SYNOPSIS

Study on merger and acquisition in automobile sector

The recent changes and developments in the global auto sector have made its impact on the Indian market and manufacturers too. India in global auto sector has made its presence felt in the recent years with its potential. India offers scope for the manufacture of low cost vehicles with its highly skilled but inexpensive manufacturing base, labour intensive components and developing economy. The automobile industry in India is one of the pillars of the Indian economy. It has recorded sales of USD 4000 mn and involves investments of a whopping USD 3500 mn by as many as 400 investors. It has also been instrumental in employing a huge work force, close to 2.5 lakh people. In order to determine the position of India in the global auto sector, one needs to go back to the initial days of its growth. Before the policy of liberalization was introduced, the component manufacturers practically remained unscathed during the recession periods. The component and vehicle manufacturers shared an uncomplicated relationship. There were no significant investments in development of products or in research and development. The closed automobile market had a few big names and the development of the market was restricted by limited number of suppliers.

Objective of the study on merger and acquisition

>>> The immediate objective of merger and acquisition is to find out their self-evidently growth and expansion of the acquirer's assets, sales and market share. >>> To analysis why the companies/ corporate looking to go global as the foremost requirement.
>>> What are the crucial decision which the target company or the acquirer company takes during the process of merger and acquisition?

>>> How the automobile companies dealing in respect of legal laws of merger and acquisition? >>> Clarifying of main objective of the merger and acquisition of the automobile companies. >>> Defining ideal company description so that as to acquired depth knowledge about the various mergers and acquisitions in the automobile sector. >>> Apart from the defined company analyses of the other competitors in this sector.

Research methodology
In this study the research will be done on various automobile companies, their mergers and acquisitions with other auto companies, the research will be conducted on the basis of the current scenario and current mergers and acquisition in the auto sector. >>> The research will be done by the available financial data. >>> The study will be done through the strategical growth techniques and models so as to find out the strategies adopted & the motives/ intend behind such a merger and acquisition. The models that may be used are: BCG Matrix Ansoffs growth model; etc. Other statistical tool may be used to feature various datas. Such as: Bar charts, or Line charts, or Pie- charts; etc

Conclusions
Mergers and acquisitions in India have grown on a rampant scale after the introduction of the takeover code. This has created a market for M&A and M&A specialists in the form of consultants, merchant bankers, managers, etc. Corporate India has been quick to grab the opportunity and try for the maximum success rate. In a short time, it has also been learnt that Mergers and acquisitions are not a panacea for corporate ills. Negotiated takeovers with the proper synergy to back them and managerial willingness to manage the process smoothly have resulted in the few successes that were seen in India.