Steel ball rolling and picking up momentum
Friday, October 27, 2006
Lakshmi Mittal started the trend and has also encouraged the rest of the Indian steel Industry by now. “The Economist” magazine puts it this way “The Indians are coming—to buy Western companies” (subsription maybe required from economist.com) which is another way of saying “Emerging Giants are coming” as Businessweek puts it. Economic Times just reported that “Reliance Retail has decided to simultaneously foray into international markets. Identified countries include Sri Lanka, Nepal, China, Vietnam, Cambodia, Indonesia, Philippines, Maldives, Kenya, Myanmar, Nigeria, Ghana and Tanzania.” Reliance will be involved in retail market segments like consumer durables.
The Indian companies are on a shopping spree all over the world increasing the number of tentacles in various continents. “The Economist” also mentions that Bharat Forge, the world's second-biggest maker of forgings for engine and chassis components, based in Pune, has bought six companies in four countries viz. Britain, Germany, Sweden and China. Suzlon, another Pune based firm, which makes wind turbines, this year bought Hansen, a Belgian gearbox-maker. While Bangalore based liquor baron Vijay Malya of United Breweries, has made an unsolicited bid for Whyte & Mackay, a Scottish whisky distiller.
Sure they also think that behind this shopping spree lies the various factors: like domestic boom, easy financing options and the boosted self-confidence of the Indian industry. Six years ago a common citizen thought that it was just an IT boom and later was happy to see the bust in 2001 if he was not part of that boom. However the IT companines managed to prove it otherwise. And the Indian government was silently smiling and thinking of the year 1991 when the reforms were first made. Sure it was the IT companies that first enjoyed the reforms, but the wave has caught on to the other sectors as well. It is just a matter of time.
posted by Webmaster @ 6:00 AM,
