Another example: a merger of Reliance Industries Limited with Reliance Petrochemicals Limited.
Which comes in handy for high-cost, long gestation projects. Merging companies such as Tata Chemicals Limited and Associated Cement Companies would help raise resources. How Companies Can Ride The BullĬonsolidation and Mergers: For sourcing global money markets, group image and size would have to be projected. Besides, industry is currently grappling with a slump, as the growth rate for 1991-92 is estimated at minus 0.8 per cent. The Government is still strapped for cash, notwithstanding the accounting jugglery the finance minister has indulged in to stick to IMF benchmarks on fiscal deficits.įinancial institutions haven't much money and although the RBI has freed more bank funds by lowering the statutory liquidity ratio (SLR), interest rates are still prohibitively high for industry. With back-to-back budgets, the wily Singh is trying to move the country on one path: economic growth, without tampering with the politically necessary behemoths such as the bureaucracy, labour and the agricultural sectors, and upsetting the political equations which keep the Congress(I) Government in power. He also hopes that industry will take the cue from keen investors - the tribe is expected to almost treble from the present 1.5 crore in the next five years - and plug the funding problems that Singh himself has perpetuated in a bid to tone up India's inefficient credit system as well as industry. This is precisely the sort of thing that Manmohan Singh wants to hear - from the share crazy western state and the rest of the country. "The market had to be freed from too much policing and a daddy-knows- best attitude."
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