A SUMMER TRAINING PROJECT REPORT ON A STUDY ON MULTINATIONAL COMPANIES AND ITS ASSISTANCE FROM CORPORATE BANKS

AT

Submitted in partial fulfilment of the requirement For the award of degree Of

MASTERS OF BUSINESS ADMINISTRATION SESSION (2011-2013)

SUBMITTED TO: MR.R. SHANMUGAM ASST.PROF. MBA SRM UNIVERSITY KATTANKULATHUR

SUBMITTED BY:JEBASINGH EDWARD .K I MBA-M SECTION 3511110819

Reg No 3511110819

DECLARATION BY THE CANDIDATE

JEBASINGH EDWARD K Reg No 3511110819

I MBA SRM UNIVERSITY KATTANKULATHUR I hereby state that the report entitled, A study on MULTINATIONAL COMPANIES AND ITS ASSISTANCE FROM CORPORATE BANKS was undertaken at HDFC CORPORATE BANK , R k salai, Mylapore, Chennai, submitted to SRM UNIVERSITY, Chennai in partial fulfillment of Master of Business Administration Degree is a record of original work done by me . The information and data given in the report is authentic to the best of my knowledge.

THIS SUMMER TRAINING REPORT IS NOT BEING SUBMITTED TO ANY OTHER UNIVERSITY FOR AWARD OF ANY OTHER DEGREE, DIPLOMA AND FELLOWSHIP.

ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, behaviour, and acts during the course of study. I express my sincere gratitude to DR JAYSHREE SURESH worthy DEAN for providing me an opportunity to undergo summer training at HDFC BANK, CORPORATE SECTOR. I am thankful to Mr NAVEEN VICTOR for his support, co-operation, and motivation provided to me during the training for constant inspiration, presence and blessings. I also extend my sincere appreciation to MR.R.SHANMUGAM who provided his valuable suggestions and precious time in accomplishing my project report. Lastly, I would like to thank the almighty and my parents for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work.

JEBASINGH EDWARD. K

CONTENTS

About HDFC
Date of Establishment-08 1994

Revenue Market Cap Corporate Address

Management Details

Business Operation Background

Financials Company Secretary Bankers Auditors

0 ( USD in Millions ) 1360896.82696875 ( Rs. in Millions ) Hdfc Bank House,Senapati Bapat Marg,Kamala Mills Compound Lower Parel (West)Mumbai-400013, Maharashtra www.hdfcbank.com Chairperson - C M Vasudev MD - Aditya Puri Directors - A N Roy, Aditya Puri, Anami N Roy, Arvind Pande, Ashim Samanta, Bobby Parikh, C M Vasudev, Gautam Divan, Harish Engineer, Jagdish Capoor, Keki Mistry, Pandit Palande, Paresh Sukthankar, Partho Datta, Renu Karnad, Sanjay Dongre, Shailendra Bhandari Bank - Private The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. The Housing Development Finance Corporation (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, a Total Income - Rs. 325300.466 Million ( year ending Mar 2012) Net Profit - Rs. Million ( year ending Mar 2012) Sanjay Dongre No Bankers Details in A.R Haribhakti & Co

Companys history
The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. The Housing Development Finance Corporation (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1416 branches spread over 550 cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank also has a network of about over 3382 networked ATMs across these cities. The promoter of the company HDFC was incepted in 1977 is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares ( ADS ) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange. On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower. In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank

COMPETITORS:

Company
h

Sales Current Change P/E Market 52-Week (Rs.Million) Price (%) Ratio Cap.(Rs.Million) High/Low
272863.52 335426.52 580.90 939.40 0.56 26.34 1.03 16.58 1360896.83 1071893.57 588/400 1084/641

HDFC Bank ICICI Bank Kotak Mahindra Bank Axis Bank Indusind Bank

61802.36

597.30

0.34 40.74

442014.57

606/411

219946.47 53591.93

1057.95 344.50

2.22 10.11 0.33 20.05

428770.41 160960.89

1367/785 352/222

Yes Bank Centurion Bk of Punj Federal Bank ING Vysya Bank Karur Vysya Bank J&K Bank Bank of Raj South Indian Bank Standard Chartered City Union Bank Karnataka Bank Devp Credit Bank Lakshmi Vilas Bank

