Indian arms of MNCs find place in the sun

ITC accounts for over a fourth of its parent BAT Plc’s revenue; Hindustan Unilever contributes 10-11 per cent to Unilever’s annual turnover; Whirlpool of India around 5 per cent to Whirlpool Corp, and Colgate India accounts for 4-5 per cent of its parent’s global revenue.At the same time, many Indian arms of consumer multinational corporations command higher valuations compared to their parents. The Indian subsidiaries’ PEs are at a significant premium to that of their parents ranging from 2 to 4 times. Als ...