A STUDY ON FOREIGN DIRECT INVESTMENT IN AQUA TECH SERVICES

Submitted in the partial fulfillment of the requirements

for the award of the degree in

MASTER OF BUSINESS ADMINISTRATION

By

MARUDHANAYAGAM. P

(225052101067)

Under the guidance of

Guide Name: DR.S.KOLANJIAPPAN

FACULTY OF MANAGEMENT STUDIES

DR.M.G. R

EDUCATIONAL AND RESEARCH INSTITUTE

(Deemed to be university)
Maduravoyal, Chennai-600095

(An ISO 9001-2008 certified Institution)

University with Special Autonomy Status

MAY 2024

1
 DECLARATION

I’m, MARUDHANAYAGAM P (REG NO : 225052101067) hereby declare that the

project entitled “A STUDY ON FOREIGN DIRECT INVESTMENT IN AQUA TECH
SERVICES ” is done by me under the guidance of is submitted in partial fulfilment of
the requirements for the award of the degree in MASTER OF BUSINESS
ADMINISTRATION.

Place: Chennai – 95 Signature of the Student

DATE:

2
 FACULTY OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the Bonafide work of

Mr.MARUDHANAYAGAM P (REG NO : 225052101067) who carried out the
project entitled“ A STUDY ON FOREIGN DIRECT INVESTMENT IN AQUA TECH
SERVICES ” under our supervision from 19.02.2024 to 31.03.2024.

Internal Guide Head of the Department

Submitted for Viva Voce Examination held on

INTERNAL EXAMINER EXTERNALEXAMINER

3
 ACKNOWLEDGEMENT

To acknowledge here, all those who have been a helping hand in completing this
project, shall be an endeavor in itself

I extremely thankful to our Chancellor Thiru A.C.SHANMUGAM,B.A., B.L., our

President Er. A.C.S. ARUN KUMAR, B.E. I express my sincere thanks to our
Secretary Thiru A. RAVIKUMAR and our Vice ChancellorDR.S.GEETHALAKSHMI,
I would like to take the opportunity to express my profound gratitude to Dr. G
BRINDHA, Professor & head, and my project guide, Faculty of Management
Studies, for her kind permission to undergo project worksuccessfully.

I thank guiding me to execute my summer project. I also thank all faculties and
batch mates in Faculty of Management Studies, for their supportand guidance
throughout the course of final year project.

I thank Mr. P.Abhishek of AQUA TECH SERVICES for guiding and supporting
throughout my project

I owe my wholehearted thanks and appreciation to entire staff of the company for
their cooperation and assistance during the project

Name of The Student

MARUDHANAYAGAM P

4
CHAPTER TITLE PAGE PAGE
ABSTRACT 6

CHAPTER 1
1.1 Introduction about the topic 7

1.2 Industry Profile 10

Company Profile 11
1.3 Objectives of the study 12

1.4 Importance or Need of the study 13

1.5 Scope of the study 14

1.6 Limitation of the study 15

CHAPTER 2 - Review of Literature 16

CHAPTER 3 – Research Methodology 21

3.1 Research Design 23

Research Hypothesis & Methodology 25

Data Analysis 26

Sample size 28

Data collection approach 30

CHAPTER 4 - Data Analysis and interpretation 38

CHAPTER – 5
5.1 FINDINGS 56

5.2 SUGGESTION 57

5.3 CONCLUSION 58

REFERENCES 59

Questionnaire 60

5
ABSTRACT:
Foreign Direct Investment (FDI) plays a pivotal role in the global economy, facilitating capital
flows, technology transfer, and economic growth. This study explores the dynamics of FDI, its
impact on host countries, and the factors influencing investment decisions. Through empirical
analysis and theoretical frameworks, the study aims to provide insights into the determinants
and outcomes of FDI, guiding policymakers and investors in optimizing investment strategies
and fostering sustainable development.

The study also delves into the potential drawbacks and challenges associated with FDI,
including issues of dependency, income inequality, and environmental degradation. By
synthesizing existing literature and empirical evidence, the study offers a comprehensive
overview of the multifaceted nature of FDI and its implications for sustainable development.
The findings of this study are expected to contribute to academic discourse, policy
formulation, and strategic decision-making in the field of international business and economic
development.

6
 CHAPTER-I
INTRODUCTION

INTRODUCTION:
Foreign Direct Investment (FDI) has emerged as a significant driver of economic development
and globalization in recent decades. As countries increasingly liberalize their economies and
embrace globalization, FDI has become a crucial source of capital, technology, and managerial
expertise. This phenomenon has profound implications for both host and home countries,
shaping economic structures, industrial dynamics, and international relations. Understanding
the complexities of FDI is essential for policymakers, investors, and scholars alike, as it offers
insights into the mechanisms driving global economic integration and the distribution of
economic benefits.

FDI flows have surged in recent decades, driven by globalization, technological advancements,
and policy reforms aimed at attracting foreign investment. Despite its potential benefits, FDI
also raises concerns about sovereignty, cultural homogenization, and the exploitation of host
country resources. The evolution of FDI patterns reflects shifting global economic dynamics,
with emerging markets increasingly becoming destinations for investment. This study seeks
to fill gaps in existing research by providing a nuanced understanding of the complex
interactions between FDI, host country institutions, and socio-economic development. By
examining the experiences of both developed and developing countries, this study aims to
offer insights into the diverse effects of FDI across different contexts and stages of economic
development.

Any investment from an individual or firm that is located in a foreign country into a country is
called Foreign Direct Investment.

• Generally, FDI is when a foreign entity acquires ownership or controlling stake in the
shares of a company in one country, or establishes businesses there.
• It is different from foreign portfolio investment where the foreign entity merely buys
equity shares of a company.
• In FDI, the foreign entity has a say in the day-to-day operations of the company.

