This preview shows page 1. Sign up to view the full content.
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...
View Full Document
This document was uploaded on 01/14/2014.
- Winter '14