After liberalization and relaxation in foreign direct investment.
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EXECUTIVE SUMMARY After liberalization and relaxation in foreign direct investment India witnessed a series of mergers and acquisitions with multinational companies acquiring local brands to penetrate into Indian market. Some of the examples worth noting are, HLL acquiring TOMCO and Lakme (to strengthen its presence in the edible oil, soaps and personal care products), Dollops , Kwality, Milkfood to get into Ice Cream market; Coca-Cola acquiring Parle Soft drink to get access to its well established brand and nationwide bottling and marketing network; Pepsi-Cola acquiring Duke; Satyam acquiring Indiaworld. Many companies have tried to acquire brands at a premium over their historical cost. HLL is a prime example as its product portfolio has been built over the time using this strategy. The valuation that acquired-brand use to get does not justify their earning capacity. Hence this necessitates a formalized methodology to value brands. The intention of this paper is to...


