Abstract
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.
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | STR0451(B) |
| Title | TEGA Industries Ltd: Journey of an Indian MNC (Part B) |
| Pages | 9 |
| Published on | Dec 31, 2020 |
| Year of Event | 2019 |
| Authors | Singla, Chitra; Singh, Bulbul; |
| Area | Strategy (STR) |
| Discipline | Human Resource Management, International Business, Strategic Management |
| Sector | Manufacturing, Mining |
| Learning Objective | 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. |
| Keywords | Strategy; M&A; Turnaround; Internationalization; Indian MNC; Chile |
| Country | Chile |
| Organization | Tega Industries Ltd |
| Access | For All |
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