A joint venture is the coming together of 2 or more companies that wish to form a single enterprise for a project / profit. They agree to share risks and rewards, while carving a niche in the market. Check out these famous JVs:
- Sony JV with Ericsson – Sony Ericsson
This 50:50 joint venture gave rise to Sony Ericsson. It was a famous mobile handset brand of its time. The company was able to give a tough fight to giants like Nokia and Apple.
- Government of India JV with Suzuki Motor Corporation, Japan – Maruti Suzuki
Maruti Suzuki (formerly Maruti Udyog) was a unique JV. It aimed to reduce inventories, avoid work duplication and ensure optimal resource usage. Suzuki’s current equity is 56.2%.
- NBC Universal Television Group JV with Disney ABC Television Group – HULU
This joint venture created HULU, the famous video streaming website. It is an application that streams high quality content on mobiles, laptops and PCs.
- Tata Sons JV with Singapore Airlines – Vistara
Vistara is the brand name of the JV between the two companies. Tata Sons holds 51% of the JV while SIA has the remaining 49% stake. Vistara caters services to over 30 destinations including 4 international ones.
- General Electric JV with Microsoft Corporation – Caradigm
The health IT company Caradigm was formed by this joint venture. Merging clinical applications and technology that converts into intelligence became a great boon to the healthcare sector.