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Abstract:

As India moves towards 2005 product patent regime, many Indian firms are scouting for buyouts and acquisitionsof the US and European companies. While Ranbaxy, Dr. Reddy's, Wockhardt and others are in the forefront for acquiring such companies, Nicholas Piramal India Ltd. (NPIL), is doing just the opposite. The company is acquiring more Indian than western firms. In the Indian pharma industry, NPIL has made more acquisitions than any other firm. In 2003, NPIL ranked third in the Indian pharmaceutical industry with a market share of 4.4%, next only tomarket leader GlaxoSmithKline (5.7%) and Ranbaxy (4.7%). By adopting the strategy of mergers and acquisitions(M&As), it intends to become the top player in the Indian pharma industry.
dagogical Objectives:

To discuss NPIL's business strategy of acquiring firms and analyse whether the company's M&A strategy would help it emerge as a leader in the Indian pharmaceutical industry.
Keywords : Nicholas Piramal India Limited; Mergers, Acquisitions, Alliances Case Study ;

Ajay Piramal; Joint venture; Mergers and acquisitions; Research and development; Growth strategy; Indian pharmaceutical industry; Blockbuster drugs; GlaxoSmithKline; Rhone Poulenc; Generic competition; Big pharma; Patents and patented drugs; Food and Drug Administration; 1970 Indian Patent Act.
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The Takeover of Qantas: A Survival strategy? MBA Case Studies


Abstract:

Qantas Airways was the national icon of Australia. It was a legend in the aviation industry and exhibited good performance in spite of the volatility of the aviation industry. In 2006, it earned US$13646.7 million. It was able to obtain considerable cost savings of $501 million in 2006 by its Sustainable Futures Program. The company had adopted a policy of maximizing share holder value and kept an optimal capital structure which supported an investment grade credit rating. At Qantas, it was a custom to analyse the prize, availability, constraints, debt flexibility and credit rating before taking any capital management decision. Qantas had ambitious plans of acquiring 115 B-787s airplanes. It accepted a takeover by a consortium involving Allco group, Macquarie bank, Texas pacific group and Onex. The Texas Pacific group was well known for acquiring unprofitable companies and turning them around. It had long been scouting the Asia Pacific market for a long term investment and the takeover of Qantas would provide it an exciting opportunity. The consortium promised Qantasto provide the capital needed for the fleet expansion program. But after this deal Qantas would be a heavily leveraged firm. Given the volatility of the airline industry and a heavily leveraged capital structure would Qantas be able to exhibit robust performance was a debatable question. To understand the dynamics of the global aviation industry To understand the optimal capital structure and the effect of leveraging

Understanding the capital expenditure decisions of Qantas and the impact on the capital structure of the firm To discuss the future financing strategies of Qantas.
Keywords : Qantas Airways, Australian aviation industry, financial risk, performance

of Qantas, Debt-equity, maximising share holder's value, capital structure, take over, Leveraged buyout, Private equity, Allco group, Texas Pacific group, Macquarie bank, Strategic Alliances, Sustainable Futures Program, fuel prices, Finance Case Study, airlines deregulation