Know Who are The Leading Industrial Houses of India

Know Who are The Leading Industrial Houses of India
Know Who are The Leading Industrial Houses of India

Know Who are The Leading Industrial Houses of India

Know Who are The Leading Industrial Houses of India
Know Who are The Leading Industrial Houses of India

To make India self-reliant, the government invested heavily in the so-called core sector (power, steel, aluminum, copper, mining, heavy machinery, paper, etc.). These were industries that required a huge investment. The return on investment for setting up these industries is available in the long run, as well as it takes a long time to set up the project. Toda’s post we will Know Who are The Leading Industrial Houses of India.

Public sector undertakings lack sufficient autonomy, due to which they have to face many obstacles in the way of making themselves capable.

There is a continuous reduction in the budget allocation for the public sector undertakings as well as they have failed to raise sufficient amount of finance, due to which the pace of modernization and technology up-gradation in the public sector has slowed down. These laxities will adversely affect the competitive ability of the public sector in the future.

Performance and Problems: Know Who are The Leading Industrial Houses of India

Before independence, India’s economy was based on agriculture and its industrial base was very weak. In addition, the level of investment was also low. There was a lack of basic facilities. After independence, India adopted a mixed economy structure, and enterprises were established in various sectors.

The role of the public sector in future industrial development has been significantly reduced by the new industrial policy. The following areas have been primarily earmarked for the future development of the public sector:-

  1. Essential infrastructure for goods and services.
  2. Exploration and use of crude oil, and mineral resources.
  3. To develop technological development and production capabilities in critical areas.
  4. To produce strategically important products, such as security-related products, etc.
  5. To meet the challenges of the present circumstances, the public sector must become dynamic and its productivity should increase.

The size and investment of the public areas are simply astonishing. They will continue to play an important role in future industrial development. At the same time, it is also expected from them that they will provide proper credit for the huge investments made by the government.

In 1988, the government started entering into a Memorandum of Understanding (MoU) with Public Sector Undertakings. Its purpose was to reduce government control and make enterprises more accountable for their performance. In 1987-88, where only 4 (four) MOUs were signed with PSUs, in 1997-98 MOUs were signed with 108 enterprises.

Steps have also been taken from time to time to improve the managerial, administrative, and production efficiency of public undertakings. An objective look reveals that public enterprises have played an unforgettable role in Indian development.

The credit for making Indian development and economy self-reliant goes to this region. Even today these enterprises have huge capital and potential (physical, financial, institutional, and standard resources) for the nation. There is a need to rectify the shortcomings and defects found in it.

Under the leadership of Narasimha Rao, the new development initiatives began with an attack on the public sector enterprises. In this direction, the MoU system in public undertakings was started in 1986. The main objective of this arrangement was to ensure the capacity of public undertakings to meet the challenges of the private sector.

The MoU arrangement is a bilateral agreement based on mutual agreement between the Management of Public Enterprises and the concerned Ministry or Administrative Department of the Government of India.

Under this agreement, the performance of the enterprise is evaluated based on the targets set in the initial year. It may be mentioned that in the year 1987-88, only 4 PSUs had signed MoUs which reached 202 PSUs by the year 2010-11.

In October 1977, the government decided to give more autonomy and increase powers to some other companies. These were profit-making companies. These companies were called Miniratna.

The move was aimed at increasing efficiency and strengthening competition. These were divided into class-1 and class-2. The conditions for giving Mini Ratna are-

  1. The company is making a profit continuously for 3 years and its network is positive,
  2. There should be no default in repayment of loans, interest, etc.
  3. It does not depend on the government for budget support or government guarantees and has reconstituted its board of directors by appointing non-official directors.

Classification of companies

Types of Companies - Classification and Different Kind of Companies
Know Who are The Leading Industrial Houses of India

PSUs that have earned a profit of T 30 crore in at least one year before tax in three years are given Class-I status. Others are included in class 2. If a company fulfills these conditions, then its administrative ministry can give it the status of Miniratna.

As per the present status, a total of 63 companies are of the first and second category Miniratna. The powers conferred on Miniratna companies include spending on capital, setting up joint ventures and subsidiaries in India, opening technical joint ventures, forming strategic alliances, and acquiring technical knowledge through procurement.

It is worth mentioning that those Central Public Sector Enterprises which have made a profit for three consecutive years have also been given enhanced rights.

Providing Navratna Status

Similarly, in the year 1997, nine best-performing public sector companies were given more autonomy by taking the initiative of giving Navratna status. Later on, 12 other companies were also conferred Navratna status in different phases.

