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Post Merger Financial Performance of Tata Motors Limited: An Evaluation


Affiliations
1 National Institute of Cooperative Management, Gandhinagar, Gujarat, India
 

Mergers and Acquisitions (M&A) are considered as quickest routes to expansion. M&A is a prudent decision when compared to laying a green field project, which involves longer gestation period and huge investments. Companies are attracted to M&A for availing economies of scale, economies of scope, enormous size and expansion of domestic and foreign markets. Rise in the disposable income of customers, has converted an all time luxury into a necessity. Indian automobiles market is an eyewitness to such a growing necessity. Indian companies are inclined to M&A to reduce competition and grab larger market share. Automobile majors often try to bond with foreign players especially for new technology and tapping the new market in home country as well as cross border countries. Present study tries to analyze the motive of Tata Motors Limited for acquiring foreign brands and also tries to study the post merger financial performance of the company.

Keywords

Merger and Acquisitions, Profitability Ratios, Synergistic Benefits
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  • Post Merger Financial Performance of Tata Motors Limited: An Evaluation

Abstract Views: 356  |  PDF Views: 3043

Authors

Jigna Chandrakant Trivedi
National Institute of Cooperative Management, Gandhinagar, Gujarat, India

Abstract


Mergers and Acquisitions (M&A) are considered as quickest routes to expansion. M&A is a prudent decision when compared to laying a green field project, which involves longer gestation period and huge investments. Companies are attracted to M&A for availing economies of scale, economies of scope, enormous size and expansion of domestic and foreign markets. Rise in the disposable income of customers, has converted an all time luxury into a necessity. Indian automobiles market is an eyewitness to such a growing necessity. Indian companies are inclined to M&A to reduce competition and grab larger market share. Automobile majors often try to bond with foreign players especially for new technology and tapping the new market in home country as well as cross border countries. Present study tries to analyze the motive of Tata Motors Limited for acquiring foreign brands and also tries to study the post merger financial performance of the company.

Keywords


Merger and Acquisitions, Profitability Ratios, Synergistic Benefits



DOI: https://doi.org/10.15613/hijrh%2F2014%2Fv1i1%2F53847