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    Assignment - Joint Venture and Privatisation

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    Prabhakar Khairate
    1. Joint ventures allow companies to access new markets, distribution networks, expertise, resources, and share risks and costs with a partner. The main reasons for joint ventures are to access new markets and resources. 2. There are four main types of joint ventures: project-based, vertical, horizontal, and functional-based. Issues to consider include having no way to end the venture, lack of financial updates, forgetting the partner, assuming the partner will prioritize your interests, and potential conflicts of interest. 3. Joint ventures in India are regulated by laws including the Companies Act, Competition Act, foreign trade and investment acts, and guidelines from organizations like SEBI and RBI. Stat

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    Assignment - Joint Venture and Privatisation

    Uploaded by

    Prabhakar Khairate
    41 views8 pages
    1. Joint ventures allow companies to access new markets, distribution networks, expertise, resources, and share risks and costs with a partner. The main reasons for joint ventures are to access new markets and resources. 2. There are four main types of joint ventures: project-based, vertical, horizontal, and functional-based. Issues to consider include having no way to end the venture, lack of financial updates, forgetting the partner, assuming the partner will prioritize your interests, and potential conflicts of interest. 3. Joint ventures in India are regulated by laws including the Companies Act, Competition Act, foreign trade and investment acts, and guidelines from organizations like SEBI and RBI. Stat

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    1. Joint ventures allow companies to access new markets, distribution networks, expertise, resources, and share risks and costs with a partner. The main reasons for joint ventures are to access new markets and resources. 2. There are four main types of joint ventures: project-based, vertical, horizontal, and functional-based. Issues to consider include having no way to end the venture, lack of financial updates, forgetting the partner, assuming the partner will prioritize your interests, and potential conflicts of interest. 3. Joint ventures in India are regulated by laws including the Companies Act, Competition Act, foreign trade and investment acts, and guidelines from organizations like SEBI and RBI. Stat

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    41 views8 pages

    Assignment - Joint Venture and Privatisation

    Uploaded by

    Prabhakar Khairate
    1. Joint ventures allow companies to access new markets, distribution networks, expertise, resources, and share risks and costs with a partner. The main reasons for joint ventures are to access new markets and resources. 2. There are four main types of joint ventures: project-based, vertical, horizontal, and functional-based. Issues to consider include having no way to end the venture, lack of financial updates, forgetting the partner, assuming the partner will prioritize your interests, and potential conflicts of interest. 3. Joint ventures in India are regulated by laws including the Companies Act, Competition Act, foreign trade and investment acts, and guidelines from organizations like SEBI and RBI. Stat

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    Joint Ventures and Privatisation

    in
    Infrastructure Projects

    Presented by,
    Mr. Prabhakar Khairate
    Joint Ventures
     A joint-venture is a commonly owned company where a small number of
    partners (more than two) share the capital of the firm. It belongs to the
    family of alliances – strategic and non strategic. Strategic alliances being
    characterized by the fact that they gather competitor companies. The
    main reasons why managers claim to be interested in Joint-Ventures are
    the access to new markets and to new resources.
    Reasons for formulating joint ventures

     One of the most important joint venture advantages is that it can help your
    business grow faster, increase productivity and generate greater profits.
    Other benefits of joint ventures include:
    1. access to new markets and distribution networks
    2. increased capacity
    3. sharing of risks and costs (ie liability) with a partner
    4. access to new knowledge and expertise, including specialized staff
    5. access to greater resources, for example, technology and finance
    Forms of joint ventures
     There are 4 most important types of joint venture that are practiced by the
    companies:
    1. Project-based joint venture- This is a type of JV, where the parties come
    together with a motive to accomplish a particular task.
    2. Vertical Joint Venture– This is a type of JV, where the parties are at different
    level of the same product and decided to come together in a JV
    3. Horizontal Joint Venture– This is a type of JV, where the parties are
    competitors and decide to come together.
    4. Functional-based Joint Venture– This is a type of JV, where the parties come
    together in order of getting a mutual benefit by the synergy of the two
    parties.
    Issues that need to be considered
    while entering into joint ventures
     There Is No Way to End the Joint Venture
     No Regular Financial Update
     Forgetting that you now have a partner
     Thinking your JV partner will look out for your interests
     Your JV partner has a conflict of interest
     Failure to recognize there is no such thing as equal partners
     Thinking Your JV Partner is a Good Business Person
     No Joint Control of the Cash
     Competing Against Your JV Partners on Other Projects
    Laws and agreements governing joint
    ventures in India
     Statutory protection: An incorporated JV is the preferred form of corporate
    structure for foreign investors who are interested in doing business in India.
    Corporate JVs are regulated by the Companies Act, 2013 and the Limited
    Liability Partnership Act, 2008. The liability of the shareholders is limited in
    both.
     Some other laws by which Joint Ventures in India are regulated:
    Competition Act, 2002.
    1. Foreign Trade (Development and Regulation) Act, 1992.
    2. Industrial Policy and Procedure Policy for Foreign Investment Contract Act.
    Foreign Exchange Management Act.
    3. 1999 SEBI Guidelines, Regulations, Notifications & Circulars.
    4. Reserve Bank of India (RBI) Guidelines, Regulations, Notifications & Circulars.
    Conclusion

     Joint Ventures helps the company to grow exponentially but their structure
    can be complex. There should be excellent communication between the
    partners to make the venture successful.

     FDA is a great way to bring money to one's country. It helps the economy
    to thrive and also provides employment. But it should be kept in check so
    that the sovereignty of the nation remains intact.
     Currently, India is hosting many successful Joint Ventures which are giving
    valuable thrust to the Indian economy.
    THANK YOU

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