63073.58 12685.30 55583.92 38568.08

361.65 41.40 446.65 381.55

0.72 13.01 0.00 52.93 0.07 9.83

127087.89 78932.68 76347.05 55945.91

389/231 43/41 480/322 383/275

2.47 12.26

32703.73 48355.77 13594.89 35834.25

438.50 936.00 212.10 25.10

1.00 -0.97 0.00 0.80

9.28 5.70 0.00 7.04

46567.61 45818.79 34222.35 28260.31

479/322 1010/645 214/207 28/20

63524.25

100.15

0.10

1.17

24012.00

109/69

16967.74

53.70

-0.46

7.87

22069.32

55/39

31128.77

99.50

5.63

7.21

17737.12

128/64

7169.69

45.55

2.59 19.40

10685.83

66/31

15192.56

80.35

-1.47

7.43

7953.23

130/74

Product Name Year Month

Interest/Discount on Advances / Bills 2012 03

Sales Sales % of Quantity Value(Rs.Million) STO

0.00 205366.01 0.00

Income from Investments Interest on balance

2012 03

0.00

65045.89

0.00

with RBI and Other 2012 03 Inter-Bank Funds Others Interest/Discount on Advances / Bills Income from Investments Interest on balance with RBI and Other 2011 03 Inter-Bank Funds Others 2011 03 2012 03 2011 03

0.00

1371.41

0.00

0.00 0.00

1080.20 150850.11

0.00 75.70

2011 03

0.00

46754.42

23.46

0.00

1480.83

0.74

0.00

196.76

0.10

BACKGROUND The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBIs liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. PROMOTER HDFC is Indias premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. BUSINESS FOCUS HDFC Banks mission is to be a World Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the banks risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Banks business philosophy is based on four core values: Operational Excellence, Customer Focus, Product Leadership and People. CAPITAL STRUCTURE As on 31st March, 2012 the authorized share capital of the Bank is Rs. 550 crore. The paidup capital as on the said date is Rs. 469,33,76,540 (234,66,88,270 equity shares of Rs. 2/each). The HDFC Group holds 23.15 % of the Bank's equity and about 17.29 % of the equity is held by the ADS / GDR Depositories (in respect of the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 30.68 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4,47,924 shareholders. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

AMALGAMATION OF TIMES BANK & CENTURION BANK OF PUNJAB WITH HDFC BANK On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower. In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. DISTRIBUTION NETWORK HDFC Bank is headquartered in Mumbai. As on March 31, 2012, the Bank has a network of 2544 branches in 1399 cities across India. All branches are linked on an online real-time basis. Customers in over 800 locations are also serviced through Telephone Banking. The Banks expansion plans take into account the need to have a presence in all major industrial and commercial centres, where its corporate customers are located, as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing / settlement bank to various leading stock exchanges, the Bank has branches in centres where the NSE / BSE have a strong and active member base. The Bank also has a network of 8913 ATMs across India. HDFC Banks ATM network can be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express Credit / Charge cardholders. MANAGEMENT Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas, including Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength. TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the banks branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multibranch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of core banking software, the Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled. The Bank has prioritised its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share. BUSINESS PROFILE HDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business segments: Wholesale Banking The Banks target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the banks Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. Retail Banking The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2011, the bank had a total card base (debit and credit cards) of over 16.6 million. The Bank is also one of the leading players in the merchant acquiring business with over 120,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

ABOUT CORPORATE BANKING

Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in India, a wide array of commercial, transactional and electronic banking products. We achieve this through innovative product development and a well-integrated approach to relationship management. Large Corporates We offer blue chip companies in India, a full range of client-focused corporate banking services, including working capital finance, trade and transactional services, foreign exchange and cash management, to name a few. The product offerings are suitably structured taking into account a client's risk profile and specific needs. Based on our superior product delivery, industry benchmark service levels and strong customer orientation, we have made significant inroads into the formal banking consortia of a number of Indian companies including multinationals, domestic business houses and prime public sector companies. Funded Services Working Capital Finance Bill Discounting Export Credit Non Funded Services Letter of Credit Collection of Documents Value Added Services Syndication Services Real Time Gross Settlement Cash Management Services Channel Financing Corporate Salary Accounts Reimbursement Account Bankers to Right/Public Issue Internet Banking Supply Chain Management Corporate Internet Banking Supply Chain Partners At HDFC Bank we create Supply Chain Finance solutions that enable our clients to automate supply chain management resulting in operational efficiency and supply chain gains. Our vast array of services and supply chain solutions help in seamless transfer of funds, faster delivery of goods and reduction of processing costs. And all this from our website or our revolutionary service. Dealer Finance Vendor Finance Short Term Finance Structured Finance Term Lending Bank Guarantees

