A report on
Merger, Joint Venture and Strategic Alliance……
Submitted By
Chiranjit Bardhan (sec-C)
Gourab Deb (sec-B)
Gaurav Chettri (sec-A)
Joy Saha (sec-A)
Koushik Das (sec A)
Partha Bhowmik (sec C)
Rajat Pal (sec-A)
Tamnoy Saha (sec-C)
An Introduction
Topics
With
 Merger
 Joint Venture &
 Strategic Alliance
Presented By
Gourab Deb
Sec – B
Roll - 17
 What is Merger ?
Merger is an absorption of one or more companies by
a single existing company.“
i.e. America West + US Airways
What is Joint Venture ?
A joint venture is typically a business agreement
between two or more businesses for the purpose of a
mutually beneficial sales transaction for a product or
service. Each party will combine resources and agree
upon a shared percentage of the profits or a fee.
i.e.
 What is Strategic alliance
Agreement for cooperation among two or more
independent firms to work together toward common
objectives. Unlike in a joint venture, firms in a strategic
alliance do not form a new entity to further their aims
but collaborate while remaining apart and distinct
Merger : A merger is when two companies come together to
form a single company. They combine their respective resources.
Sometimes there are losses of jobs, but not all. Those decisions
are specified in the merger contract well in advance of the deal.
Basic
Difference
Joint Venture: is when two or more companies make an
agreement to do business in one specific area. They can
share the insurance, and liability costs and produce higher
profits. It is usually a short lived collaboration.
Strategic Alliance:
It covers a variety of flexible cooperative arrangement
between organizations, from fluid short term cooperation to long term formal
agreements. In strategic alliance partners remain independent even after
forming the alliance, both share alliance management and benefits and both
contribute to the alliance on continuing basis.
Described BY
 Joy Saha
 Koushik Das
 Tanmoy Saha
‘MERGER’
‘MERGER’
RELIANCE POWER : the company was incorporated in January
1995 as Bhawana Power Private Limited and changed its name to
Reliance Delhi Power Private Limited in February 1995.Its change its
name to Reliance E-Gen Private Limited in January 2004,Reliance
Energy Generation Limited in March 2004 and to Reliance Power
Limited in 2007.This company was established to develop,
construct, and operate power project in domestic and international
market.
Reliance Natural Resource Limited (RNRL): RNRL is an
Indian energy company involved in sourcing supply and transportation
of gas coal and liquid fuels. The company was incorporated on 24
march 2000and went public on 25th July 2005.
Reasons for merger
 Reliance power will retain the assets and people of RNRL
 To increase revenue.
 To increase market share.
How they make merger
 RNRL merged with reliance power in more than
50000cr. to the stock deal.
 BOD of both the companies exchange ratio of one
equity share of reliance power for every four share
of RNRL.
Benefits
 This merger accelerates the implementation of Reliance power plants for
creating more than 8000 MW gas based power generation capacity.
 Because of merger Anil Dhiruvai Ambani Group’s (ADAG) net worth going
to 64000cr, cash flow of Rs.13000cr and net profit of 8400cr. Reliance
Power and its share holders including Reliance infrastructure limited will
drive substantial benefit by this merger.
 It envisages reliability and cost efficiency for fuel supplies through RNRL’s
coal supply logistics and shipping business.
 RNRL net worth of 1900cr leading to an increase in Reliance Power net
worth to more than 16000cr & a significant further enhancement of the
Reliance Power’s overall growth prospects.
Some disadvantages of this merger can be
 Job loss of some of the workers because of corporate restructuring and making the merged entity a lean organization.
This may lead some sorts of fear and eventually decline the
morale and motivation of the workers and can incorporate fear
factor.
 The ratio that was approved by the board of directors as swap
ratio may not be appropriate for every section of the ordinary
shareholders.
******
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Presented By………
Koushik Das
Sec – A
Roll - 26
Tech Mahindra serves telecom service
providers , equipment manufactures & software
system. Tech Mahindra is leading particular IT
skill and expertise enable clients to maximize
returns on their IT investment.
Satyam is a Information Technology Software
Development Services, Systems Integration, Product
Development, Electronic Commerce and Consulting. The
company also offers Network enabled services and online
information services.
