India Inc embarks on an merger a acquisition spree
The Free Press Journal — December 29, 2004

The year 2004 was the time for acquisitions for India Inc which went on a buying spree, spurred by the quest for globalisation and buoyant on robust market conditions, reports PTI. An urge to offer cost-competitive products both in domestic and international markets and shore-up resources were also the reasons for lapping up overseas companies.

The Tata group was on the forefront of acquisitions with two major deals - snapping up of Tyco Global Network by Videsh Sanchar Nigam Ltd (VSNL) and acquiring Singapore-based NatSteel by Tata Steel Ltd - even as the group subsidiaries like Tata Motors Ltd and Tata Tea Ltd also pitched in with takeovers during the year. Another major buy for the group was the acquisition of South Korea-based Daewoo Commercial Vehicle Co Ltd (DWCV) for Rs 465 crore by Tata Motors Ltd. The acquisition of DWCV, Korea's second biggest heavy truck maker, fell through in March this year.

In a move to strengthen its offerings for the insurance sector, Tata Consultancy Services (TCS) bought over Phoenix Global Solutions (PGS) in May this year for an undisclosed sum. PGS, an insurance company, is a subsidiary of US-based Phoenix Companies Inc. The acquisition, even though not a big ticket one, was in line with its focus to consolidate the strengths developed by TCS in the financial segments, TCS Managing Director and Chief Executive Officer S Ramadorai said.

Compared to the major buys of Tata, Reliance Industries Ltd (RIL) had only one major acquisition - Trevira Gmbh & Co KG, a German speciality polyester firm. In November, Pune-based Kirloskar Group acquired certain assets and businesses of UK-based SPP Pumps Ltd through a group company Kirloskar Brothers Ltd (KBL). SPP Pumps was a part of Thyssen Bornemiscza Group of UK and was making pumps for a variety of segments like construction, irrigation, fire-fighting and water supply and sewage and had recorded a sales revenue of 27 million sterling pounds in 2002.

Apart from Tata Motors, Indian automotive major Mahindra & Mahindra Ltd (M&M) also jumped into the acquisition bandwagon. M&M signed a joint venture with Jiangling Motor Corporation Group (JMCG) of China this month to acquire 80 per cent stake in its subsidiary Jiangling Tractor Company.