Subject category:
Economics, Politics and Business Environment
Published by:
IBS Center for Management Research
Length: 8 pages
Data source: Published sources
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https://casecent.re/p/21400
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Abstract
The case traces the various developments from the time the joint venture took place till the break-up in 2000. In 1995, Escorts and Yamaha Motors formed a 50:50 joint venture (EYML). From 1995 to early 2000, EYML took several steps to become the number one player in India''s two-wheeler market. However, in mid 2000, Escorts divested 24% equity to Yamaha Motors and as a result, Yamaha Motors became a majority stakeholder in the venture (74:26). In May 2001, Escorts sold its remaining 26% equity, thus exiting from the joint venture. The case is intended for MBA/PGDBM level students as part of the business environment curriculum. From the case students are expected to understand why Escorts pulled out of the joint venture and how this move is going to affect Yamaha Motors. Students can also discuss Escorts new business initiatives and examine how the company is placed to succeed in new economy businesses. This case will also enable students to understand the structural changes in the two-wheeler market in India.
About
Abstract
The case traces the various developments from the time the joint venture took place till the break-up in 2000. In 1995, Escorts and Yamaha Motors formed a 50:50 joint venture (EYML). From 1995 to early 2000, EYML took several steps to become the number one player in India''s two-wheeler market. However, in mid 2000, Escorts divested 24% equity to Yamaha Motors and as a result, Yamaha Motors became a majority stakeholder in the venture (74:26). In May 2001, Escorts sold its remaining 26% equity, thus exiting from the joint venture. The case is intended for MBA/PGDBM level students as part of the business environment curriculum. From the case students are expected to understand why Escorts pulled out of the joint venture and how this move is going to affect Yamaha Motors. Students can also discuss Escorts new business initiatives and examine how the company is placed to succeed in new economy businesses. This case will also enable students to understand the structural changes in the two-wheeler market in India.