Tuesday, December 3rd, 2013
Aneel Karnani was born in 1951. He was educated at Harvard Business School, and is now a Professor of Strategy at the Ross School of Business, The University of Michigan. He gives this exclusive interview about Indian firm’s foreign acquisitions to Victor Fic, our special correspondent for economics and politics.
Explain the internationalization trend of Indian firms. Please cite examples.
Companies originating from emerging economies have been increasingly pursuing international acquisitions, driven by various factors such as the liberalization of their domestic economies, globalization of their industries, intensity of competition, managerial capabilities, and access to capital markets. This is also true for Indian companies. Recent major examples include Tata Steel acquiring Corus Group for US$13 billion, Hindalco Industries buying Novellis for $5.7 billon, Tata Motors buying Jaguar Land Rover for $2.3 billion, and Bharti Airtel purchasing Zain’s African telecom operations for $10.7 billion.