• About us
  • Columnists
  • Careers
  • Brand Partnerships
  • rightlog is now TFIPOST
TFI Official Merchandise
हिन्दी
Wednesday, May 18, 2022
TFIPOST
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Why the world needs to know the truth about Taj

    Why the world needs to know the truth about Taj

    After Gyanvapi Masjid, it’s time for the truth behind Shahi Idgah Masjid to come out

    After Gyanvapi Masjid, it’s time for the truth behind Shahi Idgah Masjid to come out

    CBI tightens its noose around Karti Chidambaram

    CBI tightens its noose around Karti Chidambaram

    Mukesh Ambani is out to challenge Pepsi and Coca-Cola

    Mukesh Ambani is out to challenge Pepsi and Coca-Cola

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    green energy

    With gasification of coal, India takes a step ahead towards clean energy

    Adani

    Gautam Adani comes across as a compulsive, obsessive shopaholic

    Vistara and Air India

    Time for a bold prediction – TATA will merge Vistara and Air India

    They kept abusing Adani until one day Adani bought them, A Quint Saga

    They kept abusing Adani until one day Adani bought them, A Quint Saga

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    A comprehensive list of weapons India manufactured and procured in the last 24 months

    A comprehensive list of weapons India manufactured and procured in the last 24 months

    Ajit Doval warning

    Ajit Doval makes it clear that Balakot and surgical strikes are only the beginning

    AK-47

    AK-47: How a Russian gun changed the course of history

    India has an effective solution for the “Chicken’s Neck” problem

    India has an effective solution for the “Chicken’s Neck” problem

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Original NATO is breathing its last, so a duplicate rises

    Original NATO is breathing its last, so a duplicate rises

    Xi Jinping

    Xi Jinping is stepping down

    The real reason why India temporarily stopped exporting wheat

    The real reason why India temporarily stopped exporting wheat

    Are Shehbaz Sharif’s days numbered?

    Are Shehbaz Sharif’s days numbered?

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • History
    • Indology
    Intermittent Fasting

    The West is repackaging and selling Vrata/Upwaas as “Intermittent Fasting”

    Sanctity of Shri Jagannath Puri Mandir should not become a victim of political tussle

    Sanctity of Shri Jagannath Puri Mandir should not become a victim of political tussle

    Teresa documentary

    Saint or Sinner? – A Sky Documentary that Exposes Mother Teresa

    IVC

    Rakhigarhi expedition once again proves why India was fully developed thousands of years ago

    • Culture
    • History
    • Indology
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Intermittent Fasting

    The West is repackaging and selling Vrata/Upwaas as “Intermittent Fasting”

    prithviraj chauhan

    5 Actors who would have looked better as Prithviraj Chauhan than Akshay Kumar

    Andrew Symonds

    Andrew Symonds: Once in a generation cricketing legend

    Archies

    Zoya Akhtar’s upcoming Netflix project proves why Bollywood is allergic to talent

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
TFIPOST
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Why the world needs to know the truth about Taj

    Why the world needs to know the truth about Taj

    After Gyanvapi Masjid, it’s time for the truth behind Shahi Idgah Masjid to come out

    After Gyanvapi Masjid, it’s time for the truth behind Shahi Idgah Masjid to come out

    CBI tightens its noose around Karti Chidambaram

    CBI tightens its noose around Karti Chidambaram

    Mukesh Ambani is out to challenge Pepsi and Coca-Cola

    Mukesh Ambani is out to challenge Pepsi and Coca-Cola

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    green energy

    With gasification of coal, India takes a step ahead towards clean energy

    Adani

    Gautam Adani comes across as a compulsive, obsessive shopaholic

    Vistara and Air India

    Time for a bold prediction – TATA will merge Vistara and Air India

    They kept abusing Adani until one day Adani bought them, A Quint Saga

    They kept abusing Adani until one day Adani bought them, A Quint Saga

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    A comprehensive list of weapons India manufactured and procured in the last 24 months

    A comprehensive list of weapons India manufactured and procured in the last 24 months

