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    MNC PPT On 2-3-09

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    suni19jolly
    This document discusses multinational corporations (MNCs) and the rise of Indian MNCs. It defines an MNC as a company that establishes subsidiaries in other countries. Some key Indian MNCs are mentioned like Tata, which acquired Jaguar, and Wipro, pursuing numerous acquisitions. The document outlines merits of MNCs like job creation and improving quality but also demerits like loss of economic sovereignty. It celebrates the global success of Indian companies and products while acknowledging ongoing challenges of competition and cultural impacts.

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    MNC PPT On 2-3-09

    Uploaded by

    suni19jolly
    13K views20 pages
    This document discusses multinational corporations (MNCs) and the rise of Indian MNCs. It defines an MNC as a company that establishes subsidiaries in other countries. Some key Indian MNCs are mentioned like Tata, which acquired Jaguar, and Wipro, pursuing numerous acquisitions. The document outlines merits of MNCs like job creation and improving quality but also demerits like loss of economic sovereignty. It celebrates the global success of Indian companies and products while acknowledging ongoing challenges of competition and cultural impacts.

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    MNC PPT on 2-3-09

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    This document discusses multinational corporations (MNCs) and the rise of Indian MNCs. It defines an MNC as a company that establishes subsidiaries in other countries. Some key Indian MNCs are mentioned like Tata, which acquired Jaguar, and Wipro, pursuing numerous acquisitions. The document outlines merits of MNCs like job creation and improving quality but also demerits like loss of economic sovereignty. It celebrates the global success of Indian companies and products while acknowledging ongoing challenges of competition and cultural impacts.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    13K views20 pages

    MNC PPT On 2-3-09

    Uploaded by

    suni19jolly
    This document discusses multinational corporations (MNCs) and the rise of Indian MNCs. It defines an MNC as a company that establishes subsidiaries in other countries. Some key Indian MNCs are mentioned like Tata, which acquired Jaguar, and Wipro, pursuing numerous acquisitions. The document outlines merits of MNCs like job creation and improving quality but also demerits like loss of economic sovereignty. It celebrates the global success of Indian companies and products while acknowledging ongoing challenges of competition and cultural impacts.

    Copyright:

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    Download as PPT, PDF, TXT or read online from Scribd
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    1

    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
    2
    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
    3
    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
    making 4
    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.
    5
    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
    6
    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.
    7
    8
    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

    9
    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
    10
    India Inc. are flying high.…
    and not only over the Indian
    sky……..

    11
    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
    13
    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.
    14
    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

    15
    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.
    16
    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

    17
    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.
    18
    CONCLUSION

    Due to these MNC’s,


    competition increase and
    more employment
    opportunities are available
    & there will be reduction in
    inequalities…
    19
    Thank you…
    Sunil, RNSIT Bangalore

    20

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