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CHAPTER – 4 HISTORY OF INDIAN CORPORATE, SELECTED
INDUSTRIES AND COMPANIES
4 History of Indian Corporate :
4.1 Industrial Revolution
4.2 Machine Age and the Factory System Consequences
4.3 FDI
4.4 Background of Selected Industries and Companies:
4.4.1 Automobiles:
4.4.1.1 Ashok Leyland Ltd.
4.4.1.2 Bharat Forge Ltd.
4.4.1.3 Hero Honda Motors Ltd.
4.4.1.4 Mahindra & Mahindra Ltd.
4.4.1.5 Tata Motors Ltd.
4.4.2 Banking:
4.4.2.1 Bank of Baroda
4.4.2.2 Bank Of India
4.4.2.3 Canara Bank
4.4.2.4 State Bank of India
4.4.2.5 Union Bank of India
4.4.3 Capital Goods:
4.4.3.1 Elecon Engg. Ltd
4.4.3.2 Gammon India Ltd
4.4.3.3 Larsen & Toubro Ltd
4.4.3.4 Reliance Infrastructure Ltd
4.4.3.5 Walchandnagar Industries Ltd
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4.4.4 FMCG :
4.4.4.1 Colgate Palmolive India Ltd
4.4.4.2 Godrej Consumer Products Ltd
4.4.4.3 Hindustan Unilever Ltd
4.4.4.4 ITC Ltd
4.4.4.5 Nestle India Ltd
4.4.5 Healthcare:
4.4.5.1 Apollo Hospitals Enterprises Ltd
4.4.5.2 Cipla Ltd
4.4.5.3 Dr. Reddy’s Laboratories Ltd
4.4.5.4 Lupin Ltd
4.4.5.5 Ranbaxy Laboratories Ltd
4.4.6 IT:
4.4.6.1 Financial Technologies Ltd
4.4.6.2 Hcl Technologies Ltd
4.4.6.3 Infosys Technologies Ltd
4.4.6.4 Moser Baer Ltd
4.4.6.5 Wipro Ltd
4.4.7 Metal:
4.4.7.1 Hindalco Industries Ltd
4.4.7.2 Ispat Industries Ltd
4.4.7.3 National Aluminium Co. Ltd
4.4.7.4 Steel Authority Of India Ltd
4.4.7.5 Tata Steel Ltd
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4.4.8 Oil & Gas:
4.4.8.1 Bharat Petroleum Co. Ltd
4.4.8.2 Hidustan Petroleum Co. Ltd
4.4.8.3 Indian Oil Co. Ltd.
4.4.8.4 Ongc Ltd
4.4.8.5 Reliance Industries Ltd
4.4.9 Power:
4.4.9.1 ABB Ltd
4.4.9.2 Bharat Heavy Electricals Ltd
4.4.9.3 Neyveli Lignite Ltd
4.4.9.4 Siemens Ltd
4.4.9.5 Tata Power Ltd
4.4.10 Realty:
4.4.10.1 Anant Raj Industriest Ltd
4.4.10.2 Ansal Properties & Infra Ltd
4.4.10.3 Mahindra Lifespace Dev. Ltd.
4.4.10.4 Peninsula Land Ltd
4.4.10.5 Unitech Ltd
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4 History of Indian Corporate:
Indian economic history is all about the development of the economy from
ancient times to the present. The economic history of India can be traced back to
the time of ancient Indus Valley civilization. Humans learned how to settle at one
place instead of being nomads. Due to the fertile lands, they learnt how to
cultivate and do farming. Slowly they made farming tools, domesticated animals,
invented the plough, etc. With the discovery of metals, tools were made out of
metals like copper, bronze, tin, etc.
Development of Commerce:
Commerce is that aspect of business activity which is concerned with the
distribution of goods and services produced by industry. Modern commerce in
its highly developed from consists of a complex and well developed system of
transport, insurance, warehousing and other allied activities which facilitate
trade. These are the stages which are considered in the process of development.
Household Economy:
This was the very first stage of economic development. Self-sufficiency within
the family was the basis of the economy and commercial intercourse between
families were totally absent. Men devoted themselves to the tougher jobs like
hunting, fishing, making weapons etc. while women engaged in fruit gathering,
cultivation of land and similar work etc. in short, commerce were still unknown.
Primitive Barter System:
Gradually the need of the family becomes more numerous. Moreover the families
began to maintain slaves. At this stage, the need of exchange between districts
became imperative. Now, commerce has begun with the barter system. But even
at this stage it is rare and restricted.
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The Rise in Trade:
As the needs of people got multiplied and the need of exchange arose. In the
beginning, trade took the form of direct exchange. The function of trade were
generally took place by the nobles, priests, high officials, land owners etc. in the
beginning. Gradually the trade become more complex and to protect themselves
from the land owners, common medium of exchange become necessary. At this
stage money appeared as an instrument and medium of trade.
Town Economy and International Trade:
At this stage, trade assumed certain fixed forms. Production began to be
undertaken for catering to the need of fixed local markets and gradually this
developed into large towns. Traders are divided into wholesale and retail
merchants. After that the credit system is also started. The next stage in the
development of commerce was large scale extension in the geographical
coverage of trade. Goods were now produced for being sold in various foreign
markets too besides the home markets. The revolutionary change in the
character and scope of trade was brought about by the industrial revolution
which increases the scale of production immensely. Specialized institutions like
banks, transport companies, insurance companies, warehousing companies were
set up to help the traders.[1]
4.1 Industrial Revolution:
The term ‘Industrial Revolution’ is applied to the series of remarkable changes.
The word ‘revolution’ means a fundamental change. In this sense, it was a change
in Industrial method from handwork to machine work driven by power and
Industrial organization from work at home to work in factories.
The industrial revolution did not occur suddenly. It was brought about by a
series of inventions like the spinning jenny, water frame, mule, power loom,
machine lathe etc. which completely revolutionized industry & commerce. It
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began with a number of inventions for use in the textile industry by such
investors as Hargreaves, Arkwright, Crompton, Kay & Cartwright, but was
complete only with the inventions of the steam engine & steam locomotion.
Steam engine enabled machines to be driven by power and therefore production
rose by leaps and bounds. Since local areas could not absorb the whole output. It
was necessary to market the products in far-off places. The development of
railways and the steamship greatly helped in meeting this need. In the absent of
efficient means of transport, Industrial revolution would not have led to all that
characterizes the industrial world. With these inventions, the manufactories
were converted into factories.
According to Knowles, “The so-called industrial Revolution comprised some
great changes or developments all of which were independent. These changes
may be summed up as under.
The revolution could be complete only when trained and skilled engineers were
available to industry in sufficient numbers. The revolutionary change in the
processes and scale of iron making became indispensable for the completion of
the industrial revolution. The use of mechanical devices driven by steam power
in textiles was the next important development connected with the industrial
revolution. With the application of power-driven machinery in textiles, it became
necessary to effect suitable changes in the process like bleaching, dyeing,
finishing or printing. So that production could be accelerated to keep pace with
the output of piece-goods. The development of coal mining was another change
implied in industrial revolution. As a part of it, the engineers devised a steam
engine which pumped water out of mines. This provided the much needed
impetus to coal-mining. The last but perhaps the most important part of
industrial revolution was the revolutionary change in the means of transport.
The various developments mentioned above would have lost all significance if
they were not accompanied simultaneously by a revolution in the means of
transport.
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Results of Industrial Revolution:
The industrial revolution was a phenomenon which radically altered the whole
system of production and left its marks even on the social and political life of the
countries. The major results of the industrial revolution may be studied as under
two broad heads
Economic Consequences:
As a result of the industrial revolution, goods began to be produced on a mass
scale. Previously the methods of production were more or less direct but with
the industrial revolution, they became indirect and roundabout. Before goods
could be produced, the increase in scale of production following the industrial
revolution was unprecedented.
The Industrial revolution replaced this simple system by a more complicated and
more gigantic one, called the capitalistic economy. In contrast to the natural
economy of the pre revolution times, the capitalistic economy, is characterized
by this following important features like a production of goods is undertaken not
for direct consumption but for sale in the market for money which is utilized to
buy other requirements. In modern times, even a farmer may concentrate on the
product, which may be commercially more profitable whereas previously
farmers tried to produce almost everything that they needed. As a result of the
above, money has become supreme and everything is done and measured in
terms of money. Money is both the measure of value and the medium of
exchange. However, money did exist even before the revolution. People
specialize in their skills in an arrow sense. They cannot produce whole things,
but they do specialize in producing parts of a product in an expert matter. It is
capital in the form of money again that brings all the factors of production
together to make a whole product. Ownership of means of production or capital
goods is concentrated in a few hands. By hiring other people, such capital goods
are put to use and wealth is produced. Having been produced on a mass scale,
goods had to be marketed over wide areas. Efficient means of transport not only
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helped in sending goods to different places but also helped manufactures to buy
raw materials from far off places economically. This resulted in specialization. In
a way, the industrial revolution helped to raise the standard of living of the
people. Increasingly employment and availability of cheaper goods raised the
standards of living. On the whole, the progress has been upward but only by fits
and starts – two steps forward and one step backward.
4.2 Machine Age and the Factory System Consequences:
The most important features of the factory system of industrial organization may
be summed up as under:
Factories in modern times are engaged in production for markets much wider
than those catered to under the domestic system. Production of goods on a mass
scale is therefore the first distinctive feature of the modern factory system. Mass
production of goods has necessitated the use of costly machines with high degree
of efficiency and precision. Employment of machinery has reduced the worker’s
position to that of a mere operator. His manual skill is of title consequence now.
The employment of expensive precision machinery for mass production has
naturally led to the standardization of products. The products no longer bear the
stamp of the worker’s personal attention and artistic talents. All products of a
particular variety or lot are now identical and interchangeable because they are
produced with highly specialized and accurate machines. Mass production with
machinery is possible only with division of labour. The factory system of
production is characterized by division of labour both in production and
management. Each worker specializes in the performance of a small part of the
job and so does every member of the management also specialize in a particular
aspect of management. Aggregation refers to the increase in the size of industrial
establishments and the concentration of industrial power. Mass production of
standardized machine made goods necessitated in the size of the premises and
the staff of the industrial establishments. Besides, the ownership of industrial
establishments, Besides, the ownership of industrial units passed on to large and
powerful joint stock companies drawing their capital from a large number of
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people rather than an individual or a few partners. Later on, the industrial world
came to be controlled by powerful combinations of large and small companies.
The creation of funds now is not confined to domestic level but at international
level also it is being used either for creation of funds or investment of funds or
both.
4.3 FDI:
FDI stands for Foreign Direct Investments. FDI is the investment of foreign assets
into domestic structures, equipment’s and organizations. FDI does not include
foreign investments into stock markets. FDI is thought to be more useful for the
country than investments in the equity of its companies.[2]
Introduction:
FDI stands for Foreign Direct Investments. FDI is the investment of foreign assets
into domestic structures, equipment’s and organizations. FDI does not include
foreign direct investments into the stock market. FDI is to be considered as the
measure of ownership of productive assets such as factories, mines and land. If
there is an increase in the foreign direct investment than it can be used as one
measure of growing economic globalization. FDI can also be used in the
infrastructure development projects such as construction of bridges and
flyovers, finance including banking and insurance services, real estate
development and retail sector etc. The FDI is mainly categorized as Inward FDI
and Outward FDI.
Definition:
“The direct investment in any productive assets in a country by any foreign
company is called foreign direct investment”.
“Foreign direct investment is that investments, which is made to serve the
business interests of the investors in a company, which is in a different nation
distinct from the investors’ country of origins”.
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Inward FDI:
Investment of foreign capital occurs in a local resources is called Inward
Investment or Inward FDI.
The factors affecting the growth of inward FDI comprises tax breaks, relaxation
of existent regulations, loans on low rates of interests and specific grants. The
FDI is useful to come out from the income loss incurred in the short run, it can be
avoided and the long run benefit can be gained from such type of funding. The
most of Offshore Financial Centres (OFC) such as Mauritius, Cyprus, Cayman,
Island and Bermuda comprises nearly 50% share of the total FDI inflows in India.
From the FDI data, only 18% of inflows to India have been by the United States
and the United Kingdom combined, while about 15% is by the non United
Kingdom European Countries and about 10% by East Asia. The amount of total
FDI inflows in the year 2010-2011 is `73177 crores. The cumulative FDI inflow
in India during the year 1991-2011 is `6,25,611crores.
The data of Inward FDI from the year 2000-2001 to 2010-2011 is presented in
the following table.
YEAR FDI (in Crore)
2000-2001 10733
2001-2002 18654
2002-2003 12871
2003-2004 10064
2004-2005 14653
2005-2006 24584
2006-2007 56390
2007-2008 98642
2008-2009 123025
2009-2010 123120
2010-2001 7317
(Upto Dec.-2010)
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Outward FDI:
The local capital, which is being invested in some foreign resources, is called
direct investment abroad or outward investment or outward FDI.
Outward FDI is useful in the import and export dealings with a foreign country.
An outward FDI is backed by the Government against all the types of associated
risks. Tax incentives as well as disincentives of various forms are given to these
types of firms. The firms which follow FDI is to be provided risk coverage,
subsidies and some other grants by the Government. Recent trend in global FDI
outflows shows that these outflows increased by 63.5% in 2004, but
subsequently declined by 4.3% in 2005. In 2006, these again exhibited a high
growth of 50.2% and the growth was maintained in 2007 with 50.9%. During
2004-2007, the annual average growth in global FDI outflows is 40.1%. India’s
FDI outflows increased by 26.5% in 2004-05, there after it was growing up to
169.4% in 2005-06 and further 173.1% in 2006.-07.
The growth rate came down to 34.6% in 2007-08. During the period 2004-05 to
2007-08 annual average in India’s actual FDI worked out to 100.9%, which was
much higher than the growth in global FDI outflows. During the year 2008 as
well as 2009 the global FDI was declined by 9.4% while Indian FDI outflow was
decline by 14.9%.
Benefits of FDI:
FDI has become an integral part of the economic development strategies for
India. FDI ensures a huge amount of domestic capital, production level and
employment opportunities in the developing countries, which is to be considered
as the major step towards the economic growth of the country. The main benefits
of FDI are given below.
1. Increase in Economic Growth.
2. Wide opportunity for trading.
3. Improvement in employment and skill levels.
4. Technology diffusion & knowledge transfer.
5. Linkage and spill over to domestic firms.
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Limitation of FDI :
There are some limitations of FDI which are given below:
1. FDI entails high travel and communication expenses.
2. FDI has adverse effect on competition.
3. FDI will make the host country lost the control over domestic policy.
4. When FDI is negatively affected, the economically backward section of the
host country is always inconvenienced.
5. Certain foreign policies are adopted that are not appreciated by the
workers of the recipient country.
The inward and outward FDI have significant influence over Share holders Value
Creation.
4.4. Background of selective Industries and Companies
4.4.1 Automobile Industry:
Automobile Industry in India has witnessed a tremendous growth in recent years
and is all set to carry on the momentum in the foreseeable future. Indian
automobile industry has come a long way since the first car ran on the streets of
Mumbai in1898. Today, automobile sector in India is one of the key sectors of the
economy in terms of the employment. Directly and indirectly it employs more
than 10 million people and if we add the number of people employed in the auto
ancillary industry than the number goes even higher.
The automobile industry comprises of heavy vehicles like trucks, buses, tempos,
tractors, passenger cars and two wheelers. Heavy vehicles section is dominated
by Tata-Telco, Ashok Leyland, Eicher motors, Mahindra and Mahindra and Bajaj.
The major car manufacturers in India are Hindustan Motors, Maruti Udyog, Fiat
India Private Ltd.etc. The dominant players in the two-wheeler sector are Hero-
Honda, Bajaj, and TVS etc.
In the initial years, after independence Indian automobile industry was plagued
by unfavourable Government policies. The automobile sector in India underwent
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a metamorphosis as a result of the liberalization policies invited in the 1991.
