Impact Of Foreign Acquisitions On 7 Indian Companies' Stocks

4. Tata Motors

Out of the successful acquisitions, the Tata Motors acquisition of British carmaker Jaguar-Land Rover is worth a mention. The acquisition was worth $2.3 billion and proved to be a life saver for Tata Motors, with its domestic demand declining at a fast pace. In 2012-13, the British subsidiary contributed about 90 percent of the parent company’s operating earnings. JLR’s performance helped to raise the consolidated revenue by 10 percent in the same year.

5. Bharti Airtel

The Indian telecom operator, Bharti Airtel is still struggling to recover the purchase price of about $9 billion, spent to acquire the African operations of Kuwait’s Zain in 2010. Since the acquisition, the Indian telecom company is reporting heavy loss and the net loss widened to 485.7 crore in March quarter. Although the African subsidiary is currently a drag on Airtel’s balance sheet, the parent company is optimistic about the performance of its overseas subsidiary and expects cash flow once the capital expenditure comes down.

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