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    Hubert Quartey: International Business

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    Sonal Agarwal
    MNCs have been quite successful in the Indian market over the past 25 years. Between 1991 and 2012, the number of MNCs in India more than quadrupled and their total revenue grew at an annual rate of 18%, faster than the overall economy. However, analysis shows that the largest MNCs in India only contribute about 2% of their parent companies' global revenues and profits, which is modest even after long periods of operation in India. Local Indian companies have the potential to succeed internationally by acquiring established companies in Europe and North America, as seen in Hindalco's acquisition of Novelis and Tata's acquisition of Corus. Foreign interest and investment in Indian companies has also increased.

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    Hubert Quartey: International Business

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    Sonal Agarwal
    24 views2 pages
    MNCs have been quite successful in the Indian market over the past 25 years. Between 1991 and 2012, the number of MNCs in India more than quadrupled and their total revenue grew at an annual rate of 18%, faster than the overall economy. However, analysis shows that the largest MNCs in India only contribute about 2% of their parent companies' global revenues and profits, which is modest even after long periods of operation in India. Local Indian companies have the potential to succeed internationally by acquiring established companies in Europe and North America, as seen in Hindalco's acquisition of Novelis and Tata's acquisition of Corus. Foreign interest and investment in Indian companies has also increased.

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    MNCs have been quite successful in the Indian market over the past 25 years. Between 1991 and 2012, the number of MNCs in India more than quadrupled and their total revenue grew at an annual rate of 18%, faster than the overall economy. However, analysis shows that the largest MNCs in India only contribute about 2% of their parent companies' global revenues and profits, which is modest even after long periods of operation in India. Local Indian companies have the potential to succeed internationally by acquiring established companies in Europe and North America, as seen in Hindalco's acquisition of Novelis and Tata's acquisition of Corus. Foreign interest and investment in Indian companies has also increased.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    24 views2 pages

    Hubert Quartey: International Business

    Uploaded by

    Sonal Agarwal
    MNCs have been quite successful in the Indian market over the past 25 years. Between 1991 and 2012, the number of MNCs in India more than quadrupled and their total revenue grew at an annual rate of 18%, faster than the overall economy. However, analysis shows that the largest MNCs in India only contribute about 2% of their parent companies' global revenues and profits, which is modest even after long periods of operation in India. Local Indian companies have the potential to succeed internationally by acquiring established companies in Europe and North America, as seen in Hindalco's acquisition of Novelis and Tata's acquisition of Corus. Foreign interest and investment in Indian companies has also increased.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    HUBERT QUARTEY

    INTERNATIONAL BUSINESS

    QUESTION
    How have the India MNCs fared at the international arena?
    ANWSER

    MNCs brought in foreign investment to Indian to support their business.

    MNCs fixed the problems in unemployment by giving jobs and opportunities to


    Indians.

    MNCs help India on how to manage their incomes and to improve their
    products to gain more profits.

    MNCs give tough competition to domestic companies.

    MNCs helps India to gain more investors and to promote their quality products.

    MNCs helps to solve their problems of poverty and unemployment.

    While there is some merit to the argument, what is often lost in the discussion
    is that MNCs have been quite successful in the India market over the past 25
    years. A Bain analysis reveals two salient facts, between 1991 and 2012, the
    number of MNCs in India more than quadrupled and over 20 years, a total
    MNCs revenue grew at a compound annual rate of 18% faster than the overall
    economy.

    QUESTION

    Do you think that the local India companies have what it takes to succeed in
    the international market?

    ANWSER
    Many MNCs companies are quite pleased with the performance in India. That’s
    because they have set quite a low bar for success. To most, the fact that their
    business in India is meeting budget or growing at double-digit rates is
    significant but that isn’t success. Companies can be growing at double-digit
    rates and meeting budgets and still be in India. Mckinsey & Company analysis
    shows that 25 largest publicly listed MNCs in India contributed just 2% of their
    parent’s global revenues and profits in 2011.That’s telling especially since
    many of them have been operating in India for long time. The India companies
    that have set up shop since 1991 as wholly owned subsidiaries contribute an
    even more anemic 1% of their parent’s revenues and profits. If all these
    operations grow at roughly the same pace as their industry, even after a decade
    their contribution will still be extremely modest.
    The local Indian companies have what it takes to succeed in the global market
    because the enter the international market by acquiring Europe and North
    America companies with strong Western traditions like Hindalco’s takeover of
    Novelis and Tatas’ acquisition of Corus are spectacular in every sense of the
    world. Also with the steady acceleration in the pace of Indian companies going
    global and because of the greater for foreign interest that invest a lot in the
    Indian companies.

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