There was a news recently published in the Economic Times, which shows an interesting trend of MNC giants investing more in their Indian subsidiaries. The size of these Indian subsidiaries are minuscule compared to the parent company, but their profitability and presence in a growing market gives the parent, a strong return on their investment.
India's leading FMCG company Hindustan Unilever has a profit margin of 14%, while its parent has margins of 10%. Similarly Nestle, P&G and Colgate have higher margins than their parents. (Source: Economic Times)
