M&A in India in Past Few Years Essay Example for Free

MA in India in Past Few Years Essay Abstract The process of mergers and acquisitions has gained substantial importance in todays corporate world. This process is extensively used for restructuring the business organizations. In India, the concept of mergers and acquisitions was initiated by the government bodies. Some well known financial organizations also took the necessary initiatives to restructure the corporate sector of India by adopting the mergers and acquisitions policies. The Indian economic reform since 1991 has opened up a whole lot of challenges both in the domestic and international spheres. The increased competition in the global market has prompted the Indian companies to go for mergers and acquisitions as an important strategic choice. The trends of mergers and acquisitions in India have changed over the years. The immediate effects of the mergers and acquisitions have also been diverse across the various sectors of the Indian economy. Till recent past, the incidence of Indian entrepreneurs acquiring foreign enterprises was not so common. The situation has undergone a sea change in the last couple of years. Acquisition of foreign companies by the Indian businesses has been the latest trend in the Indian corporate sector. The Indian IT and ITES sectors have already proved their potential in the global market. The other Indian sectors are also following the same trend. The increased participation of the Indian companies in the global corporate sector has further facilitated the merger and acquisition activities in India. The various factors that played their parts in facilitating the mergers and acquisitions in India are favorable government policies, buoyancy in economy, additional liquidity in the corporate sector, and dynamic attitudes of the Indian entrepreneurs are the key factors behind the changing trends of mergers and acquisitions in India. Even though mergers and acquisitions (MA) have been an important element of corporate strategy all over the globe for several decades, research on MAs has not been able to provide conclusive evidence on whether they enhance efficiency or destroy wealth. There is thus an ongoing global debate on the effects of MAs on firms. This article seeks to explore the trends and progress in MAs India. Electronic copy available at: http://ssrn.com/abstract=1618272 MERGER ACQUISITION IN INDIA: AN ANALYTICAL STUDY The phrase mergers and acquisitions (abbreviated MA) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. In business or economics a merger is a combination of two companies into one larger company. Such actions are commonly voluntary and involve stock swap or cash payment to the target. Stock swap is often used as it allows the shareholders of the two companies to share the risk involved in the deal. A merger can resemble a takeover but result in a new company name (often combining the names of the original companies) and in new branding; in some cases, terming the combination a merger rather than an acquisition is done purely for political or marketing reasons. Mergers may be broadly classified in (i) Horizontal mergers: A situation when two or more merging companies manufacture similar product in the same industry. (ii) Vertical mergers: A situation when two or more merging companies work at different stages of manufacture of a same product. (iii) Conglomerate mergers: A situation when two or more merging companies operate in different industries. The word acquisition, also known as a takeover or a buyout, is the buying of one company (the ‘target’) by another. An acquisition may be friendly or hostile. In the former case, the companies cooperate in negotiations; in the latter case, the takeover target is unwilling to be bought or the targets board has no prior knowledge of the offer. Acquisition usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of a larger or longer established company and keep its name for the combined entity. This is known as a reverse takeover. Another type of acquisition is reverse merger, a deal that enables a private company to get publicly listed in a short time period. A reverse merger occurs when a private company that has strong prospects and is eager to raise financing buys a publicly listed shell company, usually one with no business and limited assets. Electronic copy available at: http://ssrn.com/abstract=1618272 Reasons for Merger and Acquisition †¢ Operating synergies: The uniting of two firms improve productivity or cut costs so that the unlevered cash flows of the combined firm exceed the combined unlevered cash flows of the individual firm †¢ A vertical merger between a supplier and a customer, eliminates various coordination and bargaining problems †¢ A horizontal merger between competitors, produces a less competitive product market and cost savings from combining RD facilities and sales forces †¢ Financial synergies: Information and incentive problems may cause cashstarved firms to pass up positive NPV projects, but cash-rich firms to overinvest in negative NPV projects †¢ Conglomerates can use internal capital markets to transfer funds from negative NPV projects to positive NPV projects †¢ †¢ Enhance the flexibility of the organization Reduces bankruptcy risk Objectives In this article an attempt has been made (i) To examine the presence of trends and progress of MAs in Indian corporation. (ii) To analyze year-wise and industry-wise variance in number and amount of MA deals. Hypotheses To cover the above objectives following hypotheses have been formulated: 1. There is no significant difference in number and amount of MA deals in between years and between industries. 