Books by Beena Saraswathy
The Antitrust Bulletin, 2019
The Competition Commission of India approved India’s highest valued acquisition, i.e., Flipkart b... more The Competition Commission of India approved India’s highest valued acquisition, i.e., Flipkart by Walmart within the first phase of investigation itself, stating that it is ‘not likely to have an appreciable adverse effect on competition in India’. Unlike many other retail acquisitions, there has been strong protest from the traders and retailers’ organisation to stop the deal and for the creation of an exclusive E-commerce policy and the regulator. Meanwhile, the Draft National E-Commerce policy, 2018 suggested greater regulatory scrutiny for M&As that may distort competition. In this context, the present study looked into the competition dimension of the deal and other related issues. The study suggests to evolve a regulatory system with long-term vision to sustain and support the domestically grown innovations while making the competition assessment more flexible to accommodate the challenges posed by digital revolution.
JEL classification: G34, L4, G38, D4
Key Words: Mergers, Acquisitions, Restructuring, Antitrust Issues and Policies, Government Policy and Regulation, Market Structure and Pricing
Globalisation of Technology edited by N.S. Siddharthan, K. Narayanan, Springer, 2018
Often mergers and acquisitions (M&As) are approved by competition regulator(s) based on the likel... more Often mergers and acquisitions (M&As) are approved by competition regulator(s) based on the likely impact of it on innovation, which is further expected to enhance consumer welfare. During the initial years of M&As activity, the relationship between M&As and technological performance was not a major concern. During those days, the studies were focusing on the trade-off between efficiency generation and market power creation. However, there has been an unprecedented increase in the value and volume of technology-related mergers, acquisitions and alliances during globalisation with a view to minimise the cost of production and to effectively withstand market competition. Overall, the study observed that cross-border M&As are spending more for royalties and technical know-how, which indirectly indicates the continuing dependence of foreign firms on import of technology compared to in-house R&D creation in the Indian manufacturing sector.
Keywords: Market structure and innovation, Mergers and acquisitions, Anti-trust Issues, Government Policy and Regulations, Monopolisation Strategies, Innovation
JEL classification: G34, G38, L44, L12, O32
The Globalisation of Indian Business Cross border Mergers and Acquisitions in Indian Manufacturing
Routledge, 2018
Consolidation activities such as mergers and acquisitions (M&As) have been one of the major strat... more Consolidation activities such as mergers and acquisitions (M&As) have been one of the major strategies adopted by Indian firms to withstand global competition. M&As experienced a substantial increase in value and volume during the post-liberalization era, facilitated by the presence of foreign subsidiaries in the Indian market as well as competitive pressure on domestic firms. The increased foreign investment through M&As brought new dimensions to the fore such as the implications on technological performance, efficiency, and more importantly, competition in the Indian market.
The Globalisation of Indian Business: Cross Border Mergers and Acquisitions in Indian Manufacturing provides an in-depth analysis of these issues, specifically aiming to understand whether the M&As strategies helped the firms to achieve their desired objectives in terms of improvement in technology, efficiency and market power in the context of the increase of M&As in India, using appropriate statistical and econometric techniques.
The book is of additional importance in the context of the recently implemented Competition Act, replacing the thirty year old MRTP Act in India. The new Act aims to maintain competition and protect consumers’ interests without harming that of the producers’. Based on the analysis, broadly, the study cautions the regulators to rethink the efficiency defence argument and become more vigilant on the creation of monopolies. On the other side, it suggests firms should reconsider their post-merger integration strategy since consolidation has not led to a sustainable increase in market share of the surviving firms.
