Indian Multinational Companies

Amity Business School

By Shishir Jain MBA – M&S C - 34

Contents
• • • • • • • Globalization What is MNC Feaures of MNC Indian MNC Reality Facts Growth of Indian MNC’s Merits and demerits of MNC’s

Amity Business School

Globalization

Amity Business School

Globalization

Amity Business School

“It has been said that arguing against globalization is like arguing against the laws of gravity.”- Kofi Annan (Ghanaian diplomat, seventh secretarygeneral of the United Nations, 2001 Nobel Peace Prize.)

Multinational Company

Amity Business School

Definition of MNC

Amity Business School

• A multinational corporation (MNC) is a corporation or enterprise that manages production or delivers services in more than one country. • ILO defined MNC as a corporation which has its managerial head quarters in one country known as the home country and operate on several other countries known as the host country. (Source : Wikipedia)

Indian MNC

Amity Business School

• If an Indian Company operating within the country establishes its subsidiaries in foreign soil, then it becomes an Indian MNC. • Organic Expansions, Green Field Investments, Takeovers and Joint Ventures. • The scale and the business share may not be significant today, but Indian businesses are slowly but surely establishing themselves abroad.

Facts

Amity Business School

• According to the latest World Investment Report 2007 (WIR ’07), India’s outward FDI was the second highest at US $ 20.4 billion after Brazil at US $ 28 billion. • In 2007, India Inc spent US $ 33 billion on overseas mergers and acquisitions (M&As), compared to the US $ 15 billion spent by foreign firms for acquisitions in India.

Top Indian MNC’s

Amity Business School

Indian MNC’s

Amity Business School

INDIAN FIRMS LISTED ON THE NASDAQ
Sl. No. COMPANY SECTOR

1 2 3 4

INFOSYS TECHNOLOGIES LTD REDIFF.COM INDIA LTD SIFY LTD EXL

IT SERVICES NTERNET PORTAL

I

IT SERVICES BPO

Indian MNC’s
Sl. No. COMPANY
1 2 3 4 5 6 7 8 9 10 DR REDDY’S LABS LTD HDFC BANK LTD ICICI BANK LTD MAHANAGAR TELEPHONE NIGAM LTD PATNI COMPUTER SYSTEMS LTD SATYAM COMPUTER SERVICES LTD TATA MOTORS LTD VIDESH SANCHAR NIGAM LTD WIPRO LTD WNS

Amity Business School

ON THE NEW YORK STOCK EXCHANGE
SECTOR
PHARMACEUTICALS BANKING BANKING TELECOMMUNICATIONS IT SERVICES IT SERVICES AUTOMOBILES TELECOMMUNICATIONS IT SERVICES BPO

Merits of MNC
• • • • •

Amity Business School

Employment Removal of monopoly Competition Promotes exports and reduce imports Cheaper price of goods due to economies of scale. • Encourages world unity and Peace.

Demerits
• • • • • • Shift to outsourcing Poorer countries suffer Cultural challenges Terrorism Loss of economic sovereignity Problem of dumping

Amity Business School

THANKS

Amity Business School

Questions ??

Sign up to vote on this title
UsefulNot useful