Chinese companies may need majority Indian partners to set up plants

Some global players are pushing for a 50-50 equity structure, pointing out that without such a split, most Chinese firms might not want to share their technology at all

Chinese companies will need to concede a majority 51 per cent stake to their Indian joint venture (JV) partners for setting up a component manufacturing plant in the entire mobile device and electronics supply chain ecosystem in the country.

Says a top government official, “The consensus that is emerging is that in such JVs Indian partners should have a majority 51 per cent stake, so they have control over the management and the board.”  

The move is significant as many global as well as Indian companies seeking JVs with Chinese companies in the mobile device component space say that the