Measurement such as, relaxation of the foreign exchange and equity regulations,
reduction of tariffs on import and refining the banking policies played a vital role
in sector consisted of just a handful of local companies. However, after the sector
opened to foreign direct investment in 1996, global majors moved in. Automobile
industry in India also received an unintended boost from stringent Government
auto emission regulations over the past few years. This ensured that vehicles
produced in India confirmed to the standards of the developed world.
Indian automobile industry has matured in last few years and offers
differentiated products for different segments in the society. It is currently
making inroads into the rural middle class market after its inroads into the urban
market and rural rich. In the recent years, Indian automobile sector has
witnessed a slew of investment. India is on every major global automobile
player’s radar.
This industry is also fast becoming an outsourcing hub for automobile
companies, worldwide, as indicated by the zooming automobile exports from the
country. Today, Hyundai, Honda, Toyota, GM, Ford, and Mitsubishi have set up
their manufacturing bases in India. Due to rapid economic growth and higher
disposable income it is believed that the success story of the Indian automobile
industry is not going to end soon.
Some of the major characteristics of Indian automobile sectors are:
2nd largest two-wheeler market in the world.
4th largest commercial vehicle market in the world.
11th largest passenger cars in the market.
Expected to become the world’s 3rd largest automobile market by 2030, behind
only China and the US.
FUTURE PLAN:
Because of the strong linkage of the automobile industry with other industries
e.g. agriculture, investment in this industry act as a driver of economic
development and employment generation. An expanding manufacturing base of
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vehicles also leads to development of components and ancillaries with a
multiplier effect. With constrained railway infrastructure, road transport is
expected to grow further with private sector investment in long term growth and
transformation of the rural economy which ultimately leads to greater demand
for automobile. As income level increase, so will the number of potential buyers
in the growing class especially with credit to finance vehicle purchase so that the
projected turnover of C$ 1 Billion for 2005 could be attained[3]
4.4.1.1 Ashok Leyland Ltd
The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by
independent India. Pandit Jawaharlal Nehru, India's first Prime Minister
persuaded Mr.Raghunandan Saran, an industrialist, to enter automotive
manufacture. In 1948, Ashok Motors was set up in what was then Madras, for the
assembly of Austin Cars. The Company's destiny and name changed soon with
equity participation by British Leyland and Ashok Leyland commenced
manufacture of commercial vehicles in 1955.
Since then Ashok Leyland has been a major presence in India's commercial
vehicle industry with a tradition of technological leadership, achieved through
tie-ups with international technology leaders and through vigorous in-house
R&D.
Access to international technology enabled the Company to set a tradition to be
first with technology. Be it full air brakes, power steering or rear engine busses,
Ashok Leyland pioneered all these concepts. Responding to the operating
conditions and practices in the country, the Company made its vehicles strong,
over-engineering them with extra metallic muscles. "Designing durable products
that make economic sense to the consumer, using appropriate technology",
became the design philosophy of the Company, which in turn has moulded
consumer attitudes and the brand personality[4]
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4.4.1.2 Bharat Forge Ltd
Bharat Forge Ltd is one of the most innovative and exciting companies to emerge
in the history of the forging industry. The Indian Automotive Industry in the 50’s
was more like the story of imported kits. Ancillaries were nominal and
infrastructure was scarce and inadequate. It was then, that Bharat Forge came
into existence in 1961 to meet the forging needs of the India Automotive
Industry. The 70’s witnessed a spurt in the Indian forging industry with more
and more units coming up. For Bharat Forge, it was a period of consolidation and
growth. With the largest integrated facilities in Asia and an unbeatable track
record, Bharat Forge emerged as the undisputed leader - the first name in the
forgings industry in India.
With an emphasis on diversification, the 80’s saw Bharat Forge grow from a
primarily automotive ancillary to an engineering enterprise focusing on
technological supremacy, resilience and total customer-orientation. Today, the
art of forging metal is a tradition at Bharat Forge, and all of our products are built
with the expertise necessary to accommodate various industries. Each customer
specification is carefully transformed into a cost-efficient reality. Every part we
create is a representation of our overall dedication to craftsmanship[5]
4.4.1.3 Hero Honda Motors Ltd
Hero Honda Motors Ltd. Is the world’s largest manufacturer of two wheeler,
based in India. The company is a joint venture between India’s Hero group and
Honda Motor Company, Japan that began in 1984[6]
In 2001, the company achieved the coveted position of being the largest two
wheeler company in India and the world’s number 1 two wheeler company in
terms of unit volume sales in a calendar year by a single company. Hero Honda
has retained that coveted position till date.
Today every motor sold in the country is a Hero Honda Bike. Every 30 seconds,
someone in India buys Hero Honda’s top selling motorcycle. Hero Honda’s main
strategy is to innovate in every sphere of activity like exploring new market,
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aggressively expanding new markets etc. The main product of the company is
motorcycle but the company had manufactured scooter in 2006. The company is
continuously invested in brands.
4.4.1.4 Mahindra & Mahindra Ltd
Mahindra is conglomerate with employee strength of over 40,000. The group has
diverse business interests such as automotive, farm equipment’s, infrastructure,
information technology, hospitality, and financial services. Mahindra Group has
global presence and it is ranked amongst Forbes Top 200 list of the World's Most
Reputable Companies and in the Top 10 list of Most Reputable Indian companies.
The origins of Mahindra Group can be traced back to October 2, 1945 when
Mahindra brothers J.C. Mahindra & K.C. Mahindra joined hands with Ghulam
Mohammad, and Mohammad was set up as a franchise for assembling jeeps from
Willys, USA. After India's independence in 1947, Mahindra & Mohammad
changed its name to Mahindra & Mahindra Ghulam Mohammad migrated to
Pakistan post-partition and became the first Finance Minister of Pakistan. Since
then, Mahindra Group has gone from strength to strength and today it has
evolved into a giant group.
The company had registered its name in the BSE in 1969 and becomes an
exporter of utility vehicles and spare parts in the world market. The company is
recognized in another division like automotive, farm equipment, infrastructure,
trade and financial services.[7]
4.4.1.5 Tata Motors Ltd
Tata Motors Limited is India’s largest automobile company, with revenue of `
35651.48 crores (USD 8.8 billion) in 2007-08. 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 second
largest bus manufacturer. The company’s 23,000 employees are guided by the
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vision to be “best in the manner in which we operate best in the products we
deliver and best in our value system and ethics.”
Established in 1945, Tata Motors’ presence indeed cuts across the length and
breadth of India. Over 4 million Tata vehicles ply on Indian roads since the first
rolled out in 1954. The company’s manufacturing base in India is spread across
Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh),
Pantnagar (Uttarakhand) and Dharwad(Karnataka). Following a strategic
alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat
Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata
cars and Fiat power trains. The company has established a new plant at Sanand
(Gujarat). The company’s dealership, sales, services and spare parts network
comprises over 3500 touch points; Tata Motors also distributes and markets Fiat
branded cars in India.[8]
4.4.2 Banking Industry
Without a sound and effective banking system in India, it cannot have a healthy
economy. The banking system of India should not only be hassle free but it
should be able to meet new challenges posed by the technology and any other
external and internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the
main reasons of India's growth process.
The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait fervours at the bank counters for
getting a draft or for withdrawing his own money. Today, he has a choice. Gone
are days when the most efficient bank transferred money from one branch to
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other in two days. Now it is simple as the money has become the order of the
day.
The first bank in India, though conservative, was established in 1786. From 1786
till today, the journey of Indian Banking System can be segregated into three
distinct phases. They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian financial &
Banking Sector Reforms after 1991.
History of Banking:
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of Bengal
(1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units
and called it Presidency Banks. These three banks were amalgamated in 1920
and Imperial Bank of India was established which started as private
shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.
Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda,
Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of
India came in 1935.
During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100
banks, mostly small. To streamline the functioning and activities of commercial
banks, the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of
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1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive
powers for the supervision of banking in India as the Central Banking Authority.
During those day public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility provided by
the Postal department was comparatively safer. Moreover, funds were largely
given to traders.
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas. It
formed State Bank of India to act as the principal agent of RBI and to handle
banking transactions of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960
on 19th July, 1969, major process of nationalization was carried out. It was the
effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major
commercial banks in the country were nationalized[9]
Growth of Banking Industry:
With changing times, the banking sector in India too observed a sea change.
From people frequenting banks just to deposit money to the age of building
relationships rather than just customers has become the new norm.
This has also opened new avenues of growth for the banking industry. From
branch banking to internet banking and now to mobile banking, the industry has
surely come of age.
The reason for this can be widely attributed to the socio-economic changes
happening widely in India due to economic liberalization. According to the
Technical Group on Population Projections constituted by the National
Commission on Population, May 2006, in India the proportion of population in
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the working age group of 15-64 years will increase to 68.4 per cent in 2026. This
clearly shows a mass of bankable customer and as they grow up in the career
ladder, the need to manage their finances will increase. Looking at this growing
set of customers, all major banks have taken the route of next- generation
banking. To build a steady relationship, they are now offering life-cycle wise
products. Saving plans are available from the moment a child is born. Then there
are loan and insurance schemes to fulfil their educational, health or other such
needs for a secure future. Banks are also providing guidance on wealth
management and customized products to suit individual needs.
A major breakthrough in banking services has come in the form of internet
banking and mobile banking. Banks have realized that the customers today need
a convenient and secure way to manage their finances. Internet banking has
provided the freedom of 24x7 banking to the customers. Now from getting your
phone recharged to booking tickets for movie or a journey to taking loans, all is
possible with a click of a button. With no additional cost and easy accessibility,
the medium is fast taking over the traditional mode of banking. "In this busy age
nobody has the time to stand in lines to pay bills or check account balance.
Internet banking has come as a boon for this generation that wants everything at
a moment's notice.
The usage of credit and debit cards has also seen a major increase among the
younger segment of customers. According to a recent study, the average age of
credit card holders has come down to 27 years from 45 in a span of just two to
three years. Though this sounds like good news for the banks, they are making
sure that it doesn't cause a problem in the future. To ensure proper return of
their debt, banks have come out with customer-friendly education material
which helps the customer take sound financial decisions.
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4.4.2.1 Bank of Baroda
Bank of Baroda is the third largest bank in India, after the State Bank of India and
the Punjab National Bank and ahead of ICICI Bank. BOB has total assets in excess
of ` 2.27 lakh crores, or ` 2,274 billion, a network of over 3,000 branches and
offices, and about 1,100 ATMs. IT plans to open 400 new branches in the coming
year. It offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries and affiliates in the areas of investment
banking, credit cards and asset management. Its total business was ` 4,402
billion as of June 30[9].
As of August 2010, the bank has 78 branches abroad and by the end of the year
2011 this number should climb to 90. In 2010, BOB opened a branch in
Auckland, New Zealand, and its tenth branch in the United Kingdom. The bank
also plans to open five branches in Africa. Besides branches, BOB plans to open
three outlets in the Persian Gulf region that will consist of ATMs with a couple of
people.
The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July
1908 in the princely state of Baroda, in Gujarat. The bank, along with 13 other
major commercial banks of India, was nationalized on 19 July 1969, by the
government of India[10]
4.4.2.2 Bank of India
Bank of India was founded on September 7, 1906 by a group of eminent
businessmen from Mumbai. In July 1969 Bank of India was nationalized along
with 13 other banks.
Beginning with a paid-up capital of `50 lakh and 50 employees, the Bank has
made a rapid growth over the years. It has evolved into a mighty institution with
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a strong national presence and sizable international operations. In business
volume, Bank of India occupies a premier position among the nationalized banks.
Presently, Bank of India has 2609 branches in India spread over all states/union
territories including 93 specialized branches. These branches are controlled
through 48 Zonal Offices.
Bank of India has several firsts to its credit. The Bank has been the first among
the nationalized banks to establish a fully computerized branch and ATM facility
at the Mahalaxmi Branch at Mumbai way back in 1989. It pioneered the
introduction of the Health Code System in 1982, for evaluating/ rating its credit
portfolio. Bank of India was the first Indian Bank to open a branch outside the
country, at London, in 1946, and also the first to open a branch in Europe, Paris
in 1974. The Bank has sizable presence abroad, with a network of 23 branches
(including three representative offices) at key banking and financial Centre’s viz.
London, New York, Paris, Tokyo, Hong-Kong, and Singapore[11]
4.4.2.3 Canara Bank
The late Shri Ammembal Subba Rao Pai, a philanthropist, established the Canara
Bank Hindu Permanent Fund in Mangalore, India, on 1 July 1906.[2] The bank
changed its name to Canara Bank Limited in 1910 when it incorporated.
In 1958, the Reserve Bank of India ordered Canara Bank to acquire G.
Raghumathmul Bank, in Hyderabad. This bank had been established in 1870, and
had converted to a limited company in 1925. At the time of the acquisition G.
Raghumathmul Bank had five branches.
The Government of India nationalized Canara Bank, along with 13other major
commercial banks of India, on 19 July 1969.In 1976, Canara Bank inaugurated its
1000th branch. In 1983, Canara Bank opened its first overseas office, a branch in
London. In 1985, Canara Bank acquired Lakshmi Commercial Bank in a rescue.
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In 1985, Canara Bank established a subsidiary in Hong Kong, Indo Hong Kong
International Finance Ltd. In 1996 Canara Bank became the first Indian Bank to
get ISO certification for “Total Branch Banking” for its Seshadripuram branch in
Bangalore. In 2008-09, Canara Bank opened its third foreign branch, this one in
Shanghai[12]
4.4.2.4 State Bank of India
State Bank of India is the largest state-owned banking and financial services
company in India. The bank traces its ancestry to British India, through the
Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it
the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged
into the other two presidency banks, Bank of Calcutta and Bank of Bombay to
form Imperial Bank of India, which in turn became State Bank of India. The
government of India nationalized the Imperial Bank of India in 1955, with the
Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India.
In 2008, the government took over the stake held by the Reserve Bank of India.
SBI provides a range of banking products through its vast network of branches in
India and overseas, including products aimed at non-resident Indians (NRIs).
The State Bank Group, with over 16,000 branches, has the largest banking
branch network in India. It’s also considered as the best bank even abroad,
having around 130 branches overseas [including 1 ADB]and one of the largest
financial institution in the world. With an asset base of $352 billion and $285
billion in deposits, it is a regional banking behemoth. It has a market share
among Indian commercial banks of about 20% in deposits and advances, and SBI
accounts for almost one-fifth of the nation's loans.
The State Bank of India is the 29th most reputed company in the world according
to Forbes [13] Also SBI is the only bank to get featured in the coveted "top 10
brands of India" list in an annual survey conducted by Brand Finance and The
Economic Times in 2010[13].
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4.4.2.5 Union Bank of India
Union Bank of India (UBI) is one of India's largest state-owned banks (the
government owns 55.43% of its share capital), is listed on the Forbes 2000. It
has assets of USD 13.45 billion and all the bank's branches have been networked
with its 1135 ATMs. Their online Telebanking facilities are available to all its
Core Banking Customers - individual as well as corporate. It has representative
offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of
China, and a branch in Hong Kong.
Because of its acronym UBI, the public sometimes confuses it with United Bank
of India.
