...www.ccsenet.org/ijef International Journal of Economics and Finance Vol. 2, No. 4; November 2010 Measuring Post Merger and Acquisition Performance: An Investigation of Select Financial Sector Organizations in India Dr. Neena Sinha Associate Professor, University School of Management Studies Guru Gobind Singh Indraprastha University, Kashmere Gate, Delhi, India Tel: 91-98-1805-6810 E-mail: dr_neenasinha@yahoo.com Dr. K.P.Kaushik Professor, National Institute of Financial Management Sector-48, Pali Road, Faridabad-121001, India Tel: 91-93-1236-0874 E-mail: kp_kaushik@hotmail.com Ms. Timcy Chaudhary (Corresponding Author) Research Associate, University School of Management Studies Guru Gobind Singh Indraprastha University, Kashmere Gate, Delhi, India Tel: 91-98-1856-8903 Abstract E-mail: timcy9@gmail.com The present paper examines the impact of mergers and acquisitions on the financial efficiency of the selected financial institutions in India. The analysis consists of two stages. Firstly, by using the ratio analysis approach, we calculate the change in the position of the companies during the period 2000-2008. Secondly, we examine changes in the efficiency of the companies during the pre and post merger periods by using nonparametric Wilcoxon signed rank test. While we found a significant change in the earnings of the shareholders, there is no significant change in liquidity position of the firms. The result of the study indicate that M&A cases in India show...
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...brand leads market share in terms of volume and value in India and has been accorded ‘super brand’ recognition in India. It also has a100% export oriented manufacturing unit of instant tea in the Indian state of Kerala which happens to be the largest such facility outside the US. Here is a brief history of the company: Tata Tea acquired Tetley in the first ever-leveraged buyout (LBO). This largest cross border acquisition by an Indian company made it the world’s 2nd biggest tea company with the combined turnover worth INR2800 – 2900 cr leading to its aggressive growth and worldwide expansion. The merger proved beneficial for Tata Tea as it slowed its main competitor (in India) HLL’s share (Hindustan Lever limited, a Unilever subsidiary), which was gaining a major market share. Tata Tea Before merger: Post merger Scenario: The right moves at the times Though Tata Tea ranks among the smaller of the Tata companies, yet it has been the most internationally active one. It made the world stand up and notice it when it acquired Tetley, a company nearly twice its size, in a risky leveraged buyout in 2000 Its second major highlight was when it acquired superior water maker Energy Brands Inc, USA (Glaceau) in 2006 that was the largest overseas acquisition by an Indian company at that time. It then sold its stake to The Coca-Cola Company nine months later, for almost double of what it had paid netting an impressive profit of over $ 500 million, successfully silencing...
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...Issue 1, pp: (29-39), Month: April - June 2014, Available at: www.paperpublications.org An Analysis of Indian Banking Industry with Special Reference to ICICI Bank Sana Samreen Abstract: The last decade has seen many positive developments in the Indian banking sector. The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. The sector now compares favorably with banking sectors in the region on metrics like growth, profitability and non-performing assets (NPAs). However, improved regulations, innovation, growth and value creation in the sector remains limited to a small part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. India’s banking industry needs to strengthen itself significantly In this paper, I have mainly focused on the overall analysis of the banking industry through framework like Porter’s five forces model. I have also concentrated upon the various developments being done in the industry along with recognizing the upcoming challenges as well as the opportunities to reap the profits even in troubled waters. Keywords: Indian banking industry, Porters five force model, market regulation. I. Introduction The Indian banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified...
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...Repositioning Strategy for Indian Pharmaceutical Companies in Global Context Submitted to PROFESSOR MURALI PATIBANDLA (FACULTY,CORPORATE STRATEGY AND POLICY) Submitted By Ravela Madhurika- 1211132 Tanveer Mohd Ansari-1211151 Contents Introduction .................................................................................................................................................. 3 Global Pharma Industry ............................................................................................................................ 3 Major players of the world pharmaceutical industry ................................................................................... 5 Major Players ............................................................................................................................................ 6 Pfizer Inc................................................................................................................................................ 6 GlaxoSmithKline .................................................................................................................................... 6 Sanofi-Aventis ....................................................................................................................................... 6 Novartis ................................................................................................................................................. 6 Indian Pharma Industry.............
