Privatization and Competition of Multinational Corporations in India

Privatization and Competition as the two major components of Multinational Corporations (MNCs), are more recently undergoing serious economic threats due to loss of healthy resources and changing parameters of marketing management. As the two key constituents of MNCs, a comparative method is being
used to examine the study with an aim to assess the role, performance and prospects of corporate culture in India. The process of Mergers and Acquisitions (M&A) of large number of MNCs have direct implications on gross assets due to alluring competition, cost efficiently, excess expansion of private companies, emphasis on digital resources, and changing attitude of consumers that have direct bearing on human resource management. Consequently, the actions and reactions of two or more parties acting independently to secure profitable business by the third party as favorable conditions often ends in unhealthy competition. The paper examines the selected MNCs in India that are emerging to resettle the business profitability and labor management to maintain the parity with corporate sectors. During the age of globalization, neoliberal agendas have come to play as the powerful bargainer, mediator and negotiator with large number of third world economies, including India to maintain the market forces. Privatization of business and competitive spirits stand for profit motivation, labor disinvestment, patent laws and direct control of domestic economy through web of interconnectivity and interdependent world. MNCs have powerful philosophy of capital incentive that have come to play game with deepening economic to strengthen M&A of interdependent powers in India. M&A of selected companies like Sagar Dusane and AIAIIMS-Mumbai; Native5 Software Solutions Pvt Ltd with BestAtLowest.com, Volvo Buses India’s merger with Volvo India Pvt. Ltd. etc, are some noted examples. These have become a very important market entry strategy as well as an expansion policy in competitive world.

Keywords – India, Privatization, Competition, MNCs, M&A