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Indian Mergers and Acquisitions: The changing face of Indian Business

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Until upto a couple of years back, the news that Indian companies having acquired American-European entities was very rare. However, this scenario has taken a sudden U turn. Nowadays, news of Indian Companies acquiring a foreign businesses are more common than other way round.

Buoyant Indian Economy, extra cash with Indian corporates, Government policies and newly found dynamism in Indian businessmen have all contributed to this new acquisition trend. Indian companies are now aggressively looking at North American and European markets to spread their wings and become the global players.

The Indian IT and ITES companies already have a strong presence in foreign markets, however, other sectors are also now growing rapidly. The increasing engagement of the Indian companies in the world markets, and particularly in the US, is not only an indication of the maturity reached by Indian Industry but also the extent of their participation in the overall globalization process.

Here are the top 10 acquisitions made by Indian companies worldwide:

Acquirer Target Company Country targeted Deal value ($ ml) Industry
Tata Steel Corus Group plc UK 12,000 Steel
Hindalco Novelis Canada 5,982 Steel
Videocon Daewoo Electronics Corp. Korea 729 Electronics
Dr. Reddy’s Labs Betapharm Germany 597 Pharmaceutical
Suzlon Energy Hansen Group Belgium

565

Energy
HPCL Kenya Petroleum Refinery Ltd. Kenya 500 Oil and Gas
Ranbaxy Labs Terapia SA Romania

324

Pharmaceutical
Tata Steel Natsteel Singapore 293 Steel
Videocon Thomson SA France 290 Electronics
VSNL Teleglobe Canada

239

Telecom

If you calculate top 10 deals itself account for nearly US $ 21,500 million. This is more than double the amount involved in US companies’ acquisition of Indian counterparts.Graphical representation of Indian outbound deals since 2000.

Indian OutBound Deals

Have a look at some of the highlights of Indian Mergers and Acquisitions scenario as it stands (Source: http://ibef.org)

Indian outbound deals, which were valued at US$ 0.7 billion in 2000-01, increased to US$ 4.3 billion in 2005, and further crossed US$ 15 billion-mark in 2006. In fact, 2006 will be remembered in India’s corporate history as a year when Indian companies covered a lot of new ground. They went shopping across the globe and acquired a number of strategically significant companies. This comprised 60 per cent of the total mergers and acquisitions (M&A) activity in India in 2006. And almost 99 per cent of acquisitions were made with cash payments.

Mergers and Acquisitions

The total M&A deals for the year during January-May 2007 have been 287 with a value of US$ 47.37 billion. Of these, the total outbound cross border deals have been 102 with a value of US$ 28.19 billion, representing 59.5 per cent of the total M&A activity in India.

The total M&A deals for the period January-February 2007 have been 102 with a value of US$ 36.8 billion. Of these, the total outbound cross border deals have been 40 with a value of US$ 21 billion.

There were 111 M&A deals with a total value of about US$ 6.12 billion in March and April 2007. Of these, the number of outbound cross border deals was 32 with a value of US$ 3.41 billion.

There were 74 M&A deals with a total value of about US$ 4.37 billion in May 2007. Of these, the number of outbound cross border deals was 30 with a value of US$ 3.79 billion.

The sectors attracting investments by Corporate India include metals, pharmaceuticals, industrial goods, automotive components, beverages, cosmetics and energy in manufacturing; and mobile communications, software and financial services in services, with pharmaceuticals, IT and energy being the prominent ones among these.

It is merry time for Indian corporations!

  1. Jyoti . K. says

    This article was usefulll for my assignment…..thanksssss.

  2. ????? ??? says

    useful info thanx.

  3. Rahul Kumar says

    it is useful.

  4. Yatin Bhandari says

    amazin article helped me a lot in ma assign.

  5. Ramakrishna Myaka says

    its a good one. I liked and enjoyed muck. thanks

  6. engineers says

    Hello,

    I have one short questions, Can you please help me in this?

    For example,

    Parent Company ABC has taken 70% share of Indian company DEF PVT LTD.

    Then is there any strict rule that, Child company (here DEF PVT LTD) must change it’s name & it should be same as Parent company (here ABC).

    Is there any Government Guidelines for this in India?

    Thanks.

