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Opportunities & Threats for Indian Companies in International Market Presented by Prasad Prabhakaran

Opportunities & Threats for Indian Companies in International

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Page 1: Opportunities & Threats for Indian Companies in International

Opportunities & Threats for Indian Companies in International Market

Presented byPrasad Prabhakaran

Page 2: Opportunities & Threats for Indian Companies in International

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.

Page 3: Opportunities & Threats for Indian Companies in International

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

Page 4: Opportunities & Threats for Indian Companies in International

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

Page 5: Opportunities & Threats for Indian Companies in International

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

Page 6: Opportunities & Threats for Indian Companies in International

Tata

African marketTata Africa HoldingsTata ZambiaTata Holdings Moçambique LdaTata Holdings (Tanzania) Tata Ghana 

Page 7: Opportunities & Threats for Indian Companies in International

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.

Page 8: Opportunities & Threats for Indian Companies in International

European MarketBrunner MondJaguar Land RoverTaj Hotels Resorts and PalacesTata AutocompTata CommunicationsTata Consultancy ServicesTata InteractiveTata MotorsTata TechnologiesTetley Group

Page 9: Opportunities & Threats for Indian Companies in International

Americao Tetleyo Good Earth o Eight O’Clock Coffeeo The Pierre New York o Campton Place Hotel 

Page 10: Opportunities & Threats for Indian Companies in International

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

Page 11: Opportunities & Threats for Indian Companies in International

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

Page 12: Opportunities & Threats for Indian Companies in International

Entertainment – Zee Telefilms, Star Films Miscellaneous – Moser Baer, Asian Paints,

Bharat Forge, Sundaram Fasteners, Godrej, Bombay Dyeing, Air India, Jet Airways

Page 13: Opportunities & Threats for Indian Companies in International

Opportunities

Growth in international trade

Removal of cross border trade & investment restrictions since 1990

Large companies facing market saturation in their domestic markets

Page 14: Opportunities & Threats for Indian Companies in International

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

Page 15: Opportunities & Threats for Indian Companies in International

Threats Small Capital Base

Quality issues

Inability to gauze markets

Failure to get right partners

Poor project management

Page 16: Opportunities & Threats for Indian Companies in International

Poor operations controlCompetition from local productsPolitical and legal environment of the countryTerrorismCultural barriersImage of India

Page 17: Opportunities & Threats for Indian Companies in International

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

Page 18: Opportunities & Threats for Indian Companies in International

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

Page 19: Opportunities & Threats for Indian Companies in International

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.

Page 20: Opportunities & Threats for Indian Companies in International

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.

Page 21: Opportunities & Threats for Indian Companies in International