Joint Venture - Wazir Advisors

Transaction Advisory > Textile and Apparel > Joint Venture

Assisting the Client in Finalizing a Joint Venture with an International Manufacturer in the Field of Technical Textiles

Background

A central public sector enterprise was interested in establishing a joint venture with an International technical textile manufacturer. The purpose of this partnership was to establish a new Greenfield project.

Project Objectives:

The key objective of the project was to find a potential International technical textile manufacturer for joint venture. The assignment was accomplished by answering the following questions:

1. Which are the International technical textile manufactures?
2. What is their market positioning?
3. How much is their investment potential?
4. Have they invested elsewhere? If yes, what experience their partner had?
5. What is the right way to approach them?
6. What should be the investment terms?

Deliverables:

Wazir, with its wide connection with Indian companies, provided its inputs for most suitable partner for the client
Advised client on best model for partnership with the identified partner and supported in finalizing the joint venture agreement
Assisted in conducting preliminary discussions with a few parties who in principle were prepared for the proposed arrangement

Assistance in Finding a Joint Venture Partner for Setting-up a Shirt Manufacturing Facility

Background

A Turkish manufacturer and retailer of premium formal and casual shirts intended to enter into Indian market. We assisted the client to find a suitable joint venture partner in manufacturing and retail sector.

Project Objectives:

Core objective of the assignment was to provide assistance to the client in following:

Identifying a potential shirt manufacturer and retailer in India based on the following:
1. Presence in the segment and its market penetration
2. Brand value and positioning
3. Market demand analysis
Evaluating their business performances covering:
1. Revenue generated in last few years
2. EBITDA margins
3. Domestic market share
Selection of the most suitable Indian partner

Deliverables:

Benchmarking study of potential partners based on the following:
1. Overall reputation and image of the company
2. Financial performance and stability
3. Experience in textile/apparel or similar industry
4. Track record of partnership with international firms (if any)
5. Management bandwidth and availability
Facilitated meetings and discussions of interested companies with client group management
Assisted in signing of JV Agreement as per the terms defined by the client