Unit 4

Indian Economy
India has the world’s sixth largest economy in measures of GDP. It has the third largest purchasing
power in the world. When we talk about the global economy, India is one of its fastest emerging
players. Since our liberalization in 1991, the economy has opened up and given us plenty of
opportunities to succeed.
Important Features of the Indian Economy & GDP

1] Gross Domestic Product

India had a GDP of 2.26 lac crore dollars in the year 2016. It showed a healthy growth rate of 7.1%.
The World Bank has forecasted a healthy growth rate of 7.3% in the year 2018-19 as well and this
augments well for the Indian economy. It is predicted that if the current flow of events continues, by
2028 India will be the third largest economy in the world, overtaking Jap
2] Low Per Capita Income
While our GDP is quite healthy, the per capita income of Indians is very low in comparison to other
developed economies. One reason is the vast 1.2 billion population of India. For the first time in
2016-17, the per capita income rose above 1 lac, roughly recorded at 1861.50$. To better
understand the low levels, the same per capita income in the USA was $ 52,195.

3] Indian Economy is a Mixed Economy

In the Indian economy, both private sector and public sector companies co-exist in perfect harmony.
The big industries, especially those for vast public use, are public sector companies. Some examples
are MTNL, Mahanagar Gas etc. And the economy has seen a huge boost in the private sector as
well since the liberalization in 1991. Hence India is the perfect example of a mixed economy.

4] Agriculture is the most important sector

It would not be incorrect to call the Indian economy an agricultural based economy. Agriculture to
date employs more than fifty percent of India’s workforce either directly or indirectly. The
agricultural sector contributes to some 18% of our GDP. In 2017 it accounted for 12.7% of our total
exports as well.

5] Uneven Wealth Distribution

The income and wealth disparity in the Indian economy is one of the worst in the world. According
to some reports, the top 1% of the rich population has amassed 53% of the wealth in India. And
even with the fast-growing economy, the rich just become richer and the poor stay the same. It is the
second worst unequal wealth distribution in the world after Russia.
6] Human Capital
One major advantage of India’s vast population is within the scope of human capital. And most of
these human resources are youths. They are educated and skilled, giving India a huge advantage in
the global market. They now need adequate employment opportunities to be successful
7] Immense Growth of Service Sector
India has one of the fastest growing service industries in the world. Due to the immense growth in
sectors like e-commerce, IT sectors, BPO etc. the service sector of India is booming. It employs
nearly 28.6% of the total population and contributes 54%t o the GVA.

National Income
In the current format of the IBPS PO, the general awareness section has become very important. One
of the topics that are asked frequently is national income. This section is of importance while
preparing for the IBPS PO exams. That is why we have divided this section into three different parts.
Today, we are just going to discuss what is national income and the variety of determinants of
national income in India
What is National Income?

We often hear the GDP in India. The national income of India is the sum total of income everyone
earns in India. GDP, GNP are also parts of this national income.

GDP is the gross domestic products while GNP is a gross national product. Further, the savings rate
and investment in the economy are the determinantal factors in the national income of India.

For a nation, the value of the final goods and services,  it produces in terms of money for the
residents living in the country is the national income.

So, what is national income? It is generally for that particular fiscal year or financial year. In India,
this financial year means the year from April 1st to March 31st for the next year. Thus, the formula
to calculate national income is,

N.I. = C + I + G + (X -M)

Here, C stands for consumption, I stands for total investment expenditure, G stands for the
expenditure done by the government, and X and M stand for export and import respectively.

X and M are interchangeable depending upon whether the trades are trade surplus or trade deficit.

To determine the estimates of national income, there are three methods:

 Product or production method

 Income method
 Expenditure method
GDP (Gross domestic product)
The final products within the boundaries of India within that specific period of time are in the GDP
of India. Further, the effect of inflation on these products is also calculated.

GDP includes government expenditures, consumption, exports, imports, and investment of India.

For example, if Honda decides to manufacture it’s parted in India than that will go into the
GDP of India. But the revenues got through the sales are included in the GDP oFormula for
Calculating GDP
The formula for calculating GDP is
Y = C + I + G + (X − M)
Where
Y= Gross Domestic Product
C = Consumption
I = Investment
G = Government spending
X = Exports
M = Imports

