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Synopsis of Project

Title: Study of Mergers and Acquisitions in the Industry Sector with special Reference to TATA STEEL and COURS GROUP

MR. ASHISHKUMAR. A. PATEL. MMS II nd Year (FINANCE) (Roll No. - MS1011055)

Project Guide: PROF. Rajshree Shrivastav (Professor IMCOST)


Introduction of project
We have been learning about the companies coming together to from another company and companies taking over the existing companies to expand their business. With recession taking toll of many Indian businesses and the feeling of insecurity surging over our businessmen, it is not surprising when we hear about the immense numbers of corporate restructurings taking place, especially in the last couple of years. Several companies have been taken over and several have undergone internal restructuring, whereas certain companies in the same field of business have found it beneficial to merge together into one company. In this context, it would be essential for us to understand what corporate restructuring and mergers and acquisitions are all about. All our daily newspapers are filled with cases of mergers, acquisitions, spin-offs, tender offers, & other forms of corporate restructuring. Thus important issues both for business decision and public policy formulation have been raised. No firm is regarded safe from a takeover possibility. On the more positive side Mergers & Acquisitions may be critical for the healthy expansion and growth of the firm. Successful entry into new product and geographical markets may require Mergers& Acquisitions at some stage in the firm's development. Successful competition in international markets may depend on capabilities obtained in a timely and efficient fashion through Mergers & Acquisitions. Many have argued that mergers increase value and efficiency and move resources to their highest and best uses, thereby increasing shareholder value.

Merger is defined as combination of two or more companies into a single company where one survives and the others lose their corporate existence. The survivor acquires all the assets as well as liabilities of the merged company or companies. Generally, the surviving company is the buyer, which retains its identity, and the extinguished company is the seller. Merger is also defined as amalgamation. Merger is the fusion of two or more existing companies. All assets, liabilities and the stock of one company stand transferred to Transferee Company in consideration of payment in the form of: Equity shares in the transferee company, Debentures in the transferee company.

Acquisition in general sense is acquiring the ownership in the property. In the context of business combinations, an acquisition is the purchase by one company of a controlling interest in the share capital of another existing company.

Tata Steel
Tata Steel (BSE: 500470) (formerly TISCO and Tata Iron and Steel Company Limited) is a multinational steel company headquartered in Jamshedpur, India and part of Tata Group. It is the world's seventh-largest steel company, with an annual crude steel capacity of 31 million tones, and the largest private-sector steel company in India measured by domestic production. Tata Steel is also India's second largest and second-most profitable private-sector company, with consolidated revenues of 118,753 crore (US$26.13 billion) and net profit of over 8,983 crore (US$1.98 billion) in the year ended March 31, 2011. Tata Steel is the eighth most-valuable Indian brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010. It is currently ranked 410th in the Fortune Global 500. Tata Steel's largest plant is located in Jamshedpur, Jharkhand, with its recent acquisitions, the company has become a multinational with operations in various countries. The registered office of Tata Steel is in Mumbai. The company was also recognized as the world's best steel producer by World Steel Dynamics in 2005. The company is listed on Bombay Stock Exchange and National Stock Exchange of India, and employs about 82,700 people (as of 2007). In August 2007 Tata Steel won the bid to acquire the UK-based steel maker Corus in what was, to date, the largest international acquisition by an Indian company. It made the Tata Group the world's fifth largest steel maker, and catapulted them to the global league.

Corus Group
British Steel Corporation was a large British steel producer, consisting of the assets of former private companies which had been nationalized on 28 July 1967 by the Labour Party government of Harold Wilson. On 5 December 1988 the company was privatised as a result of the British Steel Act 1988. Koninklijke Hoogovens was a Dutch steel producer founded in 1918, located in IJmuiden. Corus Group is a multinational steel-making company headquartered in London, United Kingdom. It is the second-largest steel-maker in Europe and is a subsidiary of Tata Steel of India, one of the ten largest steel producers in the world. Corus Group was formed through the merger of Koninklijke Hoogovens and British Steel on 6 October 1999 and was a constituent of the FTSE 100 Index until it was acquired by Tata in 2007. On 27 September 2010 Corus announced it was changing its name to Tata Steel Europe and adopting the Tata corporate identity.

1. Scope of the project

(1) The Project study is about the Industry sector. (2) It consists of the impact of Mergers and Acquisitions in Industry. (3) It also helps the strategies for survival and growth of the Industry sector. (4) It is relevant to inflows and outflow of Industry sector in India.

2. Objective of the study

(1) To get an understanding of the Industry sector. (2) To find out if the mergers and acquisitions have helped the Industry sector to improve their financial performance. (3) Analyze parameters like Earning per share to know the impact of Merger and Acquisition on shareholders. (4) To find out basis of Mergers and Acquisitions. (5) To trace it out the related issues in both pre and post merger case. (6) To study why the Industry are going towards Mergers and Acquisitions. (7) To study the measures taken by the government to increase Merger and Acquisition in Industry sector.


Research Methodology

Research is one kind of process to get knowledge about some topic. Research is done so that systematic analysis can be done and problem can also be solved.

The title of Study

Here it is Study of Merger and Acquisition in the Industry Sector, with special reference to TATA STEEL and CORUS GROUP

Benefits from the study

(1) It helps to know detail about Merger and Acquisition and the situation when the Industry involved in Merger and Acquisition. (2) It helps to know the strategies adopted by Industry to Takeover other Industry and understand SBEI guideline to Merger and Acquisition in Industry Sector.

Research Design
Here the research design is exploratory which helps to explore the Mergers and Acquisitions of Industry Sector.

Research Instrument
As a research instrument had been taken guidance from college Professor.

Data Collection
Secondary Data Hence it is an exploratory research there is not any dependence on primary data.

Sources of Secondary data

(1) Website (2) Books

Analysis and Report writing

Here, done ratio analysis and used various chart for analysis purpose and also written report on it.

3. Limitation of Project

(1) The study was restricted only to Merger and Acquisition of Industry Sector.. (2) The study was conducted mainly through secondary data.

(3) The data collected and subsequent study is restricted for specific time frame.

4. Direction for Future

(1) The Project of Merger and Acquisition of Industry sector gives the direction of future research. (2) This research gives knowledge about every aspect of Merger and Acquisition. (3) It gives the direction about how Merger and Acquisitions helps of Industry to grow their business profit and survive from losses.