Diversification is emerging as an important strategic factor for growth in post-liberalization period. This paper aims to analyze impact of industry on nature and pattern of diversification in 252 private enterprises for a 10 year period (1995–2004). The results show that majority of the industries in India follow ‘single business’ as the most popular strategy. A detailed analysis shows that some industries, such as, drugs and pharmaceuticals, automobiles, cement, electrical, electronics, and clocks and watches produce diverse range of products. Traditionally, companies in India have been following ‘single business’, ‘diversified business’ and ‘related business’ norm for diversification though in some industries, such as drugs and pharmaceuticals, non-ferrous metals, etc. follow more aggressive diversification strategies while some industries like textiles, electrical and electronic industries, etc. are relatively more stable.
Single business, diversified business, related business