Methods of GDP Calculation

There are three different approaches for calculating GDP which is used by economists. All these
approaches produce the same results, theoretically.
1. Output Approach
2. Income Approach
3. Expenditure Approach
4. Output Approach : The Output approach, commonly known as production approach is the
market value of all the goods that are produced within the country.
The formula for calculating GDP by output approach is
GDP = GDP at market price – depreciation + NFIA (net factor income from abroad) – net
indirect taxes.
1. Income Approach : The Income approach of GDP calculation is based on the total output
of a nation with the total factor income received by residents or citizens of a nation.
The formula for calculating GDP by income approach is
GDP = Compensation of employees + Rental & royalty income + Business cash flow + Net
interest
The compensation of employees is the total payments made to all the labourers and employees.
Rent is earned by the businesses on the land, and profits are made by the business from the sales
of goods and services.
Interest is earned on the capital invested by the company.
1. Expenditure approach : The Expenditure approach calculates the GDP by calculating the
sum of all the services and goods produced in an economy.
The GDP can be calculated with the following formulae
Y = C + I + G + (X − M)
Where
Y= Gross Domestic Product
C = Consumption
I = Investment
G = Government spending
X = Exports
M = Imports
The components are described in brief here
1. Consumption is denoted by C. It stands for all the private spending, which includes
services, nondurable and durable goods.
2. Government expenditure is denoted by G and it includes employee salaries, construction
of roads and railways, airports, schools and expenditures in the military.
3. Investment denoted by I, refers to all the investments which are spent on housing and
equipment.
4. Net exports is denoted by (X-M) which is the difference between total imports and
exports.

Types of GDP
Following are the types of GDP:
1. Nominal GDP : Nominal GDP, also known as nominal gross domestic product is the value of
all the final goods and services at current market prices, or in other words, it is GDP calculated at
the current market prices.
Nominal GDP takes into account these factors such as inflation, price changes, changing interest
rates and money supply, at the time of determining GDP.
2. Real GDP : Real GDP is said to be the value of all goods and services determined in an
economy after taking into account the rate of inflation.
In other words, it is the inflation adjusted value of goods and services produced in an economy in
a year, therefore it is also known as inflation adjusted gross domestic product.
Real GDP in addition to inflation also takes into account the deflation. Real GDP is therefore a
more accurate measure of the economy than the other measures, such as Nominal GDP (which
measures total output based on the prices).
GNP (Gross national product)
GNP of the country is measured by the income which is collected due to the various factors of
production that are owned by the residents or the citizens of India.

The GNP of India is calculated by adding the net inflow coming from the abroad countries to the
GDP of India while subtracting net outflow to the foreign countries from India.

As per the previous example, if Honda is an Indian company and it is selling it’s parted in other
countries than that revenue become the GNP for India.

GNP = GDP + NR – NP
Where,
GDP = Gross domestic product
NR = Net income receipts
NP = Net outflow to foreign assets
Consumption and Investment expenditure
The money spent on durable as well as nondurable goods in India is included in the consumption
expenditure. The durable items are the items which are expected to last more than 3 years while
nondurable items include clothing and foods. Services are also included in this section.

Investment expenditures include the spending on business inventories and residential and non-
residential investment. Nonresidential includes spending on various equipment and plants. While
residential includes spending on multi-family homes and single-family homes.

Measures of Economic Development and Social Welfare

The nation’s economic development and social welfare are also considered to measure the nation’s
prosperity. Economic development is a concept and an activity in general to assess the core
competencies of a nation and it’s innovation, and use the of available resources. This process
improves the political, economic, and social well being of the people. When we discuss economic
development we often discuss terms like modernization, industrialization, and so on. Many times
you confuse industrial development with economic development.

Measures of Economy

Economics development is just policy with aims at improving the social well-being as well as
economic conditions of the nation.
While economic growth is a result of rising in GDP as well as market productivity. There are
various needs we need to consider while measuring economic development. Here, below we will
explain these factors in detail.

1. Rise in real per capita income

2. Quality of life and expectancy
3. Real gross national product
4.  Human development index
5. Gender-related development index
6. Poverty index
Rise in Real per Capita Income
One of the factors that measure the economic development of a nation is the rise in real per capita
income.

There’s a perception that whenever the income of individual increases than it’s real income
increases.

And when this happens the person is happy and prosperous. But there are some limitations to this.

These limitations through per capita income do not determine whether the rise is due to equal
distribution or unequal distribution.

Same is the case with the quality of goods and services being provided and consumed. Further, the
quality of public goods also affects economic welfare.

Quality of Life and Expectancy

When the basic facilities like water, electricity, and housing are available to anyone that the quality
of life is considered as good in that nation.

Here the measuring factor is the needs of the people. These needs are basic needs like access to
health, sanitation, education, nutrition, etc.

For this, the main factor is the infant mortality rate. This is the death rate of a child who is less than
a year old. While life expectancy is the average life of the population that lives.
Real Gross National Product
As mentioned above, GNP, as well as GDP, are the measuring factors for economic development of
a nation. Increase in both of these ensures that the larger availability of the good and services in that
country. If this supports the standard of living of the people than it increases the economic
conditions of the nation.

