Latest High-Impact Mergers and Acquisitions in India

Posted On 2024-02-07

Author Ritesh Garg

Latest High-Impact Mergers and Acquisitions in India

Ever thought about how businesses in India are changing and growing? A big part of this change comes from mergers and acquisitions, or M&As for short, especially in 2023. 

Notably, the Indian M&A scene saw over 90 deals, amounting to approximately $32 billion in value, across diverse sectors such as renewable energy, manufacturing, logistics, and infrastructure. They highlight a strong confidence in the Indian economy, driven by robust domestic demand and solid financial foundations despite global economic challenges.

Some of the standout deals include Alibaba selling part of Paytm and Adani Group's move into media with NDTV. Each of these deals tells us about where businesses are looking to grow and how they're trying to get stronger in their fields.

As we keep reading and exploring these trends, the path to leveraging these opportunities becomes clearer, highlighting the importance of staying informed in this business environment.

Top Mergers and Acquisitions in India in 2023

Deal Name/
Companies Involved

Deal Date

Reasons for M&A


Possible Impact

AMG Media Networks & IANS

First acquisition - December 2023

Second acquisition - January 2024 

AMG Media Networks wants to grow in the media industry by using IANS's news reporting and distribution. These deals help AMG become a big player in the media.

The main challenge is to combine IANS with AMG's bigger media goals while keeping news reporting fair and independent. 

It's important to keep news quality high while expanding the business.

With these deals, AMG Media Networks can now reach more people and have more influence in the media world. IANS get more resources and chances to grow. The partnership could lead to more diverse news and media projects. 

By owning a 50.5% stake initially and then increasing its share to 76% in voting rights and 99.26% in total, AMG Media Networks can shape the future of IANS, bringing new opportunities and challenges in delivering news to the public.

Ed-a-Mamma & Reliance Retail Ventures 

Sep 2023

This partnership is primarily driven by a shared vision for sustainability and expanding into new categories like personal care, baby furniture, children's storybooks, and an animated series. 

Ed-a-Mamma, promoted by Alia Bhatt and appreciated by Isha Ambani, aligns with Reliance Retail's aim to support eco-conscious fashion and products. Both founders, being new mothers, also bring a personal commitment to the brand's direction, focusing on nature and eco-friendly products.

The main challenge lies in maintaining the brand's core values of sustainability and ethical sourcing as it scales up and expands into new product categories under the vast umbrella of Reliance Retail. 

Balancing growth with maintaining the brand's unique identity and commitment to eco-conscious practices will be crucial.

Reliance's 51% stake acquisition offers Ed-a-Mamma significant advantages in scaling up and reaching wider markets, leveraging Reliance's extensive resources and network. 

For Reliance, the deal enriches its portfolio with a sustainable brand, showcasing its commitment to eco-friendly practices. 

Ed-a-Mamma stands to gain considerably, potentially increasing its footprint and influence in sustainable fashion and products.

CarTrade Tech & Sobek Auto India

Jul 2023

CarTrade's acquisition of Sobek Auto India represents a strategic enhancement of its services in the automotive sector. 

This move is aimed at widening its offerings and strengthening its market position. 

The integration of Sobek's operations within CarTrade's ecosystem is anticipated to be a meticulous process, focusing on aligning various services and platforms for a seamless customer experience.

The expected outcome of this M&A activity is a more robust service portfolio for CarTrade, leading to an increased customer base and greater diversity in its automotive services.

Saregama & Pocket Aces Pictures

Sep 2023

Saregama wants to grow in the music industry across all Indian languages and get more involved in digital entertainment. 

By buying Pocket Aces, they can reach more young people with digital content like web series and music videos.

Integrating the diverse content and operational strategies of Saregama and Pocket Aces could pose challenges, including aligning the content creation process and maximizing synergies across the artist and influencer management and long-format video creation sectors.

Saregama's purchase of 51.8% of Pocket Aces and plans to buy another 41% in 15 months could greatly strengthen its business. 

This move could help Saregama reach more young people with digital content and make more money by using Pocket Aces' large online following and creative work. 

Disney-Reliance Media Merger


The deal aims to combine Disney's Hotstar, which has not been profitable, with Ambani's media business, creating a dominant force in India's entertainment sector. 

This strategic move seeks to consolidate its offerings and improve Hotstar's financial performance.

The merger is expected to face tough antitrust examination, with the likelihood that certain assets may need to be sold off to gain approval. 

This is to ensure that the new entity does not unfairly dominate the market.

If approved, the merger could significantly alter the competitive dynamics of India's television and streaming services, potentially leading to a market controlled by fewer, larger players.