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...employee. This phenomenon occurs to the whole country, causing the wage differential between India and the United States to be quite significant. [pic] [pic] The solution for Infosys’ performance improvement is to move up the “value chain” of software development in order to remain competitive on a global basis. Refer to Exhibit 6, the company plans to move up from software development to project management with higher margin. To implement this strategy successfully, Infosys had to accomplish the following objectives. a) Increase customer penetration b) Increase brand equity c) Increase the amount of fixed price contracts 2. Globalization As a result of different productivity from Indian and American employees, growth of Infosys is not as favorable as of U.S. companies. Infosys is one of those aiming to be more global and is facing constraint causing by productivity of its employees. 3. Hiring and retaining employees Infosys is planning to grow in rapid pace which demands more responsibility from existing employees. The company is facing a challenge to maintain the spirit of its employees while being able to offer and implant the same spirit to the new employees in an increasing base of employees. 4. Risk of incapability to deliver services in highest demand Although Infosys has proven to be a master at managing offshore opportunities due to its highly trained English-speaking technical...
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...INSPECTION DEPARTMENT CENTRAL OFFICE Inspection Department was set up along with the formation of the Reserve Bank of India in 1935. Objectives The objectives of the Department are: To assess in clear terms the achieved and achievable performance of the Offices/branches and Central Office Departments with the available resources. To suggest appropriate improvements so that performance level could be enhanced further. To oversee the overall Audit function and its various mechanisms put in place. To give feedback to the Top Management on the performance of Offices and Central Office Departments. Streams of Inspection in the Bank Presently, the following types of inspections are carried out/co-ordinated by the Inspection Department as per the periodicity indicated against them. • Management Audit & System Inspection • Information System Audit • Snap Audit • Concurrent Audit • Control Self Assessment Audit Management Audit & System Inspection Under the Management Audit and System Inspection (MA & SI), the inspection teams examine, evaluate and report on the adequacy and reliability of the existing systems and follow-up to ensure that laws, regulations, internal policies and procedures are meticulously followed and the work is carried out as per defined procedures and Central Office instructions. Apart...
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...ME PROJECT REPORT | | ON INDIAN LIQUOR INDUSTRY Table of Contents 1. INTRODUCTION…………………………………………………………………….4 2. INDUSTRY OVERVIEW…………………………………………………………..5 3. EVOLUTION OF MARKET STRUCTURE…………………………………..8 4. MARKET PLAYERS AND STRATEGIES…………………………………….10 5. NATURE OF COMPETITION……………………………………………………16 6. ENTRY BARRIERS FOR POTENTIAL ENTRANTS…………………….19 7. CONCLUSION………………………………………………………………………… 21 LIQUOR INDUSTRY IN INDIA INTRODUCTION The Indian alcoholic beverages market is gradually opening up as quantitative restrictions are being lifted, import duties are being lowered and domestic regulations are being simplified. These developments are attracting the attention of foreign players, who are faced with a slowdown in developed markets. According to some recent reports, by 2005, the total supply of liquor in the world will be close to 282 hl but consumption will be only about 198 hl. In such a scenario, India would be an attractive market for international players. An estimated 10 million people consume alcohol in India, out of a population of about 1.2 billion. The liquor industry in India is highly government regulated in terms of constraints on manufacturing, storage as well as distribution. The industry faces threat of prohibition in several states, high taxes, restrictions on advertising, restrictions on inter-state movement, etc. However, the deep-rooted social conditioning against alcohol consumption is gradually starting to...
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...initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various challenges to Korean Air in...
