While half of the nation was completely engrossed in India Vs. Sri Lanka One day Cricket match on Sunday afternoon India Inc was busy swiping the card for two deals amounting to $ 25 billion (Rs. 1,10,000 Crores). Indian Cricket team might have disappointed you but full marks to team corporate India, which is performing at all time best.

First the big one – Vodafone Connect acquires Hutch

Exactly eleven days after Tatas bought Corus, the biggest steel firm in UK, Vodafone the biggest telecommunication network Company in UK reversed the roles by acquiring Hutch for $ 19 billions.

Vodafone’s entry into Indian market is definitely going to bring down the tariff rates, which at present is lowest, compared to rest of the world. Furthermore, it will intensify the competition, as they are known to be very aggressive. Ultimately, goodies will flow to the customer.

On the other hand, Vodafone will have its share of subscriber, as India with a tele density of 17.6% is the most potential market for telecom industry in the world. India is the third largest market for Vodafone after Germany and US in terms of subscribers. It won’t take long for India to take up the first position as both Germany and US is already saturated with a tele density of 80% and 76% respectively.

Now the second deal of the day, which further accelerated the fun of the weekend for Corporate India.
Icing on the cake – Birlas scoops Novalis Inc

While Tatas are making headlines by acquiring overseas, Birlas are no less. Now it is Birlas turn to step into Fortune 500 milestone. Hindalco, the flagship company of Birlas made a bid for Novelis Inc, which is the largest aluminum rolled products company in the world for a whopping $ 6 billion (all cash deal). This deal is going to be India’s biggest acquisition in North America and second largest overseas acquisition after Corus.

The deal is not yet concluded. It is already approved by the board and 3/4th of the shareholders green signal is required to put the deal on papers. An interloper walking in late to place a bid has to pay $ 100 million as break off fee. Secondly, the new deal has to be at least $ 3- 4 higher than what Birlas had agreed to pay. Taking into consideration both the above condition we can fairly assume that Birlas have locked in the deal.

The cans that people drink colas in are going to be produced by an Indian company. Not only this, the same Indian company will be providing aluminum products to companies like General Motors and Ford. So Indian companies are now into everything and geographical limitation are unbounded.

Both these deals when put together are

—>>more than India’s defense budget and way, way more than country’s combined education and health budget.
—>>more than combined FDI inflows from 1991-92 to 2003-04.
—>>are worth 60% more than the profit of all the 30 sensex companies taken together.

I hope by now butterflies are flying in your stomach!!!!!!!!!!!!!!!

If not, go ahead ……….

Tatas are shopping abroad, Sunil Mittal tied up with Walmart, and now Birlas too in action. More and more Indian private sector companies are finding place in Fortune 500 list. Indian companies are growing inorganically which is very much required for globalization. On the other hand, all the biggest global giants – POSCO, Llyods, Barclays, Walmart, (the list is endless) are finding interest in India and are keen to land here. We are not talking in millions anymore but it is multi billions now. Keep your fingers crossed to witness the Indian flag unfurl high as we are not too far from being called the citizen of Developed India rather than Developing India. It gives a great sense of pleasure to see this metamorphosis of India from a developing stage to the developed stage that is yet to come. We are among the privileged few Indians to be a part of both this stages.

All thanks to the financial institution who are queuing up to finance India Inc without which leverage buyout of such huge amount are a mere dream. The merger and acquisition that has taken place in the recent past reflects the growing global confidence in India. This is just the beginning as Mr. Birla hinted at global cement acquisition and going a step ahead Mr. Tata too said that further consolidation is still awaited in steel industry. I hope the juggernaut keeps rolling.

Miles to go before we sleep!!!!!!!!!!!!!!!!!!!!!!

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