Wednesday, January 31, 2007

The take-over

Everyone knows 'bout THE take -over. Actually i should not be using THE for the Tata- Corus deal as bigger one was the Mittal. Still the steel progress is beyond my comprehension! This might sound foolish as all know that rank 1st, 2nd and now new 5th are Indians in the Steel industry. What i don't understand yet is how is all this going to improve the Indian scenario? As far as i know, we still are to go miles and miles in improving the steel involvement in Indian 'everything' meaning the rail-roads etc etc.. I know this is my sheer ignorance but this troubles me. It's something like going way ahead in theory n not knowing the practical applications of it. If any one really knows how all this is going to improve the Indian scenario, please post that in comments.

3 comments:

Shruti said...

I was disappointed to see such a pessimistic approach to such great step of Indian Economy. Firstly, I don't think that making railroads of steel (when we have iron ones :) ) is gonna help India progress. I'm not sure whether they can be even made of steel for that matter!!

Secondly, we have miles to go before the Indian Scenario improves, but it has to start with some step. I feel that these recent developments have put India in a new light as far as world economy goes and has given us a new & improved status too. It has helped increase my confidence in this country - It IS going ahead!

And I hope with this inspiration I can help India become a better country and I'm sure so can every citizen of this country!

Cheers!

Nandini said...

hello shruti!
Sorry i can't really figure out who u r but thanx 4 the comment. To be frank, i have no approach at all as i knw nthng 'bout ths field at all.. purpose of posting ths was learning aspects of such deals whch i don't knw.
:)

Blue Eyed Devil said...

You see Nandini, Mergers & Aquisitions are mostly done to put a local company on a global map..Tata bought Corus to out themselves on the global map..to have a worldwide presence...And use Corus resources and their production facilties in various countries to increase their market share...Simple business srategy!As for it benefiting India, well, it WASNT done to "benefit" India per se...If it does benefit us somehow, bonus!

[P.S.: For Shruti's information, Iron and steel are only diffrentiated by the amount of carbon in them...upto 4.3% C, it is steel..Beyond 4.3% C, it is Iron]