The Competition Commission of India (hereinafter the "Commission") took over the functions of the... more The Competition Commission of India (hereinafter the "Commission") took over the functions of the MRTP Commission from 2009 onward, which marked a paradigm shift in the competition regulation in India. The latter had been dealing with competition issues in India for more than three decades. In general, the approval of combinations has been distrusted in the academic literature, mainly due to its potential to create or strengthen the market power of firms, which in turn has an adverse impact on consumer welfare. In this study, our attempt is to examine the role of mergers in changing the level of market competition across various industries since it reduces the actual number of firms in the industry, which in turn is likely to allow the merged entity to strengthen and derive benefits from increased market power. We have adopted various indicators such as disappearance rate and survival probability to examine the effect of mergers. In the Indian context, it is the first attempt to empirically examine the impact of mergers on competition across sectors using a long period database. Our study found that in most of the merger intensive sectors, the disappearance rate was significant to influence market competition. However, in the case of surviving firms, the increase in market shares is not sustained in the long run as expected, which was mainly due to the absence of synergy creation during the post-merger period.] JEL classification: G34, L4, G38, D4
In an increasingly globalised world, the impact of public policy is far reaching. In this context... more In an increasingly globalised world, the impact of public policy is far reaching. In this context, effective drug 1 regulation is an important concern for promoting and protecting public health, both domestically and across the world. The extent of quality and efficacy of the medicines also contributes to strengthening of faith in health systems, health professionals, pharmaceutical manufacturers and distributors of the country . Given the asymmetry of information between the manufacturers, the doctors who prescribe medicines and the patients who eventually consume them, the need for regulatory supervision is widely acknowledged amongst all stakeholders in the realm of public health.
Papers by Beena Saraswathy
Innovation–Consolidation Nexus: Evidence from India’s Manufacturing Sector
Often mergers and acquisitions (M&As) are approved by competition regulator(s) based on the likel... more Often mergers and acquisitions (M&As) are approved by competition regulator(s) based on the likely impact of it on innovation, which is further expected to enhance consumer welfare. During the initial years of M&As activity, the relationship between M&As and technological performance was not a major concern. During those days, the studies were focusing on the trade-off between efficiency generation and market power creation. However, there has been an unprecedented increase in the value and volume of technology-related mergers, acquisitions and alliances during globalization with a view to minimize cost of production and to effectively withstand market competition. Overall, the study observed that cross-border M&As are spending more for royalties and technical know-how, which indirectly indicates the continuing dependence of foreign firms on import of technology compared to in-house R&D creation in the Indian manufacturing sector.
The Flipkart-Walmart Deal in India: A Look into Competition and Other Related Issues
The Antitrust Bulletin, 2019
The Competition Commission of India approved India’s highest-valued acquisition, Flipkart by Walm... more The Competition Commission of India approved India’s highest-valued acquisition, Flipkart by Walmart, within the first phase of investigation itself, stating that it is “not likely to have an appreciable adverse effect on competition in India.” Unlike many other retail acquisitions, there has been strong protest from the traders and retailers’ organization to stop the deal and for the creation of an exclusive e-commerce policy and regulator. Meanwhile, the Draft National E-Commerce Policy, 2018, suggested greater regulatory scrutiny for mergers and acquisitions that may distort competition. In this context, the present study looked into the competition dimension of the deal and other related issues. The study suggests to evolve a regulatory system with long-term vision to sustain and support the domestically grown innovations while making the competition assessment more flexible to accommodate the challenges posed by digital revolution.
Cross-Border Mergers and Acquisations in India: Extent, Nature and Structure.July 2010
The corporate sector all over the world is restructuring its operations through mergers and acqui... more The corporate sector all over the world is restructuring its operations through mergers and acquisitions in an unprecedented manner in order to successfully overcome the challenges posed by globalization. One of the striking features of the present mergers and acquisitions scenario is the presence of a large number of cross-border deals, which is an easier way of internationalization comparing Greenfield mode of entry. Further, this is leading to a gradual shift in the organic ways of foreign investment into inorganic means of brownfield investment. In this context, the present study tries to understand the nature and extent of such deals in India in the backdrop of global scenario. [Working Paper No. 434]
M&As by Business Groups and Market Competition: A Study of Tata Steel
The Antitrust Bulletin, 2021
This article examines the involvement of business groups in consolidation activity. An important ... more This article examines the involvement of business groups in consolidation activity. An important component of the Monopolies and Restrictive Trade Practices Act was “the concentration of economic power in the hands of a few” which has been de-emphasized as per the amendment made in 1991. The new Competition Act mainly deals with the case-by-case analysis of market competition rather than ownership concentration. The competition regulation in its current form is mainly focusing on the concept of “economic efficiency” and not addressing the “social fairness” concept. The involvement of business groups in consolidation activities results in multiplier effects as they are already part of a diversified and well-structured umbrella of business with horizontal and vertical linkages. This article observes the active involvement of big business groups in mergers and acquisitions (M&As) activity across various product lines. Further, many such M&As are leading to capacity expansion not only i...
