|Photo by IANS|
Indian companies have become matured, while tough competition remains within the domestic market of the country, Indian companies are exploring more markets and adding more dimensions of competition. In the last decade we saw growing number of acquisitions by Indian company not only of smaller brands but also of much bigger and prestigious brands. In our previous article we discussed how the former colony India has been acquiring more businesses in the UK and “Indianizing” them, becoming the largest employer in the private sector of the UK. It is observed that Indian companies in a collective manner targeted UK businesses more actively, it could be unintentionally or may be some kind of nationalism. Indian companies are now equally active in the rest of the geography in the race to secure resources and technology.
Year 2003. In the year of 2003, one of the key Korean based commercial vehicle company, Daewoo was acquired by Tata Motors. Daewoo was famous for the cars Cielo and Matiz. After the acquisition Daewoo cars disappeared from Indian markets. Today Tata Daewoo is in the heavy vehicle business with its manufacturing and assembly mainly in Korea, India and Pakistan (Afzal Motors).
Year 2005. The confidence in the management of the Tata boosted so high that one by one it acquired more companies in US, South Africa and East Europe making it world’s second largest branded tea maker. US herbal and green tea brand Good Earth was bought by Tata Global Beverages in 2005.
In another move in the automobile industry Tata Motors bought one of the largest manufacturer of bus and coach cabins in Europe, Hispano Motors Carrocera in 2005. Apart from their main plant in Zaragoza, Hispano also has another facility across the Mediterranean sea in Africa, Casablanca, Morocco. Their combined capacity is to produce nearly 2.000 unites per year. With this acquisition Tata also brought a number of jobs by bringing manufacturing of Hispano bodied buses in India at ACGL plant in Goa. These buses are known as Tata Divo.
|Why doesn’t Tata launch these buses in India? Variant of Tata Hispano Globus can be seen plying on the airports which lack functioning aerodrome facilities. Photo by Motor India|
Later, in the same year Tata made another acquisition in the UK. UK-based Brunner Mond group and US-based General Chemical Industrial Products were back to back bought by Tata Chemicals.
Year 2006. Another US based beverages firm Eight O’ Clock Coffee was bought for US$220 million. Tata also successfully established itself in the tea markets of other small countries like Czech Republic, where it owns JEMČA which is the biggest selling tea brand in the country.
In a move to secure resources around the world, Indian companies are actively spreading their arms. A study by Ernst and Young reports that the Indian companies have advanced in recent years and have invested appreciably in securing mineral resources. For the first time, in the year 2010, India-based companies scored over Chinese counterparts in the acquisition of foreign mineral assets. To support the statement, Indian companies had invested US$4.64 billion in 2010 to acquire businesses outside India, while Chinese overseas investments declined by more than half to US$4.45 billion.
Year 2007. Tata, just after one year of making its dominating presence in the tea markets of US and UK, moved on to the next big thing, Steel! In the year 2007, ambitious Tata Steels bought a company five times bigger than itself for US$12.1 billion. At that time Corus was ranked eighth largest in the world. This pushed Tata Steel from 65th position in the world steel production to a comfortable 5th position. In an another move in the metallurgy industry by another Indian company, Aditya Birla Group acquired Canadian Novelis, an aluminum producing company, for around $6 billion by its flagship company Hindalco Industries. This acquisition has made Hindalco world’s leading aluminium rolled products producer.
Year 2008. India made notable acquisitions in the sector in which it is considered the world leader, IT sector. Indian company HCL acquired UK based enterprise solution provider Axon in mid 2008. Overall Axon group and its subsidiaries has constituted 14% of HCL Tech’s revenue of Rs 16,030 crore and net profit of Rs 1,646.5 crore proving impressively beneficial. HCL, Infosys, and Tata Consultancy Services have till date acquired large number of companies or established their centres around the world and maintain world dominance when it comes to IT.
