Hero Honda JV Termination: Fill it, shut it, forget it

By Jagannadham Thunuguntla, strategist and head of research, SMC Global Securities Limited

The split between the Hero group and Honda, from their 26-year-long Joint Venture "Hero Honda" is appearing to be in the final stages.

Over a period of time, several joint ventures were formed between Indian companies and the international companies across the industries.

The automobile industry in paqrticulat has seen a series of joint ventures such as Maruti Suzuki, Hero Honda, Bajaj Kawasaki, TVS Suzuki, Kinetic, Honda, Honda Siel, etc.

These joint ventures have proved to be perfect marriages between the diverse skill sets of Indian partners and the international partners, with the Indian company bringing in local knowledge, and the foreign collaborator brining in the global R&D exposure and skills.

However, the Indian economy has reached a point where Indian companies and their foreign partners now feel that the size of the market has reached a level where both the partners can function independently.