Kotak Mahindra & Sonata Finance

Oct 2023

The acquisition aims to deepen Kotak Mahindra Bank's presence in rural and semi-urban areas in North India, leveraging Sonata Finance's strong footprint with Rs 1,903 crore of assets under management and a service base of 9 lakh people as of December 2022.

The significant time gap between the announcement of intent in February and RBI approval in October suggests navigating regulatory approvals can be a lengthy process, highlighting the regulatory and due diligence challenges in banking M&As.

The acquisition will likely enhance Kotak Mahindra Bank's distribution network and customer base in underserved areas, potentially increasing financial inclusion and offering new growth avenues for the bank in the microfinance sector.

Emerging Trends in Indian M&A

In recent years, mergers and acquisitions (M&A) in India have shown strong resilience and innovation, reflecting the country's growing economic strength and global influence. The year 2023 has been particularly notable for several high-impact M&A activities, signaling key trends and strategic shifts in the Indian business landscape. 

Common Themes Across the Top M&A Deals

One prominent theme is the consolidation in key industries, such as digital payments, media, and finance, where major players are acquiring or merging with competitors to strengthen their market position and expand their service offerings. 

For instance, the strategic acquisition of NDTV by the Adani Group highlights the push towards consolidating market presence and diversifying business portfolios.

Another common theme is the pursuit of technological innovation and digital transformation. Companies are actively seeking acquisitions that can enhance their digital capabilities, from e-commerce platforms to fintech and Edtech startups. 

This trend is driven by the need to stay competitive in an increasingly digital economy and cater to the changing consumer behaviors post-pandemic.

The focus on sustainability and renewable energy is also a significant theme, with acquisitions in the renewable energy sector indicating a strategic shift towards sustainable business practices. 

The interest in renewable energy assets reflects a long-term investment in green energy, driven by both regulatory pressures and consumer demand for sustainable options.

The increasing involvement of PE and VC firms in M&A deals highlights the growing appetite for investment in Indian companies, supporting their expansion and innovation strategies. This influx of investment capital is enabling companies across sectors to scale up operations, enter new markets, and invest in technology and talent.

Sectoral Patterns and Industry Focus

Financial Services and Fintech: Increased M&A activity here is driven by digital transformation, with companies capitalizing on the growing digital consumer base.

Healthcare and Pharmaceuticals: This sector's M&A growth is fueled by the need to expand healthcare services and infrastructure, a trend accelerated by the pandemic.

Renewable Energy and Sustainability: There's a surge in M&A activities within renewable energy, driven by global and national sustainability goals.

Technology and E-commerce: The shift towards digital services and e-commerce has made this sector a prime area for M&A, with businesses seeking to leverage accelerated digital adoption.

Analysis of Motivations Behind M&A Activities

The motivations behind mergers and acquisitions (M&A) in India are diverse, targeting strategic goals like enhancing competitiveness, entering new markets, and gaining new technologies and capabilities. Key drivers include

Pursuit of Scale and Efficiency: Companies aim to grow their market presence and achieve cost advantages, especially in sectors like financial services where a larger scale can significantly improve service delivery and customer reach.

Diversification: Businesses are branching into new areas or markets to reduce risks and seize new opportunities. For instance, traditional energy companies are venturing into the renewable energy sector to adapt to the global move towards sustainable energy.

Technological Advancements: Acquiring tech companies or startups is a strategy to bolster digital capabilities and introduce innovative services, notably in the tech and e-commerce industries.

Comparison with Previous Years' Trends

When comparing current M&A trends with those of previous years, there are both new developments and ongoing trends:

  • The emphasis on digital transformation remains strong, with increased investment reflecting the rapid uptake of digital solutions post-pandemic.

  • There's a growing emphasis on sustainability and renewable energy, in line with worldwide environmental goals.

  • Indian companies are more aggressively entering global markets, and foreign investment in Indian businesses continues robustly, attracted by India's economic potential.

  • Changes in regulations and geopolitical factors are increasingly affecting deal structures and strategic decisions.

Despite global economic challenges, the Indian M&A market's resilience highlights the strength of the Indian economy and the forward-thinking approach of its businesses. 

Final Thoughts

This year, India's business scene has seen some exciting moves, with companies joining forces or buying each other out. But why should we care about all this? Well, these mergers and acquisitions tell us where India's economy might be heading, pointing out hot sectors that are growing fast. They're a goldmine of insights for anyone interested in the future of business, from entrepreneurs and investors to students and policymakers.

And there's more to dig into. Each deal has a story that can teach us about strategy, innovation, and how to make it big. So, keeping an eye on these developments is not just interesting—it's essential for anyone looking to understand the business world better. Let's keep the conversation going and explore what makes these deals tick and what they mean for India's future

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