India-Hungary Investment Relations

Hungarian Investments in India

At one time there were around 25 Indo-Hungarian joint ventures in India, mostly in the area of pharmaceuticals and vacuum technology.˙ With the change of regime in Hungary in 1989-90 and with economic liberalisation and reorientation in both countries since 1991, most of these JVs have faded away or been indigenised. At present there is one India-Hungary JV in India.

Richter Gedeon Rt, the leading pharmaceutical company of Hungary, has invested US $ 20 million in a 51:49 Joint Venture with Indian firm Themis Medicare Ltd., based in Mumbai, to expand production capacity. The Joint Venture started functioning in July 2006 producing intermediates all to be used by Richter Gedeon plants in Hungary.

Indian Investments in Hungary

a)      India's biggest IT and software company Tata Consultancy Services(TCS) has set up a European Software Development Centre(SDC) in Budapest. The Centre was formally inaugurated in August 2001 by the CEO of TCS. TCS plans to invest around $ 100 million in this Centre over the next few years and employ around 500 software engineers and programmers.

b)      Satyam has opened an office in Budapest on the 2nd November 2004.  It has (Aug 06) around 90 employees.

c)      A Calcutta based company˙ M/s Bharat McNally Engineering Ltd acquired in the year 2000, 90% of the equity of˙ a Hungarian company called M/s Eroterv Wagner Biro Ltd., which specialises in handling ash in large plants. The acquisition cost was US $ 500,000. With this acquisition the Indian company is in a position to bid for large projects abroad where ash handling is required.

d)      An Indian company Technocraft Industries( India) Ltd has acquired Danube Knitwear Ltd. In Baja, Hungary.

e)      Sun Pharma acquired the US-based pharmaceutical company Valeant (formerly Alkaloida) in Hungary in August 2005.

f)        Crompton Greaves (CG) purchased in Jul 06 through its Belgian subsidiary Pauwels International two Hungarian companies viz Ganz Transelektro Villamossági Zrt (GTV) and Ganz-Transverticum Kft (TV), for an enterprise value of 35 million Euros. This marked the first major acquisition by Crompton Greaves in Hungary. GTV is in the business of EHV Transformers, Gas Insulated Switchgear (GIS), Rotating Machines and Contracting; and, the associate TV is in the supporting areas of design, erection, commissioning and commercial activity with high-end engineering and substation capabilities.

g)      Thapar group bought (Aug 06) Dunakiliti canning factory  becoming the owner of canning company Dunakiliti Konzervüzem Kft, the biggest and most modern cucumber processing factory in the region. Dunakiliti was bought over through Thapar’s affiliate Global Green Company, purchasing the company from its former owner Intergarden NV. Dunakiliti had nearly Ft 4.5 billion net sales revenue and over Ft 500 million profit in 2005 and has been present on the market in India for nearly 10 years.

h)      Nipuna Services [subsidiary of Indian software company Satyam], announced in Aug 06 plans to open a BPO centre in Hungary providing initial employment to about 100 professionals. Nipuna opted for Hungary because of its multi-linguistic work force.