45-641: Dalmia Bharat Limited ( DBL ) is an Indian conglomerate , which traces its origins to the businesses established by brothers Ramkrishna Dalmia and Jaidayal Dalmia in eastern India in the first half of the 20th century. In the 1930s, the group merged with the businesses of the Jain family to form the Dalmia-Jain Group . In 1948, the two families decided to split the businesses; the Dalmia businesses were further divided between Ramkrishna and Jaidayal. Today,
90-429: A market inefficiency , which undervalues the true strength of these stocks. In her 1999 book No Logo , Naomi Klein provides several examples of mergers and acquisitions between media companies designed to create conglomerates to create synergy between them: A relatively new development, Internet conglomerates, such as Alphabet , Google's parent company belong to the modern media conglomerate group and play
135-871: A parent company that owns and controls many subsidiaries , which are legally independent but financially and strategically dependent on the parent company. Conglomerates are often large and multinational corporations that have a global presence and a diversified portfolio of products and services. Conglomerates can be formed by merger and acquisitions , spin-offs , or joint ventures . Conglomerates are common in many countries and sectors, such as media , banking , energy , mining , manufacturing , retail , defense , and transportation . This type of organization aims to achieve economies of scale , market power, risk diversification , and financial synergy. However, they also face challenges such as complexity, bureaucracy , agency problems, and regulation . The popularity of conglomerates has varied over time and across regions. In
180-667: A dairy, and three Andrew Yule jute mills. In 1946, Ramkrishna Dalmia bought out Bennett, Coleman & Co. Ltd. , the publisher of The Times of India ; which was later sold to the Jains after a split in the Dalmia-Jain Group. By 1948, differences had developed between the Dalmias and the Jains. On 12 May 1948, the two families worked out the details of a split at the family house of the Jains in Mussoorie . On 31 May 1948,
225-486: A disorienting and demoralizing experience for executives at acquired companies—those who were not immediately laid off found themselves at the mercy of the conglomerate's executives in some other distant city. Most conglomerates' headquarters were located on the West Coast or East Coast , while many of their acquisitions were located in the country's interior. Many interior cities were devastated by repeatedly losing
270-549: A focus in Asia.) In Japan, a different model of conglomerate, the keiretsu , evolved. Whereas the Western model of conglomerate consists of a single corporation with multiple subsidiaries controlled by that corporation, the companies in a keiretsu are linked by interlocking shareholdings and a central role of a bank. Mitsui , Mitsubishi , Sumitomo are some of Japan's best-known keiretsu, reaching from automobile manufacturing to
315-466: A major role within various industries, such as brand management . In most cases, Internet conglomerates consist of corporations that own several medium-sized online or hybrid online-offline projects. In many cases, newly joined corporations get higher returns on investment , access to business contacts, and better rates on loans from various banks. Similar to other industries many companies can be termed as conglomerates. Dalmiapuram Kallakudi
360-565: A number of companies and conglomerates trace their origin to the original Dalmia businesses; these include Dalmia Brothers, which is now managed by Vishnu Hari Dalmia's sons, Sanjay Dalmia and Anurag Dalmia; Dalmia Bharat Group, which is managed by Gautam Dalmia & Puneet Dalmia; Renaissance Group; and their subsidiaries. The Dalmia Group of companies traces its origins to Ramkrishna Dalmia and Jaidayal Dalmia . The two brothers were born in Jhunjhunu , Rajasthan . The name Dalmia comes from
405-639: A small slice of many companies in a fund rather than owning shares in a conglomerate. Another example of a successful conglomerate is Warren Buffett 's Berkshire Hathaway , a holding company which used surplus capital from its insurance subsidiaries to invest in businesses across a variety of industries. The end of the First World War caused a brief economic crisis in Weimar Germany , permitting entrepreneurs to buy businesses at rock-bottom prices. The most successful, Hugo Stinnes , established
