Monday, August 27, 2007

Capacity expansion

Book Value
Globalisation in China, India and Russia
Jean-François Huchet et al

JV jeopardy

Joint ventures or JVs are oft heard about. JVs are a popular idea, but many JVs have broken down within a few years of their formation, note Sugata Marjit and Prabal Roy Chowdhury in one of the essays included in ‘Globalisation in China, India and Russia’ edited by Jean-François Huchet et al ( ). It seems studies have found the average life span of a JV firm to be 3.5 years. “During the mid-1990s many of the Indian JVs had serious problems… A major area of dispute appears to be that of capacity expansion.”


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