Abstract

The caselet traces the various developments from the time the joint venture took place till the breakup in 2000. In 1995, Escorts and Yamaha Motors formed a 50:50 joint venture (EYML). 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).

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Why Escorts pulled out of the joint venture and how this move is going to affect Yamaha Motors
• and Escorts’ new business initiatives and how the company is placed to succeed in new economy businesses.

Keywords

Joint venture, flagship, acquisitions, shareholder, Escorts-Yamaha Motors