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JOINT VENTURE

A contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share in the profits and losses of the enterprise. It is similar to a business partnership, with one key difference: a partnership generally involves an ongoing, long term business relationship, whereas a joint venture is based on a single business transaction.

RELATED TERMS

JOINT ADVENTURE

An association of two or more individuals or companies engaged in a solitary business enterprise for profit without actual partnership or incorporation! also called a joint adventure.

CO-VENTURE

when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are "co ventures".

OBJECTIVES

Individuals or companies choose to enter joint ventures in order to share strengths, minimi#e risks, and increase competitive advantages in the marketplace. $oint ventures can be distinct business units %a new business entity may be created for the joint venture& or collaborations between businesses. In a collaboration, for example, a high technology firm may contract with a manufacturer to bring its idea for a product to market! the former provides the know how, the latter the means.

ADVANTAGES

'rovide companies with the opportunity to gain new capacity and expertise. Allow companies to enter related businesses or new geographic markets or gain new technological knowledge. Access to greater resources, including speciali#ed staff and technology. (haring of risks with a venture partner. $oint ventures can be flexible. )or example, a joint venture can have a limited life span and only cover part of what you do, thus limiting both your commitment and the business* exposure.

EXAMPLE Tata Marcopolo Bus

Marcopolo is a ra !" o# $us"s %a u#actur"& $' Tata Motors i colla$oratio (it) Marcopolo S*A* o# Bra+il

USAGE

It is currently being used or inducted in several Indian cities as part of the local transports fleet like Ahmedabad, +elhi, ,angalore, Coimbatore, -ysore, .olkata, Chennai, /ucknow, .anpur, Chandigarh, 'une, (outh .anpur, 0yderabad etc. It is a low floor bus with both air conditioned and non air conditioned variants available.

Tata Marcopolo CNG Bus i D"l)i, I &ia

AC Tata Marcopolo DTC Bus #"rr'i ! at)l"t"s a & o##icials &uri ! -./. Co%%o ("alt) Ga%"s

A Tata Marcopolo CNG 0'$ri& $us i Mu%$ai

DTC N"( TATA No AC $us"s

MANU1ACTURING

-anufacture 'rimary unit for 1ata -arcopolo %1--/& bus manufacturing and building began at /ucknow, the output per day is 23 buses. (econd unit of 1--/ began at +harwad, .arnataka the output is presently 23 34 buses per day. In few years it is expected to double its production and +harwad unit will be the largest unit.

TATA MOTORS

1ata -otors /imited is an Indian multinational automotive manufacturing company head5uartered in -umbai, India and a subsidiary of the 1ata 6roup. Its products include passenger cars, trucks, vans and coaches. It is the world*s eighteenth largest motor vehicle manufacturing company, fourth largest truck manufacturer and second largest bus manufacturer by volume. 1ata -otors has auto manufacturing and assembly plants in $amshedpur, 'antnagar, /ucknow, (anand, +harwad and 'une, India, as well as in Argentina, (outh Africa, 1hailand and the 7nited .ingdom. 1ata -otors has produced and sold over 8.3 million vehicles in India since 9:3;.

1A1A -<1<=( %C<>1I>7?&

<riginally a manufacturer of locomotives, the company manufactured its first commercial vehicle in 9:3; in a collaboration with +aimler ,en# A6, which ended in 9:8:. In 2494, 1ata -otors surpassed =eliance to win the coveted title of *India*s most valuable brand* in an annual survey conducted by ,rand )inance and 1he ?conomic 1imes. 1ata -otors was ranked as India*s @rd -ost =eputed Car manufacturer in the =eputation ,enchmark (tudy Auto %Cars& (ector, launched in April 2492. 1ata -otors has been ranked @9;th in the )ortune 6lobal 344 rankings of the world*s biggest corporations for the year 2492.

Marcopolo S*A*2Soci"&a&" A 3 i%a4

-arcopolo (.A. is a ,ra#ilian bus manufacturer founded on August 8, 9:;:, in the southern ,ra#ilian city of Caxias do (ul, state of =io 6rande do (ul. 1he company manufactures the bodies for a whole range of coaches, e.g. microbus, intercity and touring coach. -arcopolo produces over half of the bus bodies made in ,ra#il and exports its coaches to more than 84 countries.

-A=C<'</< %C<>1I>7?&

Currently -arcopolo has four plants in ,ra#il and plants in Argentina, Australia, Colombia, India, -exico, and (outh Africa, in addition to the technology that will be transferred to China. =ecently it announced a joint venture with 1ata -otors to enter the Indian market.A9B -arcopolo closed its plant in 'ortugal on (eptember 244:.

DETAILS O1 JOINT VENTURE

In 2448, 1ata formed a joint venture with the ,ra#il based -arcopolo, 1ata -arcopolo ,us, to manufacture fully built buses and coaches 1ata -otors has formed a 39:;: joint venture in bus body building with -arcopolo (.A. of ,ra#il. 1his joint venture is to manufacture and assemble fully built buses and coaches targeted at developing mass rapid transportation systems. 1he joint venture will absorb technology and expertise in chassis and aggregates from 1ata -otors, and -arcopolo will provide know how in processes and systems for bodybuilding and bus body design. 1ata and -arcopolo have launched a low floor city buses.