Mr Vijay Mallya, Group Chairman, UB Group, India said that his company believes in market leadership model for his business. He said that India has a huge market and consolidation of his business in India made sense in this respect.
He pointed out that Indian airline industry in India was not doing well 2 years ago. But after consolidation begun, it has been growing at more than 40% for the last two years.
Mr Malvinder M Singh, Chief Executive Officer and Managing Director, Ranbaxy Laboratories, India and Young Global Leader, said that the pharmaceutical industry in India represents 1% of the total global market. Around 70-80 % of business for his company comes from overseas.
He feels that for a successful acquisition deal, one needs to ask why is the deal required in the first place. There can be a host of reasons, for instance, market share, technology etc.
The next factor that needs to be noted is the financial viability of the deal. Sometimes it is better to let go a deal, and one should not be in a hurry to close deals. In conclusion, he said that Indian industry has managed mergers and acquisitions fairly well and the trend is not going to change in near future.
Confederation of Indian Industry
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