Indian Business prior to

Independence
 Indian businesses prior to Independence

• The emergence of Industrial groups in

Bombay and Calcutta
• Growth of Joint Stock companies
• Saga of Textile Industry
• Infrastructure and Engineering, Irrigation
The emergence of Industrial groups in Bombay and Calcutta

• Reversal of Roles
• Rise of Agency Houses
• Messengers of change
• Managerial Failures
• Lasting contribution
 Joint Stock Company
Definition

A joint stock company is a voluntary association of individuals

for profit, having its capital divided into transferable shares.
A company is an incorporated association of persons formed
usually for the pursuit of some commercial purpose.
As per Section 3(1) of Indian Companies Act, 1956, a
company means a company formed and registered under this
Act or an existing company.
Existing company means a company formed and registered
under any of the previous company laws.
History of Joint Stock Companies
In modern history (1600), the earliest recognized company was
the British East India company, was one of the most famous joint-
stock companies.
Up to 1834, the Company had pursued a policy of keeping other
European companies away in India.
In 1602, the Dutch East India Company issued share on the
Amsterdam Stock Exchange.
Granted a charter by King James I in 1606, the Virginia Company
was a joint-stock company created to establish settlements in
America. This is a seal of the Virginia Company, which established
the first English settlement in Jamestown, Virginia, in 1607.
At the end of March, 1900, 1340 companies were operating in
India.
Some Joint Stock Companies in the history
of India

1786 – General Bank was established.

1806 – Another bank – the Bank of Calcutta – was formed.
Insurance on modern lines started in India during the
eighteenth century. One of the earliest was the Calcutta
Insurance Company in 1798.
1822 – Oriental Insurance Company was founded in Calcutta.
By 1851, there were 25 insurance companies.
1839 – Assam Company was constituted in England with the
object of setting up tea plantations.
1854 – saw the beginning of the first truly national industrial
enterprise when Covasjee Davar started a textile mill in
Bombay.
 Some Joint Stock Companies in the history of
India

In 1856, the British Parliament passed an Act allowing companies,

except the banking and insurance ones, to be formed on the
principles of limited liability, and this example was followed in
1857 by the Indian Legislature.
1823 – East India Company set up an ordinance factory in Bombay.
A large banking company was registered in Bengal – the Hong
Kong and Shanghai Banking Corporation Limited. It was the only
company whose capital was registered in India in a foreign
currency.
1895 – The Bharat Insurance Company Limited was registered and
it had been set up with the help of Lala Lajpat Rai and Lala
Harkishan Lal.