Author: Atish V. Meghe

ABSTRACT

This paper evaluates how large mergers and acquisitions affect the performance of corporations within India’s fast‑moving consumer goods (FMCG) and adjacent consumer‑tech ecosystem. The study focuses on two recent, high‑profile case studies: Zomato’s all‑stock acquisition of quick‑commerce player Blinkit (formerly Grofers) in 2022, and Dabur India Ltd’s acquisition of a 51 percent stake in spice manufacturer Badshah Masala at the end of 2022 (effective January 2023). The analysis compares pre‑ and post‑merger financial performance over a multi‑year horizon, typically three years on either side of the transaction.

The deals are evaluated using financial parameters such as revenue, revenue growth, gross margin, EBITDA margin, net profit margin, operating expense ratio, and cost–revenue ratio. These indicators are used to assess whether the acquisitions contributed to scale, profitability, and cost efficiency. Descriptive statistics are complemented with two‑sample t‑tests to examine whether changes in mean values between the pre‑ and post‑merger periods are statistically significant. While the short time window and reliance on firm‑reported data limit strong causal inference, the findings provide case‑based evidence on how M&A activity in India’s FMCG landscape is associated with shifts in financial performance, shareholder value, and strategic positioning.