2. There is no significant difference between MA progress in manufacturing and service sector Industry-wise Trends of MAs The industry-wise trends in number and amount of MA deals between 2000 and 2007 are presented in the Table 1 and Table 2 and the industry-wise trends and progress of MAs have been analysed on this basis Food and Beverages: India is the worlds second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The Indian food market is estimated at over US$ 182 billion, and accounts for about two thirds of the total Indian retail market. According to industry experts, the market for carbonated drinks in India is worth US$ 1.5 billion while the juice and juice-based drinks market accounts for US$ 0.25 billion. Growing at a rate of 25 per cent, the fruitdrinks category is one of the fastest growing in the beverages market. The Indian food processing industry plays a significant role in diversifaction of agriculture products, generates employment, enhances income of farmers and creates a surplus for export of agro-foods. The important reason of the MA activity initiated in this industry are deregulation, restructuring disinvestment, restructuring by parent companies and presence of foreign players. Textiles Industry: Until the economic liberalization of Indian economy, the India Textile Industry was predominantly unorganized industry. The opening up of Indian economy post 1990s led to a stupendous growth of this industry. India Textile Industry is one of the largest textile industries in the world. Today, Indian economy is largely dependent on textile manufacturing and exports. India earns around 27% of the foreign exchange from exports of textiles. Further, India Textile Industry contributes about 14% of the total industrial production of India. Furthermore, its contribution to the gross domestic product of India is around 3% only. Textile Industry involves around 35 million workers directly and it accounts for 21% of the total employment generated in the economy. However the important reasons for the MAs in these sectors are: growth of power looms and handlooms sector at the cost of mill sector which has ultimately resulted in making them sick and unviable. This has led to an increase in the closure of mills; in addition, continued and persistent use of old plant and machinery has led to low profitability in the mill sector and thereby forcing some of mills to closedowns. Chemicals, Drugs and Pharmaceuticals: Under this category companies operating in the industrial groups of chemicals, drugs, pharmaceutical, cosmetics petrochemicals and rubbers have been taken into account for analyzing the trend and progress. The drug pharmaceutical industry in India meets around 70% of the countrys demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are about 250 large Pharmaceuticals manufacturers and suppliers and about 8000 Small Scale Pharmaceutical Drug Units which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). These bulk drugs and pharmaceuticals manufacturers produce the complete range of pharmaceutical formulations i.e. medicines ready for consumption by patients and about 350 bulk drugs i.e. chemicals having therapeutic value and used for production of pharmaceutical formulations. Owing to a significant increase in Pharmaceuticals exports, Indias USD 3.1 billion pharmaceutical industries are growing at the rate of 14 percent per year. It is one of the largest and most advanced among the developing countries. Even the number of pharmaceuticals exporters, manufacturers and suppliers is increasing tremendously, the factors that contributed to increase in MA activity in these sectors are: Introduction of the process Patent Act in 1970, which required Indian companies to recognize international process patents. This has given an opportunity for the Indian companies to grow. This growth is associated with MAs and the emergence of WTO has brought about fundamental changes in the pharmaceutical industry. Trade-related aspects of intellectual property rights (TRIPS) of WTO require all Indian companies to comply with international patents. This has mainly happened in the form of MAs. Non–metallic Mineral Products: In this sector, cement and ceramics manufacturers are the primary players. The factors responsible for MAs are: before 1999 cement industry faced many problems like liquidity crisis, inadequate expenditure on infrastructure and costs of inputs. South-east Asian crisis brought narrowed profitability resulting