But there are some limitations to this as well. Like the increase in the size of GDP does not directly
means the more availability of services and goods
Whenever the GDP is calculated for the current prices, there may be an increase due to price rise.
This does not mean the availability of goods and services have increased.

Human Development Index

It includes several factors like long and healthy living, the welfare of the people, etc. This index also
includes the standard of living of people, literacy rate, and purchasing power parity in terms of real
income.

Gender-related development index

This is popularly known as GDI. This is used to measure gender inequalities by measuring three
basic dimensions of human development. They are education, health, and economic resources.

They measure education by calculating expectancy years for schooling for males and females.
While health measures the male and female life expectancy during the time of birth.

While economic resources are the command over them is measured by income earned by males as
well as females. This index is useful to show the inequality between male and female in the above-
mentioned dimensions.

Poverty Index
The poverty index which is otherwise called multidimensional poverty index aka MPI helps in
identifying various factors. These various factors are health, the standard of living, and education.

For this index, the micro data which is available from surveys is used. This data is collected on the
basis of deprivation of toilet, water, cooking fuel, assets, etc. Based on the availability of these
factors each person is termed as poor and no poor.

The indicators are decided on this basis. For education, they consider two factors, school attainment,
and school attendance. School attainment is to determine when no member of the family has
attended at least 6 years of schooling.

While school attendance is determined when the child is of the school age is not attending the
school. Similarly, for health, the factors are child mortality and health.
While for the standard of living the factors are drinking water, electricity, sanitation, and cooking
fuel.

What is Inflation? 
In economics, inflation (or less frequently, price inflation) is a general rise in the price level of an
economy over a period of time. When the general price level rises, each unit of currency buys
fewer goods and services; consequently, inflation reflects a reduction in the purchasing power
per unit of money – a loss of real value in the medium of exchange and unit of account within the
economy
As per RBI, an inflation target of 4 per cent with a +/-2 per cent tolerance band, is appropriate
for the next five years (2021-2025).

Types of Inflation
The different types of inflation in an economy can be explained as follows:

Demand-Pull Inflation
This type of inflation is caused due to an increase in aggregate demand in the economy.
Causes of Demand-Pull Inflation:
 A growing economy or increase in the supply of money – When consumers feel
confident, they spend more and take on more debt. This leads to a steady increase in
demand, which means higher prices.
 Asset inflation or Increase in Forex reserves– A sudden rise in exports forces a
depreciation of the currencies involved.
 Government spending or Deficit financing by the government – When the government
spends more freely, prices go up.
 Due to fiscal stimulus.
 Increased borrowing.
 Depreciation of rupee.
 Low unemployment rate.
Effects of Demand-Pull Inflation:
 Shortage in supply
 Increase in the prices of the goods (inflation).
 The overall increase in the cost of living.

Cost-Push Inflation
This type of inflation is caused due to various reasons such as:
 Increase in price of inputs
 Hoarding and Speculation of commodities
 Defective Supply chain
  Increase in indirect taxes
 Depreciation of Currency
 Crude oil price fluctuation
 Defective food supply chain
 Low growth of Agricultural sector
 Food Inflation
 Interest rates increased by RBI
Cost pull inflation is considered bad among the two types of inflation. Because the National
Income is reduced along with the reduction in supply in the Cost-push type of inflation.

Built-in Inflation
This type of inflation involves a high demand for wages by the workers which the firms address
by increasing the cost of goods and services for the customers.
Also, read about Inflation Targeting in the linked article.

Remedies to Inflation
The different remedies to solve issues related to inflation can be stated as:
 Monetary Policy (Contractionary policy)
The monetary policy of the Reserve Bank of India is aimed at managing the quantity of money in
order to meet the requirements of different sectors of the economy and to boost economic
growth.
This contractionary policy is manifested by decreasing bond prices and increasing interest rates.
This helps in reducing expenses during inflation which ultimately helps halt economic growth
and, in turn, the rate of inflation.
 Fiscal Policy
  Monetary policy is often seen separate from fiscal policy which deals with
taxation, spending by government and borrowing. Monetary policy is either
contractionary or expansionary.
 When the total money supply is increased rapidly than normal, it is called an
expansionary policy while a slower increase or even a decrease of the same refers
to a contractionary policy.
 It deals with the Revenue and Expenditure policy of the government.
Tools of fiscal policy
1. Direct Taxes and Indirect taxes – Direct taxes should be increased and indirect taxes
should be reduced.
2. Public Expenditure should be decreased (should borrow less from RBI and more from
other financial institutions)
To know more about the Fiscal policy in India, refer to the linked article.
 Supply Management measures
 Import commodities that are in short supply
  Decrease exports
 Govt may put a check on hoarding and speculation
Distribution through Public Distribution System (PDS)

Measurement of Inflation
1. Wholesale Price Index (WPI) – It is estimated by the Ministry of Commerce & Industry
and measured on a monthly basis.
2. Consumer Price Index (CPI) – It is calculated by taking price changes for each item in the
predetermined lot of goods and averaging them.
3. Producer Price Index – It is a measure of the average change in the selling prices over
time received by domestic producers for their output.
4. Commodity Price Indices – It is a fixed-weight index or (weighted) average of
selected commodity prices, which may be based on spot or futures price
5. Core Price Index – It measures the prices paid by consumers for goods and services
without the volatility caused by movements in food and energy prices. It is a way to
measure the underlying inflation trends.
6. GDP deflator – It is a measure of general price inflation.
Know more about the Cash reserve ratio in this article.