450-450: A suppression of South Indians by North India. It was the first notable demonstration by M Karunanidhi , the five-time Chief Minister of Tamil Nadu and his party, the DMK. The DMK party blocked goods trains during the protest. The police opened fire on the demonstration killing two civilians and injuring 16 others. Twelve policemen were injured, including The Deputy Superintendent of Police and
495-658: Is a panchayat town in Tiruchirappalli district in the Indian state of Tamil Nadu . On 15 July 1953, the Dravida Munnetra Kazhagam (DMK) organised a demonstration in Kallakudi against naming the place as Dalmiapuram . A businessman named Ramakrishna Dalmia , from Bihar, established a cement factory in Kallakudi and the place was renamed Dalmiapuram on his request. DMK opposed the move as
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#1732791629599540-472: Is currently China's largest civilian-run conglomerate by revenue. In South Korea , the chaebol is a type of conglomerate owned and operated by a family. A chaebol is also inheritable, as most of the current presidents of chaebols succeeded their fathers or grandfathers. Some of the largest and most well-known Korean chaebols are Samsung , LG , Hyundai Kia and SK . In India, family-owned enterprises became some of Asia's largest conglomerates, such as
585-571: The Aditya Birla Group , Tata Group , Emami , Kirloskar Group , Larsen & Toubro , Mahindra Group , Bajaj Group , ITC Limited , Essar Group , Reliance Industries , Adani Group and the Bharti Enterprises . In Brazil the most important conglomerates are J&F Investimentos , Odebrecht , Itaúsa , Camargo Corrêa , Votorantim Group , Andrade Gutierrez , and Queiroz Galvão. In New Zealand, Fletcher Challenge
630-551: The Sapan brand. It also traded in peanut candy, mustard oil and crash helmets. In the late 1960s, Dalmiapuram-based manufacturing and refractory plants were taken over on lease by Dalmia Industries. The business was carried out under the name Dalmia Ceramic Industries. Dalmia Industries also set up a plant at Bharatpur (Rajasthan) for manufacturing powdered milk and ghee. The company name was changed from Dalmia Dairy Industries Limited to Dalmia Industries Limited in 1989. Hari Machines
675-652: The United States , conglomerates became popular in the 1960s as a form of economic bubble driven by low interest rates and leveraged buyouts. However, many of them collapsed or were broken up in the 1980s due to poor performance, accounting scandals, and antitrust regulation. In contrast, conglomerates have remained prevalent in Asia, especially in China , Japan , South Korea , and India . In mainland China , many state-affiliated enterprises have gone through high value mergers and acquisitions , resulting in some of
720-579: The highest value business transactions of all time. These conglomerates have strong ties with the government and preferential policies and access to capital. During the 1960s, the United States was caught up in a "conglomerate fad " which turned out to be a form of an economic bubble . Due to a combination of low interest rates and a repeating bear-bull market , conglomerates were able to buy smaller companies in leveraged buyouts (sometimes at temporarily deflated values). Famous examples from
765-440: The 1960s include Gulf and Western Industries , Ling-Temco-Vought , ITT Corporation , Litton Industries , Textron , and Teledyne . The trick was to look for acquisition targets with solid earnings and much lower price–earnings ratios than the acquirer. The conglomerate would make a tender offer to the target's shareholders at a princely premium to the target's current stock price. Upon obtaining shareholder approval,
810-627: The 1980s, General Electric also moved into financing and financial services , which in 2005 accounted for about 45% of the company's net earnings. GE formerly owned a minority interest in NBCUniversal , which owns the NBC television network and several other cable networks . United Technologies was also a successful conglomerate until it was dismantled in the late 2010s. With the spread of mutual funds (especially index funds since 1976), investors could more easily obtain diversification by owning
855-659: The Circle Inspector and ten other constables. The demonstration was the first notable demonstration by DMK and for M Karunanidhi who would go on to become the five-time Chief Minister of Tamil Nadu. The government ordered an open judicial inquiry into the incident headed by the District Magistrate of Madurai and the Principal Subordinate Judge of Tuticorin. The judicial inquiries and later court proceedings led to Karunanidhi and
