Abstract:
Indian economy is on a growth trajectory and one after another study is projecting India among leading economies of future. The role and significance of India in the global economy is continuously increasing. Mergers and acquisitions are on rise in India. This paper studies the Mergers and Acquisition (M&A) activities in the top 100 companies in India. The analysis shows the prominence of M&A as an effective strategy for inorganic growth with 47 of the top 100 companies going for merger and acquisition activity. Fast growth is a major reason given by executives of firms going for merger and acquisition. Firms like Tata chemicals have aggressively used M&A and have ended up being world's 2nd biggest firm in their domain in terms of revenue and production capacities. Increase in market share/control is another major deciding factor for Merger and acquisitions. Majority of the firms have reported significant improvement in their performance because of the M&A activity. The reasons cited for the improvement range from stronger distribution networks, increased production and capacity, geographical and product diversification, higher agility etc.