How MNC’S Can Win in India?

In this intensely competitive market, where survival of any company is at stake and to make a
profit in this competition, the company has to explore itself globally so that the margin of profit
remains constant and increase at an increasing rate. Based on the same, the concept of
multinational came to an existence where the company having their origin in one country and
running their pursuit in more than one country.

A multinational corporation (MNC) is a corporate organization that owns or controls

production of goods or services in at least one country other than its home country. It is
incorporated in one country (called the home country); but whose operations extend beyond the
home country and which carries on business in other countries (called the host countries) in
addition to the home country. The headquarters of a multinational company are located in the
home country. Basically, a multinational corporation owns and manages business in two or
more countries. These companies are giants in terms of money as well as in terms of brand
image and their goodwill.

But, there is one constraint in this respect that is it needs the platform to grow, that’s why India
is one of the fastest growing economies in the world which provide an excellent opportunity for
the company to grow and survive in this competitive market. Due to the potential, capability and
India’s fastest growing economy, many of the multinational companies are coming to India to
extend their business.

Here is a list of Top 10 MNC companies in India these are the best MNC’s companies in India.

Apple Inc.: Apple Inc. is the one of the renowned multinational companies of the world. It is
an American Multinational company with the headquarters located in California. The company
was founded by a well-known developer, Steve Jobs in 1976. The company is famous for its
technology products and devices like laptops, phones and software’s. It is the 10th most popular
MNC in India because of its electronic devices like iPhone, iPod, iPad and Macs.

Hewlett Packard (HP): An American electronic multinational company stands on rank

number 9th on the top multinational companies of India. It also has headquarters located in
California, USA. The Information Technology Company was founded in the year of 1939. It
famous for its hardware, software, laptops and various electronic devise and also for its services
to its customers.
Sony Corporation: The company is placed on top 8th rank in the list of top 10 multinational
companies in India. It is a multinational company from Japan and was founded in 1946. It
features services in the sectors of entertainment like music and electronics. Sony was started in
1994 in India and got quickly the attraction of Indians because of its reliable products like
phones, PlayStations etc.

Citi Group: The company of banking and financial interests is the 7th most popular MNC in
India. It is an American Multinational company with located headquarters in New York. Citi
Group has more than 40 branches all over the India and its network in 150 countries all across
the world.

Pepsi Co: Another American multinational Company in the list, Pepsi Co. was established in
1965 and is famous worldwide because of its snack foods and beverages. Pepsi Co is also
operating in India that is famous for its popular brands like Pepsi, Dew, Slice and Lay’s making
it top 6th brand of the India.

Coca Cola: An American Beverage Company, Coca Cola stands on number 5th in the list of top
10 multinational companies in India with the headquarters in Atlanta, Georgia. It was founded
in the year of 1886 and since then manufactures famous beverages like Coca cola, sprite, Maaza
etc.

Procter & Gamble: Commonly known as P&G, is an American Multinational Company which
is famous for its globally produced goods. It was established in the year of 1837 and it was
founded in India in 1964. The company in India produces more than millions of products and
serves more than 600 million customers in India.

Nestle:On the top 3rd rank is the Nestle India, which is a Switzerland based multinational
company. It was established in Switzerland and continued its debut in India in the year of 1921.
Some of the products like Nescafe, Maggi, Kit Kat, and Nestle Milk etc. are famous products of
this MNC.

IBM: IBM is the second most popular Multinational Company of India. It is an American MNC
that was started in India in 1992. It has become a leading IT company in India on the basis of
market capitalization.
Microsoft: A most-known MNC in the world, Microsoft was founded in the year of 1975 by Bill
Gates. It was started in 1990 in India and is the top company in India providing OS for Laptops,
PCs, tablets etc.

Source : https://www.ideaherald.com/top-10-multinational-companies-mnc-in-india-902/

WHY MNCs COME TO INDIA ?

With globalization, trade barriers have come down and business giants have spilled across the
world. Emerging economies have been their lucrative markets. With flaring global interest in
Indian economy and its huge consumer base, many Multi-National Companies (MNCs) have
started foraying there to extract the maximum market share. Some viewed India as a high
potential market, while others wanted to exploit it as a low-cost manufacturing base. It has also
got one of the fastest growing economies in the world.

