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    So Why are Indian Corporates Selling Out?

    So Why are Indian Corporates Selling Out?

    January 03, 2011 / 17:27 IST

    It was a very genuine question during one of the M&A negotiations by an overseas acquirer keen to buy the stake of an Indian promoter. If India is on a high once again with the growth back to over 9% and the long term growth prospects look even more robust for the economy and business; If all global companies have India on their radar for future growth; Why are the Indian promoters selling despite the fact that they see considerable growth opportunities in their business.


    Is this just the colour of money? The money earned by the promoters of Ranbaxy, Piramal Healthcare, Indo Asian, and Paras Healthcare  when they sold their businesses at unprecedented astronomical valuations would probably be exciting for anyone. But is it just the money or there is there more to the changing business dynamics?


    The Indian Entrepreneur
    Most Indian promoters are basically entrepreneurial in nature. They are very good at building new businesses. However, at the same time many of them are not so good at scaling the businesses to the next level once it reaches a critical mass. The last 10 - 15 years of growth in India has provided a great opportunity to the Indian entrepreneurs to scale up businesses. However, now the Indian promoters are facing the challenge of scaling up businesses to the next orbit due to various reasons:

    first published: Jan 3, 2011 03:58 pm

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