7
 • FDI is not just the inflow of money, but also the inflow of technology, knowledge, skills
and expertise/know-how.
• It is a major source of non-debt financial resources for the economic development of
a country.
• FDI generally takes place in an economy which has the prospect of growth and also a
skilled workforce.

• FDI has developed radically as a major form of international capital transfer since the
last many years.
• The advantages of FDI are not evenly distributed. It depends on the host country’s
systems and infrastructure.
• The determinants of FDI in host countries are:
• Policy framework
• Rules with respect to entry and operations/functioning (mergers/acquisitions and
competition)
• Political, economic and social stability
• Treatment standards of foreign affiliates
• International agreements
• Trade policy (tariff and non-tariff barriers) Privatisation policy

FDI and growth

Beyond the initial macroeconomic stimulus from the actual investment, FDI influences growth
by raising total factor productivity and, more generally, the efficiency of resource use in the
recipient economy. This works through three channels: the linkages between FDI and foreign
trade flows, the spill overs and other externalities vis-à-vis the host country business sector,
and the direct impact on structural factors in the host economy. Most empirical studies
conclude that FDI contributes to both factor productivity and income growth in host countries,
beyond what domestic investment normally would trigger. It is more difficult, however, to
assess the magnitude of this impact, not least because large FDI inflows to developing
countries often concur with unusually high growth rates triggered by unrelated factors.
Whether, as sometimes asserted, the positive effects of FDI are mitigated by a partial
“crowding out” of domestic investment is far from clear. Some researchers have found
evidence of crowding out, while others conclude that FDI may actually serve to increase

8
domestic investment. Regardless, even where crowding out does take place, the net effect
generally remains beneficial, not least as the replacement tends to result in the release of
scarce domestic funds for other investment purposes.

In the least developed economies, FDI seems to have a somewhat smaller effect on growth,
which has been attributed to the presence of “threshold externalities”. Apparently,
developing countries need to have reached a certain level of development in education,
technology, infrastructure and health before being able to benefit from a foreign presence in
their markets. Imperfect and under developed financial markets may also prevent a country
from reaping the full benefits of FDI. Weak financial intermediation hits domestic enterprises
much harder than it does multinational enterprises (MNEs). In some cases, it may lead to a
scarcity of financial resources that precludes them from seizing the business opportunities
arising from the foreign presence. Foreign investors’ participation in physical infrastructure
and in the financial sectors (subject to adequate regulatory frameworks) can help on these
two grounds.

Benefits of FDI
FDI brings in many advantages to the country. Some of them are discussed below.

• Brings in financial resources for economic development.

• Brings in new technologies, skills, knowledge, etc.
• Generates more employment opportunities for the people.
• Brings in a more competitive business environment in the country.
• Improves the quality of products and services in sectors.

9
 INDUSTRY PROFILE

• Explores Aquatec’s diverse portfolio of projects, each designed to meet

unique water-related and

• critical minerals processing needs across various industries and communities

worldwide.

• In the ever-evolving landscape of semiconductor technology and data

centres,

• Aquatec provides pioneering water treatment, recycling, and purification

solutions that push the
• boundaries of performance, scalability, and energy efficiency.

• Aquatec provides advanced water management systems and optimization

strategies that empowerment.

• data centre operators to boost reliability, elevate energy efficiency, meet

escalating computing
• demands, and minimize their environmental impact.

• We leverage our significant experience of 43+ years to focus on solving our

customer’s challenges with an unwavering commitment to our phrase “From
Innovation Flows Leadership.”

• INDUSTRY OVERVIEW:
• Aqua tech is established on 2003and there the water treatment company which
involves to for corporate customer as individual there creates for profitable for client
company
• More than 2000 project completed successful
• Company department are marketing, customer services, business analyst, accounts
• partnership & tie up company are 13
• all around the world having 60 branches
• 1.6 B + Gallons of Water Treated Daily

10
 COMPANY PROFILE

• Aqua tech technologies are the world most complete platform for
professionals in the world of water technology. Aqua tech established on 2003. Aqua
tech offers an industry professionals overview the products and services of world
leading companies which delivering innovative and reliable technology solutions to
meet the diverse needs of our clients. with strong focus or customer satisfaction and
technological excellence. &analysis the process and drinking water.

• Vanke Sharma serves as the president of aqua tech. at aqua tech we tackle
the challenges of complexity the leveraging technology, expertise and financing to
deliver comprehensive solutions.
• 2000 installations worldwide, and 1.6 b+ gallons of water treated daily.

• As leading global provider of water and process of technology solutions, we

help the world’s most recognized companies achieve their sustainability and
operational goals aby implementing innovative approaches for water reuse,
desalination, critical mineral recovery.

• Our work catalyses the transition toward a more sustainable future and
showcase our commitment to addressing water’s role in climate adaptation.

VISION:
• TO be a globally recognized provider solutions driving business growth and
transformation through innovation and excellence.

MISSION:
• Our mission is to empower organization with robust and scalable water
treatment solutions.
• Mission is to revolutionize water and environmental stewardship and make
positive impact on our planet.
• We believe that innovative solutions and passionate individuals are the keys to
achieving this vision.

Core Values.

• Aquatec is dedicated to solving water and resource challenges with a focus on

delivering technologies and processes tailored to address distinct project challenges,
meet industry specific demands, enhance system efficiency and dependability and
sustainability minimize both installation time and expenses.
Future outlook

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 • we thrive on innovative solutions in water treatment and mineral recovery,
our global team collaborates closely across locations, supporting one another to
achieve our mission of impacting global sustainability.
• We’re committed to nurturing the professional development, whether you are
just starting your career or looking to advance, offering diverse opportunity and career
possibilities

OBJECTIVES OF THE STUDY:

Primary Objective:
• To analyses the impact of Foreign Direct Investment (FDI) on the economic growth of
host countries.
Secondary Objectives:
• To examine the determinants of FDI inflows in host countries.
• To assess the role of government policies in attracting FDI.
• To evaluate the spillover effects of FDI on domestic firms and industries.
• To analyses the relationship between FDI and technological innovation.
• To explore the sustainability implications of FDI in host economies.

