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indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
IN S
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!
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R R
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T MA b
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V NG on
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Paresh Sheth
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JO ME
A
On
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Joint Ventures
paresheth@yahoo.co.in /
+919820608727
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
Mergers,
Acquisitions,
Alliances,
Joint ventures,
Collaborations,
Start ups,
Buy Outs.
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
COMMON DENOMINATOR
Times Bank ;
HDFC Bank
IndiaInfo / Seranova ;
Just Dial
ICICI Bank ;
ICICI Bank ;
Bank of Madura
IDBI Bank ;
IDBI Bank ;
IDBI Limited
IDBI Bank ;
India Start Up
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
CAVEAT
My thoughts are
Mostly based on personal experiences
Hence Biased
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
TAKE AWAY
Understanding why JVs are important
POA for Students & Practitioners
Spotting JV opportunities
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
s
Eco Growth
ge
n
Environmental
change;
dynamic
environments;
less predictable
e
ll
a
Environment complexity; large number of external factors
Ch
Resource scarcity;
Scarce
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
SOLUTION TO SCARCITY
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
SO
If Mergers, Acquisitions,
Alliances and Joint Ventures
are IMPERATIVE...
What are we looking at?
Are we in a sweet spot?
Is there an emergence of
unstoppable trends?
What's the challenge?
How do MNCs think and Plan?
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
UNSTOPPABLE TRENDS
Strategy formulation & implementation is being impacted by 3
unstoppable trends
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
OPINION
A recent report by World Bank Vice President Otaviano
Canuto argues that developing countries will be
engines of growth and could carry the world economy
in the future, provided they have a clear strategy.
If so, there may be enormous opportunities for
companies to claim market leadership by helping
developing countries to establish these growth
strategies. A different role for business in
development will certainly emerge.
But what will be its parameters, objectives and
responsibilities?
What will be the key requirements for a new era and how
can we create sustainable strategies?
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
Population Composition
Growth Rates
Political Forecast
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
COMPOSITE INDEX
Brazi Russi
l
a
Indi
a
Chin
a
Growth
Competitiveness
(world eco forum
report)
57
70
55
46
Business
Competitiveness
(world eco forum)
38
61
30
47
Voice &
Accountability
(world bank report)
58
33
60
10
Composite Risk
(100 is least risky)**
70
78
72
76
Weight in Emerging
6.9% indus1advantage
5.2%
5.0
4.7
Market Index***SCB
%
%
M E R G E R S , A CQ U I S I T I O N S , A L L I A N CE S , J O I N T V E N T U R E S
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
EYES OF AN MNC
If a MNC uses such a composite
index to define the country
How do they finalize the entry
strategy?
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
Defin
e
Gap
Develop
Strengths?
Contract
Time?
manufacturing?
Money?
Contract Sales?
Energy?
Alliance? Licensing?
Joint Venture?
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
QUESTIONS
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
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M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
ANSWERS
Answers to questions posed in the last pagewill
give us a Solution !
Alliance / Outsource / Joint Venture / Acquisition /
Solo
Other Factors
Product / Price / Promotion / Place / Public / Politics
This will give us the final answer; to the kind of
alliance we should strike; if at all.
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
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M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
INSTITUTIONAL VOIDS
- Skilled Market Research
Firms to understand
Customer Preferences
- End to End Logistics
Provider (Chinese Example)
- Manpower & Search Firms
- Lack of Specialized
Intermediaries
- Efficient Bankruptcy Processes
- Financial reporting / GAAP etc
- Capital Markets & VC
funding
- Debt Capital Markets
- Stock Exchanges / SME
Exchanges
M E R G E R S ,
A CQ U I S I T I O N S ,
J O I N T
V E N T U R E S
SO
If you look at issues with
Composite index and Institutional Voids
The obvious answer ;
Entering emerging markets without local
support is a folly..
Alliances / JVs are in;
Solo is definitely not worth the costs.
