Monday, May 10, 2010

MNC’s in Rural India – Jekyll & Hyde?

There is the story of MNCs spending on the rural economy to do well in the long term and gain advantages in terms of CSR. http://online.wsj.com/article/SB127296168752486467.html?mod=WSJ_hp_us_mostpop_read#

I also know of stories where HLL has made specific efforts to destroy the production of "arita" a fruit that was used predominantly across rural India as an effective hair care solution. Arita was sold cheap and was easily available till HLL realized it was unable to sell its chemical formulations simply because of the availability of cheaper indigenous solutions. They created a strategy that would eliminate competition.

This story is not much different from the way food production has changed in India from the many varied regional varieties like ragi, bajra production and consumption giving way to wheat that can then be refined and sold.

Where is the CSR?

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