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Monday, April 4, 2011

In The Shadow of Big Deals

My analyst friends have gone to town about International Paper buying Andhra Paper,a 100 year old company of the Bangur family,before that we had Vedanta-Cairn,Reliance-BP etc

Here I am in a contrarian mindset and I feel that India as a market is still not a uniform economy where one swallow can make a summer!Each firm and sector has its own exigencies and USPs as well as bottleneck and unique strategies to overcome them.

Infrastructure is still stuck in the quagmire of bureaucratic redtape,project cost overuns,land acquisition factors that make this sunshine segment a very visible but overhyped area to invest in,unless someone has a 15+years horizon.

I see these problems happening all over the country and feel quite negative in the medium term as to the quantum of funding required and how efficiently those funds can be used.The building technology in India still remains outdated and a bit of a museum sideshow but have not seen many manufacturing firms taking up the challenge.Can anyone find me 3-4 such cos that produce equipment for construction in India?