The Tata Group emerged as the acknowledged leader in acquisitions overseas in 2004.

Powered by the urge to go global, solid market fundamentals and the drive to create cost-competitive products, corporate India went on an acquisition spree in 2004. Acquisitions were not limited to the domestic market, but also spread overseas.

The buyout brigade was led by the Tata group, which made two major acquisitions abroad - group company Videsh Sanchar Nigam Ltd (VSNL) snapped up Tyco Global Network, while Tata Steel acquired Singapore-based NatSteel. Other group companies like Tata Tea were also active with their own takeovers.

Tata Steel's (Tisco) acquisition of the Singapore-based NatSteel for a hefty Rs1,313 crore in August 2004, topped the charts for the group during the year. It also included the Singapore government-owned company's 26 per cent stake in Malaysia-based Southern Steel Berhad, a 1.3-million tonne steel manufacturer. Announcing the buyout from Singapore through videoconferencing, Tisco MD B Muthuraman said it would help the company extend its steel-making footprint to seven Asian countries, including Vietnam, Singapore and Thailand, besides securing easier access to the buzzing Asian markets.

Muthuraman said that NatSteel, which owns mills in China, Thailand, Vietnam, the Philippines and Australia, with combined sales of Rs3,800 crore in 2003, would spin off its steel business into a wholly-owned subsidiary, NatSteel Asia Pte Ltd (NatSteel Asia), which would be subsequently acquired by Tata Steel . Both Tata Steel and NatSteel shareholders have since cleared the mega-deal. During the year, Tata Steel also acquired a small steel wire-manufacturing unit in Sri Lanka, details of which were not provided.

It seems this is only a beginning. In early 2005, Tata Steel said that bigger deals were on the way. Another recent announcement by group holding company Tata Sons' executive director Alan Gosling indicated that Tata's acquisitions so far are nothing compared to what is coming up. Await bigger and bigger deals!

Yet another Tata big buy was the acquisition of South Korea-based Daewoo Commercial Vehicle Co Ltd (DWCV) for Korean Won120 billion or Rs465 crore by Tata Motors Ltd. The acquisition of DWCV was completed in March. Tata chairman Ratan Tata, who was in Korea for the takeover, said, "This is a major step for Tata Motors and a milestone for the group in its quest for globalisation. I am confident that both companies will derive considerable benefits from this arrangement." The financing for this acquisition was to be equally through Tata Motors' equity in DWCV and direct lending facilities to the Korean truck manufacturer. Tata said, adding that the deal was synergistic, as DWCV makes commercial vehicles in 200-400 BHP range, while Tata Motors makes trucks up to a maximum capacity of 200 BHP.

Another big-ticket Tata acquisition was Tyco Global Network, which was bought over up by internet and telecommunications major VSNL in November 2004. VSNL was acquired by the Tatas from the government, when during its divestment in 2002. VSNL purchased Tyco for Rs585 crore ($130 million) in an all-cash deal, pipping Reliance Industries Ltd, which had also bid for the submarine cable provider

. The latter had bought over US-based Flag Telecom in January for $211 million. VSNL expected to complete the deal in six to nine months, which would give it control over a 60,000-km cable network spanning over three continents, Tata Industries managing director Kishor Chaukar said. "The price VSNL has paid is a fraction of Tyco's total cable assets. It is a unique global network, with assets of almost $2.5 billion," he added.

In March 2004, VSNL had acquired Chennai-based Dishnet DSL's internet service provider (ISP) division for Rs270 crore in a slump-sale transaction.The deal included internet assets, employees and customers of Dishnet's ISP division. This acquisition consolidated VSNL's position in the dial-up space, giving it control over 600 owned and franchised Dishnet cyber cafes as well as broadband assets serving more than 50,000 customers in key cities, N Srinath, director operations, VSNL said.

To strengthen its offerings for the insurance sector, Tata Consultancy Services (TCS) acquired Phoenix Global Solutions (PGS) in May 2004 for an undisclosed sum. PGS, an insurance company, is a subsidiary of US-based Phoenix Companies Inc. According to S Ramadorai, MD and CEO of TCS, the acquisition was in line with the focus to consolidate the strengths developed by the company over a period of time in the financial segments. "The acquisition will give TCS an impetus to attract new customers and at the same time, help grow our existing clients," he added.

Earlier, in March 2004, TCS had acquired the remaining 51 per cent stake in Aviation Software Development Consultancy India Ltd (ASDC) , a company providing consultancy and solutions to the aviation industry, from Singapore Airlines, in a cash deal of Rs140.25 million, which was paid by Tata Sons Ltd (TSL). Earlier, TCS held a 49 per cent stake through TSL and Tata Industries Ltd in the company.

Tata Tea Ltd acquired a couple of small plantations in the country, details of which were also not provided.