At the beginning of the century, Tata Chemicals Ltd. (TCL), felt a need for international acquisitions, as the earlier acquisitions had helped the company to achieve the prominent position in soda ash production.
TCL decides to acquire a North American potash development company which has recently been found. TCL could have its own fertilizer plant, after this acquisition, which can bring the company to a streamline.
However, this initiative requires a great deal of attention from the executives to determine the most appropriate time for this backward integration to mitigate the risk of this strategy. They also have to determine that when to rely on contractual arrangements that are mainly driven by the market. The author, Vasant Sivaraman, has the affiliation with S.P. Jain Institute of Management and Research.
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