In our last specialist articles on the topic of “Joint Venture India” we have most popular reasons for a joint venture speak, already discussed in detail. Here we present another argument that is often at the beginning of joint venture plans.
I don't have to start from scratch!
Which in itself is a completely sensible idea “I don’t have to start from scratch with a joint venture here in India”, is often the deciding factor for thinking more intensively about setting up such a joint venture.
This statement of course refers to the merger of at least part of your activities with those of an existing Indian company. It is initially irrelevant whether we are talking about merging production or sales tasks or other processes. In any case, you are faced with an extremely demanding task, because you obviously want to ensure that YOUR standards are met. And in the end you have to start “from scratch”!
You will probably agree with us here: Changing an existing organization or adapting it to your ideas is almost always much more complex than starting from scratch. Indian companies differ very clearly from comparable structures in German companies in terms of their organization, their management culture, the expectations and behavior of employees and much more. In our experience, “simply combining” activities almost never works.
Ergo: Even a joint venture does not develop on its own; rather, it requires an enormous amount of effort, financial commitment and cultural sensitivity, which is often significantly higher than starting a company on your own. In this case you can make every decision directly and alone, whereas with a joint venture a coordination process with your partner is required on every issue. Don't overlook the fact that there are exactly the same needs in a joint venture as in any other business. Under no circumstances should you make the mistake of assuming that your Indian partner knows everything, can do everything and has everything when it comes to India. Indian managers are just human too, even if they don't like to admit it...
The “Super Indian” as a joint venture partner
But even if all of this has been carefully considered and considered, chance often takes control in Indian business life. Many business collaborations between Indian and German companies, including joint ventures, are based on a rather chance meeting with an Indian businessman.
“I met a great Indian man, really convincing. Together with him it will definitely be a huge success.”
We can only congratulate you on having met the most qualified, reliable, creative and honest partner out of more than a billion people for your planned joint venture project.
Indians are “world champions of self-expression”
You have to give the Indians one thing: they can “sell themselves”. Indians can and know everything and do it much better... There is no field or situation in which an Indian would not know how to do it more “correctly”.
You will always meet business people who work in a completely different industry than you and who have no connection to your business in any other way, but who will nevertheless assure you with the utmost conviction that they are the ideal business partner for you. By the way, every Indian is at least a good acquaintance, if not a close friend, of important politicians, including the respective Prime Minister.
Of course there are “great” Indians. And of course there are “great” opportunities that you just have to take advantage of. But please only if the assumptions and assertions that are suddenly in the air are also reliable. And this can be determined very easily: subject the proposal of the “Indian dream partner” to the same evaluation criteria as a project proposal that a businessman at home in Germany submits to you.
Without a detailed and written (!) business plan that really addresses all the essential aspects, you should under no circumstances take such offers seriously.
And by the way, it doesn't hurt to have information about people and companies obtained in this way verified by an Indian credit agency.