Forex Desk Money Market Desk Derivatives Desk Employees Trusts Cash Surplus Corporates Tax Collection Online payment of Gujarat VAT Payment Gateway Services

OBJECTIVES OF THE STUDY

TO UNDERSTAND THE WORKINGS OF THE BANK TO LEARN THE DESK JOB PRACTICALLY TO TAKE A STUDY ON THE MULTINATIONAL COMPANIES TO HAVE A CONVERSATION WITH THE FINANCIAL MANAGERS OF THE SELECTED MNCS TO FIND OUT WHAT KIND OF ASSISTANCE THEY REQUIRE FROM CORPORATE BANKS TO DATA MINE THE INFORMATION BASED ON ITS AREA AND REVENUE TO INTERPRET THE DATA TO GIVE SUGGESTIONS ON EXPANSION PLANS TO KNOW ABOUT THE COMPANIES FINANCIAL STATUS.

INTRODUCTION WHY DID MNCS COME TO INDIA?

There are a number of reasons why the multinational companies are coming down to India. India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India. For quite a long time, India had a restrictive policy in terms of foreign direct investment. As a result, there was lesser number of companies that showed interest in investing in Indian market. However, the scenario changed during the financial liberalization of the country, especially after 1991. Government, nowadays, makes continuous efforts to attract foreign investments by relaxing many of its policies. As a result, a number of multinational companies have shown interest in Indian market.

PROFITS OF MNCS IN INDIA

It is too specify that the companies come and settle in India to earn profit. A company enlarges its jurisdiction of work beyond its native place when they get a wide scope to earn a profit and such is the case of the MNCs that have flourished here. More over India has wide market for different and new goods and services due to the ever increasing population and the varying consumer taste. The government FDI policies have some how benefited them and drawn their attention too. The restrictive policies that stopped the company's inflow are however withdrawn and the country has shown much interest to bring in foreign investment here. Besides the foreign directive policies the labour competitive market, market competition and the macro-economic stability are some of the key factors that magnetize the foreign MNCs here. Following are the reasons why multinational companies consider India as a preferred destination for business: Huge market potential of the country FDI attractiveness

Labor competitiveness Macro-economic stability

MULTINATIONAL CORPORATIONS
Multinational corporation(MNC) or transnational corporation(TNC) or multinational enterprise(MNE)or multinational organisation (MNO) It is a corporation or business entity or enterprise that manages production establishments or delivers services in atleast two countries Types of MNCs Multinational corporation MNCs are often divided in 3 broad groups: Horizontally integrated MNCs Vertically integrated MNCs Diversified MNCs Multinationals have played an important role in globalisation. Given their international reach and mobility, many countries . and sometimes regions within countries. And sometimes compete with each other to have MNCs locate their facilities and Subsequent Tax Revenue, Employment and economic activity within them. WHAT INDIA OFFERS One billion plus population India ranked 10th largest economy, 4th largest in terms of purchasing power parity 250-300 million middle class Gross Domestic product growing at over 8-9%, makes it one of the fastest growing economies in the world Lucrative and diverse opportunities for U.S. exporters with the right products for services Easier access to capital

POLICIES THAT HELPED MNCS GROW IN INDIA FDI Policy: Most sectors including manufacturing activities permitted 100% FDI Under automatic route Industrial licensing: Licensing limited to only 5 sectors(security, public health &

safety considerations) Exchange control: All investments are on repartition basis. Original investment, profits and dividend can be freely repatriated Taxation: Companies incorporated in India treated as Indian companies for taxation Convention on Avoidance of double Taxation with 72 countries including Korea.

