The Globalisation of Indian Business: Cross border Mergers and Acquisitions in Indian Manufacturing, 1st Edition (Hardback) book cover

The Globalisation of Indian Business

Cross border Mergers and Acquisitions in Indian Manufacturing, 1st Edition

By Beena Saraswathy

Routledge

166 pages | 14 B/W Illus.

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Description

Consolidation activities such as mergers and acquisitions (M&As) have been one of the major strategies adopted by Indian firms to withstand global competition. M&As experienced a substantial increase in value and volume during the post-liberalization era, facilitated by the presence of foreign subsidiaries in the Indian market as well as competitive pressure on domestic firms. The increased foreign investment through M&As brought new dimensions to the fore such as the implications on technological performance, efficiency, and more importantly, competition in the Indian market.

The Globalisation of Indian Business: Cross Border Mergers and Acquisitions in Indian Manufacturing provides an in-depth analysis of these issues, specifically aiming to understand whether the M&As strategies helped the firms to achieve their desired objectives in terms of improvement in technology, efficiency and market power in the context of the increase of M&As in India, using appropriate statistical and econometric techniques.

The book is of additional importance in the context of the recently implemented Competition Act, replacing the thirty year old MRTP Act in India. The new Act aims to maintain competition and protect consumers’ interests without harming that of the producers’. Based on the analysis, broadly, the study cautions the regulators to rethink the efficiency defence argument and become more vigilant on the creation of monopolies. On the other side, it suggests firms should reconsider their post-merger integration strategy since consolidation has not led to a sustainable increase in market share of the surviving firms.

Table of Contents

Contents

List of Tables and Figures

Abbreviations

I

Introduction

1.1

Introduction

1.2

Why Firms are Crossing Borders?

1.3

Opportunities and Challenges from Consolidation

1.4

Emerging issues…

References

Tables and Figures

II

Concepts, Evolution and Policy Points

2.1

Concepts of Mergers and Acquisitions

2.2

Mergers and Acquisitions in History: The Case of USA and UK

2.3

Government Intervention: Merger Regulations in India

2.4

The Deal Shaping Process

References

Tables and Figures

III

Cross-border Deals: Extent, Nature and Structure

3.1

An Overview of Global Scenario

3.2

Industry-wise Intensity of Cross-border Deals

3.3

Nature and Significance of Indian Deals

3.4

Foreign Acquisition of Indian Firms Abroad

3.5

Issues for Research

References

Tables and Figures

IV

M&As and Technological Performance

4.1

M&As and Innovation Creation

4.2

Innovation Concerns in the Competition Act

4.3

Data and Methodology

4.4

Major Observations based on Pre and Post M&As Performance

4.5

Concluding Observations and Policy Implications

V

Production Efficiency of Firms with Mergers and Acquisitions

5.1

Efficiency Generation via Consolidation

5.2

Data and Methodology for Measuring Efficiency

5.3

Empirical Estimation Results

5.4

Profitability and Cost as Efficiency Indicators

5.5

Concluding Observations and Policy Implications

References

Appendix

Tables and Figures

VI

Mergers, Competition and Concentration

6.1

The Relationship between Mergers and Competition

6.2

A Review of Relevant Studies

6.3

Data and Methodology

 

6.4

The Results: Disappearance, Survival and Invisibility

6.5

Concluding Observations

References

Tables and Figures

VII

The Post Merger Integration: Some Ignored Dimensions

7.1

Mergers and Acquisitions as a Governance Issue

7.2

Integration Issues: Evidences with an Illustrative Case Study

7.3

Conclusion

References

Tables and Figures

VIII

Conclusions and Policy Implications

References

Tables and Figures

Bibliography

Index

About the Author

Beena Saraswathy is Assistant Professor at the Institute for Studies in Industrial Development (ISID), New Delhi. She has completed MPhil in Applied Economics and Doctoral Degree in Economics from Centre for Development Studies, Thiruvananthapuram, Kerala (Jawaharlal Nehru University, New Delhi). Before joining ISID, she had been working with Indian Council for Research on International Economic Relations (ICRIER) and Competition Commission of India (CCI) under the Ministry of Corporate Affairs (MCA), Government of India (GOI). Her research interests include market competition, mergers and acquisitions, the pharmaceutical industry, business groups in India and contemporary development issues.

About the Series

Routledge Studies in the Economics of Business and Industry

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Subject Categories

BISAC Subject Codes/Headings:
BUS000000
BUSINESS & ECONOMICS / General
BUS015000
BUSINESS & ECONOMICS / Mergers & Acquisitions
BUS017000
BUSINESS & ECONOMICS / Corporate Finance
BUS027000
BUSINESS & ECONOMICS / Finance
BUS032000
BUSINESS & ECONOMICS / Infrastructure
BUS063000
BUSINESS & ECONOMICS / Strategic Planning
BUS067000
BUSINESS & ECONOMICS / Urban & Regional
BUS069020
BUSINESS & ECONOMICS / International / Economics
BUS070050
BUSINESS & ECONOMICS / Industries / Manufacturing Industries
BUS079000
BUSINESS & ECONOMICS / Government & Business
BUS087000
BUSINESS & ECONOMICS / Production & Operations Management
BUS098000
BUSINESS & ECONOMICS / Knowledge Capital
BUS103000
BUSINESS & ECONOMICS / Organizational Development
BUS104000
BUSINESS & ECONOMICS / Corporate Governance
LAW005000
LAW / Antitrust
LAW014010
LAW / Commercial / International Trade