Which MNCs pay the highest royalty?

 

Source: Ace Equity

The fact that MNCs have commanded premium valuations over their Indian counterparts is certainly quite well known. The premium, many investors argue, is simply because of the superior quality of these firms. However, a big hole has been bored across this argument in recent times. Simply because the promoters of a lot of these MNCs have shown characteristics not in the best interest of minority shareholders. Top on the list would be the issue of royalties. Many MNCs have entered into agreements to hike royalties that they remit abroad to their foreign promoters. And while Indian investors continue to see red over this, today's chart highlights those MNCs from the BSE 500 universe that pay the highest royalties to their parents on a % percentage of sales basis. Well, we don't know what the exact number should be but it should certainly not be something that makes MNCs earn supernormal returns on their investments in India at the expense of minority shareholders.