to the bigger players withstanding the pressure of lower profitability and smaller and marginal players closing down or merging with big players and trying to appear favorable for a takeover. National Quadrilateral Road Project and State Government Policies to construct the irrigation projects could be other factors responsible for this boom. Basic Metal, Alloy and Steel: This is one of the oldest and traditional industry sectors in India. Companies operating in metals, alloy, steel and related concerns are grouped under this head. The factors contributing to MAs in this sector are: Slowdown of the economy during the year 1996-97, the capital markets, remaining depressed for the past couple of years, drying up sources of investment funds for industry, small and medium corporate finding it difficult to access institutional funds and export growth subjected to competitive pressure from imports. Information Technology and Telecom: Companies operating in the IT, Software, telecom and convergence sector are clubbed in industry, the central government has formed an independent department of information technology. Since the removal of restrictions on foreign capital investment and industrial de-licensing, India’s Telecom industry has shown large growth The Important factors for increasing MAs in this sector are: Consistent efforts were made by the department of telecom and its constituent organizations for upgrading and expanding the telecom networks and services and the Initiation of internet and web based developments and introduction of cell phone in India;. Automobiles and Automobile Ancillaries: Companies operating in automobile sector, locomotives, transport and spares have been included under this head. The Indian transport industry has been gradually playing a catalytic role for producing a wide variety of vehicles, passenger cars. Important factors responsible for an increase in MAs in this sector are: Globilalization is pushing global auto majors to consolidate, to upgrade technology, enlarge product range, access new markets and to cut costs. Competitive pressure and presence of global players have resulted in a number of MAs in this sector. Energy, Power, Gas and Oil: Companies operating in the field of energy, power, gas and oil are included in this group. Important factors responsible for an increase in MAs in this sector are, low rate of growth in power generation depressed the growth rate of industrial production and has necessitated immediate attention of big companies like Reliance Industries and due to unavailability of power and frequent disruptions have given an impetus to MAs in this sector..

Essay on Symbols and Symbolism in Toni Morrisons Beloved :: Toni Morrison Beloved Essays

Symbolism in Beloved Toni Morrison enhances the effectiveness of Beloved with symbolism. This symbolism has a myriad of origins as well as forms. Number symbols come from astrological sources, while characters' names are allusions from ancient Egyptian mythology, the Bible, and African culture. Furthermore, important color symbols are discernible throughout the novel. From the very beginning of Beloved, the number 124 is distinguishable. In fact, it appears as the first character of each book of the novel. As the address of the home where most of the plot takes place, this number is extremely important. According to astrology, the numbers 1, 3, 7, and 22 are "ascribed with magical powers" (Samuels 135). These magical powers are said to be symbols of completion and creation. 124 fits this astrological delineation because the sum of the three digits in the number add up to the aforementioned 7. In addition, a significant association among characters in the novel is in the form of three people -- Sethe, Beloved, and Denver. Secondly, the name of the protagonist of the novel, Sethe, is associated with "one of the major gods of ancient Egypt and the Biblical Seth, who was the child of Adam and Eve" (Samuels 136). This Egyptian god was part man and part animal or bird, which explains the animal imagery surrounding Sethe in the novel. For example, when explaining her secret about Beloved to Paul D., Sethe is described as if she is a circling falcon or bird. Morrison writes, "She just flew...and the hummingbird wings beat on" (163). The name Sethe is also unique as a name for a female slave because it is derived from the names of Egyptian and Biblical males. Morrison uses the name to add to the masculinity of Sethe's character. Sethe's ability to overcome overwhelming tragedies and challenges such as her escape from slavery in Kentucky and the murder of her child identifies her with this quality. Additionally, the name Sixo symbolizes the dehumanization of slaves during the late 19th century. His name, derived from the number 6, implies that white masters didn't consider their slaves with enough respect to recognize them with more than a number. This renaming also symbolizes the power the slaveowners felt by stripping slaves of their individuality. The distinction of color in slavery adds to the color symbolism which pervades Beloved.