UBI was registered on 11 November 1919 as a limited company in Mumbai. It
was inaugurated by Mahatma Gandhi. In 1947 UBI had only 4 branches - 3 in
Mumbai and 1 in Saurashtra, all concentrated in key trade centres. In1969 the
Government nationalized UBI. At the time of its nationalization, UBI had 240
branches in 28 states. After nationalization, UBI merged in Belgaum Bank, a
private sector bank established in 1930. In 1985 UBI merged in Miraj State Bank,
established in 1929. In 1999 UBI acquired Sikkim Bank in a rescue at the request
of the Reserve Bank of India after the discovery of extensive irregularities at the
non-scheduled bank. Sikkim Bank had eight branches located in the North-east,
which was attractive to UBI. In 2007 UBI opened representative offices in Abu
Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of China. In 2008
UBI opened a branch in Hong Kong, its first branch outside India. In Dec 2009
UBI opened a representative office in Sydney[14]
4.4.3 Capital Goods Industry
The development of a strong and vibrant engineering and capital goods sector
has been at the core of the industrial strategy in India since the planning process
was initiated in 1951. The emphasis that this sector received was primarily
influenced by the erstwhile Soviet Union model, which had made impressive
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progress by rapid state-led industrialization through the development of the core
engineering and capital goods sector. The ‘Mahalanobis Model’, which was a
‘supply oriented’ model with a basic emphasis on increasing the rate of capital
accumulation and saving, gave the engineering and capital goods, sector a central
place. Super imposed over this were the other objectives of balanced regional
development, prevention of the concentration of economic power and the
development of small-scale industries. One of the primary objectives was import
substitution, which was pursued as a priority. Owing to these historical factors,
today India has a strong engineering and capital goods base. The Indian capital
goods sector is characterized by a large width of products (almost all major
capital goods are domestically manufactured) – a legacy of the import
substitution policy. Even nations with advanced capital goods sectors do not
produce the entire range of capital goods, but instead focus on segments, or sub
segments. The range of machinery produced in India includes heavy electrical
machinery, textile machinery, machine tools, earthmoving and construction
equipment including mining equipment, road construction equipment, material
handling equipment, oil & gas equipment, sugar machinery, food processing and
packaging machinery, railway equipment, metallurgical equipment, cement
machinery, rubber machinery, process plants & equipment, paper & pulp
machinery, printing machinery, dairy machinery, industrial refrigeration,
industrial furnaces etc. However, the raw materials used are largely domestic in
origin and in many instances; the quality of domestic raw materials is not up to
the international standards in terms of dimensional tolerances and metallurgical
properties, which in turn affects the quality of the final product[15]
4.4.3.1 Elecon Engg. Ltd
Soon after India’s independence, Elecon starting making its presence felt in
industrial scenario in most productive and enriching manner. This process has
its root as far back as 1951.
A small beginning that was destined to have a glorious present and spectacular
future was made in 1951 in Bombay by a dynamic visionary late Shri Ishwarbhai
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B Patel. A small firm indigenously manufacturing conveying equipment’s started
spreading its wings in the area so far unexplored, resulting in valuable savings in
foreign exchange outflow. With obvious increase in business operations, it was
converted into a Private Limited Company on 11th January 1960.
On formation of a separate Gujarat State in May 1960, with a view to contribute
towards the development of home-land Gujarat, Elecon shifted its base to
Vallabh Vidaynagar, and became a Public Limited Company soon after.
Elecon has played a pioneering role by way being first in design, manufacturing
and supplying many of the above products in India, and thereby adhering to the
motto of “ALWAYS A STEP AHEAD IN TECHNOLOGY”[16]
The company has gone a long way from a moderate beginning at Goregaon in
Bombay, in the early fifties to a sprawling workshop area spanning over 1,17,051
sq. mtr. The present manufacturing facilities are equipped with latest
computerized machine tools, and quality control equipment.
After dawn of its Silver Jubilee Year in 1976, Elecon set up a separate Gear
Division, having an area, spread 1,73,098 sq. mtr., equipped with state of the art
manufacturing infrastructure. The Gear Division today, provides a total solution
to industries for power transmission equipments by designing, supplying and
servicing products like – Worm Gears, Helical Gears, Sprial Bevel Helical Gears
and different types of Couplings.
A team of experts is geared up to serve customers for Specialized Gear
requirement for various applications like Steel Rolling Mills, Marine application
for Coast Guard, Space Applications etc. This Division has recently specialized in
developing speed increasing application for Windmills as well.
Elecon has also set up an Alternate Energy Division in the year 1995 for
manufacturing and supply of Wind Turbine Generators – a non – conventional
source of producing energy. Under the technical know-how obtained from a
Belgium Company[16]
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4.4.3.2 Gammon India Ltd
Mr. John C. Gammon. The founder of Gammon India Limited. A Civil Engineer
who can more aptly be called 'The Sculptor of Concrete in India'. A man who
preached and practiced order and functional expression in structures - the
enduring values that helped build the Gammon edifice.
Gammon India is not only the largest civil engineering construction company in
India, but can lay claim for the largest number of bridges built in the whole of
Commonwealth. With over seventy years of tradition in the field of construction.
Gammon is a name that is inextricably woven into the fabric of India.
As builders to the nation, Gammon has made concrete contributions by designing
and constructing bridges, ports, harbours, thermal and nuclear power stations,
dams, high-rise structures, chemical and fertilizer complexes environmental
structures, cross country water, oil and gas pipelines. Gammon has accomplished
this by fusing tremendous engineering knowledge with innovative skills,
harnessing men and materials to build structures.
Structures that stand out as living testimonies to the victory of man over nature.
Structures conceived and built by minds in constant search of new methods,
ideas, applications and solutions. Because Gammon believes that today's
solutions will not be adequate tomorrow.
This insatiable quest has led Gammon to pioneer Reinforced and prestressed
Concrete, Long span bridges, under water concreting using the Concrete process,
thin shell structures, Non-Shrinking concrete, Aluminium trusses for launching
precast, prestressed beams and many more.
These resounding achievements have won Gammon the status of an R&D
Institution - an unequalled honour for an unmatched Performance.
The planners, designers and construction specialists at Gammon have proved
their competence and innovative skills here and abroad. And driving them to
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seek, to build and not to yield, is a team of professionals at the Head Office led by
the Chairman & Managing Director, Mr. Abhijit Rajan[17]
4.4.3.3 Larsen & Toubro Ltd:
Larsen & Toubro Limited is the biggest legacy of two Danish Engineers, who built
a world-class organization that is professionally managed and a leader in India's
engineering and construction industry. It was the business of cement that
brought the young Mr. Henning Holck- Larsen and Mr. S. K. Toubro into India.
They arrived on Indian shores as representatives of the Danish engineering firm
F L Smidth& Co in connection with the merger of cement companies that later
grouped into the Associated Cement Companies.
Together, Mr.Holck-Larsen and Mr.Toubro, founded the partnership firm of L&T
in 1938, which was converted into a limited company on February 7, 1946.
Today, this has metamorphosed into one of India's biggest success stories. The
company has grown from humble origins to a large conglomerate spanning
engineering and construction.
ECC was conceived as Engineering Construction Corporation Limited in April
1944 and was incorporated as wholly owned subsidiary of Larsen & Toubro
Limited. L&T's founders Mr.Holck - Larsen and Mr. Toubro laid the foundation
for ECC. It has today emerged as India's leading construction organization[18]
4.4.3.4 Reliance Industrial Infra Ltd:
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's
largest private sector enterprise, with businesses in the energy and materials
value chain. Group's annual revenues are in excess of US$ 44 billion. The flagship
company, Reliance Industries Limited, is a Fortune Global 500 company and is
the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and
growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a
strategy of backward vertical integration - in polyester, fibre intermediates,
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plastics, petrochemicals, petroleum refining and oil and gas exploration and
production - to be fully integrated along the materials and energy value chain.
The Group's activities span exploration and production of oil and gas, petroleum
refining and marketing, petrochemicals (polyester, fibre intermediates, plastics
and chemicals), textiles, retail and special economic zones.
Reliance enjoys global leadership in its businesses, being the largest polyester
yarn and fibre producer in the world and among the top five to ten producers in
the world in major petrochemical products. Major Group Companies are Reliance
Industries Limited (including main subsidiary Reliance Retail Limited) and
Reliance Industrial Infrastructure Limited[19]
4.4.3.5 Walchandnagar Ltd:
Walchandnagar Industries Ltd is an ISO-9001 -2000 certified, multi product,
multi discipline, high-tech, heavy engineering, Projects Execution Company.
On 5th April 1919, the ship “SS Loyalty” sailed on its maiden voyage. A crucial
step when sea routes were controlled by the British. 5th April is celebrated as
“National Maritime Day”. Seth Walchand recognizing the need of the country of
infrastructure for ship building, established a shipyard in Vishakhapatnam in
1948. Company’s 1st ship “Jal-Usha” was commissioned by Pandit Jawaharlal
Nehru. Later on the shipyard was Nationalized by Govt. of India. Successfully
transformed the barren, rock-strewn, practically uncultivated land into lush
green sugar cane fields near Kalamb village and organized sugar cane farming.
This led to the foundation of Walchandnagar Industries Ltd in 1934 with a sugar
factory to process sugar cane. The township of WALCHANDNAGAR was built
around this sugar factory.
WIL manufactures heavy engineering products and machinery, and provides EPC
and turnkey project services. For the Energy industry, WIL manufactures Boilers
and machinery for Thermal power plants. It also provides turnkey services for
setting up thermal and biomass fuelled power plants. WIL also manufactures
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components for the nuclear power industry. In the Aerospace sector, WIL
supplies flight motor casings, nozzles, heat shields, etc for various stages of space
launch vehicles. For the Defence industry, WIL supplies titanium alloy and
specialized metals products, including mobile bridges, missile casings, missile
launchers, etc. It builds machinery for cement plants. WIL also provides offshore
platforms, drilling rigs, etc for Oil and Gas exploration and extraction.
WIL builds high speed transmission and propulsion systems for industrial and
marine applications. It also supplies gearboxes for hydro-electric power projects.
It builds high-precision temperature and pressure gauges used in a variety of
industrial applications. It supplies software packages for engineering and
process industries[20]
4.4.4 FMCG Industry:
Products which have a quick turnover, and relatively low cost are known as Fast
Moving Consumer Goods (FMCG). FMCG products are those that get replaced
within a year. Examples of FMCG generally include a wide range of frequently
purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning
products, shaving products and detergents, as well as other non-durables such as
glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also
include pharmaceuticals, consumer electronics, packaged food products, soft
drinks, tissue paper, and chocolate bars.
A subset of FMCG’s is Fast Moving Consumer Electronics which include
innovative electronic products such as mobile phones, MP3 players, digital
cameras, GPS Systems and Laptops. These are replaced more frequently than
other electronic products.
White goods in FMCG refer to household electronic items such as Refrigerators,
T.Vs, Music Systems, etc.
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In 2005, the ` 48,000-crore FMCG segment was one of the fast growing
industries in India. According to the AC Nielsen India study, the industry grew
5.3% in value between 2004 and 2005.
The Indian FMCG sector is the fourth largest in the economy and has a market
size of US$13.1 billion. Well-established distribution networks, as well as intense
competition between the organized and unorganised segments are the
characteristics of this sector. FMCG in India has a strong and competitive MNC
presence across the entire value chain. It has been predicted that the FMCG
market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The
middle class and the rural segments of the Indian population are the most
promising market for FMCG, and give brand makers the opportunity to convert
them to branded products. Most of the product categories like jams, toothpaste,
skin care, shampoos, etc. in India, have low per capita consumption as well as
low penetration level, but the potential for growth is huge. The Indian Economy
is surging ahead by leaps and bounds, keeping pace with rapid urbanization,
increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as
well. According to the study conducted by AC Nielsen, 62 of the top 100 brands
are owned by MNCs, and the balance by Indian companies. Fifteen companies
own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at
number three followed by Thums Up. Britannia takes the fifth place, followed by
Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft
drink and cigarette companies have always shied away from revealing. Personal
care, cigarettes, and soft drinks are the three biggest categories in FMCG.
Between them, they account for 35 of the top 100 brands.
Benefits:
Low operational costs.
Presence of established distribution networks in both urban and rural
areas.
Presence of well-known brands in FMCG sector.
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Limitations:
Lower scope of investing in technology and achieving economies of scale,
especially in small sectors.
Low exports levels.
"Me-tooʺ products, which illegally mimic the labels of the established
brands. These products narrow the scope of FMCG products in rural and
semi-urban market.
Opportunities:
Untapped rural market.
Rising income levels i.e. increase in purchasing power of consumers.
Large domestic market- a population of over one billion.
Export potential.
High consumer goods spending.
Threats:
Removal of import restrictions resulting in replacing of domestic brands.
Slowdown in rural demand.
Tax and regulatory structure[21]
4.4.4.1 Colgate Palmolive India Ltd:
1806, William Colgate, himself a soap and candle maker, opened up a starch,
soap and candle factory on Dutch Street in New York City under the name of
"William Colgate & Company". In the 1840s, the firm began selling individual
cakes of soap in uniform weights. In 1857, William Colgate died and the company
was reorganized as "Colgate & Company" under the management of Samuel
Colgate, his son. In 1872, Colgate introduced Cashmere Bouquet, a perfumed
soap. In 1873, the firm introduced its first toothpaste, aromatic toothpaste sold
in jars. His company sold the first toothpaste in a tube, Colgate Ribbon Dental
Cream, in 1896. In 1896, Colgate hired Martin Ittner and under his direction
founded one of the first applied research labs. By 1908 they initiated mass selling
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of toothpaste in tubes. His other son, James Boorman Colgate, was a primary
trustee of Colgate University (formerly Madison University).
In Milwaukee, Wisconsin, the "B.J. Johnson Company" was making a soap entirely
of palm and olive oil, the formula of which was developed by B.J. Johnson in
1898. The soap was popular enough to rename their company after it -
"Palmolive". At the turn of the century Palmolive, which contained both palm and
olive oils, was the world's best-selling soap, and extensive advertising included
The Palmolive Hour, a weekly radio concert program which began in 1927 and
Palmolive Beauty Box Theatre which ran from 1934 to 1937. A Kansas-based
soap manufacturer known as the "Peet Brothers" merged with Palmolive to
become Palmolive-Peet. In 1928, Palmolive-Peet bought the Colgate Company to
create the Colgate-Palmolive-Peet Company. In 1953 "Peet" was dropped from
the title, leaving only "Colgate-Palmolive Company", the current name.
Colgate-Palmolive has long been in fierce competition with Procter & Gamble,
the world's largest soap and detergent maker. P&G introduced its Tide laundry
detergent shortly after World War II, and thousands of consumers turned from
Colgate's soaps to the new product. Colgate lost its number one place in the
toothpaste market when P&G started putting fluoride in its toothpaste. In the
beginning of television, "Colgate-Palmolive" wished to compete with Procter
&Gamble as a sponsor of soap operas. Although the company sponsored many
shows in part, they fully sponsored the serial The Doctors.
George Henry Lesch was president, CEO, and chairman of the board of Colgate-
Palmolive in the 1960s and 1970s, during that time transformed it into a modern
company with major restructuring.
In 2005, Colgate sold the under-performing brands Fab, Dynamo, Arctic Power,
ABC, Cold Power and Fresh Start, as well as the license of the Ajax brand for
laundry detergents in the U.S., Canada and Puerto Rico, to Phoenix Brands, LLC as
part of their plan to focus on their higher margin oral, personal, and pet care
products.
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In 2006, Colgate-Palmolive announced the intended acquisition of Tom's of
Maine, a leading maker of natural toothpaste, for US $100 million. Tom's of
Maine was founded by Tom Chappell in 1970.
Today, Colgate has numerous subsidiary organisations spanning 200 countries,
but it is publicly listed in only two, the United States and India.
In June 2007, counterfeit Colgate toothpaste imported from China was found to
be contaminated with diethylene glycol, and several people in eastern U.S.
reported experiencing headaches and pain after using the product. The tainted
products can be identified by the claim to be manufactured in South Africa by
Colgate-Palmolive South Africa LTD, they are 5oz/100ml tubes (a size which
Colgate does not sell in the United States) and the tubes/packaging contain
numerous misspellings on their labels. Colgate-Palmolive claims that they do not
import their products from South Africa into the United States or Canada and
that DEG is never and was never used in any of their products anywhere in the
world. The counterfeit products were found in smaller "mom and pop" stores,
dollar stores and discount stores in at least four states[22]
4.4.4.2 Godrej Consumer Product Ltd:
Godrej Consumers Products or Godrej Consumer Products Ltd. (GCPL) is one of
the leading companies in the Indian FMCG market. More than 350 million people
all over India use Godrej products, while there are 30 other counties where
Godrej CP is immensely popular. Godrej Group is the growing company in the
field of personal, hair, household and fabric care. Presently some 950 people are
employed in GCPL. Apart from offering top-notch consumers products, Godrej
Group is also renowned for providing high-tech engineering solutions to the
world.