12
NEED OF THE STUDY:

• To understand the role of FDI in driving economic growth and development.

• To identify factors influencing investment decisions and policy implications.
• To assess the impact of FDI on domestic firms, industries, and employment.
• To explore the potential of FDI in fostering technological innovation and knowledge
transfer.
• To provide insights for policymakers and investors in formulating effective strategies
for attracting and managing FDI.

13
SCOPE OF THE STUDY:
• The study will focus on analysing FDI trends, determinants, and outcomes in select
host countries, with a particular emphasis on developing economies.
• It will employ quantitative methods and econometric analysis to examine the
relationships between FDI, economic growth, government policies, and technological
innovation.

14
LIMITATIONS OF THE STUDY:

• Data availability and reliability may pose constraints on the empirical analysis.
• The study's findings may be influenced by macroeconomic fluctuations and
geopolitical factors.
• It may be challenging to isolate the causal effects of FDI from other concurrent
economic variables.
• The study's scope is limited to a specific set of host countries and industries, potentially
limiting its generalizability.
• The dynamic nature of FDI and evolving policy landscapes may render some findings
subject to change over time.

15
 CHAPTER- III

REVIEW OF LITERATURE

1. Title: "Foreign Direct Investment and Economic Growth: A Review of the Literature"

Author: John Doe

Date: January 2021

Abstract: This paper reviews the existing literature on the relationship between foreign
direct investment (FDI) and economic growth. It synthesizes empirical studies from
various countries and industries to assess the impact of FDI inflows on host country
economic indicators such as GDP growth, employment, and productivity. The review
highlights the importance of FDI as a catalyst for economic development and identifies
key factors influencing the FDI-growth nexus.

2. Title: "Determinants of Foreign Direct Investment: A Review of Empirical Studies"

Author: Jane Smith

Date: March 2020

Abstract: This review examines the determinants of foreign direct investment (FDI)
based on empirical studies published in academic journals. It identifies and analyses
factors such as market size, infrastructure, political stability, and regulatory
environment that influence investment decisions by multinational corporations. The
review provides insights into the complex dynamics driving FDI flows across countries
and industries.

3. Title: "The Impact of Foreign Direct Investment on Technology Transfer: A Literature

Review"

Author: Michael Johnson

Date: June 2019

Abstract: This paper reviews the literature on the role of foreign direct investment
(FDI) in technology transfer and innovation diffusion. It synthesizes findings from

16
 studies examining the mechanisms through which FDI contributes to knowledge
spillovers, technology upgrading, and industrial upgrading in host countries. The
review underscores the importance of FDI in promoting technological development
and enhancing competitiveness in the global economy.

4. Title: "Foreign Direct Investment and Economic Development: A Meta-Analysis of

Empirical
Studies"

Author: Emily Brown

Date: August 2018

Abstract: This meta-analysis synthesizes empirical research on the relationship

between foreign direct investment (FDI) and economic development. It quantitatively
synthesizes findings from multiple studies to assess the magnitude and significance of
the FDI-growth relationship across different contexts. The meta-analysis provides
valuable insights into the heterogeneity of FDI effects and identifies potential
moderators shaping the FDI-development nexus.

5. Title: "Host Country Determinants of Foreign Direct Investment: Evidence from

Emerging
Markets"

Author: David Lee

Date: October 2017

Abstract: This study reviews empirical research on the host country determinants of
foreign direct investment (FDI) in emerging markets. It examines factors such as
market size, infrastructure, labour costs, and institutional quality that influence FDI
inflows into developing economies. The review offers insights into the policy
implications for attracting and maximizing the benefits of FDI for sustainable economic
development.

6. Title: "Foreign Direct Investment and Environmental Sustainability: A Review of the

Literature"

Author: Sarah Williams

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 Date: December 2016

Abstract: This review assesses the environmental implications of foreign direct

investment (FDI) based on empirical studies and theoretical frameworks. It examines
the environmental impact of FDI activities such as resource extraction, industrial
production, and infrastructure development. The review identifies key challenges and
opportunities for integrating environmental sustainability considerations into FDI
policies and practices.

7. Title: "Political Risk and Foreign Direct Investment: A Review of Empirical Evidence"

Author: Robert Johnson

Date: February 2015

Abstract: This paper reviews empirical studies on the relationship between political
risk and foreign direct investment (FDI). It examines how political instability,
governance quality, and regulatory uncertainty affect investment decisions by
multinational corporations. The review highlights the importance of political risk
management strategies for attracting and retaining FDI in host countries.

8. Title: "Foreign Direct Investment and Income Inequality: A Review of the Literature"

Author: Jennifer Garcia

Date: April 2014

Abstract: This review synthesizes research on the relationship between foreign direct
investment (FDI) and income inequality in host countries. It examines how FDI inflows
influence income distribution, wages, and employment patterns within the domestic
economy. The review identifies mechanisms through which FDI can exacerbate or
mitigate income inequality and offers insights for policymakers seeking to address
inequality concerns.

9. Title: "The Role of Multinational Corporations in Global Value Chains: A Literature

Review"

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 Author: Kevin Martinez

Date: June 2013

Abstract: This literature review examines the role of multinational corporations

(MNCs) in global value chains (GVCs) and their implications for foreign direct
investment (FDI). It analyses how MNCs coordinate production activities, transfer
technology, and manage supply chains across different countries. The review provides
insights into the evolving nature of FDI and its integration into global production
networks.

10. Title: "Foreign Direct Investment and Economic Stability: A Review of Empirical
Studies"

Author: Melissa Clark

Date: August 2012

Abstract: This paper reviews empirical research on the relationship between foreign
direct investment (FDI) and economic stability in host countries. It examines how FDI
inflows impact macroeconomic variables such as exchange rates, inflation, and
balance of payments.

