CASE STUDY II - UK based listed manufacturing company having diverse interests

A UK based listed manufacturing company having diverse interests in aerospace, fasteners, plastics and automotive component industries and having wholly owned subsidiaries across many parts of the world was intent on furthering its business interests in India through a joint venture with a private company. The latter had the advantage of being a closely linked supplier of automotive parts to an Indian automobile manufacturing major. The component that was being offered for supply by the UK company was not amongst those being supplied by the Indian company to its buyer and there existed a valuable partnering opportunity for both parties. However the corporate policy of the UK Company would require a stake of not less than 51% in the proposed joint venture, while the Indian company desired an equitable stake.
We represented the Indian company in the series of joint venture meetings & negotiations held in the UK. Though we had worked on all aspects of designing the joint venture including protection of minority interests of our client, our understanding of the objective and intent of both partners as well as its successful communication led to the joint venture partners entering into a 50/50 partnership as desired. It is still operating successfully!