A study of acquisitions of Indian firms abroad

Abstract

Right from the late 1990s and early part of 2000s, many Indian multinationals started resorting to ‘Overseas Mergers and Acquisitions’ as a means of their expansion and entry into untapped markets. Several firms belonging to diverse sectors became ‘International’ through this means of alliance. Mergers and Acquisitions not only provides a means for the organic growth and expansion but also serves as means of acquiring brands, research labs and manufacturing plants. According to Dealogic – a research firm, there were more than 1000 M&A deals by Indian firms between 2000 and 2008, which is worth US $ 72 billion. Of these, majority of the deals were finalized post 2006. In 2009 alone, Indian M&A deals amounted to a volume of US$21.3 billion and this figure got tripled in 2010 ( US$ 67.2bn).