Impact Of Foreign Acquisitions On 7 Indian Companies' Stocks
6. HCL Technologies
The $658 million acquisition of Axon by HCL Technologies in 2008 pushed the Indian company to the top 10 SAP services provider in the world. The combination of Axon’s expertise in SAP implementation and HCL Technology’s strength in infrastructure management won them many big deals and helped the Indian company to grow at a collective annual rate of 22 percent in the last three years till December 2012. This is one of the fruitful acquisitions not hurt by the 2008 crisis.
7. Renuka Sugars
The calculation of Renuka Sugars while acquiring Brazilian subsidiary might have been correct but nature played its mysterious role and the acquisition went for a toss. In 2010, two acquisitions worth $1.3 billion were made by Renuka, hoping that the different season of crane crushing of the two countries will complement each other and boost sugar production. However, the drought in Brazil in 2011 spilled water at Renuka’s high hope and left the Indian company huge debts.
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