The document discusses trends in mergers and acquisitions (M&A) in India. It provides an introduction to M&A and defines key terms like acquisition, merger, and different types of mergers. The document then discusses reasons for M&A like synergy, economies of scale, and cross-selling opportunities. Recent examples of M&A in India are provided like Flipkart acquiring Myntra and Tata Steel acquiring Corus Group. The factors making M&A favorable in India and keys to successful versus unsuccessful M&A are also summarized.

1. MERGER & ACQUISITION:
INDIAN TRENDS
T SANKARAVEL

2. Merger & Acquisition
 Introduction
 Reason for Merger & Acquisition
 Acquisition
 Merger
 Horizontal Merger
 Vertical Merger
 Conglomerate Merger
 Reverse Merger

3. Introduction
 Expand business by internal or external
 Internal: Through buying new Assets,
Establishment of new Products.
 External:
Merger,
Acquisition,
Amalgamation,
Takeovers

4. Reason for Merger & Acquisition
 Synergy
 Tax Benefit
 Economies of Scale
 Operating Economies
 Cross Selling

5. Acquisition
 an act of one enterprise of acquiring, directly
or indirectly of shares, voting rights, assets or
control over the management, of another
enterprise

6. • Number of changes within the organisation.
• The size of organisation changes.
• Ownership also changes.
• Plays a major role on the activities of the
organisation.
• Varies from entity to entity.
• Depends upon the structure of the business.

7. Impact on different segments of business
• Impact on Employees
• Impact on Management
• Impact on Shareholders
• Impact on Competition

8. EXAMPLES OF RECENT M&A
 Flipkart – Myntra
 Ranbaxy – Sun Pharmaceuticals
 TCS – CMC
 Yahoo – Bookpad
 Aditya Birla Minacs – CSP CX

9. HISTORY OF MERGER &
ACQUISITION:
From 1897 – 1902
Merger took place between the firms which were anti-competition
and enjoyed their dominance in the market according to their
productivity in sectors like electricity, railways, etc.
From 1903 – 1905
Most of the mergers which took place during the first phase were
considered as unsuccessful for not being efficient enough to attain
the required competence.
From 1916 – 1940
The mergers which occurred during 1916-1929 were horizontal or
multinational in nature.
Most of these industries were the manufacturers of metals,
automobile tools, food commodities, chemicals, etc

10. From 1965 – 1970
During this phase the bidding companies were small in size and
fiscal strength than the target companies. These kinds of mergers
were sponsored by equities, thereby eliminating the roles of banks
which they actively played in investment activities earlier.
From 1981 – 1989
This phase saw the acquisition of the companies which were much
bigger in size as compared to the firms in previous phases.
Industries like oil and gas, pharmaceuticals, banking, aviation
combined their business with their national and international
counterparts.
From 1992 till present
This period was stimulated by globalization, upsurge in stock
market boom. Major mergers were seen taking place between
telecom and banking giants out of which most were sponsored by
equities.
There was a change in the attitude of the industrialists, who opted
for mergers and acquisitions for long term profitability rather than
short lived benefits.

11. The factors responsible for making the merger
and acquisition deals favorable in India
 Dynamic government policies
 Corporate investments in industry
 Economic stability
 “Ready to Experiment” attitude of Indian Industrialists
Sectors like pharmaceuticals, IT, ITES,
telecommunications, steel, construction, etc, have
proved their worth in the international scenario and
the rising participation of Indian firms in signing M&A
deals has further triggered the acquisition activities in
India.

12. REASONS FOR A SUCCESSFUL M&A
 Due Diligence
 Effecting organizational growth
 Increasing market share
 Gaining entrée into new markets
 Obtaining products
 Keeping pace with change
 Aligning Cultures

13. REASON FOR UNSUCCESSFUL M&A
 Lack of planning
 Limited synergies
 Difference in management or organization structures
 Wrong implementation of strategy
 Negotiation mistakes
 Difference in company culture
 Lack of knowledge by management
 Overpayment
 Difference in culture of countries
 Too high expectations
 Wrong integration approach
 Different strategies in R&D and Innovation

14. Merger of Flipkart – Myntra
 At $330 mn, it’s the largest e-commerce acquisition in India.
 Flipkart has agreed to keep Myntra as a separate entity that will
retain its website and continue to be led by Mukesh Bansal, co-
founder Ashutos Lawania and the rest of the current management
team.
 For Flipkart, the biggest selling category has been electronics, but
with this deal, the company hopes fashion will be the biggest
within a few months.
 Merger was done by Flipkart with Myntra with a view to achieve
the goal of generating $3 billion or Rs.20,000 crore in gross sales
by 2020.
 While Flipkart will bank on Myntra's fashion expertise and
expanding its base of vendor brands, Myntra will leverage Flipkart's
logistics network. Flipkart ships books to almost all of India's
21,000 PIN codes, and covers more than 100 cities for its entire
product portfolio of 20 categories. Myntra reaches 30 cities with its
own logistics network, Myntra Logistics, and around 9,000 PIN
codes via third-party logistics companies.

15. MAJOR M&A IN INDIA:
 Tata Steel acquired 100% stake in Corus Group on January 30, 2007. It was
an all cash deal which cumulatively amounted to $12.2 billion.
 Reliance Industries Limited (RIL) took over 78% shares in Network 18 in
May 2104 for Rs 4,000 crores. Network 18 includes moneycontrol.com,
In.com, IBNLive.com, Firstpost.com, Cricketnext.in, Homeshop18.com,
Bookmyshow.com
 Sun Pharmaceutical Industries Limited, a multinational pharmaceutical
company headquartered in Mumbai, bought the Ranbaxy Laboratories the
deal, worth $4 billion.

16. RECENT ACQUISITION
 ITC to buy Park Hyatt Goa for Rs 515 crore
 ITC on February 13 acquired the India business of Savlon and
Shower To Shower — two of the major brands of consumer and
healthcare multinational Johnson & Johnson (J&J).

17. Thank You