Indian entrepreneur seems to have lost it bargaining power and well known Indian brands have been taken over by TNCs.
Takeovers
And Implementation Of Foreign Collaborations
Indian entrepreneur seems to have
lost it bargaining power and well known Indian brands have been taken over by
TNCs. It needs to be emphasized that takeovers do not add to new production
capacities. On the contrary, there are likely to add to higher outflow of
foreign exchange. In foreign collaborations, transfer of superior technology
has not been the main consideration.
Some Recent Takeovers
ICI (UK) attempted to take over Asian paints.
Hindustan lever took over Tomco.
Premier automobiles transferred two of its plants
to Peugeot.
Transfer of Lakme’s brand to a 50:50 joint venture
with the Levers.
TVS Suzuki takes up Hero Honda.
Whirlpool took over TVS Whirlpool.
Suzuki’s attempt to gain majority control in Maruti
Udyog.
Bridgestone increasing its stake
from 51% to 74 % in joint venture with ACC.
Bausch & Lomb increasing its share in Indian
venture to 69%.
Henkel increasing its share to 70%.
Blue star edged out of Motorola Blue Star and
Hewlett Packard India.
Shriram’s share got reduced in Shriram Honda Power.
Once the Indian partners
transferred the units, they neither had the money nor the marketing network
with them.
Tags : Business Environment and Law-Foreign Capital And Collaboration
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