It may be mentioned that out of 21 Navratna companies, five companies have been accorded Maharatna status as a result of which at present the number of Central Public Sector Undertakings with Navratna is 16.

The Maharatna’s status in the public sector

The Maharatna scheme was launched by the government in December 2009. Its purpose was to delegate enhanced power to the boards of large-sized Navratna enterprises so that the operational development of the enterprises could take place in the domestic as well as global market. Under the Maharatna scheme, large Central Public Sector Undertakings will be helped to expand their operations and become global companies.

Creation of BRPSE in December 2004

The Government created a Public Sector Enterprises Reorganization Board (BRPSE) in December 2004. This board also advises on industrial and non-industrial matters of the Central Public Enterprises.

This board advises the government regarding sick units. Which unit will come under the category of the sick unit, it is considered under the Sick Industrial Companies (Special Provisions) Act 1985. If a company’s loss in any financial year is 50 percent or more, then it will come under the category of sick unit.

The emphasis is on the rationalization of manpower in the process of reforms through restructuring and performance of the economic disordered and loss-making public sector undertakings.

The Department of Public Enterprises has recently released the Directory of Corporate Social Holders Responsibility for CPSEs. Under Corporate Social Responsibility, the company is beyond its shareholders. Thus, Corporate Social Responsibility is concerned with sustainable development.

It may be mentioned that Corporate Social Responsibility plans are made for three types – short term, and medium-term. This plan is made according to the duration of the business.

Privatization of PSUs

Due to the increasing problems of PSUs, the government adopted a policy of disinvestment in PSUs during a series of economic reform programs and paved the way for the privatization of PSUs. In this process of privatization, the government started selling the shares of public undertakings.

The purpose of selling the shares of these enterprises to private hands was to increase the participation of the private sector in the management, at the same time, to collect additional resources for the successful operation of the economy. The process of disinvestment in PSUs in India started in 1991.

Disinvestment policy lunched

Know Who are The Leading Industrial Houses of India
Know Who are The Leading Industrial Houses of India

The Cabinet Committee on Disinvestment, headed by the Prime Minister, is the apex decision-making body on disinvestment matters. A major group of secretaries on disinvestment, headed by the Cabinet Secretary, considers various aspects of the disinvestment program.

The Ministry of Disinvestment was converted into a Department under the Ministry of Finance with effect from May 27, 2004, and has been entrusted with all the disinvestment-related functions which were earlier performed by the Ministry of Disinvestment.

The work related to the utilization of the proceeds from disinvestment deposited in the National Investment Fund of the Department of Disinvestment in January 2006 has also been entrusted.

Lunched National Investment Funds

Know Who are The Leading Industrial Houses of India
Know Who are The Leading Industrial Houses of India

The Government established the National Investment Fund along the lines of the Central Road Fund for the assured use of the revenue from the disinvestment of public undertakings. The amount received from investment in public undertakings will be deposited in this fund and this amount will remain outside the Consolidated Fund of India.

75 percent of this amount will be used for the development of social sectors like education, and health, while 25 percent will be used for investment in public sector units.

The approval for the formation of the National Investment Fund was given by the Union Cabinet in the year 2005, but its formal launch took place on October 6, 2007, when an amount of ₹ 994.82 crores was received from the disinvestment of the Power Grid Corporation of India Limited was deposited in this fund.

It is noteworthy that the management of this amount has been entrusted to three asset management companies. Thus several efforts have been made to professionalize the management of PSUs while maintaining the objective of public welfare.

Most public sector establishments are inefficient. The following are the reasons for inefficiency in the public sector:-

  1. Absence of continuous tenure of managers at higher levels of management.
  2. Ambiguity and conflict in objectives.
  3. The conflict between political ideology and current managerial behavior.
  4. Politicians to be more effective in policymaking.
  5. Product pricing is to be determined by a price policy separate from business principles.
  6. Underutilization of production capacity and due to this, the benefits of economies of scale are not available.
  7. Selection of inappropriate place at the time of project construction and large gap between a cost estimate and actual expenditure. Also, the project construction takes more time than the stipulated time.
  8. Inability to choose the appropriate technology for the project.
  9. Employing more workers than required in public sector undertakings.

Private Enterprise

Some industrial houses in India played a big role in the industrialization of the country. He has often cited the successful entrepreneurship in the country. Although some existed from pre-independence times, other Gharana came into existence after independence. Successful diversification has been an important feature in the operation of industrial houses.

Tata Group: Know Who are The Leading Industrial Houses of India

Know Who are The Leading Industrial Houses of India
Know Who are The Leading Industrial Houses of India

It is one of the oldest industrial houses in the country. The Tata family has been a leader in the iron and steel and automobile industry in India. It has diversified over the years into cement, pharmaceutical, energy, publishing, finance, insurance, telecommunications, software development and exports, non-durables, and other consumer sectors.

