Multinational Companies in India (MNC)
About Multinational CompaniesLet’s begin with the meaning of an MNC. A multinational company or corporation (MNC) is a company that manages its operations, production or service delivery 'from' and 'to' more than one country. Apart from playing an important role in globalisation and international relations, these multinational companies even have notable influence on a country's economy (both home and host) as well as the world economy.
In turn, India also derives a lot of benefits from MNCs such as higher level of investment, reduction in technological gap, optimum utilization of natural resources, reduction in foreign exchange gap and boost to basic economic structure. But roses do not come without thorns. So there are certain disadvantages of having MNCs in a developing country like India like competition to SMSI, increased pollution and environmental hazards, improper diffusion of profits and Forex imbalance, slow decision making and sometimes economic distress. But these don’t overcome the gains of having MNCs.
In India, a large number of MNCs are operating. So, here we have compiled a list of a couple of major MNCs in India:
List of Top 10 MNCs
|Microsoft Corporation||Nokia Corporation|
|Procter and Gamble||International Business Machines (IBM)|
Microsoft CorporationMicrosoft Corporation was founded in Albuquerque, New Mexico, on 4th April 1975 by Bill Gates and Paul Allen. Its head offices are in Redmond, Washington. Bill Gates currently operates as its Technology Adviser, John W. Thompson is the Chairman and Satya Nadella is its CEO. Its major products and services can be enumerated as below:
Microsoft Corporation India is one of the top subsidiaries of Microsoft Corporation in terms of growth. Microsoft India began its journey in 1990 and then, it grew gradually during the years that followed. India is currently acknowledged as one of the up-and-comers in the world of knowledge economy and Microsoft India has played its inevitable role in the same. The company feels that in order to sustain a decent level of economic growth, it is essential to constantly update a country’s technological capabilities. In India, Microsoft is a major partner of the national government as well as the information technology setup within India.
It also works closely with developers as well as academic sectors. The organisation is always looking for ways to make India’s development more inclusive than before. It has associated with the Indian Government to take IT all across the country in the form of e-governance solutions and Microsoft’s Global Citizenship Charter. It is looking to get more access to the disadvantaged communities in India so as to create a society that is more inclusive. It is trying to achieve this by providing technology access to as many people as possible and focusing on areas such as skill development and education.
As of now, Microsoft India has six important business units that represent its complete product cycle and serve different kinds of customers such as consumers, corporations, governmental bodies and gamers. These companies may operate in an independent manner, but they have certain levels of connection and play important roles in the success and growth of each other. They are mentioned below:
- Microsoft Research India (MSR India)
- Microsoft Services Global Delivery
- Microsoft India Development Center (MSIDC)
- Microsoft Corporation India Pvt. Ltd. (MCIPL)
- Microsoft IT
- Microsoft India Global Technical Support Center (GTSC)
Nokia CorporationNokia is one of the leading names in the world of network infrastructure and technologies based on locations. It deals in advanced technologies as well. Its head offices are in Espoo, Finland and it operates around the world including India. The prime area of focus for Nokia is to create technologies that will lead the way to the future. Nokia’s business can be categorised into three main sectors. Nokia Networks deals with infrastructure business. It focuses on the business of location intelligence. Nokia Technologies develops technologies and performs activities related to intellectual property rights. It is through these businesses that Nokia has carved out a global presence.
Nokia Corporation employs almost 57,000 people. It also invests a lot into research and development in all its business sectors. In 2013, this amount had gone up to €2.5 billion. Till a few days back, Nokia was also a major name in the market for mobile devices. These products and services were provided via the devices and services arm. During September 2013, it entered into an agreement with Microsoft where the entire division was sold to the latter. The deal was sealed on 25th April 2014.