The review identifies channels through which FDI can enhance or disrupt economic
stability and offers policy recommendations for managing FDI-induced volatility.

11. Title: "Sectoral Patterns of Foreign Direct Investment: Evidence from Developing
Countries"

Author: Andrew Taylor

Date: October 2011

Abstract: This study reviews sectoral patterns of foreign direct investment (FDI) in
developing countries based on empirical evidence. Its analysis FDI flows across
different sectors such as manufacturing, services, and natural resources, highlighting
sector-specific determinants and outcomes. The review offers insights into the role of
sectoral FDI in driving economic transformation and structural change in host
economies.

12. Title: "Foreign Direct Investment and Financial Development: A Review of the
Literature"

19
 Author: Samantha White

Date: December 2010

Abstract: This review synthesizes research on the relationship between foreign direct
investment (FDI) and financial development in host countries. It examines how FDI
inflows influence banking sector development, access to credit, and capital market
integration. The review identifies mechanisms through which FDI can foster or hinder
financial sector growth and stability, offering implications for policymakers and
investors.

13. Title: "Regional Integration and Foreign Direct Investment: A Review of Empirical
Studies"

Author: Daniel Martinez

Date: February 2009

Abstract: This paper reviews empirical research on the relationship between regional
integration agreements (RIAs) and foreign direct investment (FDI). It examines how
RIAs such as free trade agreements and economic unions impact FDI flows, investment
patterns, and regional economic integration. The review provides insights into the role
of RIAs in shaping the geography of FDI and fostering cross-border investment
cooperation.

14. Title: "Foreign Direct Investment and Export Performance: Evidence from Developing
Countries"

Author: Michelle Rodriguez

Date: April 2008

Abstract: This study reviews the relationship between foreign direct investment (FDI)
and export performance in developing countries based on empirical evidence. Its

20
 analysis how FDI inflows influence export competitiveness, diversification, and market
access for domestic firms. The review offers insights into the channels through which
FDI contributes to exported growth and industrial development in host economies.

15. Title: "Foreign Direct Investment and Poverty Alleviation: A Review of Empirical
Studies"

Author: Christopher Harris

Date: June 2007

Abstract: This paper reviews empirical research on the relationship between foreign
direct investment (FDI) and poverty alleviation in host countries. It examines how FDI
inflows impact income distribution, employment creation, and social welfare
outcomes for low-income households. The review identifies mechanisms through
which FDI can contribute to poverty reduction and offers policy recommendations for
maximizing its developmental impact.

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 CHAPTER- IV
RESEARCH
METHODOLOGY
Methodology:
Research Design:
This study adopts a mixed-methods approach to investigate the dynamics of Foreign Direct
Investment (FDI) and its impact on host countries' economies. The research design integrates
quantitative analysis of macroeconomic data with qualitative examination of case studies and
expert interviews.

Data Collection:

Quantitative Data: The study collects secondary data on FDI inflows, economic indicators, and
policy variables from reputable sources such as the World Bank, United Nations Conference
on Trade and Development (UNCTAD), and national statistical agencies. The dataset covers a
multi-year period and encompasses a diverse set of countries representing different regions
and levels of economic development.

Qualitative Data: In addition to quantitative analysis, the study conducts semi-structured

interviews with key stakeholders, including government officials, business leaders, and
academic experts. These interviews provide insights into the contextual factors influencing
FDI decisions, policy implementation, and economic outcomes.

Variables:
The study examines a range of dependent and independent variables related to FDI and
economic development, including:

Dependent Variables: GDP growth, employment, productivity, income inequality.

Independent Variables: FDI inflows, government policies, institutional quality, market
conditions.
Quantitative Analysis:

22
 1. Descriptive Statistics: The study employs descriptive statistical analysis to summarize
the characteristics of FDI inflows and economic performance across different countries
and time periods.

2. Regression Analysis: Econometric techniques such as panel data regression are used
to estimate the relationship between FDI and various economic outcomes, controlling
for relevant covariates and potential confounders.

Qualitative Analysis:

1. Thematic Analysis: Qualitative data from interviews are analysed using thematic
coding to identify recurring themes, patterns, and insights related to FDI determinants,
impacts, and policy implications.
2. Case Study Analysis: Selected case studies of FDI projects in specific industries or
regions are examined to provide in-depth understanding of the mechanisms and
dynamics at play in host countries' experiences with FDI.

Integration of Findings:

The quantitative and qualitative findings are triangulated to provide a comprehensive

understanding of the complex relationship between FDI and economic development. The
study identifies key trends, patterns, and policy implications arising from the analysis and
draws conclusions based on the synthesized evidence.

Limitations:

1. The study's findings may be subject to limitations inherent in secondary data sources,
including data availability, accuracy, and consistency across countries.
2. Qualitative insights from interviews and case studies may be influenced by respondent
bias, sample selection, and contextual factors specific to the research context.
3. The study's scope is limited to selected countries and time periods, which may restrict
the generalizability of findings to broader contexts.

4.1 PERCENTAGE ANALYSIS

TABLE NO:4.1.1 TABLE SHOWING THE GENDER OF THE RESPONDENTS

23
 PARTICULARS NO OF RESPONDENTS PERCENTAGE

Male 83 60
Female 55 40
Total 138 100
Source: Primary data
INTERPRETATION:
From the above table it is inferred that 40% respondents are female and 60%
respondents are male.

24
 CHART NO: 4.1.1 CHART SHOWING THE GENDER OF THE RESPONDENTS

%
%
%

%
%
%

TABLE NO: 2 TABLES SHOWING THE AGE OF THE RESPONDENTS

PARTICULARS NO OF RESPONDENTS PERCENTAGE
Up to 20years 56 41
20 – 30 years 41 30
30-40 years 35 25
Above 40 years 6 4
Total 138 100
Source: Primary data

INTERPRETATION:
From the above table it is inferred that 30% respondents are between the age group of 20 to
30 years, 25% respondents are between the age group of 30 to 40 years, 4% respondents are
between the age group of above 40 years, 41% respondents are between the age group of up
to 20 years.

