Mega Deals

[Bull]

Indian Industry has witnessed three meda deals being inked in the past few weeks that catapalkuted Indian Companies into the world scene.

TATA bought Corus for $ 12bn fending off CSN from Brazil, and with in two weeks, Vodafone has inked a deal for $ 11 bn to take a controlling stake in Indian mobile operator Hutchisson Essar which is the fourth largest operator in India. Elsewhere Hindalco has takenover Canadian Aluminium maker Novelis.Coke and Rexam are two of its high profile customers.This deal will help Hindalco enter the Fotune 500 group.

Just to recap earler purchases by Indian companies. TATA has led the pack with the buying out of world's second largest tea maker Tetley, Koreas Daewoo CV,and hispano buses in Spain.

Some other companies are following different paths of inroganic growth pourchasing too mnay small companies, like Bharat Forge which has become world's second largest automobile spare parts manufacturer.

Hero honda is rumoured to be in talks with Italian benelli for a buyout. Infosys is looking a t a host of buyouts in the US, Reliance is looking for assets in Africa and central Asia.

All these deals have made India a net exporter of foriegn capital.

 

[Bull]

Major acquisitions this year have been India's largest wind-energy firm, Suzlon Energy, acquiring Belgium's Hansen Transmission International for $324 million. In March, pharmaceuticals giant Ranbaxy also made a large foreign acquisition of $372 million, with the buyout of a 96.8% stake in Romania's Terapia.

The largest-ever acquisition by an India company abroad in the paper-and-pulp industry was made by Ballarpur Industries, which along with JPMorgan acquired a 97.8% stake in Malaysia's Sabah Forest Industries for $261 million.

In the automotive sector, Tata Motors and Mahindra & Mahindra have adopted the M&A strategy to become multinationals. Bharat Forge now derives substantial revenues from its overseas acquisitions. In the chemical industry, Asian Paints, Tata Chemicals, United Phosphorus and GHCL have made acquisitions in Egypt, Romania, the US and the UK.

In the consumer sector, Dabur, Godrej and Tata Tea have made sizable acquisitions. In health care, Dr Reddy's, Ranbaxy, Wockhardt, Nicholas Piramal, Jubilant and Sun Pharma are global names. Tata Coffee acquired US-based Eight O'Clock, which is about 2.5 times its size

 

[HASEEB66]

Major acquisitions this year have been India's largest wind-energy firm, Suzlon Energy, acquiring Belgium's Hansen Transmission International for $324 million. In March, pharmaceuticals giant Ranbaxy also made a large foreign acquisition of $372 million, with the buyout of a 96.8% stake in Romania's Terapia.

The largest-ever acquisition by an India company abroad in the paper-and-pulp industry was made by Ballarpur Industries, which along with JPMorgan acquired a 97.8% stake in Malaysia's Sabah Forest Industries for $261 million.

In the automotive sector, Tata Motors and Mahindra & Mahindra have adopted the M&A strategy to become multinationals. Bharat Forge now derives substantial revenues from its overseas acquisitions. In the chemical industry, Asian Paints, Tata Chemicals, United Phosphorus and GHCL have made acquisitions in Egypt, Romania, the US and the UK.

In the consumer sector, Dabur, Godrej and Tata Tea have made sizable acquisitions. In health care, Dr Reddy's, Ranbaxy, Wockhardt, Nicholas Piramal, Jubilant and Sun Pharma are global names. Tata Coffee acquired US-based Eight O'Clock, which is about 2.5 times its size

WE ALWAYS KNEW SOME INDIAN INDUSTRIES ENJOY LARGE SCALE ECONOMIES OF SCALE...THE STEEL DEALS OF INDIA ARE DUE TO RECESSION THAT IS ABOUT TO COME BACK IN A FEW YEARS...WITH GROWING DEFECIT OF PAYMENTS I DO NOT THINK SO IT WILL BE A GOOD IDEA TO BE A NET EXPORTER OF FOREIGN CAPITAL..THE DEALS THAT WE SEE TODAY WE MAY NOT SEE IN THE FUTURE..AND MOST OF THEM AS TODAY ARE MERGERS NOT TAKE OVERS...BUT THESE DEALS MAY BRING INCOME OF FOREIGN PROFITS MADE BY THESE COMPANIES IN THE FUURE..MY ARGUMENT HAS ALWAYS BEEN ARE THESE MEGA DEALS AS YOU DESCRIBE THEM BRINGING ANY ADVANTAGE TO THE COMMON MAN OF INDIA..INDIANS HAVE ALSO SHOWN MANY DEALS MADE BY MITTAL AS INDIANS ALTHOUGH MITTAL IS BASED IN LONDON..MITTAL HAVE ALSO BEEN HOPING TO TAKE PAKISTAN STEELS MILLS A DEAL WHICH WAS NOT SUCCESFUL DUE TO A CORRUPTION SCANDAL IN THE PSM CAME TO LIMELIGHT...HOWEVER THESE DEALS PROVE EVERYTHING THEMSELVES HOW THE BIG INDIANS ARE MAKING THINGS OUT..ALTHOUGH THEY FACED SOME DISCRIMINATION WHEN THE CHIEF OFANCELOR SAID TO MITTAL WE MAKE GOLD YOU MAKE GARBAGE..IT WILL B VERY TO SEE HOW FAR CAN THESE INDIAN BIG SHOTS GO AND WHAT BENEFIT CAN THEYU BRING FOR THE INDIANS..