ASSIGNMENT - 1

JOINT VENTURE

SUBMITTED TO : Mrs Amisha Mehta SUBMITTED BY: Sushmita & Swati Bouddh

DFT -VI
 INTRODUCTION
Joint venture
A Joint Venture is a business arrangement in which the participants create a new business entity or official
contractual relationship and share investment and operation expenses, management responsibilities, and
profits and losses.

TYPES

CONTRACTUAL
EQUITY BASED
BASED

Limited liability Cooperative

Patnership
patnership agreement

Equity based joint venture Contractual based joint venture

Older and less flexible type
EJV operate in the form of a limited liability
company
In EJV profits are allocated according to the ratio
of capital contribution made by partners
More flexible agreements between joint venture
parties
CJV have the choice to organize themselves either
as limited liability choice or as non- legal person in
which partners are subject to unlimited liability.
Profits can be allocated according to the partners'
discretion and do not have to be proportional to
the investments made by the partners.
 Joint Venture News

03 February, 2017 APPAREL AND RETAIL NEWS - since 2016

S.no Party joint venture Percent Value Subject

participation
1. Raymond- khadi and - - New clothing
village industries line(khadi)
commission

Raymond has partnered Khadi and Village Industries Commission (KVIC) to introduce a new line of clothing
under the brand Khadi by Raymond, which will directly compete with Fabindia. KVIC will certify Raymond to
use Khadi mark to sell ready-made garments and fabric which will be available at KVIC and Raymond outlets
across the country. The initiative is taken under the KVIC Act that permits it to promote the sale and
marketing of Khadi or products of village industries or handicrafts and forge links with established marketing
agencies. As per the signed MOU, Raymond has agreed for a guaranteed initial procurement of a substantial
amount of Khadi fabrics from the 2300 clusters under KVIC in the initial year. Apart from retailing the brand,
Raymond will provide technical and design expertise to Khadi manufacturing cluster for crafting readymade
garments for its apparel brands.
http://economictimes.indiatimes.com/articleshow/55838658.cms?utm_source=contentofinterest&utm_medium=text&utm_c
ampaign=cppst
 S.no Party joint venture Percent participation Value Subject
2. Reliance brands limited - - Open new
Swiss luxury brand store in India
Bally

Reliance Brands Limited and Swiss luxury brand Bally form a joint venture. Under the term of agreement,
joint venture will have exclusive distribution and marketing rights for Bally in the country. Following joint
venture between Bally and Reliance have plans to open a store in New Delhi in 2017 and are looking at
further expansion in Mumbai , Kolkata and Chennai . New stores will be the part of Ballys global expansion
with two new concepts flagships in Tokyos Ginza and Los Angeles Rodeo Drive.

http://retail.economictimes.indiatimes.com/news/apparel-fashion/apparel/reliance-brands-formed-joint-venture-with-swiss-
luxury-brand-bally-to-open-stores-in-india/55992296

S.no Party joint venture Percent participation Value Subject

3. Roadster MotoGP - - New clothing
line

Roadster , the first Indian clothing brand to tie- up with MotoGP . Roadster, Myntras outdoor lifestyle brand,
has launched an all-new licensed Roadster MotoGP collection, becoming the first Indian brand to enter into
an exclusive collaboration with the worlds premier motorcycling championship. The special-edition Roadster
MotoGP collection includes jackets, denims and t-shirts. The wide range of clothing made especially for the
bikers after a lot of research to fulfil their needs. Roadster marks a new code for the road by bringing such
premium merchandise to Indian biking enthusiasts, with a focus on functional design and affordability. The
distinctive riding jackets are priced at 10,000 and the shirts and t-shirts cost 1,000 and 900 respectively.

http://www.thehindubusinessline.com/specials/auto-focus/roadster-the-first-indian-clothing-brand-to-
tieup-with-motogp/article9003793.ece
 S.no Party joint venture Percent Value Subject
participation
4. Tata CLIQ- Genesis - - Bringing international
luxury Fashion brand for online portal

Tata CLiQ, the ecommerce platform from Tata Group and Genesis Luxury Fashion had announced an
exclusive partnership to sell international luxury brand exclusively through the portal. Tata CLiQ became the
only authorised partner to offer luxury brands that are a part of the Genesis Luxury portfolio. Genesis Luxury
is the Indian marketing and distribution partner for more than 14 luxury and high-fashion brands including
Burberry, Jimmy Choo, Giorgio Armani, Emporio Armani, Bottega Veneta, Canali, Paul Smith, Coach and
Furla. Some of the international brand entering in India for first time through Genesis Luxury .The
partnership with Genesis Luxury gave Tata CLiQ an opportunity to offer first- hand luxury experience to
online consumer.

