An analysis of mergers in the private corporate sector in India

The liberalised economic policies have exposed Indian industry to several challenges. In response to this, the Indian economy has witnessed a sharp increase in mergers and acquisitions. An attempt has been made in this paper to analyse the significance of such mergers and its characteristics. The study suggests that acceleration of the merger movement in the early 1990s is accompanied by the dominance of mergers between firms belonging to same business group or house with similar product lines. So it is argued that though the merger movement in the early 1990s might have contributed to an increase in product or asset concentration measured on a firm-wise basis, it could not have contributed to an increase in concentration as measured by relative shares of business groups. But, there are signs that mergers between unrelated firms, though numerically less significant, have been gaining ground. This is especially true of mergers involving foreign-owned firms. The participation of foreign-controlled firms in the merger process has increased significantly since 1992-93. However it is evident that mergers contributed significantly to asset-growth in only one fifth of the sample firms studied. Most of these firms mobilised a large share of resources through capital markets, to finance their expansion during 1989-90 to 1994-95. Therefore the study argues that the merger wave in the early 1990s was more a means of internal restructuring rather than an instrument to further product market or asset share. JEL Classification : D43, G34, L41 Key Words: mergers and acquisitions; horizontal merger, vertical merger, conglomeration, private corporate sector, Indi

Financing pattern of Indian corporate sector under liberalisation : with focus on acquiring firms abroad

Indian corporate sector has experienced a paradigm shift over the last two decades with the initiation of certain measures of financial liberalisation. As a result of these policy changes, the ratio of Indian FDI outflows to Indian FDI inflows has increased significantly since 2000. An increasing trend in the purchases of firms or assets abroad is also observed since 2000, for various reasons. Against this background, an attempt has been made in this paper to analyse the financing pattern of Indian corporate sector during 1990-2009. This paper further seeks to identify the pattern of resource mobilisation of Indian firms acquiring firms abroad. Indian private corporate sector mobilised large share of resources through external sources although there is an increasing trend in the share of internal financing since 2000. Borrowings are the major source of external financing. Share of resources mobilised through capital market has sharply declined since mid-1990s. A similar trend is observed in case of the selected industries as well. Indian acquiring firms mobilised large funds through external sources although the share of retained profit was quite substantial unlike in case of the manufacturing sector. They could also consistently raise resources through capital market throughout our study period. However, borrowings constituted the major contributor to external financing. These firms were also raising resources from abroad and therefore we could argue that it is not primarily their financial muscles which enable firms to engage in acquisitions abroad. Revenue foregone through various tax concessions is still found to be a major source of corporate growth during liberalisation period. The paper argues that the pecking order theorem does not seem to be applicable in case of the Indian manufacturing sector. Further, we conclude that, although stock market development is expected to lower the cost of capital for Indian corporations, it has not played a major role as far as the actual resource mobilisation of the Indian manufacturing sector is concerned. Finally, we argue that regulation by the State through measures of corporate governance is important in order to create conditions for a desirable path of growth and development. Key Words: Capital and Ownership Structure; M&As; Corporate Governance. JEL Classification: G32, G34, G3

Exchange rate and export behaviour of India textiles & clothing sector : an enquiry for major destination countries

The paper analyses the role of exchange rate in determining the export behavior of Textiles and Clothing (T&C) Sector. From the panel regression analysis of eight major exporting partner countries of Indian T & C sector, the study found an inverse relationship between the rises in exchange rate and exports. This suggests that the devaluation of Indian rupee has not helped to boost the exports of T&C sector. The findings further indicate the significant role of demand factor in determining the export growth. Key words: exports, exchange rate, prices, & WTO JEL Classification: F13, F32 & F41

Marine fisheries in Kerala - an overview

The state of Kerala, located at the extreme southern narrow strip of the Indian sub-continent is wedged between the Arabian Sea to the west and the Western Ghats to the east. It is lying between 8°18', 12° 48' north latitudes and 74° 52', 77° 22' east longitudes. Kerala coast runs for about 590 km with 190 landing centres spreading over nine coastal districts

Assessment of growth responses of Wistar rats fed with a diet containing composite flour premix

Composite flour technology involves the process of mixing cereals and legumes to facilitate the usage of locally available raw materials to produce high-quality food products economically. The present investigation evaluated the growth responses of a composite flour blend formulated using selected cereals, pulses and oil seed (a total of nine grains) were evaluated in two-month-old growing Wistar rats. The feeding trial was conducted for four weeks after an acclimatization period of five days. Daily feed intake and weekly body weight were recorded and parameters such as weight gain, feed conversion efficiency and digestibility of protein were estimated. A significantly higher average final live weight, weekly weight gain and better feed conversion efficiency (p<0.05) were observed in the treatment group. The observed values of digestibility of protein were 84.74 ± 0.85 % and 65.16 ± 0.89 % respectively for the treatment and control diets. Data were analyzed statistically using Analysis of Variance in SPSS 24 software. The investigation revealed that the formulated composite flour premix promotes growth with good protein digestibility in rats and could be used for nutraceutical fortifications to support human life and good health

Production pattern in the marine fisheries of Kerala

Fisheries play a crucial role in the Kerala economy. Although the coastline is only about one tenth of the coastline of India, landings in Kerala constitute more than 30 pet of the country's total marine fish production. This sector provides the main source of income for about 147900 active fishermen and for almost an equal number engaged in the activities of processing and marketing. Earnings from export of marine production from Kerala have during the past two decades increased considerably. The marine fisheries sector is therefore one of the major concerns of the economic planners in the state of Kerala and the object of A various development programmes

Marine fisheries of the south-west coast of India during 2008

The south-west region comprising the states of Kerala, Karnataka and Goa with a coastline of 994 km and 7.83 lakh fishermen population, had been the most productive and the largest contributor to the country’s total marine fish landings. Marine fish production in this region during the year 2008 has been estimated as 11.11 lakh t, contributing about 34.5% to the all India landing

Marine fisheries of the north-east coast of India during 2009-2010

The states of Odisha and West Bengal constituting the north-east coast of India has a coastline of 638 km. The coastal area is cycloneprone and is worst affected during the south-west monsoon. The total number of marine fish landing centres in north-east coast is 132, of which 73 belonged to Odisha. According to Marine Fisheries Census 2010, there are 3.95 lakh fisherfolk directly engaged in actual fishing, fish seed collection and fishing allied activities in this coast