Anand Group - JV

8/4/2019 Anand Group - JV

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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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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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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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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.aspx


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Anand Group - JV

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