The India Bharat Conundrum - How MNCs Can Win in India? by BIMTECH students Barkha Chaturvedi, Rabia Monga and Shalini Arya

1. 1

2. 2

3. India: Urban
Bharat: Rural
Difference:
Present in our
country since
Independence
Under the British
Rule:
Development of
areas: where the
resources were in
abundance
Areas where scarcity
of resources: left
untouched
Aim- To try &
curb this
difference by
giving power,
work
opportunities to
Rural India &
work for their
betterment as
well
3

4. Investment in
infrastructure, 100
smart cities
Make in India Initiative
& Digital India
Plan to reduce corporate
tax rate from 30% to 25%
Ease of Doing
Business
Stable Political &
Social Environment
Talent Pool
FDI
Policies 4
Is the fastest
growing
economy in
the world
Ranked 10th
internationally
for factory
output
Ranked 15th
for services
output

5. Foreign Direct Investment:
Limit increased from 49% to 100% through automatic route
Technology Transfer:
India: lacks in technology
MNCs transfer high technology which is essential for increase in
productivity
Investment in Infrastructure:
Will help create income & employment for Indian economy in
untouched sectors like infrastructure
Export Hub:
India: Producing products effectively & having links in R.O.W
might become an export hub
E.g.: Maruti Suzuki
5

6. 1700-1800
MNCs in form of trading
companies
Hudson Bay, East India
Company & French Levant
Company were major
transnational companies
established in those days
3 phases in the growth of MNCs
Products are now being
marketed abroad as well, by no
other than MNCs who developed
these FMCG goods to suit Indian
tastes in the first place
1st phase lasted upto the First
World War. Captured mostly
by the European companies-
Imperial Tobacco, Dunlop,
Siemens, & Philips
2nd phase: American
MNCs such as General
Motors, Ford Motors &
IBM emerged on the
world scene
3rd phase of the growth of
MNCs began since 1970s &
belonged to the European,
German and Japanese
MNCs
6

7. • Difficult land acquisition
• 24*7 electricity
• Quality roads/highways/ports
Infrastructure
• Retrospective taxation (E.g. Vodafone
Case)
• Complex taxation between center & states
Uncertain
Regulatory/Policy
Issues
• Political parties don’t want to upset their
traditional voter base (FDI in single brand
retail)
• Lack of center-state-co-ordination
Political Issues
• Limited autonomy for top MNC managers
Global “Parent
Strategy” dictates
India’s plans 7

8. With limited branch footprint, the success factor of this
bank is the electronic and digital solutions that sets
it apart
Innovate approach to target the rural market, grab
it, increase the sales & build awareness
360-degree support to the farmers through assured
buy back of their produce at pre-agreed prices
Introduction of this leading company of I.T in India &
Innovation being the key
Cereal eating new concept for India & even
the attempt to ‘Indianize’ the products with
Masala variants didn’t work out too well
The failure being the 3 A’s- Android, Apple
& Adaptation
Bad networking & struggling with various
management issues, which contributed hugely
towards their failure
No innovation, no transition, no
sustaining as well 8
Source: Forbes List

9. Ability to Adapt
Global,
Repeatable
Models to
Support Local
Innovation
MNCs need to
leverage their global
scale, & compete in
the Indian market,
but need to adapt
locally to be able to
win
Competition
Analysis
Realize that
underestimating
your competition
or overestimating
your strengths are
some of the first
anti-business
practices
A granular
understanding
of the market
opportunity—
not just ‘We
must be in
India’—should
feed into the
assessment
Need to create
a road map to
deliver results &
developing
local
partnerships
9

10. 10
Source: IBEF Data
Defence
100%
Single Brand
Retails
100%
Multi Brand
Retail
51%
Telecommuni
cations
100%
Health Care
100%
Education
100%
Infrastructur
e
100%
Renewble
Energy
100%
Agriculture
100%

11. Contributes
4.43% to the
global
renewable
generation
capacity
Expanded at a
CAGR of 9.14%
National
highway
construction in
India increased
by 20% year-on-
year in 2017-18
Expanded at a
CAGR of 13.6%
Infrastructure
Renewable
Energy
By Year 2040, around 49%
of the total electricity will
be generated by the
renewable energy
Renewable will create
employment opportunities
at all levels, especially in
rural areas
To create employment of
321 Crore man-days, build
more than 3 lakh km of
rural roads & 51 lakh new
rural houses
To provide Wi-Fi facility
to 550,000 villages by
March 2019
11
Source: IBEF Data

12. Expected to
reach US$
101.1 billion
in FY19
Growing
with a CAGR
of 8.54%
EducationHealthCare
India offers vast opportunities
in R&D as well as medical
tourism
Ayushman Bharat Yojana
Launched on April 2018 by PM
Modi for creating a network of
health and wellness across the
nation
Jawahar Navodaya Vidyalayas
through collaboration with
Samsung— Govt. run
alternative schools for rural
children
By 2030, India’s higher
education will adopt
informative & innovative
approaches in education
Expected to
touch US$
372 billion
by 2022
& record a
CAGR of
16.28%
12
Source: IBEF Data

13. 13
Real Estate
Health
Education
InfrastructureDefence
Retail
E.g.
Walmart &
IKEA
Telecommun
ications

14. 14

15. THANK YOU 15