INDIA

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MULTIN

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CONTENTS

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

GLOBALISATION

GLOBALIZATION

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

MULTINATIONALCOMPANY

DEFINITION OF MNC•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

INDIAN MNC• 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

• 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

• Tata Steel(2)• Tata Global Beverages(3)• Tata Communications(6)• Tata Consultancy Services(12)• Tata Chemicals(15)• Tata motors(9)

TATA -JAGUAR -LAND ROVER

Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley, Coventry, United Kingdom and has been a wholly owned subsidiary of Tata Motors since June 2008, when it was acquired from Ford Motor Company. Its principal activity is the development, manufacture and sale of Jaguar luxury and sports cars and Land Rover premium four wheel drive vehicles. It also owns the currently dormant Daimler, Lanchester and Rover brands.

YES’SWE ARE THE TATA’S

ONGC VIDESH• The wholly owned subsidiary of

Oil and Natural Gas Corporation, 1989

• Rank: 1• Transnationality Index: 77 per

cent• Total revenues: Rs 22,700 crore

(Rs 227 billion)• Revenues from foreign

operations: Rs 22,100 crore (Rs 221 billion)

• Total assets: Rs 25,500 crore (Rs 255 billion)

• Assets abroad: Rs 25,200 crore (Rs 252 billion)

• Total employees: 246• Employees abroad: 83

MOTHERSON SUMI SYSTEMS

The company came into existence as a joint venture between India’s Samvardhana Motherson Group and Japan's Sumitomo Wiring Systems.

Rank: 4

Transnationality Index: 60 per cent

Total revenues: Rs 14,900 crore (Rs 149 billion)

Revenues from foreign operations: Rs 10,500 crore (Rs 105 billion)

Total assets: Rs 12,000 crore (Rs 120 bn)

Assets abroad: Rs 8,900 crore (Rs 89 bn)

Total employees: 44,208

Employees abroad: 15,359

HCL TECHNOLOGIES

A $4.5 billion global technology company, HCL Technologies has offices in 31 countries. It is also the fifth largest IT company in India.

Rank: 5

Transnationality Index: 57 per cent

Total revenues: Rs 20,800 crore (Rs 208 billion)

Revenues from foreign operations: Rs 19,900 crore (Rs 199 billion)

Total assets: Rs 18,300 crore (Rs 183 billion)

Assets abroad: Rs 10,800 crore (Rs 108 billion)

Total employees: 84,319

Employees abroad: 15,201

TOP INDIAN MNC’S(RANKING)

1. Hindalco Industries

2. Suzlon Energy

3. Dr Reddy's Laboratories

4. Jubilant Life Sciences

5. Infosys

6. Punj Lloyd

INDIAN MNC’S

SR.NO

COMPANY SECTOR

1. INFOSYS TECHNOLOGIES LTD IT SERVICES

2. REDIFF.COM INDIA LTD INTERNET PORTAL

3. SIFY .LTD IT SERVICES

4. EXL BPO

INDIAN MNC’S ON THE NEW YORK STOCK EXCHANGE

SR.NO COMPANY SECTOR

1 Dr.Reddy's Laboratories Ltd. Pharmaceuticals

2 HDFC BANKING

3 ICICI BANKING

4 Mahanagar Telephone Nigam Limited

Telecommunications

5 PATNI COMPUTERS SYSTEM LTD

6 TATA MOTORS LTD AUTOMOBILES

7 WIPRO LTD IT SERVICES

8 WNS BPO

9 TATA COMMUNICATION Telecommunications

MERITS OF MNC• 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 sovereignty• Problem of dumping

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