POPULATION GROWTH: By 2030, India’s middle class is expected to grow to reach 475
million. The increase of the middle class means that more of the population will be able to afford
the goods sold by the companies moving operations to India.
India is the second most populated country in the world. It is projected to overtake China and be
the most populated country in the world by 2025.
TALENT POOL: One of the biggest assets of India is the youth and the growth of its young
population. With 1.2 billion people with median age of 24 years, the country is an attractive
market for companies abroad both with respect to a strong domestic market and a skilled labor
base. The largest base of young population in the world makes India an attractive destination for
companies with strong expansion plans

Indian minds and the quality of the country’s educated manpower has ensured that global
research majors come to India in significant numbers and shore up the quality of Indian R&D,
for its fruit to be used both nationally and internationally.

For India it is the quality of available talent that has created a mark in the global space in the
software, services industries. India possesses one of the greatest potential - the Democratic
government that formulates various policies to benefit the common people of the country. To
improve the livelihood, provide better facilities for the citizens the GOI is always committed to
invest more and more. Therefore all these factors have actually made India a place full of
opportunities not only in the services sector but also in the manufacturing domain.

Companies increasingly need to source low skill and high skill workers. India has a strong
educational systems which emphasizes English language skills, managerial and technical skills.
Additionally, India has a large enough population that MNCs can rely primarily on local workers
leading to increased productivity and greater efficiency and thus creating an advantage over the
competitors.

FDI: The policy of the government towards FDI has also played a major role in attracting the
multinational companies in India. The government FDI policies have somehow benefited them and
drawn their attention too. For quite a long time, India had a restrictive policy in terms of foreign
direct investment. As a result, there was lesser number of companies that showed interest in
investment. As a result, there were a lesser number of companies that showed interest in
investing in Indian market. However, the scenario changed during the financial liberalization of
the country, especially after 1991. Government, nowadays, makes continuous efforts to attract
foreign investment by relaxing many of its policies. As a result, a number of multinational
companies have shown interest in Indian market. ‘Make in India’ campaign of India’s Prime
Minister Narendra Modi is an opportunity for all the MNCs all over the world to establish their
businesses in India.

PROFIT: It is too specify that the companies come and settle in India to earn profit. A company enlarges its
jurisdiction of work beyond its native place when they get a wide scope to earn a profit and such is the case of the
MNCs that have flourished here.
More over India has wide market for different and new goods and services due to the ever increasing population
and the varying consumer taste.

HIGH OUTPUT CENTER : With the help of Make in India drive, India is on the path of
becoming the hub for hi-tech manufacturing as global giants such as GE, Siemens, HTC,
Toshiba, and Boeing have either set up or are in process of setting up manufacturing plants in
India, attracted by India's market of more than a billion consumers and increasing purchasing
power. India is the location of manufacturing many industries and is ranked 10th internationally
for factory output. The country is also ranked 15th for services outputs.

For years, India was linked with cheap processing and outsourcing work. Today, an increasing
amount of the work is in big data and analytics, mobility, artificial intelligence, machine
learning, internet-of-things (IoT), block chain and robotics. These new digital technologies are
becoming drivers of business, creating new sources of revenue for the MNCs, not just reducing
costs or improving productivity.

Buoyant economy, regulatory reforms has made India the most preferred market for
outsourcing business among more than 75% multinational companies, says the CBRE survey.
“India’s buoyant economy, steady progress in enacting regulatory reforms and booming
outsourcing sector, coupled with a growing talent pool continues to make it an attractive
outsourcing destination,” CBRE (India and South East Asia) chairman Anshuman Magazine
said.
As per the findings, Bengaluru, Mumbai and Delhi NCR have emerged as the most preferred
destinations for expansion by the companies. It also noted that with IT firms in Bengaluru
growing larger, an increasing number of companies are opting to expand in tier II cities such as
Chennai and Hyderabad, which offer more space to choose from, lower operating costs and
rapidly improving infrastructure.
Corporations need engineers to re-do their technology infrastructure and build innovative
solutions, and India is the on the only place where they can get them in the numbers and quality
required.

Source : https://www.livemint.com/Industry/a03aMTtXH7IZdaMu0Wq0kJ/Over-75-MNCs-
prefer-India-for-outsourcing-report.html

https://www.researchgate.net/publication/281280263_MULTINATIONAL_COMPANIES_IN
_INDIA_-AN_ANALYSIS

https://www.ibef.org/download/fdi-110213.html

https://www.slideshare.net/AnkushBagotra/multinationals-in-india-57120739

There are a few key factors which distinguish MNC winners in India.