In the same year, in one of the most surprising deal Tata Motor’s acquired prestigious British Jaguar and Land Rover auto brands. Still very few are aware that Tata Motors owns these super luxurious British automobile brands since 2008. Tata never renamed it as Tata Jaguar. Buying from the cash strapped Ford, Tata has now recorded massive net profit in JLR section.
Year 2009. When most of the Indian private companies were surprising the world with one after the other big acquisitions, state run Oil and Natural Gas Corporation (ONGC) also expanded its arm, and this time again it was UK! In January 2009, ONGC bought U.K. firm Imperial Energy for $2.1 billion. It was one of the biggest foreign acquisitions by ONGC Videsh (OVL), which is the overseas arm of ONGC. OVL successfully holds stakes in various parts of the world, notably the Gulf, Latin american and Siberia.
Year 2010. In mid 2010, In one of the largest coal mines deals by an Indian group, Adani Enterprises, in a cash and royalty deal, acquired the Australian coal assets of Linc Energy for US$2.7 billion.
In the same year, Bharati Airtel, India’s largest telco also became world’s fifth largest telecom company after acquiring African assets of Kuwait’s Mobile Telecommunications Co., Zain. Apart from its massive Indian subscribers, this deal provided Bharati Airtel additional 180 million customers in 18 countries and annual revenue of $12.4 billion
Flowing in the spirit, Sahara India Pariwar in late 2010 controversially bought iconic Grosvenor House hotel in London for 470 million pounds (around Rs 3,250 crore), which gave it a considerable stronghold in the global hospitality business. Sahara India Pariwar had been losing businesses in India, Sahara airways, one of them. Sahara is also known for sponsoring various Indian and Bangladeshi sports team.
Talking about sports, Venky, flagship company of Venkateshwara Hatcheries Group bought Blackburn Rovers, 135-year old English premier division football club which however could not keep club’s fans happy.
Pedro Moreno de los Ríos, partner at Parangon Partners explains “One of the great advantages of Indian executives, compared with their Chinese counterparts, is their knowledge of Anglo-American culture. Another advantage is the greater openness that India has enjoyed when it comes to foreign capital”. He further added, “Indian managers tend to have an international approach, and “India is [even] exporting managers to China.”
Peter Cappelli, George W. Taylor Professor of Management at The Wharton School and Director of Wharton’s Center for Human Resources says, “They [Indian Companies] are aware that there are markets that have not been exploited, and they want to take advantage of them, but not if foreigners get one hundred percent of the profits,” explains Peters. He further adds, “That way, they guarantee that India will not be sold off to foreigners.” He says India and Indian companies are giving more important to their development and are open to foreign companies to gain expertise, technology and funding while maintaining control. “India wants to create its own companies and brands, while China leaves the road wide open to foreign companies,” says Peters.
India, which is third largest economy in terms of GDP (PPP) knows that it needs a stable economy if it is dreaming of becoming a super power in every manner. A strong economy, jobs, education, food security and political stability will help India excel in the path which it has already chosen. A number of foreign acquisitions like these have helped Indian companies gain expertise, technology and management lessons which will help this country shape even more global brands in the future. Companies like Tata, Birla, Reliance and Jaypee are also determined to structure better education in India through their state of the art institutions of technology. Foreign acquisition did bring some jobs to India and more importantly India has secured and has been securing some of the key resources field around the world, that will keep feeding its giant economy in a long run.
New Business Approaches
Business, like anything in life, can sometimes become a bit stale. Sometimes you need to refresh your approaches to give it that new lease of life that is so badly needs. But, sometimes it is unclear, and you’re not sure which direction you need to take to get the best out of your business. It is something that everyone goes through at some point, but is something that can be easily solved. All you need to do is know your business, and do a little research. Luckily for you, this article is going to give you a bit of advice if you’re stuck with knowing what to do.