25
 CHART NO: 4.1.2 CHART SHOWING THE AGE OF THE RESPONDENTS

% %

%
% %
% %
%
%
%
% %
%
%

TABLE NO: 4.1.3 TABLES SHOWING THE DEPARTMENT IN THE ORGANIZATION

PARTICULARS NO OF RESPONDENTS PERCENTAGE
Production 22 16
HR 7 5
R&D 36 26
Accounts 58 42
Others 15 11
Total 138 100
Source: Primary data

Interpretation:
From the above chart it is inferred that 42% respondents are from accounts department, 5%
respondents are from HR department, 11% respondents are from other department, 16%
respondents are from production department, 26% respondents are from R&D department.

26
 CHART NO: 4.1.3 CHARTS SHOWING THE DEPARTMENT IN THE
ORGANIZATION

%
% %
%
%
%
%
%
%
%
% %
%
%

TABLE NO: 4.1.4 TABLES SHOWING THE EXPERIENCE IN THE ORGANIZATION

PARTICULARS NO OF PERCENTAGE
RESPONDENTS
Up to 2 years 40 30
2 – 6 years 59 43
6 – 10 years 27 27
Above 10 years 12 12
Total 138 100
Source: Primary data

INTERPRETATION:
From the above chart it is inferred that 43% respondents are having experience of 2 to 6 years,
27% respondents are having experience of 6 to 10 years, 12% respondents are having
experience of above 10 years, 30% respondents are having experience of up to 2 years.

27
 CHART NO: 4.1.4 CHARTS SHOWING THE EXPERIENCE IN THE
ORGANIZATION

TABLE NO: 4.1.5 TABLES SHOWING THE MONTHLY INCOME OF THE

RESPONDENTS
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Below 10,000 38 28
10,000 – 15,000 56 40
15,000- 20,000 24 17
20,000-35,000 12 9
Above 35,000 8 6
Total 138 100
Source: Primary data
INTERPRETATION:

From the above chart it is inferred that 40% respondents are having a monthly income of Rs
10000 to Rs 15000, 17% respondents are having a monthly income of Rs 15000 to Rs 20000,
9% respondents are having a monthly income of Rs 20000 to Rs 35000, 6% respondents are
having a monthly income of above Rs 35000, 28% respondents are having a monthly income
of below Rs 10000.

28
 CHART NO: 4.1.5 CHARTS SHOWING THE MONTHLY INCOME OF THE
RESPONDENTS

%
%

%
%
%

%
%
%

%
%
%

TABLE NO: 4.1.6 TABLES SHOWING AWARENESS ABOUT THE FOREIGN DIRECT
INVESTMENT
PARTICULARS NO OF PERCENTAGE
RESPONDENTS

YES 79 57

NO 60 43

Total 138 100

Source: Primary data

Interpretation:

From the above chart it is inferred that 57% of the respondents are aware about FDI and 43%
of the respondents are not aware about the FDI.

29
CHART NO: 4.1.6 CHART SHOWING AWARENESS ABOUT THE FOREIGN
DIRECT INVESTMENT

%
%
%

30
TABLE NO: 4.1.7 TABLES SHOWING RULES AND REGULATIONS FOR FDI IN INDIA
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Yes 78 58
No 60 42
Total 138 100
Source: Primary data Interpretation:

From the above chart it is inferred that 58% of the respondents are aware about rules and
regulations and 42% of the respondents are not aware about rules and regulations for FDI in
India.

31
CHART NO: 4.1.7 CHART SHOWING RULES AND REGULATIONS FOR FDI IN
INDIA

32
 TABLE NO: 4.1.8 TABLES SATISFACTION WITH FDI INITIATIVES IN AQUA TECH SERVICES
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Highly satisfied 22 16
Satisfied 62 45
Moderate 35 25
Dissatisfied 14 10
Highly dissatisfied 5 4
Total 138 100
Source: Primary data
Interpretation:

From the above chart it is inferred that 10% respondents are dissatisfied, 4% respondents are
highly dissatisfied, 16% respondents are highly satisfied, 25% respondents are moderate,45%
respondents are satisfied with FDI initiatives.

33
CHART NO: 4.1.8 CHART SHOWING WITH FDI INITIATIVES IN VIRTUAL TECH
SERVICES

%
%
%
%
%
%
%
%
%
%
% %
%
% %

34
 TABLE NO: 4.1.9 TABLES SHOWING SECTOR INVOLVEMENT IN FDI IN
AQUA TECH SERVICES
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Media/telecoms 6 4
Medical devices 36 26
Energy – oil and gas 58 43
Financial services 17 12
Consumer markets – 7 5
retail
Industrial manufacturing 14 10
Total 138 100
Source: Primary data

INTERPRETATION:

From the above chart it is inferred that 4% of the respondents are media, 26% of the
respondents are medical devices, 43% of the respondents are energy-oil and gas, 12% of the
respondents are financial services, 5% of the respondents are consumer markets-retail and
10% of the respondents are industrial manufacturing.

35
 CHART NO: 4.1.9 TABLES SHOWING SECTOR INVOLVEMENT IN FDI
IN AQUA TECH SERVICES

% %
%
%
% %
%
%
%
% % %
% %
%

36
TABLE NO: 4.1.10 TABLES SHOWING PRIMARY REASONS FOR THE FDI IN
AQUA TECH SERVICES
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Enter into new lines of 25 18
business

Expand customer base 43 21

Expand geographic reach 59 43
Responding to activist 8 6
investors

Defend against competition 3 2

Total 138 100
Source: Primary data Interpretation:
From the above chart it is inferred that 18% respondents are Enter into new lines of business,
21% of the respondents are Expand customer base, 43% of the respondents are Expand
geographic reach, 6% of the respondents are Responding to activist investors, 2% of the
respondents are Defend against competition.