Mahindra satyam is a leading global business and
information technology services company .The
company professionals excel in enterprise solution &
client relationship management.
 Key highlight of the merger
 The merger of tech Mahindra & Mahindra Satyam (Saytam computer
service) is largely seen as a positive deal by analysis considering
that the combined entity will become sixth largest software services
provider and will have a balanced revenue mix as it would client
concentration.
 The exchange ratio recommended by the values & approved by both
the bonds is 2 share of tech Mahindra(face value of RS.10 each)for
every 17 share of Mahindra Satyam (face value of Rs2 each)
 The swap ratio for the merger is decided at two shares of Tech
Mahindra for seventeen shares of Mahindra Satyam.
Benefits of
 The main benefit in this merger will half propel the combined entity
in to top tier of Indian software & services companies.
 Another good thing that will benefit Tech Mahindra is that at least the
interests of both the companies will be aligned, team is one and they
can think of creating much bigger company. They will have about
17,000cr of market cap, making it the 5th largest company. I am sure
they will be targeting to enter the top 3 bracket.
Factors which could impact the industry
 Increase business/sales activities by
understanding your competitors’ businesses
better
 Recognize potential partnerships and
suppliers
 Obtain yearly profitability figures
………………..
Maruti Suzuki India Limited is a subsidiary of Suzuki Motor
Corporation of Japan. Maruti Suzuki is a leading
manufacturer of passenger vehicles in India. Lovingly referred
to as the people's car maker; over the past three decades
Maruti Suzuki has changed the way people in India commute
and travel.
Suzuki Powertrain India Ltd
Suzuki Powertrain India Limited is a joint venture of
Maruti Suzuki with Suzuki Motor Corporation, Japan at
Manesar. It manufactures world class diesel engines
and transmissions for cars. This diesel engine plant has
a capacity to manufacture 300,000 diesel engines a
year.
In a move that will bring all diesel engine manufacturing
facilities of Maruti Suzuki India Ltd (MSIL) under a single
management, the country’s largest auto maker on
approved a proposal to merge group unit Suzuki
Powertrain India Ltd with itself.
Market Scenario
Benefits……
* After the merger, Japan’s Suzuki Motor Corp’s stake in
MSIL will go up to 56.2 per cent from the current 54.2 per
cent. The merger will be effected through a share swap.
* MSIL will be able to bring its entire diesel engine capacity
under a single management control.
Disadvantages……
 Clashes of culture between different types of businesses
can occur, reducing the effectiveness of the
integration.
 May need to make some workers redundant, especially
at management levels - this may have an effect on
motivation.
 May be a conflict of objectives between different
businesses, meaning decisions are more difficult to
make and causing disruption in the running of the
business.
>>>>*<<<
Chiranjeet Bardhan
Rajat Pal
Partha Bhowmik
Presented By……………
Chiranjit Bardhan
Sec – C
Roll - 10

Sony company founded in 7 may 1946, it is a
Japanese company.
One of the leading manufacturers of electronics,
video, communications, gaming consoles and
information technology products for the consumer
and professional markets, which developed the
company into one of the world's richest
companies.
It ranked 87th on the 2012 list of Fortune global.
 Ericsson company founded in 1876 as a telegraph
equipment repair shop, it was incorporated on August
18, 1918.
Today, Ericsson is a leading provider of
communications equipment and related professional
services and multimedia solutions to operators of
mobile and fixed networks worldwide.
Like most of the telecommunications industry, LM
Ericsson suffered heavy losses after the
telecommunications crash in the year 2000.
Sony Ericsson is a joint venture established in 2001
by the Japanese consumer electronics company Sony
Corporation and the Swedish telecommunications
company Ericsson to make mobile phones.
Sony was having 47% of market share and ericsson
was having 53% while starting their joint venture.
Reasons for forming a Joint Venture
Internal reasons
Build on company's strengths
Spreading costs and risks
Improving access to financial resources
Economies of scale and advantages of size
Access to new technologies and customers
Access to newer managerial practices
Strategic Goal
Synergies
Transfer of technology
Diversification
Competitive goals
Influencing structural evolution of the industry
Pre-empting competition
Defensive response to blurring industry boundaries
Creation of stronger competitive units
Speed to market
Improved agility
Benefits and Opportunities Of
 Existing Knowledge of Target Market which is consumers
in the age group of 15-40.