First, winning companies make a bold long-term commitment to India. They are financially
ambitious about the long term but realistic in assessing the level of investment required to win
in a challenging context. A granular understanding of the market opportunity—not just ‘we must
be in India’—should feed into the assessment. For, despite recent improvements, India
continues to present unique challenges: It still ranks low in the World Bank’s ease of doing
business index, even below neighbors like Nepal and Sri Lanka. Successful MNCs acknowledge
this and develop strategies to cope with it. ABB Ltd, for example, explicitly made India a top
priority and ensured that senior global heads held active positions in the Indian board to
facilitate faster decision-making.

Second, companies tailor their offerings to suit the needs of Indian consumers. When Hyundai
entered the Indian marketplace, it dedicated an India-specific team to understanding the
country’s context. It realized there was a huge market for an alternative to the Maruti 800 and
changed the market-entry vehicle from the Accent to the Santro. The Korean car maker
introduced local modifications such as higher ground clearance and replaced angular lines with
rounded ones in keeping with Indian tastes. It found success quickly.

The third key success factor is the ability to adapt global, repeatable models to support local
innovation. MNCs need to leverage their global scale, which gives them the right to play and
compete in the Indian market, but need to adapt locally to be able to win.
GlaxoSmithKline Plc. (GSK), for example, has a global scale in cutting-edge research and
development, excellent products and typically uses a large, global distribution model. Such a
model would have been extremely difficult and costly in India. Hence, it developed a customized
rural-based model, aiming to reach tens of thousands of villages. GSK has its salespeople go to
rural medical practitioners to spread product and health awareness and take in
recommendations from local doctors.

That relates to the importance of building strong local talent. A local workforce allows MNCs to
retain autonomy and respond speedily to a rapidly changing marketplace. HUL is a case in
point. It places significant emphasis in developing and grooming future leaders. More than 400
CEOs in India and abroad have HUL on their CVs.

Finally, global multinationals need to create a road map to deliver results by balancing corporate
discipline with a local entrepreneurship mindset and developing local partnerships. Such a
mindset is essential for speed of action: MNCs need to move at India’s pace and cannot be
continually going back and forth with global headquarters to take decisions. Most MNCs are up
against nimble, founder-led domestic businesses which are extremely agile. They cannot allow
global bureaucracy to strangle their potential in India. LG Corp., for example, empowers local
management to take key decisions, enabling quicker action.

Equally important are local partnerships, which are crucial to gaining knowledge of and access
to the local market. Take Cummins Inc. It built a successful roadmap via joint ventures (JVs) in
India—such as those with Tata Motors Ltd and Crompton Greaves Ltd—to become the country’s
leading manufacturer of diesel and natural gas engines. In fact, Cummins has JVs around the
world; it is its distinctive capability.

Source : https://www.livemint.com/Companies/t6wKAx4HAhpl4MKwCY1lJL/The-steady-
rise-of-MNCs.html

Rural India : BHARAT

Rural markets continue to represent the bulk of India and multinationals have possibly
understood their worth before Indians. For many MNCs, there is a lot more riding on their rural
India performance than there once was as India's growth story spreads to the heartland. Two-
thirds of the country's one billion consumers live in rural India, where almost half of the
national income is generated.
What may have begun as corporate social responsibility soon got merged with the need to tap
the fortune at what was perceived as the bottom of the pyramid. Rural India today plays a
critical part in multinational technologies and processes in their various forms and not out of
altruism.

Yet now there’s a shift in how MNC look at their entire rural India investments beyond CSR.
With growth drying up in developed markets and their center of gravity shifting to emerging
markets, MNC businesses in India are under pressure to prove that their rural strategies aren’t
just about doing well from a CSR perspective. They also need to show head office that these
strategies are doing well from a business perspective. In short, the strategies must start
delivering top- and bottom-line results.

After years of false starts, missed opportunities and flawed strategies, a number of MNCs’ India
businesses are getting close. Others already are there and are ramping up their rural
investments. None can take that fine balance between doing good and doing business for
granted, as Nokia, Coca-Cola and Max New York Life — among the companies profiled in this
special report — show. And it’s for that reason that at PepsiCo India, “our rural agenda has been
driven by purpose and now is moving into performance,” says Chadha.

