India has progressed remarkably in the last 65 years of its independence on many fronts; it has not only managed to rise out of an oppressed era but has emerged as a power to reckon with - so much that today no multinational story is complete without an India angle. Many MNCs are sitting on huge cash reserves or have access to cheap global credit. It makes sense for them to use this to hike their holding in their Indian subsidiaries. Be it any multinational giant, they speak of investing in India. NetEdge Computing Solutions Reviews discusses on why are so many MNCs increasing the promoters' stake in their Indian units? Experts say some of these acquisitions - as Microsoft or Accenture could be part of a long-term strategy to eventually go private in India. Indian market regulations allow promoters to initiate the process of delisting if they have 75 per cent stake. They can quit the bourses once this reaches a minimum of 90 per cent. "If an MNC wants to take its subsidiary private, it is keeping in mind many advantages. It can manage growth much more efficiently without worrying about minority investors' interest, apart from having to disclose minimum information about its operations in the country," says V. Balakrishnan, a member of the Infosys board.
Over the past 20 years, multinational companies have made considerable inroads into the Indian market. To realize India’s potential, NetEdge Computing Reviews prompts how multinationals show a strong and visible commitment to the country, empower their local operations, and invest in local talent. They pay closer attention to the needs of Indian consumers by offering the customization the local market requires. And thus, multinational executives think hard about the best way to enter the market.
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