IG international in talks with Australian company for a joint venture

Source : Economic Times 30 May 2017

KOLKATA: IG international, one the leading fresh fruit companies in the country, is in talks with an Australian company for a possible joint venture to produce high value exotic fruits like avocado, blueberries, dragon fruits in India. This was disclosed by Tarun Arora, director of the company in an interaction with ET.

alking to ET, Arora said “We were talking to a number of global players. However, we have now zeroed in on an Australian company. The discussions are underway. We hoping to clinch a deal with the company within next two months time.” IG international has clocked a Rs 500 crore turnover Rs 500 crore in FY17 and is aiming to take it to Rs 600 crore by end of this fiscal.

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7 reasons why Joint Ventures fail in India


joint ventures in IndiaThe joint venture is often considered the first option when the idea of doing business in India arises. Nevertheless, the experience proves that these associations rarely reach the expected goals and results. In most cases it turns out on traumatic experiences and failure for at least one of the partners (usually the foreigner).

There are logical reasons why foreign companies consider advantageous to join local Indian partners: lack of local knowledge –bureaucracy, market dynamics, business culture, management styles, labour laws…- quick access to the local market –due to distribution networks and customer portfolio of the local partner, and immediate availability of starting infrastructure –land, manufacturing plant, licenses and operation already going on-. For all this, the local partner is expected to pave the way for an easier, quicker and safer or lower investment.

This approach may seem logical a priori, but instead, we eventually find out that in many cases these assumptions prove wrong. Us in INDOLINK, after years of helping foreign enterprises to enter the Indian market, find the following main reasons that lead the joint ventures to fail: Read the rest of this entry »

Foreign firms in JVs get full freedom

joint venture companies india freedom

Foreign firms will not need their partner's NOC

Business Standard: April 01, 2011

New Delhi: In a landmark decision, the government has eased norms for investments by foreign companies that are present in India through a joint venture (JV) or a technical collaboration.

Now, the foreign company will not have to seek a no-objection certificate from the Indian partner for investing in the sector where the joint venture operates.

The government has also relaxed norms for downstream investments and convertible instruments, giving foreign companies more powers. The aim is to check a decline in foreign direct investment (FDI) inflows.

The changes are part of the third revision of the Consolidated FDI Policy. The new norms apply from tomorrow.

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L&T, EADS set up defence JV; aim to spread wings globally

India’s largest engineering company Larsen & Toubro on Tuesday formed a joint venture with European major EADS to make products for the Indian defence segment. The aim is to subsequently develop the JV as a manufacturing hub for the global market.

L&T said it estimates to earn Rs 2,500 crore in revenue from the defence market, over the next seven years and will invest about Rs 2,000 crore to grow the business. “This investment will be spread over the next three years and will include the Rs 1,500 crore that we are investing in a defence shipyard at Ennore,” said L&T chairman AM Naik.

Shares of L&T rose 2.7% to Rs 978.75 on the BSE on a day when the benchmark Sensex was down marginally, as investors welcomed the decision to tap the defence market; the annual spend on defence is about Rs 4,500 crore.

L&T’s announcement came a day after brokerage Morgan Stanley in a report to its clients said L&T is a key stock to own mainly due to its potential in the construction segment and also due to its ability to withstand the slowdown.

In his address to reporters, Mr Naik said: “There can be some dampening (due to the slowdown), but we are confident of reaching our target by March 2010,” referring to L&T’s five year target plans that will end in 2015.

The engineering conglomerate had restructured into six holding companies and divested the cement business as part of the first five year plan and is now looking at increasing growth through new businesses such as defence.

“If everything goes well and we are able reach a decent size (for the defence segment) by 2012 or 2013, we may even consider having an operating company each for defence & aerospace, nuclear and the shipyard businesses,” said Mr Naik.

The JV with EADS Defence & Security will be based in Talegaon near Pune. However, the two companies were yet to a give a clear representation of the shareholding, saying that the final structure would be in conformity with the government guidelines.

Stefan Zoller, CEO of EADS Defence, said: “EADS DS is a high-tech company driving development of integrated system solutions for armed forces and civil security worldwide. Our JV is proof of our commitment to India. EADS would like to move beyond just providing high technology sales to India by creating an Indian industrial base with the development of a long-term partnership including transfer of technology wherever necessary.“

Source: The Economic Times 6/05/09


Bharti, Alcatel set up network management JV

Alcatel-Lucent will hold 74 per cent and Bharti the rest.

Bharti Airtel and Alcatel-Lucent, one of the world’s largest manufacturers of fixed-line phone equipment, announced a joint venture to manage the Indian telecom major’s fixed-line and broadband internet businesses.

Alcatel-Lucent will hold 74 per cent in the venture and Bharti Airtel the remaining equity.

Bharti has also signed a five-year $500 million (about Rs 2,500 crore) managed services deal with the new company for five years.

Apart from managing the broadband and fixed-line network, the joint venture will also install the services in consumer premises and upgrade the network. The joint venture will also offer services such as high-speed internet and video conferencing.

Alcatel Lucent will run the joint venture. The bulk of the 4,000 staffers for the joint venture will come from Bharti Airtel and the rest from Alcatel-Lucent. The joint venture will not, however, entail an asset transfer from Bharti and the subscribers and their revenues will be on Bharti Airtel’s books.

This is the second India deal for Alcatel. Last year, it signed a 70:30 joint venture with Reliance Communications for managed services for CDMA and GSM networks, also a five-year $500 million and for five years.

