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Contents
1. What is MNC
2. Features of MNC
3. Indian MNC
4. Reality facts
5. Growth of Indian MNC
6. Merits of MNC
7. Demerits of MNC
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WHAT IS MNC ???

 When a company operating in a


home nation establishes its
subsidiary in other nations
(host nations), it becomes an
MNC and there starts the
process of globalization
wherein a local company serves
the entire world with its
products and services. The
advent of Internet and the
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ensuing "new economy" has
Features of MNC
1.Big size
2.Huge intellectual capital
3.Operates in many countries
4.Large number of customer
5.Large number of competitors
6.Structured way of decision
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WHAT IS INDIAN MNC
?
• Thus if an Indian Company operating within the
country establishes its subsidiaries in foreign soil,
then it becomes an Indian MNC.

• The age of Indian MNC has finally dawned. Mr.


Aditya Birla of Aditya Birla group first looked
beyond India 30 years ago. Indian companies are
using all the tricks of the trade to go global:
Mergers & Acquisitions, Organic expansions,
Green field investments, and Joint Ventures. The
scale and the business share may not be
significant today, but Indian businesses are slowly
but surely establishing themselves abroad.
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REALITY FACTS:
•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.

•Tata Motors’ takeover of Jaguar and Land Rover


(JLR) for US$ 2-2.5 billion is an excellent example
set by an INDIAN MNC towards this glory.

•Consequent to this surging FDI outflows, there


has been an increase in the overseas earnings (in
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In fact, 2006 will be remembered in
India’s corporate history as a year
when Indian companies covered a lot
of new ground. They went shopping
across the globe and acquired a
number of strategically significant
companies. This comprised 60 per cent
of the total mergers and acquisitions
(M&A) activity in India in 2006. And
almost 99 per cent of acquisitions were
made with cash payments.
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Indian MNC on the global platform

INDIAN FIRMS LISTED ON THE


NASDAQ
COMPANY SECTOR
Sl. No.

1 INFOSYS TECHNOLOGIES LTD IT SERVICES

2 REDIFF.COM INDIA LTD INTERNET PORTAL

3 SIFY LTD IT SERVICES

4 EXL BPO

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Indian MNC on the global platform

ON THE NEW YORK STOCK EXCHANGE


Sl. No. COMPANY SECTOR

1 DR REDDY’S LABS LTD PHARMACEUTICALS


2 HDFC BANK LTD BANKING
3 ICICI BANK LTD BANKING
TELECOMMUNICATION
4 MAHANAGAR TELEPHONE NIGAM LTD
S
5 PATNI COMPUTER SYSTEMS LTD IT SERVICES
6 SATYAM COMPUTER SERVICES LTD IT SERVICES
7 TATA MOTORS LTD AUTOMOBILES
TELECOMMUNICATION
8 VIDESH SANCHAR NIGAM LTD
S
9 WIPRO LTD IT SERVICES
10 WNS BPO
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India Inc. are flying high.…
and not only over the Indian
sky……..

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Initiator
TATA GROUP

The Group is one of India's


largest and most respected
business conglomerates, with
revenues in 2006-07 of $28.9
billion. The current chairman
of the Tata group is Ratan
Tata, who took over from J. R.
D. Tata in 1991.
It has interests in steel,
automobiles, information
technology, communication,
power, tea and hotels. 12
Acquisition Machine

WIPRO

India’s third-biggest software


company and IT consulting firm
is on an earnings tear, with
fourth-quarter profits up 40%
to $169 million. Last year,
Wipro spent more than $250
million on acquisitions at home
and in foreign markets such as
Sweden and Finland, and the
company’s billionaire chairman,
Azim Premji, says he wants to do
bigger deals in the years ahead
to boost economies of scale and
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to lower costs.
Wireless Wonder
Bharti

It is good to be India’s biggest


wireless operator—doing
business in the world’s fastest-
growing market for mobile
phones. Now, Bharti is looking
to expand in other fast-growing
emerging markets such as
Africa. Britain’s Vodafone owns
a 10% stake in Bharti, which
also provides outsourcing
services to IBM.
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The Tata Nano,
the world’s
cheapest
production car.

The HCL laptop,


Kingfisher Airways, the cheapest
voted the best production laptop.
airline of south-east
Asia.
The
Infosys IT
training
campus –
the
largest in
the world

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MERITS OF MNC
1. MNCs create employment opportunities in
the host countries. It helps to create a pool
of managerial talent in the host country.
2. Helps removal of monopoly and improve
the quality of domestic made products.
3. Promotes exports and reduce imports by
raising domestic productions.
4. Goods are made available at cheaper price
due to economies of scale.
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MERITS OF MNC
5. Job and career opportunities at home and
abroad in connection with overseas
operations.
6. Encourages the world unity and all
resulting in world harmony

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DEMERITS OF MNC
1. The host county is likely to lose its
economic sovereignty
2. The host nation may also experience some
loss of control over its own economy
3. Feeling that labour is being exploited by the
MNC/ Outsourcing
4. Lost of cultural moorings
5. The problem of Dumping
Example – Chinese products are priced low in indian
market.
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CONCLUSION

Due to these MNC’s,


competition increase and
more employment
opportunities are available
& there will be reduction in
inequalities…
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Thank you…
Sunil, RNSIT Bangalore

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