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India Inc greets Corus deal, with caution on price

Kumar Mangalam Birla felt that this deal has marked the arrival of India in the global stage, reports Prerna K Mishra.

india Updated: Jan 31, 2007 19:49 IST

Industrialists from various sectors celebrated Tata Steel's $12.1 billion buyout of Anglo-Dutch steel maker Corus Group on Wednesday -- but some laced their nationalistic optimism with typical caution on the price Ratan Tata paid for the deal.

Aditya Birla Group Chairman Kumar Mangalam Birla felt that this deal has marked the arrival of India in the global stage. "It is a defining moment for India and one feels very proud that India has started taking giant strides," he said.

"The confidence of Indian companies is at an all-time high and with this deal, the aspiration levels of India Inc. could scale even higher," Infosys CEO Nandan Nilekani told Hindustan Times.

Some industry expressed concern that the deal may lead to over-valuation in the global steel sector.

"The price paid is expensive. All steel companies may get re-rated now but it is a good deal for the industry," Jindal South West Steel Managing Director Sajjan Jindal said.

Trade chambers lined up glorious words.

"The deal demonstrates the financial muscle of Indian corporates and financial proficiency of the teams to navigate through complex international deal," said Federation of Indian Chambers of Commerce and Industry President Habil Khorakiwala.
"In an age of vertical and horizontal expansion and takeover, India has made a name for itself and particularly at a time when global integration is getting intensified, corporate houses like Tata's will bring credibility to India," ASSOCHAM President Venugopal N Dhoot added.

Public sector steel major SAIL is also celebrating Tata's success.

"We look upon this deal as a step forward towards consolidation in the global steel industry. This augurs well and will help in checking the undue volatility in the steel market, bringing about cost competitiveness through synergy," said SAIL Chairman SK Rungta.

"The Confederation of Indian Industry is confident that deals like this one would ensure that the international business community gives the respect due to emerging Indian companies," said its president R Seshasayee.

And to round it off as Bundeep Singh Rangar, the chairman of India-focused cross-border advisory firm IndusView puts it: "This 'one' deal has done more than what 190 deals did in all of last year valued at $10 billion."

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First Published: Jan 31, 2007 19:49 IST