Topic1-AmartyaGhosh

Here a new ma model has been conceptualized theme

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Unformatted text preview: ated the domestic market and now setting foot in the global markets. Here, a new M&A model has been conceptualized The”Me Today You Tomorrow” Model which is based on AirTel’s M&A activity. Introduction to Indian Corporate World The Indian corporates have come a long way from 1947 when uncertainty reigned to a point where every country in the world would want to do business with the country’s companies. Today, Indian companies are respectable all over, dominate businesses and usually have a smooth takeover process in the global circuit. In recent years, examples of Indian takeover have been in areas of Automobile, Steel, Telecom, IT and to the extent of taking over of East India Company. At the same time, Indian companies have been targets of foreign companies in Healthcare and Telecom. We are here after seeing different phases in the corporate world, which have been described in the next section. Phases in the Indian Corporate World Phase I (1947 – 1991) The post Independence era was characterized by licenses, barriers, and business caught with lots of red tape and delays. However, one thing which did stand out during this period was the rise of conglomerates. Some were established before Independence in form of TATA Sons and some were being formed by entrepreneurs like Dhirubhai Ambani. Also, in 1980s, a small group of people at Bangalore made Infosys, which pioneered the IT revolution in India. Phase II (1991 – 2003) In 1991, the liberalization process was announced which started the emergence of Indian companies and recognition in the world. Not only, the companies were made free from the shackles which held them back both in domestic and international markets but steps were taken Page 3 of 18 to improve infrastructure which further increased their competitiveness. During this time the Telecom sector saw a boom which further increased the competitiveness of the IT and the BPO markets in India. The result of all the development could be seen from the contribution of Indian IT/Software professionals for the solution towards Y2K problem. The world was coming out of recession and was looking towards India and China were 1/3 of world population was living and presented a brilliant opportunity as an emerging market. Phase III (2003 ­ 2008) Indian companies had survived two economic meltdowns and now where looking towards the West to gain more business. Now, the Indian companies had developed enough assets (tangibles like cash and intangibles like reputation) which would help them in attracting foreign interest and make them attractive suitors for some global companies – Arcelor, Jaguar, Corus, etc. Also, during this phase, India as a country suffered setbacks from terrorist activities, political instability and corruption. Phase IV (2008+) This phase is the most recent and most important as Indian companies have come out relatively unharmed from the global meltdown. In fact, M&A activities have again picked up with Telecom player Bharti AirTel making global acquisitions. The b...
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This document was uploaded on 01/14/2014.

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