As the demands and buying power of Indian consumers rises, the market for new products and services previously unaffordable or traditionally unavailable in India is now within reach. The desire for such products has opened the gates for international companies to enter India, often through partnerships with Indian entities.
There are many reasons for considering entering into joint ventures in India, with the following being among the most common:
- To market a product manufactured outside India by a foreign manufacturer and distribute/sell it within India through an Indian entity’s sales network;
- To manufacture a product that is made using the technology of a foreign partner and the production capability, business and liaison abilities of an Indian partner;
- To manufacture a product or a part of a product in India to benefit from low-cost manufacturing and to produce/assemble products locally to benefit from cross-border taxation and lower labour costs. Such products could be manufactured by sharing the intellectual property of the product or under a separate licensing arrangement between the parties.
GAUTAM KHURANA is the managing partner of India Law Offices. SAVITRI PAREKH is an in-house lawyer at Pidilite Industries.
