The Ultimate Cheat Sheet On Manufacturing Joint Ventures


Your business may have strong potential for growth and you may have innovative ideas and products.

However, a joint venture could give you a lot more…


What is a ‘Joint Venture – JV’

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate and apart from the participants’ other business interests.

What is a ‘Manufacturing Joint Venture – MJV’

Manufacturing joint venture partnerships are unique deals that typically lead to greater distribution of some products. An impetus for such an arrangement may be to expand one company’s reach into a new region. The products may be developed to meet a certain need for a period of time, or production could lead to a long-term commitment to a market. In any industry, including manufacturing, the joint venture operates as a separate entity to the businesses forming the partnership.

A manufacturing joint venture between international partners can grant one company access to a new market. Regulatory approvals will likely have to be met in order for any product manufacturing to begin. Production often occurs in the nation where the product will be distributed.

Companies that become involved in a manufacturing joint venture have some role to play in the production of some product. Partners may be involved in the same part of the production process or may complement one another with different business lines. In a manufacturing venture, the participants may agree to lease or otherwise gain access to some facility where production for the item at the core of the partnership can begin. If partners are anxious to begin manufacturing in the short term but the life of the joint venture is expected to last for many years, a temporary facility may be used until some other more permanent location can be secured.

So without further ado, Here is the MJV Cheat Sheet (Drumroll)

1. More Resources
Manufacturing Joint Ventures can give you more resources
Ever felt like you had the best idea in the world, but you lack the resources to take your company global?
Well you are not alone, most small to medium businesses in the world face the same dilemma. The inability
to manufacture products at a faster pace simple means that you are in need of a manufacturing joint venture.
Preferably with a larger corporation that will give you more advantages than costs.
2. Greater Capacity
manufacturing joint ventures can let you punch above your weight
Partnering with a larger distribution firm gives you the power to literally “Punch above your weight”.
This means, that you get to join the big leagues on the tailcoats of your Big Brother(New business Partner)
Of course this will only work if there is mutual gain for both parties.
3. Increased Technical Expertise
manufacturing joint ventures increases your technical expertise
Big brother will surely have a bigger pool of experts that you can consult for challenging issues.
As partners you legally get the right to be saved every now and then, but be wary, with great power
comes great responsibility. Everything in the business world comes with a price, so use your chips
4. Access to Established Markets and Distribution Channels
manufacturing joint ventures help you build a network of distributors
Lastly, Manufacturing Joint Ventures gives you access to a wide network of distributors that you
can definitely leverage on a later stage. One connection can lead to a 100 more if you play it right.
Did you like our cheat sheet? Are you in the LED Business?

V-TAC values and understands the importance of vendors in development of a brand. We
are tied up with the top dynamic manufacturers who have a team of qualified researchers
and engineers that are always on the search for the latest lighting tech solution to enrich
human lives.

We have shown our support to our vendors by investing alongside them in their production
facilities into their expansion, creation of product moulds and other facilities to gain better
control over our major product lines.

V-TAC has grown from strength to strength and has established itself as a global brand providing energy efficient lighting solutions covering more than 70 countries throughout Europe, Asia Pacific, Africa, Middle East and the USA. As a result of its relentless pursuit towards excellence, V-TAC has been listed in London Stock Exchange Group’s 1000 Companies to Inspire Europe 2016.

So what are you waiting for let’s connect.
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