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TEGA Industries: The South Africa Acquis...

Krishnamurthy, Ren...

Case

TEGA Industries: The South Africa Acquisition

Krishnamurthy, Renganathan; Dwibedy, Punyashlok; Aggarwal, Mayank; Karna, Amit

IIMA-STR0449 | Published November 26, 2020 | 20 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

This case describes the international acquisition of a South African firm Beruc by an Indian Family owned firm Tega Industries Ltd., a prominent player in the business of selling solutions to the consumers on liners, mill liners, screening equipment and conveyors, apart from wear and flow equipment. Ten years after the acquisition, the benefits were not without problems. The issues facing the founder of Tega included declining financials of the subsidiary, labor-related problems, supply chain issues, concerns from clients in South Africa and sustained tensions between the local leadership and the corporate headquarters in India. With several changes in the leadership of the South African subsidiary (including Indian South African origin leaders), the ride was not smooth.

Through a discussion of the case, students will be able to Understand the complexities faced by family owned firms while pursuing international diversification, Appreciate the international aspirations of emerging market firms and challenges therein, Understand the acquisition mode of international expansion by an Indian manufacturing firm.