FACTORS THAT ATRACT MNCS IN INDIA Economic liberalisation The economic policy reforms The Indian innovation system after 1991 Government support for technological innovation Geographical clustering

About Korean companies in India:

IndiaSouth Korea relations has been relatively limited, although much progress arose during three decades. Since the formal establishment of the diplomatic ties between the two countries in 1973, several trade agreements have been reached: Agreement on Trade Promotion and Economic and Technological Cooperation in 1974;

Reason for the growth of Korean companies

China's remarkable success in manufacturing is the result of a strategy to win, as was the growth of the other Asian industrial powerhouses, Japan and South Korea. Having built its manufacturing base, China is scaring the world with its strategy to build 'indigenous innovation'. India too has announced its intention to strengthen innovation. An innovation strategy must be closely intertwined with a manufacturing one. Science results in innovations when ideas are converted into real things that people can use. Therefore, it is not surprising that China's strategy to stimulate 'indigenous innovation' includes policies about what must be manufactured in the country, what the ownership of these enterprises must be, and what ownership rights these enterprises must have on the technologies used in their products. Indian policymakers are dancing around the same issues. The idea of an industrial strategy evokes fears of returning to a planned economy. India must be open to foreign investments and new technologies from abroad. But they must result in jobs, innovations, and manufacturing depth in India. Appropriate receptors are required within a developing economy to absorb foreign technology. The receptors are production organisations in the host country that use the technology to produce things for the market - domestic or export. Merely an R&D lab as a counterpart to a foreign R&D lab will not result in the absorption of technology. Indeed, even domestic R&D labs require production organisations to convert their ideas into usable innovations: hence the need for strong industry-lab partnerships. The quality of the industrial partner in the host country and its ambitions to learn, apply, and improve the technologies determines whether the technology is well absorbed or not. This has been empirically established by studies of the growth of technological capabilities within developing countries, including Indian experience in the auto and pharma industries. The local partner must have an 'industrial' orientation, not merely a 'trading' one: a long-term ambition to create an institution with technical depth, not merely an ambition to sell things and make quick profits. Therefore it is not surprising that absorption most often happens in private sector companies, which have ambitions to prove that 'it can be done in our country, and we will some day do it even better than you'. This is the spirit that drove the Japanese and Korean industrialisation strategies. In the absence of enough such private sector companies, governments turn to PSEs as the reliable receptacles for receiving the foreign technologies, which is the case in China. Indian strategy should wean itself away from PSEs. However, for India to succeed in strengthening 'indigenous' innovation, our policymakers must consider the question of who are good receptors.

Organizational Structure for Research by Korean companies

Content And Main organizational sub-unit Companies

Hyundai Heavy R&D Headquarters, Shipbuilding & Ocean Research Institute, Industrial Research Institute, MachineElectricity Institute, Techno Design Institute Planning & Coordination Office, Automobile development Institute (3 locations), Power train Development Institute, Design & Test Institute; in L.A., Detroit, Chiba in Japan, Germany, Sweden,

Role of sub-unit

Global Local research institute in Local research institute in Hungry & Russia. Employ foreign manpower in drawing unit No foreign researcher in domestic institute

Under the Headquarter 4 institutions are working independently

Hyundai Motor

Manage and Coordinate domestic and abroad institutions, R&D priority setting,

Contents and companies

Main organizational sub-unit

Role of sub-unit

Globalization of R&D

LG Chemical

In LG Chem Research Park, Corporate R&D(New Biz Incubation Unit, Core Technology Platform, Process Innovation) and Business Unit Institute(Information Electronic Materials, Battery Tech Center, Industrial Material, Petrocemicals)

Direction of Business Unit Institute(Cash Cow role): In house R&D and Joint Venture. Corporate R&D Institute: Find New Business Seed, Acquire World Best Core Tech

Local research institute and operation Satellite lab in the USA Liaison office in Russia & Europe. 10 foreign researchers in domestic institute

LG Electronics

LG Electronics Institute of Technology as a central Research institute and several Culture Unit(CU) in several business units

Cash cow business(Home appliances): Business related Innovation, LGEIT: Future oriented new business

Local research institute in the USA & India. M&A or establish local start-up company. Few foreign researcher Research activities of 20 teams comprise development of core parts, engineering analyses, and test & evaluation.

Hyundai Mobis

Technical Research Institute consist of 20 team

Decision Process of Strategy of Korean companies

Contents
Hyundai Heavy

Decision Process of Strategy

Project Management

Make a Long-Term business Forecast 20% of projects are from in each business unit every later half of researchers free idea, by the year. Decide corporate level strategic planning is the rest. strategy in technology policy meeting(with the review of the council of Technology Development, members are CTO, business unit technology executive directors, president of each institute). Set up corporate strategy for 10 years and revise it each year. After completion of long-term products planning, make a development plan, and make a plan of each research institutes role and function Select development model through various process including a review of deliberation of products council. Under the authority of project manager projects of each development stage are managed comprehensively and systematically. Apply stage gate method to project management. Invite business unit persons to take design review in each stage.

