CII Communique July 2011

m & acorporates will nothave multiplicity ofreporting formats.Mr Mittal said thatcompetition lawsare also applicablet o g o v e r n m e n tinstitutions and PSUs.A committee to draft anational competitionpolicy has been setup and a draft will beup for review soon,he said, adding thatParliament wouldreview the CompaniesBill in the monsoonsession.Addressing the Valedictory Session, Mr. Anurag Goel,Member (Combinations), Competition Commission ofIndia (CCI), said the CCI recognizes and realizes thatmerger, acquisitions and JVs are an extremely importanttool for economic growth that needs enabling andfacilitation. The CCI is proactive in scrutinizing mergerswith a positive outlook where they look to partner withIndian industry. Urging industry to come forward andtell CCI how the two can cooperate, he stressed thatpartnership and trust between the two is vital.Putting Indian business into global perspective, Mr.Adi Godrej, President Designate, CII, and Chairman,Godrej Group, saidthe 20 years sinceliberalization haveseen the competitiveframes of referenceoverturned. Indiancompanies today haveto compete with thebest in the world. In aninterconnected world,businesses have tothink big, act fast andtranscend geographicboundaries by M&A,to stay globallycompetitive, he said.Yet, Mr Godrej advisedcaution consideringthat over 50% of allmergers in the nationhad failed to achievetheir stated objectiveand have lost money.Hence, unless therewas a strategic needfor M&A, there wasno sense in going forthe same, he said.Calling for legitimateregulation of M&Awithout it beingr e s t r i c t i v e o rbureaucratizing theprocess, Mr Godrejvoiced industry’sfears about the impactof merger controlregulations; the statutory time limit for M&A approval,which at over 7 months is one of the longest in the world;alignment of multiple regulations to ensure that companiesare not inconvenienced by varying standards; etc. Pointingout that Indian companies would need high inflow of capitalto build scale rapidly and compete successfully with MNCs,he sought further liberalization of policies in key sectorslike insurance, multi-brand retail and real estate.Adi B Godrej, President Designate, CII, and Chairman, Godrej Group, Ranjan Biswas,National Leader & Partner, Transaction Advisory Services, Ernst & Young, D K Mittal,Secretary, Corporate Affairs; and Zia Mody, Chairperson, CII M&A Forum, andFounder & Sr Partner, AZB & Partners, at the 1st National M&A Summit in MumbaiMs. Zia Mody, Chairperson, CII M&A Forum, andManaging Partner, AZB Partners, applauded theconsultative approach adopted by the MCA and CCIin finalizing combination regulations.Mr. Mittal also released a special Summit themepaper: ‘TransactionsOptimizing• Optimizing asset portfolio• Delivery of synergies and effective2011 – Setting thestage for the nextera of M&A’ jointlyintegrationd e v e l o p e d b yThe Capital Agenda: Building Competitive AdvantagePreservingStress and distress — e.g., liquidityissues and turnaround plans• Customer and supplier analysis• Preserving tax assets and minimizing • Improving working capital andcostsreleasing cash• Refinancing or restructuring debt, • Optimizing capital structureequity and other obligations• Optimizing tax and corporate• D e a l i n g w i t h s t a k e h o l d e r structurerelationships and pressure• Dispute resolutionInvestingRaising• Acquisitions and alliances • Fundraising (equity and debt): IPOreadiness, rights issues, PE, private• Planning and structuring transactionsplacement and capital marketsto optimize stakeholder return• Optimizing funding structures• Focused due diligence to mitigaterisk and drive value• Asset divestment• Asset valuations• Infrastructure projects• Cost– and tax–efficient structures• Cost– and tax–efficient structuresSource: CII-EY Paper Transactions 2011 – Setting the stage for the next era of M&ACII and Ernst &Young.The paperanalyzes the currentM&A environment,i n n o v a t i v e d e a ls t r a t e g i e s , t h eimpact of regulatoryintervention andcapital availability,and avenues ofi n v e s t m e n t a n doptimization, whilemapping the latesttransaction statisticsand trends.Communiqué July 2011 | 31