The billion dollar question that evades an answer on the latest corporate fad of the Indian Companies is as to whether these “Mindless acquisitions” of the overseas manufacturing units will only increase the debt burden of the respected Indian companies. Interestingly, they are known for their corporate governance par excellence. It is apprehended that the quest for more and more overseas acquisitions might put avoidable burden on their balance sheets as well as the human resources. Moreover, the unviable debt servicing following the overseas acquisition may result in more pressure on their domestic operations. Therefore, before the mergers and acquisitions on a global platform the promoters-owners of thee companies would do well to take this financial angle into consideration before according precedence to any other considerations.
However, it must be a matter of pride for the entire the citizens of the Indian subcontinent which was once the colony of the British, who were till sometime ago condemned as a benighted South-Asians destined to be ruled by Levers, Suzuki, Carbides etc.
No comments:
Post a Comment