The Indian rural market with its vast size and demand base offers a huge opportunity that MNCs
cannot afford to ignore. With 128 million households, the rural population is nearly three times
the urban.

As a result of the growing affluence, fuelled by good monsoons and the increase in agricultural
output to 200 million tonnes from 176 million tonnes in 1991, rural India has a large consuming
class with 41 per cent of India's middle-class and 58 per cent of the total disposable income. The
big reason for the growth is that India’s rural consumers are steadily gaining more spending
power. The number of rural households earning less than US$760 a year is down from 65% to
24% since 1993, while those with an income of US$1,525 have more than doubled from 22% to
46%. Combine these factors with improved roads and other infrastructure in rural India to help
products reach their markets, and it’s easy to see rural India’s attraction. The importance of
the rural market for some FMCG and durable marketers is underlined by the fact
that the rural market accounts for close to 70 per cent of toilet-soap users and 38
per cent of all two-wheeler purchased.
The rural market accounts for half the total market for TV sets, fans, pressure cookers, bicycles,
washing soap, blades, tea, salt and toothpowder, What is more, the rural market for FMCG
products is growing much faster than the urban counterpart. It is, however, the rural impact that
multinationals have had that makes the largest difference.

Source:http://www.indianmba.com/Faculty_Column/FC630/fc630.html
https://economictimes.indiatimes.com/magazines/brand-equity/mncs-looking-at-rural-
india-as-easy-and-ready-mkt-need-to-rethink/articleshow/7101470.cms

Why India should encourage FDI

Foreign direct investment (FDI) is a major source of non-debt financial resource for the
economic development of India. Foreign companies invest in India to take advantage of
relatively lower wages, special investment privileges such as tax exemptions, etc. For a country
where foreign investments are being made, it also means achieving technical know-how and
generating employment.

According to economic survey, FDI service grew by 15%during April –October 2017 and
Government has initiated a FDI push recently. In order to bridge the gap between developed
India and undeveloped Bharat, India attracts FDI. For a decent livelihood, better health,
education, technology, environment etc.

Some of the recent significant FDI announcements are as follows:

 In June 2018, Idea’s appeal for 100 per cent FDI was approved by Department of
Telecommunication (DoT) followed by its Indian merger with Vodafone making
Vodafone Idea the largest telecom operator in India

 In May 2018, Walmart acquired a 77 per cent stake in Flip kart for a consideration of
US$ 16 billion.

Government initiative:

 In January 2018, Government of India allowed foreign airlines to invest in Air India up
to 49 per cent with government approval. The investment cannot exceed 49 per cent
directly or indirectly.
 No government approval will be required for FDI up to an extent of 100 per cent in Real
Estate Broking Services.
  In September 2017, the Government of India asked the states to focus on strengthening
single window clearance system for fast-tracking approval processes, in order to increase
Japanese investments in India.
 The Ministry of Commerce and Industry, Government of India has eased the approval
mechanism for foreign direct investment (FDI) proposals by doing away with the
approval of Department of Revenue and mandating clearance of all proposals requiring
approval within 10 weeks after the receipt of application.
 The Government of India is in talks with stakeholders to further ease foreign direct
investment (FDI) in defence under the automatic route to 51 per cent from the current
49 per cent, in order to give a boost to the Make in India initiative and to generate
employment.
 In January 2018, Government of India allowed 100 per cent FDI in single brand retail
through automatic route.

Role of MNCs in Indian Economy:

Prior to 1991 Multinational companies did not play much role in the Indian economy. In the
pre-reform period the Indian economy was dominated by public enterprises.

To prevent concentration of economic power industrial policy 1956 did not allow the private
firms to grow in size beyond a point. By definition multinational companies were quite big
and operate in several countries.

Since 1991 with the adoption of industrial policy of liberalization and privatization rote of
private foreign capital has been recognized as important for rapid growth of the Indian
economy.

1. Promotion Foreign Investment: MNCs can bridge the gap between the requirements of
foreign capital for increasing foreign investment in India.

2. Technology Transfer: In India, the corporate sector spends only few resources on
Research and Development (R&D). It is the giant multinational corporate firms (MNCs) which
spend a lot on the development of new technologies can greatly benefit the developing countries
by transferring the new technology developed by them. Therefore, MNCs can play an important
role in the technological up-gradation of the Indian economy.

