The year 2004 was the time for acquisitions for India Inc which went on a buying spree, spurred by the quest for globalisation and buoyant on robust market conditions.
An urge to offer cost-competitive products both in domestic and international markets and shore-up resources were also the reasons for lapping up overseas companies.
The Tata group was on the forefront of acquisitions with two major deals - snapping up of Tyco Global Network by Videsh Sanchar Nigam Ltd (VSNL) and acquiring Singapore-based NatSteel by Tata Steel Ltd - even as the group subsidiaries like Tata Motors Ltd and Tata Tea Ltd also pitched in with takeovers during the year.
Tata Steel's acquisition of Singapore-based NatSteel in August topped the charts for the group in 2004 as it was bought for a whopping Rs 1,313 crore. The buy also included a 26 per cent stake owned by Southern Steel Berhad, a Singapore government-owned steel-manufacturer based in Malaysia.
Tata Steel managing director B Muthuraman said it would help the company expand its manufacturing footprint to seven countries in Asia, including Vietnam, Singapore and Thailand, and provide an easier access to the emerging Asian markets.
NatSteel would spin-off its entire steel business into a wholly-owned subsidiary - NatSteel Asia Pte Ltd , which would be acquired by Tata Steel, Muthuraman said.
{{/usCountry}}NatSteel would spin-off its entire steel business into a wholly-owned subsidiary - NatSteel Asia Pte Ltd , which would be acquired by Tata Steel, Muthuraman said.
{{/usCountry}}However, what was more interesting was Muthuraman's statement that the company was open to further acquisitions both in India and abroad.