Tata Consultancy Services is one of the largest software services companies in India. Tata has also launched the smallest and lowest-priced car in the Indian automobile sector named Nano.

Modi Industrial Group: Know Who are The Leading Industrial Houses of India

It is one of the oldest industrial houses in the country. It deals with textiles, textiles, tires and tubes, pharmaceuticals, hospitality, carpets, and other industries.

Birla group: Know Who are The Leading Industrial Houses of India

Know Who are The Leading Industrial Houses of India
Know Who are The Leading Industrial Houses of India

Birla is a well-established industrial house. These are traditionally associated with the paper, textile, cement, paraffin, aluminum, and automobile industries. But they have also forayed into other sectors – machinery, equipment, telecommunications, pharmaceuticals, and consumer durables and non-durables.

Bajaj Group: Know Who are The Leading Industrial Houses of India

This industrial conglomerate has been associated with the scooter and bike industry but has also forayed into other sectors such as electrical and home appliances, finance, insurance, and entertainment.

Godrej Group: The Leading Industrial Houses of India

It is a leading industrial conglomerate dealing in the detergent, refrigeration, furniture, air-conditioning, and security equipment industries.

Reliance Group: Know Who are The Leading Industrial Houses of India

This group has been traditionally associated with Paraffin and Synthetic Yarn (Dhaaga). It has also forayed into the energy, petroleum, hospitality, pharmaceuticals, telecommunications, banking, insurance, and software sectors.

Sarabhai Group: Know Who are The Leading Industrial Houses of India

It is a leading conglomerate in the pharmaceutical and pharmaceuticals industry.

Wipro Group: Know Who are The Leading Industrial Houses of India

Know Who are The Leading Industrial Houses of India
Know Who are The Leading Industrial Houses of India

A classic example of a successful Sunrise industry is a well-known conglomerate in the field of software development and exports. It is a leading group in Business Process Outsourcing (BPO).

Kirloskar Group: Know Who are The Leading Industrial Houses of India

This group specializes in heavy and light machine tools and the locomotion industry. It also manufactures agricultural machinery and equipment. It emerged as one of the trusted agricultural tractors and diesel pump set manufacturers in the country. It has also made its debut in the automobile industry.

Singhania Group: Know Who are The Leading Industrial Houses of India

It is one of the earliest industrial houses in the country, operating in textiles, tires & tubes, pharmaceuticals, and durable and non-durable consumer sectors.

Goenka Group: Know Who are The Leading Industrial Houses of India

This group is related to power generation and distribution, textile, pharmaceuticals, machine tools, and entertainment sectors.

Shriram Group: Know Who are The Leading Industrial Houses of India

It is a broad-based conglomerate, and it operates a range of industries which include textiles, textiles, electrical equipment, generator sets, hospitality, pharmaceuticals, and fertilizer industries.

Bharti Group:

Bharti is known for its remarkable success in mobile telephony (Airtel brand). It has also forayed into agriculture, hospitality, insurance, and trading.

Ranbaxy:

It is one of the leading drugs and pharmaceutical companies in India.

Hamdard:

This industrial house has preserved the Unani tradition or system of medicine. It is famous in the field of Beverage (Roohafza), and Children’s Tonic (Shinkara) production. This industrial house has diversification in areas like fruit-based beverages, hair oil, shampoo and toilet soap, etc.

Dabur:

Know Who are The Leading Industrial Houses of India
Know Who are The Leading Industrial Houses of India

It is known for its effort to keep alive and preserve the Ayurvedic tradition. This industrial house has diversification in areas like fruit-based beverages, hair oil, shampoo, toilet soap, etc.

Oberoi Gharana:

It is a prominent name in the hospitality industry in India. It has a wide range of best hotels in India and abroad.

Escorts:

The Escorts Group has been involved in the manufacture of bikes (Ambassadors) and tractors (Eicher) and runs hospitals for the diagnosis of heart diseases.

UB Group: Know Who are The Leading Industrial Houses of India

An old and leading industrial conglomerate, it has been traditionally associated with alcoholic beverages. It has also forayed into the hospitality, civil aviation, infrastructure, and real estate sectors.

Jaypee Group:

Jaypee is a leading company in the upper real estate and manufacturing (road and bridge projects).

Ansal Group:

OR is one of the ancient real estate developers in the country. The group has operated several urban settlements in India.

Associated Cement Company:

It is one of the largest cement companies in India. ACC is basically an association of cement manufacturers.

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