MADE BY "RAJPUT ISHWAR" AND "VICKY RANA"

2. JOINT VENTURE

3. • Contents
1 Meaning
History ,Definitions and brief information, Examples Of JV
2 Reason for Joint venture
3 Types of Joint venture
4 Advantages and Disadvantages of Joint venture

4. History of JVC in India
• Joint Ventures in India is not a new phenomenon. They began during
British colonial rule of the Indian subcontinent.
• Post-1947,some foreign companies withdrew their holdings and sold
stakes to Indian partners.
• However, since the 1960s, several new JVs have emerged in India,
especially in very vital sectors.

5. • What is Joint Venture ?
• “Joint venture are partnership in which two or more firms carry out a
specific project or corporate in a selected area of business.”
• An association of two or more individuals or entities for the purpose of
engaging in a specific business enterprise for profit.

6. Example of Joint Venture
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7. Reasons for the Formation of Joint Venture
• In some countries ,foreign firms are allowed to operate only if they enter into a
joint venture with a local partner.
• Size of project may be large and one company cannot accomplish it . then, one
firm enters into a joint venture with another firm to accomplish the project.
• Some project require multidimensional technology that no one firm possesses.
Therefore ,firm with different ,but compatible technologies may join together.
• One firm with technological competence and another firm with managerial
competence join together.
• A foreign firm with technological competence joins with a domestic firm
with marketing competence.

8. Types of Joint Venture
Between same industry and same country
Between different industries but same country
Two firm two country locating business in Domestic Country
Two firm two country locating business in Foreign Country
Two firm two country locating business in Third Country

9. o Advantages
 To spread development costs
 Allows firms with expertise in different fields to combine their knowl
edge and resources.
 Reduce investment in host country and minimise the risk of nationalis
ation
 Provide quick access to channels of distribution, reducing market cost
 Useful in entering in international market and exporting activities
 Minimise commercial/business risk with to both partners
 Easy to build relationships and networks
 Provide the facility of foreign technology to host partner
 Make impossible things possible
 It is only temporary
 More likely to succeed

10. o Disadvantages
 Vague objectives
 Problems of equity participation by foreign and home partners
 Foreign exchange regulation imposed by both governments
 Absence of proper coordination
 Difference of culture and customs of both partners
 Division of profits with other firms
 Loss of control of the other firm
 Possible conflict and blaming each other at the time of failure

12. Thank you