JV success hinges on partner longevity: Noel Tata
Bengaluru: A successful joint venture is built on the chemistry and trust between partners rather than the business case, said Noel Tata, chairman of Tata
Bengaluru: A successful joint venture is built on the chemistry and trust between partners rather than the business case, said Noel Tata, chairman of Tata Trusts.The remark comes after he led four major joint ventures, including one signed last year with Swiss commodities trading firm Mercuria. Tata was speaking at the annual alumni event of the Indian Institute of Management Bangalore."To me, the fundamental principle of a successful JV is the chemistry between the two partners... I don't spend as much time on the business case as I do on understanding who my counterpart is, how they manage their business.
The longevity of the counterparty's management is a very crucial one," he said.Read More: AI, data centre costs are slowing IT hiring, Zoho founder Sridhar VembuThe other JVs include Spain-based Inditex with Trent for Zara, UK-based Tesco with Trent's Star Bazaar, and Turkey-based Arçelik with Voltas for Voltas Beko.Tata also used the platform to lay out a broader roadmap for Tata Trusts, India's largest philanthropic organisation, calling for a shift toward institution-building in healthcare and education."The founders left their shares in the companies to the Trusts with one message – do good for India.
They never said become the biggest company," he said.As part of this push, Tata announced plans to build 40-50 not-for-profit general hospitals across India, following a tie-up with the Assam government to set up 17 cancer care hospitals in the state. The hospitals will run on a cross-subsidy model, with paying patients funding treatment for economically weaker sections.Read More: NCLAT rejects DoT's 469-crore claim appeal in Rolta insolvency; upholds resolution planOn education, Tata pointed to the upcoming undergraduate institution being set up with IIM-B as a starting point, and said India needs more world-class institutions to stop the outflow of students abroad.He also said that there should be greater accountability in philanthropy.
"When someone says we have touched thousands of lives, my question is: what does 'touched' actually mean? We need measurable outcomes," he said.Trent's origins after the Tata Group exited the Lakme cosmetics business in the late 1990s, Tata said the venture's slow, private-label-driven growth shaped his broader philosophy. "If you become the best, size follows. Trying to become the biggest without first becoming the best can end in disaster," he said.EOM
The BriefWire