Hyundai Motor

Samsung Electronics

Long term technology strategy document exists. Select research topic from new technology (or product) map. For the selection of project related to current business, discuss topics with business unit every 3 month. For basic research, researchers hand in self-report and checked by self-control inside of institute.

Contents
LG Chemical

Decision Process of Strategy

Make an alignment process of corporate strategy on corporate level. Reflect technology strategy in Corporate strategy to develop new technology and new market opportunity. Use scenario planning method, technology road map, technology portfolio Long term technology strategy and a year plan is decided by business technology strategy meeting every year. Conesus building process by regular meeting with business unit Set up target technology by top-down and bottom up process. Focus on building up core technology capability in automobile module business and aerospace business On the criteria of customer needs and opportunity of future value Strategy is decided by investment council consists of executive directors

LG Electronics

Hyundai Mobis

Iljin

Research Methodology for collecting the informations.

The Korean trade centre Interview with the General Manger of the Korean trade centre Questionnaire Informal interview with the financial manager of the MNCs Just dial Search engines (Google, ministry of corporate affairs)

KOREAN MULTINATIONAL COMPANIES IN TAMILNADU

Hyundai Motor India Ltd. JKM DAERIM AUTOMOTIVE LIMITED DAESUNG Electricity Dae-Jung Mop arts Pvt. Ltd DONG-A INDIA AUTOMOTIVE PVT.LTD MANDO Visteon Automotive Systems India Private Ltd TSAL (Technical Stampings Automotive Limited) SHINHAN PLASTO INDIA PRIVATE LTD Asian PPG Industries Limited SL LUMAX LIMITED WOORY AUTOMOTIVES INDIA Pvt.Ltd. Wonjin Autoparts India Pvt. Ltd. IN-JI Controls India INFAC INDIA ILJIN AUTOMOTIVE PRIVATE LIMITED. JOIL AUTOMOTIVE PUT.LTD JINO SYSTEM INDIA Pvt.Ltd. PHC MFG(P) LTD. POS-HYUNDAI STEEL FG.(I) PVT. LTD HANIL LEAR INDIA PVT. LTD HYUNDAI HEAVY INDUSTRIES CO., Ltd. IHD INDUSTRIES PVT. Ltd HIS AUTOMOTORS. LTD

Hwashin Automobile India Pvt. Ltd. DAECHANG INDIA SEAT MOBIS INDIA LTD. SNY AUTO TECH PRIVATE LIMITED KIML (Kyungshin Industrial Motherson Ltd.) Yushiro Buhmwoo (India) Company Private Limited Sodiff India Materials (P) Ltd ENNORE FOUNDRIES LTD AENEAS APPARELS PVT. LTD. Korea international business corp. KORINDO WORLD ENTERPRISES PVT LTD Glovis India Private Limited Korean Air LOM LOGISTICS EUKOR Car Carriers Inc. (India) Geodis Overseas Pvt. Ltd Hanjin Shipping H&FRIENDS GTL PVT. LTD DM WALL SYSTEM C0. (P) LTD Amco India Construction Pvt. Ltd

GERMAN MULTI-NATIONAL COMPANIES

German Companies in India

India Brand Equity Foundation (IBEF) commissioned KPMG to undertake a study to capture the experiences of German companies in India. A useful guideline for MNCs seeking to enter India, this report synthesises the insights and strategies of top German companies with an established presence in India. India is a large and growing market. More than 80 per cent of the companies stated that India is a large market with significant growth potential.

India is emerging as a global manufacturing hub

65 per cent of the manufacturing companies included as part of the study have established manufacturing facilities in India and 30 per cent are planning to setup a manufacturing base in the near future.

India is a services hub

German companies in India have successfully leveraged the advantages that India offers to set up R&D facilities and Business Process Outsourcing (BPO) operations.

Future Outlook
German companies are positive about the future outlook of India and plan to strengthen their presence here. Their plans are in line with the role they envisage India to play in their global strategy.

