1. Interference in the Economic Sovereignty of the Host Country MNCs affects the independence of any country. For example, one East India company came in India for business but it made India slave for 200 years. So, it is the biggest drawback of MNCs that these are the risky for freedom of any country. 2. Drainage of Resources MNC's main aim is to earn the profit by any way. So, it exploits developing country's natural resources. These MNCs increase pollution of air and water. 3. Strain on Foreign Exchange Reserves MNCs are very risky for foreign exchange reserves. India, there are lots of MNCs which transfer Indian currencies to their home country in the form of profit and dividends of foreign shareholders. With this, our foreign exchange reserve level is decreasing. 4. Minimum Transfer of Technology No MNC bring any new technology in India. They only produces zero technology products in the form of cold drinks and other which can easily make in each village of India. 5. Exploitation of Labour These MNCs do not create any employment in the host country because these MNCs are only interested to exploit laborers by paying them less. All top posts are filled by their home countries employees. 6. Cultural Loss This is the one of biggest drawback of MNCs that it is risky for our cultural loss. Our culture makes us vegetarian but many MNCs employees eat meat and chicken. So, all these things are against our culture. Bad Indians copies MNCs employees and start to wear leather shoes. Due to this, animals of India are being killed . So, this activities are so bad. 7. Creation of Monopolies MNCs create also monopolies. With high advertising and other ways, these MNCs do not live domestic companies. After this, these MNCs increase prices and then get high profit by exploiting consumers of India. 8. Evasion of Taxes These MNCs do not disclose its all true account. So, with this, these MNCs save their tax liabilities. 9. Economic Power
This is also one of the important drawback of MNCs that these MNCs misuse of their economic power. With economic power, these MNCs tries to change the economic policies. With this, they have to pay zero tax in host country. 10. Depletion of Natural Resources After increasing of MNCs in India, you can see that our all natural resources are decreasing very fastly. These MNCS are selling urea fertilizers. With this, our land is becoming useless. business environment cherambadi] NESTLÉ's relationship with India dates back to 1912, when it began trading as The NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After India's independence in 1947, the economic policies of the Indian Government emphasised the need for local production. NESTLÉ responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted NESTLÉ to develop the milk economy. Progress in Moga required the introduction of NESTLÉ's Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. NESTLÉ set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. NESTLÉ has been a partner in India's growth for over a century now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the NESTLÉ Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. NESTLÉ India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita. NESTLÉ India is a responsible organisation and facilitates initiatives that help to improve the quality of life in the communities where it operates.
NESTLÉ's relationship with India dates back to 1912, when it began trading as The NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After India's independence in 1947, the economic policies of the Indian Government emphasised the need for local production. NESTLÉ responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted NESTLÉ to develop the milk economy. Progress in Moga required the introduction of NESTLÉ's Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. NESTLÉ set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. NESTLÉ has been a partner in India's growth for over a century now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the NESTLÉ Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. NESTLÉ India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita. NESTLÉ India is a responsible organisation and facilitates initiatives that help to improve the quality of life in the communities where it operates. 1. Decline in sales of Nestle orange juice’’ 2. Infrastructure problems3. Distribution problems hit `Pure Life' - Nestle India to exit water business. 1) Challenges Nestle faces in India ( this part not included in d ppt bt still refer it ) As Nestle opens its global R&D centre in Manesar, it plans to also come up with new products in various categories. India, whichcontributes just less than 2 per cent of its overall business, will see an increased focus in the premium category products by theSwitzerland-based company. Nandu NandKishore , executive vice-president Nestle S.A., zone director for Asia, Oceania, Africaand West Asia tells Dilasha Seth that in the semi-urban to rural category it is more of a price-point challenge, whereas in the affluentcategory, it is more of an innovation challenge. Edited excerpts.