Godrej Consumers Products has its manufacturing units at Guwahati in Assam,
Baddi in Himachal Pradesh and Malanpur in Madhya Pradesh, and all of its
factories have been granted ISO certifications.
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Godrej Consumers Products is a wing of the renowned Godrej Group which was
initiated in the year 1897 by Ardeshir and Pirojsha Godrej. Initially, the group
was a locks manufacturing company, but now it is one of the largest diversified
commercial firms in India and the most reliable brand. The company also takes
pride for being the pioneer to manufacture soaps from vegetable oil. Highly
appreciated for its product quality, first-class after-sales service, Godrej
Consumers Products is truly the leader in its category. Employing some 18,000
employees, the Godrej Group features a diversified portfolio. Annual sales of the
group is more than $1 billion and it includes wide array of industries ranging
from machine tools, furniture, appliances, precision equipment to healthcare,
office equipment, interior solutions, food-processing, etc. In addition, Godrej
Group also has proven track record in industries such as, construction, security,
information technology as well as materials handling and industrial storage
solutions, Medical Diagnostics and Aerospace Equipment, Chicken and Agri-
products, Engineering Workstations, Mosquito Repellents, Car perfumes, Edible
Oils and Chemical, Stackers, tyre handlers, Sweeping machines, access
equipment’s etc. It is also recognized for producing world-class Typewriters and
Word processors, Rocket Launchers, security Systems and Safes[23]
4.4.4.3 Hindustan Unilever Ltd:
Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods
(FMCG) company. HLL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &
Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan,
Knorr-Annapurna, Kwality Wall's are household names across the country and
span a host of categories, such as soaps, detergents, personal products, tea,
coffee, branded staples, ice cream and culinary products. These products are
manufactured over 40 factories across India and the associated operations
involve over 2,000 suppliers and associates. Hindustan Lever Limited's
distribution network comprises about 4,000 redistribution stockists, covering
6.3 million retail outlets reaching the entire urban population, and about 250
million rural consumers. HLL is also one of India's largest exporters. It has been
recognised as a Golden Super Star Trading House by the Government of India.
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Presently, HLL has over 16,000 employees including over 1,200 managers. Its
mission is to "add vitality to life." The Anglo-Dutch company Unilever owns a
majority stake in Hindustan Lever Limited.
In the late 19th and early 20th century Unilever used to export its products to
India. This process began in 1888 with the export of Sunlight soap, which was
followed by Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim
soon after. In 1931, Unilever set up its first Indian subsidiary, Hindustan
Vanaspati Manufacturing Company, followed by Lever Brothers India Limited
(1933) and United Traders Limited (1935). The three companies were merged in
November 1956 and the new entity that came into existence after merger was
called as Hindustan Lever Limited. HLL offered 10% of its equity to the Indian
public and it was the first among the foreign subsidiaries to do so. Currently,
Unilever holds 51.55% equity in the company while the rest of the shareholding
is distributed among about 380,000 individual shareholders and financial
institutions[24]
4.4.4.4 ITC Ltd:
ITC Limited has headquartered in Kolkata, India. Its turnover is $6 billion and a
market capitalization of over $30 Billion. The company has its registered office in
Kolkata. It started off as the Imperial Tobacco Company, and shares ancestry
with Imperial Tobacco of the United Kingdom, but it is now fully independent,
and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C.
Limited in 1974.
The company is currently headed by Yogesh Chander Deveshwar. It employs
over 26,000 people at more than 60 locations across India and is listed on Forbes
2000. ITC Limited completed 100 years on 24 August 2010.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information
Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and
other FMCG products. While ITC is an outstanding market leader in its traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is
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rapidly gaining market share even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care and Stationery.
ITC's aspiration to be an exemplar in sustainability practices is manifest in its
status as the only company in the world of its size and diversity to be 'carbon
positive', 'water positive' and 'solid waste recycling positive.' In addition, ITC's
businesses have created sustainable livelihoods for more than 5 million people, a
majority of whom represent the poorest in rural India[25]
4.4.4.5 Nestle Ltd:
Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India
manufactures a variety of food products such as infant food, milk products,
beverages, prepared dishes & cooking aids, and chocolates & confectionary.
Some of the famous brands of Nestle are NESCAFE, MAGGI, MILKYBAR, MILO,
KIT KAT, BAR-ONE, MILKMAID, NESTEA, NESTLE Milk, NESTLE SLIM Milk,
NESTLE Fresh 'n' Natural Dahi and NESTLE Jeera Raita.
Nestle was founded in 1867 in Geneva, Switzerland by Henri Nestle. Nestle's first
product was "Farine Lactee Nestle", an infant cereal. In 1905, Nestle acquired the
Anglo-Swiss Condensed Milk Company. Nestle's relationship with India started
1912, when it began trading as The Nestle Anglo-Swiss Condensed Milk
Company (Export) Limited, importing and selling finished products in the Indian
market.
After independence, in response to the then economic policies, which
emphasized local production, Nestle formed a company in India, namely Nestle
India Ltd, and set up its first factory in 1961 at Moga, Punjab, where the
Government wanted Nestle to develop the milk economy. In Moga, Nestle
educated and advised farmers regarding basic farming and animal husbandry
practices such as increasing the milk yield of the cows through improved dairy
farming methods, irrigation, scientific crop management practices etc. Nestle set
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up milk collection centres that ensured prompt collection and paid fair prices.
Thus, Nestle transformed Moga into a prosperous and vibrant milk district.
In 1967, Nestle set up its next factory at Choladi (Tamil Nadu) as a pilot plant to
process the tea grown in the area into soluble tea. Nestle opened its third factor
in Nanjangud (Karnataka) in 1989. Thereafter, Nestle India opened factories in
Samalkha (Haryana), in 1993 and two in Goa at Ponda, and Bicholim in 1995 and
1997 respectively. Nestle India is now putting up the 7th factory at Pant Nagar in
Uttarakhand.
Today, Nestle is the world's largest and most diversified food company. It has
around 2,50,000 employees worldwide, operated 500 factories in approximately
100 countries and offers over 8,000 products to millions of consumers
universally[26]
4.4.5 Healthcare Industry:
Health care facilities and personnel increased substantially between the early
1950s and early 1980s, but because of fast population growth, the number of
licensed medical practitioners per 10,000 individuals had fallen by the late
1980s to three per 10,000 from the 1981 level of four per 10,000. In 1991 there
were approximately ten hospital beds per 10,000 individuals.
Primary health centers are the cornerstone of the rural health care system. By
1991, India had about 22,400 primary health centers, 11,200 hospitals, and
27,400 dispensaries. These facilities are part of a tiered health care system that
funnels more difficult cases into urban hospitals while attempting to provide
routine medical care to the vast majority in the countryside. Primary health
centres and sub enters rely on trained paramedics to meet most of their needs.
The main problems affecting the success of primary health centres are the
predominance of clinical and curative concerns over the intended emphasis on
preventive work and the reluctance of staff to work in rural areas. In addition,
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the integration of health services with family planning programs often causes the
local population to perceive the primary health centres as hostile to their
traditional preference for large families. Therefore, primary health centres often
play an adversarial role in local efforts to implement national health policies.
According to data provided in 1989 by the Ministry of Health and Family
Welfare, the total number of civilian hospitals for all states and union territories
combined was 10,157. In 1991 there were a total of 811,000 hospital and health
care facilities beds. The geographical distribution of hospitals varied according to
local socioeconomic conditions. In India's most populous state, Uttar Pradesh,
with a 1991 population of more than 139 million, there were 735 hospitals as of
1990. In Kerala, with a 1991 population of 29 million occupying an area only
one-seventh the size of Uttar Pradesh, there were 2,053 hospitals. In light of the
central government's goal of health care for all by 2000, the uneven distribution
of hospitals needs to be re-examined. Private studies of India's total number of
hospitals in the early 1990s were more conservative than official Indian data,
estimating that in 1992 there were 7,300 hospitals. Of this total, nearly 4,000
were owned and managed by central, state, or local governments.
Another 2,000, owned and managed by charitable trusts, received partial
support from the government, and the remaining 1,300 hospitals, many of which
were relatively small facilities, were owned and managed by the private sector.
The use of state-of-the-art medical equipment, often imported from Western
countries, was primarily limited to urban centres in the early 1990s. A network
of regional cancer diagnostic and treatment facilities was being established in the
early 1990s in major hospitals that were part of government medical colleges. By
1992 twenty-two such centres were in operation. Most of the 1,300 private
hospitals lacked sophisticated medical facilities, although in 1992 approximately
12 percent possessed state-of-the-art equipment for diagnosis and treatment of
all major diseases, including cancer. The fast pace of development of the private
medical sector and the burgeoning middle class in the 1990s have led to the
emergence of the new concept in India of establishing hospitals and health care
facilities on a for-profit basis.
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By the late 1980s, there were approximately 128 medical colleges--roughly three
times more than in 1950. These medical colleges in 1987 accepted a combined
annual class of 14,166 students. Data for 1987 show that there were 320,000
registered medical practitioners and 219,300 registered nurses. Various studies
have shown that in both urban and rural areas people preferred to pay and seek
the more sophisticated services provided by private physicians rather than use
free treatment at public health centres[27]
Indigenous or traditional medical practitioners continue to practice throughout
the country. The two main forms of traditional medicine practiced are the
ayurvedic (meaning science of life) system, which deals with causes, symptoms,
diagnoses, and treatment based on all aspects of well-being (mental, physical,
and spiritual), and the unani(so-called Galenic medicine) herbal medical practice.
A vaidya is a practitioner of the ayurvedic tradition, and a hakim (Arabic for a
Muslim physician) is a practitioner of the unanitradition. These professions are
frequently hereditary. A variety of institutions offer training in indigenous
medical practice. Only in the late 1970s did official health policy refer to any
form of integration between Western-oriented medical personnel and
indigenous medical practitioners. In the early 1990s, there were ninety-eight
ayurvedic colleges and seventeen unani colleges operating in both the
governmental and nongovernmental sectors. Healthcare in India - Data
1995Courtesy Library of Congress.
Medical Tourism:
India is quickly becoming a hub for medical tourists seeking quality healthcare at
an affordable cost. Nearly 4,50,000 foreigners sought medical treatment in India
last year with Singapore not too far behind and Thailand in the lead with over a
million medical tourists. As the Indian healthcare delivery system strives to
match international standards the Indian healthcare industry will be able to tap
into a substantial portion of the medical tourism market. Already 13 Indian
hospitals have been accredited by the Joint Commission International (JCI).
Accreditation and compliance with quality expectations are important since they
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provide tourists with confidence that the services are meeting international
standards. Reduced costs, access to the latest medical technology, growing
compliance to international quality standards and ease of communication all
work towards India’s advantage.
It is not uncommon to see citizens of other nations seek high quality medical care
in the US over the past several decades; however in recent times the pattern
seems to be reversing. As healthcare costs in the US are rising, price sensitivity is
soaring and people are looking at medical value travel as a viable alternative
option. In the past the growth potential of the medical travel industry in India
has been hindered by capacity and infrastructure constraints but that situation is
now changing with strong economic progress in India as well as in other
developing nations. With more and more hospitals receiving JCI accreditations
outside the US, concerns on safety and quality of care are becoming less of an
issue for those choosing to travel for medical treatment at an affordable cost. The
combined cost of travel and treatment in India is still a fraction of the amount
spent on just medical treatment alone in western countries.
In order to attract foreign patients many Indian hospitals are promoting their
international quality of healthcare delivery by turning to international
accreditation agencies to standardize their protocols and obtain the required
approvals on safety and quality of care.
Rate of growth:
India has approximately 600,000 allopathic doctors registered to practice
medicine. This number however, is higher than the actual number practicing
because it includes doctors who have immigrated to other countries as well as
doctors who have died. India licenses 18,000 new doctors a year.
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4.4.5.1 Apollo Hospital Ltd:
Apollo Hospitals is the largest healthcare group in Asia. Apollo group owns and
manages 41 hospitals in and around India and has a total capacity of 7000 beds.
Apollo Hospitals was founded by Dr.Prathap C Reddy in 1979 and is the first
group of hospitals that pioneered the concept of corporate healthcare delivery in
India. Apollo Hospitals Enterprise Limited (AHEL), the flagship company of the
group, is a listed Company on the Bombay Stock Exchange.
Today, AHEL is the leading private sector healthcare provider in India and owns
and manages a network of specialty hospitals and clinics. The company also
operates a chain of pharmacy retail outlets across the country and provides
consultancy services for commissioning and managing hospitals. The
consultancy division of Apollo Hospitals offers project and operations
management consultancy services to clients that vary from conceptualization to
commissioning of a wide range of healthcare models[28]
4.4.5.2 Cipla Ltd:
Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. The
fire of nationalism was kindled in him when he was 15 as he witnessed a wanton
act of colonial high handedness. The fire was to blaze within him right through
his life.
In college, he found Chemistry fascinating. He set sail for Europe in 1924 and got
admission in Berlin University as a research student of "The Technology of
Barium Compounds". He earned his doctorate three years later.
In October 1927, during the long voyage from Europe to India, he drew up great
plans for the future. He wrote: "No modern industry could have been possible
without the help of such centres of research work where men are engaged in
compelling nature to yield her secrets to the ruthless search of an investigating
chemist." His plan found many supporters but no financiers. However, Dr
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Hamied was determined to being "a small wheel, no matter how small, than is a
cog in a big wheel” [29]
4.4.5.3 Dr. Reddy’s Laboratories Ltd:
Dr. Reddy's Laboratories Ltd. is one of India's leading pharmaceutical companies
with global ambitions. The company has departed from the Indian
pharmaceutical market mainstream of copying patented drugs to pursue the
development of its own--patentable--molecules. As such, the company has
already achieved success with a number of promising anti-diabetic molecules. At
the same time, Dr. Reddy's is pursuing a share of the lucrative, but highly
competitive, U.S. generics market, including the higher-margin "branded generic"
market. Dr. Reddy's operates through several strategic business units, including:
Branded Finished Dosages; Generic Finished Dosages; Bulk Actives; Custom
Chemicals; Biotechnology; Diagnostics; Critical Care; and Discovery Research. A
leader in its domestic market, the company is also active on the international
scene, which accounted for 64 percent of the company's total sales of R`s 18
billion ($392 million) in 2003. North America contributed 32 percent of sales,
while Russia added 28 percent. The rest of the company's international revenues
were generated through the Asian, African, and South American markets. Dr.
Reddy's is led by founder and Chairman Dr.Anji Reddy and CEO (and Reddy's
son-in-law) G.V. Prasad. Dr. Reddy's Laboratories was the first Asian
pharmaceutical company, excluding Japan, to list on the New York Stock
Exchange.[30]
4.4.5.4 Lupin Ltd:
Lupin Chemicals Ltd (LCL) was promoted by Lupin Laboratories Ltd.
Thecompany was incorporated on 31.03.83 as a Private Ltd company and
subsequently converted into a Public Ltd company with effect from 23.12.91. The
company does not have any subsidiary.
The company is setting up a project for the manufacture of 93 tpa of Rifampicin,
an essential anti-tuberculosis, anti-leprotic, lifesaving drug from a very basic
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stage of fermentation. It is an import substitute product. To finance the project
the company is coming out with a PCD issue aggregating to `45.6 crores.
