-Border Deals
Indian companies are also pursuing acquisitions to enter new markets, reach more customers, and expand internationally. Building operations in a new region can take years, while acquiring an established business provides quicker access to customers, distribution networks, and local expertise.
Cross-border acquisitions are particularly useful for companies seeking international technology, products, and business opportunities.
According to EY, cross-border M&A deal value in India increased by 155% in 2025, reaching $33.2 billion.
For example, Sun Pharmaceutical Industries announced its acquisition of US-based Organon in 2026. The transaction is expected to strengthen Sun Pharma’s global presence and expand its pharmaceutical portfolio.
This shows how acquisitions are helping Indian companies build international businesses and access new growth opportunities.
Private Equity Investment Is Supporting Strategic M&A Deals
Private equity (PE) firms are playing an important role in India’s M&A market by providing capital to businesses looking to expand, restructure, or acquire other companies.
These investors often support businesses with growth potential and help them build larger operations through additional acquisitions. This approach is particularly useful in fragmented industries where combining smaller businesses can create stronger market players.
Grant Thornton Bharat reported that India’s private equity and venture capital activity reached approximately $37 billion across 1,506 transactions in 2025.
Such investments provide businesses with financial support and create opportunities for strategic expansion and consolidation.
Conclusion
M&A activity in India is rising because businesses are looking beyond traditional growth strategies. Corporate consolidation, succession planning, technology adoption, market expansion, and private equity investments are encouraging companies to pursue strategic deals.
Transactions involving JSW Paints, Bajaj Finserv, Capgemini, and Sun Pharma demonstrate how acquisitions can strengthen market positions and create new business opportunities.
However, successful M&A requires careful financial planning, regulatory checks, and effective post-acquisition integration. Companies that align acquisitions with clear business objectives are better positioned to achieve sustainable growth.
FAQs:
1. Why is M&A activity rising in India?
M&A activity is rising as companies seek faster growth, market expansion, new technology, and stronger competitive positions.
2. Which industries are driving M&A activity in India?
Technology, banking, financial services, healthcare, pharmaceuticals, manufacturing, and renewable energy are attracting significant M&A interest.
3. How does succession planning influence M&A deals?
Family businesses pursue mergers, acquisitions, or strategic investments to manage ownership transitions and leadership changes.
