Kinetic Honda

Home art Reports Case Studies Books Industry Case Packs Free Resources kinetic Honda: The Break-Up Details Themes: Joint ventures strategic alliances Period : 1998-2001 Organization : Kinetic repel Limited / Honda Motors Ltd. Pub Date : 2002 Countries : India Industry : Auto and Ancillaries get Now Case Code : BSTR003 Case Length : 12 Pages monetary value: Rs. 200; Tools ICMR regularly updates the list of free cases. To view to a greater extent free cases, please visit our site at condescend intervals. We are proud that we have set an unprecedented example, of a small Indian company, Kinetic Engineering Limited, buying come out the majority stake of a multinational giant comparable Honda. - Arun Firodia, Chairman, Kinetic Group, in 1998. Kinetic Honda - The Break-Up: Break-Up Blues It was in August 1998 that the commencement ceremony chinks in the Kinetic Honda Motors Ltd. (Kinetic Honda) armor were reported by Business India. Both Honda and the Firodias of Kinetic were quick to deny rumors of a split, though reports of the Firodias quietly raising resources to buy out Hondas stake unbroken surfacing.

The Firodias were even reported to have securitised the assets of their two-wheeler finance company - twentieth Century Kinetic Finance (TCKF) - to raise this money. Trouble had been brew since the company recorded a loss of Rs. 6 crore in the first quarter of 1998. Eventually Honda decided to put the depend to rest and called Arun Firodia (Firodia) to Japan in December 1998. Honda made Firodia an provide - either he buy their 51% stake or Honda would buy out his 19% stake. Analysts remarked that it was difficult for Firodia to let go of the company that he had nurtured for the best part of his life. Eventually, Firodia negotiated a destiny with Honda, to acquire its stake at Rs 45 per share, (when the market price was almost double), at a total cost of Rs 35 crore. He also signed an agreement with them for continuing to make out and sell the... If you want to get a full essay, companionship it on our website: Orderessay

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