PROJECT SYNOPSIS FORM

Date: Feb 11, 2011

Name: Naresh Khokha

Roll No. : 0821003407

Address of Corerspondence: A-66, Sector-37 (RHO-II), Greater Noida - 201308

Mobile No. : +91 98911 28402 , Phone No. : +91 120 6474366

Major Area of specialization in which project work is to be taken: International

Business &
Finance

Questionnaire Attached: No

Resume of Project Guide Attached: Yes

Consent Letter of Project Guide: Yes

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PROJECT SYNOPSIS FORM

Name: Naresh Khokha Mobile No. : +91 98911 28402

Roll No. : 0821003407

Area of specialization: International Business & Finance

(Related to Project)

Received By: Dated:

Page 1 of Pages 1
 PROJECT REPORT SYNONPSIS

Name : Naresh Khokha

Roll No. : 0821003407

Major Area of specialization : International Business & Finance

Date : 11 Feb 2011

Page 1 of Pages 7
 Contents

„ Title of the Project.

„ Problem Definition

„ Objective and Scope of the study

„ Methodology

„ Chapterisation Scheme

„ Guide’s Resume / Letter of Consent

Page 2 of Pages 7
 TITLE OF THE PROJECT:

“Equity Participation of Indian Business Venture Abroad”.

PROBLEM DEFINITION:

International trade is considered to be imperative for the economic development.

Economic borders of various countries have been opened on this premise under the
aegis of world trade organization (WTO).

India started opening its economy a decade ago to integrate with global economy.
Several economic reforms have been undertaken during this period with the hope that
India will soon emerge as a global player.

The business venture abroad is not a new phenomenon in the independent India. The
first step was taken way back in 1960’s with the first venture of Birlas in Ethiopia in the
year 1964. In order to emerge as a “Global Player” there is a need to review the
developments and take necessary corrective actions, because globalization and
integration with the world economy is a double edged sword. If due care is not taken,
we may become only a global market, rather than emerging as a global player.
The study will further try to understand the roads blocks that are being faced by
the Indian Business in the path of becoming a Global Player.

Nature:

The study analyses the equity participation of Indian Business Venture abroad. It
covers both the routes of business ventures abroad, namely joint ventures &
subsidiaries. The aim is to study the pattern of equity participation of Indian Business
pre and post liberalization and its impact on the economy growth of the country.

The analysis will be in terms of both:

1. Number of business ventures and their nature

2. Equity participation in ventures abroad.

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The study will further compare the magnitude of Indian Business Venture Abroad and
foreign Business Ventures in India so as to conclude that whether India is emerging
as a global player or is likely to become a global market.

Further study will be carried out to determine whether the new business venture
overseas is in same or similar sector.

Size:

It is observed that there is an apparent preference for the mode of business ventures
abroad by country. Indian business has preference for putting up “wholly owned
subsidiary” in the developed countries and “joint ventures” in developed countries.
Therefore the study will cover these preferential countries and the reason for the said
behavior. It will further study the various steps that are required to be taken for
expanding the area of participation.

Scope of the project:

The study will cover both the routes of business ventures abroad, namely joint
ventures and subsidiaries abroad. Various legal aspects for setting up the venture will
also be studied. It will examine the pattern of equity participation abroad. Apart from
that nature of activity i.e., manufacturing, trading & services will also be studied.
Further the financial soundness and the attitude of the Indian business (whether small
or big) will also be a part of the study.

OBJECTIVE AND SCOPE OF STUDY :

This particular topic is chosen because doing business abroad and growing
internationally is an essential part of a company's business expansion policy and for
the economy as whole. It is governed by a company's aim to diversify its commercial
activities across national frontiers and increase its competitiveness.

“SAMSUNG ENGINEERING INDIA PRIVATE LIMITED” wants to explore the various

opportunities available globally and enhance its business plan in the respective field.

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The objective of the study is to determining the road block in the equity participation of
India Business and solutions thereon.

Indian companies can directly invest outside India by way of contribution to the capital
or subscription to the Memorandum of Association of a foreign entity, signifying a long
term interest in the overseas entity. It involves setting up a Joint Venture (JV) or a
Wholly Owned Subsidiary (WOS) abroad. Under the guidelines, all applications for
grant of approval for setting up joint

Ventures/wholly owned subsidiaries are to be made and processed by the Reserve

Bank of India.

The objective of the study is to understand and recognize the various roadblocks in
the task and to arrive at some valuable solutions.

METHODOLOGY:

The study is a descriptive one, based upon secondary data collected over the past 50
years of about 15-20 countries.

The secondary data will be collected mainly from the below sources:-

1. Publications of Indian Investment Centre, related to joint ventures and

subsidiaries abroad etc. for the past 50 years. And other publications on the
related topic.

2. Data from companies web site and other information website.

3. Reference literature on the topics.

4. Government circulars and notifications.

CHAPTERISATION SCHEME:
Some of the chapters that will form a part of the project report are:

1. Meaning of equity participation by India Business overseas

2. The various forms of equity participation

3. Analysis of financial impact on the organization

4. Various legal aspects involved.

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5. Why overseas equity participation is important?

6. Study of equity participation pre and post liberalization

7. Impact of liberalization.

8. Trend in the investment pattern

9. Comparison of investments by lager and small unit.

10. Comparing the magnitude of Indian Business Ventures abroad and Foreign
Business in India.

11. Various road blocks in setting up ventures overseas.

12. How to overcome the obstacle it’s impact on the economic performance.

Page 6 of Pages 7