Somehow, this is where a lot of businesses lack. They’re so money driven that sometimes they can lose track of the bigger picture, and the people who matter the most. The customers. They’re ultimately who are going to be giving you the money you so badly desire, so keeping them at the forefront of your mind should be something you’re always trying to do. Even little things like making sure your office is immaculate when customers come in is going to make the difference between a sale or not. If they see somewhere that looks a bit dirty and dingy, they’re not going to want to do business. People prefer places to look tidy and smart. Custodial services aren’t that expensive, so if you know you’re rubbish at keeping the office clean, this might be worth looking into. Another way of making sure your customers are always happy is by doing questionnaires. These can be done either when they come in the store, or online anonymously. This feedback to your should be invaluable.
Marketing should be a big approach for any business. If you’re not currently marketing yourself, you really need to look into why it’s important and how your business will benefit from it. If you are marketing already, then you’re already on a step in the right direction. The only downside to marketing is your approaches can sometimes become a little stale. What once used to work for you might not work now. This is where a fresh approach is definitely needed. Do some online research and see which methods you might be interested in. If you haven’t tried it before, SEO and link building is a really good way of gaining your business exposure. It is a risky game, so you are going to be better off hiring a consultant, but it’s definitely worth doing in the long run. Be warned though, you won’t see results straight away, and it is on the more expensive side of marketing. If you’d like to try cheaper ones, then radio or social media marketing might be the route to go down for you. It just might be the case that you don’t get as much exposure from methods such as radio.
New business approaches are bound to only do good for you. Above are just two ways in which you can make your business better.
Who Will Save The Planet: The People Or Big Business?
Are you worried about climate change and the general state of the planet? If you read our previous article on the subject, you certainly will be and if not, then perhaps it’s time you caught up. The shorthand version is that the world is slowly dying. American talk show host and political comedian, Bill Maher, recently questioned why innovators like Elon Musk are so fascinated by the idea of living on Mars. Instead, he asserted, we should be focusing on saving this planet and correcting the damage done to it. Scientists are constantly trying to warn us that we need to do more to save the planet, but who are they talking about here?
The question we want to answer today: who has the best hope of saving the world and fixing the environment? Is it big business or the individual homeowners? In other words, should we look to the ant or the grasshopper? As the old fable goes, ants may be small but in large numbers they might be capable of far more than the larger, strong Grasshopper. To answer this question we first need to look at the statistics.
The Maths Behind The Melt Down
Here’s an interesting statistic for you to mull over.One child per family, according to experts is the equivalent of 58.6 tonnes of CO2 carbon emissions annually. That’s right, just by having kids and growing your family you are causing the destruction of the world. Try not to take that too personally because actually everyone is guilty.
However, before you get too distressed about this, let’s shine a light on another stat. 100 companies in the world are causing 71 percent of the global emissions that are currently destroying the environment. Essentially, this sends the message that we shouldn’t be trying to change the minds and lifestyles of the individuals but rather the businesses that are slowly killing the planet.
Of course, it is worth considering that while that might seem like there’s just a few bad eggs we are in the age of the massive conglomerates where monopolies are common. Just this month we learned Disney was attempting to buy up Rupert Murdoch’s pride and joy while Warner Bros. continued their efforts to merge with AT&T. What does this tell us? Is it really that surprising that – in comparative terms – a few companies are causing most of the pollution. Absolutely not, but that doesn’t leave the random individual completely blameless. Indeed, it’s fair to say that most people these days own a car or two. A typical vehicle will create over 4 tonnes of carbon emissions per year. Imagine how much damage you’re doing by driving alone.
The Businesses Must Act
One train of thought here then is that it is the businesses that must make changes for us to be able to see the light at the end of the tunnel. Believe it or not, that is starting to happen, at least in some areas of the world. In Denmark for instance, the government has set high stands for companies and the level of carbon emissions they can product. Infact, there is a heavy focus here on renewable energy which actually, all businesses should be looking towards now as a solution.