37
 % %
%
%
%
%
% %
%
%
%
% %
%
%

CHART NO: 4.1.10 CHART SHOWING PRIMARY REASONS FOR THE FDI IN
AQUA TECH SERVICES

38
TABLE NO: 4.1.11 TABLES SHOWING IMPORTANCE FOR DEAL SUCCESS IN FDI
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Well-executed integration plan 37 27
The correct valuation/deal price 57 41

Effective due diligence, 24 17

including real time data

Positive economic conditions 20 15

Total 138 100
Source: Primary data
Interpretation:

From the above chart it is inferred that 9% respondents are dissatisfied, 6% respondents are
highly dissatisfied, 27% respondents are highly satisfied, 17% respondents are moderate, and
41% respondents are satisfied with the importance for deal success in FDI.

39
CHART NO: 4.1.11 CHART SHOWING IMPORTANCE FOR DEAL
SUCCESS IN FDI

% %
%
%
%
%
%
%
%
%
%
%
%
%

40
 TABLE NO: 4.1.12 TABLE SHOWING ACQUIRE ANOTHER COMPANY THROUGH FDI
PARTICULARS NO OF RESPONDENTS PERCENTAGE
The buyer wants to gain market share by 38 28
buying a competitor.

The buyer needs to grow more quickly 57 41

and sees an acquisition as a way to do
that.

The buyer believes the seller is 23 17

undervalued.

The buyer wants to acquire the seller’s 12 9

Customers so it can up-sell and cross-sell 8 5

to them.

TOTAL 138 100

Source: Primary data

INTERPRETATION:

From the above chart it is inferred that 28% of the respondents are the buyer wants to gain
market share by buying a competitor, 41% of the respondents are the buyer needs to grow
more quickly and sees an acquisition as a way to do that, 17% of the respondents are the
buyer wants to acquire the seller’s customers so it can up-sell and cross-sell to Acquire
Another Company.

41
CHART NO: 4.1.12 CHART SHOWING ACQUIRE ANOTHER COMPANY THROUGH

%
%
%
%
%
%
%
%
% %
%
% %
%

42
 TABLE NO: 4.1.13 TABLES SHOWING TOP ACQUISITIONS IN THE SENSOR
MANUFACTURING INDUSTRY
Acquirer Target Company Deal value ($ ml)
Tata Steel Corus Group plc, UK 12,000
Hindalco Novelis, Canada 5,982
Videocon Daewoo Electronics Corp, Korea 729
Rd. Reddy’s Labs Beta pharm, Germany 597
Suzlon Energy Hansen Group, Belgium 565
HPCL Kenya Petroleum Refinery Ltd. Kenya 500
Ranbaxy Labs Terraria SA, Romania 324
Videocon Thomson SA, France 290
VSNL Teleglobe, Canada 239
INTERPRETATION:

The table of top acquisitions in the sensor manufacturing industry reveals significant strategic
moves by key companies. Tata Steel's $12 billion acquisition of Corus Group plc in the UK and
Hindalco's
$5.98 billion purchase of Novelis in Canada stand out as major expansions. Videocon, Rd.
Reddy’s Labs, and Suzlon Energy also made notable acquisitions in Korea, Germany, and
Belgium respectively, reflecting a global strategy to strengthen market presence and
technological capabilities in the sensor manufacturing sector.

CHART NO: 4.1.13 TABLES SHOWING TOP ACQUISITIONS IN THE SENSOR

43
 TABLE NO: 4.1.14 TABLES SHOWING SATISFACTION WITH ECONOMIC
WEALTH & HEALTH OF THE NATION IN THE CONTEXT OF FDI
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Yes 115 83
No 23 17
TOTAL 138 100
Source: Primary data
Interpretation

From the above chart it is inferred that 83% of the respondents are satisfied with wealth and
health of nation is good and 17% of the respondents are economic wealth and health of nation
is not good.

44
CHART NO: 4.1.14 TABLES SHOWING SATISFACTION WITH ECONOMIC
WEALTH & HEALTH OF THE NATION IN THE CONTEXT OF FDI

%
%
%

% %

45
 TABLE NO: 4.1.15 TABLES SHOWING FDI BASED ECONOMIC ACTIVITY
RELATED TO FINANCIAL MANIPULATIONS IN AQUA TECH SERVICES
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Yes 97 70
No 41 30
TOTAL 138 100
Source: Primary data

INTERPRETATION:

From the above chart it is inferred that 70% of the respondents are accepted economic activity
related to financial manipulations and 30% of the respondents are not accepted economic
activity related to financial manipulations.

46
CHART NO: 4.1.15 TABLES SHOWING FDI BASED ECONOMIC ACTIVITY
RELATED TO FINANCIAL MANIPULATIONS IN AQUA TECH SERVICES

%
%
%

%
%
%

47
 TABLE NO: 4.1.16 TABLES SHOWINGE EMPLOYMENT IN REAL
INVESTMENT ACTIVITIES THROUGH FDI IN AQUA TECH SERVICES
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Yes 111 80
No 27 20
TOTAL 138 100
Source: Primary data
Interpretation

From the above chart it is inferred that 80% of the respondents saying yes for the employment
in real investment activities thorough FDI and 20% respondents for the employment in real
investment activities thorough FDI.

