Case Study In 2005 Mahindra and …

Joint Venture

1. A joint venture means establishing a firm that is jointly owned by two or more otherwise independent firms.
2. In the widest sense of the term, it can also be described as any form of association which implies collaboration for more than a transitory period.

Mahindra & Mahindra is an automobile industry in India. In 2005 Mahindra & Mahindra had a joint venture agreement with Renault which is a French car manufacturing company to produce and commercialize Logan. The joint venture is a 51:49 partnership between Mahindra & Mahindra and Renault. The Logan plant at Nasik has a capacity to produce 50,000 units per year (Mahindra, 2010). The main aim of this joint venture between these two companies is to produce no-frills Logan car with class-defying features at an aggressive price & launch them exclusively for the Indian market with the advantage of using dealers of Mahindra in order to reduce the time required to increase the market shares