Business Daily from THE HINDU group of publications
Sunday, Dec 02, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Sunday, Dec 02, 2007 ePaper | Mobile/PDA Version |
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Corporate
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Mergers & Acquisitions ‘Partnering in value creation vital for global acquisitions’ “Real challenge in Hindalco-Novelis case was in drawing the roadmap,” says Mr Debu Bhattacharya Jayanta Mallick Kolkata, Dec. 1 For acquisitive Indian companies, the size of the target may not be much of a consequence, but complexities are. According to Mr Debu Bhattacharya, Managing Director of Hindalco and Vice-Chairman of Novelis, this is one of the key experiences of Hindalco in acquiring Novelis. Speaking here on ‘Going global — The challenges of managing acquisitions overseas’ at the three-day conference, organised by the National HRD Network, Mr Bhattacharya described the acquisition of $6-billion Novelis by $4-billion Hindalco as “audacious” but said the real challenge was in drawing the roadmap depending on the strengths as also the weaknesses of the two entities. Jury was still out on the six months of experience in integration, but he felt that the first challenge was to ensure that it was not a square peg in a round hole. Instead of working towards immediate synergy, an approach of partnering in value creation could work better in cases of global acquisitions, he added. “In India we are used to beating nameplate capacities but in Novelis we found the culture was to respect it,” Mr Bhattacharya said. Mutual learningWhile innovation and execution capabilities were key learning for the Indian company, corrective measures or realignment in the areas of asset sweating, better risk management, planning, and cost efficiency were being carried out for the acquired global entity. “Novelis needs correction in its value-price-cost equation”, he said. More Stories on : Mergers & Acquisitions | Overseas Investments
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