3. Promotion of Exports: With extensive links all over the world and producing products
efficiently and therefore with lower costs multinationals can play a significant role in promoting
exports of a country in which they invest. For example, the rapid expansion in China’s exports in
recent years is due to the large investment made by multinationals in various fields of Chinese
industry.

4. Investment in Infrastructure: The investment in infrastructure will give a boost to

industrial growth and help in creating income and employment in the India economy. The
external economies generated by investment in infrastructure by MNCs will therefore crowd in
investment by the indigenous private sector and will therefore stimulate economic growth.

Foreign direct investment (FDI) will be encouraged and actively sought, especially in areas of

(a) infrastructure, (b) high technology and (c) exports, and (d) where domestic assets and
employment are created on a significant scale.

History of MNC’s in India

The first MNC was East India Company, formed to trade with East, Southeast Asia & India,
which operated from 1600 to 1874.

It was criticized as a form of British Imperialism, especially for monopolistic trading policies &
becoming involved in local politics.

MNC’s in India- Sector wise

Manufacturing
Service Sector
Sector

GE in India- The growth strategies Costa Coffee in India

Hyundai’s “Santro” in India Pizza Hut in India

Dell in India IBM’s growth strategies

Managing Brand Reputation- The case of Coke, Pepsi & Cadbury in India

Electrolux in India

LG- Rural marketing in India

Samsung in India

Case Analysis of MNC’s in India

LG in India

Established in 1997, LG Electronics India (LGEI) is a wholly-owned subsidiary of LG

Electronics, South Korea. It is one of the leading companies of consumer electronics, home
appliances & computer peripherals in India.

Leveraging India’s IT Advantage

LG Electronics has awarded a contract to develop IT solutions to LG Soft India (LGSI). The
project involves development & support for ERP, SCM, CRM & IT- enabled services for LG
Electronics’ 60 overseas subsidiaries & manufacturing facilities worldwide

LGSI has offices in San Jose, London & Seoul with over 300 professionals in the development
facility in Bangalore.

Product Localization Strategy Used by LG in India

LG came out with Hindi & regional language menus on TV

Introduced the low-priced “Cineplus” & “Sampoorna” range for the rural markets

LG always had a positive perception of India & the Indian consumer. It has already made a foray
into the e-commerce market in India & has partnered with various local websites like rediff.com,
fabmall.com, indiatimes.com

What MNCs Do Right and Wrong in Rural India

India’s backward backwaters have been on the forefront of global corporate thinking from past
few years.
Everyone from Toyota Motors to General Electric and Metro has been sending spies into the
subcontinent for the first time to investigate the values of village people.

Rural India is where most of the country lives, but until recently few multinational companies
thought of it as a potential market. Its home to more than 600 million people but very few real
consumers was the thinking.

Unilever first cracked the market in the 1980s with sachets of shampoo and soap that could be
transported easily and sold in the village general store for one rupee each. Few companies could
follow suit though. Delivering anything to villages with no roads or electricity was tough, finding
a product villagers can afford after you add the cost of delivery seemed near impossible. It
looked like it was a market for social products, like microloans, rather than profit.

Then came cellphones- Unprecedentedly low call rates and a nation-wide rollout of new cellular
towers brought what had once been considered a luxury good to the countryside. Even the
cellular companies that were betting billions on the rural market were surprised by the surge in
demand from farmers. The phone companies are still adding more than ten million subscribers
every month. Even though they may spend less than $5 a month on their phones, hundreds of
millions of new rural subscribers add up to real money. These consumers that everyone had
been unable to reach are generating billions of dollars in revenues for the largely foreign-owned
phone companies.

One thing to remember is that rural India has a lot of pockets of wealth. Each village may have a
few relatively wealthy families that can buy most things a city consumer can if you can get to
them.

Many multinationals have tried with mixed success to reach out to these hundreds of millions
who have a bit of cash.

Unilever’s “Shakti Lady” program that has village women going door to door explaining and
selling products has not become as big as Unilever had originally anticipated.

Meanwhile, many a grand plan for Internet country kiosks that would become hubs for product
orders, telemedicine and even entertainment have failed because of bad Internet connections
and power outages as well as computers that could not stand up to rural wear and tear.
Still, there has been an unprecedented convergence of interest from governments, NGOs and
local and multi-national corporations to find new ways to reach out and help the rural consumer
here.

