Presented by:- Group 8 Alok Somani Ruchi Agrawal Madhuri Kabade Kamini Varma Vidit Gupta

Introduction to MNCs
India Inc. is flying high. Not only over the Indian sky. Many

Indian firms have slowly and surely 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 world-popular suppliers and are recruiting staff cutting across nationalities. Various MNCs contribution to Indias industrial development has been a very mixed blessing MNCs are affecting on following Indian Industrial Sectors 1. Automobiles 2. Aviation 3. Insurance 4. Food and Beverages Industry 5. Telecommunications

HA HA HA HA

Factors for Success of MNCs

Advantages of the growing MNCs to India

Initiating a higher level of investment. Reducing the technological gap

The natural resources are utilized in true sense.

The foreign exchange gap is reduced Boosts up the basic economic structure.

TATA Motors
Tata Motors Limited is India's largest automobile

company, with consolidated revenues of INR 1,23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's third largest bus manufacturer.

Turnover & PBT during the evaluation Period

Net Sales
140,000.00 120,000.00 100,000.00 80,000.00 60,000.00 40,000.00 20,000.00 0.00
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 Mar '10 Mar '11 12,000.00 10,000.00

Profit Before Tax

8,000.00

6,000.00

4,000.00

2,000.00

0.00
Mar Mar '05 Mar Mar '07 Mar '04 '06 '08 -2,000.00 Mar Mar '10 Mar '11 '09

-4,000.00

Market Share during Evaluation Period

Ranbaxy Laboratories
Ranbaxy Laboratories Limited, one of the biggest

pharmaceutical companies in India, started their business in the country from the year 1961. The company made its public appearance in 1973 though. Headquartered in this nation, this international, research based, integrated pharmaceutical company is the producer of a huge range of affordable cum quality medicines that are trusted by both patients and healthcare professionals all over the world. In the business year 2010, the registered global sales of the company was US $ 1, 868 Mn. Successful development of business forms the key component of their trading strategy. Apart from overseas acquisitions, this company is making a continuous endeavor to enter the new global markets, which have got high potential. For this, they are offering value adding products as well.

Turnover & PBT during the evaluation Period

Net Sales
10,000.00 9,000.00 8,000.00 7,000.00 6,000.00 5,000.00 4,000.00 3,000.00
500 2000

Reported Net Profit

1500

1000

0 Dec '04 -500 Dec '05 Dec '06 Dec '07 Dec '08 Dec '09 Dec '10

2,000.00
1,000.00 0.00
Dec Dec '05 Dec Dec '07 Dec '04 '06 '08 Dec Dec '10 '09

-1000

-1500

FDI By MNC
FDI by foreign companies in India decline by 62% in

2009-10 to 2010-11 On the Other hands, FDI by Indian companies abroad increased by 144%s

R Reasons why multinational companies consider India as a preferred destination for business:
Huge market potential of the country
FDI attractiveness Labor competitiveness

Macro-economic stability

Advantages of the growing MNCs to India

Initiating a higher level of investment.
Reducing the technological gap The natural resources are utilized in true sense.

The foreign exchange gap is reduced

Boosts up the basic economic structure

Disadvantages of MNCs
Competition to SMSI
Pollution and Environmental hazards Some MNCs come only for tax benefits only

Exploitation of natural resources

Lack of employment opportunities Diffusion of profits and Forex Imbalance Working environment and conditions Slows down decision making Economical distress