Effect of Inflation on the Economy

The effect of inflation on the economy can be stated as:
  The effect of inflation is not distributed evenly in the economy. There are chances of
hidden costs for different goods and services in the economy.
 Sudden or unpredictable inflation rates are harmful to an overall economy. They lead to
market instability and thereby make it difficult for companies to plan a budget for the
long-term.
 Inflation can act as a drag on productivity as companies are forced to mobilize resources
away from products and services to handle the situations of profit and losses from
inflation.

What Are Mergers and Acquisitions (M&A)?

The term mergers and acquisitions (M&A) refers to the consolidation of companies or their
major business assets through financial transactions between companies. A company may
purchase and absorb another company outright, merge with it to create a new company, acquire
some or all of its major assets, make a tender offer for its stock, or stage a hostile takeover. All
are M&A activities

Understanding Mergers and Acquisitions

The terms mergers and acquisitions are often used interchangeably, however, they have slightly
different meanings.
When one company takes over another and establishes itself as the new owner, the purchase is
called an acquisition.1
On the other hand, a merger describes two firms, of approximately the same size, that join
forces to move forward as a single new entity, rather than remain separately owned and
operated.1 This action is known as a merger of equals. Case in point: Both Daimler-Benz and
Chrysler ceased to exist when the two firms
merged, and a new company, DaimlerChrysler, was created. Both companies' stocks were
surrendered, and new company stock was issued in its place.2 In a brand refresh, the company
underwent another name and ticker change as the Mercedes-Benz Group AG (MBG) in
February 2022.3
A purchase deal will also be called a merger when both CEOs agree that joining together is in
the best interest of both of their companies.
Unfriendly or hostile takeover deals, in which target companies do not wish to be purchased, are
always regarded as acquisitions. A deal can be classified as a merger or an acquisition based on
whether the acquisition is friendly or hostile and how it is announced. In other words, the
difference lies in how the deal is communicated to the target company's board of directors,
employees, and shareholders.
Types of Mergers and Acquisitions
The following are some common transactions that fall under the M&A umbrella.
Mergers
In a merger, the boards of directors  for two companies approve the combination and seek
shareholders' approval. For example, in 1998, a merger deal occurred between the Digital
Equipment Corporation and Compaq, whereby Compaq absorbed the Digital Equipment
Corporation.5 Compaq later merged with Hewlett-Packard in 2002. Compaq's pre-merger ticker
symbol was CPQ. This was combined with Hewlett-Packard's ticker symbol (HWP) to create
the current ticker symbol (HPQ).6
Acquisitions
In a simple acquisition, the acquiring company obtains the majority stake in the acquired firm,
which does not change its name or alter its organizational structure. An example of this type of
transaction is Manulife Financial Corporation's 2004 acquisition of John Hancock Financial
Services, wherein both companies preserved their names and organizational structures.7
Consolidations
Consolidation creates a new company by combining core businesses and abandoning the old
corporate structures. Stockholders of both companies must approve the consolidation, and
subsequent to the approval, receive common equity shares in the new firm. For example, in
1998, Citicorp and Travelers Insurance Group announced a consolidation, which resulted in
Citigroup.8
Tender Offers
In a tender offer, one company offers to purchase the outstanding stock of the other firm at a
specific price rather than the market price. The acquiring company communicates the offer
directly to the other company's shareholders, bypassing the management and board of
directors.9 For example, in 2008, Johnson & Johnson made a tender offer to acquire Omrix
Biopharmaceuticals for $438 million.10 The company agreed to the tender offer and the deal
was settled by the end of December 2008.11
Acquisition of Assets
In an acquisition of assets, one company directly acquires the assets of another company. The
company whose assets are being acquired must obtain approval from its shareholders. The
purchase of assets is typical during bankruptcy proceedings, wherein other companies bid for
various assets of the bankrupt company, which is liquidated upon the final transfer of assets to
the acquiring firms
Management Acquisitions
In a management acquisition, also known as a management-led buyout (MBO), a company's
executives purchase a controlling stake in another company, taking it private. These former
executives often partner with a financier or former corporate officers in an effort to help fund a
transaction. Such M&A transactions are typically financed disproportionately with debt, and the
majority of shareholders must approve it. For example, in 2013, Dell Corporation announced
that it was acquired by its founder, Michael Dell .12
How Mergers Are Structured
Mergers can be structured in a number of different ways, based on the relationship between the
two companies involved in the deal:
 Horizontal merger: Two companies that are in direct competition and share the same
product lines and markets.
 Vertical merger: A customer and company or a supplier and company. Think of an ice
cream maker merging with a cone supplier.
 Congeneric mergers: Two businesses that serve the same consumer base in different
ways, such as a TV manufacturer and a cable company.
 Market-extension merger: Two companies that sell the same products in different
markets.
 Product-extension merger: Two companies selling different but related products in the
same market.
 Conglomeration : Two companies that have no common business areas.
Mergers may also be distinguished by following two financing methods, each with its own
ramifications for investors.
Purchase Mergers
As the name suggests, this kind of merger occurs when one company purchases another
company. The purchase is made with cash or through the issue of some kind of debt instrument.
The sale is taxable, which attracts the acquiring companies, who enjoy the tax benefits.
Acquired assets can be written up to the actual purchase price, and the difference between
the book value and the purchase price of the assets can depreciate annually, reducing taxes
payable by the acquiring company.
Consolidation Mergers
With this merger, a brand new company is formed, and both companies are bought and
combined under the new entity. The tax terms are the same as those of a purchase merger.

