The manufacture of certain products requires technology that is not available to the Indian companies. By  BIS Review8/2007  3  acquiring companies abroad, they also acquire advanced manufacturing technologies that further help reduction in the cost of production.
•  Indian companies are also going abroad to obtain a new product mix or to acquire products that will otherwise require huge investments and a long time to manufacture indigenously. •  Deployment of excess production resources or better yield on assets is another driving force.