Indian Journal of Industrial Relations: Economics & Social Dev.

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Indian Conglomerates Diversification & Performance


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1 Strategic Management & International Business Strategy, National Institute of Industrial Engineering, Vihar Lake Road, Mumbai-400087, India
     

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Strategic management literature is flooded with the notion of diversification strategy. Some researchers point out that diversification enhances corporate performance while there has been an antagonistic school which held that diversification destroyed corporate value and led to poor performance of conglomerates. The author examines the impact of diversification on performance of seven Indian conglomerates on different parameters such as profitability, market share and growth. Totally these seven conglomerates represented data of 324 companies coming from 80 different industries. Data was collected for the year 2013-2014. This study indicated that there was a very moderate effect on conglomerate performance.
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  • Indian Conglomerates Diversification & Performance

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Authors

Som Sekhar Bhattacharyya
Strategic Management & International Business Strategy, National Institute of Industrial Engineering, Vihar Lake Road, Mumbai-400087, India

Abstract


Strategic management literature is flooded with the notion of diversification strategy. Some researchers point out that diversification enhances corporate performance while there has been an antagonistic school which held that diversification destroyed corporate value and led to poor performance of conglomerates. The author examines the impact of diversification on performance of seven Indian conglomerates on different parameters such as profitability, market share and growth. Totally these seven conglomerates represented data of 324 companies coming from 80 different industries. Data was collected for the year 2013-2014. This study indicated that there was a very moderate effect on conglomerate performance.

References