Reasons for Mergers and Acquisitions:

• Financial synergy for lower cost of capital
• Improving company’s performance and accelerate growth
• Economies of scale
• Diversification for higher growth products or markets
• To increase market share and positioning giving broader market access
• Strategic realignment and technological change
• Tax considerations
• Under valued target
• Diversification of risk

Major Mergers and Acquisitions in India

Mergers and Acquisitions form an important topic with regard to the General Awareness
section for the various Government Exams conducted in the country.

In this article, we bring to you the list of important Mergers and Acquisitions which happened
in India and questions from which may be asked in the upcoming competitive exams.

List of Mergers & Acquisitions in India

Given below is a list of the major mergers and acquisitions which were held in India along
with the year in which they took place.

List of Mergers in India

Mergers in
India
S. Name of the First Company Name of the Company Merger Year in which
No. with it was Merged
1 Indus Towers Bharti Infratel 2020
2 National Institute of Miners’ ICMR - National Institute of 2019
Health (NIMH) Occupational Health (NIOH)
3 Indiabulls Housing Finance Lakshmi Vilas Bank Limited 2019
Limited (IBHFL) and Indiabulls (LVB)
Commercial Credit Limited
(ICCL)
 4 Bank of Baroda Vijaya Bank and Dena Bank 2019

5 IndusInd Bank Bharat Financial 2019

(SKS Microfinance)
6 Capital First IDFC Bank 2018
7 Vodafone India Idea Cellular 2018
8 TATA Steel ThyssenKrupp 2018
9 Housing.com PropTiger.com 2017

10 State Bank of India Bhartiya Mahila Bank, SB of 2017

Bikaner and Jaipur, SB of Patiala,
SB of Travancore

11 Flipkart E-bay India 2017

List of Acquisitions in India

Acquisitions in India
S.No. Acquiring Company Acquired Company Year of
Acquisition
1 Zomato Uber Eats 2020
2 HUL GSK Consumer 2020
3 Hindalco Aleris 2020
4 Ebix Yatra 2020
5 Advent International Enamor 2019
6 LIC IDBI bank 2019
7 Accenture Droga5 2019
8 Reliance Brands Hamleys Global Holdings (HGHL) 2019
9 India UPL Ltd. Arysta LifeScience Inc 2019
10 Silverpush BetterButter 2019
11 Power Finance Corporation Rural Electrification Corporation 2019
Limited
12 OYO Rooms Europe's Leisure Group 2019
13 InMobi Roposo 2019

14 Publicis Groupe Epsilon 2019

15 Famous Innovations Three Bags Full 2019
16 Havas Group Shobiz 2019
17 Martin Sorrell's S4 Capital WhiteBalance 2019
18 Mortgage Lender HDFC Apollo Munich Health Insurance 2019
19 Disney 21st Century Fox 2019
20 Killer Jeans Desi Belle 2019
21 Bandhan Bank Gruh Finance 2019
22 Apple Intel's Smartphone Modem 2019
23 Teleperformance Intelenet Global Services 2018
24 Flipkart Liv.Ai 2018
25 Tata Steel Bhushan Steel 2018
26 PVR SPI (Sathyam, Escape, Pallazo) 2018
27 Walmart Flipkart 2018
28 Tata AutoComp Systems Ltd TitanX 2017
29 Bharti Airtel Tikona 2017
30 Freshdesk Pipemonk 2017
31 BYJU’S Vidyartha 2017
32 ONGC (Oil and Natural HPCL(Hindustan Petroleum 2017
Gas Corporation Ltd) Corporation Limited)
33 WNS Global Services Denali Sourcing Services 2017
34 Aurobindo Pharma Part of business from TL 2017
Biopharmaceutical AG
of Switzerland
 35 Wipro Ltd InfoSERVER S.A. 2017