Lupin Ltd has successfully introduced in 2002. Akurit, a revolutionary simplified
therapy as per WHO's guidelines for treatment of tuberculosis. Crisil has
upgraded the rating assigned to Lupin's non-convertible debentures from D to
BB+. Lupin Ltd has enhanced its capacity of manufacturing various products at
its formulations plants at Aurangabad and Manideep in Madhya Pradesh[31]
4.4.5.5 Ranbaxy Laboratories Ltd:
Ranbaxy Laboratories Ltd. is the largest pharmaceutical company in India, and
one of the world's top 100 pharmaceutical companies. Long a specialist in the
preparation of generic drugs, Ranbaxy is also one of the world's top 10 in that
pharmaceutical category as well. Yet, with India's agreement to apply
international patent law at the beginning of 2005, Ranbaxy has begun converting
itself into a full-fledged research-based pharmaceutical company. A major part of
this effort has been the establishment of the company's own research and
development centre, which has enabled the company to begin to enter the new
chemical entities (NCE) and novel drug delivery systems (NDDS) markets. In the
mid-2000s, the company had a number of NCEs in progress and had already
launched its first NDDS product, a single daily dosage formulation of
ciprofloxacin. Ranbaxy is a truly global operation, producing its pharmaceutical
preparations in manufacturing facilities in seven countries, supported by sales
and marketing subsidiaries in 44 countries, reaching more than 100 countries
throughout the world. The United States, which alone accounts for nearly half of
all pharmaceutical sales in the world, is the company's largest international
market, representing more than 40 percent of group sales. In Europe, the
company's purchase of RPG (Aventis) S.A. makes it the largest generics producer
in that market. The company is also a leading generics producer in the United
Kingdom and Germany and elsewhere in Europe. European sales added 16
percent to the company's sales in 2004. Ranbaxy's other major markets include
Brazil, Russia, and China, as well as India, which together added 26 percent to the
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group's sales. Ranbaxy posted revenues of $1.18 billion in 2004. The company,
which remains controlled and led by the founding Singh family, is listed on the
National Stock Exchange of India in Mumbai[32]
4.4.6 Information Technology Industry:
When the terminology 'information technology' is used, mistakenly it describes
the entire industry. Information technology basically refers to the employment of
computer hardware and software applications to manage data. Departments,
such as Management Information Services (MIS), handle the responsibility for
the storage, protection, processing, transmission and retrieval of the information
as required.
Information technology, while stirring thoughts and visions of networks, the
Internet, server rooms, racks of switches and routers and advanced terms
including VoIP, TCP/IP addressing, security and more, the 'technology' doesn't
necessarily refer only to computer related issues. Any medium or channel that
stores and processes information enters the category of information technology.
The brain is an information processor, working to process and manage
information that controls our every movement, body functions and habits.
Whichever procedure or attempt to communicate, store and manage information
as well as utilize and administer the data will fall under the classification.
The back story of information technology precedes the invention of the
computer. The abacus, used by Asians, Egyptians, Romans, and the Greek can be
termed a source of information technology. Calculators, the first mechanical one
built by German polymath Wilhelm Schickard, or the slide rule, developed in
1622 by William Oughtred, also comes under the heading of information
technology. Another example would be punch card machines, expanded upon by
IBM in the early to mid 1900's, qualifies the term information technology.
As time progress along with the advances of inventions and applied knowledge,
computing took shape and became useful in a variety of ways other than
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calculations. Computer science became an academic specialty, creating computer
science departments and classes. As these classes took shape, separate branches
of computer science became distinct areas of study. Today, Information
Technology departments use computers, data centres, servers, database
management system, specialized software applications and more, managed by
system and database administrators, an Information Technology Manager and
other department heads, including a Chief Information Officer (CIO). Even
though information technology has a long reach into history, only recently has it
been associated with the use of computers[33]
4.4.6.1 Financial Technologies Ltd:
Financial Technologies (India) (FTI) is a growing India-based operator of
securities and derivatives exchanges and developer of electronic trading
platforms, most in its home country but recently expanding into Asia, the Middle
East and Africa. FTI also owns several companies that provide data, electronic-
platform and digital transaction services to a range of Indian financial markets
and recently posted increased revenue and profit figures. The company plans to
launch three new international trading exchanges, based in Singapore, Bahrain
and Mauritius, in mid-to-late 2010.
FTI was founded as an exchange-technology developer in Bombay (now
Mumbai) in 1995 and first listed on the Bombay Stock Exchange in January 1999.
Since then it has grown rapidly through expansion and acquisition via its
exchanges in India and abroad plus its five Indian trading- and exchange-
technology ventures. Its best-known trading-technology products include the
broker-based Open Dealer Integrated Network (ODIN), internet trading platform
FT Engines and forex-based trading product FX Direct. FTI has since grown to a
market value of US$1.25 billion at July 31, 2009, although this figure has fallen
significantly from US$1.84 billion at March 31, 2008[34].
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4.4.6.2 HCL Technologies Ltd:
Shiv Nadar is the founder of HCL. He founded HCL in 1976 in a Delhi "barsaati".
In 1978, HCL developed the first indigenous micro-computer at the same time as
Apple and 3 years before IBM's PC. In 1980, HCL introduced bit sliced, 16-bit
processor based micro-computer. In 1983, HCL Indigenously developed an
RDBMS, a Networking OS and Client Server architecture, at the same time as
global IT peers. In 1986, HCL became the largest IT Company in India. In 1988,
HCL introduced fine grained multi-processor Unix-3 years ahead of "Sun" and
"HP". In 1991, HCL entered into a joint venture Hewlett Packard and HCL-
Hewlett Packard Ltd. was formed. The joint developed multi-processor UNIX for
HP and heralded HCL's entry into contract R&D. In 1997, HCL Info systems were
formed. In the same year HCL ventured into software services. In 1999, HCL
Technologies Ltd issued an IPO and became a public listed company. In 2001,
HCL BPO was incorporated and HCL Info systems became the largest hardware
company. In 2002, software businesses of HCL Info systems and HCL
Technologies were merged. In 2005, HCL set up first Power PC architecture
design centre outside of IBM. In the same year HCL Info systems launched sub
`10,000 PC. In 2006, HCL Info systems became the first company in India to
launch the New Generation of High Performance Server Platforms Powered by
Intel Dual - Core Xeon 5000 Processor. Today, HCL has a turnover of over
US$4billion[35]
4.4.6.3 Infosys Ltd:
Infosys was founded on July 2, 1981 by N.R. Narayan Murthy and six of his
colleagues, namely, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S. D.
Shibulal, K. Dinesh and Ashok Arora. Narayan Murthy borrowed `10,000 from
his wife Sudha Murthy as seed capital for the company. In 1987 Infosys got its
first foreign client, Data Basics Corporation from the United States and opened
its first office in the USA. In 1993, Infosys became a public limited company and
successfully completed IPO in India. In the same year Infosys received ISO
9001/Tick IT certification. Infosys set up its first office in Europe in Milton
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Keynes, UK in 1996. In 1999, Infosys crossed $100 Million in annual revenue and
was listed on NASDAQ. It was Indian company to be listed on NASDAQ. In the
same year Infosys opened offices in Germany, Sweden, Belgium, and Australia. In
2000, Infosys crossed $200 Million in annual revenue. In 2004, Infosys crossed
US $1 Billion in annual revenue. In 2006, Infosys completed 25 years of its
existence and its revenues crossed $ 2 billion. Today Infosys has more than
50,000 employees and has presence in more than 20 countries across the world.
Its corporate headquarters is in Bangalore.
Infosys follows highest standards of corporate governance. No relative of the
founders is eligible to work in Infosys and all the employees including founders
are to retire at the age of 60. Some of the persons occupying key positions in
Infosys are: N. R. Narayan Murthy (Founder, Non-Executive Chairman and Chief
Mentor), Nandan Nilekani (Co-founder and Co-Chairman), S. "Kris"
Gopalakrishnan (Co-founder, CEO and MD), and S. D. Shibulal (Co-founder and
COO)[36]
4.4.6.4 Moser Baer Ltd:
Moser Baer India was founded in New Delhi in 1983 as a Time Recorder unit in
technical collaboration with Maruzen Corporation, Japan and Moser Baer
Sumiswald, Switzerland.
In 1988, Moser Baer India moved into the data storage industry by commencing
manufacturing of 5.25-inch Floppy Diskettes. By 1993, it graduated to
manufacturing 3.5-inch Micro Floppy Diskettes (MFD).
In 1999, Moser Baer India set up a 150-million unit capacity plant to
manufacture Recordable Compact Disks (CD-Rs) and Recordable Digital Versatile
Disks (DVD-Rs). The strategy for the optical media project was identical to what
had successfully been implemented in the diskette business - creating a facility
that matched global standards in terms of size, technology, quality, product
flexibility and process integration. The company is today the only large Indian
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manufacturer of magnetic and optical media data storage products, exporting
approximately 85 percent of its production.
Since inception, Moser Baer has always endeavoured to create its space in the
international market. Aiding the company in its efforts has been a carefully-
planned and sustainable business model - low costs, high margins, high profits,
reinvestment and capacity growth. Along the way, deep relationships have been
forged with leading OEMs, with the result that today there are hardly any global
technology brands in the optical media segment that Moser Baer is not
associated with.
In 2006, the company announced its foray into the Photovoltaic and Home
Entertainment businesses. In 2007, the IT Peripherals and Consumer Electronics
division was formed[37]
4.4.6.5 Wipro Ltd:
Wipro Technologies is a global services provider delivering technology-driven
business solutions. Wipro is the No.1 provider of integrated business, technology
and process solutions on a global delivery platform. Azim Premji is the Chairman
of Wipro Technologies. He took over the mantle of leadership of Wipro at the age
of 21 in 1966. Under his leadership, the fledgling US$ 2 million hydrogenated
cooking fat company has grown to a US$1.76 billion IT Services organization
serving customers across the globe. Wipro is presently ranked among the top
100 Technology companies in the world. It has 66,000+ employees, serves 592
clients, and has 46 development centres across globe[38]
4.4.7 Metal Industries:
By the historical periods of the Pharaohs in Egypt, the Vedic Kings in India, the
Tribes of Israel, and the Mayan Civilization in North America, among other
ancient populations, precious metals began to have value attached to them. In
some cases rules for ownership, distribution, and trade were created, enforced,
and agreed upon by the respective peoples. By the above periods metalworkers
were very skilled at creating objects of adornment, religious artifacts, and trade
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instruments of precious metals (non-ferrous), as well as weaponry usually of
ferrous metals and/or alloys. These skills were finely honed and well executed.
The techniques were practiced by artisans, blacksmiths, atharvavedic
practitioners, alchemists, and other categories of metalworkers around the
globe. For example, the ancient technique of granulation is found around the
world in numerous ancient cultures before the historic record shows people
travelled seas or overland to far regions of the earth to share this process that
still being used by metal smiths today.
As time progressed metal objects became more common, and ever more
complex. The need to further acquire and work metals grew in importance. Skills
related to extracting metal ores from the earth began to evolve, and metal smiths
became more knowledgeable. Metal smiths became important members of
society. Fates and economies of entire civilizations were greatly affected by the
availability of metals and metal smiths. The metalworker depends on the
extraction of precious metals to make jewellery, build more efficient electronics,
and for industrial and technological applications from construction to shipping
containers to rail, and air transport. Without metals, goods and services would
cease to move around the globe on the scale we know today.
More individuals than ever before are learning metalworking as a creative outlet
in the forms of jewellery making, hobby restoration of aircraft and cars,
blacksmithing, tin smiting, tinkering, and in other art and craft pursuits. Trade
schools continue to teach welding in all of its forms, and there is a proliferation
of schools of Lapidary and Jewelers arts and sciences at this- the beginning of the
21st Century AD[39]
4.4.7.1 Hindalco Industries Ltd:
Hindalco Industries has a consolidated turnover of more than US$ 14 billion. It is
regarded as hugest aluminium rolling company of world and a major producer of
primary aluminium in Asia. Copper smelter of Hindalco Industries is biggest
custom smelter of a particular location anywhere in world.
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Hindalco Industries was incorporated in 1958. In 1962, Hindalco Industries had
licensed an aluminium facility at Renukoot in eastern parts of Uttar Pradesh. This
company increased its strength through mergers and acquisitions with Birla
Copper and Indal. It has also entered into merger and acquisition deals with
Mount Gordon and Nifty copper mines in Australia[40]
4.4.7.2 Ispat Industries Ltd:
Nippon Denro Ispat Limited was incorporated in 1984 and was granted the first
Industrial License by Government of India for manufacturing Galvanised
Plain/Corrugated Sheets. To better provide steel solutions to an increasingly
sophisticated marketplace, IIL set up a highly advanced cold rolling reversing
mill, in collaboration with Hitachi Ltd. of Japan, to manufacture a wide range of
cold rolled carbon steel strips. In 1988 it installed a colour coating line and was
granted Industrial License for Cold Rolled Sheets. In 1994 Business interests
within the Group were demarcated. The eldest son, Mr. L N Mittal continued
managing the international operations while Mr.Pramod Mittal and Mr.Vinod
Mittal, the younger brothers focused on steel and other businesses in India. In
1994, it commissioned the world’s largest gas-based single mega module plant
for manufacturing direct reduced iron (sponge iron), at its Maharashtra-based
Dolvi plant. In 1995 hot strip mill with Continuous Strip Processing (CSP)
technology was installed at Dolvi. In 1998, integrated steel plant for the
production of hot rolled coils was launched, using technologies such as the
Conarc Process for steel making and the Compact Strip Process. Year 2000 saw
the erection and commissioning of a 2 MTPA blast furnace at the Dolvi steel
complex. Sponge iron capacity was increased from 1.2 MTPA to 1.4 MTPA in the
year 2003. Year 2004 saw the increase in capacity of Hot rolled coil from 1.5
MTPA to 2.4 MTPA and Sponge iron from 1.4 MTPA to 1.6 MTPA[41]
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4.4.7.3 NACL Industries Ltd:
With nearly one-fifth of the global market for water treatment chemicals, NACL
Chemical Company dominates that $3 billion industry. By making good on its
corporate pledge to "find the customer need and fill it," NACL expanded from a
base in water treatment into the production and sale of specialty chemicals and
devices used in pollution control, oil production and refining, steel making,
energy conservation, paper-making, food production, and mining. In the
increasingly regulated and efficiency-oriented 1990s, NACL worked to provide
its diverse industrial customers with the means to solve their problems. By the
mid-1990s, water treatment products only constituted about one-third of annual
sales, and the company ranked as one of the largest specialty chemical suppliers
in the United States.
The merger that formed the National Aluminate Corporation came as the result
of a natural synergy between the Chicago Chemical Company and the Aluminum
Sales Corporation. The former company, organized in 1920 by Herbert A. Kern,
had sold sodium aluminate to industrial plants for boiler feed-water treatment,
while the latter, founded in 1922 by P. Wilson Evans, sold sodium aluminate to
railroads for the treatment of water used in steam locomotives.
At its inception, Kern's Chicago Chemical Company marketed a water treatment
product called Colline to industrial plants in the Chicago area. Unfortunately for
the company, the chemical, while very effective on Chicago water, was not quite
so effective on other water supplies. Kern found that water was not the same
everywhere and that treatment would therefore vary. He did, however, discover
that the chemical compound sodium aluminate was more effective and more
universally marketable than Colline. By 1922 Chicago Chemical Company began
marketing Kern's Water Softener, KWS Sodium Aluminate. Kern contracted
Evans' Aluminate Sales Corporation to supply the chemical for Chicago
Chemical's water treatment business. Soon afterwards, however, the Chicago
Chemical Company constructed a new plant in the Clearing Industrial District for
the manufacture of sodium aluminate for both companies[42]
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4.4.7.4 SAIL:
Established in 1973, Steel Authority of India Limited (SAIL) is a flagship steel
making company in India & one of the top 10 public sector companies in terms of
turnover. SAIL is the largest producer of iron ore in India. The steel products
manufactured by SAIL include:
Hot and cold rolled sheets and coils
Galvanized sheets
Electrical sheets
Railway products
Plates, bars and rods
Stainless steel and other alloy steels
SAIL has created its own Central Marketing Organisation (CMO) and the
International Trade Division to take care of its international and marketing
operations. The Government of India owns 86% of SAIL's equity.