    Ajit Doval warning

    Ajit Doval makes it clear that Balakot and surgical strikes are only the beginning

    AK-47

    AK-47: How a Russian gun changed the course of history

    India has an effective solution for the “Chicken’s Neck” problem

    India has an effective solution for the “Chicken’s Neck” problem

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Original NATO is breathing its last, so a duplicate rises

    Original NATO is breathing its last, so a duplicate rises

    Xi Jinping

    Xi Jinping is stepping down

    The real reason why India temporarily stopped exporting wheat

    The real reason why India temporarily stopped exporting wheat

    Are Shehbaz Sharif’s days numbered?

    Are Shehbaz Sharif’s days numbered?

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • History
    • Indology
    Intermittent Fasting

    The West is repackaging and selling Vrata/Upwaas as “Intermittent Fasting”

    Sanctity of Shri Jagannath Puri Mandir should not become a victim of political tussle

    Sanctity of Shri Jagannath Puri Mandir should not become a victim of political tussle

    Teresa documentary

    Saint or Sinner? – A Sky Documentary that Exposes Mother Teresa

    IVC

    Rakhigarhi expedition once again proves why India was fully developed thousands of years ago

    • Culture
    • History
    • Indology
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Intermittent Fasting

    The West is repackaging and selling Vrata/Upwaas as “Intermittent Fasting”

    prithviraj chauhan

    5 Actors who would have looked better as Prithviraj Chauhan than Akshay Kumar

    Andrew Symonds

    Andrew Symonds: Once in a generation cricketing legend

    Archies

    Zoya Akhtar’s upcoming Netflix project proves why Bollywood is allergic to talent

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
TFIPOST
No Result
View All Result

Rising number of Merger and Acquisition operations sign of healthy economy, will benefit the consumers

Amit Agrahari
by Amit Agrahari
31 July 2018
in Business
0
m&a, competition
859
VIEWS
Share on FacebookShare on Twitter

India has almost 17 lakh companies with a heavy concentration in states like Maharashtra, Delhi, and West Bengal. Most of these companies are in Micro Small and Medium Enterprises (MSME) sector. The earlier governments’ focus on MSME sector did not increase productivity in this sector but it allowed the big companies to create many shell companies for tax evasion. The authorities also suspect that more than one-third of the companies are shell companies which do not carry any business activity and are primarily used for money laundering and tax evasion. “The total number of companies registered in the country as on 31 October 2017, stood at 1,704,319…there were 1,130,784 active companies as on 31 October 2017,” the ministry said in a report for October 2017. So the shell companies are expected to shut down as the government intensifies the crackdown on shell companies.

As the capitalism goes in the advanced stage in the country the consolidation of companies happens. The intense competition forces the rivals to merge and take on other companies. This aspect is very visible in the telecommunication sector as the market has consolidated between four companies. The Vodafone-Idea merger to take on other large players like Jio, Airtel is a prime example of this process. In advance capitalist countries like the United States, Japan, and the United Kingdom every industry has consolidated between five or six big players. Contrary to popular perception that consolidation is bad, it actually helps the consumers and the government both. The consolidation allows the companies to sell more customized and cheaper products to the consumers. The customization happens due to data and experience of both companies allows the merged entity to know more about consumer behavior and cost goes down because less number of people and operations are required. 

The process of consolidation is happening very fast in India for the last few years due to a variety of reasons like the Insolvency and Bankruptcy Code (IBC), growing competition, government’s decision to move from ‘stigmatized capitalism’ to embracing capitalism completely, a crackdown on shell companies etc.  Indian companies have been involved in deals worth a record 97.6 billion dollar this year. Walmart’s $16 billion acquisition of a majority stake in Indian e-commerce company Flipkart has been best so far pushing the total past a previous annual peak of 92.3 billion dollars. The merger and acquisitions happened mainly in technology, media, and telecom sectors. Mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities.

