International business, Asumed joint venture between Tesla and Maruti, Electric Cars ( source of finance are hypothetical) and some clause assumed which might be different from actual laws

1. International Business
A PRODUCT IMPORTABLE AND MARKETED IN INDIA - ELECTRIC CAR
Presented by : -
Manish Tiwari -16106A1051
Ashish Thakur -16106A1054
Kiran Agarwal - 16106A1058
Nikhil Balai - 16106A1059
Anup Yelve - 16106A1053

2. Rationale Behind selecting the Topic
Selection

3. 1. WHO Report
Ambient Air Pollution: A Global Assessment of Exposure and
Burden of Diseases
WHO Standard for India: 20 µg/m3 .
A tool named Air Quality- Life Index (AQLI) developed by
The University of Chicago
Current Challenges the World is Facing

4. 2. British Petroleum PLC
Reserves-Production Ratio
Deplete in
• Oil in 51 Years
• Coal in 114 Years
• Natural Gas in 53 Years

5. National Electric Mobility Mission Plan
Transformational paradigm shift in the automotive and transportation
industry.
Target
• To put 6-7 million EVs on road by 2020; 4-5 million are expected to be
two-wheelers.
• Reduce dependence on fossil fuels.
• To promote cleaner technologies.
Why do it?
• Result in 2.2 – 2.5 million tones of fossil fuel savings by 2020, that’s a
monetary saving of Rs 30,000 crore.
• Lower vehicular emissions and decrease carbon dioxide emissions by
1.3% to 1.5% by 2020
• Deliver economic growth, quality jobs and a cleaner future.

6. Why Electric Cars ?
1. No Gas Required
2. Reduction in Air Pollution
3. Savings
4. Safe to Drive
5. Cost Effective
6. Lower Maintenance
7. Reduced Noise Pollution

7. MODES OF ENTRY
JOINT VENTURE

8. Benefits of Joint Ventures
 A joint venture can help your business
 grow faster,
 increase productivity and
 generate greater profits
 Sharing of risks and costs with a partner – ( as the Joint venture
is in the ratio of 55:45, in same ratio risk can be share)
 Access to greater resources, including specialized staff,
technology and finance
 Joint ventures often enable growth without having to borrow
funds or look for outside investors
 International joint venture eradicates the risk of discrimination

9. • Reduced risk i.e. Less government intervention if an alliance is formed with an indigenous business
• Better local market intelligence provided by indigenous joint venture partner.
• As tesla is leader in making electric car so the tie up with this company will increase the credibility and
vastly improve
• Maruti can provide some part of workshop to manufacture the e-car that will reduce the cost
Joint Venture – Cost effective

10. SOURCE OF FINANCE

11. MODE OF ENTRY – JONINT VENTURE
Electric car by TESLA - - - - - - - - - To be know bought in India by MARUTI using joint
venture as a modes of entry.

12. Financial figures
• TESLA Market Cap :- $59.70 billion
• Maruti Market cap: - $39.73 billion
• Joint venture ratio 55:45
• profit sharing will be as per joint venture ratio
• Profit share of Tesla- 55% of total profit
• Profit share of Maruti- 45% of total profit
$0.825 billion By Tesla
• project Amt – $1.5 billion
$0.675 billion By Maruti

13. Raising of funds / Source of finance
Fund to be raised for Project $1.5 BILLION
MARUTI RAISES FUND UPTO $0.675 BILION
EQUITY - 50% $0.3375
RETAINED EARNINGS 10% $0.0675
DEBT 10% $0.0675
LEASING 20% $0.135
GOVT ASSITANCE 10% $0.0675
60% RETAIL
INVESTORS
45% WHO BIDS
1000 SHARES
15% HIGH
NEWORTH ABOVE
1000 SHARES

14. Competitors
• Fully electric cars
• Mahindra e2oplus
• Mahindra e-verito
 Hybrid cars
 Toyota prius
 Toyota camry hybrid
 BMW i8
 Mahindra scorpio micro hybrid
 Maruti suzuki ciaz diesel SHVS
 Maruti suzuki ertica diesel SHVS

15. Requirements for
Prime/General Joint
Venture

16. Requirements for Prime/General Joint Venture
• participants must be certified in order to qualify for a Joint Venture
• Companies wishing to obtain a Joint Venture Certificate of Eligibility must submit the following
to the Division of Capital Asset Management and Maintenance's (DCAMM’s) Contractor Certification
Office at least four (4) weeks prior to the contract bid date:
o A completed Joint Venture Application form with all fields completed.
o Current Certificates of Eligibility for each participant
o Completed Update Statements for each participant
• Executed Joint Venture Agreement Each signature must be witnessed. The agreement must contain
following:
a)The name of the joint venture (e.g. ABC Construction/XYZ Construction, A Joint Venture)
b) The name and address of the managing partner
c) A breakdown of the proportionate shares of each participant in the Joint Venture

18. Current marketing strategy used by Govt of India to promote
E-VEHICLES IN INDIA
 Modi government plans major policy push to promote e-vehicles
 Government extends FAME-India scheme to promote electric vehicles
 Future belongs to electric vehicles despite limited driving range
 Govt planning tax sops to promote electric vehicle use

19. Thank you