Creation & Innovation of Fantastic Products
Most attractive & innovative Global Brand
Untapped Markets- such as Rural markets
More Demand for luxury products from high end user
Disadvantages and Threats of
Low effective Distribution Channels.
Less importance given to Promotional activities.
Competition from other small players in the market
such as Nokia, Samsung, Motorola etc.
Entry of new competitors.
Change in technology such as introduction of
‘iPhone’ by Apple
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PRESENTED BYRAJAT PAL
SECTION-A
No:41
Roll-
MARKET SITUATION
Before 1980 Indian government did not allow foreign
companies to enter into domestic market. Because it could
give a tough competition to the Indian companies.
But after 1980 Indian Government started allow the foreign
companies to do business in Indian market through joint
ventures.
HERO is a basically cycle manufacturer company.
It was established in 1956 in Ludhiana, Punjab.
HERO is the largest by-cycle manufacturer in the
world. It manufactures over 16000 bicycles in a
day.
HONDA Motor company was established in the month of
September on 1948. It is a Japanese company. The total
capital of HONDA is ¥86 billion(March 31,2012).
Why HONDA had selected HERO
Because of the following reason HONDA selected
HERO for the joint venture-
*HERO had a large and very good distribution
channel.
*HERO had a very good and reliable image.
*HERO was experienced in handling large volume of
production.
ABOUT THE CONTRACT
* HONDA and HERO enter into the contract for joint venture in june,1984 and formed
a new company named HERO HONDA.
* According to the contract HONDA will provide technical facilities with research and
development.
* HONDA agreed to give $ 500,000 and royalty in SP.
* Both HERO & HONDA held 26% equity with other 26% are
rest of the shares are sold to the financial institutions.
sold to the public and
HERO HONDA had grown continuously and became the
largest two-wheeler manufacturer company in the world with
annual sales volume over2 million motorcycles.
• HEROHONDA had 5000 outlets.
• HEROHONDA Splendor was the largest selling motorcycle
brand.
Reasons for
success
Reliability on HERO.
Better fuel efficiency.
Comparatively low price.
Individual dignity and teamwork.
Absence of major competitors in the market
initially.
FAILURE OF THE JOINT VENTURE
After the successful partnership of 26 years they broke up.
HONDA sold their 26% shares to HERO Group and after
that it has become HERO MOTOCORP.
REASONS
a)Companies preferred the freedom of
making their own decisions.
b)Higher royality for HONDA. It was increased to 2-3 % of
sales and it would grow up to 8%.
CONCLUSIO
N
As a result of joint venture between HERO and
HONDA both the company has gained capacity and
expertise. It helped HERO to enter in the automobile
sector and to gain technology. And in case of HONDA
they have got chance the chance to enter and
establish their brand name in the Indian market.
Due to the different culture and management styles
result in poor integration and co-operation.
Presented by.
Partha Bhowmik
Sec – C
Roll – 36
Sunil Bharti Mittal
Chairman and Managing Director of Bharti Group
Bharti Enterprises
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Bharti Enterprises is one of India’s
leading business groups with interests in 
telecom, agri-business, financial services 
and retail.
Bharti Airtel
Bharti Teletech
Telecom Seychelles
Comviva Technologies Ltd
Field Fresh Foods Pvt. Ltd
Bharti Retail
Bharti AXA General
Insurance
Bharti AXA Life Insurance
Bharti AXA Investment
Managers
Centum Learning Limited
Jersey Airtel
Guernsey Airtel
Bharti Foundation
Bharti Realty
Bharti Infratel
 AXA S.A. is a French global insurance group headquartered in the 8th
arrondissement of Paris.
 The AXA group of companies engage in life, health and other forms of
insurance, as well as investment management. The group operates primarily in
Western Europe, North America, the Asia Pacific region, and the Middle East.
