BUSINESS IN THE NEHRU ERA

IntroductionNehru Govt. introduces new strategy and formed a model for development and expansion of Industry.

After death of Nehru the depiction started to crawl in the economy.

After Nehru, Lal Bhadur Sastri, But he didn’t do much to grapple with the crisis as his tenure last only for 20 months.

After Lal Bhadur Sastri, Nehru’s daughter Indira Gandhi took place and start working to improve the economy of India. She decided to bring all the major Indian commercial Bank under State Control.

Under Nehru era Pvt. Enterprise system didn’t suffered much and registered good progress, even all the old establishment registered impressive gain and many new Groups emerged during that time.

PROGRESS OF THE OLD HOUSES

MAIN PLAYER TATA

TCS

TISCO

TELCO

TATAFINLAY

NEW INDIAASSURANC

E COMPANY

TATA AIRLINES

TATA

TISCO (Tata Iron and Steel company) Largest company in the country on the eve of

independence.TELCO (Tata Engineering and Locomotive Company) The manufacturer of locomotive for Indian

Railways

Tata Airlines Was born as Air India international in 1948

in which government had 49 per cent, Tata's with 20 percent stake and remaining 31 per cent were left for public participation.

New India Assurance Company It handles general insurance, Which would

not be nationalized until much later

Tata Finlay It was launched in 1963 in partnership with

James Finlay as a sterling firm to produce tea.TCS (Tata Consultancy Services) It was established in 1968.

OTHER PLAYERSBirlaHindalcoTEXMACO Hindustan motors

SMALL PLAYERS Thapars Kirloskars Mfatlals Lalbhais Walchands Shri Rams

The New Entrants

1. In Post-Independent multiple number of new companies came into existence in

India.

2. The Old companies before independence have gained success and achieve growth.

3. In Nehru era most of his policy was Criticized because He was not Interested in privet sector.

4. The major industries that dominate Indian Business before and after Independence under went substantial expansion and consolidation.

5. The Companies that had emerged are BAJAJ, MAHINDRA etc.

The Public Sector

Jawahar Lal Nehru was criticized for giving undue importance to public sector at the cost of the privet section.

67 Public sector undertaking setup was done during his lifetime. Only 50 were engaged in real sense.

15 out of these 50 companies were large enough like Bharat Heavy Electrical Ltd. Oil And Natural Gas Corporation. Indian Oil, Air India.etc.

In the Nehru Era The Govt. decided to developed a Special Managerial Cadre For Public Sector.

Expatriates And Multinationals

In Nehru Era The Expatriates faced a major set lack.

EAST INDIA Downfall of groups like Andrew & Bild due to labor problem in west Bengal.

Andrew sold companies to ***But taken over by government.End of largest & oldest European group.

Blind group.Difficult to manage.Unique method by disinvestment.Gave stocks to employees and executive instead of corporate. Later taken over by Govt.

Expatriates And Multinationals

SOUTH INDIAPary and Binny Expatriate Groups.Went through expansion and re organization.Converted to joint stock company.Opportunities for Indian

After Independence Subsidiaries Of Expatriates controlled by the foreign multi nationals Continued to expand.

Six new undertaking were established.Indianized their management.Unilever changed to Hindustan lever lmtd. In 1965Entered New fields like Soap And Detergent.Imperial Tobacco Changed To Indian Tobacco Company And remained Cigarette Manufacturing concern till 1960.No other company had any complaints except the expatriates at the end of Nehru era.

Campus Overview

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Ahmedabad

Kolkata

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Mumbai

Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai – 400 064.

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