Study of corporate diversification in the Indian context - does theory explain success stories?

Abstract

Abstract The objective of this study is to study corporate diversification in the Indian context, with specific emphasis on ITC Limited. We begin by analyzing the history and evolution of the company over the years, and its diversification moves at various times. We, then subject the company to three different kinds of analytical lenses. The first, deals with viewing the diversification of the firm under the resource-based perspective. We, then analyse the firm from the emerging markets perspective. Finally, we also subject the company to a study with respect to its idiosyncratic risks, viz. its core business which has been rendered weak by non-market forces. Our conclusions draw upon the factors and elements of available academic literature that seem to suitably explain the success of the company, and draw inferences for the future course of the firm.