Unilever's Takeover in Indian Market

In personal care products, (skin care products and cosmetics) Unilever achieved a significant expansion within a short span of time through the takeover route. Lakme was the additional . For this Unilerver formed a 50:50 JV with Lakme and formed a marketing company.

Indian Corporate Leader

Successful Indian corporates having global aspirations and their global footprints.

JRD Tata
Born: July 29, 1904
Died: on November 29, 1993
Achievements: He had the honor of being India's first pilot; was Chairman of Tata & Sons for 50 years; launched Air India International as India's first international airline; received Bharat Ratna in 1992.

JRD Tata was one of the most enterprising Indian entrepreneurs. He was a pioneer aviator and built one of the largest industrial houses of India.

JRD Tata was born on July 29, 1904 in Paris. His mother was a French, while his father was Parsi. JRD's full name was Jehangir Ratanji Dadabhoy Tata and he was popularly known as Jeh to his friends. JRD's father Ratanji Dadabhoy Tata and Sri Jamsetji Tata shared their greatness from the same great-great-grandfather, Ervad Jamsheed Tata, a priest of Navsari.

JRD Tata was the second of four children. He was educated in France, Japan and England before being drafted into the French army for a mandatory one-year period. JRD wanted to extend his service in the forces but destiny had something else in store for him. By leaving the French army JRD's life was saved because shortly thereafter, the regiment in which he served was totally wiped out during an expedition in Morocco.

JRD Tata joined Tata & Sons as an unpaid apprentice in 1925. He has great interest in flying. On February 10, 1929, JRD became the first Indian to pass the pilot's examination. With this distinctive honor of being India's first pilot, he was instrumental in giving wings to India by building Tata Airlines, which ultimately became Air India. His passion for flying was fulfilled with the formation of the Tata Aviation Service in 1932.

In 1938, at the age of 34, JRD was elected Chairman of Tata & Sons making him the head of the largest industrial group in India. He started with 14 enterprises under his leadership and half a century later on July 26, 1988, when he left , Tata & Sons was a conglomerate of 95 enterprises which they either started or in which they had controlling interest.

JRD was the trustee of Sir Dorabji Tata Trust from its inception in 1932, which remained under his wings for over half a century. Under his guidance, this Trust established Asia's first cancer hospital, the Tata Memorial Center for Cancer, Research and Treatment, Bombay, 1941. It also founded the Tata Institute of Social Sciences, 1936 (TISS), the Tata Institute of Fundamental Research, 1945 (TIFR), and the National Center for Performing Arts.

Unilever Groups - Merger and Takeover

Unilever group in India servers as the best example in this respect. The group, as a matter of conscious policy , chose takeovers/ mergers as the preferred route for growth. It suited its strategy of rapid expansion in each of its business in India.Some Unilever's Merger in Indian market.

Distinction between mergers and acquisitions

Although they are often uttered in the same breath and used as though they were synonymous, the terms merger and acquisition mean slightly different things.

When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. From a legal point of view, the target company ceases to exist, the buyer "swallows" the business and the buyer's stock continues to be traded.

Classification of Mergers

Horizontal merger - Two companies that are in direct competition and share similar product lines and markets (eg: Sirius/XM)

Merger

In business or economics a merger is a combination of two companies into one larger company. Such actions are commonly voluntary and involve stock swap or cash payment to the target.

Acquisition

An acquisition, also known as a takeover or a buyout, is the buying of one company (the ‘target’) by another. An acquisition may be friendly or hostile. In the former case, the companies cooperate in negotiations; in the latter case, the takeover target is unwilling to be bought or the target's board has no prior knowledge of the offer.

Acquisition usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of a larger or longer established company and keep its name for the combined entity.

Dhirubhani Ambani

Dhirubhai Ambani
Born December 28, 1932 Chorwad, Gujarat, British India
Died July 6, 2002 (aged 69) Mumbai, Maharashtra, India
Occupation Industrialist/Entrepreneur
Net worth ▲ US$6.10 Billion
Religious beliefs Hindu
Spouse(s) Kokilaben Ambani
Children Mukesh Ambani Anil Ambani Nina Kothari Deepti Salgaonkar

Famous quotes

From beginning Dhirubhai was seen in high-regard. His success in the petro-chemical business and his story of rags to riches made him a cult figure in the minds of Indian people. As a quality of business leader he was also a motivator. He gave few public speeches but the words he spoke are still remembered for their value. " With the force of 3 * "Give the youth a proper environment. Motivate them. Extend them the support they need. Each one of them has infinite source of energy. They will deliver."

• "Between my past, the present and the future, there is one common factor: Relationship and Trust. This is the foundation of our growth"
• "We bet on people."
• "Meeting the deadlines is not good enough, beating the deadlines is my expectation."
• "Don't give up, courage is my conviction."
• "We cannot change our Rulers, but we can change the way they Rule Us."
• "Dhirubhai will go one day. But Reliance's employees and shareholders will keep it afloat. Reliance is now a concept in which the Ambanis have become irrelevant."

Bibliography

• Yogesh Chabria. Invest The Happionaire Way (CNBC, 2008).

Initial public offering

Dhirubhai Ambani is credited with starting the equity cult in India. More than 58,000 investors from various parts of India subscribed to Reliance's IPO in 1977. Dhirubhai was able to convince large number of small investors from rural Gujarat that being shareholders of his company would be profitable.

Reliance Industries was the first private sector company whose Annual General Meetings were held in stadiums. In 1986, The Annual General Meeting of Reliance Industries was held in Cross Maidan, Mumbai and was attended by more than 35,000 shareholders and the Reliance family.

Dhirubhai managed to convince a large number of first-time retail investors to invest in Reliance. Ambani's net worth was estimated at about Rs.1 billion by early 1980s.

His successful business secrects

1: Gather information, whatever it may be. Gather information about Governments be local, state, central or international. Gather information about products, companies, consumers, markets, people, services, politics any thing, just anything and everything. Do not forget to get information of your competitors. Dhirubhai Ambani had mastered this secret. It was in his practice to gather information about anything and every thing

2: Find an opportunity. He always endeavour to analyze whatever information gathered. He did that in a way that convert information into an opportunity, a profit making opportunity. According to him, " There is no invitation for making profit". You have to find it. He always searched for news and information, a news or information that can make him profit.

3: Complete projects on time. Thrive to do it before the scheduled time. He and his sons completed all their projects on time, mostly before time. However big the projects were, they completed those timely. No matter how much disturbance or hurdles came in their way.

4: Think big. Think global. He thought global much before the globalisation took place.Most of the Indian companies were not doing well in the global scenario at his time. Most of the Indian companies were not acting with global standards. He made world class projects and world class factories. No body in India could even think about that in his time.

5:Hire the best people. Pay them well. Dhirubhai Ambani was able to employ the best people, top ranking masters of their respective fields. He was the best pay master of his time. He never compromised in Quality and timeliness. Only those top ranking masters could make it possible. Human resource is the best resource, according to him.

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