Mnc in India
PREM KUMAR.S VIGNESH .P
MANOJ KUMAR .U
SIVAPRASAD .P . V
Public sector enterprises Objectives, organization Pricing policy Private sector Privatizations movement Reason for privatization Obstacles of privatization Ways of privatization-disinvestment Advantages/disadvantages Conclusion
Contents
Public Sector
A public enterprise is an organization which is i) Owned by public authorities including central state or local authorities to an extent of 50% or more ii)It is established for achievement of a defined set of public purpose,which may be multidimensional
Objective
1. To help in rapid growth and industrialization and create necessary infrastructure for economic development. 2. Promote redistribution of income & wealth 3.Create employment opportunities 4.Promote regional balance development 5. Promote import substitution save and earn foreign exchange for country. 6. Basic Infrastructure (STC, Railways, SAIL)
Organization of Public Sector
•Ministry ( Railway, Finance etc) •Departmental Undertaking (Defense, Post & Telegraph, Defense production unit)
•Statutory Corporation( LIC, AIR India, IFC,RBI,ONGC, etc..) •Central Board (Bhakra Nangal, Hira Kund ,Nagarjun Sagar dam)
•Government Companies ( Ashok Hotels, ITI, HMT Hindustan shipyard etc)
Pricing Practice
Administrative Price : Price fixed by Government
No profit –No loss Price ( DVC, Hindustan antibiotics, Hindustan Insecticides)
Cost Plus Price – ITI, HAL, Bharat electronic Competitive Price
Follow the leader
Subsidized Prices
Discriminatory Prices
Private Sector
Privatization: Transfer of ownership and control of an
existing public sector enterprise Privatization may be full or partial. It may be selective i.e.. Some function are transformed to the private sector, which other are retained in public sector.
Increase in competition .
The Privatization movement
The move towards privatization has gained momentum since
MANOJ KUMAR .U
SIVAPRASAD .P . V
Public sector enterprises Objectives, organization Pricing policy Private sector Privatizations movement Reason for privatization Obstacles of privatization Ways of privatization-disinvestment Advantages/disadvantages Conclusion
Contents
Public Sector
A public enterprise is an organization which is i) Owned by public authorities including central state or local authorities to an extent of 50% or more ii)It is established for achievement of a defined set of public purpose,which may be multidimensional
Objective
1. To help in rapid growth and industrialization and create necessary infrastructure for economic development. 2. Promote redistribution of income & wealth 3.Create employment opportunities 4.Promote regional balance development 5. Promote import substitution save and earn foreign exchange for country. 6. Basic Infrastructure (STC, Railways, SAIL)
Organization of Public Sector
•Ministry ( Railway, Finance etc) •Departmental Undertaking (Defense, Post & Telegraph, Defense production unit)
•Statutory Corporation( LIC, AIR India, IFC,RBI,ONGC, etc..) •Central Board (Bhakra Nangal, Hira Kund ,Nagarjun Sagar dam)
•Government Companies ( Ashok Hotels, ITI, HMT Hindustan shipyard etc)
Pricing Practice
Administrative Price : Price fixed by Government
No profit –No loss Price ( DVC, Hindustan antibiotics, Hindustan Insecticides)
Cost Plus Price – ITI, HAL, Bharat electronic Competitive Price
Follow the leader
Subsidized Prices
Discriminatory Prices
Private Sector
Privatization: Transfer of ownership and control of an
existing public sector enterprise Privatization may be full or partial. It may be selective i.e.. Some function are transformed to the private sector, which other are retained in public sector.
Increase in competition .
The Privatization movement
The move towards privatization has gained momentum since