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Conquering the Chaos: Win in India, Win Everywhere by Ravi Venkatesan

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7
How to Think About Joint Ventures in India

One key reason why Cummins has succeeded in India and China is because we learned how to make joint ventures work.

—TOM LINEBARGER, CHAIRMAN AND CEO, CUMMINS INC.

Mention the term joint venture and most executives in multinational companies as well as Indian corporations will shudder delicately and change the subject. That isn’t surprising; over the past twenty years, most joint ventures (JVs, for short) have failed, especially in emerging markets where experts estimate the failure rate at 60 percent. While several partnerships in India have ended acrimoniously—Telenor-Unitech, Britannia-Danone, and DB Realty–Etisalat, for example—in other instances, objectives diverged, the two sides were unable ...

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