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Diversifications in India - Diversification Strategies

   Posted On :  26.06.2018 06:10 am

A public sector giant, Oil India Ltd. (OIL), which had been operating in oil exploration and production, diversified into related areas, such as, gas cracking.

Diversifications in India

Diversification strategy is widely adopted in India. Some examples are given here.

1. A public sector giant, Oil India Ltd. (OIL), which had been operating in oil exploration and production, diversified into related areas, such as, gas cracking.

2. The reputed multinational affiliate, ITC Ltd. has diversified into hotels, papers, agri-business packaging, and priming from its original cigarette business in response to national objectives and priorities.
3. Smaller companies, like, Blowplast in the moulded luggage industry is in plastic seating systems, and marketing of branded toys.
4. Unitech in civil engineering is into steel-making, exports, consumer electronics, power transmission, and real estate.
5. The service sector has not been left untouched by the motivation to diversify.
6. LIC in the insurance business is also in a related area of mutual funds.
7. Banks, like SBI and Canara Bank too have moved from traditional banking to merchant banking and mutual funds.
8. Peerless General Finance & Investment Co, one of the country’s larger non-banking investment companies, has moved into related areas of finance, adopting a defensive diversification strategy to generate more resources to contain rising establishment costs.
Tags : Strategic Management - Strategy Formulation
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