“The IBC has also spurred the activity with NPAs worth 26 billion coming back to blocks. This year, if there is one stand-out product it is really M&A,” said Kalpana Morparia, the chief executive officer for South and South East Asia at JPMorgan, which climbed the top spot in India for the first time in at least a decade. “We are seeing some great examples of inbound M&A and a fair amount of domestic consolidation, largely spurred by the bankruptcy process.” JP Morgan chase worked as an advisor in most of the deals this year followed by Goldman Sachs and Citi Group, all based in America.

The growth of M&A operations are a clear indication that growing competition is forcing the companies to make a deal with their rivals. The consolidation helps the government to get more taxes from these companies as the tax rate for small companies is low while it is higher for large companies. The consumer is benefitted as we can see in the telecom sector the prices for calls and data are dirt cheap.

Tags: ibcIndian EconomyVodafone-Idea merger
Share425TweetSend
Previous Post

Government enforces NRC in Assam: Here’s what other leaders said

Next Post

India-England test series: Players India would be counting on

Amit Agrahari

Amit Agrahari

Engineering grad but Humanities and social sciences are my forte. Avid reader of religious Scriptures (Especially Hindu), Lord Shiva devotee

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Most Read
  • Comments
  • Latest
Xi Jinping, coronavirus, Shinzo Abe, china, Japan, coornavirus, COVID-19, Wuhan Virus

‘Pack up and get out of there,’ Japan to spend $2.2 billion to get Japanese companies to exit China

9 April 2020
ajay devgn karan johar

The man who bullied the Bully – How Ajay Devgn made Karan Johar’s monopoly a joke and forced him to apologize

22 June 2020
Huawei, China, Trump, USA, Xi Jinping

‘Our survival is at stake now,’ Chinese Telecom giant Huawei crumbles after US ban on Semiconductor exports

19 May 2020
T-Series Sonu Nigam Divya Khosla Kumar Bhushan Kumar

T-Series forced to take down Atif Aslam’s video, Divya Khosla trolled. T-Series has a bad day in office

25 June 2020
Meat Ban

A Jain responds to Meat Ban in Mumbai

Public Sector Bank, Government, Bill

Dear bank employees, continue your stride but PSBs will be privatized

anti-Hindi

Anti-Hindi Forever?- In search of a National Language!

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Why the world needs to know the truth about Taj

Why the world needs to know the truth about Taj

17 May 2022
After Gyanvapi Masjid, it’s time for the truth behind Shahi Idgah Masjid to come out

After Gyanvapi Masjid, it’s time for the truth behind Shahi Idgah Masjid to come out

17 May 2022
Original NATO is breathing its last, so a duplicate rises

Original NATO is breathing its last, so a duplicate rises

17 May 2022
CBI tightens its noose around Karti Chidambaram

CBI tightens its noose around Karti Chidambaram

17 May 2022

Popular This Week

prithviraj chauhan
Cinema

5 Actors who would have looked better as Prithviraj Chauhan than Akshay Kumar

by Tanya Trivedi
17 May 2022
tukey wheat India
Geopolitics

After the West, now Turkey extends its begging bowl to India

by Abhinav Singh
12 May 2022
Archies
Cinema

Zoya Akhtar’s upcoming Netflix project proves why Bollywood is allergic to talent

by Sanbeer Singh Ranhotra
15 May 2022
Anil Ambani Yes Bank
Business

From Yes Bank to SBI: How Anil Ambani tied many private and public sector banks around his neck and jumped into sea

by Amit Agrahari
17 March 2020
They kept abusing Adani until one day Adani bought them, A Quint Saga
Business

They kept abusing Adani until one day Adani bought them, A Quint Saga

by Abhishek Kumar Singh
16 May 2022

©2022 TFI Media Private Limited

  • Terms of use
  • Privacy Policy
  • Sitemap
No Result
View All Result
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFI Official Merchandise
हिन्दी
  • About us
  • Columnists
  • Careers
  • Brand Partnerships
  • rightlog is now TFIPOST

©2022 TFI Media Private Limited

Follow us on Twitter

and never miss an insightful take by the TFIPOST team

Follow @tfipost