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
II
A
T
N
R
IO
A
P CT
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
SPOTTING OPPORTUNITIES
Goals
Strategy
Strength
s
Resource
s
Defin
e
Gap
Develop
Strengths?
Contract
Time?
manufacturing?
Money?
Contract Sales?
Energy?
Alliance? Licensing?
Joint Venture?
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
A CQ U I S I T I O N S ,
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
Emerge Logistics; takes foreign companies all the way through the
delivery process.
Filling import papers to customer collectibles.
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M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
TOSHIBA
Toshiba; Strategic Alliances as a Key Element of Strategy
To develop strategic alliances with different partners for different
technologies
Because a single company can not dominate any technology or business
by itself
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
SPOTTING JV OPPORTUNITIES
1. Identify Gaps this is the opportunity.
2. Spot Institutional Voids - this is where u make a compelling
case for the Foreign corporate to come to India (if u solve
them that is)
3. Identify the right Indian partner who can nullify this void and
you have the right recipe for a great Joint Venture.
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
ed
s
es
r
p
x
E
A
TH
ew
i
V
K
N
U re
YOere a
r
e
p
l
a
n
so
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
NOTES
Emerging markets = Argentina, Brazil, China, Czech Republic,
India, Indonesia, Mexico, Poland, Russia, and South Korea
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
Paresh Sheth
Paresh runs an investment bank indus1advantage and specializes in cross border joint ventures and alliances.
His clients include large industrial houses, multinational corporates and listed corporates. He works across
multiple sectors including education, Info tech, energy, clean technology & green energy, banking, financial
services, insurance, wealth management, construction, engineering, health care, water technology &
infrastructure.
Paresh also works as the dean at a leading management institute dedicated to Investment banking & Strategy.
He is also an advisor to multiple companies including UB Engineering Ltd and P Mac Private Limited.
Prior to this he was India CEO and Full time director for a Swiss bank Indian subsidiary and the Deputy CEO for
another Swiss bank subsidiary in to Brokerage and wealth management.
Paresh has the bandwidth to handle multi-billion dollar conglomerates, various family offices and SME/ MME
clients as well; at the same time. He assist large companies involved in mergers, acquisitions, joint ventures,
alliances, technology transfer and distribution tie ups He advises SME / MME on sales, innovation, alliances,
growth and board formation. He also works with various single / multiple family offices and advises them on
setting up new businesses. Paresh currently also works with leading wealth management and brokerage
companies and capital market investors to design their strategies, enhance profitability and establish
competitive sales and risk organisations.
Paresh has played a pivotal role in setting up a MNC bank, an MNC Insurance company and a financial product
distribution company amongst others as a project manager. An entrepreneur at heart; he set up his first
company at the age of 21. He has subsequently worked for 20 years at various BFSI corporates including IDBI
Bank, HDFC Sec, FirstRand Bank, Hinduja Bank Switzerland and ICICI bank in various capacities including CEO,
board member and business head. He was the chairman for finance and membership for 3 years at CII YI
Mumbai. He is one of the few professionals to have managed a team of 7500 executives and 5 million
customers. He was frequently involved in strategic initiatives to align the retail and wealth banking activities
with the changing times and the introduction of innovative products and services to a new customer base and
different markets. He was also a part of business process reengineering at IDBI Bank and represented the retail
banking unit in the BPR forum. Paresh championed the customer value management unit at IDBI Bank.
Paresh has studied at IIM Calcutta and Mumbai University. He was a faculty for strategy at a leading
management institute in Mumbai for 3 years and now is a regular lecturer at leading management schools
including IIMs. He is a regular speaker at events on Entrepreneurship, Banking, Investment Banking and
Strategic Management. He is currently authoring a book on wealth management.
indus1advantage
M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S
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M E R G E R S ,
A CQ U I S I T I O N S ,
A L L I A N CE S ,
J O I N T
V E N T U R E S