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MNCs are such companies or institutions that meet out the services and the productions to many countries

and there institutions. They serve the customers and the institution best and simultaneously the magnetic chemistry between the country and the foreign MNCs has shown some fruitful results too. Off late the scope of international's performance in India has widened and these influxes in the flourishing on the varied scope are due to the talent and the cost factor that brings the MNCs here. These are not the sole prior causes of the Nokia, Vodafone, Fiat, Ford Motors and as the list moves on- to flourish in India. As the basic economic data suggest that after the liberalization in 1991, it has brought in hosts of foreign companies in India and the share of U.S shows the highest. They account about 37% of the turnover from top 20 companies that function in India. Keeping the 'Big Boss' apart there are certain other companies hailing from Britain, France, Netherlands, Italy, Germany, Belgium and Finland that have made a strong footing in India too. They are well flourishing and earning there share of maximum profit too.

Why are Multinational Companies in India?


There are a number of reasons why the multinational companies are coming down to India. India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India. For quite a long time, India had a restrictive policy in terms of foreign direct investment. As a result, there was lesser number of companies that showed interest in investing in Indian market. However, the scenario changed during the financial liberalization of the country, especially after 1991. Government, nowadays, makes continuous efforts to attract foreign investments by relaxing many of its policies. As a result, a number of multinational companies have shown interest in Indian market.

Profit of MNCs in India


It is too specify that the companies come and settle in India to earn profit. A company enlarges its jurisdiction of work beyond its native place when they get a wide scope to earn a profit and such is the case of the MNCs that have flourished here. More over India has wide market for different and new goods and services due to the ever increasing population and the varying consumer taste. The government FDI policies have some how benefited them and drawn their attention too. The restrictive policies that stopped the company's inflow are however withdrawn and the country has shown much interest to

bring in foreign investment here. Besides the foreign directive policies the labour competitive market, market competition and the macro-economic stability are some of the key factors that magnetize the foreign MNCs here. Following are the 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

There are certain advantages that the underdeveloped countries like and the developing countries like India derive from the foreign MNCs that establishes. They are as under:

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.

Top MNCs in India

IBM India

Employee head count:

IBM India is the subsidiary of IBM. It has grown in huge stature in India after it made a reentry in 1992 after the exit on 1970,s. It has the largest number of employee in India in comparison to any other MCs in India. As the growth rate suggest it had grown by almost 800% from 2003 to 2007 where the number of employees have increased to nearly 74000 from 9000 in 2003. It acquired this leading position in having the largest number of

employee in India since 2006. The scenario is such that one quarter of the employees of this institution is from India. It was expected that IBM would be recruiting 24000 employee ore in India in 2011 and the trend is showing the same this year. They have a planning to hire aggressively in India. If the expectation proves to be true then the head count is going to rise up nearly 154,000. as the estimated value suggest the employee head count reads as under:

Year 2002 2003 2004 2005 2006 2007 2008 2009 2010

Employees 5000 9,000 23,010 38,500 53,000 74,000 94,000 1,12,900 1,31,000

growth rate

The 2006 meet stated that IBM I India plan for a long term investment of $6 billion in the proposed next three years. The revenues that the company procured crossed about $300 million with minimal work strength of 4000 employee but with the change in certain avenues this led to a huge hige to $937 million in 2007 from $350 from 2002. The track remains stable and on 2005 IBM crossed the $1 billion parameters even. From here on the growth took leaps and bound and the domestic revenue was 60% in the year 20052006 that mark a history of IBM's portfolio. The emerging trends have found that the business analytics are coming down to India and would make huge investments here. They are the one that provides the most trust worthy solutions and even help in making a distinction to the customers, investors and the regulators. This is sure to have a positive effect in Indian scenario too. Profit Rate

The main motto of IBM is to establish 47 branch offices in India and the estimated year is 2013. All their medium and small sectors at work have brought in benefits to them. The company has a huge share in countries export which amounts to 45-50 percent of the share. The growth rate shows that the revenue earned was $99.90 billion in 2010 which is a 4percent growth. Moreover the company has generated a cash flow of $109 billion that was made to fund the future expansion and solely done to enhance the research and development. If such remains the growth and the working of the company this is sure to make huge profits in future. Nokia Communications People with nokia handsets are a daily sight. Nokia has crept in Indian scenario and culture very fast but with a steady pace. It made its way to Indian market in the year 1995 and off ate it has come out as a renowned company singing its glory. Nokia operates in the major metropolis in India and even in certain other major states too. They have flourished their business very strategically. The device market of Nokia has diversified its aim to cater to different customers and consumer segments. More over their close links with the operators have helped them to flourish over a wide geographical area which have lead them to be the highest and the largest network distributor. Employee head count: On the start the company had 450 people working India in the year 2004 but it soared over 15000 employees in the year 2008. Today India comes 2nd I raking in the list. Growth rate The growing market strategy of nokia shows that 8 million new subscriber come in every month.and the estimated rate shows that it's market would grow to US $427 billion in 2010. Reebok in India Reebok had a very hard start in India. They only had the male accessories and later the market added the female products. Rebook apart from having the sports goods had variety of other products too. India to them is the market of growing importance. More over the flourishing sports in India in all forms whether the national or international cricket and football or the local form like IPL have used this brand for promoting and even at times sponsoring. The cricket IPL format from 2008 to that of 2011 has seen some of the state to promote this brand recently. They have a good hold on the market and cater to consumers fancy.

Growth rate Reebok claims to have a come a long way off late. This has reached success in all levels in Indian scenario since it had made its way along. The sales at reached exceedingly to $91 million since 2005. Profit rate Reebok's Indian revenue has turned out to be nearing 1400 crores in the year 2008. Even the same rate was maintained in the year 2009 as the IPL fanned the floor of marketing. They have kept there strategy the same through out and made a quiet secured and a healthy footing in Indian market. Ranbaxy Laboratories Established in 1961 Ranbaxy is the largest pharmaceutical company in India. Operating across 45 countries and offering manufacturing facilities in 7 this multinational company in India actually started off way back in 1937. Ranbaxy entered the US market in 1998 and it went on to become the biggest share holder of the US pharmaceutical market in 2005 by holding almost 28 percent of the market share. In December 2005 Ranbaxy's total sales stood at US $1,178 million. Since the operations of the company are spread across the big and small cities of India the company employees a huge section of the Indian population. Currently there are 12,995 people employed with Ranbaxy in India. The revenues earned by Ranbaxy Laboratories in 2010 stood at ` 4,198.96 Billion. The profit for the same year accumulated to $327 Million. Tata Motors Tata Motors is among the top multinational companies in India. It is an operating subsidiary of the Tata Group. Tata Motors was established in the year 1945 and since then it has become the country's largest automotive producers. It is listed on both the Bombay Stock Exchange and the New York Stock Exchange. In 2005 this multinational company featured alongside the top ten firms in India procuring annual revenue of ` 320 billion. Tata Motors is ranked amongst the top employers of the country. The current strength of employees in the company stands as 50,000. In the year 2010 the total revenue earned by Tata Motors was $20.572 billion posting a growth rate of almost 64.2 per cent.

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