Objectives & Guidelines for submitting Expression of Interest for Joint Venture / Collaboration with International Companies
Issued by Industrial Extension Bureau (iNDEXTb) Block No. 18, 2nd Floor, Udyog Bhavan, Sector 11, Gandhinagar – 382011. Gujarat, India. Phone: 079-23250492/93 Fax: 079-23250490 Web site: www.indextb.com
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TABLE OF CONTENTS
Contents 1.
Objective ............................................................................................................................................... 3
2.
Application Criterion ............................................................................................................................. 4
3.
Documents to be submitted along with EoI ......................................................................................... 5
4.
Required Information............................................................................................................................ 5
5.
Selection Criteria ................................................................................................................................... 9
6.
Important Information ........................................................................................................................ 10 Annexure A.......................................................................................................................................... 10
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1. Objective Government of Gujarat has been playing a very active role in promoting Gujarat as a potential investment destination to both domestic and foreign investors. Industrial Extension Bureau (iNDEXTb), has been appointed as a nodal agency by the Gujarat Government for investment promotion and organizing Vibrant Gujarat Summits. iNDEXTb, is also a single point of contact and provides professional services to prospective investors. Vibrant Gujarat is a biennial event to promote and facilitate trade activities in the state. This event attracts huge participation from not only domestic players but also from significant international majors. An important part of this initiative is to showcase Gujarat both nationally and globally as a preferred destination for investment. As part of the upcoming Vibrant Gujarat 2015 summit, iNDEXTb intends to encourage alliances and JVs / strategic partnerships between Gujarat based companies and international companies wherever such relationships may help boost the socio-economic climate of the state and the country. These alliances/ partnerships can be both Greenfield and Brownfield including joint ventures, technology Transfer arrangements, setting up of mutually beneficial business units, establishing CoE’s or R&D facilities, etc. (Refer to Annexure A) These alliances can be helpful in following ways:a) Sharing of risks and exploring economies of scale; b) Access to technology c) Access to international markets and an Increase in export potential for state based companies d) Access to capital; e) Reduction of manufacturing costs and other overheads including expenditure on R&D; f) Bringing in Complimentary skills/resources; g) New technology or products or capital h) Ensuring competitive advantage
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2. Application Criterion Only the companies /organizations /firms (herein after “applicant”) meeting the following Application criteria may apply: a) The applicant should have a minimum annual turnover of INR 50 Crore (INR FIFTY CRORE) in each of the previous three financial years (FY 2011, 2012,2013 ) and should not be a trading company b) The applicant should have positive net worth in each of the previous three financial years (FY 2011, 2012,2013 ) c) The applicant should have been established and operating from at least 5 years before the date of this advertisement d) The applicant should have PAN and TAN numbers with Income tax SLNA e) Currently this invitation is open only to companies having a registered office or business unit within the State of Gujarat
Companies involved in activities not permitted under the Central & State laws and considered as harmful or hazardous to the environment need not apply unless the primary activity is the prevention or reduction of such effects to the environment.
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3. Documents to be submitted along with EoI The EOI should be submitted along with the following documents failing which the application will be rejected. a) Certificate from statutory auditor and audited financial statements for the three previous financial years (FY 2011,2012,2013) with a minimum annual turnover of INR 50 Crore in the last 3 financial years b) Certificate of Incorporation issued by the Registrars of Companies clearly stating the year of establishment c) Detailed ownership structure of the establishment including cross holdings
4. Required Information SECTION 1: COMPANY DETAILS AND GENERAL INFORMATION
Full Legal Name of Company with official company website Names of Owners/Promoters and Executive Management Industry /Sector Year of Establishment Service Offerings / Products / Specialization Registered office Address
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Contact Number Email Address Domestic Offices (#) Global Offices (if any) Number of Full Time Employees SUBSIDIARIES, ASSOCIATES AND/OR OVERSEAS REPRESENTATIVE (Attach list, if necessary) PAN TAN
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SECTION 2: FINANCIAL INFORMATION
Annual Turnover
(1) 2011_____INR______Crore (2) 2012_____INR______Crore (3) 2013_____INR______Crore
Total operating revenue
(1) 2011_____INR______Crore (2) 2012_____INR______Crore (3) 2013_____INR______Crore
Net Worth
(1) 2011_____INR______Crore (2) 2012_____INR______Crore (3) 2013_____INR______Crore
Profit after Tax
(1) 2011_____INR______Crore (2) 2012_____INR______Crore (3) 2013_____INR______Crore
SECTION 3: TECHNICAL COMPETENCE & PREVIOUS ALLIANCE DATA