900-530: The Dalmia-Jain Group was dissolved, splitting into what were colloquially known as Dalmia Group (divided between Ramkrishna and his brother Jaidayal) and Sahu Jain Group. However, this split was not official: there was no legal document to this effect. Vivian Bose remarked that the Dalmia-Jain Group's affairs "were so interlocked and complex because of black money and secret, undisclosed assets and undetermined income tax liabilities, that this (dissolution or partition)
945-616: The Starium Innovative Healthcare is around 10 million US dollars. Dalmia Cement Bharat Limited established an annual award, the "Young Achievers Award," in 2014 for young people in northeast India with "exceptional talents". Boxer Mary Kom is the ambassador. Conglomerate (company) A conglomerate ( / k ə ŋ ˈ ɡ l ɒ m ə r ə t / ) is a type of multi-industry company that consists of several different and unrelated business entities that operate in various industries. A conglomerate usually has
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#1732791629599990-603: The United States, some of the examples are The Walt Disney Company , Warner Bros. Discovery and The Trump Organization (see below). In Canada, one of the examples is Hudson's Bay Company . Another such conglomerate is J.D. Irving, Limited , which controls a large portion of the economic activities as well as media in the Province of New Brunswick . Some cite the decreased cost of conglomerate stock (a phenomenon known as conglomerate discount ) as evidential of these disadvantages, while other traders believe this tendency to be
1035-482: The business of DCBL and OCL. The total turnover of the group is over ₹10,000 crore. The Group operates the following businesses, all registered in Tamil Nadu: OCL ( BSE : 502165 , NSE : OCL ) traces its origin to the cement plant set up by Jaidayal Dalmia at Rajgangpur , Orissa Province during 1950-51. Originally named Orissa Cement Limited, the company was incorporated on 11 October 1949, and
1080-593: The business, resulting in the formation of the Dalmia-Jain Group. By the end of 1940, the group was operating several sugar mills, cement plants, chemical factories, engineering plants and a paper mill. The Dalmia-Jain Group challenged ACC 's monopoly in the Indian cement industry by setting up cement factories all over India (including present-day Pakistan). It also ventured into other businesses; its subsidiaries included Bharat Bank, Bharat Fire and General Insurance, Lahore Electric, Govan group of companies, two cotton mills,
1125-563: The businesses controlled by Jaidayal Dalmia's son Vishnu Hari Dalmia. This group of companies is now managed by his sons Sanjay Dalmia (Chairman) and Anurag Dalmia. The group's businesses include: Dalmia Industries ( BSE : 519393 ) is a part of the Sanjay Dalmia Group. It descends from a company that was incorporated in 1937, in Bihar. The original company manufactured dairy products, including powdered milk and ghee , under
1170-455: The conglomerate usually settled the transaction in something other than cash, like debentures , bonds , warrants or convertible debentures (issuing the latter two would effectively dilute its shareholders down the road, but many shareholders at the time were not thinking that far ahead). The conglomerate would then add the target's earnings to its earnings, thereby increasing the conglomerate's overall earnings per share . In finance jargon,
1215-467: The end came in January 1968, when Litton shocked Wall Street by announcing a quarterly profit of only 21 cents per share, versus 63 cents for the previous year's quarter. This was "just a decline in earnings of about 19 percent", not an actual loss or a corporate scandal, and "yet the stock was crushed, plummeting from $ 90 to $ 53". It would take two more years before it was clear that the conglomerate fad
1260-771: The examples are Adamjee Group , Dawood Hercules , House of Habib , Lakson Group and Nishat Group . In the Philippines , the largest conglomerate of the country is the Ayala Corporation which focuses on malls , bank , real estate development , and telecommunications . The other big conglomerates in the Philippines included JG Summit Holdings , Lopez Holdings Corporation , ABS-CBN Corporation , GMA Network, Inc. , MediaQuest Holdings , TV5 Network, Inc. , SM Investments Corporation , Metro Pacific Investments Corporation , and San Miguel Corporation . In