 The AXA Group encompasses five operating business segments: Life &
Savings, Property & Casualty, International Insurance (including reinsurance),
Asset Management and Other Financial Services. It ranks as the 9th largest
company in the world (based on revenue) on the 2010 Fortune Global
 Bharti AXA Life Insurance is a joint venture between
Bharti, one of India’s leading business groups with
interests in telecom, agriculture business & retail, and
AXA, world leader in financial protection and wealth
management.
 The joint venture company has a 74% stake from Bharti
and 26% stake of AXA.
 Bharti AXA Life Insurance Company Limited started
operations in Dec. 2006
 Bharti AXA Life is one of the newest and fastest growing
life insurance companies in the country.
Bharti
AXA
 A trusted brand name
 A trusted brand name
 All India presence
 Global presence
 Largest in the telecom
 Largest in the insurance
industry
 Strong financial base
industry (in terms of revenue)
 Strong financial base
Benefits & Opportunities for
 Integrated approach to seek innovative solutions
 Policies for various age and economic groups
 International expertise of AXA group
 Strong Marketing Campaign
 The joint venture has a 74% stake from Bharti and 26%
stake from AXA Asia Pacific Holdings Ltd
 Bharti enterprise serves over 110 million customers
 Growing rural market
 Earning Urban Youth
Disadvantages & Threats for
 Less penetration in rural India
 Small agent base
 Insurance companies have a poor image
 when it comes to payment of dues
 Entry of new NBFCs in the sector
*****
Strategic Alliance
STRATEGIC ALLIANCE
Presented by
Gaurav Chettri
Sec – A
Roll - 19
Nokia is one of the world’s biggest manufacturers of
mobile phone. Nokia was born in 1895.The company got
its name from the river Nokianvirta. In 1990 Nokia
started making military and marketable mobile radio
communications. Together with Salora Oy, Nokia
created the first VHF radio in 1964. In 1992 Nokia first
introduced, the Nokia 1011,its first GSM handset. Two
years later the company first introduced their Nokia
tune.Nokia’s first 3G phone, the Nokia 6650 was
launched in 2002.
Microsoft Corporation is an American multinational
corporation headquartered in Redmond, Washington. The
company was founded by Bill Gates and Paul Allen on April
4 1975.Microsoft is the world’s largest most valuable
companies. Microsoft was establish to develop and sell
BASIC interpreters for the Altair 8800.It rose to dominate
the personal computer operating system market with MSDOS in the mid 1980s.
Nokia and Microsoft plan a "third ecosystem," an alliance that
touches all parts of the mobile phone business.
Microsoft and Nokia announced a broad mobile phone partnership
today that joins two powerful but lagging companies into mutually
reliant allies in the mobile phone market.
As expected, Nokia plans to use Microsoft's Windows Phone 7
operating system as part of a plan to recover from competitive
failings detailed in Nokia Chief Executive Stephen Elop's "burning
platform" memo.
But it's deeper than just an agreement to install the OS on Nokia's
phones. Instead, the companies call it an attempt to build a "third
ecosystem, acknowledging that competing with Apple's i-OS and
Google's Android involves a partnership that must encompass
phones, developers, mobile services, partnerships with carriers, and
app stores to distribute software.
REASONS FOR STRATEGIC ALLIANCE
* .Great Usability- Microsoft tiles are even more simpler to set up and use
and they put the information that’s most needed by users right where you
need it.
* .Office- Dealing with proper work documents on a mobile device has always
been the source of a lot of pain for users.
* .Media Center-Windows Phone does a great
job of bringing together your
media in an attractive and user friendly way.
* Mobile Mail-Windows mobile are providing MS as
your mobile device
operating system. Many peoples are dependent on connecting to a
Microsoft Exchange Server, etc.
There are many specific advantages of a global
strategic alliance like
 Gain new skills and technology.
 Develop new products at a profit.
 Share fixed costs and resources.
 Enlarge your distribution channels.
 Broaden your business and political contact base.
 Gain greater knowledge of international customs and
culture.
 Enhance your image in the world marketplace.
Disadvantages of the Global Strategic Alliance
Like,
 Weaker management involvement or less equity stake.
 Fear of market insulation due to local partner's presence.
 Less efficient communication.
 Poor resource allocation.
 Difficult to keep objectives on target over time.
 Loss of control over such important issues as product
quality, operating costs, employees, etc.