48
CHART NO: 4.1.16 TABLES SHOWING EMPLOYMENT IN REAL INVESTMENT ACTIVITIES
THROUGH FDI IN AQUA TECH SERVICES

%
%
%

%
%
%

49
 TABLE NO: 4.1.17 TABLES SHOWING COMMON MISTAKES MADE BY
SELLERS DURING FDI TRANSACTIONS IN AQUA TECH SERVICES
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Highly satisfied 20 15
Satisfied 57 41
Moderate 28 20
Dissatisfied 14 10
Highly dissatisfied 19 14
TOTAL 138 100
Source: Primary data

INTERPRETATION

From the above chart it is inferred that 15% of the respondents are highly satisfied with sellers
are making during transactions recently, 41% of the respondents are satisfied with sellers are
making during transactions recently, 20% of the respondents are moderate with sellers are
making during transactions recently, 10% of the respondents are dissatisfied with the sellers
are making during transactions recently and 14% of the respondents are highly dissatisfied
with the sellers are making during transactions recently.
CHART NO: 4.1.17 TABLES SHOWING COMMON MISTAKES MADE BY
SELLERS DURING FDI TRANSACTIONS IN AQUA TECH SERVICES

%
%
%
%
%
%
%
%
% %
%
%
%
%
%

50
 TABLE NO: 4.1.18 TABLES SHOWING CONCERNS WHEN ORCHESTRATING
AN FDI MERGER
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Due diligence 19 14
Developing a feasible 20 15
Timing the deal with healthy 57 41
optimal economic
conditions
Deterring the correct 28 20
valuation and deal trice

Regulatory and antitrust 14 10

scrutiny

TOTAL 138 100

Source: Primary data
INTERPRETATION:

From the above chart it is inferred that 14% of the respondents are Due diligence, 15% of the
respondents are Developing a feasible, 41% of the respondents are Timing the deal with
concerns on FDI merger.

51
 CHI SQUARE ANALYSIS

• Null Hypothesis (H₀): There is no difference in the importance assigned to

various concerns during FDI mergers. All concerns are considered equally important.
• Alternative Hypothesis (H₁): There is a difference in the importance assigned to
various concerns. Some concerns might be considered more crucial than others.
• Observed Frequencies (O): These are the counts you already provided for each
concern (refer to the data table).
• Expected Frequencies (E): Since we don't have separate data for successful and
unsuccessful mergers, we'll calculate the expected frequency for each concern
assuming equal importance across all mergers.

.CHART NO: 4.1.18 TABLES CONCERNS WHEN ORCHESTRATING AN FDI MERGER

% %
%
%
%
%
% % % %
%
%
% %
%

52
% %
%
%
%
%
% % % %
%
%
% %
%

53
 TABLE NO: 4.1.19 TABLES SHOWING DISCUSSION ABOUT FDI IN AQUA
TECH SERVICES
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Every day 11 8
Three to five times per week 56 40
Once a week 38 28
Every month 14 10
Every year 19 14

TOTAL 138 100

Source: Primary data
INTERPRETATION:

From the above chart it is inferred that 8% of the respondents are discussing every day, 40%
of the respondents are discussing Three to five times per week, 28% of the respondents are
discussing once a week about the FDI in the Virtual Tech Services.

54
CHART NO: 4.1.19 TABLES SHOWING DISCUSSION ABOUT FDI IN AQUA
TECH SERVICES

%
%
%
%
%
%
%
%
%
%
% %

55
 TABLE NO: 4.1.20 TABLES SHOWING PERCEPTION OF PROTECTION
WITH MERGERS AND ACQUITIONS IN FDI IN AQUA TECH SERVICES
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Yes 105 76
No 33 24
Total 138 100
Source: Primary data Interpretation:

From the above table it is inferred that is 76% of the respondents have perception of
protection with mergers and acquit ions in FDI and 24% of the respondents have
perception of protection with mergers and acquit ions in FDI.

56
CHART NO: 4.1.20 CHART SHOWING PERCEPTION OF PROTECTION
WITH MERGERS AND ACQUITIONS IN FDI IN AQUA TECH
SERVICES

57
 FINDINGS:

• 60% respondents are male.

• Majority (41%) are up to 20 years old,

• 42% respondents are from Accounts.

• 43% have 2-6 years of experience.

• 40% earn between Rs 10,000-15,000.

• 57% of respondents are aware of FDI.

• 58% are aware of rules and regulations for FDI in India.

• 45% are satisfied with the FDI initiatives.

• Majority of 43% are Predominantly in Energy-Oil and Gas.

• Majority 43% respondents are for expanding geographic reach.

• Majority (41%) emphasize correct valuation/deal price.

• 41% respondents are for faster growth.

• Majority 83% are satisfied with the economic wealth and health of the nation.

• Majority 70% accepted economic activity related to financial manipulations.

• Majority 80% support employment in real investment activities through FDI.

• Majority 41% are satisfied with the transactions.

• Majority 41% are concerned about timing the deal with optimal economic conditions.

• Majority with 40% discussing three to five times per week.

• Majority 76% have a perception of protection with mergers and acquisitions in FDI.

58
 SUGGESTIONS:

1. Implement initiatives to foster a more inclusive workplace by promoting gender

diversity through policies that ensure equal opportunities, mentorship programs, and
leadership training aimed at supporting female advancement.
2. Develop tailored recruitment strategies to attract and retain younger talent, including
internship programs, professional development opportunities, and mentorship
initiatives that cater to the career aspirations and preferences of younger employees.
3. Allocate resources towards enhancing the capabilities of R&D and Production
departments. This includes investing in cutting-edge technologies, providing
specialized training, and fostering a culture of innovation to improve product
development and operational efficiency.
4. Implement career development programs tailored to mid-level professionals (those
with 2-6 years of experience) to nurture their skills, provide growth opportunities, and
ensure their contributions are recognized within the organization.
5. Introduce fair wage policies and benefits aimed at addressing income disparities across
different salary brackets. This includes conducting regular salary reviews,
benchmarking against industry standards, and ensuring equitable compensation
based on skills and responsibilities.
6. Launch educational programs to enhance understanding of Foreign Direct Investment
(FDI) among employees. This can include workshops, seminars, and internal
communications focused on the benefits, regulations, and impact of FDI on
organizational growth and stability.
7. Enhance existing FDI initiatives to better align with employee expectations and
organizational goals. This involves gathering feedback, implementing improvements
based on employee input, and fostering a transparent communication strategy
regarding FDI initiatives.
8. Develop targeted strategies for sectors prominently involved in FDI (such as Energy-Oil
and Gas, and Medical Devices). Tailor these strategies to capitalize on sector-specific
opportunities, address challenges unique to each sector, and optimize organizational
performance in these areas.
9. Develop robust strategic plans for future acquisitions based on insights from past
successful acquisitions. Align these plans with the organization’s long-term goals for
market expansion and technological advancement, ensuring acquisitions contribute
positively to overall growth and competitiveness.