Title of Invention Patents filled / held
Date of Filling Status of application Jurisdiction Previous Alliances and JVs
Region
Country (specify if any)
Details
Type of Alliance
Joint Ventures, Mergers & Acquisitions, Setting Up of Mutually beneficial Business Units, Establishing CoE’s and R&D Facilities
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Country of alliance Investment made by the applicant
Investment made by Partner firm Employment Creation Indicative type of Alliances and JVs Region
Country (specify if any)
Details Type of Alliance
Joint Ventures, Mergers & Acquisitions, Setting Up of Mutually beneficial Business Units, Establishing CoE’s and R&D Facilities
Proposed amount of investment to be made by the applicant Expected amount of investment to be made by Partner firm
Please clearly explain how a JV / Alliance will help your company / business (Max 500 words)
Please explain how a potential alliance will help the international partner and why they should form a relationship with you. Include names of any potential international companies where alliances with your company will be desirable. (Max 500 words)
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5. Selection Criteria The applications will be evaluated by a committee. The decision of the committee in this regard will be final and binding to all concerned. The applicants will be evaluated on the following broad parameters: a) Financial Strength b) Potential of the JV/Alliance in benefiting the economy of the State and the Country c) Business idea and approach for the JV /Alliance and explanation of how this is beneficial to both the domestic and investor company d) Preference will be given to applicants having Past JV / Collaboration experiences
CERTIFICATION: I, the undersigned, warrant that the information provided in this form is correct and, in the event of changes, details will be provided as soon as possible:
Name____________________________________________________Functional Title_____________________________________
Signature________________________________________________Date_________________________________________________
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6. Important Information
The objective of this exercise is to facilitate identify potential alliance opportunities for Gujarat base companies. This is a service being provided free of charge to applicants deemed suitable. The Government of Gujarat or iNDEXTb or any of the companies of the Government of Gujarat will not be directly liable for any JV/Alliance/business relationships with any of the parties concerned. Government of Gujarat or iNDEXTb or any of the companies of the Government of Gujarat do not take responsibility for any consequences arising out of actions undertaken by the involved private companies as a result of this process. iNDEXTb’s role will end by way of publishing list of potential partners arising out of this process and making it available to foreign companies who are interested in joint ventures / collaborations. iNDEXTb reserves the right to utilize the information of any potential alliance for promotional purposes before, during or after the VGGIS 2015 Summit. The information collected by iNDEXTb will be used only to encourage alliances and strategic partnerships between Gujarat – based companies and international. Accordingly, whilst iNDEXTB endeavor to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the information, products, services, or related information for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
Annexure A A joint venture is a partnership through which two or more firms create a separate entity to carry out a particular economic activity in which each partner takes an active role in decision making. The essential features of joint ventures may be classified as: a) An agreement between the parties on common long term objectives such as production, sales, financing etc b) pooling of assets, IPRs and other facilities for achievement of agreed objectives c) Sharing of profits Joint Venture (JV) and Wholly Owned Subsidiary have been defined in the Foreign Exchange Management (Transfer and Issue of Foreign Security) Regulations, 2000 as under: Joint Venture (JV) means a foreign entity formed, registered or incorporated in accordance with the laws and regulations of the host country in which the Indian party makes a direct investment. In recent years, the term "joint venture" has also been used interchangeably with a newer business vehicle called the "strategic alliance". A strategic alliance is a specific form of collaboration between two or more companies.
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Features of a Joint Venture / Collaboration Generally the following factors must be present: a) Contribution by the parties in the form of money, property, effort, knowledge, skill and other assets to a common understanding; b) a joint property interest in the subject matter of the venture; c) a right of mutual control or management of the enterprise; d) expectation of profit; e) a right to participate in the profits; f) most usually, limitation of the objective to a single undertaking; and g) Clear understanding of formation, performance and exit mechanism between joint venture parties.
The Expression of Interest can be submitted online from 5th March 2014 to 31st March, 2014. For any clarification on any aspect of this Expression of Interest advertisement, please send an e-mail to Mr. Jagdish Shah, General Manager - iNDEXTb on
[email protected] quoting “Expression of Interest—Joint Venture’’ as the subject of the e-mail or call on (079)- 23250400
This Call for Expression of Interest does not amount to a commitment on the part of iNDEXTb either financially or otherwise. iNDEXTb reserves the right to accept or reject any or all the Proposals without any obligation to inform the affected applicants of the ground for the acceptance or rejection.
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