1305-420: The four others arrested getting sentenced to five months in prison and a fine of 35 Rupees on each. The demonstration was a part of Anti-Hindi agitations of Tamil Nadu , which has lasting political impact on Tamil Nadu . As of 2001 India census , Kallakudi (கல்லக்குடி) had a population of 11,625. Males constitute 50% of the population and females 50%. Kallakudi has an average literacy rate of 83%, higher than
1350-719: The headquarters of corporations to mergers, in which independent ventures were reduced to subsidiaries of conglomerates based in New York or Los Angeles. Pittsburgh, for example, lost about a dozen. The terror instilled by the mere prospect of such harsh consequences for executives and their home cities meant that fending off takeovers, real or imagined, was a constant distraction for executives at all corporations seen as choice acquisition targets during this era. The chain reaction of rapid growth through acquisitions could not last forever. When interest rates rose to offset rising inflation, conglomerate profits began to fall. The beginning of
1395-503: The most powerful private economic conglomerate in 1920s Europe – Stinnes Enterprises – which embraced sectors as diverse as manufacturing, mining, shipbuilding, hotels, newspapers, and other enterprises. The best-known British conglomerate was Hanson plc . It followed a rather different timescale than the U.S. examples mentioned above, as it was founded in 1964 and ceased to be a conglomerate when it split itself into four separate listed companies between 1995 and 1997. In Hong Kong, some of
Dalmia Group - Misplaced Pages Continue
1440-546: The name Renaissance Group. In 1956, the Government of India set up a Commission of Inquiry to investigate alleged malpractices of the Dalmia-Jain Group of companies. The Commission was headed by Justice S. R. Tendolkar (and after his death, by Justice Vivian Bose). In 1962, Ramkrishna Dalmia was jailed for tax evasion, perjury and criminal misappropriation of funds. By the time he died in 1978, he had 17 children from 6 wives. These heirs fought several court cases for control of
1485-608: The name of their ancestral village in present-day Haryana . The Dalmias established a group of businesses in East India during the first half of the 20th century. These businesses included a sugar mill in Danapur and a commodity trading business in Calcutta . In 1932, Ramkrishna's daughter married Shanti Prasad Jain of the wealthy Sahu Jain family . Subsequently, Shanti Prasad and the Dalmia brothers worked together to expand
1530-652: The new businesses they had recently purchased, and by the mid-1970s most conglomerates had been reduced to shells. The conglomerate fad was subsequently replaced by newer ideas like focusing on a company's core competency and unlocking shareholder value (which often translate into spin-offs ). In other cases, conglomerates are formed for genuine interests of diversification rather than manipulation of paper return on investment. Companies with this orientation would only make acquisitions or start new branches in other sectors when they believed this would increase profitability or stability by sharing risks. Flush with cash during
1575-527: The plant started operating in 1952. On 15 January 1996, the company changed its name to OCL India to reflect its non-cement ventures, including steel and iron. After Jaidayal Dalmia's death, OCL was controlled by his sons Ajay Hari Dalmia, Mridu Hari Dalmia and Raghu Hari Dalmia; Ajay Hari separated in 1999, to start his own venture under the name Renaissance Group. OCL is now a part of the Dalmia Bharat Group. Dalmia Bros. Pvt. Ltd. originated from
1620-714: The production of electronics such as televisions. While not a keiretsu, Sony is an example of a modern Japanese conglomerate with operations in consumer electronics , video games , the music industry , television and film production and distribution , financial services , and telecommunications . In China, many of the country's conglomerates are state-owned enterprises , but there is a substantial number of private conglomerates. Notable conglomerates include BYD , CIMC , China Merchants Bank , Huawei , JXD , Meizu , Ping An Insurance , TCL , Tencent , TP-Link , ZTE , Legend Holdings , Dalian Wanda Group , China Poly Group , Beijing Enterprises , and Fosun International . Fosun
