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Sarkaritel.com News and Features
Overseas Acquisitions
Demonstrate India INC's Confidence
New Delhi, November 29, 2006
Indian companies are constantly revaluating their strategy
to remain competitive globally. Easier access to capital and
an upsurge in cash accruals which are the stimulants in the
process of acquisition have been progressively liberalized by
Reserve Bank to ensure ease of functioning.
Outbound acquisitions are a function of the increased
confidence of Indian industry to replicate its efficient
performance overseas, declared Mr Ashwani Kumar, Union
Minister of State, Department of Industrial Policy and
Promotion, Ministry of Commerce and Industry, addressing a
Session on 'The Acquisitive Indian' at the India Economic
Summit jointly organized by the World Economic Forum and CII,
in New Delhi today.
An increasing number of companies looking outwards for
investment cite reasons like diversification, deeper
penetration of the markets, technology advancement, brand
creation, self confidence, easier availability of finance and
a booming economy to be a pre-emptive need for acquisitions to
give complete authority, freedom and flexibility.
It was agreed that the inherent integration risk and
operational challenges which were common to acquisitions
across all sizes are likely to remain a successful acquisition
could be ensured by paying close attention to skill gaps,
price negotiation, deal structures and value creation.
Applying new technologies would make larger acquisitions
possible.
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