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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!

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About Arun Prabhudesai

Arun Prabhudesai is founder / chief editor at trak.in. He jumped the Entrepreneurship bandwagon in early 2008 after a long 13 year stint in I.T Industry. You can follow him on twitter @trakin and Facebook. Arun’s Google+ Profile

57 comments

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

  2. useful info thanx.

  3. it is useful.

  4. amazin article helped me a lot in ma assign.

  5. Ramakrishna Myaka

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

  6. 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.

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

  8. Sameer Saurabh

    Go INDIA Go.

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

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

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

  13. pls send me list of mergers in INDIA

  14. 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

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

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

  19. Bhuveneshwari Rathore

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

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

  22. hey i need recent mergers and acquisitions in India

  23. PLZ Sent me List of Indian Merger & Acquition

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

  25. want to aquire an Indian IT company ( non software)

  26. 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. 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

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

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

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

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

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

  38. 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. I need it for last 20 years. Where can I get the data? Thanks in advance

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

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

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

  46. i need information on pharmaceutical mergers.

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

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

  51. i need mergers and aquisitions

  52. raksha khetan

    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. 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. 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

  55. ashutosh tripathi

    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

    • 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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