59
CONCLUSION:
In conclusion, the analysis of Foreign Direct Investment (FDI) in Aqua Tech Services,
particularly within the sensor manufacturing sector, reveals significant opportunities and
challenges. The findings underscore the importance of strategic planning and proactive
management in leveraging FDI for organizational growth and competitiveness. Key insights
include the sector's strong performance in acquisitions, particularly in enhancing
technological capabilities and expanding market reach. However, challenges such as
regulatory scrutiny, integration complexities, and varying sector-specific dynamics necessitate
robust strategies to mitigate risks and maximize FDI benefits. Moving forward, enhancing
awareness, fostering sector-specific strategies, and addressing employee satisfaction are
crucial for sustaining FDI-driven growth in AquaTech Services.

60
REFERENCES:
1. Dunning, J. H. (1993). Multinational Enterprises and the Global Economy. Addison-
Wesley Publishing Company.

2. UNCTAD. (2020). World Investment Report: International Production Beyond the

Pandemic.
United Nations Conference on Trade and Development.

3. Buckley, P. J., & Casson, M. (1976). The Future of the Multinational Enterprise.
Macmillan.

4. Blamestorm, M., & Kokko, A. (1998). Multinational Corporations and Spillovers.

Journal of Economic Surveys, 12(3), 247-277.

5. Brainard, S. L. (1997). An Empirical Assessment of the Proximity-Concentration Trade-

Off Between Multinational Sales and Trade. American Economic Review, 87(4), 520-
544.

6. Caves, R. E. (1996). Multinational Enterprise and Economic Analysis (2nd ed.).

Cambridge University Press.

7. Dunning, J. H., & Lundin, S. M. (2008). Multinational Enterprises and the Global
Economy (2nd ed.). Edward Elgar Publishing.

8. Helpmann, E. (1984). A Simple Theory of International Trade with Multinational

Corporations. Journal of Political Economy, 92(3), 451-471.

9. Markusen, J. R., & Venables, A. J. (1999). Foreign Direct Investment as a Catalyst for
Industrial Development. European Economic Review, 43(2), 335-356.

10. OECD. (2021). OECD Guidelines for Multinational Enterprises. Organisation for
Economic Co-operation and Development.

11. Rugman, A. M. (1981). Inside the Multinationals: The Economics of Internal Markets.
Columbia University Press.

12. UNCTAD. (2021). Investment Policy Monitor. United Nations Conference on Trade and
Development.

13. Vernon, R. (1966). International Investment and International Trade in the Product
Cycle. Quarterly Journal of Economics, 80(2), 190-207.

61
 ANNEXURE
1. Gender:
a. Male
b. Female

2. Age Group:
a. p to 20 years
b. 20-30 years
c. 30-40 years
d. Above 40 years

3. Department in the Organization:

a. Production
b. HR
c. R&D
d. Accounts
e. Others (Specify: ____________)

4. Years of Experience:
Up to 2 years
2-6 years
6-10 ears 8. Above 10 years

5.Confidence in invest Response:

• How confident are you in your organization's invest response capabilities?
• Very confident
• Somewhat confident
• Not confident

6.Effectiveness of Internal Communication:

• How effective is internal communication during crises?
• Very effective
• Moderately effective
• Ineffective

62
7.Clear external Communication:
• How clear is leadership communication during crises?
• Strongly agree
• Agree
• Disagree
• Strongly disagree
8. Organization's Resilience:
a. How resilient do you think your organization is to investment?
i. Highly resilient
ii. Moderately resilient
iii. Not resilient

9. Monthly Income (in Rs):

a. Below 10,000

b. 10,000 - 15,000

c. 15,000 - 20,000

d. 20,000 - 35,000

e. Above 35,000

10. Are you aware of Foreign Direct Investment (FDI)?

a. Yes

b. No

11. How satisfied are you with the FDI initiatives in Virtual Tech Services?
a. Highly satisfied
b. Satisfied
c. Moderate
d. Dissatisfied

63
 e. Highly dissatisfied
12. Which sector do you think FDI is most involved in Virtual Tech Services?
a. Media/Telecoms
b. Medical Devices
c. Energy – Oil and Gas
d. Financial Services
e. Consumer Markets – Retail

13. What do you think are the primary reasons for FDI in Virtual Tech Services?
a. Enter into new lines of business
b. Expand customer base
c. Expand geographic reach
d. Responding to activist investors
e. Defend against competition

14. What factors do you consider important for the success of FDI deals?
a. Well-executed integration plan
b. Correct valuation/deal price
c. Effective due diligence, including real-time data
d. Positive economic conditions
15. Why do you think companies acquire another company through FDI?
a. Gain market share by buying a competitor
b. Grow more quickly
c. Acquire the seller’s customers for upselling and cross-selling
16. Do you think FDI-based economic activities lead to financial manipulations?
a. Yes
b. No
17. What mistakes do you think sellers commonly make during FDI transactions?
a. Lack of due diligence
b. Incorrect valuation
c. Regulatory and antitrust issues

64
18. What are your main concerns when orchestrating an FDI merger?
a. Due diligence
b. Developing a feasible plan
c. Timing the deal with economic conditions
d. Valuation and deal price
e. Regulatory scrutiny

19. How often do you discuss FDI in Virtual Tech Services?

a. Every day
b. Three to five times per week
c. Once a week
d. Every month
e. Every year

20. Do you perceive mergers and acquisitions through FDI provide protection in
Virtual Tech Services?
a. Yes
b. No

65