TATA Birla

For Long they have been the flag bearer for India in the industry. For long it was just the two houses, money personified. TATA Birla was the name for the riches.

But then came the reliance and Ambani got added, then the economic reforms, IT, Outsourcing everything booming and people started forgetting who is TATA. It was the time for Infosys, Wipro, Airtel etc etc etc .. and people thought power is shifting.

I took just one week, just a week to come and stamp the authority back to people's minds. In one shot, Tata's came back from behind to win Corus for 11.3 Bn$ which btw is more that 5 times Infy's 2005 revenue. So what should Birla do, buy some other company ofcourse, so the birlas go and buy Noevelis in Canada for 6 Bn$.

So 2 buys worth 18 Billion dollor, amount that the likes of Infy and wipro will takes years to EARN. So what does it show, nothing dont ask me this, I am no finance Guru who can give interpretations of numbers.

What I can say is that this certainly shows the growing confidence of Indian companies. Tatas and birlas both have been getting more and more aggressive with passing time, something which they always lacked. Thats something good, recently Tata tea bought a soft drink company in US, so we can see a trend, today Tatas disclosed their plan to increase their stake in VSNL. So from where they get all this money, most probably loan so what my pea sized brain can understand is that borrowing money in this much amount can mean just one thing, they know they can pay it back .. and thats some CONFIDENCE.

So the class is coming to and end and so is this post, so keep reading and feel happy that India is getting better ... may take long to become good, but the confidence can make us reach there ... lets hope we will someday be GOOD in absolute terms ... enjoy and be confident we can do it ... let hope we will ..