1.

2. 3. 4. 5. 6.

What is MNC Features of MNC Indian MNC Growth of Indian MNC Merits of MNC Demerits of MNC

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 ensuing "new economy" has opened up a plethora of new business opportunities - and an "inevitable" number of business casualties. 3

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 branches 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.From that time 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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MILE STONE
2006 will be remembered in Indias 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 transatations were made with cash payments.

Indian MNC on the global platform

LISTED INDIAN FIRMS
COMPANY Sl. No. SECTOR

1 2 3

INFOSYS TECHNOLOGIES LTD IT SERVICES REDIFF.COM INDIA LTD SIFY LTD NTERNET PORTAL

IT SERVICES

EXL

BPO

Indian MNC on the global platform

ON THE NEW YORK STOCK EXCHANGE
Sl. No.
1 2 3 4 5 6 7 8

COMPANY
DR REDDYS LABS LTD HDFC BANK LTD ICICI BANK LTD MAHANAGAR TELEPHONE NIGAM LTD PATNI COMPUTER SYSTEMS LTD SATYAM COMPUTER SERVICES LTD TATA MOTORS LTD VIDESH SANCHAR NIGAM LTD

SECTOR
PHARMACEUTICALS BANKING BANKING TELECOMMUNICATION S IT SERVICES IT SERVICES AUTOMOBILES TELECOMMUNICATION S

9
10

WIPRO LTD
WNS

IT SERVICES
BPO
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TOP INDIAN MNCS

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

Initiator TATA GROUP

The Group is one of India's largest and most respected business conglomerates, with revenues in 200607 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.
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Acquisition Machine

WIPRO
Indias 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 companys billionaire chairman, Azim Premji, says he wants to do bigger deals in the years ahead to boost economies of scale and to lower costs. One-Year Total Return: 26.26%
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Wireless Wonder

Bharti

It is good to be Indias biggest wireless operatordoing business in the worlds fastest-growing market for mobile phones. Now, Bharti is looking to expand in other fast-growing emerging markets such as Africa. Britains Vodafone owns a 10% stake in Bharti, which also provides outsourcing services to IBM.

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The Tata Nano, the worlds cheapest production car.

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

The HCL laptop, the cheapest production laptop.

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Trends Of MNCs In INDIA.

First MNC in INDIA is EAST INDIA Co. in 1600.
American companies accounts for around 37% of the

turnover of the top 20 firms operating in India.

The scenario for 'MNC in India' has changed a lot in recent

years, since more and more firms from European Union like Britain, Italy, France, Germany, Netherlands, Finland, Belgium etc have outsourced their work to India.
Finnish mobile handset manufacturing giant Nokia is the

largest Multinational Corporation In India.

Trends Of MNCs In INDIA(Contd..)

Companies like SingTel of Singapore and Malaysian giant

Salem Group are showing huge interest for investment.

Also insurance companies like AIG and Max New York Life

Insurance doing business in India.

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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DEMERITS OF MNC
1. The host county is likely to lose its economic
2.

3.

4. 5. Example Chinese products are priced low in indian market.

sovereignty The host nation may also experience some loss of control over its own economy Feeling that labour is being exploited by the MNC/ Outsourcing Lost of cultural moorings The problem of Dumping

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Due to these MNCs, competition increase and more employment opportunities are available & there will be reduction in inequalities

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By- Lalit kumar srms cet bareilly