BHP Billiton's Expansion in India and China: Successes, Failures, and Future Developments

Running head: INTERNATIONAL AND GLOBAL BUSINESS
International and Global Business
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1INTERNATIONAL AND GLOBAL BUSINESS
Executive Summary
BHP Billiton, being one of the largest mining companies in the world, has made its
expansion over multiple countries and across the continents. Starting from the
inception in the year 1885, the organization has seen steady growth in the business.
The organization has expanded its business in the sectors of coal and copper
mining, along with its primary business of natural gas and iron ores. Over the years,
the organization has made its expansion in multiple Asian countries including China
and India. The Asian market, being the developing one, have proved highly
beneficial for the business of BHP Billiton. India and China are two giant economies
that are growing in a very fast pace. However, while dealing in these economies, the
company has faced many hurdles as well. The report will discuss and analyze the
factors that have influenced the entry of the organization. In addition to this, the
current state of these two markets have also been analyzed along with the future
possibilities and recommendation for the organization.

2INTERNATIONAL AND GLOBAL BUSINESS
Table of Contents
Introduction.......................................................................................................3
Entry into India and China................................................................................3
Current State of Operation...............................................................................4
Success and failure in the Markets...................................................................7
Future Developments.......................................................................................8
Recommendation............................................................................................. 9
Conclusion......................................................................................................10
Reference.......................................................................................................11

3INTERNATIONAL AND GLOBAL BUSINESS
Introduction
BHP Billiton is one of the largest mining companies having its base in
Australia. The multinational company deals in mining as well as metals and
petroleum products. Founded in the year of 1885, the company became world’s
largest mining company in 2017 (Cottle & Keys, 2014). In addition to this, in 2005,
the company announced an agreed bid with the VMC Resources, the owners of the
Olympic Dam uranium, copper and gold mines located in South Australia. At present,
the company has their mines in more than fifteen countries and deals in coal, iron
ore, petroleum and copper. Along with the other European countries, the company
has made its expansion in some of the Asian countries such as China, Malaysia,
Korea and India. In this report, the company’s expansion and operation in India and
China will be discussed and analyzed. Moreover, a comparative study of the success
and failure of these two markets and further scopes of future developments have
also been discussed.
Entry into India and China
BHP Billiton is operating in the Indian market for over thirty years. In the year
1980, the company made its expansion policy in India. During that time, the
company only started with exporting coal to the Indian market. However, over the
decades, the company started importing the iron ores and iron products. In not only
India, but also the company is also one of the largest suppliers of coal in many
countries of East Asia. Moreover, the company has been one of giant suppliers of
energy coal to the Indian market. Energy coals are largely into use in the cement
sectors. During the course of time, the company has started exploring in the mineral
oil and petroleum, coal, diamond and iron ores (Ma, 2013). Moreover, the company
has also set its foot in the fields of natural gas in modes of liquefied gas and LNG. As
proclaimed by the economists, India is to be considered as one of the fastest
growing countries. It is perceived that by 2050, the country will eventually grow to be
one of the four largest economies of the world (Hurst, 2015). Moreover, the company
has also acknowledged India to be one of the major countries that have ever