A look at Indian companies with significant exposure to Canada

The recent diplomatic tensions between India and Canada have drawn attention to various industries and their links to both countries. Both nations have expelled diplomats, and accusations over a high-profile assassination have strained their relationship. This has raised concerns across sectors, particularly those involved in cross-border business. It will be interesting to see which Indian companies have significant revenue exposure to Canada.

As tensions escalate, it is worth examining how much exposure these Indian companies have to Canada. These sectors range from pharmaceuticals to media, and any prolonged tensions could have ripple effects on their operations. Here’s a closer look at these firms and their connections to the Canadian market.

When it comes to exposure to Canada, the pharmaceutical and IT sectors stand out. Many leading companies in these industries have established subsidiaries in Canada, making them directly or indirectly linked to the region.

In the pharmaceutical sector, Sun Pharma includes Canada as part of its global specialty business, Dr. Reddy's operates through a Canadian subsidiary, and Cipla sources 4% of its procurement spend from Canada. Lupin not only markets and distributes its products in Canada but is also expanding there through acquisitions. Similarly, Zydus Lifesciences has a strong presence in the country via its subsidiary. On the IT front, companies like TCS, Infosys, Wipro, HCL Tech, and Tech Mahindra maintain a significant footprint in Canada, operating through subsidiaries or service agreements.

Given the current tensions between India and Canada, the operations of these pharmaceutical and IT companies—whether through exports, subsidiaries, or partnerships—are crucial to consider.

List of companies with large exposure to Canada

(source: tijorifinance)

1. Prime Focus Ltd. (Media & Entertainment)

• Revenue from Canada: 65.10%
• FY24 Sales: ₹3,950 crore

2. Hi-Tech Gears Ltd. (Auto Ancillary)

• Revenue from Canada: 27.70%
• FY24 Sales: ₹1,106 crore

3. Phantom Digital Effects Ltd. (Media & Entertainment)

• Revenue from Canada: 16.80%
• FY24 Sales: ₹89 crore

4. Hinduja Global Solutions Ltd. (Software Services)

• Revenue from Canada: 12%
• FY24 Sales: ₹4,615 crore

5. Dynamic Technologies Ltd. (Pumps)

• Revenue from Canada: 10%
• FY24 Sales: ₹1,429 crore

6. Avanti Feeds Ltd. (FMCG)

• Revenue from Canada: 9%
• FY24 Sales: ₹5,368 crore

7. Axiscades Technologies Ltd. (Software Services)

• Revenue from Canada: 5%
• FY24 Sales: ₹955 crore

8. Shree Tirupati Balajee Agro Trading Company Ltd. (Plastic Products)

• Revenue from Canada: 2.60%
• FY24 Sales: ₹539 crore

This company produces industrial packaging products, with nearly 3% of its revenue sourced from Canada. Although the exposure seems relatively small, any impact might have long-term implications for its trade relationships.

9. Quess Corp Ltd. (Software Services)

• Revenue from Canada: 1.80%
• FY24 Sales: ₹19,100 crore

10. Patels Airtemp India Ltd. (Heavy Machinery)

• Revenue from Canada: 1.40%
• FY24 Sales: ₹370 crore

This company is involved in the manufacturing of heat exchangers and HVAC projects.

11. Kopran Ltd. (Pharmaceuticals)

• Revenue from Canada: 1.20%
• FY24 Sales: ₹614 crore

However, pharmaceuticals are a sensitive and regulated industry, so even small changes in relations might have an outsized impact on supply chains and market access.

The diplomatic fallout between India and Canada has the potential to reverberate across various industries, with the companies mentioned above most vulnerable to economic shocks.