You have said that emerging markets contribute about 40 per cent of Nestle's business and you are targeting 50 per centcontribution from these emerging markets by the end of the decade. However, India's contribution is less than 2 per centof your overall business. What are your expectations or outlook on the Indian market for you? Yes, India contributes less than 2 per cent to our overall business. Fundamentally emerging markets have to be the growth enginesof the global economy and also of our business.Slowing growth depresses a little bit of all books but then we have to think of innovation and we have to work harder to creategrowth momentum, which India has created in the last three years for us. We have had 20 per cent plus growth in the past 26quarters in India and that's marvellous.We see growth happening in Europe and despite the crisis; we have seen growth for us in Greece. How much do you plan to invest in India in the next 1 year or so? We have invested $500 million in the last three years to create the capacities, be it chocolates, noodles, coffees, so we need to usethose capacities and use targeted innovation to create growth that GDP tide may not be able to provide.We have ongoing investment planning process. Let's digest the big chunk of investment we have had in the past and then go for another big chunk of expansion. What is your specific plan for India in terms of product categories? Cities are the engines of economic growth. Fundamentally two big markets are opening up - for affluent and for semi-urban.Premium goods and services, primarily linked to growth of cities such as five-star hotels, Starbucks, etc. Then there is semi-urban or rural. Our innovations have to cater to both, How do you assess your performance in these two segments in the country? Historically, we have been good with the semi-urban and rural category targeting, with the price points like Rs 2 or Rs 5 and Rs 10pack. You get Maggi noodles in a Rs 5 pack. Cadbury India Ltd. has begun investigations into reports that live worms were found in its Dairy Milk chocolate bars, the company said in a statement. "We are concerned about these reports and are investigating it," a company spokesperson said. The Maharashtra Food and Drugs Administration (FDA) had announced Monday that it would prosecute Cadbury India Ltd. after tests indicated "insect infestations" in the chocolate samples tested. FDA said two live larvae were found in the sample container and one dead larva was found in the wrapper. FDA Commissioner Uttam Khobargade said around 600,000 Dairy Milk pieces had been seized from Mumbai itself. The company would be sued under the Prevention of Food Adulteration Act. FDA officials conducted raids at the Talegaon plant of the company as well at stockists' premises throughout Maharashtra. The authorities have, however, decided not to shut down the plant or cancel the company's licence to manufacture chocolates.
"The chocolates have been out for sale since July 2003 so there are a very few of them left in the market as of now. We have asked the company to withdraw the entire batch currently in the market," Khobargade said. Private investigator Suresh Sati rattled off the popular brand names listed on the boxes of cough syrup, supplements, vitamins and painkillers sprawled across the desk and shelves in his basement office. "They look real, but all these are fakes," said Sati, head of a New Delhi-based agency that helps police conduct raids against Spurious-medicines syndicates across the country. "A regular customer cannot make out if a drug is fake... The biggest giveaway is when someone is selling medicines very cheap. It is almost always fake." Experts say the global fake-drug industry, worth about $90 billion, causes the deaths of almost 1 million people a year and there are lots of drug incidences in India which is contributing to a rise in drug resistance. Estimates vary on the number of these drugs made in India. Government says that 0.4 percent of the country's medicines are spurious medicines in India and that substandard drugs account for about 8 percent. But independent estimates range from 12 to 25 percent. Indian officials say the clandestine industry has hurt the image of India's booming pharmaceutical industry and its exports, worth $8.5 billion a year, mostly to African and Latin American countries. To clamp down on the illegal trade, the health ministry launched a reward program this year offering $55,000 to those who provide information about fake-drug syndicates. Last year, the ministry also strengthened its drug law to speed up court trials. Suspects found guilty of manufacturing and selling fake drugs can be sentenced to life in prison. The number of people arrested for manufacturing and selling fake drugs in Indiarose from 12 in 2006 to 147 last year, and drugs worth about $6.5 million were seized over this period. "It is very difficult to dismantle the entire operation," Sati said. "When we bust one operation, two more spring up elsewhere. Convictions are rare." The tricks of the trade include sticking fraudulent labels on expired products, filling vials with water, stuffing small amounts of real ingredients in packages of popular licensed brands and putting chalk power in medicine packets. But more than the concern for public safety, officials here have been particularly alarmed about recent incidents that discredit India's image abroad. In June, officials at Nigeria's Abuja airport caught a shipment of fake antibiotics, containing no active ingredients, with a "Made in India" label.
