From HUL to Maruti Suzuki, India arms now mean more to MNCs: Here's why

Listed Indian subsidiaries' share of their MNC parents' total market cap doubles to 6.3% from 3.1% in 2013; P/E multiple premium rises sharply

The Indian subsidiaries of global multinationals like Unilever, Suzuki, Siemens, Colgate-Palmolive and ABB are running at double the pace of their global parents in terms of market value.

Multinational companies’ Indian arms listed on Dalal Street now account for 6.3 per cent of their global parents’ market capitalisation, against 3.1 per cent at the beginning of 2013.

Maruti Suzuki and Hindustan Unilever are the biggest contributors to this surge. At its current stock price, Maruti’s market capitalisation is nearly 50 per cent more than its Japanese parent Suzuki Motor’s, while HUL’s market cap now is 28 per cent of Unilever’s.