    1. kuldeep ugemuge says

      hey
      it is not true that child company always changes his name.What happens in acquisition is that BOD(board of directer ) get changed .New board is appointed by acquirer.so it depends on acquirer company whether to change the name or continue with old name.

  7. Syed Arshad says

    MB Consultancy Services–A global business consulting firm located in Bangalore.
    Email: syed.arshad@live.in

  8. Sameer Saurabh says

    Go INDIA Go.

  9. IMAA says

    More current and uptodate statistics on M&A India are available at:
    http://www.imaa-institute.org/statistics-mergers-acquisitions.html#MergersAcquisitions_India

  10. alka says

    i want to know recent mergers of indian companies of last six months

  11. MIRAL DHIMMAR says

    THANK YOU FOR GIVEN THIS INFORMATION,
    BUT, I REQUIRED A DETAIL LIST OF MERGER & ACQUISITION DURING TIME PERIOD OF JANUARY 2005 TO DECEMBER 2010 WITH DATE, AND MOST IMPORTANCE IS “HOW MUCH PORTION OF THAT COMPANY IN MERGER & ACQUISITION”

  12. maheshwari says

    hello….

    plz can u send me a list of indin mergers and acquisation that took place between 1990 to 2009

  13. KAVIR says

    pls send me list of mergers in INDIA

  14. saraswathy says

    hi..
    can i get a list of domestic indian mergers and acquistions that took place between 2007-09..its really urgent..
    thanks and regards

    saraswathy

  15. Raminder Singh says

    Sir,
    I am MBA student .I have intrest in knowing about various M & A .I want details about some intresting M & A held in India

  16. manjunatha says

    hi, it happy to see merging and acquisition is boosting the country and as my benefit we can get the employment oppertunitys

  17. Sumit Patel says

    hiii , I m a student of MBA & I wants to make career in finance ,for the same seeking a bit knowledge about Mergers and aquisition.In simple english language
    thanksssss

  18. Sumit Patel says

    hello, i want the details of merger of HPCL and Kenya Petroleum Refinery Ltd.

  19. Bhuveneshwari Rathore says

    hiii , i m a student t of Amity Business school wants to make career in finance ,for the same seeking a bit knowledge about Mergers and aquisition.In simple layman language
    thanksssss

  20. neha says

    hello, i want the details of merger of HPCL and Kenya Petroleum Refinery Ltd.

  21. jagadeeshwar says

    hey i need recent mergers and acquisitions in India and also in the world

  22. jagadeeshwar says

    hey i need recent mergers and acquisitions in India

  23. Roshan says

    PLZ Sent me List of Indian Merger & Acquition

  24. Tushar says

    want to acquire an Indian IT company.. can some one give input

  25. Tushar says

    want to aquire an Indian IT company ( non software)

  26. Krina says

    Hellooo…..great to know that India is growing fast in terms of mergers and acquisitions……As I am Masters student, I wanted to know about scenario of mergers and acquisitions in India during crisis period……. And I also wanted to know the name of banks which merged during 2008 and 2009……..Hoping to get a positive reply from you all…..
    Thanking You…….

  27. kanchan says

    IT IS A GREAT FEELING TO SEE INDIA GROWING AND EXPANDING ITS BUSINESSES TREMENDIOUSLY.. HOPE INDIA WILL CARRY ON IT AND BE A CASH COW ONE DAY

  28. sameer parsodkar says

    Hi,
    Mergers & acquisitions r nothing but d business combination that results in creation of new reporting entity formed from d combining parties.

  29. sadanand says

    Can i get info about all mergers n acquisitions that have taken place & which wil take place in future

  30. dixit says

    hi
    i am just doing mba from ptu and my views are that indian mergers and take overs are very important for indian economy

  31. Shravan Singh says

    Hi,
    Being an MHRM student frm MSU i must say this one thing is permanent that is CHANGE. M&A will definately take india on top after some time India definately become NONE TO NEXT.

