International-Business-Dr-R-Chandran-E-book

Joint Venture with an Indian Partner
135
International Business- Dr. R. Chandran
Foreign companies can set up their operations in Indian by forgoing strategic
alliances with Indian partners. Setting up operations through a joint venture
entails the following advantages for a foreign investor:-
1. The Indian partners have an established distribution/marketing setup.
2. The Indian partner has available financial resources.
3. The established contacts of the Indian partner help to smoothen the
process of setting up of operations.
Even before independence, India had so many multinationals in the field of
engineering, chemicals, Pharma and consumer goods. Metal Box, Spencer,
Uniliver, Colgate Palmolive, Sandoz, Pfizer, Siemens and Bayer entered and
prospered due to their monopoly in their respective field. Currently
indigenous organizations have proved that they are nowhere inferior to them.
The current decade is the era of Indian MNCs to operate every part of the
world.
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