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RAJKUMAR MNCs in India, Why MNCs in India? RAVINDER SINGH What MNCs want?, What has India gained?, Problems bought by MNCs RAVI KUMAR PEPSICO IN INDIARAJESH KUMAR GUPTA COCA –COLA IN INDIARAJKUMAR RASTOGI COPARISON B/W PEPSI & COKE

FOREIGN MNCS IN INDIA AND PEPSICO VS COCA-COLA

Multinational Companies (MNCs) or Transnational Corporations(TNCs)are the organizations or enterprises that manage production or offer services in more than one country .

MULTINATIONAL COMPANIES

India has been the home to a number of multinational companies. In fact, since the financial liberalization in the country in 1991, the number of multinational companies in India has increased noticeably.

FOREIGN MNCS IN INDIA

Coca Cola Company, Dell, Ford Motors , Google,(USA) LG, Hyundai , Samsung (South Korea)Sony, Hitachi, (Japan) Virgin, British Petroleum ,Vodafone, HSBC, (UK)Nokia (Finland) Nestle (Switzerland)

There are a number of reasons why the multinational companies are coming down to India. India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India. • Huge market potential of the country• FDI attractiveness • Pool of Cheap & skilled labour • Fastest growing economies

WHY MULTINATIONALS IN INDIA

Strong protection Favorable treatment Low taxes & regulations Right to establish, without burdensome red tape Right to move employees in and out, To move capital in and out Uniform standards across countries

What multinational companies want?

Work culture for employees.

Creation of job and career opportunities

Technology

Culture and Ethos.

What has India gained?

Improve in balance of payments.

Net increase in FDI.

Greater availability of products.

R&D Outsourcing – Pharmaceuticals, Engineering, IT, Telecom

Host country is likely to lose its economic sovereignty.

Host nation may lose some loss of control over its own economy.

Very less new additional manufacturing units.

Loss of culture .

PROBLEM BROUGHT BY MNCs

Coca-Cola, the corporation nourishing the global community with the world’s largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nation’s top soft-drink brand and bottling network. It’s no wonder our brands have assumed an iconic status in the minds of the world’s consumers.

COKE IN INDIA

A Healthy Growth to The Indian EconomyEver since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels.

Coca-Cola India is among the country’s top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations.

A Pure Commitment to The Indian EconomyThe Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental in giving an exponential growth to the country’s job listings.

Creating Enormous Job Opportunities

With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system.

The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network of 21 contract packers manufacture a range of products for the Company.

PepsiCo India

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.

Incorporated is a Fortune 500, American multinational corporation headquartered in Purchase, NY.Manufacturing and marketing a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. Their main product, Pepsi Cola, sells over 100 billion cans a year.Besides the Pepsi-Cola brands, the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7-Up (outside the USA).

PepsiCo

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006.

During her time, healthier snacks have been marketed and the company is striving for a net-zero impact on the environment.

This focus on healthier foods and lifestyles is part of Nooyi's "Performance With Purpose" philosophy.

Indra.k. NooyiChairman and CEO PepsiCo

Founded New Bern N.C, U.S. (1890)

FoundersCaleb Bradham, Donald M. Kendall and Herman W. Lay

Headquarters Purchase, New York, U.S.

Area served Worldwide

Key peopleIndra Nooyi(Chairperson and CEO)[1]

PepsiDiet PepsiMountain DewAMP EnergyAquafinaSierra MistSoBeStarbucks FrappuccinoLipton Iced Tea7upMirindaIzzeTropicana ProductsCopellaNaked JuiceGatoradePropel Fitness WaterQuaker Oats CompanyLay'sDoritosCheetosKurkureFritosRold GoldRufflesTostitosSlice

Products

Beverages

  PEPSICO INDIA’S EXPANSIVE PORTFOLIO INCLUDES ICONIC REFRESHMENT BEVERAGES PEPSI, 7 UP, NIMBOOZ, MIRINDA AND MOUNTAIN DEW, IN ADDITION TO LOW CALORIE OPTIONS SUCH AS DIET PEPSI, HYDRATING AND NUTRITIONAL BEVERAGES SUCH AS AQUAFINA DRINKING WATER, ISOTONIC SPORTS DRINKS - GATORADE, TROPICANA100% FRUIT JUICES, AND JUICE BASED DRINKS – TROPICANA NECTARS, TROPICANA TWISTER AND SLICE. LOCAL BRANDS – LEHAR EVERVESS SODA, DUKES LEMONADE AND MANGOLA ADD TO THE DIVERSE RANGE OF BRANDS.

PepsiCo’s food division, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG.

It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The company’s high fiber breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers.

Frito Lay’s core products, Lay’s, Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

Food

Revenue ▲ US$43.2 Billion (FY 2009)

Operating income ▲ US$8.04 Billion (FY 2009)

Net income ▲ US$5.95 Billion (FY 2009)

Total assets ▲ US$39.8 Billion (FY 2009)

Total equity ▲ US$16.8 Billion (FY 2009)

Employees 185,000 (2008)

DivisionsPepsiCo Americas (PepsiCo Ameri Food, PepsiCo Americas Beverages), PepsiCo International

Website PepsiCo.com

EstablishmentPepsiCo established it's business operations in India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

InvestmentPepsiCo India and its partners have invested more than USD1 billion since the company was established in the country.

EmploymentPepsiCo India provides direct and indirect employment to 150,000 people including suppliers and distributors.

Coca-Cola and Pepsi are the two most popular and widely recognized beverage brands in the world. Within their lineup of beverages, Pepsi-Cola and Coca-Cola Classic are the predominant carbonated cola beverages.

VS

BASIS OF COMPARISONContents:TasteSweetnessCarbonationBrand war Marketing approachAdvertisementsLocal competitorsEmployees plant & machineryconclusion

Brand WarBoth drinks are no longer seen as a beverage but mainly as a brand. Both companies commit heavily to sponsoring outdoor music festivals and even charitable projects in third world countries,

Marketing ApproachBoth Coca-Cola and Pepsi try to market as part of a life-style. Coca-Cola uses phrases such as "Coke side of life" in their website, while Pepsi uses phrases such as "Hot stuff" in their website, to promote the idea that Pepsi is "in sync" with the cool side of life. Pepsi tries to reach out to the younger generation by appealing to pop culture. If you visit their website you will be greeted with flashy pages containing pop music, cars, and fashion. Coca-Cola's website also has links for music and sports, two arenas in which soda-pop is often consumed; however, Coca-Cola's is less flashy and uses a classical appeal, most likely because of Coca-Cola's long history as the standard for cola beverages

Advertisements Coca-Cola has Amir khan featured in their commercials, while Pepsi has Ranvir kapoor .

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