Nigerian investigators later said that a Chinese company shipped the drugs via Frankfurt. In a similar incident last year, a shipment of fake anti-malaria drugs from China arrived in Nigeria with an Indian tag. Last year, Sri Lanka banned imports from four Indian companies after officials discovered substandard medicine in shipments. Over the years, drug companies have used holograms or embossed their logo on the packaging to protect their brands, but these have also been counterfeited in India. One company, MSN Labs, is using a technology developed by U.S.-based start-up firm PharmaSecure that allows consumers to check the authenticity of medicines by sending in a text message of the code written on them. But many Indian companies are "apprehensive of pursuing the cases for fear of bad publicity and possible loss of confidence among consumers," said Barun Mitra, director of the New Delhibased think tank Liberty Institute. Co-writing a report on a recent survey, Mitra said that 12 percent of sampled drugs from the capital's pharmacies were substandard. "We are behaving like ostriches with our heads in the sand and pretending that nothing is amiss even as the problem keeps growing and affecting Indian patients." On a recent morning in the northern city of Varanasi, a young man named Ashish waited for a shipment of painkillers and postpartum pills to arrive by train. He said his order of pills that controlled postpartum bleeding contained chalk powder but came with the brand name Methergine in a Novartis package. The painkiller had insufficient ingredients and carried a Bidanzen Forte label inside a knockoff GlaxoSmithKline package. "There is a lot of profit in this," said Ashish, 28, describing the extent of counterfeit drugs in Varanasi. He declined to give his surname because his operation is illegal. "I do not think about right or wrong," he said. "I am not killing anybody. The worst is that these medicines will not show any result and the patient may have to check into a hospital." Fake medicines market forms a big portion of India's domestic drug market, and it is one of the highest growing markets in the country. What’s more, the biggest centre of spurious drugs is national capital region (NCR), which includes Delhi and its suburbs of Gurgaon, Faridabad and Noida. Estimates indicate that fake medicines constitute nearly one-third of all drugs sold in NCR. The shocking revelation has been made in a paper, “Fake and Counterfeit Drugs In India –Booming Biz”, by industry body ASSOCHAM. The paper shows that fake drugs constitute US$ 4.25 billion of the total US$ 14-17 billion of domestic drugs market. If the fake drugs market grows at the current rate of 25%, it will cross US$ 10 billion mark by 2017, according to the paper.
Fake drugs were found to be available as popular medicines like Crocin, Voveran, Betadine, injections of calcium and syrups like Cosavil. The paper highlighted that around 25% of India's drugs are fake, counterfeit or substandard. What makes fakes a thriving business What drives trade in fake drugs is lack of adequate regulations, shortage of drug inspectors and a lack of lab facilities to check purity of drugs, adds the paper. It says the other key factors include storages of spurious drugs by the chemists, weaknesses in drug distribution system, lack of awareness among consumers and lack of law enforcement. Other than the NCR, concentration of fake drugs was found to be present in Bahadurgarh, Ghaziabad, Aligarh, Bhiwadi, Ballabhgarh, Sonepat, Hisar and Punjab. Agra is also increasingly becoming a hub for fake drugs in India, adds the paper.
National Institute of Biologicals conducted a study across the country during 2014-2016 following the orders of the Ministry of Health and Family Wel. During the survey, there were about 47,954 samples collected from the government hospitals, dispensaries, and pharmacies. More drugs of poor standards were found in the government hospitals as compared to the pharmacies in the market. While pharmacies in the market had 3 percent of the poor quality drugs, government hospitals had 10 percent. There were around 0.023 and 0.059 fake drugs found in the retail outlets and government hospitals respectively. According to the survey, there has been some improvement in the situation over the time.
Most of the fake drugs are made in extremely polluted atmosphere and the demand for these drugs is present all over the world, from South Africa and Russia to our neighbouring countries such as Myanmar and Nepal.
The standards created by the Pharmacy Council of India for setting up of pharmacy shops are also being regularly violated. One of the rules is that there should be a gap of at least 300 metres between two pharmacies. However, it is a common sight in India to spot two or three pharmacies right next to each other. The regular violations, which are the result of government’s apathy or corruption, are proving to be harmful to the common people of India.