1665-406: The transaction was " accretive to earnings." The relatively lax accounting standards of the time meant that accountants were often able to get away with creative mathematics in calculating the conglomerate's post-acquisition consolidated earnings numbers. In turn, the price of the conglomerate's stock would go up, thereby re-establishing its previous price-earnings ratio, and then it could repeat
1710-495: The various businesses owned by him. In 1983, these businesses were divided among his seven sons. The Dalmia Bharat Group is engaged in cement, sugar, refractories, renewable energy and other businesses. The Group traces its origin to Dalmia Cement (Bharat) Limited, established in 1939. After the Dalmia-Jain Group's split, it was controlled by Jaidayal, and later by his sons Jai Hari Dalmia and Yadu Hari Dalmia and now by their sons Gautam Dalmia and Puneet Dalmia. The Dalmia Bharat Group
1755-425: The well-known conglomerates include Jardine Matheson (AD1824), Swire Group (AD1816), (British companies, one Scottish one English; companies that have a history of over 150 years and have business interests that span across four continents with a focus in Asia.) C K Hutchison Whampoa (now CK Hutchison Holdings ), Sino Group , (both Asian-owned companies specialize business such as real estate and hospitality with
1800-668: The whole process with a new target. In plain English, conglomerates were using rapid acquisitions to create the illusion of rapid growth. In 1968, the peak year of the conglomerate fad, U.S. corporations completed a record number of mergers: approximately 4,500. In that year, at least 26 of the country's 500 largest corporations were acquired, of which 12 had assets above $ 250 million. All this complex company reorganization had very real consequences for people who worked for companies that were either acquired by conglomerates or were seen as likely to be acquired by them. Acquisitions were
1845-839: Was established in 1971 as a manufacturing division of the Dalmia Group. Marathwada Refractories Ltd ( BSE : 502250 ) is controlled by Mridu Hari Dalmia's family. Jaidayal Dalmia's son Ajay Hari Dalmia established Renaissance Group, which holds stakes in Revathi Equipment Limited, Rajratan Global Wires Ltd., Shogun Organics Ltd., Monarch Catalyst Pvt. Ltd. and Semac Consultants Pvt. Ltd. Dalmia Continental Privated Limited (DCPL) and Sunshine Tourism were established by Vidyanidhi "VN" Dalmia, son of Ramkrishna Dalmia. Dalmia also invested in Starium Innovative Healthcare Co, The valuation of
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1890-462: Was formed in 1981 from the merger of Fletcher Holdings , Challenge Corporation, and Tasman Pulp & Paper, in an attempt to create a New Zealand-based multi-national company. At the time, the newly merged company dealt in construction, building supplies, pulp and paper mills, forestry, and oil & gas. Following a series of bungled investments, the company demerged in the early 2000s to concentrate on building and construction. In Pakistan , some of
1935-537: Was not found to be easy". After the split, Jaidayal Dalmia gained control of Dalmia Cement (Bharat) Ltd., established in 1939 and Orissa Cement Ltd., established in 1949. Later, his sons Jai Hari Dalmia and Yadu Hari Dalmia took control of Dalmia Cement. Three other sons, Ajay Hari Dalmia, Mridu Hari Dalmia and Raghu Hari Dalmia - took over the Orissa Cement business. In 1999, Ajay Hari Dalmia separated from Orissa Cement, and started his own line of businesses under
1980-471: Was officially incorporated on 10 February 2006 as Sri Kesava Mines & Minerals Limited , with its office in Dalmiapuram , Tamil Nadu . On 19 February 2010, the name was changed to DCB Renewable Energy and Industries Limited . On 25 March 2010, the name was changed; this time, to Dalmia Bharat Enterprises Limited . The present name, Dalmia Bharat Ltd was adopted in 2012. Puneet Dalmia is controlling
2025-487: Was on its way out. The stock market eventually figured out that the conglomerates' bloated and inefficient businesses were as cyclical as any others—indeed, it was that cyclical nature that had caused such businesses to be such undervalued acquisition targets in the first place —and their descent put "the lie to the claim that diversification allowed them to ride out a downturn." A major selloff of conglomerate shares ensued. To keep going, many conglomerates were forced to shed
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