Empirical Study of M&a in India
Empirical Study of M&A in India
Submitted By:
Dr. J. M. Kapadia Professor, S.R. Luthra Institute of Management, MTB College Campus, Near Adarsh Society, Athwalines, Surat: 395001 Ph. No: 09374888937 E-mail: kapadia_jimmy@rediffmail.com
Ms. Delnaz Dastoor Assistant Professor, S.R. Luthra Institute of Management, MTB College Campus, Near Adarsh Society, Athwalines, Surat: 395001 Ph. No: 09727157228 E-mail: Delnaz.dastoor@gmail.com
1
Abstract: India’s corporate sector has undergone a sea change during the last two decades. The first wave of this sea change occurred during the early 1990s when the Indian economy moved from being a closed one to an open one by adopting the new industrialization policy in favor of Liberalisation, Privatization and Globalization. The MNCs over the world were eyeing India as a huge market and hence a lot of multinationals stepped into the country to establish their businesses. They brought in the needed technology, expertise, standards, employment and development. But at the same time it increased competition for the domestic firms and forced them to better themselves. It was this period that marked the beginning of amalgamations between companies, more popularly known as Mergers and Acquisitions (M&A). For multinationals it was an easier route to enter into the country and for Indian firms it was one of the key strategies to survive and expand.
This paper tries to study the extent to which Indian companies have utilized this strategic tool of M&As in the past two decades. It tries to show the trend of M&As in India during the past years. It also attempts to highlight which period specifically witnessed higher M&A activity. An attempt is made to know which segments or sectors have more prominently undergone M&As. This study tries to bring out the overall trends with regard to M&A activity in India.
2
Introduction:
In the current scenario of highly competitive globalised markets, it is detrimental for organizations to
Submitted By:
Dr. J. M. Kapadia Professor, S.R. Luthra Institute of Management, MTB College Campus, Near Adarsh Society, Athwalines, Surat: 395001 Ph. No: 09374888937 E-mail: kapadia_jimmy@rediffmail.com
Ms. Delnaz Dastoor Assistant Professor, S.R. Luthra Institute of Management, MTB College Campus, Near Adarsh Society, Athwalines, Surat: 395001 Ph. No: 09727157228 E-mail: Delnaz.dastoor@gmail.com
1
Abstract: India’s corporate sector has undergone a sea change during the last two decades. The first wave of this sea change occurred during the early 1990s when the Indian economy moved from being a closed one to an open one by adopting the new industrialization policy in favor of Liberalisation, Privatization and Globalization. The MNCs over the world were eyeing India as a huge market and hence a lot of multinationals stepped into the country to establish their businesses. They brought in the needed technology, expertise, standards, employment and development. But at the same time it increased competition for the domestic firms and forced them to better themselves. It was this period that marked the beginning of amalgamations between companies, more popularly known as Mergers and Acquisitions (M&A). For multinationals it was an easier route to enter into the country and for Indian firms it was one of the key strategies to survive and expand.
This paper tries to study the extent to which Indian companies have utilized this strategic tool of M&As in the past two decades. It tries to show the trend of M&As in India during the past years. It also attempts to highlight which period specifically witnessed higher M&A activity. An attempt is made to know which segments or sectors have more prominently undergone M&As. This study tries to bring out the overall trends with regard to M&A activity in India.
2
Introduction:
In the current scenario of highly competitive globalised markets, it is detrimental for organizations to
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