Manufacturers of construction equipment. JCB Case Study Group 9 : Anna Constantino , Charlene Selle , Sebastian Eldrup -Jorgensen, Sidhesh Sarda , Thais Alvarez, Zien Huang,. Introduction. The company JCB - Charlene Reasons for entering India - Sid Joint Venture - Thais
Group 9: Anna Constantino, Charlene Selle, Sebastian Eldrup-Jorgensen, SidheshSarda, Thais Alvarez, Zien Huang,
•In 1950 only 18% of people in developing countries lived in cities
•In 2000 the proportion was 40%
•Developing countries have much faster urban population growth—an average annual growth rate of 2.3%, compared to the developed world's urban growth rate of 0.4%
Joint venture is a firm jointly owned by two or more independent firms. It is the most popular mode for entering new markets.
1991: Economic reform programme begun by Prime Minister PV Narasimha Rao.
India asked for a $1.8 billion bailout loan from IMF, which in return demanded reforms.
1998: - India carries out nuclear tests, leading to widespread international condemnation and India suffered the impact of economic crisis in Southeast Asia, the economics was getting worse.
1999: Signed bilateral Lahore peace declaration with Pakistan. The government budget deficit 5.8 billion U.S. dollars.
2002: March. The new export and import policy
Means: joint venture Reason: regulation & tariffs
Sharp deterioration in market conditions in construction!
Result: Revenue has fallen to £380 million (2009)2
OPERATEING LOSS of £68 million !!!
JCB India is seeking to ride the recovery with a new range of products for 2010.