Will this tie-up last or not? M&M's Mahindra (left) with Renault's Ghosn

There are two dilemmas that rattle the human skull: How do you hang on to someone who won't stay? And how do you get rid of some who won't go?

It was Hollywood director, producer and actor Danny DeVito, in the role of a philandering divorce lawyer, who uttered those memorable lines in the classic film of the late eighties, The War of the Roses (directed by DeVito himself), a wicked black comedy about a bitter marriage, an impending property settlement that predictably turns ugly, and DeVito's hilarious attempts at mediation. Now, dark humour may be an inappropriate backdrop for a buoyant India Inc, yet the relationship between the partners in marriage in TWOTR, and DeVito's succinct reading of their quandary, in many ways mirror the discomfort between partners in a clutch of Indian joint ventures (JVs). Some allies want to pack up and leave, others are in a mood to dump their partner, and a few have succeeded at one of the two. At the same time, obviously unfazed by the bitter experiences of bedfellows who couldn't quite hit it off and the perilous nature of such collaborations themselves, a spate of JVs has been announced by partners driven by their own conveniences.

Three recent, high-profile JVs that seem to have all the trappings of a bitter marriage are Britannia Industries, in which the Wadia group and Groupe Danone of France are equal partners; Hutchison-Essar, the partnership between the Hong Kong-headquartered conglomerate and the Ruias; and HDFC-Chubb, an insurance JV in which the partners appear to have different strategic visions. Nusli Wadia, Chairman, Britannia, and Danone are at loggerheads over the Indian partner's apparent refusal to part with financial information as well as disputes on royalty arising from the usage of established brands like "Tiger" and "Little Hearts." The Hutch-Essar JV, in which the foreign partner holds 67 per cent and the Ruias the rest, has transformed into a legal slugfest, with the Mumbai operations of BPL Mobile (a company Essar acquired on its own) in the eye of a storm. Those involved in the JV, which is spread over 16 circles and with a subscriber base in excess of 20 million, acknowledge "it's going to be a long-drawn battle, and none of the partners is willing to relent. It's not just about BPL but goes back a long time." In the process, the opportunity for an initial public offering (IPO) for a company said to be valued at roughly $9 billion (Rs 40,500 crore) has been lost, prompting even Canning Fok, Managing Director, Hutchison Whampoa to mutter to the English media that "the time (for an IPO) has gone now." In the HDFC-Chubb case, it is gathered that Chubb wants to go about the insurance business in a fairly conservative manner while HDFC is keen on being among the top three players in the game. "Obviously, there is a clash of ideologies and culture," says a source (the company has declined to comment officially). Although there has not been a formal announcement on a break-up yet, it is clear that HDFC may just have to acquire Chubb's 26 per cent holding or get in a new partner.

High hopes: Future Group's Biyani is counting heavily on JVs

Observers from the outside reckon that the hiccups being displayed at such JVs are symptomatic of a larger malaise. At a time when the Indian economy is ticking swimmingly on the back of rollicking consumption-led growth, the stakes are getting higher in high-growth consumer and services-led sectors like foods, telecom and insurance. Partners may be now seeing the benefits of going it alone, and picking at trivial disputes might be one way to rock the boat and hope that somebody eventually falls off it. It may be unfair to tar the Wadia-Danone, the Hutch-Essar JVs and the HDFC-Chubb alliances with such a sweeping brush, but India's track record at JVs isn't exactly flattering (for the record Danone maintains it has been working together with the Wadia group successfully for the last 15 years. "We value the input of all our local partners. We respect the opinion of the independent board members who constitute the Audit Committee at Britannia and their interpretation of the Indian laws and regulations," is how a Danone e-mail response to BT goes).

To be sure, right from the Godrej-Procter & Gamble joint venture that came apart in 1996 to the more recent Tata-Birla partnership in Idea Cellular (see JVs that Fell Apart) Indian promoters have walked a thin line between control and losing it. "I think JVs last only for short periods of time. The reason for getting into a JV is that you are looking for an advantage that you do not possess," explains Godrej Group Chairman Adi Godrej. Over the past decade, Godrej was involved in two significant JVs-one with GE for home appliances and the other with P&G for soaps. Both the JVs didn't last, yet Godrej has few regrets. "In the case of the JV with P&G, both of us realised that we were better off on our own. From our perspective, we had the experience of working with an MNC while for them it was about the need to have a presence in India," he recalls.

Another promoter, who has had his share of learnings via JVs, is B.K. Modi, who over the years struck partnerships with global majors like Xerox, Alcatel, Motorola and Olivetti, only to bid goodbye to them some years down the line. Today, Modi's cellular play Spice Communications, where he is the Chairman, has had partners like Australia's Telstra and Distacom in the past. The latest affiliate is Telekom Malaysia, which has picked up 49 per cent in Spice. But Modi today is sitting pretty. Or at least that's what he says. "I will call the shots, even once we go public, after which I will retain a majority holding," he explains. Clearly, Modi has realised that equal stakes ventures-as in those with Xerox and Alcatel in the past-don't go very far.

Division bells: Tata-Birla partnership in Idea Cellular landed up on the rocks

Sharing the same objectives right from the start is vital in making a JV work. Consider, for instance, the tie-up between Bajaj Electricals and Black & Decker of the US, which was a 50:50 JV. One reason it didn't last is, as Shekhar Bajaj, Chairman & Managing Director, Bajaj Electricals, points out, "The us way of thinking is about high margins while in India, we are looking for a high turnover with low margins." Bajaj adds that an ideal way to go about a JV would be to begin with a licensing agreement, and then gradually extend the scope of the relationship.

It's not as if all JVs are destined for disaster; if they're well-thought out for the long term, they can prove to be a win-win equation for both sides. "At a group level, we look for complementarity and mutual benefits," explains Kishor Chaukar, Managing Director, Tata Industries. The Tatas have AIG as a partner for the insurance businesses since the foreign partner can bring in its expertise even though its holding cannot exceed 26 per cent today. The Tatas have also looked at JVs as an entry strategy into overseas markets. Example: VSNL in South Africa. "Factors like regulations, how much a market has opened up and the relationship between two countries are considered while deciding on a JV," adds Chaukar. Recently, Tata Motors announced a 50:50 JV with Fiat of Italy to sell Fiat cars through Tata dealers. Partners in Indian auto JVs in the past haven't emerged smelling of roses, with equity alliances between Mahindra and Ford, Daimler Benz and Tata Motors, Suzuki and TVS, Piaggio and LML and PAL and Peugeot being some relationships that didn't endure.

Yet, there are always lessons to be picked up from a JV, no matter how long they last. "If you ask me today if I would go about the JV with P&G in the same manner, the answer will be an emphatic yes," adds Godrej. Perhaps some of that experience is reflected in Godrej Consumer Products, which is today growing smartly in the fast-moving consumer goods sector. Kishore Biyani, CEO, Future Group, is counting heavily on JVs. He has one for insurance, with Assicurazioni Generali Group for life and non-life insurance, and another for duty-free shops at Delhi airport with the UK-based Alpha Airports Group Plc. "My partners have a good knowledge of their business. Someone like Generali is a 175-year-old company. We bring to the table our knowledge of the Indian consumer...True partnerships always last."