Yearender 2024: Major Mergers And Acquisitions Reshaping India’s Corporate Landscape

In 2024, India’s corporate sector saw market fluctuations, key mergers and acquisitions, transforming the business landscape, writes ETV Bharat’s Saurabh Shukla.

New Delhi:The year 2024 has been a dynamic one for India’s corporate world, with ups and downs in the market, alongside many significant reports. In addition to this, there were numerous mergers, demergers and the rise of more efficient companies that grabbed everyone’s attention. A series of high-profile mergers and acquisitions across various industries have taken place, signalling important changes in the country’s business landscape.

Pronab Sen, an economist and former Chief Statistician of India, shared his insights with ETV Bharat, noting that the reasons behind mergers depend largely on the sector and the individual company’s ambition to grow. He pointed out that the motivations for mergers can differ. One key reason is the desire to expand. During periods of market slowdowns, companies may look to acquire others at more favourable prices. Another reason is the ambition to become a dominant player in the industry, where companies buy up competitors to solidify their position as leaders in the market.

The Indian corporate landscape in 2023 has been marked by a flurry of significant mergers and acquisitions, creating waves across various sectors. These moves reflect the country’s evolving business environment and the growing trend of companies coming together to increase their scale and efficiency.

Viacom18–Star India:Viacom18 and Star India have joined forces to create India’s largest media and entertainment powerhouse. This new entity, named Jio Star, is valued at around Rs 70,352 crore ($8.5 billion) and will manage over 100 TV channels and two major streaming platforms, JioCinema and Hotstar. The merger, approved by Reliance Industries and The Walt Disney Company, marks a new chapter in the Indian media industry.

Tesla–Tata Electronics:Tesla has struck a deal with Tata Electronics, committing $2 billion to expand its operations in India. The company is eyeing Gujarat and Maharashtra as potential locations for its plant, aligning with India’s new Electric Vehicle (EV) policy, which encourages global manufacturers to set up shop in the country. This partnership underscores India’s ambition to become a global EV manufacturing hub.

ATC Telecom–Data Infrastructure Trust (DIT):In another major deal, Data Infrastructure Trust (DIT) acquired ATC Telecom Infrastructure Private Limited, a key player in passive telecom infrastructure services in India. This acquisition was approved by the Competition Commission of India (CCI) in August 2024, marking a strategic move to enhance telecom infrastructure in the country.

Adani Group–Penna Cement:Adani Group has made a significant entry into the cement industry by acquiring Penna Cement Industries Ltd for Rs 10,422 crore. This acquisition further strengthens Adani’s presence in the building materials sector, positioning it as a leading player in India’s growing construction industry.

Dr Reddy's Laboratories–Haleon’s NRT Portfolio:Dr Reddy’s Laboratories has invested $620 million to acquire Haleon’s global nicotine replacement therapy (NRT) portfolio outside the U.S. Through its Swiss subsidiary, the company is set to strengthen its consumer healthcare presence, adding well-known brands like Nicotinell to its offerings.

Kotak Mahindra – Sonata Finance:Kotak Mahindra Bank has acquired Sonata Finance, a microfinance company with an extensive reach across 10 states. The deal, valued at Rs 537 crore, allows Kotak Mahindra to tap into the growing microfinance sector in India, adding new capabilities to its already diverse financial services.

IDFC First Bank – IDFC:IDFC First Bank and IDFC Ltd have merged to streamline their corporate structure and improve efficiency. The merger, effective from October 1, 2024, offers shareholders a favourable exchange ratio, marking a significant move toward simplifying operations and enabling dividend payouts.

Warburg Pincus–Shriram Housing Finance:Warburg Pincus has acquired Shriram Housing Finance from its promoters and other minority stakeholders for Rs 4,630 crore. This deal is the largest in the housing finance sector, signalling growing interest in India’s affordable housing market.

Brookfield India Real Estate Trust – Bharti Enterprises:Brookfield India Real Estate Trust (BIRET) has signed an agreement to acquire a 50% stake in four Grade A commercial properties from Bharti Enterprises. This acquisition, valued at approximately Rs 60,000 million, boosts BIRET’s portfolio, positioning Bharti as the second-largest unitholder in India’s only fully institutionally managed office REIT.

Keimed–Apollo HealthCo:Keimed, a major pharma distributor, has merged with Apollo HealthCo, a subsidiary of Apollo Hospitals. The combined entity, valued at Rs 22,481 crore, will serve over 6,000 Apollo Pharmacies and distribute to around 65,000 pharmacies across the country, solidifying its position in the healthcare sector.

These mergers and acquisitions reflect the ambition of Indian companies to expand their reach, enhance their capabilities, and strengthen their positions in key sectors, shaping the future of the country’s corporate landscape.