International Criminal Court on Prosecution of Serious International Crimes Essay

First adopted in a diplomatic conference in Rome on the year 1998, 17th day of July, the Rome Statute is considered as the main treaty that has estblished the formation of the International Criminal Court (ICC). Officially set into force on the first day of July 2002, the ICC now hadles various cases in different categories of identified international crimes. More so, the ICC now has a pool of its respected members coming from 108 different states and countries across the globe. Although some may argue that the formation of ICC will never be effective in resolving the issues and problems of serious international crimes and that there are countries who doubt the functions of this treaty, it can not be denied that ICC has a huge potential in portraying significant contributions when it comes to handling severe international crimes. For instance, the case of Augusto Pinochet, a long-time dictator in Chile for 17 years, is a serious legal case where the ICC could function in delivering justice to the people who have been victimized by his tyranny. For a certain period of time, Pinochet has been cheating the process of justice despite the extensive efforts exerted by many of the European Ledears, as he is accused of ordering massive killings, tortures and abductions of about a thousand Chileans for him to stay in power for 17 long years. As for this type of case, ICC could make a difference in such a way that it could act as the proper court that would primarily handles international criminal acts like Pinochet’s, say that the efforts of local leaders, as similar to the actions of European legislators to bring Pinochet to justice, is no longer effective to protect the welfare of the people. Thus, ICC could make a difference in such a way that it could serve as the global eye of justice amongst leaders who violate the rules of the law againts massive killing and spreading of violence, which could primarily bring them to prosecution and deliver justice for the people and the country. More so, in times like this where violence and ill driven wars are just around the corner, the fuinctions of ICC could indeed serve a significant difference in bringing peace and order to the prosecution of serious international crimes. Through its given set of rules and laws, the ICC could primarily define and classify the offensive actions of powerful countries, whether these agressions has probable cause or is just subjectively motivated to gather extension of power and gain supremacy. In this case, ICC could contribute to the process of prosecution of serious international crimes, as this mainly provides transparency and uniformity to prosecute individuals who commits crime listed under the international law. From a personal point of view, the establishment and ratification of the ICC is indeed a positive development to further strengthen the stability of international law and community. Apart from its positive connotation in delivering justice to the people and sentencing offenders as well as individuals that violates the crimes under its laws, the ICC could as well be named as the defender of human rights in the global as it generally covers international crimes and human right offenses such as genocide, war crimes, crimes against humanity and crimes of agression. With its specialized function and primarily position in d elivering justice in the international, the ICC could make its own significant contribution in the prosecution of serious international crimes in such a way that it could handle a speedier court proceeding, as it only handles special legal cases which are that of serious international criminal acts. Lastly, the International Criminal Court or the ICC could significantly contribute in the process of prosecution of international crimes through a fair and reliable handling of legal cases, as it is and remains to be an international independent legal court with the support of different countries in the world. More so, the ICC could make a difference in delivering justice in the international crime scene through its credibility and equality as an independent legal entity that represents both the ordinary and powerful people in different countries and states around the globe.

My First Year At Seattle University - 862 Words

During my first year at Seattle University I took an Introduction to Psychology course during winter quarter. My class was a Tuesday/Thursday class in the evening from 6-8. One of my first written assignments from this class was to do a methods comparison paper comparing qualitative and quantitative research methods. The directions for this assignment was to research and compare how these two methods can be used when looking at different research questions. The purpose of this assignment was to introduce us, the students, to different research techniques. By researching qualitative and quantitative methods we were shown how different questions were used for each method. This writing assignment was one of my first experiences comparing and contrasting qualitative and quantitative research. I also looked into the different dimensions of qualitative research methods like Phenomenological research, Grounded theory and Ethnography. From doing this written assignments I was expo sed to many different research questions and when and how to test them, this in turn really set me up for a few years down the line when I was faced with conducting my own study. As this was one of my first written assignments for my Introduction to Psychology class I made an outline for the paper. I approached this assignment by breaking it up into pieces and writing each piece separately and then combining them all