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5 months ago
Write a short note on business groups in India.
Business and Its Environment
Edition: 7th
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5 months ago
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Many emerging markets countries have domestic business groups, which are frequently family controlled. In emerging market economies with underdeveloped capital and resources markets and uncertain government regulation and policies, business groups can provide efficiencies similar to those that can be achieved through contracting in developed economies. A number of the business group conglomerates have expanded overseas primarily through acquisitions.
Many of India's business groups are family controlled, including Reliance Industries led by Mukesh Ambani and the telecommunications, electric power, and finance  conglomerate led by his brother Anil.
The Tata Group includes 98 operating companies that employ 395,000 people. The Companies include Tata Motors, Taj Hotels Resorts and Palaces, Tata Steel, Tata Chemicals, Tata Power, Tata Sky, and Tata Consultancy Services among other companies. Tata Global Brands is the world's largest producer of branded tea.
Tata has expanded overseas both through extension of its product lines and acquisitions and joint ventures. Tata Consultancy Services is among the world's largest consultancies and Asia's largest software company. Through acquisitions Tata became the largest manufacturer in Britain. The group also had a number of joint ventures in emerging markets, although its British operations accounted for over half of its revenues.
Some businesses have emerged and prospered because of the inefficiency of the Indian economy and particularly its infrastructure. A number of large companies built their own power companies because of the unreliable power supply in some parts of the country. Gautam Adani built a successful business group by working around the Indian infrastructure and political system. His Adani Group owned an electric power company in the state of Gujarat that was supplied by coal from the Group's company in Indonesia because it was too costly to transport Indian coal to the power plant. He also owned the ships that hauled the coal and the port where it was unloaded. The success of his venture led to plans to build eight additional power plants. Needing a connection to the  government-owned Indian Railroads system, he built his own 40-mile railroad spur rather than wait for Indian Railroads to build the line.
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