International BusinessA PRODUCT IMPORTABLE AND MARKETED IN INDIA - ELECTRIC CAR

Presented by : -Manish Tiwari -16106A1051Ashish Thakur -16106A1054Kiran Agarwal - 16106A1058Nikhil Balai - 16106A1059Anup Yelve - 16106A1053

Rationale Behind selecting the Topic

Selection

1. WHO Report

Ambient Air Pollution: A Global Assessment of Exposure and

Burden of Diseases

WHO Standard for India: 20 µg/m3 .

A tool named Air Quality- Life Index (AQLI) developed by

The University of Chicago

Current Challenges the World is Facing

2. British Petroleum PLC

Reserves-Production Ratio

Deplete in

• Oil in 51 Years

• Coal in 114 Years

• Natural Gas in 53 Years

National Electric Mobility Mission Plan

Transformational paradigm shift in the automotive and transportation

industry.

Target

• To put 6-7 million EVs on road by 2020; 4-5 million are expected to be

two-wheelers.

• Reduce dependence on fossil fuels.

• To promote cleaner technologies.

Why do it?

• Result in 2.2 – 2.5 million tones of fossil fuel savings by 2020, that’s a

monetary saving of Rs 30,000 crore.

• Lower vehicular emissions and decrease carbon dioxide emissions by

1.3% to 1.5% by 2020

• Deliver economic growth, quality jobs and a cleaner future.

Why Electric Cars ?

1. No Gas Required

2. Reduction in Air Pollution

3. Savings

4. Safe to Drive

5. Cost Effective

6. Lower Maintenance

7. Reduced Noise Pollution

MODES OF ENTRYJOINT VENTURE

Benefits of Joint Ventures A joint venture can help your business

grow faster,

increase productivity and

generate greater profits

Sharing of risks and costs with a partner – ( as the Joint venture is in the ratio of 55:45, in same ratio risk can be share)

Access to greater resources, including specialized staff, technology and finance

Joint ventures often enable growth without having to borrow funds or look for outside investors

International joint venture eradicates the risk of discrimination

• Reduced risk i.e. Less government intervention if an alliance is formed with an indigenous business

• Better local market intelligence provided by indigenous joint venture partner.

• As tesla is leader in making electric car so the tie up with this company will increase the credibility and

vastly improve

• Maruti can provide some part of workshop to manufacture the e-car that will reduce the cost

Joint Venture – Cost effective

SOURCE OF FINANCE

MODE OF ENTRY – JONINT VENTURE

Electric car by TESLA - - - - - - - - - To be know bought in India by MARUTI using joint venture as a modes of entry.

Financial figures

• TESLA Market Cap :- $59.70 billion

• Maruti Market cap: - $39.73 billion

• Joint venture ratio 55:45

• profit sharing will be as per joint venture ratio

• Profit share of Tesla- 55% of total profit

• Profit share of Maruti- 45% of total profit

$0.825 billion By Tesla• project Amt – $1.5 billion

$0.675 billion By Maruti

Raising of funds / Source of finance

Fund to be raised for Project $1.5 BILLION

MARUTI RAISES FUND UPTO $0.675 BILION

EQUITY - 50% $0.3375

RETAINED EARNINGS 10% $0.0675

DEBT 10% $0.0675

LEASING 20% $0.135

GOVT ASSITANCE 10% $0.0675

60% RETAIL INVESTORS

45% WHO BIDS 1000 SHARES

15% HIGH NEWORTH ABOVE 1000 SHARES

Competitors

• Fully electric cars

• Mahindra e2oplus

• Mahindra e-verito

Hybrid cars

Toyota prius

Toyota camry hybrid

BMW i8

Mahindra scorpio micro hybrid

Maruti suzuki ciaz diesel SHVS

Maruti suzuki ertica diesel SHVS

Requirements for Prime/General Joint Venture

Requirements for Prime/General Joint Venture

• participants must be certified in order to qualify for a Joint Venture

• Companies wishing to obtain a Joint Venture Certificate of Eligibility must submit the following to the Division of Capital Asset Management and Maintenance's (DCAMM’s) Contractor Certification Office at least four (4) weeks prior to the contract bid date:

o A completed Joint Venture Application form with all fields completed.

o Current Certificates of Eligibility for each participant

o Completed Update Statements for each participant

• Executed Joint Venture Agreement Each signature must be witnessed. The agreement must contain following:

a)The name of the joint venture (e.g. ABC Construction/XYZ Construction, A Joint Venture)

b) The name and address of the managing partner

c) A breakdown of the proportionate shares of each participant in the Joint Venture

Current marketing strategy used by Govt of India to promote

E-VEHICLES IN INDIA Modi government plans major policy push to promote e-vehicles

Government extends FAME-India scheme to promote electric vehicles

Future belongs to electric vehicles despite limited driving range

Govt planning tax sops to promote electric vehicle use

Thank you