Patterns of diversification in larger Indian enterprises

Based on a sample of 72 large public and private sector companies, this paper highlights patterns of diversification in Indian industry during 1960-75. These two groups were divided into sub-categories and diversification patterns were analysed for each sub-category. The sample as a whole showed a fairly rapid rate of diversification. While the private sector firms showed a pronounced tendency towards unrelated diversification, the public sector units tended to diversify primarily into related businesses. In India, patterns of diversification seems to be influenced strongly by governmental regulations and public policy.