Archive for February 11th, 2007

I have no excuses for not writing anything in this journal for the last 10 dyas. I am to blame and so is my procrastination. The mind always indulges in wishful thinking and hence i make excuses that I was super busy at office trying to live up to the expectations of my new responsibilities or I never really had a good subject to blog on. The truth meanwhile is no where near. I was pure lazy. Enough of self decoration. I was more inclined to speak about the flavour of the season in corporate India – M&A’s . For those of you who would like to learn there are two growth strategies a company could adopt. First – Organic Growth which means that the company grows by means of its own business activities like recruiting more personnel, introducing new product lines etc. Inorganic growth on the other hand means growth via external acquisitions or mergers etc. The benefit of inorganic growth is that the company has access to ready made and well established products(which might be doing well in the market), experienced people with the wanted know-how and access to newer geographical areas. Indian companies are increasingly going in this direction. The latest salvo fired was the Birlas acquisition of Novelis ,a US based aluminium firm that the Birla’s have pocketed for a paltry $ 6billion and that too in an all cash deal. Isn’t that spectacular ! Being a shareholder of Hindalco I look forward to the deal with great importance and measured caution.

The other story doing the rounds is that Vodafone has pipped other suitors in the race for the deal to own 67% of Hutch. Arun Sarin seems to have packed a heavy punch with his bid . I read today that Vodafone has valued the deal at around $18-19billion. Nothing is final so I too wait and watch. I think it will be a couple of weeks before anything is clear.Rising at 9-10% the Indian Economy is anyway very fast but it is also going global and that’s always good.

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