SATYAM: ON THE PATH OF EVOLUTION

The fraud at India’s fourth largest software exporter, Satyam Computer Services Ltd, has kick started a Darwinian consolidation among top-tier Indian IT companies as they pitch for Satyam, in part or whole. The company is still reeling under the revelation of $2 billion fraud by its founder on January 7.

Various companies are in the fray to acquire the company either in part, depending on their core business, or in its entirety. These include, the IT arm of India’s largest engineering company Larsen & Toubro Ltd; fifth largest Indian IT company HCL Technologies Ltd; diversified conglomerate Essar Group; London-based diversified Indian conglomerate Hinduja Group; Indian IT company i-Gate Global Solutions; and Spice Group.

The Indian IT industry is in the next stage of evolution, which commenced with the emergence of a number of companies establishing themselves as industry leaders by virtue of expertise in a certain domain, big clients’ accounts and sheer geographical spread. What now follows is the second stage of evolution, that of, consolidation which will involve mergers and acquisitions (M&As) that will shrink the number of companies in the top tier.

A new wave of M&As will be triggered by the acquirer’s business objectives to expand into new markets and new customers, high-end intellectual property of either process technology or product technology and also to garner new skill sets.

DEAL DONE, NOW FOR THE DEALS

From steam turbines to high-technology reactors, India’s power sector companies are set to reap a bonanza after the government, last weekend, won backing of the 45-nation Nuclear Suppliers Group to trade in atomic fuel and technology in the global market.

Companies like BHEL, NTPC, Tata Power and Larsen and Toubro are eyeing a raft of high-value contracts and joint ventures, the promise of which fuelled a stock rally on Monday. The Bombay Stock Exchange’s 30-share Sensex rose 461 points, or 3.2 per cent, on the back of a surge in stocks of power and equipment manufacturing companies.

Hindustan Times

RIL, Reliance Cap among Asia's 20 best for future investor returns

Seven Indian firms, including Reliance Industries and Reliance Capital from the two Ambani groups, have been named among Asia Pacific's 20 best companies in terms of expected investor returns over next five years.

The Economic Times
http://economictimes.indiatimes.com/Market_Analysis/
RIL_Reliance_Cap_among_Asias_20_best_for_future_investor_returns/
articleshow/2812588.cms

Foreign cos dominate highway project bids

Foreign bidders dominated the latest round of bidding for national highway projects, winning three of the five stretches on offer. This is the first time foreign companies won more bids than domestic ones; the five projects are together worth an estimated Rs5,390 crore.

MINT
http://www.livemint.com/2008/01/09000710/
Foreign-cos-dominate-highway-p.html