Sun Pharma's $11.75bn Organon Deal Boosts Indian Deals

Indian companies are turning abroad as domestic demand softens and they seek technology, brands and secure supply chains. Recent high‑profile deals include Tata Motors’ $4.4 bn purchase of Iveco, Coforge’s $2.35 bn acquisition of Encora and the Bajaj Group’s 23 % stake in Allianz SE.

Private sector investment growth has lagged despite tax cuts and production‑linked subsidies, prompting firms to look overseas for growth. These moves follow a pattern of Indian firms using strong balance sheets to access Western markets and capabilities that would take years to build internally.

Sun Pharmaceuticals agreed to pay $11.75 bn for Organon & Co., a New York‑listed women’s health and biosimilars company. In 2025, 162 Indian companies spent over $18 bn on outbound acquisitions, a 34 % increase year‑on‑year. Sumeet Abrol of Grant Thornton said Indian deal value could exceed $15 bn in the first half of the year.

The Organon purchase marks the largest Indian overseas acquisition in nearly two decades and shows a shift from prestige‑driven buys to strategic purchases for technology, R&D and market access. Companies are financing these deals largely with cash, reflecting confidence in their balance sheets but also increasing exposure to financing risk if cash flows weaken. Analysts note that using cash avoids dilution but raises liquidity concerns if revenues dip.

The trend is bolstered by easier access to global financing and a desire to hedge against weak private investment at home. Upcoming free‑trade agreements with the UK, EU and Australia could lower barriers and encourage more outbound deals.

Watch whether Indian firms begin using equity or hybrid financing for large acquisitions, and how new trade pacts affect deal flow in the second half of 2025. Also monitor if the pace of cash‑funded deals slows as domestic investment conditions evolve. Regulatory approvals in the US and Europe will be a key hurdle for future deals.