  32. konchada sagar says

    indian mergers and acquisition is very important concept and it is an activity , it is very usefull for sick industries

  33. ajeet says

    hiiii any body can tell me d website from where i get d latest M & A of indian companies. as a MBA student i’m preparing a project on it.
    thanx

  34. sachin mehta says

    hii… im prepairin an artile on mergers and acquisitions,being a law student this information seems interestin and useful too..
    thanx

  35. URVISH B SHAH says

    BEING A GOOD BUSINESS ECONOMIST ITS REALLY A MATER OF PRIDE THAT OUR CORPORATE SECTOR IS GROWING SMOOTHLY. ACCORDING TO MY ANALYSIS THESE MERGER&ACQISITION SOMEWAY AFFECT OUR INFLATION RATE. BECAUSE BY ACQSING MORE FOREIGN COS.MORE EMPLOYMENT ARE CREATED.AND OUR ECONOMY IS HIGLY DEPAND UPON THE CORPORATE SECTOR.
    BY EMPLOYING MORE PEOPLE PRODUCTION INCREASE IN ORDER TO MET THE DEMAND.THEN OUR POPULATION STARTS CONSUMING MONEY.AND IN THE CURRANT FINANCIAL SENARIO,CONSUMPTION IS MORE IMPORTANT TO BEAT AGAINST THE CRISIS.
    FINALLY, IT IMPROVES OUR OVERALL ECONOMY.

    SHAH URVISH
    M.S.UNIVERSITY
    M.COM (BUSINESS ECONOMICS)

  36. Sunil Verma says

    Hello I am doing MBA From Global Business School Delhi. I would like 2 no abt the mergers and acquisitions in last 3 months.

  37. Amardeep says

    could you plz direct me abt the latest mergers in india and what are the reasons of mergers…..

  38. James says

    Could you please direct me to the data on M&A by Indian PLC’s for the period 2000-08. lm particularly looking for: 1. Name of the acquirer, 2.Announcement date, 3. Nationality of target, 4. Type of payment, 5.Premium paid (if information is available), 6.Friendly or Hostile.

  39. Jayant says

    I need it for last 20 years. Where can I get the data?

    Thanks in advance

  40. Jayant says

    I need data on Cross Borders mergers and acquistions in India. Please let me the source from where I can get this data. Any Govt.reports etc.

  41. roohi says

    as a mba student this merger and acquisition are very useful for me and i need pharmacautical mergers…

  42. Rajesh Kamath says

    Was interesed in knowin the impact of these mergers over the indian economy as a whole?

  43. rameez kola says

    hi guys…. these days india is tremendously going up…but at the same time india is not ready to accept N-deal ….my question to you all is ….why it is happening so…i suggest that india shud accept N-deal and become more powerful in this world

  44. gautham says

    hi,
    i’m doing my MBA it’s very much important to know all recent news and updates in the field of business nd this site is too usefil in providing me such info.

  45. Sohail Khatri says

    can anyone inform me about any Medium Size company acquiring any other company in a developed country.

  46. payal acharya says

    i need information on pharmaceutical mergers.

  47. rahul dussa says

    hi i am being student of BBA. india doing well in business from last few dacade i hope it will become great in acquisition of the any kind of company in whole world

    thnak you

  48. Hiral says

    hey…this article was indeed very informative. Bt still India hv a long way to go..n its surely heading 2wrds it..Bt can u plz guide me regarding the attainment of objectives of any of the top 10 Merger till nw??

  49. Aashish says

    I need info on latest mergers of companies. and problem face by company due to goverment policies

  50. rinchu says

    i need info on failure of mergers and acqisitions due hr problems

  51. pankaj says

    i need mergers and aquisitions

  52. raksha khetan says

    hi.itz gud to see that indians are makin great deals thruout the world.i m preparing for mba this information helped me a lot.

  53. nitin bali says

    hi…being an MBA student its a very knowledgble thing….specially indis diong great in the feild of business…these mergers are not just making the CEO’s of these companies powerful instead it is helping india to become a business ace.

  54. gautam kumar says

    Indian merger & acquisition are going to have a impact on the whole world.Its effectiveness can be sensed and future of Indian market is looking bright.

    Thank you

    1. sathishkumar says

      please list out indian mergers and acquisition companies names and year of merger

  55. ashutosh tripathi says

    hi,this was a great and important information which we get from u and want much more information from you, rather from else so we decide that we want to join your community to get much more info. so plz provide complete information about indian indutry merger and acquistion globalization…………. thanks to you

    1. sathishkumar says

      hai, now i am doing ph.d programme in the topic, so i need some help with you

      first – i need mergers and acquisition gap

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