CODE INDO CHINA JV – CYCLE MANUFACTURING
We helped our Indian Partners a distributor in Bicycles to setup a JV with a Chinese Partner in India. We assisted him to JV terms negotiations, Regulatory approavals, incentives, ERP planning, factory land searching, Tax
Client Profile:
Our client, an Indian distributor in the bicycle industry, sought to establish a Joint Venture (JV) with a Chinese partner in India. The objective was to leverage the Chinese partner’s manufacturing expertise while benefiting from local market knowledge and distribution networks.
Challenges Faced:
JV Terms & Negotiations
Structuring an equitable JV agreement that ensured mutual benefit and long-term sustainability.
Regulatory Approvals & Compliance
Navigating complex legal requirements for foreign investment and JV partnerships in India.
Incentives & Financial Planning
Identifying government incentives and financial support mechanisms for manufacturing ventures.
ERP & Operational Planning
Implementing an efficient Enterprise Resource Planning (ERP) system to streamline operations.
Factory Land Search & Setup
Identifying an optimal location for the manufacturing unit while ensuring compliance with industrial regulations.
Tax Advisory & Structuring
Optimizing tax liabilities and ensuring compliance with international trade and local tax laws.
Our Solution:
JV Structuring & Negotiations
We facilitated discussions between the Indian and Chinese partners to establish transparent and mutually beneficial JV terms, ensuring compliance with regulatory requirements.
Regulatory & Legal Compliance
Assisted in obtaining necessary approvals, including FDI compliance, licensing, and industrial permissions required for the JV.
Government Incentives & Subsidy Advisory
Identified and applied for relevant government schemes and incentives to reduce the cost burden on the new venture.
ERP Implementation Strategy
Provided advisory on selecting and implementing an ERP system to integrate supply chain, manufacturing, sales, and finance operations efficiently.
Factory Location & Infrastructure Support
Conducted a feasibility study to identify the best industrial location, assisted in land acquisition, and ensured compliance with environmental and zoning regulations.
Tax Planning & Financial Structuring
Developed a tax-efficient structure for the JV, optimizing duties, GST, and income tax implications to enhance profitability.
Outcome:
- Successfully structured the Joint Venture, aligning the interests of both partners.
- Ensured compliance with all regulatory requirements, enabling smooth operations.
- Secured government incentives, reducing initial capital expenditure.
- Implemented an efficient ERP system, streamlining production and supply chain management.
- Identified and acquired an optimal location for factory setup, ensuring long-term sustainability.
- Developed a tax-efficient financial model, optimizing costs and maximizing profitability.
Conclusion
Through our expertise in JV structuring, regulatory compliance, and operational support, we enabled our client to establish a successful bicycle manufacturing venture in India in collaboration with their Chinese partner. Our end-to-end assistance ensured a smooth market entry, cost optimization, and long-term business sustainability.
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