MAJOR

GLOBALIZATION
INITIATIVES
FROM INDIAN
COMPANIES
By,
RAMKUMAR.K

GLOBALIZATION

Globalization is the process which enables the

geographical, social, cultural, political and
economic movement internationally more
easily.

Globalization refers to growing economic

interdependence among countries as reflected
in increasing cross-border flows of three types
of commodities: goods and services, capital,
and know how

ENTRY STRATEGY FOR

GLOBALIZATION OF COMPANIES

Exporting ( Direct or Indirect)

Licensing

Franchising

Contract manufacturing/ International

subcontracting

Strategic Alliance

Joint ventures

Wholly owned subsidiary

Mergers & Acquisition

The Elements of
Globalization :
Globalization of Markets:
It refers to the merging of national markets into one huge global marketplace.

Globalization of Production:
It refers to the sourcing of goods and services from locations around the
world to take advantage of national differences in the cost and quality of
factors of production.

Falling
Barriers
Investment:

to

Trade

and

The falling of barriers to international trade enables firms to view the world
as their market.

Technological Innovation:
Technological changes have achieved advances in communication,
information processing, and transportation technology, including the Internet
and the World Wide Web.

INDIAs GDP GROWTH

RATE

FACTORS DETERMINING IN
BUILDING GLOBAL COMPANIES

POLITICAL FACTORS

Stability of the government

Type of government
- Democratic
- Theocracy (religious)
- monarchy ( kingdom)

Control structure
Canada, USA ( decentralized province)
Japan, France( centralized)

POLITICAL FACTORS

Government take over of asset(with or without

permission)

Operational restriction

Remittance/ Repatriation restrictions

Government policies

Opposition parties, pressure groups, external linkages

Economic factors

Economic system ( open / mixed)

Economic development

Standard of living( per capita income)

Sectorial share in GDP

Foreign Exchange reserves

Economic indicators( inflation rate, BOP)

Technological factors
Differentiation
Competitive

strategy

advantage

Legal factors

Home country laws

Host country laws

International lawsUN resolutions, Patents &

Trademark protection & piracy laws, GATT, codes of
conduct

ITC
SUBSIDIARIES
ITC Infotech

Surya Nepal Private Limited

Landbase

King Maker Marketing Inc.,

USA

Technico Pty Limited.

Australia

JOINT VENTURES
Maharaja Heritage
Resorts Ltd.

ITC Filtrona

Russell Credit Limited

ASSOCIATE
COMPANIES

Wimco Limited

Srinivasa Resorts Limited

Gujarat Hotels
Limited

Fortune Park Hotels Limited

Bay Islands Hotels Limited

International Travel
House

ITC INFOTECH

The company services industries including,

Banking Financial Services & Insurance (BFSI),
Consumer Packaged Goods (CPG), Retail,
Manufacturing, Engineering Services, Media &
Entertainment,
Travel,
Hospitality,
Life
Sciences and Transportation & Logistics.

Ranked amongst Top 10 Specialty Application

Development Providers - Global Services, CMP
Media

ITC CIGARETTES
Market Value
The Indian tobacco market grew by 8.9% in 2012
to reach a value of $11.6 billion.
Market Value Forecast
In 2013, the Indian tobacco market is forecast to
have a value of $14.9 billion, an increase of
29.4% since 2008.

MAHINDRA
MAHINDRA AND
MAHINDRA
Their
global
presence means
that you can find
Mahindra vehicles on
the
roadsboth
paved and unpaved
of
Australia,
Europe,
Latin
America,
Malaysia,
and South Africa.
And they are seeking
out
new
terrain
every day

MAHINDRA FORGINGS

Theyare
one
of
the
largestand
most
technologically
advanced
manufacturers of forged and
machined components in the
world. They create parts like
links,
knuckles,
spindles,
shafts,
crankshafts,
camshafts, pistons, ball joints,
and stub axles that are used
in automotive, agriculture,
railway, mining, construction
and
other
industries
throughout the world.

MAHINDRA
MAHINDRA SATYAM

TECH MAHINDRA

Sathyam is a global playerin

the global Information,
Communication, and
Technology (ICT) space.They
provide enterprise business
solutions, infrastructure
services, industry native
solutions, integrated
engineering solutions,
consulting services,
application development and
management services, and
business process outsourcing
to more than 350 clients in 35
countries.