SAIL has also entered into many joint ventures in various areas like e -commerce,
power plants, etc.
SAIL has a research and development centre for iron and steel and its own in-
house Centre for Engineering and Technology (CET), Management Training
Institute (MTI) and Safety Organisation at Ranchi.
Production Facilities of SAIL:
Integrated Steel Plants
3 Special Steel Plants
1 Subsidiary-Ferro Alloy Plant (under merger)
Marketing Network of SAIL:
34 Branch Sales Offices
14 Customer Contact Offices (CCOs)
42 Warehouses
HUMAN RESOURCES AT SAIL:
SAIL had 138211 employees at
training of its employees, and they are considered its greatest asset. Regular
tailor-made training programs for the different categories of employees are
conducted in India and abroad. It has well
and MTI at Ranchi.
SAIL provides various benefits to its employees like cultural and sports activities,
etc.[43]
4.4.7.5 Tata Steel Ltd:
Tata Steel formerly known as
the world's seventh largest steel company, with an annual crude steel capacity of
31 million tonnes. It is the largest private sector steel company in India in terms
of domestic production. Currently
based in Jamshedpur, Jharkhand, India. It is part of Tata Group of companies.
Tata Steel is also India's second
private sector with consolidated revenues of
and net profit of over
March 31, 2008.Tata steel in the 8th most valuable brand according to an annual
survey conducted by Brand Finance and The Economic Times in 2010.
Its main plant is located in Jamshedpur, Jharkhand, with its
the company has become a multinational with operations in various countries.
The Jamshedpur plant contains the DCS supplied by
office of Tata Steel is in Mumbai. The company was also recognized as the
world's best steel producer by World Steel Dynamics in 2005. The company is
listed on Bombay Stock Exchange and National Stock Exchange of India, and
employs about 82,700 people (as of 2007)
126
HUMAN RESOURCES AT SAIL:
SAIL had 138211 employees at the end of the FY-06. SAIL lays emphasis on the
training of its employees, and they are considered its greatest asset. Regular
made training programs for the different categories of employees are
conducted in India and abroad. It has well-equipped training institutes in plants
SAIL provides various benefits to its employees like cultural and sports activities,
Tata Steel Ltd:
formerly known as TISCO and Tata Iron and Steel Company Limited
the world's seventh largest steel company, with an annual crude steel capacity of
31 million tonnes. It is the largest private sector steel company in India in terms
production. Currently ranked 410th on Fortune Global 500, it is
Jamshedpur, Jharkhand, India. It is part of Tata Group of companies.
Tata Steel is also India's second-largest and second-most profitable company in
private sector with consolidated revenues of 132,110 crore (US$29.33 billion)
and net profit of over 12,350 crore (US$2.74 billion) during the year ended
March 31, 2008.Tata steel in the 8th most valuable brand according to an annual
survey conducted by Brand Finance and The Economic Times in 2010.
Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions;
the company has become a multinational with operations in various countries.
The Jamshedpur plant contains the DCS supplied by Honeywell. The
office of Tata Steel is in Mumbai. The company was also recognized as the
best steel producer by World Steel Dynamics in 2005. The company is
listed on Bombay Stock Exchange and National Stock Exchange of India, and
employs about 82,700 people (as of 2007)[44]
06. SAIL lays emphasis on the
training of its employees, and they are considered its greatest asset. Regular
made training programs for the different categories of employees are
training institutes in plants
SAIL provides various benefits to its employees like cultural and sports activities,
Tata Iron and Steel Company Limited, is
the world's seventh largest steel company, with an annual crude steel capacity of
31 million tonnes. It is the largest private sector steel company in India in terms
ranked 410th on Fortune Global 500, it is
Jamshedpur, Jharkhand, India. It is part of Tata Group of companies.
most profitable company in
132,110 crore (US$29.33 billion)
50 crore (US$2.74 billion) during the year ended
March 31, 2008.Tata steel in the 8th most valuable brand according to an annual
survey conducted by Brand Finance and The Economic Times in 2010.
recent acquisitions;
the company has become a multinational with operations in various countries.
Honeywell. The registered
office of Tata Steel is in Mumbai. The company was also recognized as the
best steel producer by World Steel Dynamics in 2005. The company is
listed on Bombay Stock Exchange and National Stock Exchange of India, and
127
4.4.8 Oil and Gas Industries:
The petroleum industry includes the global processes of exploration, extraction,
refining, transporting (often by oil tankers and pipelines), and marketing
petroleum products. The largest volume products of the industry are fuel oil and
gasoline (petrol). Petroleum is also the raw material for many chemical products,
including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The
industry is usually divided into three major components: upstream, midstream
and downstream. Midstream operations are usually included in the downstream
category.
Petroleum is vital to many industries, and is of importance to the maintenance of
industrial civilization itself, and thus is a critical concern for many nations. Oil
accounts for a large percentage of the world’s energy consumption, ranging from
a low of 32% for Europe and Asia, up to a high of 53% for the Middle East.
Other geographic regions’ consumption patterns are as follows: South and
Central America (44%), Africa (41%), and North America (40%). The world
consumes 30 billion barrels (4.8 km³) of oil per year, with developed nations
being the largest consumers. The United States consumed 25% of the oil
produced in 2007. The production, distribution, refining, and retailing of
petroleum taken as a whole represents the world's largest industry in terms of
dollar value.
Governments such as the United States government provide a heavy public
subsidy to petroleum companies, with major tax breaks at virtually every stage
of oil exploration and extraction, including for the costs of oil field leases and
drilling equipment[45]
4.4.8.1 Bharat Petroleum Corp. Ltd:
The 1860s saw vast industrial development. A lot of petroleum refineries came
up. An important player in the South Asian market then was the Burmah Oil
Company Ltd. Though incorporated in Scotland in 1886, the company grew out
of the enterprises of the Rangoon Oil Company, which had been formed in 1871
to refine crude oil produced from primitive hand dug wells in Upper Burma.
128
The search for oil in India began in 1886, when Mr. Good enough of McKillop
Stewart Company drilled a well near Jaypore in upper Assam and struck oil. In
1889, the Assam Railway and Trading Company (ARTC) struck oil at Digboi
marking the beginning of oil production in India.
While discoveries were made and industries expanded, John D Rockefeller
together with his business associates acquired control of numerous refineries
and pipelines to later form the giant Standard Oil Trust. The largest rivals of
Standard Oil - Royal Dutch, Shell, Rothschilds - came together to form a single
organisation. Asiatic Petroleum Company to market petroleum products in South
Asia.
In 1928, Asiatic Petroleum (India) joined hands with Burmah Oil Company - an
active producer, refiner and distributor of petroleum products, particularly in
Indian and Burmese markets. This alliance led to the formation of Burmah-Shell
Oil Storage and Distributing Company of India Limited. A pioneer in more ways
than one, Burmah Shell began its operations with import and marketing of
Kerosene. This was imported in bulk and transported in 4 gallon and 1 gallon
tins through rail, road and country craft all over India. With motor cars, came
canned Petrol, followed by service stations. In the 1930s, retail sales points were
built with driveways set back from the road; service stations began to appear
and became accepted as a part of road development. After the war Burmah Shell
established efficient and up-to-date service and filling stations to give the
customers the highest possible standard of service facilities.
On 24 January 1976, the Burmah Shell Group of Companies was taken over by
the Government of India to form Bharat Refineries Limited. On 1 August 1977, it
was renamed Bharat Petroleum Corporation Limited. It was also the first
refinery to process newly found indigenous crude Bombay High, in the country.
Today Bharat Petroleum Corporation Limited has got three refineries at Mumbai,
Kochi and Numaligarh. They are also on the verge of commissioning another
refinery at Bina in Madhya Pradesh in 2010[46]
4.4.8.2 Hindustan Petroleum Corp. Ltd:
Hindustan Petroleum Corporation Limited
the Government of India located at Mumbai, India and is a Fortune 500 company
of India listed at number 311 in the global 500 rankings, with an annual turnover
of over 1,16,428 Crores and sales/income from operations of
(US$ 25,618 Millions) during financial year 2008
in India and a strong market infrastructure. Corresponding figures for financial
year 2007-08 are: Turnover
Operations- 1,12,098 Crores (US$ 25,142 Million).
HPCL operates 2 major refineries producing a wide variety of petroleum fuels &
specialties, one in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum
(MMTPA) capacity and the other in Vishakapatnam, (East Coa
of 8.3 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery &
Petrochemicals Limited (MRPL), a state
capacity of 9 MMTPA. Another Refinery of 9 MMTPA is under construction in
Bhathinda, Punjab by HMEL, a Joint Venture wi
Pvt.Ltd.
HPCL also owns and operates the largest Lube Refinery in India producing Lube
Base Oils of international standards. With a capacity of 335 TMT. This Lube
Refinery accounts for over
Presently HPCL produces over 300+ grades of Lubes, Specialities and Greases.
The marketing network of HPCL consists of 13 Zonal offices in major cities and
101 Regional offices facilitated by a Supply & D
comprising Terminals, Aviation Service Facilities, LPG Bottling Plants, Lube
filling plants, Inland Relay Depots, Retail Outlets (Petrol Pumps) and LPG & Lube
Distributorships. HPCL has state of art information technology infrast
support its core business. The data
HPCL has, over the years, moved from strength to strength on all fronts. The
refining capacity steadily increased from 5.5 million metric tonnes in 1984/85 to
129
Hindustan Petroleum Corp. Ltd:
Hindustan Petroleum Corporation Limited (HPCL) a state-owned oil company of
the Government of India located at Mumbai, India and is a Fortune 500 company
of India listed at number 311 in the global 500 rankings, with an annual turnover
Crores and sales/income from operations of
(US$ 25,618 Millions) during financial year 2008-09, about 20% Marketing share
in India and a strong market infrastructure. Corresponding figures for financial
08 are: Turnover- ` 1,03,837 crores, and sales/income from
1,12,098 Crores (US$ 25,142 Million).
HPCL operates 2 major refineries producing a wide variety of petroleum fuels &
specialties, one in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum
(MMTPA) capacity and the other in Vishakapatnam, (East Coast) with a capacity
of 8.3 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery &
Petrochemicals Limited (MRPL), a state-of-the-art refinery at Mangalore with a
capacity of 9 MMTPA. Another Refinery of 9 MMTPA is under construction in
, Punjab by HMEL, a Joint Venture with Mittal Energy Investments
HPCL also owns and operates the largest Lube Refinery in India producing Lube
Base Oils of international standards. With a capacity of 335 TMT. This Lube
Refinery accounts for over 40% of the India's total Lube Base Oil production.
Presently HPCL produces over 300+ grades of Lubes, Specialities and Greases.
The marketing network of HPCL consists of 13 Zonal offices in major cities and
101 Regional offices facilitated by a Supply & Distribution infrastructure
comprising Terminals, Aviation Service Facilities, LPG Bottling Plants, Lube
filling plants, Inland Relay Depots, Retail Outlets (Petrol Pumps) and LPG & Lube
Distributorships. HPCL has state of art information technology infrast
support its core business. The data centre is located at Hitech city in Hyderabad.
HPCL has, over the years, moved from strength to strength on all fronts. The
refining capacity steadily increased from 5.5 million metric tonnes in 1984/85 to
owned oil company of
the Government of India located at Mumbai, India and is a Fortune 500 company
of India listed at number 311 in the global 500 rankings, with an annual turnover
Crores and sales/income from operations of ` 1,31,802 Crores
09, about 20% Marketing share
in India and a strong market infrastructure. Corresponding figures for financial
crores, and sales/income from
HPCL operates 2 major refineries producing a wide variety of petroleum fuels &
specialties, one in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum
st) with a capacity
of 8.3 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery &
art refinery at Mangalore with a
capacity of 9 MMTPA. Another Refinery of 9 MMTPA is under construction in
th Mittal Energy Investments
HPCL also owns and operates the largest Lube Refinery in India producing Lube
Base Oils of international standards. With a capacity of 335 TMT. This Lube
40% of the India's total Lube Base Oil production.
Presently HPCL produces over 300+ grades of Lubes, Specialities and Greases.
The marketing network of HPCL consists of 13 Zonal offices in major cities and
istribution infrastructure
comprising Terminals, Aviation Service Facilities, LPG Bottling Plants, Lube
filling plants, Inland Relay Depots, Retail Outlets (Petrol Pumps) and LPG & Lube
Distributorships. HPCL has state of art information technology infrastructure to
is located at Hitech city in Hyderabad.
HPCL has, over the years, moved from strength to strength on all fronts. The
refining capacity steadily increased from 5.5 million metric tonnes in 1984/85 to
13.00 million metric tonnes (MMT) now. On the financial front, the turnover
grew from 2687 crores in 1984
09[47]
4.4.8.3 Indian Oil Corp. Ltd:
The Indian Oil Corporation Ltd. operates as the largest company in India in terms
of turnover and is the only Indian company to rank in the Fortune "Global 500"
listing. The oil concern is administratively controlled by India's Ministry of
Petroleum and Natural Gas, a government entity that owns just over 90 percent
of the firm. Since 1959, this refining, marketing, and international trading
company served the Indian state with the important task of reducing India's
dependence on foreign oil and thus conser
changed in April 2002, however, when the Indian government deregulated its
petroleum industry and ended Indian Oil's monopoly on crude oil imports. The
firm owns and operates seven of the 17 refineries in India, control
percent of the country's refining capacity.
Indian Oil owes its origins to the Indian government's conflicts with foreign
owned oil companies in the period immediately following India's independence
in 1947. The leaders of the newly indepen
country's oil industry was effectively in the hands of a private monopoly led by a
combination of British
companies Standard-
An indigenous Indian industry
of Indian oil traders had managed to trade outside the international cartel. They
imported motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less
than world market prices. Supplies were ir
networks that could effectively compete with the multinationals
130
13.00 million metric tonnes (MMT) now. On the financial front, the turnover
2687 crores in 1984-85 to ` 1,31,802 Crores in Financial year 2008
Indian Oil Corp. Ltd:
The Indian Oil Corporation Ltd. operates as the largest company in India in terms
of turnover and is the only Indian company to rank in the Fortune "Global 500"
listing. The oil concern is administratively controlled by India's Ministry of
tural Gas, a government entity that owns just over 90 percent
of the firm. Since 1959, this refining, marketing, and international trading
company served the Indian state with the important task of reducing India's
dependence on foreign oil and thus conserving valuable foreign exchange. That
changed in April 2002, however, when the Indian government deregulated its
petroleum industry and ended Indian Oil's monopoly on crude oil imports. The
firm owns and operates seven of the 17 refineries in India, control
percent of the country's refining capacity.
Indian Oil owes its origins to the Indian government's conflicts with foreign
owned oil companies in the period immediately following India's independence
in 1947. The leaders of the newly independent state found that much of the
country's oil industry was effectively in the hands of a private monopoly led by a
combination of British-owned oil companies Burmah and Shell and U.S.
-Vacuum and Caltex.
