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Ph.D.
(Management)
A STUDY ON IMPACT OF MERGERS AND ACQUISITIONS WITH REFERENCE
TO PRODUCTIVITY AND PROFITABILITY OF CEMENT COMPANIES IN INDIA”

Ph.D. Scholar : Bhavna Bharat Parwani
Research Supervisor : Dr. Abhishek K. Parikh

Regi. No.: 14146031006
Abstract :
Background : The thesis examines the impact of M&A on all manufacturing companies
including cement companies in India, with reference to productivity and profitability. The
main aim of this project is to identify which factors have significant impact on
productivity and profitability while comparing pre and post M&A event. Twenty-one ratios
are selected based upon four criteria – Topline measures, Absolute profit measures,
Productivity measures and Profitability measures. Further 57 hypothesis are tested to
understand pre and post M&A change on productivity and profitability along with impact
of productivity on Profitability.

Research Conducted : The study is based upon the secondary data collection. The data
collection began from taking an overview of the sector company’s financial highlights,
balance sheet, profit & loss account in companies’ annual reports and databases. The
data for both Pre Merger and Post Merger Event has been extracted from Capitaline
Database. Researcher has selected year 2007 to 2017 to identify M&A deals in the
Manufacturing sector with a special reference to M&A in Cement Industries in India.The
study is conducted on 103 manufacturing companies along with cement companies.
Thereafter 5 years pre and post M&A data are compared and analysed. Date is collected
from capitaline. Paired ‘ t-test’ and linear regression analysis are used and results of
SPSS are studied.

Findings : It can be inferred from the study of M&A in all manufacturing and M&A in
cement industry that Topline in both the cases are showing significant impact of M&A,
Net sales, Total Assets, Gross block, Current Asset and Raw material have increased
significantly.

Whereas the absolute profit in case of cement company shows significant impact of M&A
and in case of all manufacturing companies there is no significant impact of M&A on
absolute profit which is due to client base synergy established after M&A in case of
cement companies as the level of inventory gets reduced after M&A and absolute profit
improves(Top line – Expenses) and also due to the M&A in case of cement companies
results in increase in the client base. Cement companies get benefit of economic of scale
also.

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