The company was founded at Tampere, the Grand Duchy of Finland in 1865 by Leo Mechelin and Fredrik Idestam. Its Chairman is Risto Siilasmaa and its President and CEO is Rajeev Suri. Timo Ihamuotila serves as its CFO. In 2014, its revenue stood at €12.73 billion and its operating income was €1.63 billion. In the same year, its net income was €1.17 billion and its total asset worth was €21.06 billion. Its total equity for that year was €8.67 billion.
NestleNestle is one of the top names in the world of food and beverages across the world. Its focus is on providing the very best in healthful and tasty food segment to its consumers all over at each and every stage of their lives and at any time they please. It has been in existence for more than 140 years and operates in at least 197 countries. In 2014, it earned CHF 91.6 billion in sales. Its operating income for that year was CHF 10.90 billion and it earned profits of CHF 10.02 in 2013. In 2013, its assets were worth CHF 120.44 billion and its total equity was CHF 64.14 billion. It employed 3,39,000 people in various capacities in 2014. Its objective is to be the top name in the world of nutrition, wellness and health.
The company was founded by Henri Nestle, George Page and Charles Page as Anglo-Swiss Condensed Milk Company in 1866. Its head offices are at Vevey in Vaud, Switzerland. At present, its Chairman is Peter Brabeck-Letmathe, its CFO is Wan Ling Martello and its CEO is Paul Bulcke. It has more than 2,000 brands across the world in the following product segments and more:
|Baby Food||Dairy Products|
|Bottled Water||Pet Food|
Coca ColaOne of the leading global brands in beverages, Coca Cola offers its complete portfolio of products in India with drinks, energy drinks, juices, tea, packaged water and coffee. Coca Cola offers more than 3,500 beverages around the world. It employs 25,000 people for system-related operations in India. It also has 1,50,000 indirect employees. Together with its franchisees, Coca Cola has 56 bottling plants in India. In addition, it has 21 contract packers that make various products for the company. In its 35 years of existence in India, Coca Cola has done well financially and played a major role in the economic growth of India. It has also played a major role in the innovation that has taken place in the country’s beverage sector.
Coca Cola was founded in 1886. The company was established by Asa Griggs Candler and Candler and John Pemberton created the beverage. Its head offices are in Atlanta, Georgia. Muhtar Kent serves as its CEO and Chairman and Ahmet Bozer is its Executive Vice President. In 2013, its revenues stood at US$ 46.854 billion and its operating income was US$ 10.228 billion. Its net income in the same year stood at US$ 8.584 billion and its total assets were worth US$ 90.055 billion. Its total equity stood at US$ 33.44 billion. As of December 2013, the company had 1,30,600 employees.
Procter and GambleProcter and Gamble is one of the top names as far as consumer goods are concerned. It was founded in Cincinnati, Ohio, on 31st October 1837 by William Procter and James Gamble. Its head offices are located in Cincinnati. It operates all over the world with the exception of Cuba. Alan George Lafley is its Chairman, CEO and President.
P&G India is a part of Procter and Gamble. It is one of the leading FMCG companies in India in terms of growth. It was started in 1964 and caters to more than 650 million people across the country. It operates in a wide array of segments such as beauty and grooming, health and well-being and household care. Its major brands may be enumerated as below:
|Vicks||Head & Shoulders|
P&G has been able to carve out a dominant position for itself in most of the product categories by the dint of its technological innovations and product propositions. It has also professed a commitment to achieving sustainable growth, social responsibility through community development and environmental protection in India. At present, it has more than nine contract manufacturing sites and five plants across India. It has 26,000 direct and indirect employees. It also has three business entities in India. One of them is the wholly-owned subsidiary of Procter & Gamble Home Products, which is the parent company based in the U.S. The others are Gillette India Limited and Procter & Gamble Hygiene and Health Care Limited.
In 2014, Procter and Gamble earned revenues of US$ 83.06 billion and its operating income stood at US$ 15.29 billion. Its net income for the year was at US$ 11.64 billion and its total asset worth was US$ 139.26 billion in 2013. In 2013, it had 1,21,000 employees all over the world.
