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TEGA Industries Ltd: Journey of an India...

Singla, Chitra, Si...

Case

TEGA Industries Ltd: Journey of an Indian MNC (Part B)

Singla, Chitra; Singh, Bulbul

IIMA-STR0451(B) | Published December 31, 2020 | 9 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Madan Mohanka set up Tega Industries Ltd. in 1976 to manufacture abrasion-resistant rubber mill lining products used in the mining and mineral processing industries. In 2011, as part of its inorganic expansion strategy, Tega bought a company in Chile. However, post-acquisition, several managerial, legal and commercial problems crept up in its manufacturing facilities in Chile, leading to financial downturn in Tega's fortunes in 2016 and compelling it to planning a revival between 2016-19. However, political unrest and Covid 19 uncertainty has caused a dilemma related to further investments worth INR 1.25 billion. Management is contemplating the next steps.

To learn about international M&A processes such as due diligence, integration management and value creation. To learn about the revival of a sick company.