PowerPoint Presentation

MAJOR GLOBALIZATION INITIATIVES FROM INDIAN COMPANIES By, RAMKUMAR.K

GLOBALIZATIONGlobalization is the process which enables the geographical, social, cultural, political and economic movement internationally more easily.Globalization refers to growing economic interdependence among countries as reflected in increasing cross-border flows of three types of commodities: goods and services, capital, and know how

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ENTRY STRATEGY FOR GLOBALIZATION OF COMPANIESExporting ( Direct or Indirect)LicensingFranchisingContract manufacturing/ International subcontractingStrategic AllianceJoint venturesWholly owned subsidiaryMergers & Acquisition

The Elements of Globalization :Globalization of Markets:It refers to the merging of national markets into one huge global marketplace.

Globalization of Production:It refers to the sourcing of goods and services from locations around the world to take advantage of national differences in the cost and quality of factors of production.

Falling Barriers to Trade and Investment:The falling of barriers to international trade enables firms to view the world as their market.

Technological Innovation:Technological changes have achieved advances in communication, information processing, and transportation technology, including the Internet and the World Wide Web.

INDIAs GDP GROWTH RATE

FACTORS DETERMINING IN BUILDING GLOBAL COMPANIESPOLITICAL FACTORSStability of the governmentType of government - Democratic - Theocracy (religious) - monarchy ( kingdom)Control structure Canada, USA ( decentralized province) Japan, France( centralized)

POLITICAL FACTORSGovernment take over of asset(with or without permission)Operational restrictionRemittance/ Repatriation restrictionsGovernment policies Opposition parties, pressure groups, external linkages

Economic factorsEconomic system ( open / mixed)Economic developmentStandard of living( per capita income)Sectorial share in GDPForeign Exchange reservesEconomic indicators( inflation rate, BOP)

Technological factorsDifferentiation strategyCompetitive advantage

Legal factorsHome country lawsHost country lawsInternational lawsUN resolutions, Patents & Trademark protection & piracy laws, GATT, codes of conduct

ITCSUBSIDIARIESITC InfotechSurya Nepal Private LimitedLandbaseKing Maker Marketing Inc., USATechnico Pty Limited. AustraliaRussell Credit LimitedWimco LimitedSrinivasa Resorts LimitedFortune Park Hotels LimitedBay Islands Hotels LimitedGold Flake Corporation LimitedJOINT VENTURESMaharaja Heritage Resorts Ltd.ITC Filtrona

ASSOCIATE COMPANIESGujarat Hotels LimitedInternational Travel House

ITC INFOTECH The company services industries including, Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sciences and Transportation & Logistics.Ranked amongst Top 10 Specialty Application Development Providers - Global Services, CMP Media

ITC CIGARETTESMarket ValueThe Indian tobacco market grew by 8.9% in 2012 to reach a value of $11.6 billion.Market Value ForecastIn 2013, the Indian tobacco market is forecast to have a value of $14.9 billion, an increase of 29.4% since 2008.

MAHINDRAMAHINDRA AND MAHINDRATheir global presence means that you can find Mahindra vehicles on the roadsboth paved and unpavedof Australia, Europe, Latin America, Malaysia, and South Africa. And they are seeking out new terrain every dayMAHINDRA FORGINGSTheyare one of the largestand most technologically advanced manufacturers of forged and machined components in the world. They create parts like links, knuckles, spindles, shafts, crankshafts, camshafts, pistons, ball joints, and stub axles that are used in automotive, agriculture, railway, mining, construction and other industries throughout the world.

MAHINDRAMAHINDRA SATYAMSathyam is a global playerin the global Information, Communication, and Technology (ICT) space.They provide enterprise business solutions, infrastructure services, industry native solutions, integrated engineering solutions, consulting services, application development and management services, and business process outsourcing to more than 350 clients in 35 countries.TECH MAHINDRASince commencing operations in 1986 as a joint venturebetweenMahindra and British Telecom (BT), they have become one of Indias largest software exporters and ranked No.1 in the Telecom Software Category (Voice & Data 2010-11). For over two decades, they have been the chosen transformation partner for wireline, wireless and broadband operators in Europe, Asia-Pacific and North America. We operate in more than 30 countries through 17 sales offices and 13 delivery centers, working with major players like British Telecom, Vodafone, among others

INFOSYSInfosys is a global leader in consulting, technology and outsourcing with revenues of US$ 7.231 billionInfosys provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries build tomorrows enterprise.Infosys and its subsidiaries have 155,629 employees as on Dec 31, 2012.