IBMIBM or International Business Machines Corporation is a leading name in the world of computer hardware, software and IT consulting. It was founded by Charles Ranlett Flint in Endicott, New York. At present, its head offices are in Armonk, New York. It operates across 170 countries. Ginni Rometty serves as its Chairman, CEO and President. In 2014, it earned approximate revenue of US$ 92.793 billion and its operating income was US$ 19.996 billion. Its net income in the same year was US$ 12.023 billion and its total assets were worth US$ 117.53 billion. Its total equity was worth US$11.868 billion. It has 3,79,592 employees.
PepsiCoOne of the top names in the world of beverages, PepsiCo is headquartered in Purchase, New York. It was founded in 1896 at New Bern, North Carolina by Donald Kendall and Herman Lay. At present, its products, including its most famous brand Pepsi and its chips, can be found all over the world including India. Its present CEO and Chairman is Indra Nooyi. In 2013, its revenue amounted to almost US$ 66.415 billion and its operating income was US$ 9.705 billion. Its net income in the same year was US$ 6.74 billion and its total assets were worth US$ 77.478 billion. Its total equity in 2013 stood at US$ 24.389 billion. In the same year, it had 2,74,000 employees.
Sun PharmaceuticalSun Pharmaceutical is probably one of the leading pharmaceutical companies of India. It was founded in 1983 by Dilip Shanghvi and its head offices are in Mumbai. At present, its Chairman is Israel Makov and Dilip Shanghvi operates as the Managing Director. Apart from pharmaceuticals, it deals in generic drugs. In the 2013-14 fiscal, it earned revenue of US$ 2.6 billion and its operating income was US$ 1.1 billion. In the same period, its net income was US$ 900 million and the aggregate worth of its assets was US$ 2.2 billion. In the 2013-14 fiscal, its total equity stood at US$ 4.7 billion. As of March 2015, it had 32,700 employees.
Sony CorporationThis multinational conglomerate was founded on 7th May 1946 in Tokyo by Akio Morita and Masaru Ibuka. At present, its headquarters are in Minato, Tokyo and its European head offices are in Surrey, England. It operates around the world including locations such as the following:
|King of Prussia||Huntington Station|
|New York City|
At present, its President and CEO are Kazuo Hirai and Osamu Nagayama, the Chairman of the Board. It operates in a wide range of product and service segments such as the following:
|Financial Services||Credit Finance|
|Video Games||Telecom Equipment|
In 2014-15, it earned revenues amounting to ¥8.215 trillion and its operating income stands at ¥68.5 billion. Its net income in the same fiscal stands at ¥126 billion and its total assets are worth ¥15.834 trillion. Its total equity for the year stands at ¥2.317 trillion. As of 31 March 2015, it had 1,31,700 employees.
CitigroupCitigroup is one of the leaders when it comes to financial services and banking. It was founded on 16 June 1812 and its predecessors were Travelers Group and Citicorp. Its head offices are in Manhattan, New York. It operates around the world. Its CEO is Michael L. Corbat and its Chairman is Michael E. O’Neill. It offers a number of products such as the following:
|Credit Cards||Corporate Banking|
|Global Wealth Management||Private Equity|
|Consumer Banking||Investment Banking|
In 2014, its revenue was US$ 76.88 billion and its operating income was US$ 14.36 billion. Its net income in the same year was US$ 7.31 billion and its total assets were worth US$ 1.89 trillion. Its total equity for that year stood at US$ 210.5 billion. In the same year, it had 2,43,000 employees. Following are its major subsidiaries:
|Citi Securities & Banking||Salomon BIG|
|Banamex||Citi Branded Cards|
|Nikko Citigroup||Sedna Finance|
|CitiMortgage||Citi Private Bank|
Notes – Currency symbols used in the above article:
US$ - Dollar (the United States of America)
¥ - Yen (Japan)
€ - Euro (Finland)
CHF - Franc (Switzerland)
Last Updated on July 8, 2015