The end of January brought euphoria for India when the empire struck back. Pundits said the country at last attained true world power. Yes, it is the Tata Group, which won a bid for its European rival, the Corus Group at $12 bn (over Rs. 50,000 cr), the largest ever acquisition by an Indian firm and also the biggest deal ever from an emerging market. India Inc., is on the roll, going by the overseas bids that soared to $21 bn in 2006 compared to $1 bn in 2000. In fact, the jubilation began last year when an Indian-born, Luxembourg-based steel magnate, Lakshmi Mittal, jolted Europe with a $23 bn hostile bid for Arcelor. India Inc., has been on a shopping spree and lots of great acquisitions have taken place in the recent past spanning various industries like pharmaceuticals, information technology, outsourcing and liquor. Unlike in the past, even public sector companies like IOC and ONGC are aggressive. Tata is leading the bandwagon with the acquisition of Tyco, Tetley, Daewoo's Truck business and now Corus. After the Corus deal, Tata Steel will now become a big player in the global steel market.
On
the domestic front, a combination of factors are driving the India Inc., overseas
acquisition drive, including the booming economy, the availability of credit,
the mindset to reach global scale and more importantly India's ability to add
managerial value. The economy is in its fourth successive year of growth of around
8% and the current GDP growth is very encouraging. Besides, India's competitive
edge is its vast and low-cost workforce. Against this backdrop, a recent survey
by the Chicago Council on Foreign Affairs declared that Indians see their
country as second only to the US in its influence over the world. |
