Indian companies including Paytm have gone into foreign ownership.. What is the real reason? | Telugu News


Indian Companies Including Paytm Have Gone Into Foreign Ownership

Paytm – Foreign Investors: 'Carts become ships, ships become carts' This will suit Indian companies as well as Indian companies. In the past, the Indian companies that grew well with the times.. As the times changed, some of the companies they bought were unable to generate income or invest in them and went for sale. Some were sold below cost.

The situation of companies like 'Tata Motors' and 'Motherson Sumi' is different. They have become international giants through acquisitions. But Britain's departure from the European Union threatens to undermine these gains. Most of the businesses and profits for these companies come from Europe, but if Britain leaves the EU, those companies should set up offices in Britain as well as in the EU. Permits become more difficult, costs increase, and that affects sales and profits. Let's find out how the takeover of any company has changed in this background..

1. Tata Steel-Corus

Tata Steel bought the Anglo-Dutch steel giant 'Corus' in 2007 at a loss of Rs.20 thousand crore from the Fortune 500. With this, Tata Britain entered the steel sector. Tata was showered with emotional congratulations for buying a British company that saw them as slaves. Tata Steel has been battling Brazil's CSN for months for Corus. It has spent more than 14 billion dollars. Closest rival company CSN managed to bid less than 5 pence. That is just five rupees in our currency. And so took over the chorus.

Tata has emerged as the 5th largest steel maker in the world with an annual steel production capacity of 25 million tonnes. It became the first Indian company to make it to the Fortune 500 list of multinational companies. But the joy of this 5 pence victory did not last long. The rate of steel (hot rolled coils) fell to 380 in 2016 from 550-575 dollars per tonne in 2007. On the one hand, the huge loans raised for the purchase of Corus, on the other hand, the company's losses have suffocated Tata Steel.

The situation worsened with the addition of the international financial crisis. The Tata Group lost 2 billion pounds (roughly Rs. 20,000 crores) as demand declined and prices fell. Decided to sell Chorus. No one came forward to demand or buy. As a result, Long Steel was able to sell the business and associated plant. He is looking to manage the rest of the business himself.. There is a risk of being crippled by Brexit Tata Steel's takeover of British company Corus was a sensation. But selling UK assets at huge losses.

2. Mittal Steel – Arcelor

Lakshmi Niwas Mittal, who emigrated from India, became a steel merchant in Britain. He is operating out of the Netherlands. Luxembourg-based Arcelor Steel was acquired by Mittal Steels in 2006 for $32 billion. With this combination, the world's No. 1 steel company emerged. With this, India is once again the world's No. 1 in terms of business. The Indians were shocked to emerge as 1.

The slowdown since 2008 has hit ArcelorMittal hard. Demand for steel fell. Due to this, the production of the ninth out of 25 blast furnaces of the company has stopped. Two furnaces closed in France. In the same year, Taluk saw its European business undervalued by $4.3 billion. Less than two years ago, it sold shares in the company for $770 million. Apart from closing the central Trinidad plant, it has also decided to sell two plants in the US.

3. Essar Global – Refinery in Stan

In 2011, it acquired the Stanlow refinery in Britain. Till then the refinery was owned by 'Shell'. Essar spent 350 million dollars for this. Essar Oil has so far invested 1.2 billion dollars on the refinery. The old plant, which was in a poor state in the past, has grown into one of Britain's refineries. It supplies 16 percent of the fuel used for transportation in the country.

4. Havells- Sylvania

'Havels' is a desi giant that has expanded abroad with its center in Rajasthan. In 2007, Havells bought Sylvania, a European company one and a half times its size, for $300 million. The deal turned out to be a problem for the company. Havells, which rose from Rs.100 crores in 2000 to Rs.1,600 crores in 2006. Attempts to buy foreign companies worth 60-70 million dollars failed. At the same time Sylvania's offer worth 5 to 6 rates came. With this, Havells took a step forward to spend 300 million dollars. The currency exchange rate at that time was Rs. Havels, who spent Rs 2,000 crore, then poured in another Rs 1,000 crore. But as sales and financial conditions did not come together, 80 percent share was given to 'Shanghai Failo Acoustics' at Rs. 1,340 crores sold.

5. Sri Renuka Sugars- Dubresil

'Srirenuka Sugars' is a sensation. This organization, which started by uniting the farmers in Karnataka, gained international fame in a short period of time. This company is one of the world's largest companies in sugar manufacturing. In 2010, it acquired Brazil's Brasil for Rs.1,312 crore. This is the first time that an Indian sugar company has acquired a foreign company. Exactly one year later in 2011, and then again in 2014, a drought in Brazil hit the company hard. Brazil's economic conditions worsened and sugar prices fell. With these developments, Renuka Brazil had to file a bankruptcy petition.

6. Airtel- Jain

Airtel is an established company in the country's telecom sector. Efforts have been made to expand abroad. Tried to buy MTN, an African telecom company, but failed. An opportunity came in the form of Kuwait Telecom Company 'Zain'. The company has proposed to sell its telecom business in 17 countries in Africa. Looking for an opportunity, Airtel bought it in 2010 for $10.7 billion (roughly Rs. 73,211 crore). Airtel slowly realized the situation as it would make huge profits if it did some exercise.

Learned that receiving MTN in Africa is not easy. Since 2012, it has outsourced its networks and IT operations to reduce financial burden. In the December quarter of 2015, the Africa unit announced a loss of 74 million dollars (roughly Rs. 506 crores). Airtel sold operations in Sierra Leone and Burkina Faso to French telecom company Orange in January 2016. In October 2015, it sold 8,300 towers in Africa for $1.7 billion (about Rs 11,000 crore). Tagaga also entered into an agreement to sell the remaining 3,700 towers and exited the towers business.

7. Tata Motors- JLR

Tata Motors has been dealing in heavy vehicles since its inception. In 1998 Rs. Lakh launched the Indica car in the market. This caused a lot of damage. It would be better to close the car business. The management of Ford came to the Tata office in Mumbai after learning about the matter. Called to come to Detroit. In 1999, the Tata team moved to Detroit. Why did you come into this business without experience? Now buy your business to help you..?' They insulted him. The Tata team told the matter to Ratan Tata.

After nine years.. in 2009, Tata bought Jaguar and Land Rover brands of the same Ford. As part of this deal, Ford Motors chairman Bill Ford said 'they have done us a big favor by buying our JLR'. Like this.. Tata Motors took revenge for the insult done to them in Detroit. When Tata went to buy the world's favorite luxury brand, JLR, there was an outcry. A company that makes a million nano cars! How to manage international luxury brands? Is it because of Tata that it is not because of Ford?' Criticism and lip service but Ratan Tata did not give up.

Acquired JLR brands in 2008. They were turned around. Sales increased. Those who criticized it are the ones who shut their mouths. JLR is making billions of pounds in profits for Tata Motors. Tata has proved that they can make a lakh dollar car, not just a lakh car.

8. Paytm

In 2016, Paytm entered the Indian market with the decision of demonetisation and the use of digital money. It attracted the Indian market tremendously with big announcements. Grown in a short time. Payments Bank was also started. But Paytm Bank has stopped its services in the Indian market in the wake of the restrictions imposed on it that it goes against some guidelines decided by the RBI.

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