From the Managing Director
All MNC'S IN OUR STOCK MARKET
I have a dream; All multinational companies should list in our stock market. Indian investors should have an opportunity to invest in these companies and let them get a share of the hefty profits they are making in our country.
The other day, I was looking at warren Buffett's portfolio consisting of Coco Cola, American Express, Johnson and Johnson etc. Truly great businesses to invest. Warren Buffett created huge wealth for himself and for his investors by investing in these companies . It is really tempting me to invest in those companies because of their superior economics.
But we Indians are most unfortunate citizens. Number of good opportunities are snatched away from us and we are always a second rate citizens in the world. We don not get what we want even though we have the power to have it. Even in 90's we could not allow to buy certain electronic goods directly from other countries . In the same way even now we cannot invest in these MNC's because they are not listed in our stock market.
Similarly, the government is not allowing the great business schools in the world such as Harward, Wharton, London Business School to start their operations directly in India. Due to this, we cannot study in those world best institutions. This is really strange. The governament is not willing to allow its own people to get the best available education in the world. A sort of regressive thinking.
Just imagine, if the great companies like Micro Soft, Coca Cola, McDonald, KFC, Pepsi, Johnson and Johnson, Cadbury,Nike, Fedex, Intel and Apple are all listed in our stock market, Indians also could have been invest in these companies and Participated in their wonderful growth saga.
These companies by virtue of their superior quality of products and services, superior technology, superior management practices and with their huge intellectual properties created enormous wealth on behalf of shareholders. The investors of these companies made huge money abroad.
Why can't we, Indians? From time immemorial opportunities have been robbed from Indians in many ways.
These MNC's have been using our resources like land, water, human resources etc and making huge profits and taking the profit to their home land. India offers the largest untapped markets in the world to these MNC's. We can term these MNC's as modern day East India Companies as they are taking away the profits. If they are listed here we can also participate in their growth and share the wealth.
Let us look into the income distribution aspect of this. If allowed, we can be a shareholders of these great companies. Investors get money in the form of dividends and capital appreciation. They will spend this money here only. This will augur consumption which will drive the economy further.
How can we make these MNC's list here? Simple. Government should make it mandatory of listing for MNC's if they continue to do business in this land or government should encourage MNC's to list in Indian market by giving incentives such as tax concessions, or creating some sort of a favorable business environment. Differential taxation to listed and unlisted companies is the best way to encourage them to list in the market. Chandrkant Sampat, a veteran value investor, once remarked that, "De-bureaucratize the whole process of Foreign Direct Investments [FDIs] with only one condition, the Multinationals must seek entry into this country must get themselves listed on the Indian bourses. Imagine Microsoft India Ltd, Coca ColaIndia Ltd., Intel India Ltd. Being traded here! Not only will this bring in US$ 80 billion of FDI annually, but the stakeholder wealth that ensues will actuate new ideas, new ideas create new wealth..."
It is high time for the government to think and act positively and proactively. It is time to act upon this issue and should not make its people to wait happlessly. Let them divest at least 26% initially in favour of Indian investors. We just want a slice of the wealth created by these companies.