to make a whole. My outline was very standard and had anShow MoreRelated Chief Seattle Essay1621 Words   |  7 PagesChief Seattle When stories are told about the American Indian it is usually the Indians that are looked upon as the heathens. They are portrayed as savages who spent most of their time raiding wagon trains and scalping the white settlers just for fun. The media has lead us to believe that the American government was forced to take the land from these savage Indians. We should put the blame where it belongs, on the U.S. Government who lied, cheated, and stole from the Indians forcing many IndianRead MoreMy Graduate Degree Is Not A Simple Matter1102 Words   |  5 Pageseffort in the process. In general, the university expects its graduates to have a certain kind of skill that high school or college graduates may not possess. Over 2300 graduated students have participated in a survey by AGCAS regarding university’s expectation over its graduates, and â€Å"over one third of respondents believe that the university has the main responsibility in preparing them for working life.† As an Electrical Engineering student in Seattle University, I need to develop a coherent understandingRead MoreThe Universe : My Life961 Words   |  4 PagesGrowing up, my parents were young. They had me when they were only teenagers and made an arrangement with my grandparents. Until my parents felt like they could handle me, my grandfather would be my caretaker. He and I would explore the world, learning about plant species, animals, science, and math. We would have outings to the Cascades, hike trails, and learn about the wildlife roaming areas. Summer nights, we would stargaze and learn about the cosmos. We spent years collecting issues of â€Å"SecretsRead MoreThe Universe : My Life966 Words   |  4 PagesGrowing up, my parents were young, they had me when they were only teenagers. They and my Grandparents made plans, till they felt like they could handle me, my Grandfather would be my caretaker. He and I would explore the world, he’d teach me about plant species and anim als, science and math. We would have outings to the Cascades, hike trails and learn about the wildlife that was roamed the areas. During summer nights we would stargaze and learn about the cosmos. We spent years collecting issuesRead MoreMicrosoft Corporation, Innovative And On The Cutting Edge Of Technology1632 Words   |  7 PagesThe city of Seattle is seeking a sponsor for naming rights to the multipurpose arena. The arena serves as the home court for the Seattle Storm of the Women’s National Basketball Association and Seattle University basketball of the NCAA Division I Western Athletic Conference. Seattle was recently awarded an expansion team in the National Basketball Association. Residents of Seattle and surrounding suburbs recently voted to name the franchise the Seattle Splash. The current arena which is a propertyRead MoreSeattle University s Goals And Priorities995 Words   |  4 Pagesgeneral, university expects its graduates to have certain kind of skill and mentality that high school or college graduates may not possess. Over 2300 graduated students have participated in a survey by AGCAS regarding university’s expectation over its graduates, and â€Å"over one third of respondents believe that the university has the main responsibility in preparing them for working life.† As a Seattle University’s student majoring in Electrical Engineering, in order for me to secure my future workingRead MoreDifferent Kinds Of Physical Therapists1399 Words   |  6 Pagesyour career as a physical therapist, you are able to make on average eighty-five thousand dollars a year. This depends on your experience and the work environment. When working as a PT, $37.41 is given hourly for hard dedicated work. Working as a Physical Therapist you could work in anywhere from Medical centers to nursing homes to hospitals to even schools and universities. Schools and Universities don’t need physical therapists as much as they do athleti c trainers. To gain a degree as an athleticRead MoreWhat I Have Been A Nomad Since Birth934 Words   |  4 Pagesbirth. My family and I have moved from one place to another to escape poverty and war in our home countries. We had recently lost my father to the civil war and my mother escaped Ethiopia in fear for the lives of the rest of the family. With the war progressing, we moved to the slums of Nairobi, Kenya in an effort to seek asylum. We dreamed of life away from war and famine, seeking aid in neighboring countries in pursuit of eventually arriving in America. We stayed in Kenya for another 8 years andRead MoreCase Study : The Starbucks Inside Questrom1685 Words   |  7 Pagestraded in Sacramento’s sunshine for Boston’s heavy snowfall for the past four years as an undergraduate at Boston University’s Questrom School of Business concentrating in marketing, information systems, and law. She is also a member of the Kilachand Honor’s College where s he takes additional classes in diverse subjects. On her first day she walked into her lecture scared and lost, but she has grown during the past four years. She is confident, aware of her beliefs, and formed lasting friendships withRead MoreI Am Eternally Grateful For All1099 Words   |  5 PagesIn the past four years of my life, I have encountered many experiences that many people in today’s society, will not be able to experience for themselves. For that I am eternally grateful for all the support I have received for all that I have done. Who can say that they were a Princess for a year and traveled all over the western Wisconsin to represent their town in parades and events? Who can say that when they were 13 years old, they got to travel across the country with their church group and