Indian MNCs

Abstract

The specter of Indian organizations making a mark on the world stage looms large over the world. With the Indian economy picking up pace, and breaking out of the Hindu rate of Growth1 of the 70s, the inherent competitiveness in the economy is rubbing off on Indian firms that wish to broaden their horizons. For long, protected by a socialist regime, with import substitution being the norm, Indian firms, chose to cool their heels at home. Protected as they were, from competition from private players within India, let alone from abroad, Indian firms did not have the drive or the courage to foray abroad. But things change and they have in India. With the liberalization of the economy came competitive elements from the world over and the Indian industries have had to sharpen their game. As a first step, most Indian industries have had to increase the efficiency of their operations to match up to global competitors. For example, the automobile industry particularly the two – wheeler segment was long the preserve of Bajaj Auto. But, the demand far overshot the supply2 and hence Bajaj Auto never felt the inclination to produce high quality vehicles. With the new competitive free market forces leading to an influx of Japanese competitor, such as Honda, Bajaj Auto have had to sharpen their game. They have done so and how! The next step in this game of cat and mouse is Indian organizations going global. Having established their competitiveness in India against foreign competitors, Indian firms now chose to attack them in their own turf. Do most Indian organizations have the where withal to do so? Or are they merely chicken feed for the larger international players? Where do Indian MNCs strengths lie? What must be the entry strategy of an Indian MNC? Are there any racist pressures involved? Would developed nations balk at the idea of a third world country making a dent in their turf? Can Indian companies assimilate seamlessly with the foreign culture? Can they gain acceptance in foreign shores? These and many more are some of the questions that we seek to address during the course of this study.