Indo-German Business Overview

Till date, the economic relations between India and Germany have been strategic in nature. Both countries are democracies with a federal-structure and share a broad range of similar values as well as common views on international issues. Their ties which have traditionally been close and amicable are predominantly characterized by intensive co-operation in the field of economy. Economic relations between these two countries date back to the 16 century. In fact, between the 16 and 18 century, several German companies were established

to trade with India and other East Asian countries.

India and Germany- An Economic OverviewThe Indian Economy India with its recent 'trillion dollar economy' status has
seen remarkable economic growth over the last couple of years. Last fiscal, India registered a growth rate of 9.4 percent, making it the second fastest growing economy after China. Interplay of economic reforms combined with sound policy regime, favourable demographics and increased integration with the world economy, have been the prime drivers of this stupendous economic development. With positive indicators such as consistent 8-9 percent annual growth, rising foreign exchange reserves of close to USD 220 billion, a booming capital market, increasing Foreign Direct Investment (FDI) inflows of USD 15.7 billion in this fiscal, and more than 30 percent surge in exports, it is not hard to fathom why India is a leading destination for foreign investment. The Indian economy is expected to remain strong this year, driven by booming investment and consumption. The government's eleventh five-year plan (200712) has an ambitious target of 9 percent average annual growth. The German Economy As Europe's largest economy and second most populous nation, Germany is a key member of the continent's economic, political, and defense organizations. After a long period of stagnation, with an average growth rate of 0.7 percent from 2001-05 and chronically high unemployment, heightened growth has led to a considerable fall in unemployment to about 7 percent at the end of 2006 . The German economy is expected to grow by 2.8 percent in 2007. In the near future, domestic demand is expected to make a stronger contribution to growth as compared to the recent past,

as investment remains stronger and private consumption recovers.

Bilateral Trade
India and Germany are important partners on the international stage. In recent years, the political bilateral relations have intensified considerably. Bilateral exchanges, including at the highest level, are a regular feature of the relationship. Chancellor Merkel visited India on May 31, 2011 to co-chair the first Indo-German Intergovernmental Consultations (IGC). Several important Ministries like the Ministry of Foreign Affairs, Interior, Economics & Technology, Defense, Environment; Education & Research and Transport from both the countries participated in the IGC and discussed ways and means of further intensifying our bilateral cooperation in these sectors. Four important MoUs in the field of vocational education and science & technology were signed during the visit. Chancellor Merkel was awarded the Jawaharlal Nehru Award for International Understanding for the year 2009, during the visit. PM and Chancellor Merkel discussed a wide range of bilateral and global issues and decided to coordinate their efforts towards UN reforms, including efforts to secure permanent seats in the extended Security Council.India and Germany have a strategic partnership since 2001, which has been further strengthened with the first Intergovernmental Consultations (IGC) held in May 2011. India is the first country in Asia (besides Israel,) and the only country outside Europe to have Intergovernmental Consultations with Germany. The two countries also have several institutionalized arrangements like a Strategic Dialogue,Foreign Office Consultations, Joint Commission on Industrial and Economic Cooperation, Defense Committee Dialogue and a Joint Working Group on Counter- Terrorism to discuss various bilateral and global issues of interest.Germany is Indias largest trading partner in Europe. Indo-German bilateral trade has registered an increase of 20.8% to reach Euro 15.18 billion during Jan-Oct 2011. Indian exports grew over 25.93% over the same period of 2010 to reach Euro 6.37 billion, while its imports registered an increase of over 17.39% to reach Euro 8.81 billion. The trade surplus is in favour of Germany of aboutEuro 2.44 billion. Both countries are confident that the target of achieving bilateral trade of Euro 20 billion by 2012 can be met.

Indo-German bi-lateral trade has crossed EUR 10 billion mark in 2006 Indian imports from Germany has jumped by 52 percent in 2006 Indian exports to Germany showed a healthy increase by 22.9 percent in 2006 Today Germany is India's fourth largest trading partner (after U.S., U.K. and Japan) Germany's trade with India accounts for just over 0.5 percent of Germany's total trade thus there's ample room for much growth Textiles and leather remain the thrust areas within the composition of Indian exports to Germany, followed by food items, chemicals, electro technical Products, pharmaceuticals and machinery. Important German exports to India are machinery (one third of the share of the

total German exports to India), electro technology as well as plants and metal Products. Also on the list are plastics and plastic products chemicals and Pharmaceuticals, and automobile products and components.

