The Globalisation of Indian Business: Cross border Mergers and Acquisitions in Indian Manufacturing
by Beena Saraswathy (Author)
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 this book
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.
Brief contents
1 Introduction 1
1.1 Why firms are crossing borders? 2
1.2 Opportunities and challenges from consolidation 6
1.3 Emerging issues 8
2 Concepts, evolution and policy points 15
2.1 Concepts of mergers and acquisitions 15
2.2 M ergers and acquisitions in history: the case of USA and UK 17
2.3 Government intervention: merger regulations in India 18
2.4 The deal shaping process 23
3 Cross-border deals: extent, nature and structure 28
3.1 An overview of global scenario 28
3.2 Industry-wise intensity of cross-border deals 34
3.3 Nature and significance of Indian deals 37
3.4 F oreign acquisition of Indian firms abroad (overseas acquisitions) 43
3.5 Issues for research 46
4 M&As and technological performance 50
4.1 M&As and innovation creation 50
4.2 Innovation concerns in the competition act 53
4.3 Data and methodology 53
4.4 M ajor observations based on pre- and post-M&As performance 54
4.5 Concluding observations and policy implications 60
5 Production efficiency of firms with mergers and acquisitions 64
5.1 Efficiency generation via consolidation 64
5.2 Data and methodology for measuring efficiency 65
5.3 Empirical estimation results 69
5.4 Profitability and cost as efficiency indicators 73
5.5 Concluding observations and policy implication 77
6 Mergers, competition and concentration 85
6.1 The relationship between mergers and competition 85
6.2 A review of relevant studies 86
6.3 Data and methodology 91
6.4 The results: disappearance, survival and invisibility 92
6.5 Concluding observations 112
7 The post-merger integration: some ignored dimensions 117
7.1 Mergers and acquisitions as a governance issue 118
7.2 I ntegration issues: evidence with an illustrative case study 118
7.3 Conclusion 130
8 Conclusions and policy inferences 134
8.1 Outcome of the study and the Competition Act 139
Bibliography 147
Index 163
Series: Routledge Studies in the Economics of Business and Industry (Book 3)
Hardcover: 180 pages
Publisher: Routledge; 1 edition (October 19, 2017)
Language: English
ISBN-10: 1138740276
ISBN-13: 978-1138740273


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