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Case Study In 2005 Mahindra and …

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Case Study In 2005 Mahindra and Mahindra had an agreement with Renault, a French car manufacturing company to produce and commercialize Logan. It is a 51: 49 partnership between Mahindra and mahindra and Renault. The Logan plant at Nasik has a capacity to produce 5000 units per year. The main aim of the wo companies is to produce no frills Logan car with classifying features at an aggressive price and launch them exclusively for Indian market.Renault wanted to increase the global car sales by 800000 by year 2009 and they believed that this figure could be achieved by investing in Indian Market What kind of arrangement is between the two companies? Explain it

Posted by Agrawal Agrawal 5 years, 9 months ago

CBSE > Class 11 > Business Studies

2 answers

Gaurav Seth 5 years, 9 months ago

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

Agrawal Agrawal 5 years, 9 months ago

Case study in business studies

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