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...pattern, if any, associated with such a change across organizations. As the introduction to the paper we have defined ‘Corporate Identity’, its purpose and elements. In this paper we have limited our case studies to corporate identities that have reflected some kind of a visual change apart from changes in any other element. We have analyzed ten inflexion points ranging from mergers and acquisitions to business re-orientation to changes in organizational culture and how these factors necessitate changes in corporate identity. Based on this we have proposed a model which showcases the growing impact of these factors over time and how the occurrence of World events has intensified the ‘change factors’ which in turn are putting all the more pressure on corporations globally to reconsider their identity. The intensity of these factors would vary from industry to industry, with each industry having a different lifecycle. The model brings out the paradox of shortened lifecycle of corporate identities which itself poses an extraordinary challenge to companies for effectively elongating and managing their identities. Changing ones corporate identity is not only an expensive affair but can also create dissonance in the minds of the stakeholders, if not managed and communicated properly. In order to succeed companies will have to exercise tremendous clarity of thought and understand their purpose of existence. Table of Contents 1. Corporate Identity : Concept and Purpose 2. Corporate v/s product...
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...A PROJECT TO STUDY Acquisition OF TATA AND CORUS 0BY Jigar Gandhi Roll No- 11 PGDM - 4TH semester INTRODUCTION –( MERGERS AND ACQUISITION ) In this changed business paradigm only those organization rule who visualize the possibilities before they appear as plausible. Present Business environment, characterized by the globalization and liberalization, accommodates organization that are coming up with innovative strategies to survive and flourish. Companies in the global economies climate are thriving to each the pinnacle of the successes seeking competitive edge of over their rivals. While the waves liberalization and deregulation have been shaking the corporate shore around the global the domestic organizations are falling prey to the fierce competition and unprecedented challenges carried by this emerging business scenario. The recessionary trend consequents to the wall Street tsunami has made for the organization a maze with no exit . Drowning in the luxury of producing goods only to keep life simple is suicidal, rather an un quenched thirst must always prevailing that makes the quest for the value sustainable. Existence of keen competition with number and volume also made the texture of the competitor stronger shock absorber both finally and strategically creating a wide exposure for the business enterprises to build armour for protecting themselves from the threats lying in and forthcoming from the environment. Thus, organizations are left with...
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...sales have stagnated. HLL has responded to this challenge by studying its shortcomings, identifying failing strategies, and adopting new and innovative methods to re-gain market share. Some of the strategies it has adopted are moving to the low margin mass market, pruning it’s brand portfolio, and strengthening it’s distribution network. One of the key strategies is shift in target segment to the relatively unexplored rural markets. While most MNCs wrote off this segment as difficult to reach and unprofitable, HLL learned from success stories such as that of Nirma and Cavin Care and used it scale up on core competencies to enter and succeed in the market. HLL’s growth has been both organic and inorganic. Acquisitions like that of TOMCO (Tata Oil Mills Company) and mergers like Lakme Lever limited were well thought out with clear targets in mind. Strategies such as these have been responsible for the extensive distribution network that HLL has today. It has strong and well differentiated brands with leading share positions, and its brand portfolio includes both global Unilever brands and local...
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...bank with strong capabilities in M&A, PE & India Entry Strategy Many Services…One Goal MERGERS & ACQUISITIONS INDIA ENTRY STRATEGY PRIVATE EQUITY One of the top ten Investment Bankers and winner of the M&A Atlas Awards – Deal of the Year 2011, ACQ Global Award 2009 for ‘Corporate and M&A Advisory firm of the year-India’ o Co po ate a d & dv so y o t e yea da Multi–dimensional focus, covering all major sectors and industries Current focus with mid market and growing Corporates, while having strong relationships with top business houses in the country E Experienced & S bl M i d Stable Management, l di leading a team of >35 f 35 professionals, 70% of the team averaging 6+ years with Singhi Strong relationship and confidence from existing clients with 60% repeat business and 80% strike rate Live relationship with >250 Corporates, resulting in >800 ve e at o s p w t 50 Co po ates, esu t g 800 completed assignments. CORPORATE RESTRUCTURING DEBT SYNDICATION CORPORATE ADVISORY Global Reach Exclusive Indian Member of “Mergers-Alliance”, a leading international network of independent Investment Banking Firms and Corporate Finance advisory firms offering seamless services on mid-market transactions With the successful closure of more than 90 transactions valued at over Euro 5 billion to its credit Mergers-Alliance is ranked No 19 credit, No. globally by Thomson Financial Table Mergers-Alliance helps us offer clients a global platform, seamless service and enhanced access...
