Joint Venture & Alliances
Foreign companies can also set up joint venture with Indian or foreign companies in India to have inorganic growth while both taking advantage of strengths of each other in terms of:
- Sharing Capital for capital Intensive projects.
- Technology Sharing by one of the partner.
- Risk Mitigation as it will be shared by both.
- Market Positioning and scaling by using the network of other, either geographically or distributor chain for similar type of products thus reducing the cost substantially.
- Supply Chain Optimisation by riding over the existing supply chain of other, reducing the cost and time.
- Understanding of Local Business Environment as the local partner helps in steering the company by his knowledge of local markets, government policies and general business environment.
There are no separate laws for joint ventures in India and laws governing domestics companies apply equally to joint ventures.