TEGA Industries: The South Africa Acquisition

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Abstract

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, 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, labour-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.

Additional Information

Product Type Case
Reference No. STR0449
Title TEGA Industries: The South Africa Acquisition
Pages 19
Published on Nov 26, 2020
Year of Event 2006-2016
Authors Krishnamurthy, Renganathan; Dwibedy, Punyashlok; Aggarwal, Mayank; Karna, Amit;
Area Strategy (STR)
Discipline Human Resource Management, International Business, Strategic Management
Sector Manufacturing, Mining
Learning Objective 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
Keywords International Expansion; Cross-border acquisition; Emerging Market Firm; Family Business; HQ-Subsidiary Relationship
Country India; South Africa
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