36 Bharti Airtel Telenor India 2017

37 Nuance Communications mCarbon Tech 2017

Innovations
38 Axis Bank Freecharge 2017

Top M&A deals in India in 2021

Piramal Group acquires DHFL at US$4.7 billion: In 2021, Piramal Group completed the
acquisition of Dewan Housing and Finance Limited (DHFL) for US$4.7 billion, which includes
a cash component and non-convertible debentures.

Prosus acquires BillDesk ay US$4.7 billion: The acquisition of Indian payments giant BillDesk
by technology investors Prosus NV was the largest merger and acquisition deal in the Indian
fintech industry. Prosus has its own Fintech business PayU. This acquisition will help PayU to
become one of the leading online payments providers, globally, with presence in over 20 markets
and increased total payments volume (TPV) of over US$4 billion.

Adani Green Energy Limited (AGEL) acquires SB Energy India: In May 2021, AGEL
completed the acquisition of SB Energy Holdings Limited (SB Energy India) in an all-cash deal
worth US$3.5 billion. This is the largest acquisition in the renewable energy sector in India.

Tata Digital acquires BigBasket: In a bid to build its own SuperApp, Tata Digital acquired
India’s biggest groceries delivery company BigBasket.

Merger between Sony Picture Network India and Zee Entertainment Enterprises: Both
companies have entered into an exclusive, non-binding term sheet, in order to combine their
linear networks, digital assets, production operations, and program libraries. The merged
company would be a publicly listed company in India with Sony Pictures Entertainment holding
the majority stake.

PharmEasy acquires Thyrocare at US$610 million: PharmEasy has become the first Indian
start-up to acquire a publicly listed company Thyrocare, which runs a chain of diagnostic and
preventive care laboratories. The acquisition will enable PharmEasy to build an end-to-end
healthcare platform from a customer’s point of view.
T op t ec h me rg er s a n d ac q u is it io n s i n I n d ia i n 20 22
1.Reliance’s stake in Addverb

Reliance Industries Limited spent USD 132 million to pick up a 54% stake in Addverb
Technologies, an Indian robotics startup. The Noida-based startup focuses on building
automation and robotics solutions for warehouses and factories. Reliance has been already using
Addverb’s robotic conveyors, pick-by-voice software, and semi-automated systems in its
warehouses. Addverb churns out around 10,000 robots in a calendar year, including mobile
robots, sorting robots, pallets shuttle and carton shuttle. And 80% of the startup’s revenue comes
from the domestic market.

2.HCL’s majority stake in GBS & Starschema acquisition 

HCL Technologies has acquired a majority stake (51%) in German IT consulting firm
Gesellschaft forBanksysteme GmbH (GBS). The remaining stake (49%) is with the largest
German cooperative primary bank Deutsche Apotheker- und rztebank eG (apoBank).

Additionally, HCL has agreed to buy the Budapest-based company Starschema in a deal worth

USD 42.5 million to strengthen its data engineering services and build a stronghold in Central
and Eastern Europe. The deal is subject to regulatory clearance from the Hungarian Ministry of
Innovation and Technology and is expected to be completed by March 2022. Starschema,
founded in 2006, offers consulting, technology, and managed services in data engineering
Infosys buys Oddity

Infosys has signed a definitive agreement to acquire oddity, a German digital marketing,

experience, and commerce agency. The move will reinforce Infosys’ creative, branding and
experience design capabilities and demonstrates its continued commitment to co-create with
clients and help them navigate their digital transformation journey.

“Using oddity’s digital commerce, marketing knowledge, and metaverse-ready set-up, it easily
complements Infosys’ prowess in technological transformation,” said Ravi Kumar S, Infosys
President, in a statement. 

oddity has a comprehensive service portfolio comprising digital-first brand management and
communication, in-house production, including virtual and augmented reality, experience design
and e-commerce services across Europe and China. The acquisition will
power Infosys’ metaverse play. 

Tech Mahindra buys Thirdware, picks stake in Geomatic.AI

Tech Mahindra has acquired Mumbai-based enterprise applications startup Thirdware in an all-
cash deal worth USD 42 million.
Thirdware, founded in 1995 by Bhavesh Shah, offers solutions and services in the consulting,
design, development, implementation and support of packaged solutions and covers areas like
Robotic Process Automation (RPA), Enterprise Resource Planning (ERP) and Enterprise
Performance Management (EPM) Thirdware delivers cutting edge business solutions and
services to over 300 customers across the globe which includes Ford Motor Company, Pfizer,
United Nations Organizations, Visteon, etc.