An indigenous Indian industry barely existed. During the 1930s, a small number
of Indian oil traders had managed to trade outside the international cartel. They
imported motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less
than world market prices. Supplies were irregular, and they lacked marketing
networks that could effectively compete with the multinationals
13.00 million metric tonnes (MMT) now. On the financial front, the turnover
Crores in Financial year 2008-
The Indian Oil Corporation Ltd. operates as the largest company in India in terms
of turnover and is the only Indian company to rank in the Fortune "Global 500"
listing. The oil concern is administratively controlled by India's Ministry of
tural Gas, a government entity that owns just over 90 percent
of the firm. Since 1959, this refining, marketing, and international trading
company served the Indian state with the important task of reducing India's
ving valuable foreign exchange. That
changed in April 2002, however, when the Indian government deregulated its
petroleum industry and ended Indian Oil's monopoly on crude oil imports. The
firm owns and operates seven of the 17 refineries in India, controlling nearly 40
Indian Oil owes its origins to the Indian government's conflicts with foreign-
owned oil companies in the period immediately following India's independence
dent state found that much of the
country's oil industry was effectively in the hands of a private monopoly led by a
owned oil companies Burmah and Shell and U.S.
barely existed. During the 1930s, a small number
of Indian oil traders had managed to trade outside the international cartel. They
imported motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less
regular, and they lacked marketing
networks that could effectively compete with the multinationals[48]
131
4.4.8.4 ONGC Ltd:
During the pre-independence period, the Assam Oil Company in the north-
eastern and Attock Oil company in north-western part of the undivided India
were the only oil companies producing oil in the country, with minimal
exploration input. The major part of Indian sedimentary basins was deemed to
be unfit for development of oil and gas resources.
After independence, the national Government realized the importance oil and
gas for rapid industrial development and its strategic role in defence.
Consequently, while framing the Industrial Policy Statement of 1948, the
development of petroleum industry in the country was considered to be of
utmost necessity. Until 1955, private oil companies mainly carried out
exploration of hydrocarbon resources of India. In Assam, the Assam Oil Company
was producing oil at Digboi (discovered in 1889) and the Oil India Ltd. (a 50%
joint venture between Government of India and Burmah Oil Company) was
engaged in developing two newly discovered large fields Naharkatiya and Moran
in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture
between Government of India and Standard Vacuum Oil Company of USA) was
engaged in exploration work. The vast sedimentary tract in other parts of India
and adjoining offshore remained largely unexplored.
In 1955, Government of India decided to develop the oil and natural gas
resources in the various regions of the country as part of the Public Sector
development. With this objective, an Oil and Natural Gas Directorate was set up
towards the end of 1955, as a subordinate office under the then Ministry of
Natural Resources and Scientific Research. The department was constituted
with a nucleus of geoscientists from the Geological survey of India.
In April 1956, the Government of India adopted the Industrial Policy Resolution,
which placed mineral oil industry among the schedule 'A' industries, the future
development of which was to be the sole and exclusive responsibility of the state.
Soon, after the formation of the Oil and Natural Gas Directorate, it became
132
apparent that it would not be possible for the Directorate with its limited
financial and administrative powers as subordinate office of the Government, to
function efficiently. So in August, 1956, the Directorate was raised to the status of
a commission with enhanced powers, although it continued to be under the
government. In October 1959, the Commission was converted into a statutory
body by an act of the Indian Parliament, which enhanced powers of the
commission further. The main functions of the Oil and Natural Gas Commission
subject to the provisions of the Act, were "to plan, promote, organize and
implement programmes for development of Petroleum Resources and the
production and sale of petroleum and petroleum products produced by it, and to
perform such other functions as the Central Government may, from time to time,
assign to it ". The act further outlined the activities and steps to be taken by
ONGC in fulfilling its mandate.
Since its inception, ONGC has been instrumental in transforming the country's
limited upstream sector into a large viable playing field, with its activities spread
throughout India and significantly in overseas territories. In the inland areas,
ONGC not only found new resources in Assam but also established new oil
province in Cambay basin (Gujarat), while adding new petro liferous areas in the
Assam-Arakan Fold Belt and East coast basins (both inland and offshore).
ONGC went offshore in early 70's and discovered a giant oil field in the form of
Bombay High, now known as Mumbai High. This discovery, along with
subsequent discoveries of huge oil and gas fields in Western offshore changed
the oil scenario of the country. Subsequently, over 5 billion tonnes of
hydrocarbons, which were present in the country, were discovered. The most
important contribution of ONGC, however, is its self-reliance and development of
core competence in E&P activities at a globally competitive level.
In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC
diversified into the downstream sector. ONGC will soon be entering into the
retailing business. ONGC has also entered the global field through its subsidiary,
ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam,
133
Sakhalin and Sudan and earned its first hydrocarbon revenue from its
investment in Vietnam[49].
4.4.8.5 Reliance Industries Ltd:
Oil and gas sector will be a fountainhead of growth and prosperity of Reliance
and of India in the twenty-first century, said Mukesh Ambani, at the company`s
29th annual general meeting held in Mumbai today.
Terming oil and gas as the wellspring of opportunity for Reliance and for India,
Ambani told the shareholders that Reliance had struck oil in an onshore block in
Yemen, where it has an equity oil position. The Yemen
discovery is expected to be equivalent to about half of Reliance`s share of crude
oil from the Panna-Mukta-Tapti offshore fields in the Bombay High region.
‘This is only a beginning,’ Ambani told the shareholders, adding that to date, less
than 20 per cent of the Krishna-Godavari Basin D6 Block area had been explored.
`We are still to explore oil and gas in the rest of the 80 per cent of the D6 Block
area` he added.
Reliance is committed to spend about ` 1,500 crore over the next two years in
exploration. The company is also leveraging its success in India to actively
pursue prospects in attractive and politically stable regions in the world.
It can be recalled that during the last AGM in October 2002, Mukesh Ambani had
announced the discovery of gas in the deep-water Krishna-Godavari Basin (KG-
D6), the world`s largest gas find in 2002, off Andhra Pradesh coast. Reliance had
estimated the in-place gas volume for this discovery at seven trillion cubic feet.
Since then, Reliance has intensified exploration efforts and, in the first phase,
drilled eight wells.
Since the time I spoke to you at the last AGM, Reliance has found an additional
seven trillion cubic feet of gas in the Dhirubhai discoveries. This doubles the total
134
in-place gas volume to 14 trillion cubic feet. This is the equivalent of 2.3 billion
barrels or 300 million tonnes of crude oil.`
These discoveries are capable of producing in excess of 60 million standard cubic
metres of gas per day.
This rate of production will be at par with the entire gas sales of 65 million
standard cubic metres per day from all other sources in India. At the current
market prices to the consumer, this means an incremental revenue of ` 10,000
crore every year for Reliance and equivalent to about 15 percent of the
company`s current revenues.
Following the successful bidding in third round of New Exploration Licensing
Policy, Reliance is also exploring for oil and gas in the proven Bombay High
Basin and the prospective Mahanadi offshore and Kutch offshore Basins. These
include nine new exploration blocks that Reliance added during the year,
covering an area of 114,000 square km.
As a result, Reliance now has rights to 32 exploration blocks in India, covering a
total area of 288,000 square km, by far, the largest acreage holding by any
private sector company in India.
Concurrent with gas exploration and production in the Krishna-Godavari basin,
Reliance will build a gas transmission infrastructure to take gas to industrial,
commercial and household consumers by the year 2006. `Government approvals
for developing a gas transmission system are being obtained,`Ambani said.
Statutory clearances for development of Krishna-Godavari D6 block are at an
advanced stage.[50]
4.4.9 Power Industries:
Although electricity had been known to be produced as a result of the chemical
reactions that take place in an electrolytic cell since AlessandroVolta developed
135
the voltaic pile in 1800, its production by this means was, and still is, expensive.
In 1831, Michael Faraday devised a machine that generated electricity from
rotary motion, but it took almost 50 years for the technology to reach a
commercially viable stage. In 1878, in the US, Thomas Edison developed and sold
a commercially viable replacement for gas lighting and heating using locally
generated and distributed direct current electricity.
The world's first public electricity supply was provided in late 1881, when the
streets of the Surrey town of Godalming in the UK were lit with electric light. This
system was powered from a water wheel on the River Wey, which drove a
Siemens alternator that supplied a number of arc lamps within the town. This
supply scheme also provided electricity to a number of shops and premises.
Coinciding with this, in early 1882, Edison opened the world’s first steam-
powered electricity generating station at Holborn Viaduct in London, where he
had entered into an agreement with the City Corporation for a period of three
months to provide street lighting. In time he had supplied a number of local
consumers with electric light. The method of supply was direct current (DC).
It was later on in the year in September 1882 that Edison opened the Pearl Street
Power Station in New York City and again it was a DC supply. It was for this
reason that the generation was close to or on the consumer's premises as Edison
had no means of voltage conversion. The voltage chosen for any electrical system
is a compromise. Increasing the voltage reduces the current and therefore
reduces resistive losses in the cable. Unfortunately it increases the danger from
direct contact and also increases the required insulation thickness. Furthermore
some load types were difficult or impossible to make for higher voltages.
Additionally, Robert Hammond, in December 1881, demonstrated the new
electric light in the Sussex town of Brighton in the UK for a trial period. The
ensuing success of this installation enabled Hammond to put this venture on
both a commercial and legal footing, as a number of shop owners wanted to use
the new electric light. Thus the Hammond Electricity Supply Co. was launched.
136
Whilst the Godalming and Holborn Viaduct Schemes closed after a few years the
Brighton Scheme continued on, and supply was in 1887 made available for 24
hours per day.
Nikola Tesla, who had worked for Edison for a short time and appreciated the
electrical theory in a way that Edison did not, devised an alternative system
using alternating current. Tesla realised that while doubling the voltage would
halve the current and reduce losses by three-quarters, only an alternating
current system allowed the transformation between voltage levels in different
parts of the system. This allowed efficient high voltages for distribution where
their risks could easily be mitigated by good design while still allowing fairly safe
voltages to be supplied to the loads. He went on to develop the overall theory of
his system, devising theoretical and practical alternatives for all of the direct
current appliances then in use, and patented his novel ideas in 1887, in thirty
separate patents.
High tension line in Montreal, Quebec, Canada.
In 1888, Tesla's work came to the attention of George Westinghouse, who owned
a patent for a type of transformer that could deal with high power and was easy
to make. Westinghouse had been operating an alternating current lighting plant
in Great Barrington, Massachusetts since 1886. While Westinghouse's system
could use Edison's lights and had heaters, it did not have a motor. With Tesla and
his patents, Westinghouse built a power system for a gold mine in Telluride,
Colorado in 1891, with a water driven 100 horsepower (75 kW) generator
powering a 100 horsepower (75 kW) motor over a 2.5-mile (4 km) power line.
Almarian Decker finally invented the whole system of three-phase power
generating in Redlands, California in 1893. Then, in a deal with General Electric,
which Edison had been forced to sell, Westinghouse's company went on to
construct the Adams Power Plant at the Niagara Falls, with three 5,000
horsepower (3.7 MW) Tesla generators supplying electricity to an aluminium
smelter at Niagara and the town of Buffalo 22 miles (35 km) away. The Niagara
power station commenced operation on April 20, 1895.
137
Tesla's alternating current system remains the primary means of delivering
electrical energy to consumers throughout the world. While high-voltage direct
current (HVDC) is increasingly being used to transmit large quantities of
electricity over long distances or to connect adjacent asynchronous power
systems, the bulk of electricity generation, transmission, distribution and
retailing take place using alternating current[51]
4.4.9.1 ABB Ltd:
ABB resulted from the 1988 merger of Swedish and Swiss corporations ASEA
and BBC Brown Boveri (Brown, Boveri&Cie), the latter had absorbed the
MaschinenfabrikOerlikon in 1967. CEO at the time of the merger was the former
CEO of ASEA, Percy Barnevik, who ran the company until 1996.
ABB's history goes back to the late nineteenth century. ASEA was incorporated in
1883 and Brown, Boveri&Cie (BBC) was formed in 1891.
In the early 1990s, ABB purchased Combustion Engineering (C-E) headquartered
in Stamford and Norwalk, Connecticut, a leading U.S. firm in the development of
conventional fossil fuel power and nuclear power supply systems to break into
the North American market. Continuing with its expansion plans, ABB purchased
ELSAG BAILEY in 1999, which included Bailey Controls, Hartmann & Braun, and
Fischer & Porter. This was the largest acquisition to date in ABB's history.
In 2000, ABB signed a contract for the delivery of equipment and services for
two North Korean nuclear power plants to be supplied under an agreement with
the Korean Peninsula Energy Development Organization (KEDO), a consortium
formed in 1995 by the governments of the United States, Japan, South Korea and
the European Union. Also in 2000, ABB formally divested from a joint venture
named ABB-Alstom power and sold its interest in conventional power
generation systems and rail transportation to Alstom power. ABB's nuclear
business was sold to BNFL and merged into Westinghouse Electric Company.
138
In 2002,ABB asked Lindahl, the company's former chief executive, to return
some of his $50 million retirement pay, which its board called excessive. ABB
also asked its former chairman Percy Barnevik to pay back part of his $87 million
pension package. The size of the pensions was disclosed at the same time as
ABB's huge $691 million net loss for 2001 made headlines and drew sharp
criticism in Switzerland and Sweden.
ABB was formally listed on the New York Stock Exchange in 2001. Also during
that year, ABB was ranked as number one on the Dow Jones corporate
sustainability index for the third year in a row.
ABB went through a reorganization in 2005 to focus on the company's core
business of power and automation technologies. The reorganization created the
current structure of ABB with five business sectors (units) consisting of Power
Products, Power Systems, Automation Products, Process Automation, and
Robotics.
In 2006, ABB returned to financial health by settling its asbestos liability
regarding claims that were filed against ABB's U.S. subsidiaries, Combustion
Engineering and Lummus Global. In August 2007, Lummus Global was sold to
CB&I[52]
4.4.9.2 BHEL :
BHEL or Bharat Heavy Electricals Limited is the largest engineering and
manufacturing enterprise in India in the energy-related/infrastructure sector.
BHEL is one of the nine large Public Sector Undertakings known as navratnas or
nine jewels. BHEL offers over 180 products and provides systems and services to
meet the needs of core sectors like: power, transmission, industry,
transportation, oil & gas, non-conventional energy sources and
telecommunication.
139
BHEL was founded in 1950s. Its operations are organised around three business
sectors: Power, Industry - including Transmission, Transportation, Tele
communication & Renewable Energy - and Overseas Business. Today, BHEL has a
wide-spread network comprising 14 manufacturing divisions, 8 service centres,
4 power sector regional centres, 18 regional offices, and a large number of
project sites spread all over India and abroad. BHEL is one of the largest
exporters of engineering products & services from India. BHEL has established
its references in around 60 countries of the world, ranging from the United
States in the West to New Zealand in the Far East. Its export range include:
individual products to complete power stations, turnkey contracts for power
plants, EPC contracts, HV/EHV Sub-stations, O&M services for familiar
technologies, specialized after-market services like Residual Life Assessment
(RLA) studies and retrofitting, refurbishing & overhauling, and supplies to
manufacturers & EPC contractors.
BHEL's product range include: Steam turbines and generators of up to 500MW
capacity for utility and combined-cycle applications; Steam turbines for CPP
applications; Gas turbines of up to 260MW (ISO) rating; Custom-built
conventional hydro turbines of Kaplan, Francis and Pelton types with matching
generators, pump turbines with matching motor-generators; Spherical, butterfly
and rotary valves and auxiliaries for hydro station; HSD, LDO, FO, LSHS, natural-
gas/biogas based diesel power plant; Industrial turbo-sets of ratings from 1.5 to
120MW; Steam generators for utilities, ranging from 30 to 500MW capacity,
using coal, lignite, oil, natural gas or a combination of these fuels; Pulverized fuel
fired boilers; Stoker boilers; Atmospheric fluidized bed combustion boilers;
Circulating fluidized bed combustion boilers; Waste heat recovery boiler; Boiler
Auxiliaries; Heat Exchangers &Pressure Vessels; Pumps; Power Station Control
Equipment; Switchgears; Bus Ducts; Transformers; Insulators; Capacitors;
Energy Meters etc.[53]
4.4.9.3 Neyveli Lignite Ltd:
Neyveli Lignite Corporation Limited (NLC) is a government- owned [Mini
Rathna] lignite mining company in India. One of the public sector undertakings,
140
the company is wholly owned by the Union Government (49 percent) and
administered through Ministry of Coal. NLC operates the largest open-pit lignite
mines in India and mines some 24 million tonnes of lignite per year for fuel, with
an installed capacity of 2490 MW of electricity per year. Of this, the origin state of
Tamil Nadu consumes 1167 MW, with the neighbouring states (Kerala,
Karnataka, and Andhra Pradesh) consuming most of the rest.
