World Investment Report 2007 says textile sector M&As up
17 Oct '07
2 min read
During 2006, crossborder Mergers and Acquisitions (M&As) soared in Asian textiles and clothing, machinery and chemicals, but declined considerably in food, beverages and tobacco, electrical and electronic equipment and motor vehicles and other transport equipment says the latest World Investment Report 2007 released by United Nations yesterday.
The report states that Greenfield investments also rose significantly in textiles and clothing. It said that the number of greenfield Foreign Direct Investment (FDI) projects for textiles during the years 2002, 2003, 2004, 2005 and 2006 was respectively, 275, 419, 588, 409 and 498.
World Investment Report 2007 clearly points that China is the region's top recipient of FDI in manufacturing, and it is climbing up the value chain. An increasing number of transnational corporations have established regional headquarters in Chinese cities such as Beijing and Shanghai citing IBM relocating its global procurement headquarters to Shenzhen.
Meanwhile for India, the reports says that the country is gaining strength in attracting FDI in traditional manufacturing industries such as steel and petrochemicals. Its FDI inflows in manufacturing rose from $11 billion in the 2004/05 fiscal year to $17 billion in the 2006/07.
Textiles, clothing and leather sector breakdown of cross-border M&As in South, East and South-East Asia for the year 2005 was $100 million as aginst $1720 million in 2006; a record 1624.8 percent growth rate!
In developed countries, cross-border M&As in textiles, clothing and leather sales for 2005 was $2031 million as against $1721 million in 2006. Further, purchases were made to the tune of $4638 million in 2005 that slipped down sharply to $694 million, surprisingly, announces the report.
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