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Way to go Tatas January 31, 2007

Posted by Vijay in Acquisitions, Business, Steel, Tata.

First it was Mittal now its the Tatas. That makes two Indian companies at the top of the pile of steel companies (although technically speaking Mittal isnt an Indian company).

The Tatas buying Corus at a valuation of $10 Billion shows us that the “old” industry is still way ahead in terms of buying power. It will be quite a while before an Indian IT company makes a billion dollar acquisition.



1. M O H A N - January 31, 2007

Vijay you got a point there but

The capital intensive old economy definetly has high valutaions. If you and me wanted to start an IT company the investment is the best brains and not capital goods. So that makes sence why IT industry does not have such huge value aquisitions

Another parameter that is obvious here is the ROI. Its extremly high in IT industry ( NRN got back his 10K in the first order itself!) but Mittal and TATA have to wait for atleast 5 to 10 years for a break even.

2. Vijay - January 31, 2007

Mohan: Good points…

3. Veena Shivanna - January 31, 2007

Anyway, Buying power is everywhere there including wholse salers & retailers alva vijay ?

4. Vijay - January 31, 2007

Veena: True…

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