INFOSYSInfosys takes pride in building strategic long-term client relationships. 97.5% of our revenues come from existing customersInfosys has aglobal footprintwith 67 offices and 69 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries.

DABURDabur has a special herbal health care and personal care range successfully selling in markets ranging from the Middle East, Far East, North Africa and EuropeInroads into several European and American markets that have good potential due to resurgence of the back-to-nature movementExport of Active Pharmaceutical Ingredients (APIs), manufactured under strict international quality benchmarks, to Europe, Latin America, Africa, and other Asian countriesExport of food and textile grade natural gums, extracted from traditional plant sourcesSix modern manufacturing facilitiesspread acrossSouth Asia, Middle East and Africato optimize production by utilizing local resources and the most modern technology available

Acquisition

TATACorus Group (U.K.)Tata Steel, one of the leading steel producers in India, acquired Corus Group for U.S. $12.11 billion ( 8.5 billion) on January 31, 2007This acquisition is considered to be one of the biggest foreign acquisitions by an Indian company, and after this only TATA Steel came out to be the fifth largest steel producer in the whole world.

TATAJaguar Cars and Land Rover (U.K.)Tata Motors has acquired bothJaguar and Land Rover, which are two iconic British brands with worldwide growth prospectsThis deal was for a whooping U.S. $ 2.3 billion with Ford, the previous American owners.The deal was effective from May 2008. The deal is seen as yet another endeavor of the fast growing Indian industries, also the latest in a string of foreign acquisitions by Tata.

Bharti AirtelZain AfricaBharti Airtel had acquired Zain Africa for a value of U.S. $10.7 billion. The acquisition gives Bharti Airtel a total customer base of 180 million, including 131 million subscribers it had in India at the end of AprilBy expanding its business outside the country, Bharti Airtel can in the long term benefit from economies of scale, including getting better deals from suppliers

Aditya BirlaNovelis (U.S.)Has acquired the entire stake in the Atlanta based aluminium company Novelis for U.S. $6 billionThis company had separated from Alcan, a global aluminium company

ONGCImperial Energy (U.K.)Oil and Natural Gas Corp (ONGC) has acquired Imperial Energy. This deal was for 1.3 billion pounds (U.S. $1.9 billion). The company owed the acquisition to government support, which in the past seven years increase its number of projects to 39 in 17 countries, from just a single project in Vietnam

Essar Steel GlobalAlgoma Steel (Canada)Ruias owned Essar Steel Global acquires the Canadiansteelcompany Algoma Steel at a valuation of Canadian $1.85 billion. Essar Steel Holding, Essar Group's overseas investment arm made the investment possible and easy. Algoma would definitely provide Essar an excellent platform for the Canadian and North American market

RelianceMarcellus Shale Reliance, led by Indian billionaire Mukesh Ambani, got the right to buy 40 percent of all new Marcellus Shale leases that Atlas acquires, after this purchase acquisition and agreement was completed.

Acquisition summaryCompanyAcquisitionPrice ($m)Reliance IndustriesFlag Telecom, BermudaTrevira, Germany21295Tata MotorsDaewoo, Korea118Infosys TechnologiesExpert Information Services, Australia3.1WockhardtCP Pharmaceuticals, UK18Cadila HealthAlpharma SAS, France5.7HindalcoStraits Ply, Australia56.4WiproNerveWire Inc, US18.5Aditya BirlaDashiqiao Chem, China8.5United PhosphorusOryzalin Herbicide, US21.3Bharat ForgeCarl Dan Peddinghaus Gmbh, Germany28RanbaxyRPG Aventis, France80

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