This is the first joint venture that Bharti has signed for managed services. The telecom company has signed several other multi-million dollar outsourcing contracts with Nokia Siemens, Ericsson and IBM. Explaining the reason for the change Manoj Kohli CEO and joint managing director of Bharti Airtel, said: “Unlike in wireless where you have to just put in a passive network and subscribers can roll in, the broadband business is very different. You have to go to consumer homes, install the equipment, explain how it works and that requires a lot more engagement. We thought for such a business a joint venture would be a more effective structure.”

Kohli added that the deal would help Bharti Airtel save costs but he did not quantify the savings. Bharti has only three million broadband customers and fixed-line customers in 95 cities across India and finds the need to scale up the numbers, if the government’s target of 20 million broadband subscribers is to be met by 2010 (India has 6.2 million subscribers).

Source: Business Standard 1/05/09


Tata BP Solar ties up with ESB for heating system

Tata BP Solar India (TBS) has tied up with Dubai-based Eurostar Solar Energy (ESE) to meet the rising demand for solar thermal water heating systems in the region.

TBS is a joint venture between Tata Power Company, a pioneer in the power sector and BP Solar one of the largest Solar Companies in the world.

ESE, the newly launched group company of EUROSTAR Group, is an active proponent for renewable energy in the region offering expertise in the design, supply, installation, commissioning and after sales service of solar water heating systems (provided by TBS) and PV systems.

“We remain committed in bringing cutting-edge solar solutions enjoyed by the rest of the world to the Middle East. More importantly, if there is any way we can contribute to a general reduction of carbon footprint that we all take for granted then you are going to hear of more such associations in the future,” Raju T Jethwani, the chairman of Eurostar Group said,

With over 2.5 million liters day of systems already installed in India TBS can be considered to be a world leader in solar thermal technology, a joint statement released here on Sunday said.

Source: The Econmic Times 3/05/09

CFL, Chile firm float 50:50 JV for fertiliser

In a first of its kind in India, Coromandel Fertilisers Limited, the over Rs 9,300-crore fertiliser major and part of the Murugappa group, has entered into a 50:50 joint venture agreement with SQM of Chile to manufacture water soluble fertilisers at Kakinada in Andhra Pradesh. Water soluble fertiliser is nothing but potassium nitrite which is 100% soluble water and is used for horticulture, floriculture, plantations among other things.

When contacted, P Nagarajan, chief financial officer, CFL, told FE, “We are setting up a plant at Kakinada in Andhra Pradesh to manufacture 15,000 tonne a year initially. Being a premium product and a non-subsidised fertiliser, we have decided to go slow initially. Based on the response we have plans to scale it up trebly over the next three years.”

Currently, India imports nearly 50,000 tonne from countries such as Chile, China and Israel and fertiliser majors such as RCF, Zuari, CFL among others are involved in importing the same, he said. As water is a scarce commodity in India, particularly in those cultivation areas, this fertiliser is found to be more suitable for drip irrigation like plantations and can be utilised fully without any wastage, he added.

Explaining in detail, a senior official of the company, who is involved in this project, said, “It is a high value product and almost costs 10 times that of a normal fertiliser on kilograme basis.”

Water soluble fertiliser is nothing but potassium nitrite and 100% water soluble. A person can use only 4 or 5 kg of this fertiliser per acre as against 150 kg to 200 kg of normal fertilisers (DAP, urea, etc). “We have been importing this product over the years from SQM and selling in India in small way and now we have decided to set up a JV for the same in India to offer the farmers at competitive prices,” he said. Currently, farmers in AP, UP, Maharashtra, Karnataka are using this product, he added.

The company, which generates Rs 120 crore revenue through imports annually, is targeting Rs 400 crore per annum in the next two to three years with the local JV, he said.

Meanwhile, the company has reported a sharp jump in net income to Rs 9,375 crore for the fiscal ended March 31, 2009 as against Rs 3,757 crore. The net profit during the period under review was Rs 496.38 crore as against Rs 209.76 crore.

Source: The Financial Express 28/04/09


Sweden woos India for N-power JVs

After countries like France, the US, Britain, Russia and Canada, it is now the turn of Sweden to woo India for joint ventures in the field of nuclear power.

A Swedish business delegation on nuclear power and safety management arrived in Delhi on Tuesday for a four-day trip. They are here to understand better the Indian nuclear energy market and explore business opportunities where Sweden has an advantage.

The UPA government had set a target to add a capacity of 63,000 megawatts nuclear power by 2030 at an estimated development and generation cost of over $80 billion.

Sweden is more bullish on back-end operations like nuclear waster management (building storage and disposal facilities for spent nuclear fuel and radioactive waste from nuclear facilities) for which they see a market of around $2 billion in India.

The delegation, headed by ambassador of Sweden to India Lars-Olof Lindgren, comprises Swedish companies, technology providers, government agencies and research institutes in the area of nuclear energy.

“Nuclear power in Sweden has proved to be a technologically and economically a success. In India, the sector is on the threshold, ready for take-off. This provides huge opportunities for synergies in the area of nuclear energy and management between the two countries,” said Lars-Olof Lingdren. “With this delegation, Sweden expands its ties with India, now also within the field of nuclear technology solutions,” he added.

In India, the delegation will be in New Delhi, Mumbai and Chennai and will meet government authorities, and businesses and key research institutes. The delegation will tour the Madras Atomic Power Station (India’s first indigenously designed atomic power plant and fuel reprocessing plant) at Kalpakkam, about 80 km south of Chennai.

Source: The Financial Express  15/04/09