The company's operations are in Neyveli, 197 km south of Chennai and 70 km
west of Pondicherry. NLC now expanded its project to Rajasthan also in mining
and thermal stations. NLC Neyveli, covers an area of about 54 square km,
including Neyveli Township and temporary colonies such as Mandarakuppam,
Thedirkuppam, Thandavankuppam, and Block-21'. Neyveli Township has about
32 blocks.
The company operates thermal power plants, three large mines. The company
also supplies a large quantity of sweet water to Chennai, thanks to the artesian
aquifers in the lignite mines.
The company is listed on the Bombay Stock Exchange and National Stock
Exchange of India.
In June 2006, the Indian government announced plans to sell a 10 percent stake
in Neyveli Lignite (at the same time it announced plans to sell a 10 percent stake
in the National Aluminium Company). The sales with occur through a book
building process, and the government's holding in NLC will be reduced to 83.56
percent.
All chemical plants have been closed since 2002. As a result, the by products of
the burnt lignite are no longer being used.[54]
4.4.9.4 Siemens Ltd:
Siemens & Halske was founded by Werner von Siemens on 12 October 1847.
Based on the telegraph, his invention used a needle to point to the sequence of
141
letters, instead of using Morse code. The company, then called Telegraphen-
Bauanstalt von Siemens & Halske, opened its first workshop on October 12.
In 1848, the company built the first long-distance telegraph line in Europe;
500 km from Berlin to Frankfurt am Main. In 1850 the founder's younger
brother, Carl Wilhelm Siemens started to represent the company in London. In
the 1850s, the company was involved in building long distance telegraph
networks in Russia. In 1855, a company branch headed by another brother, Carl
Heinrich von Siemens, opened in St Petersburg, Russia. In 1867, Siemens
completed the monumental Indo-European (Calcutta to London) telegraph line.
In 1881, a Siemens AC Alternator driven by a watermill was used to power the
world's first electric street lighting in the town of Godalming, United Kingdom.
The company continued to grow and diversified into electric trains and light
bulbs. In 1890, the founder retired and left the company to his brother Carl and
sons Arnold and Wilhelm.
Siemens & Halske (S&H) was incorporated in 1897, and then merged parts of its
activities with Schuckert & Co., Nuremberg in 1903 to become Siemens-
Schuckert.
In 1907 Siemens (Siemens & Halske and Siemens-Schuckert) had 34,324
employees and was the seventh-largest company in the German empire by
number of employees. (see List of German companies by employees in 1907)[55]
4.4.9.5 Tata Power Ltd:
Guided by the Founder Mr.Jamshetji Tata’s vision that ‘clean, cheap & abundant
power is one of the basic ingredients for the economic progress of a city, state or
country’, Tata Power commissioned India’s first power plant- the hydro-electric
station- in Khopoli (72 MW) in 1915, the second hydro station one in Bhivpuri
(75 MW) in 1919 and the 3rd one in Bhira (300 MW) in 1922. With these three
hydro stations and the 1,430 MW (100 MW merchant) thermal power station in
Trombay, Mumbai; a 475
a 87 MW thermal power plant in Belgaum, Tata Power is the largest integrated
private power company in India and is the most trustworthy power supplier to
Mumbai.
In addition, we have installed capacity
MW and are adding another 98 MW at the present moment.
farm is distributed in three different states of Maharashtra, Karnataka and
Gujarat. In the state of Jharkhand, Tata Power has set up power gener
waste heat and coke oven gases.
Jamshedpur and Haldia.
Power Plant (UMPP) in Mundra, near Bhuj. The 4000 MW station will have five
boilers each with a 800 MW unit size using supercritical technology that has a
higher efficiency (43%) compared to that of a sub
they will be setting up a 3MW PV based power generation facility in the state of
Maharashtra[56]
4.4.10Realty Industries:
Real estate is a legal term (in some jurisdictions, such as the United Kingdom,
Canada, Australia, USA and The Bahamas) that encompasses land along with
improvements to the land, such as buildings, fences, wells and other site
improvements that are fixed in location
of regulations and legal codes which pertain to such matters under a particular
jurisdiction and include things such as commercial and residential real property
transactions. Real estate is oft
(sometimes called realty
chattel or personality
However, in some situations the term "real estate" refers to the land and fixtures
together, as distinguished from "real property", referring to ownership of land
and appurtenances, including anything of a permanent nature such as structures,
trees, minerals, and the interest, benefits, and inherent rights thereof. Real
142
Trombay, Mumbai; a 475 MW power station near Jamshedpur in Jharkhand and
a 87 MW thermal power plant in Belgaum, Tata Power is the largest integrated
private power company in India and is the most trustworthy power supplier to
In addition, we have installed capacity for wind generation to the tune of 200
MW and are adding another 98 MW at the present moment. The 200 MW wind
farm is distributed in three different states of Maharashtra, Karnataka and
Gujarat. In the state of Jharkhand, Tata Power has set up power gener
waste heat and coke oven gases. This capacity is an additional 210 MW in
Jamshedpur and Haldia. Tata Power is now building India’s first Ultra Mega
Power Plant (UMPP) in Mundra, near Bhuj. The 4000 MW station will have five
800 MW unit size using supercritical technology that has a
higher efficiency (43%) compared to that of a sub-critical boiler (37%).
they will be setting up a 3MW PV based power generation facility in the state of
Industries:
is a legal term (in some jurisdictions, such as the United Kingdom,
Canada, Australia, USA and The Bahamas) that encompasses land along with
improvements to the land, such as buildings, fences, wells and other site
t are fixed in location—immovable. Real estate law
of regulations and legal codes which pertain to such matters under a particular
jurisdiction and include things such as commercial and residential real property
transactions. Real estate is often considered synonymous with
realty), in contrast with personal property (sometimes called
personality under chattel law or personal property law
However, in some situations the term "real estate" refers to the land and fixtures
together, as distinguished from "real property", referring to ownership of land
and appurtenances, including anything of a permanent nature such as structures,
ls, and the interest, benefits, and inherent rights thereof. Real
MW power station near Jamshedpur in Jharkhand and
a 87 MW thermal power plant in Belgaum, Tata Power is the largest integrated
private power company in India and is the most trustworthy power supplier to
for wind generation to the tune of 200
The 200 MW wind
farm is distributed in three different states of Maharashtra, Karnataka and
Gujarat. In the state of Jharkhand, Tata Power has set up power generation from
This capacity is an additional 210 MW in
Tata Power is now building India’s first Ultra Mega
Power Plant (UMPP) in Mundra, near Bhuj. The 4000 MW station will have five
800 MW unit size using supercritical technology that has a
critical boiler (37%). Shortly,
they will be setting up a 3MW PV based power generation facility in the state of
is a legal term (in some jurisdictions, such as the United Kingdom,
Canada, Australia, USA and The Bahamas) that encompasses land along with
improvements to the land, such as buildings, fences, wells and other site
Real estate law is the body
of regulations and legal codes which pertain to such matters under a particular
jurisdiction and include things such as commercial and residential real property
en considered synonymous with real property
), in contrast with personal property (sometimes called
personal property law).
However, in some situations the term "real estate" refers to the land and fixtures
together, as distinguished from "real property", referring to ownership of land
and appurtenances, including anything of a permanent nature such as structures,
ls, and the interest, benefits, and inherent rights thereof. Real
143
property is typically considered to be immovable property. The terms real estate
and real property are used primarily in common law, while civil law jurisdictions
refer instead to immovable property.[57]
4.4.10.1 Anant Raj Industries Ltd:
The Company was incorporated on 30th July, at New Delhi, and obtained the
Certificate of Commencement of Business on 21st January, 1986. The company
has been promoted by Ashok Sarin, Anil Sarin, M.L. Bhasin, H.L. Bhasin along
with Haryana State Industrial Development Corporation Ltd. The main object of
the Company is to manufacture glazed ceramic wall and floor tiles. The company
undertook to set up a plant for the manufacture Of 18,000 TPA of glazed ceramic
wall & floor tiles (plain, Coloured & decorative). Land admeasuring 15 acres was
acquired a Village Bhudla, a notified backward are in Mohindergarh district of
Haryana State. And the tiles were sold under the brand name `ROMANO'.
The Company focuses on the development of IT parks, hospitality and housing
projects. As of March 31, 2010, the Company owned and had completed five
hotels. Its subsidiaries include Advance Buildcon Pvt. Ltd., Kalinga BuildtechPvt.
Ltd., Anant Raj Cons. & Development Pvt. Ltd., Krishna Build tech Pvt. Ltd., Anant
Raj Hotels Ltd. and Kalinga Realtors Pvt. Ltd. In September 2010, the Company
acquired 100% interest in Jubilant Software Service Pvt. Ltd. In October 2010,
the Company acquired Aakarshak Realators Pvt Ltd. [58]
4.4.10.2 Ansal Properties Ltd:
The Company was originally incorporated as Ansal & Saigal Properties Pvt. Ltd
on June 30, 1967 and subsequently changed name to Ansal Properties &
Industries Pvt.Ltd. on November 10, 1975.
The Company again changed its status to a deemed public limited company
effective 15th June 1988, u/s 43A of the Act. Subsequently, by a Special
Resolution passed by the shareholders in their Extra Ordinary General Meeting
held on 30th March, 1990 restriction u/s 3(1)(iii) of the Act were deleted from
144
the Articles of the Company and the Company, as such, became Public Limited
Company within the meaning of Section 3(1)(iv) of the Act.
The Company is engaged in Real Estate Promotion, Construction and
Development activities. The Company executes contracts for building residential
complexes, commercial complexes etc. The Company has so far completed 66
projects in India and 5 projects in Iraq with an aggregate contract value of
`197.11 crores and `86.50 crores respectively.
The Company was promoted in the year 1967 by Shri Surendra Kumar Saigal and
Late Shri Charanjilal Ansal.
In 2005 Ansal Properties & Infrastructure signs an MOU with UP govt In 2006
Ansal Properties & Infrastructure Limited has appointed Mr.Anup Kapoor as
Chief Financial Officer of the Company. In 2007, Ansal Properties &
Infrastructure Ltd has signed two Agreements with IL&FS Investment Managers
(IIML), the private equity arm of IL&FS to develop two Projects of Township and
IT SEZ in Gurgaon, Haryana. Ansal Properties and Infrastructure Ltd (Ansal API)
inked a Memorandum of Understanding to form a joint venture company with
UEM Builders, a subsidiary of Malaysian conglomerate UEM Group, to take on
building, construction and engineering activities in India.
The Company has issued Bonus Shares in the Ratio of 1:1.
In 2008 Ansal Properties and Infrastructure Ltd has inked a
shareholder'sagreement for a joint venture with UEM Builders, a subsidiary of
Malaysian conglomerate UEM Group. Ansal Properties & Infrastructure Limited
has appointed Shri Mahesh Chand Maheshwari as Chief Financial Officer (CFO) in
place of Shri Anup Kapoor, erstwhile CFO[59].
4.4.10.3 Mahindra Life Space Developers Ltd:
Mahindra Lifespace Developers Ltd’ has won many accolades over the years such
as ‘CNBC Awaaz CRISIL Real Estate Awards 2007’ for ‘Most Transparent System’
and ‘Economic Times Award for Best Employer Branding 2008’.
145
Mahindra Life-space Developers Ltd is led by Mr Arun. K. Nanda, the chairman of
the company, with the help of his entrepreneur skills constructed many
residential and commercial properties. It is their mission to create healthy living
space surrounded by natural light, lush green landscape gardens and state-of-
the–art living space to please the clients. Backed by the commitment towards
their mission, Mahindra has not only just completed 3 million square feet of
residential projects but also been the first to develop India’s “green home” that is
compiled by IGBC (Indian Green Building Council) ratings.[60]
4.4.10.4 Peninsula Land Ltd:
Marching steadfast, building trust one brick after another, Peninsula is known for
creating projects of international repute. With the development and planning of
20 million sq. ft. of real estate in less than a decade since our inception in 1997, it
continues to bring real value and expertise to the real estate industry. It is known
for its professional corporate management, international landmarks and value
additions. Due to the varied nature of the projects, it posses thorough knowledge
of key issues and challenges of developing properties. Peninsula's stronghold is
visible in Western India - having established a solid footing in Mumbai, it is now
spreading into other parts of India.
Peninsula's properties are not just structures built on a piece of land; they are
new-age architecture excelled to perfection. They have introduced new concepts
such as "Shoppertainment" at Crossroads and recreational facilities at office
complexes in the form of Club Peninsula. They have successfully developed
approximately 3 million sq. ft. of real estate and another 20 million sq.ft. are in
various stages of planning and development. The weight of Peninsula brand
precipitates effective marketing and sales to top-end customers in retail,
commercial and residential segments. It is among the top 100 companies in
India. It is rated no. 84 by ET500 (March 2007).
They have invaluable expertise in marketing and selling space to top-of-the-line
retailers including retail outlets, entertainment and restaurants. Our commercial
146
and business complexes have been sought by MNCs. The residential complexes
offer a superior quality of living that is appreciated by senior executives.
To become the most trusted Real Estate Developer in India with leadership in
market share, research and profits by Building distinctive sales & marketing
capabilities, project management, developmental consultancy, facility
management Inculcating a high performance culture being the partner of choice
is the Mission.[61]
4.4.10.5 Unitech Ltd:
Unitech a real estate development company was established in 1971. With over
three decades of experience, today it has a market capitalisation of nearly USD 6
billion. With years of experience it earned a name in delivering quality product. It
is first real estate developer to received ISO 9001:2000 certification in North
India.
Unitech is engaged into development of residential, commercial/Information
Technology(IT) parks, Retail, Amusement parks, Hotels and Special Economic
Zones. Unitech has an experience of developing various projects. It is developing
several projects for major cities. Residential projects-It has undertaken various
projects and developed them namely, Uniworld City (Mohali), Sun Breeze
(Ghaziabad), Fresco (Gurgaon), Deja View park (Bangalore) are among others.
Commercial Projects- It has undertaken several commercial projects for
development namely Info space (Kolkata), Signature Towers, Global Business
Park, Unitech Cyber city, Unitech Business Park are among others. Retail
Projects- Its retail project portfolio consists of Uniworld city (Kolkata),
Greenwood Centre, Gurgaon Central, garden Galleria are among others.
It has successfully developed various projects like Telephone Exchange Building
for MTNL (New Delhi), 5-star Radisson Hotel (New Delhi) amongst others.
It has developed the largest mall in India at Noida with a leasable area of 1
million sq. ft. Unitech’s The Great India Place’ located at Noida has received
award for the ‘Best Designed Mall of the Country’. Unitech was awarded the title
147
of Super Brand by Super Brand India in October 2007. It has land reserves of
nearly 14,000 acres spread across major centres of economic activity in India.
It has also forayed into wireless telecommunication business. In this 60% stake
amounting to ` 6,120 crore has been brought by Norway-based Telenor, the
world's seventh largest telecom operator with a subscriber base of about 159
million[62]
The purpose of this chapter was to provide information about status of selected
industries and selected companies in form of their performance. The evaluation
is always influenced by two types of factors controllable and non controllable. If
company i.e. management is managing non controllable factors that reflects the
performance ability of the company. Factors like policy of competitors,
Government economic and political policy, stability of government, international
factors, perception of customers, and perception of investors have significant
impact on company’s performance. In this regard this chapter is prepared.
In the subsequent chapter core part of this study is discussed i.e. measurement
and analysis of share holders value creation. This subsequent chapter deals with
consistency of shareholders value creation in selected industries and companies.
This assists to the investors to decide about their investment decisions.
148
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