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Opportunities & Threats for Indian Companies in International Market
Presented byPrasad Prabhakaran
The Elephant dancesIndia emerges in Global Economy
Till 1980s India’s growth was supposed to be only its growing population
Within 2 decades, India is one of the powerful economies & it has started its upward climb.
Though late entrants, Indian companies are making their mark.
Top 10 Indian MNCsCompanies Figures in Rs. CroresReliance (Mukesh) 1,14086.40
Tata 98,233.05
Reliance (Anil) 47,929.85
Aditya Birla 45,568.89
Essar 35,138.09
OP Jindal 26,886.40
Hinduja 23,196.88
Bharti 20,628.72
Sterlite 19,324.34
Bajaj 16,960.74
Reliance (Mukesh)
Reliance Netherlands B.V. Reliance Industries (Middle East) DMCC RIL (Australia) Pty Ltd Recron (Malaysia) Sdn Bhd Gulf African Petroleum Corporation (Mauritius) GAPCO Tanzania Limited GAPOil Tanzania Limited GAPCO Kenya Limited Transenergy Kenya Limited GAPCO Uganda Limited GAPCO Rwanda Sarl GAPOil (Zanzibar) Limited
Reliance Global Energy Services (Singapore) Pte. Ltd RIL USA Inc. Reliance International B.V. Reliance Oil and Gas Mauritius Limited Reliance Exploration and Production Mauritius Limited Reliance Holding Netherlands B. V. Reliance Marcellus LLC Reliance Strategic (Mauritius) Limited Reliance Eagleford Midstream LLC Reliance Ealgeford Upstream LLC Reliance Eagleford Upstream GP LLC Reliance Eagleford Upstream Holding LP
Tata
African marketTata Africa HoldingsTata ZambiaTata Holdings Moçambique LdaTata Holdings (Tanzania) Tata Ghana
Chinese MarketTata Sons has a representative office Tata Consultancy Services has signed a joint venture
to develop a software business in China in collaboration with the Chinese government and Microsoft.
Tata Steel has two rolling mills in China following its acquisition of NatSteel.
Tata Refractories has opened a plant, the group’s first greenfield project in China
TACO has a factory in Nanjing to make auto components for General Motors and Ford.
European MarketBrunner MondJaguar Land RoverTaj Hotels Resorts and PalacesTata AutocompTata CommunicationsTata Consultancy ServicesTata InteractiveTata MotorsTata TechnologiesTetley Group
Americao Tetleyo Good Earth o Eight O’Clock Coffeeo The Pierre New York o Campton Place Hotel
Bharti
Has its presence in 21 countries – India, Sri Lanka, Bangladesh, Jersey, Guernsey, Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia
Other Indian MNCs
Cement – ACC, Gujrat Ambuja, Ultra TechTextiles – Indo Rama Synthetics, Aravind
Mills, Indian Rayon Hotel & Hospitality – Tata, Leela, Oberoi Tea – Tata Tea Large Trading – MMTC, STC
Entertainment – Zee Telefilms, Star Films Miscellaneous – Moser Baer, Asian Paints,
Bharat Forge, Sundaram Fasteners, Godrej, Bombay Dyeing, Air India, Jet Airways
Opportunities
Growth in international trade
Removal of cross border trade & investment restrictions since 1990
Large companies facing market saturation in their domestic markets
Benefit of early entry in less developed countries
Economies of scale & increase in bulk buying power
Politial environment of the country
Lisencing policies and other policies of the country
Threats Small Capital Base
Quality issues
Inability to gauze markets
Failure to get right partners
Poor project management
Poor operations controlCompetition from local productsPolitical and legal environment of the countryTerrorismCultural barriersImage of India
Opportunities in AfricaIndia-Africa trade to reach US$70bn by 2014
FDI in Africa generates the best returns - UN report
Tata has investments worth $1.6 billion in tourism, mining, automobile, energy and telecommunications in Africa
Bharti, Mahindra and Mahindra, UB group, Cipla, Dr Reddy’s Labs, NIIT, Kirloskar, Essar, Ranbaxy Laboratories, Reliance and Skipper Energy are also in the African Market
Opportunities in US & Chinese marketIndian pharmaceutical companies have
increased their penetration in the US generic market – Lupin Pharmaceuticals, Zydus Cadila, Glenmark, Aurobindo, Torrent Pharma.
China’s Commerce Minister Chen Deming “assured” India’s Commerce and Industry Minister Anand Sharma that China will open up more sectors to Indian companies in the future
Opportunities in EuropeEurope accounts for around 30 percent of the
global IT services market. According to IDC estimates, IT services
spending in Western Europe is expected to grow at a rate of 11 percent in the medium term.
Indian players are looking at Europe to offset the slowdown in the US.
Financial services and telecom are the main sectors that represent huge opportunities for Indian companies in Europe.
Threats in US MarketThe United States Senate has passed a
border security bill that will raise the visa fees of Indian companies operating in the U.S. by $2,000 or more, a move that may seriously impact the operations of IT-focussed companies such as Infosys, Wipro and the Tata Group.