The excitement about rural opportunities has spurred new innovations for products and services
created specifically with the less affluent Indian consumer in mind.
Phone companies have created new services aimed squarely at the hard-to-reach and often
illiterate rural consumer such as dialing up music through your cell phone.
Google is developing online bulletin boards that can be used by villagers that don’t know how to
read or use a computer.
Maruti Suzuki is wooing village elders to sell its cars while Hero Honda has a fleet of service
motorcycles that can reach villages without roads.
The way products are distributed has also required some innovation. Many multi-nationals are
trying to reach rural India through established networks of micro-lending and self-help groups.
They are using women’s groups that gather regularly to borrow money for micro-businesses to
sell everything from cell phones to cow insurance.

German grocery-store chain Metro has tapped SKS Microfinance, one of India’s largest
microlenders, to reach out to closet-sized mom-and-pop stores. The company, which is only
allowed to wholesale in India, delivers groceries to the front doors of the small stores in the state
of Andhra Pradesh after SKS screens them and lends them money.

Another innovation in reaching the rural consumer that seems to be taking off is a kind of rental
model. Most rural consumers can’t afford the money it takes to pay the full amount for some
products that could improve their lives. But they would be willing to rent the products for a
small amount per day.

Few can afford solar lamps, for example, but many can afford to rent them for five rupees a day.
This model not only brings a much-needed product to a less affluent consumer but also creates a
new business in the village.

As in all businesses, many attempts will fail but the few multi-nationals that can find the right
products, price and distribution model to reach these consumers will be tapping into a giant new
market that can only grow.

Source: THE WALL STREET JOURNAL, Article by Eric Bellman

Innovations of Indian MNCs in Global Markets:

Products suited for the Indian market are now being marketed abroad as well, and by no other
than multinational companies who developed these FMCG goods to suit Indian tastes in the first
place. Termed reverse innovation (products originally conceived for developing economies
but now being marketed in other geographies in their original or modified form), the concept is
clearly gaining momentum in the Indian FMCG space.

(i) Hindustan Unilever (HUL) is taking its water purifier brand Pure-it to new global markets.
After launching its home grown brand Pure-it in Indonesia and Bangladesh in 2010, HUL has
recently taken it to key markets in South Asia, Latin America and Africa. Pure-it is currently sold
in Sri Lanka, Brazil, Mexico and Nigeria. HUL is selling Annapurna (salt) in Ghana and Wheel
(detergent powder) in Bangladesh as well. HUL is currently selling its home-grown brand Fair &
Lovely, a skin whitening cream first launched in 1976 in India, in 30 countries across the globe.

(ii) PepsiCo, the second largest food and Beverage Company in the world, is adapting its Indian
innovation Kurkure for western markets. PepsiCo India’s baked crackers brand Aliva and
lemon-flavoured drink Nimbooz are some of the company’s other innovations out of India that
have attracted attention globally and are currently being adapted to suit local tastes in overseas
markets. Due to high bulk and low shelf life, packaged foods and beverages are not ideal for
exporting to global markets, which is why companies like PepsiCo are exporting the concept of
making Kurkure for selling in other markets.

(iii) Likewise, French cosmetics major L’Oreal has taken a slew of its innovations developed in
India, such as Garnier Men Power-Light range of skincare products and Garnier Fructis
Shampoo (with oil), to global markets.

(iv) Yet another multinational, Nestle SA, the Swiss Food and nutrition giant, has taken its
Indian brand, Maggi Masala Noodles, to many markets across the globe. In addition, the
company is planning to take its spice brands specifically developed for Indians, such as Maggi
Pulao Masala (in sachets) and Maggi Masala Magic, to other markets. The company is also
planning to take its Indian brands Maggi Noodle Atta and Maggi pasta soup outside India.

(v) Recognizing the growing significance of Indian innovations, multinationals are increasingly
leveraging India as an ‘innovation hub. In November 2012, Nestle opened its first research &
development Centre in Manesar, close to Nestle India’s headquarters in Gurgaon.
(vi) Like Nestle, L’Oreal inaugurated its new research & innovation (R&I) Centre to study Indian
hair and skin specifications and expectations of Indian consumers two weeks back. L’Oreal plans
to invest a total of Rs. 970 crore in India from 2011 to 2016.

(vii) However, not all Indian innovations have been marketed successfully in the global market.
For instance, Coca-Cola India found it difficult to introduce its acquired Indian brands Limca,
Maaza and Thumps-Up in other markets, as consumers found Maaza and the other brands too
sweet.