Thirdware’s capability to provide end-to-end implementations and global rollouts of ERP

solutions will give Tech Mahindra an edge in the manufacturing space.

Tech Mahindra has bought 80 percent stake in Geomatic.AI through its Singapore-based
subsidiary. “As part of this deal, Tech Mahindra will have 80 percent shareholding in
Geomatic.AI for consideration of Australian dollar 6 million. Ausnet will have 20 percent
shareholding and transfer digital workforce, intellectual property, assets and client contracts to
the newly formed entity,” the company said in a regulatory filing.

What is a product launch?

A product launch is a coordinated attempt to bring a new product to market. More than just a
single event, a product launch involves everything from developing marketing and sales
strategies to optimizing your product.

Each product launch will differ depending on the industry, type of product and target market.
Depending on these factors, a company may decide on different degrees of launch.
For example, a soft launch is when a product enters the market with very little publicity. Often,
companies take this approach to seek early feedback or when the product is highly targeted.
By comparison, a full-scale launch is when you try to draw as much attention as possible to the
product when it enters the market.
A product launch is split into three broad steps: pre-launch, launch and post-launch. In the
following section, we’ll discuss each of the key actions that should make up these steps to
increase your chances of a successful product launch.
9 steps to improve your chance of success at launch
For a product launch to be successful, you need to plan it strategically and well in advance. A
launch involves the marketing team, product managers, sales, customer support, finance and,
especially in large-scale launches, several other departments.
Due to the number of moving parts and people involved, seamless coordination and
communication are key. With that in mind, here’s a new product launch checklist to keep your
teams on track.
Step 1. Know the problem you’re solving
The first step is to define your product and begin working on your product positioning. You have
to get to know your product as well as possible and determine how it can solve your customer’s
problem.

Write a brief description of two to three paragraphs that describes what your product is, its main
features and how it fills a market need. This is your brand positioning statement, and it may take
some work to perfect it.

Next, consider your value proposition. This should describe your customer’s problem and why
they would choose your product to solve it over a competitor’s.

Slack’s value proposition is a great example of this, and as the fastest-growing SaaS startup ever,
you know that it’s effective. Their proposition is that they save users time by simplifying how
teams communicate:

Product Launch
What is a Product Launch?
A product launch refers to a business’s planned and coordinated effort to debut a new product to
the market and make that product generally available for purchase. A product launch serves
many purposes for an organization— giving customers the chance to buy the new product is only
one of them. It also helps an organization build anticipation for the product, gather valuable
feedback from early users, and create momentum and industry recognition for the company.
Product Launch Checklists
Businesses need to plan their product launches strategically and well in advance of their planned
launch date. This is because a successful product launch requires the coordinated effort of many
teams and departments across the company—not only product management and development,
but also marketing, sales, customer support, finance, PR, etc.
Every organization’s circumstances are unique, but a typical checklist should include at least the
following:
1. Make sure the team has successfully executed on the strategic vision outlined in the product
roadmap
2. Test and QA the new product
3. Draft and distribute sales and marketing collateral
4. Train the sales team on the new product
5. Train the customer support department on the new product
6. Complete the product’s support and/or technical documentation
7. Let your entire organization know about the approaching product launch
8. Develop and review the customer journey to buy the product, make sure the process is as
smooth as possible
9. Devise a plan for tracking user behavior and/or gathering feedback from early users
10. Decide on the metrics you and your team will use to judge the success or failure —for
example, revenue or new users within a certain timeframe.
11. Conduct a product launch pre-mortem— where your product team thinks through possible
problems or missteps that could hurt your product launch and prepares plans of action for each
potential problem in advance.
Here are some recent product launches that will surely inspire you for your next product launch.

1. EVOLVE by PepsiCo
The Plant-based protein drink from PepsiCo is getting a fresh new look. They employed their in-
house design team to create new packaging designs for their reformulated EVOLVE drink that is
being released in new flavors.
The redesigned packaging is inspired by the outdoors, and the design matches the new flavors. In
the new design, PepsiCo has highlighted the Big Bend National Park, Glacier National Park,
Hawaii’s Haleakala National Park, and the Rocky Mountain National Park. The new design
shows the brand's commitment to preserving the National Parks.
Highlighting the natural heritage of a region is a great way to communicate that you care about
the environment. If you prioritize sustainable manufacturing practices, product packaging is a
great way to show that.