The New Competition Regime in India: Prospects and Challenges: Introduction
The Antitrust Bulletin, 2021
India is one of the major developing countries having a long history of competition regulation. T... more India is one of the major developing countries having a long history of competition regulation. The scope for the market competition was very limited under the highly rigid regulatory system that existed in India in the early years of development. The key principle behind the planned industrial development strategy in India was self-reliance and social justice for which the government followed a “control and command” regime in which the public sector was assigned a crucial role. Private investment in crucial sectors, entry, and expansion of the private sector was restricted through various regulations. Foreign investment, import of technology, and trade policy were also regulated. MRTP Act 1969 was dealing with the competition issues in India under this highly regulated scenario. With the paradigm shift in India’s economic policies since the announcement of New Industrial Policy-1991, the country moved to the “market-oriented” scenario, and thereby the role of competition also incre...
Economic Reforms and Market Competition in India: An Assessment
The Antitrust Bulletin, 2021
The announcement of New Industrial Policy in July 1991 marked a paradigm shift in the overall mac... more The announcement of New Industrial Policy in July 1991 marked a paradigm shift in the overall macroeconomic policies followed in India from greater control and regulations to the free rein of market forces. Subsequently, there has been a paradigm shift in the competition regulation in India, with the establishment of the Competition Commission of India. The underlying motive behind the regulatory changes has been to increase competition in all spheres of economic activities. Given this background, the present study intends to assess whether the changes in policy regimes could bring out the desired output in terms of heightened competition in various spheres of the manufacturing sector, specifically across various subsectors in the manufacturing sector. These are important not only from a consumer point of view but also to identify the areas of concern for vigilant policy implementation. Using multiple indicators of concentration, we find that despite the increase in competition acro...
The corporate sector all over the world is restructuring its operations through mergers and acqui... more The corporate sector all over the world is restructuring its operations through mergers and acquisitions in an unprecedented manner in order to successfully overcome the challenges posed by globalization. One of the striking features of the present mergers and acquisitions scenario is the presence of a large number of cross-border deals, which is an easier way of internationalization comparing Greenfield mode of entry. Further, this is leading to a gradual shift in the organic ways of foreign investment into inorganic means of brownfield investment. In this context, the present study tries to understand the nature and extent of such deals in India in the backdrop of global scenario. The present study also suggests that like the overall FDI, there has been high national difference in attracting brownfield investment. Not only the world FDI is moving in tandem with the incidence of cross-border mergers and acquisitions, but also the service sector mergers and acquisitions are the majo...
Most often, the competition authorities approve combinations based on the tradeoff between the ex... more Most often, the competition authorities approve combinations based on the tradeoff between the expected efficiency gains and the likely effect on market power creation. However, the realities may be different from the expected synergy creation since merger regulations are ex ante in nature. The present study is an attempt to understand how far the expected efficiency gains are actually achieved by the firms entering into consolidation in India, which experienced large number of mergers and acquisitions especially after the economic reforms of 1990s. Specifically, we have examined the technical efficiency of the firms involved in mergers and acquisitions, separately for cross-border and domestic deals.
