We all know what a Joint Venture a.k.a “Association d'entreprises” is, we have been hearing this now and then and it was indeed my luck as I was involved in a Joint Venture deal last week. Started my internships just 2 weeks back in a firm known as CPC Diagnostics Pvt Ltd ( www.cpcdiagnostics.in ) who are the pioneers in the supply of Diagnostic Products and services where they import the Instruments from Europe and the US and then supply to the Laboratories here in India. There was this discussion on having the Re-agents (which has to be used with the Instruments for its running) to have it imported in bulk and then have those packed into small bottles. The challenge of this being the import of the re agents in large containers which is riskier and dangerous as this are being transported by sea. The first task given to me was the identification of the ‘Make or Buy’ impacts ie the advantages and dis-advantages of having the packaging done here. After the analysis was done a Projected cost had to be calculated which showed that a cost decrease of 40% was possible when the ‘Make’ Option was implemented. A Balance sheet and a Profit/Loss A/c for the next 3 years had to be prepared which showed that the Break even would reach at the end of the 2nd year which is a pretty good one when this industry is taken into consideration. The project was approved and an agreement between Awareness Technology, USA and CPC was signed. Any joint agreement should benefit both the parties and the way in which Awareness was benefited was the increase in the demand of the products which CPC will import and maintain a standard quantity which will be ordered for the next few years. My hands in this agreement were on the preparations of the documents for the JV which included the Joint Venture Agreement, Schedules such as MOA and AOA and all the relevant licenses and legal documents which as a 1st time hands on experience gave a sense of excitement and an understanding of how an entire JV is done. Even though this is not as big a deal as the Vedanta’s or the Tata’s, as a beginner it really did give me the confidence and hope that any JV’s which could be done in the later stage of my life, I would handle it easily. I would like to thank the firm (CPC Diagnostics) for giving me a chance to prove my potential and giving the confidence which I believe no one else would give taking a pretty big deal into consideration.
Monday, October 18, 2010
Joint Venture - A "Hands on Experience"
We all know what a Joint Venture a.k.a “Association d'entreprises” is, we have been hearing this now and then and it was indeed my luck as I was involved in a Joint Venture deal last week. Started my internships just 2 weeks back in a firm known as CPC Diagnostics Pvt Ltd ( www.cpcdiagnostics.in ) who are the pioneers in the supply of Diagnostic Products and services where they import the Instruments from Europe and the US and then supply to the Laboratories here in India. There was this discussion on having the Re-agents (which has to be used with the Instruments for its running) to have it imported in bulk and then have those packed into small bottles. The challenge of this being the import of the re agents in large containers which is riskier and dangerous as this are being transported by sea. The first task given to me was the identification of the ‘Make or Buy’ impacts ie the advantages and dis-advantages of having the packaging done here. After the analysis was done a Projected cost had to be calculated which showed that a cost decrease of 40% was possible when the ‘Make’ Option was implemented. A Balance sheet and a Profit/Loss A/c for the next 3 years had to be prepared which showed that the Break even would reach at the end of the 2nd year which is a pretty good one when this industry is taken into consideration. The project was approved and an agreement between Awareness Technology, USA and CPC was signed. Any joint agreement should benefit both the parties and the way in which Awareness was benefited was the increase in the demand of the products which CPC will import and maintain a standard quantity which will be ordered for the next few years. My hands in this agreement were on the preparations of the documents for the JV which included the Joint Venture Agreement, Schedules such as MOA and AOA and all the relevant licenses and legal documents which as a 1st time hands on experience gave a sense of excitement and an understanding of how an entire JV is done. Even though this is not as big a deal as the Vedanta’s or the Tata’s, as a beginner it really did give me the confidence and hope that any JV’s which could be done in the later stage of my life, I would handle it easily. I would like to thank the firm (CPC Diagnostics) for giving me a chance to prove my potential and giving the confidence which I believe no one else would give taking a pretty big deal into consideration.
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