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Opportunities & Threats for Indian

Companies in International Market

Presented by
Prasad Prabhakaran
The Elephant dances
India 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 MNCs
Companies Figures in Rs. Crores
Reliance (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 market
 Tata Africa Holdings
 Tata Zambia
 Tata Holdings Moçambique Lda
 Tata Holdings (Tanzania)
 Tata Ghana 
Chinese Market
 Tata 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 Market
Brunner Mond
Jaguar Land Rover
Taj Hotels Resorts and Palaces
Tata Autocomp
Tata Communications
Tata Consultancy Services
Tata Interactive
Tata Motors
Tata Technologies
Tetley Group
America
o Tetley
o Good Earth
o Eight O’Clock Coffee
o 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 Tech


 Textiles – 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 control
 Competition from local products
 Political and legal environment of the country
 Terrorism
 Cultural barriers
 Image of India
Opportunities in Africa
India-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 market
Indian 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 Europe
Europe 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 Market
The 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.

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