Some of the major German companies in India

Abicor Binzel Bajaj Allianz Bayer Braun Medical Carl Zeiss DMG Henkel Lahmeyer International Schuler Suspa Pneumatics Zwick Roell

Adidas Marketing Basf Beiersdorf Burgmann Daimler Chrysler Durr Kluber Lubrication Lapp Steag Encotec Wurth

Baerlocher Additives Baumuller Bosch Group Carl Bechem DHL Express Fichtner Knorr Bremse Pharmaplan Stollberg Zeppelin Mobile Systems

German companies in Tamilnadu and Kerala

AGIS AWECA INDIA PVT LTD ALLIANZ ALPIC INDUSTRIAL RISK MANAGEMENT SERVICES ALTEK BEISSEL NEEDLES LTD ANAND ZENNER CO.RIT.LTD ASHOK LEYLAND LTD BABCOCK BORSIG POWER BAER SHOES INDIA PVT LTD HANRAG-LAEIS MACHINE TEC PVT LTD HENKEL SPIC INDIA LTD HENSEL ELECTRIC INDIA PVT LTD HOCHTIEF INDIA PVT LTD HTL LTD MICROCIRCUITS AND SOFTWARE TECHNOLOGIES PVT LTD INDIA RADIATORS LTD INVENTA TECHNOLOGIES PVT LTD IVL INDIA PVT LTD KAUTEX TEXTRON INDIA PVT LTD KERALA MANUFACTUM PVT LTD KLOSE ANTRIEB PVT LTD KOB MEDICAL TEXTILES PVT LTD KURINJI ORGANIC FOODS INDIA PVT LTD LAKSHMI AUTOMATIC LOOM WORKS LTD LAKSHMI MACHINE WORKS LTD LAKSHMI SYNTHETIC MACHINERY MFRS LTD LEATHER CRAFTS INDI PVT LTD L & T-DEMAG PLASTICS MACHINERY PVT LTD LUK INDIA PVT LTD MAGNA INDIA LTD

MAGNETIC METER SYSTEMS INDIA LTD MAN TAKRAF INDIA PVT LTD

Findings
Since India is a hub for MNCs, many banks will be desperate to have relationship with them. But through this project I was able to get the financial informations from the top MNCs in Tamil Nadu and also I was able to get the details about procurement of raw materials capex and expansion plans, the companys relationship with banks and also about their financial year turn over.

Research Methodology for collecting the informations.

The German chamber of commerce Met the Manger of the German chamber of commerce and listed down the companies from the chambers directory. Questionnaire Informal interview with the financial manager of the MNCs Just dial Search engines for address and other details (Google, ministry of corporate affairs and fun do data).

CONCLUSION:
The main purpose of this project is to give financial assistance to the multinational companies.This was done by collecting the list of mncs that are sitiuated in Tamilnadu and kerala.I mainly focussed on the Korean and the German mncs.This study was kind of a research where the data collected was mined and refined according to the companys paid up

capital.So this will help the bank to have relationship with the top companies. Since the companies lists were kept very confidential by the chambers, various sources of research methods were used to find out the list of mncs. The analysed and interpreted list helped to collect the financial status of the companies. So this project was mainly focussed to give a different source of financial assistance from the bank to the companies apart from their existing financial relationships with other banks.

ANNEXURE

QUESTIONNAIRE
THIS QUESTIONNAIRE WAS PREPARED FOR THE FINANCIAL MANAGERS OF KOREAN AND GERMAN MULTINATIONAL COMPANIES FOR THE DATA EXPLORATION WORK.

1. 2. 3.

NAME OF THE FINANCE MANAGER WHO ARE YOUR SUPPLIERS? WHERE YOU PROCURE YOUR RAW MATERIALS? a) PARENT COMPANY b) DOMESTIC COMPANY

4. 5. 6. 7. 8.

WHAT IS THE CREDIT PERIOD GIVEN? WHAT ARE THE BANKS YOU DEAL WITH? WHAT KIND OF RELATIONSHIP YOU HOLD WITH THEM? DO YOU HAVE ANY CAPEX OR EXPANSION PLANS? WHAT IS YOUR TURNOVER FOR FY11 and FY12?

KOREAN AND GERMAN EXCEL SHEET

jeba excel (1).xlsx (ctrl + double click the link )