2. The Ordinary AHA 30% + BHA 2% Peeling Solution

The Ordinary's marketing efforts often match their branding. They have an immense focus on
transparency and simplicity, providing high-quality products at industry-challenging prices.
While Instagram is the staple marketing platform for a lot of brands, including The Ordinary, a
TikTok video going viral made their Peeling solution immensely popular.
The TikTok user @kaelynwhitee posted a video showing her skin in a split-screen before-after
video after she discovered this product from The Ordinary. Kae’s video racked up over half a
million views and the brand sold over fifty thousand bottles of their peeling solution in the
following two weeks.
If it is a cosmetic or a personal care product that you are selling, make sure that you use the right
platform to promote the product, and that too, in the right way. Instead of creating a montage or
doing influencer marketing, having a person try it out on social media is way better. The core
idea is to find someone to whom your target audience can relate.

3. Garnier Whole Blends Shampoo Bar

Bottles of cosmetics and personal care products are one of the major causes of plastic pollution.
Garnier is addressing that with their new Whole Blend Shampoo bars that do not require any
plastic packaging. Each bar can last up to two months, and the wrapper is 97% recyclable
While the plastic-free packaging is the focus of the product, the post by Drew Barrymore shows
that even in a bar form, the product is just as effective. Your product does not need to be some
designer skincare treatment or hair care product to be effective. If you are taking steps to reduce
plastic waste and care for the planet, you will have to make some compromises.
However, if you are confident about the effectiveness of your product, and you can find someone
influential to back up your claims, then your product is getting a successful laun

4. Planet KIND by Gillette

Gillette’s new product lineup is called Planet Kind, and like most other brands, the packaging
uses mostly recycled materials. Their new packaging and products now feature a Jungle Mist
shade with blue and gray accents. Gillette has partnered with Plastic Bank and is helping reduce
ocean plastic waste.
Planet KIND recently got featured in Harper’s Bazaar on sustainable razors. Shaves are always
wasteful, particularly when we use single-use razors. Planet KIND’s entire marketing effort
focuses on how they are helping reduce plastic waste by eliminating single-use plastics and how
they are recycling plastics.
What sells Planet KIND products isn’t its efficiency or quality, but the fact that it’s better for the
planet. The brand is educating the consumer on how the purchase of their product is helping
eliminate plastic waste. While it might be difficult to offer an industry-challenging product at a
low price, you can always focus on how you are making the planet a better place through your
sustainable practices.

5. Kindfull by Target
Kindfull by Target is a new range of animal food that is free from soy, corn, and wheat. The
packaging comes with colorful drawings allowing buyers to quickly distinguish between flavors.
The packaging design has an aesthetically pleasing look while being functional, giving it the
look of a premium product. Each pack comes at $10 or less, making pet ownership more
affordable.
With the pandemic, pet adoption was on the rise and now, with the back-to-school season
kicking in, people are spending more. Target is expecting to see an improvement in sales in the
coming year and is preparing accordingly. The new lineup of pet food feels right at home at
Target, offering good quality at an affordable price.
What sets Kindfull apart is the pleasing and colorful packaging which does not look like a $10
product at all. It does look quite like a wellness product which Target uses to blend in this new
product with their existing lineup of wellness products. Here, the key takeaway is that you
should never compromise on packaging design even when launching a value-for-money product.
The packaging design and artwork communicate a lot about your brand, and you should always
keep that in mind.

6. Absolut Juice
The new Absolut Juice is part Absolut Vodka and part natural juice with natural flavors co-
created with Lizzo. It comes in Apple and Strawberry flavors and the Absolut website comes
with a wide range of cocktail recipes that you can make with their new product.
The “Get Juicy” commercial feature Lizzo gained a lot of traction. The commercial highlights
how seasonal flavors can be the center of the summer party. The commercial also celebrates the
first single release from the artist. The song “Juice” and the product are a perfect match.
Here, Absolut doesn't only promote a new product, but also helps a rising artist by promoting her
new song. Juice by Lizzo made it to some of the top charts globally. When you are trying to
launch a new product, try to look for someone who will also be benefited while promoting your
product.

7. The New HARD MTN DEW

While there is no shortage of hard seltzer brands, the new launch from Mountain Dew gives
the flavor of the dew of hard seltzer drinkers, a result of a partnership between PepsiCo and
Boston Beer. The Hard Mountain Dew or MTN DEW as it says on the package is for adults of
legal drinking age as it has an ABV of 5%. The public is already enjoying over this sudden
launch.
Each soda can come with bold and edgy visuals that go well with the well-established Mountain
Dew branding. It comes with Original, Black Cherry, and Watermelon flavors. Each packaging
comes in black with extreme illustrations of wild animals. The Hard MTN DEW is a great
example of how you can leverage your existing brand identity to launch new products in the
market, even though it can be extremely competitive. You can always add your uniqueness to the
mix like Mountain Dew has done here.