In 2012, myself and my business partner sold our stake of our company to Setco, the first question that was asked "Why did you sell maximum stake of your US company?" It is nice question. But the hidden question was "Are you idiot to sell your own stake?". When I observed that many friends and technocrats have asked this question, I gave a thought and asked question to myself "Am I really fool to sell my own company?"
The first thing which every one would say "Look, you will be thrown out of company in next 3 years". We are running in 4th year of JV and there are no signs that to happen. In fact the bond is growing stronger, every day.
The another statement "Be aware, some one from abroad will sit on your head and you will have to dance on his tunes." To tell you frankly, there is no change in our status and we still have freedom to take decisions which are in the best interest of the company. Our principal from will act as catalyst to expedite for decisions of expansion, they give advice on cash flow management. In fact they support us morally and help is to expand methodologically, analytically.
"Remember, your name will be wiped out of market" Indeed, it happened. But not because of them. It was we, who proposed to change our company name from Ultra Precision Spindles Pvt Ltd to Setco Spindles India Pvt Ltd. There are certain reasons behind it. And we do not have any regrets giving up our name which was otherwise our brain child.
I wonder, why this JV between big US company and macro Indian company is going great?. I think one of the main reasons is transparency in transactions. We used to have weekly call in initial days. But, now after 4 years, we do not call each other for months together. We meet once in 4 months, hold our board meeting, exchange our thoughts, decide on actions and work on it. We do have difference on opinions on certain issues. But while arguing, both the companies know that it is debated in the best interest of company and not to pamper individual's ego.
I would like to state here that JVs are not that bad as said by many owners, in particular of SMEs. If you look at your own enterprise by bird's eye view, JVs work wonders, where you enjoy liberty in taking decisions by having international exposure in all areas of business.
Rajesh Mandlik (9822454204,RajeshM@Setco.com)
