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Multinationals In India & its rise - Global Trends In Business And Management

   Posted On :  06.05.2018 09:57 pm

The inflow of foreign funds through MNCs in india is showing an upward trend in recent years.

Multinationals In India



The inflow of foreign funds through MNCs in india is showing an upward trend in recent years. 1991 Onwards, the government of india has taken several steps to attract foreign investments and entry of the MNCs, such as:

  • Abolition of industrial licensing

  • Removal of restriction on investment under the mrtpMRTP act

  • Liberalization of policy and procedure for transfer of technology, import off capital goods, etc

  • Existing companies are allowed to raise foreign equity up to 51%

  • Provisions of the FERA have been relaxed. As a result, companies with more than 40% foreign equity can operate like any other indian company.

  • Foreign companies are permitted to use their trade in domestic markets.
 


During the nineties, there has been an increasing trend of foreign investmentsinindia.Thegovernmentapproved666foreigncollaborationsin 1990. This number has become more than double to 1520 by 1992. At present, the USA is the largest investor in india, followed by Switzerland, Japan and UK. Foreign investment has largely been concentrated in sector such as fuel andoilrefineries,powerchemicalsandelectricalequipmentsandelectronics.
 

The Rise Of Indian Multinationals

 
 
After liberalization of indian market in 1991 and in its due course, indian imc is flying high not only over the indian sky but globally. Though it took almost a decade when many indian forms have slowly and surly embarked on the global path and lead to the emergence of the Indian Multinational Companies. With each passing day, indian businesses are acquiring companies abroad, becoming worldwide popular suppliers and are recruiting staff across national boundaries. While an asian paints is painting the world red, tata is rolling out Indicas from Birmingham and Sundaram fasteners nails home the fat that the indian company is an entity to be reckoned with. Some facts:
 
 
  • Tata Motors sells its passenger-car indica in the UK through a marketing alliance with rover and has acquired a Daewoo Commercial vehicles unit giving it access to markets in Korea and China.
  • INFOSYS has 25,634 employees including 600 from 33 nationalities other than indian. It has 30 marketing offices across the world and 26 global software development centers in the US, Canada, Australia, the UK and Japan.

  • Ranbaxy is the ninth largest generics company in the world. An impressive
 
  • 76 % Of its revenues come from overseas.

  • Dr.Reddy’s Laboratories became the first asia pacific pharmaceutical company outside japan to list on the new york stock exchange in 2001
  • Asian paints are among the 10 largest decorative paints makers in the world and have been manufacturing facilities across 24 countries.

  • Small auto components company Bharat Forge is now the world’s second largest forging maker. It became the world’s second largest forgings manufacturer after acquiring carl dan peddinghaus, a german forgings company, last year. Its workforce includes japanese, german, american and chinese people. It has 31 customers across the world and only 31 percent of its turnover comes from india.
 
  • About 80% of revenues for Tata Consultancy Services come from outside India. It raised in Asia’s second – biggest tech IPO this year and India’s largest IPO ever.
 
  • Sundaram Fasteners is not merely a nuts and bolts company. It believes in thinking out of the box. Probably that is why it decided to acquire a plant in China. The plant in Jiaxin city in the Haiyan economic zone has ensures one fact; that its customers who were earlier buying Sundaram products in Europe and the US, did not have to go far from home to access the product.
 

 

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