Lesser known MNC Companies - Listed in India :

Many companies operate internationally in various countries. These companies are classified as Multi National Companies MNC’s. These companies have various advantages like : Technology edge, operation in multiple counties, strong brand, distribution network, cheaper sourcing etc. They establish their operations in india given its cheap labour or availability of raw mateiral or talent pool or virgin domestic market. Hence operating in emerging markets is more a compulsion than an option for these MNC's.

In India many MNC’s have been successful : be it Nestle or Bata or Hindustan Unilever. These companies have richly rewarded their investors over the past years. Ofcourse, there have been few MNC’s (though not listed) which went bust in India like Enron.

Few cautious points to be considered before investing in MNC’s are :

The MNC Parent company owns majority of the shares in these Indian subsidiaries. Due to low liquidity, any entry or exit by institutional investor could result in high volatility in share prices.

Many of them are small companies in Indian context – making them vulnerable to huge swings.

Most of the MNC’s are not media-savvy. They prefer to keep low profile. Hence we donot get adequate informations from media and we have to depend only on annual report and quarterly results.

Many of these MNC’s operate in speciality niche products – thereby limiting the growth potential.

Assessing the health of the parent MNC company is not a easy job. That too with crisis hit Euro nations, it is quiet difficult to assess their financial strength.

Since the contribution of these subsidiary Indian MNC companies towards the overall profit of parent company is low, they may take less interest in expanding the business in India. They rarely venture into acquisition to expand their presence. 

Taking into considerations the limitations and  identifying those companies like a Nestle or Bata or (Maruthi)Suzuki or Unilever could be rewarding.

We have listed out a few MNC's which are smaller in size today but could grow bigger in future. Before that, to gain some confidence, here are few well known, grown up companies:

BOSCH India :
- German subsidary of Bosch Group
- Revenue contribution : 10% of over all group profit though the turnover contribution is just 3% of total Euro 51.4 Billion.
- 65% market share in Diesel system segment in India
- Plans to Invest over Rs.2000 crores by Calender Year (CY) 2013

Unilever : 
- Started in 1933 as Hindustan Unilever Ltd
- India's largest FMCG Company
- Has over 35 brands in 20 categories
- 54%turnover comes from emerging markets like India china, Turkey and South africa.
- Group turnover @ Euro 46.5 billion and net profit at 4.6 billion
- Indian subsidaries turnover at US$4.9 billion and US$0.55 billion

Maruti Suzuki:
- 1/4th of groups business from india.
- holds 39% market share
- Plans to expand its market share to 50% in coming years.

Heidelberg Cement :
- Founded in 1853
- Ranked 3rd in Ready mix concrete business.
- World's 3rd largest cement manufacturing company with capacity of 116 metric tons.
- Indian capacity of 3.07 metric tons
- Market share of mere 1%
- In India, they aquired Mysore cement in 2006 and metged Indorama cement in 2008.
- Recently profits dipped due to sharp rise in input cost.
- Plans to increase its capacity by another 3 mt

Paper Products (PPL) :
- Originally owned by Talwar family in 1950.
- Acquired by Huhtamaki Oyi (Finland) in 1999.
- Now PPL is a subsidary of Finland based Huhtamaki Oyi (1920) which holds 60.8% of PPL
- One of top 10 consumer packaging company in the world
- Parent company turnover 2.10 billion euro with 61 factories in 31 countries.
- In india, PPL manufactures flexible packages with manufacturing facility in Maharastra, Gujarat, Andhra and Madhyapradesh.
- caters to packaging needs of FMGC companies, personal products, toiletries, beverages sand food.
- PPL has latest technology like Shrink Sleeves, wrap around, heat transfers, pressure sensitives and metalllised paper labels.
- Also manufactures tube webs used in manufacturing laminated tubes for oral careetc.
- Also manufactures specialized cartons and cartoning systems, poly films, specialized barrier metallising and extrusion coating.
- Clients include Brittania, Cadbury, Castrol, Coco cola, Dabur, Emami, Eveready, GSK, Godrej, Unilever, ITC, Marico, Nestle, Pepsi, TATA Tea, P&G, Wipro etc.

Insilco:
- Manufactures precipitated Silica used in rubber industry like tyres, foot wear, mechanical rubber goods  and speciality applications like agrochem, food, feed, toothpaste, detergent, battery seperators, cosmetics and pharma.
- Subsidary of Evonik Degussa - which olds 73.11% stake in Insilco
- Incorporated in 1988 and production started in 1993 in Uttar pradesh.

De Nora India :
- Subsidary of Gruppo De Nora (Italy) which holds 58% stake.
- Incorporated in 1989 as Titanor components - name changed to De Nora in 2007.
- Market leader in chlor alkali and cathodic protection system business.

