Circular Combination:
When firms engaged in the manufacturing of different products integrate or combine under a central agency circular or mixed combination takes place.
For example: if a cement factory, a steel mill and a sugar mill combine we will have a case of circular or mixed combinations.
When there is integration of business units which remotely connoted with one another in their production and sales, circular integration is achieved.
The remote connection may be found between products requiring similar manufacturing
processes or using the same marketing or trade channels. Circular combination or created to build up big industrial empires. Business house of Tata’s, Birla’s and D.C.M. are the
illustrations in this regard. For instance, the D.C.M. group controls the units engaged in
textiles, chemicals, fertilizers, sugar, electronic goods, business machines, etc.