http://economictimes.indiatimes.com/industry/services/retail/tata-cliq-ties-up-with-genesis-luxury-to-bring-
international-brands-for-online-portal/articleshow/52355053.cms

S.no Party joint venture Percent Value Subject

participation
5. True Blue Arvind - - Sachin Tendulkar launches
Fashion his fashion brand

Sachin Tendulkar launched his premium menswear apparel and accessories brand True Blue through joint
venture with Arvind Fashion Brand. The brand plans to launch 25-30 stores across India and is eyeing a
turnover of Rs 200 crore in the next five years. The brand has its first offline store launched in May 2016 in
Mumbai. The apparel range designed by Tendulkar will showcase 300 styles and is priced at Rs 1,199
onwards.

http://indianexpress.com/article/lifestyle/fashion/sachin-tendulkar-cricketer-launches-fashion-brand-true-
blue/
 S.no Party joint venture Percent Value Subject
participation
6. Mahindra & Mahindra 50:50 30 lakh scrapping of old
Arms - MSTS automobiles and other
white goods

Mahindra & Mahindra formed a joint venture with state-owned MSTC for scrapping of old automobiles and
other white goods. Mahindra Intertrade Ltd (MIL), a wholly-owned subsidiary of Mahindra Vehicle
Manufacturers Ltd, which in turn is a fully-owned arm of the company, formed the JV with MSTC Ltd. The
50:50 JV named Mahindra MSTC Recycling Pvt Ltd, had a paid up capital of Rs 20 lakh and MIL has an initial
subscription of Rs 10 lakh.
The new firm will be into auto shredding, processing of end of life vehicles (ELVs), other white goods and
products for production of iron and non-iron shredded scrap, it said.
http://indianexpress.com/article/business/companies/mahindra-mahindra-arm-forms-jv-with-state-run-mstc-
4431909/

S.no Party joint venture Percent Value Subject

participation
7. Reliance - SBI 70:30 Setting up payment bank

Reliance Industries and State Bank Of India signed the shareholder agreement to set up the payment bank
joint venture. The subscription and shareholders agreement was signed by RIL as promoter with 70% equity
contribution and SBI as joint venture with 30% equity contribution . Aim of the ventureis to bring together
nations largest banking network and pan-India telecom and retail setup. Payment bank will offer services
such as remittances and deposits facilities but not loans.
http://economictimes.indiatimes.com/industry/banking/finance/banking/ril-sbi-sign-shareholder-agreement-
for-payments-bank-jv/articleshow/53009074.cms
 S.no Party joint venture Percent Value Subject
participation
8. Cipla Ahran Tejarat 75:25 Rs 120 Manufacturing and
company crore marketing of
pharmaceutical products

Cipla Holding subsidiary in Netherland form a joint venture with Iranian Distributor Ahran Tejarat Company.
This venture was formed for manufacturing and marketing of pharmaceutical products in Iran. As per the
agreement Cipla Netherland will hold 75% stake and Iranian company will hold 25% stake in joint venture.
Cipla Netherland will initially acquire 75% stake in Issat Company for 1.35 million euro and 15.5 euro million
was expected to be infused by Cipla in Issat Company as equity for next one year. As Issat company has valid
pharmaceutical manufacturing licence in Iran and also owns fixed assets.
http://indianexpress.com/article/business/companies/iranian-jv-ciplas-netherlands-arm-to-invest-up-to-euro-
16-8-million-4427937/

S.no Party joint venture Percent Value Subject

participation
9. Tata power Exxaro 50:50 - 134 mw wind farm project
resources

Tata Power and South African Exxaro Resources company form a joint venture called Cennergi (Pty)Ltd with
50 : 50 shares. Venture formed for commercial operations for its 134 mv Amkhala Emoyeni wind warm.
Cennergi will focus on the investigation of feasibility, development, ownership, operation, maintenance,
acquisition and management of electricity generation projects in South Africa, Botswana and Namibia.
http://economictimes.indiatimes.com/industry/energy/power/tata-powers-south-african-joint-venture-
operationalises-134-mw-wind-farm/articleshow/53448522.cms