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The change in the extent of sector-wise participation from companies in the latest study from 2003 to 2006 was noteworthy. Reflecting a progressive growth trend across time, PSUs displayed increased participation in the study, doubling from eight percent in 2003 to 15 in 2006. MNCs, on the other hand, remained more or less constant with their representation in the sample dipping barely one percentage point from eight percent to seven percent. The highest representation across categories in both the surveys was of the Indian companies. From 84 percent in 2003, the participation level declined to 78 percent in 2006.
4.2 Industry Classification of Companies
Table 1. Industry Classification of the Company
|
ALL |
INDIAN |
MNC |
PSU |
Base: All |
552 |
428 |
39 |
85 |
Banking and Financial |
13 |
10 |
5 |
32 |
FMCG (non food sector) |
9 |
9 |
18 |
4 |
IT-Hardware, Software, ITES |
9 |
9 |
28 |
1 |
Auto and Auto Ancillary |
8 |
9 |
5 |
2 |
Pharmaceutical |
7 |
10 |
0 |
0 |
Power |
5 |
4 |
0 |
13 |
GENERAL |
48 |
50 |
43 |
48 |
- 48 percent of the companies accounted for general sector.
- Banking and Finance was at second place at 13 percent
- The IT and ITES sector commanded the same percentage (9%) as FMCG (Fast Moving Consumer Goods)
- Auto and Auto Ancillary, Pharmaceuticals and Power made up eight, seven and five percent respectively.
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4.3 Age of the Company
Table 2. Age of the Company
|
ALL |
INDIAN |
MNC |
PSU |
Base: All |
552 |
428 |
39 |
85 |
Less than 15 years (1991-2006) |
19 |
20 |
31 |
6 |
16 to 30 years (1975-1990) |
28 |
32 |
13 |
13 |
31 to 50 years (1955-1974) |
20 |
18 |
10 |
34 |
More than 51 years (before 1955) |
21 |
19 |
36 |
28 |
Don’t know , can’t say |
12 |
11 |
10 |
19 |
The majority of the companies surveyed (28%) had been in operation for a period between 16 – 30 years. Around 21 percent of the companies had been in operation for over 51 years. MNCs were found to be of older origin as compared to the other categories. Around 36 percent of the MNCs showed that they have been in operation for more than 51 years. Incidentally it was also seen that a substantial proportion of MNCs (31%) had started operations in India between the years 1991-2006 thus giving a very contradictory picture.
One of the explanations for the phenomena of a lot of MNCs starting operations in India in the last 15 years was based on the fact that MNCs entered India post 1990, due to the opening up of the economy, thus accounting for younger origins. In contrast to this, only six percent of the PSUs reported their operations in the last 15 years, possibly because of the poor profitability of the PSUs and the government’s focus on privatisation with lots of PSUs also being sold off. |
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