Indian joint ventures abroad

INDIAN JOINT VENTURES ABROAD K. Ranganathan The Third World in general comprises a group of countries which are at a far lower level of economic activity than the industrially advanced societies. T he guideline, -are clear and seek to protect the interests of both the home and the host country. The Birlas established a textile mill in Ethiopia.

What is an Indian joint venture? Of the countries ventured into, in Southeast Asia alone accounted for per cent of the business proposals amounting to per cent of the proposed Indian equity participation.

Joint Ventures Abroad. Vistara is the brand name of Tata SIA Airlines Ltd , a JV between India’s corporate giant Tata Sons and Singapore Airlines (SIA). Indian joint ventures abroad also enables one to understand how far India can make use of the joint venture strategy as ~n instrument of economic diplomacy.

Some of the Indian companies , however, are busy expanding their global footprints. Indian entrepreneurs had obtained approval from the Government of India to set up 2joint ventures , spread over countries. But the process of Indian capital going abroad gained momentum only during the last decade.

Get this from a library! This in various benefits like transfer of technology and skills, access to global market, a building of the brand image, creation of employment opportunities and utilization of raw materials available in India and in the host country, import of goods and services, increased exports of plant and machinery, goods and services, also in earning of foreign. Two of the most popular joint venture options in India today are licensing and franchising JVs.

Licensing JVs are common among Western companies and entail granting a domestic company the rights to produce and market a product in India under the foreign company’s brand name. MUMBAI: Only companies with a proven track record will be allowed to invest in overseas subsidiaries and joint ventures. Such investments — under which a company in India can automatically remit up to four times its net worth abroad — have been misused by many to move capital and divert borrowed funds out of the country.

Indian rupee investment in Nepal and Bhutan and (c) U. The maximum Indian equity that a IJV could have was fixed at per cent. Normally, Indian joint ventures have a - equity break-up between the foreign and Indian partners, respectively. Indian partner’s ability to invest The investments (cash or otherwise) being made by the parties are also relevant. Generally, foreign companies are the main investors in joint ventures.

Generally speaking, joint ventures are easy to set up and there is an option of using or developing new technologies. As for joint venture cons, the list is extensive as well. Overseas Investment can be made under two routes (i) Automatic Route and (ii) Approval(Government) Route. Both can benefit from each other’s strengths by joining hands, but a joint venture is like a marriage. The joint venture, Khanij Bidesh India, will have an authorized capital of 1billion rupees ($billion), with National Aluminum holding a stake.

The JV will acquire assets in overseas. An international joint venture occurs when two businesses based in two or more countries form a partnership. A company that wants to explore international trade without taking on the full responsibilities of cross-border business transactions has the option of forming a joint venture with a foreign partner.

International investors entering into a joint venture minimize the risk that comes with an outright acquisition of a business. This is a joint venture company comprising of the different companies like Sumitomo Corporation, Sumitomo Corp.

The Sumitomo corporation is a group itself comprising of about 8companies with many employees. A joint venture (JV) is a business arrangement where two or more parties pool their resources for the purpose of accomplishing a specific task.