Since commencing operations in

1986
as
a
joint
venturebetweenMahindra
and
British Telecom (BT), they have
become one of Indias largest
software exporters and ranked No.1
in the Telecom Software Category
(Voice & Data 2010-11). For over
two decades, they have been the
chosen transformation partner for
wireline, wireless and broadband
operators in Europe, Asia-Pacific
and North America. We operate in
more than 30 countries through 17
sales offices and 13 delivery
centers, working with major players
like British Telecom, Vodafone,
among others

INFOSYS

Infosys is a global leader in consulting, technology and

outsourcing with revenues of US$ 7.231 billion

Infosys
provides
business
consulting,
technology,
engineering and outsourcing services to help clients in over
30 countries build tomorrows enterprise.

Infosys and its subsidiaries have 155,629 employees as on

Dec 31, 2012.

INFOSYS

Infosys takes pride in building strategic longterm client relationships. 97.5% of our
revenues come from existing customers

Infosys has aglobal footprintwith 67 offices

and 69 development centers in US, India,
China, Australia, Japan, Middle East, UK,
Germany, France, Switzerland, Netherlands,
Poland, Canada and many other countries.

DABUR

Dabur has a special herbal health care and personal

care range successfully selling in markets ranging from
the Middle East, Far East, North Africa and Europe

Inroads into several European and American markets

that have good potential due to resurgence of the
back-to-nature movement

Export of Active Pharmaceutical Ingredients (APIs),

manufactured under strict international quality
benchmarks, to Europe, Latin America, Africa, and
other Asian countries

Export of food and textile grade natural gums,

extracted from traditional plant sources

Acquisition

TATA

Corus Group (U.K.)

Tata Steel, one of the leading steel producers

in India, acquired Corus Group for U.S. $12.11
billion ( 8.5 billion) on January 31, 2007

This acquisition is considered to be one of the

biggest foreign acquisitions by an Indian
company, and after this only TATA Steel came
out to be the fifth largest steel producer in the
whole world.

TATA

Jaguar Cars and Land Rover (U.K.)

Tata Motors has acquired bothJaguar and Land

Rover, which are two iconic British brands with
worldwide growth prospects

This deal was for a whooping U.S. $ 2.3 billion

with Ford, the previous American owners.

The deal was effective from May 2008. The

deal is seen as yet another endeavor of the
fast growing Indian industries, also the latest in
a string of foreign acquisitions by Tata.

Bharti Airtel

Zain Africa

Bharti Airtel had acquired Zain Africa for a

value of U.S. $10.7 billion. The acquisition
gives Bharti Airtel a total customer base of 180
million, including 131 million subscribers it had
in India at the end of April

By expanding its business outside the country,

Bharti Airtel can in the long term benefit from
economies of scale, including getting better
deals from suppliers

Aditya Birla

Novelis (U.S.)

Has acquired the entire stake in the Atlanta

based aluminium company Novelis for U.S. $6
billion

This company had separated from Alcan, a

global aluminium company

ONGC

Imperial Energy (U.K.)

Oil and Natural Gas Corp (ONGC) has acquired

Imperial Energy. This deal was for 1.3 billion
pounds (U.S. $1.9 billion).

The company owed the acquisition to

government support, which in the past seven
years increase its number of projects to 39 in
17 countries, from just a single project in
Vietnam

Essar Steel Global

Algoma Steel (Canada)

Ruias owned Essar Steel Global acquires the

Canadiansteelcompany Algoma Steel at a
valuation of Canadian $1.85 billion.
Essar Steel Holding, Essar Group's overseas
investment arm made the investment possible
and easy. Algoma would definitely provide Essar
an excellent platform for the Canadian and North
American market

Reliance

Marcellus Shale

Reliance, led by Indian billionaire Mukesh

Ambani, got the right to buy 40 percent of all
new Marcellus Shale leases that Atlas acquires,
after this purchase acquisition and agreement
was completed.

Acquisition summary
Company

Acquisition

Price ($m)

Reliance Industries

Flag Telecom, Bermuda

Trevira, Germany

212
95

Tata Motors

Daewoo, Korea

118

Infosys Technologies

Expert Information
Services, Australia

3.1

Wockhardt

CP Pharmaceuticals, UK

18

Cadila Health

Alpharma SAS, France

5.7

Hindalco

Straits Ply, Australia

56.4

Wipro

NerveWire Inc, US

18.5

Aditya Birla

Dashiqiao Chem, China

8.5

United Phosphorus

Oryzalin Herbicide, US

21.3

Bharat Forge

Carl Dan Peddinghaus Gmbh, Germany

28

Ranbaxy

RPG Aventis, France

80

THANK
YOU