2024 Yearender: Major Mergers & Acquisitions Shaping India’s Corporate Sector
The corporate world in India has seen quite the shake-up in 2024, with a mix of twists and turns, as well as some major developments. There have been a number of mergers and demergers, and new, more efficient companies have been making waves. High-profile mergers and acquisitions spanning various industries have been occurring, signaling some important shifts in the business scene of the country.
Economist Pronab Sen, who was the former Chief Statistician of India, shared some insights with ETV Bharat. He mentioned that the reasons behind mergers can vary depending on the sector and the ambitions of each individual company. Companies might be looking to expand during slower market periods when prices are more favorable. Other times, the goal is to become a big player in the industry by acquiring competitors and solidifying their leading position.
The Indian corporate landscape in 2023 was marked by some significant mergers and acquisitions that made quite the impact across different sectors. Let’s take a closer look at some of these key moves:
– Viacom18 and Star India have come together to form India’s largest media and entertainment powerhouse, Jio Star. This new entity, valued at about Rs 70,352 crore ($8.5 billion), will oversee more than 100 TV channels and two major streaming platforms, JioCinema and Hotstar.
– Tesla has partnered with Tata Electronics in a $2 billion deal to expand its operations in India, eyeing locations in Gujarat and Maharashtra for its plant. This move aligns with India’s push to become a hub for Electric Vehicle (EV) manufacturing.
– Data Infrastructure Trust (DIT) acquired ATC Telecom Infrastructure Private Limited, a major player in passive telecom infrastructure services in India, to enhance telecom infrastructure in the country.
– Adani Group made a notable entry into the cement industry by acquiring Penna Cement Industries Ltd for Rs 10,422 crore, strengthening its presence in the construction sector.
– Dr Reddy’s Laboratories invested $620 million to acquire Haleon’s global nicotine replacement therapy (NRT) portfolio outside the U.S., expanding its consumer healthcare offerings.
– Kotak Mahindra Bank acquired Sonata Finance, a microfinance company, for Rs 537 crore to tap into the growing microfinance sector in India.
– IDFC First Bank and IDFC Ltd merged to simplify their corporate structure and improve efficiency, effective from October 1, 2024.
– Warburg Pincus acquired Shriram Housing Finance for Rs 4,630 crore, showcasing increasing interest in India’s affordable housing market.
– Brookfield India Real Estate Trust (BIRET) acquired a 50% stake in four Grade A commercial properties from Bharti Enterprises, boosting its portfolio.
– Keimed merged with Apollo HealthCo to create a powerhouse entity in the healthcare sector, serving thousands of pharmacies across the country.
These mergers and acquisitions reflect the determination of Indian companies to expand, enhance their capabilities, and establish stronger positions in key sectors, shaping the future of the country’s corporate landscape.
