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Abhinav Kumar BLP
Ananthan P. HRLP
Anurag Dubey MLPGaurav Shahare BLP
Sahiba Sanan HRLP
Shailesh Jain BLP
The secret of success of Anand Group behind buildingand sustaining Joint ventures , whereas most others havefailed
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JV FailuresO Low success rate of JV: 47%
failures in the world
O Mistakes during the launch phaseoften erode up to half thepotential value creation of a
ventureO Lack of communication
throughout the life of the venture
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Governance - JV ChallengeO Parents share control of JV
O Sharing complicates the decision
making
O Mismatch between reporting system,process and metrics
O Weak controls costs money andexposes to unexpected risks
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Deep C AnandFoundation
Anand SupervisoryBoard
Anand PolicyCommittee
Anand ManagementCommittee
Operating Companies Corporate Staff
Hub Leaders
Advisors Director
DevelopmentCouncil
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Deep C Anand FoundationO Ensures good governance
O Ensures orderly and smooth
succession planning
O Segregates the roles of Promoters andAnand management
O Bridge the gap between Promoters andGroup management
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Strategy - JV ChallengeO Parents may hold different strategic
interests
O May affect nature and degree ofintegration
O May lose focus on first year goal of the
JV
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Deep C AnandFoundation
Anand SupervisoryBoard
Anand PolicyCommittee
Anand ManagementCommittee
Operating Companies Corporate Staff
Hub Leaders
Advisors Director
DevelopmentCouncil
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Anand Supervisory BoardO Evolves long term strategy
O Safeguards stakeholder interests
O Strengthen relationship with foreignclients
O Specifies the first year goal for JV which
others fails to do
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Economics - JV ChallengeO Parents provides ongoing services,
staffing and resources to JV
O It affects venture economics
O Transfer pricing may become an issue
O Less transparency as compared to
parents
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Deep C AnandFoundation
Anand SupervisoryBoard
Anand PolicyCommittee
Anand ManagementCommittee
Operating Companies Corporate Staff
Hub Leaders
Advisors Director
DevelopmentCouncil
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Anand Policy CommitteeO Regulates services and resources
O Decides policy issues for JV
O Approves new projects and investmentsfor JV
O Maintains transparency, Regular audit
O Each JV is overseen by one of thecommittee members
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Organization - JV ChallengeO Issues with cultural difference
O Productivity, compensation issues and
managing career paths
O Treated as dumping grounds forunderperforming executives
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Deep C AnandFoundation
Anand SupervisoryBoard
Anand PolicyCommittee
Anand ManagementCommittee
Operating Companies Corporate Staff
Hub Leaders
Advisors Director
DevelopmentCouncil
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Anand Management
CommitteeO Reviews and decides all operating
issues
O Drives synergies, cost optimisationand productivity in the Group
O Right incentives and processes tosecure top talent
O Creates compelling value propositionfor JV employee
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Anand GroupO Believes that business is 90% people
O Operating Engineers - knowledge
workforce
OAnand U - as the hub for transfer oflearning throughout the Group
O Anand Production System, a LeanManufacturing initiative
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Success in JV due toO Strong organization structure
O Cost and productivity optimization
O Strong value proposition
O Transparency in operations
O Employee centric approach
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ReferencesO http://www.anandgroupindia.com/corpor
ate_governance.aspx
O www.hbr.org
http://www.anandgroupindia.com/corporate_governance.aspxhttp://www.anandgroupindia.com/corporate_governance.aspxhttp://www.hbr.org/http://www.hbr.org/http://www.anandgroupindia.com/corporate_governance.aspxhttp://www.anandgroupindia.com/corporate_governance.aspxhttp://www.anandgroupindia.com/corporate_governance.aspx8/4/2019 Anand Group - JV
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