Wendt India :
- JV of Wintecthur Technology (Swiss) with Murugappa group. Together they hold 80% stake in the company with 40% each.
- Wendt GmbH  is the leader in super abrasive tooling solutions and high precision grinding machines for insert grinding and steel industries for 80 years.
- US based 3M Corporation acquired WTG in 2011.
- Indian company provides direct grinding solutions to over 750 direct customers from automobile, cutting tool, engineering, bearing, aerospace, steel, defense, refractory, ceramic, glass and textiles.
- Indian subsidary has two oversea subsidaries in Thailand and Sharjah. 
- 20% of total revenue from export market.

Fairfield Atlas:
- Subsidary of Fairfield Manufacturin gof US who is the largest manufacturer of gears and systems. They make automobile and industrial transmission gears and systems and cater to Original Equipment Manufactures (OEM's)
- Indian operations estabilishedin 1990 with 2 plants in Maharastra.
- 51% of its revenue from exports
- Major domestic customers include : M&M, Carraro, John Deere, Kamco, greaves, Telecoon, TATA and TAFE.
- Impressive growth in revenue in FY 2012 on the back of increase in order from existing customers and acquisition of new customers.

Yuken India:
- JV with Yuken Kogyo co (YKC) Japan
- Set up in 1976 with 40% share holding by YKC.
- Manufacturing facility in Whitefield, Bangalore.
- Product line includes : Vane Pumps, piston pumps, gear pumps, direction control  valves, pressure control valves, flow control valves, modular valves, logic valves, electro proportional valves, servo valves, hydralic power units, mobile control valves, parison controller, actuator, accumulator, total machine controller and chip compacting machines.
- Target industries include steel machine tools, plastic machinery, defense, automobile, material handling equipments, construction machinery hydraulic presses, drill rig, power and cement industries.
- Yuken formed JV in 1981 with SAI Spa of Italy which is world largest manufacturer of Radial piston motors.

Panosonic Carbon India Ltd:
- Formerly known as Indo Matsushita carbon India Ltd
- started as JV in 1982 with Matsushita Group of Japan, to obtain techno of manufacturing midget electrodes, popularly known as carbon rods used in dry batteries.
- Manufactures about 40 sizes and six grades of carbon rods.
- Has passed quality test conducted by Panosonic factories in Poland, Peru, Costa Rica, Thailand and Indonesia.
- Exports likely to increse 200% as the price is competitive when compared to chinese companies.
- In FY 2012, exports grew 65%

Ricoh India :
- Parent company Ricoh Japan holds 73.6% equity stake.
- Into imaging solutions
- Major player in managed document solutions, IT, Transaction priting, production printing and laser printing.
- In 2011, Ricoh acquired Momentum Infocare pvt ltd (Noida).
- In 2012, Infoprint solutions amalgamated with Ricoh.

Caprihans India:
- Incorporated in 1946
- Became part of EVC group in 1997.
- EVC was then acquired by Ineos Group in 2001.
- Bilcare acquired Ineos in 2010.
- Currently Bilcare Research GmbH holds 51% equity stake in Caprihans India.
- Largest manufacturer of PVC films in the country.
- Also makes other polymer sheets like ABS, PP, HDPE and rigid PVC.
- Zero debt company

Saint Gobain Sekurit India: 
- Subsidary of Saint-Gobain France which is one of the top 100 companies globally. 
- Parent company is one of leading glass manufacturing company in the world with 40 plants in 22 countries. Number One position in Europe and Number two position world wide in passenger car segment.
- Supplies to OEM's like Tata Motors, Hyundai, Maruthi, Honds, GE & M&M.
- Miniscule debt of Rs.5.98 Crores.

Esab India:
- started in 1987 in India by aquiring Philips India.
- Acquired the welding business of Indian Oxygen in 1991
- Acquired Flotech welding and cutting systems in 1992.
- Merged Maharastra Weldaids in 1994.
- Esab Group (Colfax Corp) holds 73.72% stake in Esab india.
- Parent company has 26 manufacturing plant and sales support in 80 cournties.
- Leading supplier of welding and cutting products.
- Debt Free company

Good Year India :
- 74% stake held by Goodyear Tire and Rubber company USA
- One of worlds largest tyre companies with 54 faciliteis in 22 countries.
- Credit of launching tubeless tyre in India
- debt Free
- Attempt to delist @ Rs.245 per share failed in 2010, since the price was discovered at Rs.340.

Honda Siel Power Products:
- Earlier knownd as Shriram Honda Power Equipments
- Manufactures portable generators, water pumping sets, general purpose engines at its plant in Greater noida and pondicherry.
- Honda motor company holds 66.67% stake.

Vesuvius India :
- 55.57% stake held by Vesuvius Group UK, which is a leading ocmpany in consumable high performance and speciality ceramic refractories.
- Incorporated in 1991.
- makes refractory products used in steel, cement and glass industry.
- Has 4 plants in India - all running in full capacity. Setting up its 5th plant in Vizag.