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...the fastest growing sectors. The changing socioeconomic demographics and consumer behavior along with increased frequency of natural calamities and disasters have been the main reasons for the growth of this Industry. Its assets as on 31.03.08 were valued at $185 billion with a total of 250 million policies sold and an employee turnover of 113000 and about 1.2 million agents. There are currently 22 life insurance companies with LIC being the only public company having a market share of almost 50%. ICICI comes in second with 10% followed by HDFC at 6%, SBI at 5%, Bajaj at 4%, Reliance at 4%, Birla at 4%, Max 3%, Tata 3%, Kotak 2%, Met 1% and the rest taking up 10% of the market share. As of 2006 FDI norms the foreign participation of Indian insurance companies is restricted to 26%. All the life insurance companies of India have to comply with the strict regulation laid out by the ‘IRDA’ which is the insurance regulatory board in India set up in 2000. The majority of the population in India is yet to be tapped leaving a huge growth potential for this industry. The insurance industry in India is both service based as well as product based. Risk management and product development are the main highlights of R&D in this industry. The life insurance industry is re shapping the retail distribution channel. The life insurers engage with prospects and customer advice, sell products and select policy holder relationship. The total revenue of Indian life insurance stood at 4.1 lakh crores...
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...Acquisition of ANZ Grindlays by Standard Chartered Bank Banking sector is one of the fastest growing areas in the developing economies like India. M&A is discussed as one of the most useful tool for growth, which has evoked the interest of researchers and scholars. Indian economy has witnessed fast pace of growth post liberalization era and banking is one of them. M&A in banking sector has provided evidences that it is the useful tool for survival of weak banks by merging into larger bank. It is found in our study that small and local banks face difficulty in bearing the impact of global economy therefore, they need support and it is one of the reasons for merger. Some private banks used mergers as a strategic tool for expanding their horizons. This report talks about the acquisition of ANZ Grindlays bank by the Standard Chartered bank. Standard Chartered PLC is a British multinational banking and financial services company headquartered in London. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) across more than 70 countries and employs around 87,000 people. It is a universal bank with operations in consumer, corporate and institutional banking, and treasury services. Despite its UK base, it does not conduct retail banking in the UK, and around 90% of its profits come from Asia, Africa and the Middle East. In 2000, it completed the acquisition of ANZ Grindlays bank in a $1.34 Billion deal. The following...
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... Ardhendu Shekhar Singh AT THE BANK: PRN: 12020941033 Mr. Pradeep Das APRIL 02, 2013 TO JUNE 01, 2013 ACKNOWLEDGEMENT I take this opportunity to convey my gratitude to Mr. Pradeep Das, Executive Director at CreedCap Asia Advisors, for streamlining the summer internship program for me at the firm and for providing the necessary guidance. I would like to express my gratitude to Mr. Vishal Pereira, Director at CreedCap Asia Advisors, for permitting me to accompany and assist him for investors meetings and for providing me guidelines regarding the e-commerce research indicating the correlation between US and Indian private equity trends. I’m thankful to Mr. Geeth Vaz, Senior Associate at CreedCap Asia Advisors, for providing me knowledge on building financial models and also for assessing my work on financial ratio analysis. TABLE OF CONTENTS BRIEF PROFILE OF STUDENT 6 BRIEF PROFILE OF THE PROJECT MENTOR 7 BRIEF PROFILE OF THE ORGANIZATION 8 RESPONSIBILITES ASSIGNED AND METHODOLOGY USED 9 THEORETICAL FRAMEWORK 12 A. Investment Banking 12 A.1....
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