Drug Regulation has been the focus of several recent policy reform efforts in India, starting wit... more Drug Regulation has been the focus of several recent policy reform efforts in India, starting with the Mashelkar Committee Report in 2003 to the most recent report of the Ranjit Roy Chaudhary Committee in 2013. Nevertheless, the regulatory structure continues to be plagued with several structural challenges, including issues related to regulatory harmonisation between the centre and the states, access to regulatory resources, transparency, which have undermined the general effectiveness of the regulatory system. At the juncture when the Drugs and Cosmetics (Amendment) Bill, 2015 to amend the Drugs and Cosmetic Act, 1940, is expected to overhaul the drug regulation, this study, the first of its kind, evaluates the administrative structure and functions of drug regulatory authorities at both the federal and state level along with comparative perspectives on similar challenges from other international jurisdictions. Through legal and policy analysis, supported by stakeholder interactions, this study not only provides a systematic analysis of the current challenges, along with actionable policy recommendations and suggests possible means for their operationalisation.
The Globalisation of Indian Business
The Globalisation of Indian Business
Cross-Border Mergers and Acquisations in India: Extent, Nature and Structure.July 2010
... Statistics. Author Info. Beena Saraswathy Abstract. The ... id:3096. Contact details of provi... more ... Statistics. Author Info. Beena Saraswathy Abstract. The ... id:3096. Contact details of provider: Web page: http://www.esocialsciences.com. For technical questions regarding this item, or to correct its listing, contact: (Padma Prakash). ...
The corporate sector all over the world is restructuring its operations through mergers and acqui... more The corporate sector all over the world is restructuring its operations through mergers and acquisitions in an unprecedented manner in order to successfully overcome the challenges posed by globalization. One of the striking features of the present mergers and acquisitions scenario is the presence of a large number of cross-border deals, which is an easier way of internationalization comparing Greenfield mode of entry. Further, this is leading to a gradual shift in the organic ways of foreign investment into inorganic means of brownfield investment. In this context, the present study tries to understand the nature and extent of such deals in India in the backdrop of global scenario. The present study also suggests that like the overall FDI, there has been high national difference in attracting brownfield investment. Not only the world FDI is moving in tandem with the incidence of cross-border mergers and acquisitions, but also the service sector mergers and acquisitions are the major force driving world FDI during the study period. Even though Indian merger scenario is still in a nascent stage, a substantial proportion of FDI came through this route in recent period. With the help of a firm level database on mergers and acquisitions we have observed three distinct phases of merger activity in India. The pre mid 1990s merger scenario was dominated by domestic deals, while there is an increasing presence of cross-border deals within India since the mid 1990s. Finally, we witness another stage of overseas deals during the post 2000 period, which shows that the overall macro economic scenario over the years is shaping the motives of merger. The study also tries to understand the nature, extent and structure of these deals in India. In this paper we argue that the current surge in cross-border deals should be viewed in a multi-factor dimension, which involves the push factors from home country such as market constraint, need for low priced factors of production, increasing global competition as well as the pull factors from foreign firms such as the wider market, technology and efficient operation.
Impact of Pay Revision Commissions on Inter-class Distribution of Salaries among Government Employees: The Case of Kerala
Indian Journal of Labour Economics
Global Trends in Cross-border Mergers and Acquisitions
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Books by Beena Saraswathy
JEL classification: G34, L4, G38, D4
Key Words: Mergers, Acquisitions, Restructuring, Antitrust Issues and Policies, Government Policy and Regulation, Market Structure and Pricing
Keywords: Market structure and innovation, Mergers and acquisitions, Anti-trust Issues, Government Policy and Regulations, Monopolisation Strategies, Innovation
JEL classification: G34, G38, L44, L12, O32
The Globalisation of Indian Business: Cross Border Mergers and Acquisitions in Indian Manufacturing provides an in-depth analysis of these issues, specifically aiming to understand whether the M&As strategies helped the firms to achieve their desired objectives in terms of improvement in technology, efficiency and market power in the context of the increase of M&As in India, using appropriate statistical and econometric techniques.
The book is of additional importance in the context of the recently implemented Competition Act, replacing the thirty year old MRTP Act in India. The new Act aims to maintain competition and protect consumers’ interests without harming that of the producers’. Based on the analysis, broadly, the study cautions the regulators to rethink the efficiency defence argument and become more vigilant on the creation of monopolies. On the other side, it suggests firms should reconsider their post-merger integration strategy since consolidation has not led to a sustainable increase in market share of the surviving firms.
Papers by Beena Saraswathy