As well as this, businesses are in the perfect position to introduce innovative technology and processes that could make everything more efficient. Ultimately, this could start at the manufacturing level and we can take jet engines as an example here. So, during the manufacturing of turbine engines, producers now have the possibility of using Laser Light technologies to drill tiny holes into the engine, thus allowing it to cool more effectively. With this feature, the engine uses less energy and is a lot more efficient. For that to happen though, the producer has to use that method. The company creating the planes has to buy from that producer. But, if all this does occur then ultimately it impacts various different processes in the world. Flying from New York to London is suddenly a lot more eco friendly. So, perhaps the phrase should be ‘it starts at business’ rather than it starts at home.
After all, it is the businesses that are going to have to change to ensure that the impact of climate change and other environmental factors are reversed. One could even argue that if every business began to take a hard stance on correcting the impact that their model is having on the environment the issue would be resolved overnight. But, let’s take a closer look at the individual.
Power Of The Public
There are a few reasons why ultimately it is the public that has the power to change the impact we are currently having on the environment. First, of all, there’s that ant, grasshopper fable. There are a lot more people in the world than there are businesses. If everyone changed their energy usage the issues with carbon emissions wouldn’t disappear but they would be significantly reduced.
The public also have the power of the buyer. They can decide and determine who they want to buy from. If the public started turning their backs on businesses that continued to pollute they would have no choice but to act and to change their ways.
As well as this, we have now reached the point where small gestures won’t be enough. As the world population continues to grow, it’s clear that the biggest threat to environment is not carbon emissions but people. Governments need to act swiftly and start taking appropriate measures that may seem severe like limits on the number of children that people can have. While this might seem drastic we need drastic actions now, if the report by 15000 scientists is to be believed.
Perhaps then this is a trick question. The power to save us isn’t in the hands of the people or the corporations. The power to save us is in the hands of the governments around the world. But of course, governments work, at least they should, in the best interests of the people. As such, if you want to save the planet we really only have one question. How loud can you shout to make sure your voice is heard on this issue?
Dealsan, an online product price comparison
Go shopping online is an activity that draws attention to a lot of people, because of the excellent prices that can be found in different products, as well as the convenience of being able to buy from home. However, there are some drawbacks with internet purchases that everyone would like to overcome.
One of the points most considered by people who buy these kinds of products on the most famous and trusted virtual stores in the world, such as Amazon or Ebay, is the time they spend looking for the best options of the same product. It can even become tedious to go around comparing prices, brands and reviews of products, without knowing exactly which one to choose or even if we choose one of the options we are missing the opportunity to get a better offer.
Fortunately, there are price comparisons, professional platforms, such as Dealsan, which allow its users to compare among millions of products of all kinds, whether mobile phones, TVs, watches, clothing and others, which facilitates the process of purchase, in addition to ensuring you the opportunity to get the best deals on the product you are looking for.
There are many reasons why price comparisons have become popular, since the advantages they offer when shopping online are not few. So, for example, just enter the site and write the name of the product you want to see the best deals of major online stores and get seasonal prices without having to make a long search.
On the other hand, this way of purchasing is safe, of course, depending on the price comparator used. Dealsan and other hundred percent secure platforms allow purchases from reliable and globally recognized sites, such as Amazon, Etsy, Ebay and others. So security and reliability are not a concern when using these types of platforms.
The variety is another strength of several online price comparators, since it is not necessary to go from store to another, or even in different sections of online stores. If you want to look for good discounts of products that belong to different categories, you can access all the products you are looking for with a search box available on the website.
Finally, another advantage of using a quality price comparator is that it offers a good visual format for the products, with images large enough and clear enough for the customers to have more details of the products that are bought.
The world of online shopping is becoming more modern and innovative, the same way it has been evolving since the first online stores were established. Now, thanks to the use of price comparators, among which Dealsan ranks first, the online shopping experience has improved significantly for people.
Due to all these reasons, every day more people make their purchases online through a price comparison, having a great shopping experience, while getting quality products and the best prices in the market. And the best part is that this type of platforms is completely for free and you have no risk to lose anything and it is completely safe.
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