Stable Beteiligungs GmbH (Stable), a German manufacturing company, entered into its first joint venture transaction in India with Pravi Auto Swing Private Limited (Pravi), a leading manufacturer of automotive gas springs. This joint venture aimed to combine the strengths of Stable’s global manufacturing expertise with Pravi’s local market presence and production capabilities in India. Majmudar & Partners acted as the legal advisors for Stable Beteiligungs GmbH, handling the structuring of the transaction, compliance with applicable Indian laws, and drafting and negotiating the transaction documents to ensure a smooth collaboration between the two companies.
Facilitating the Transaction
Majmudar & Partners’ approach in the transaction was pivotal in ensuring a smooth operational setup and timely legal compliance for Stable. Our role included:
- Regulatory Due Diligence: Conducted comprehensive due diligence on Pravi, ensuring compliance with Indian corporate and sector-specific regulations, and assessing any potential regulatory hurdles in establishing the joint venture.
- Structuring and Drafting Agreements: Drafted and negotiated key agreements, including the joint venture and shareholder agreements, structured to protect Stable ‘s interests and facilitate a mutually beneficial partnership with Pravi.
- Navigating Compliance Regulations: Guided Stable Beteiligungs through the requirements of India’s foreign exchange regulations, ensuring compliance with the regulatory framework governing foreign investments in India.
- Post-Transaction Compliance: Assisted in ensuring that all corporate and other statutory filings were completed as per Indian law in a timely manner, setting up a robust legal framework for long-term operational success in India.
The joint venture between Stable and Pravi marked a significant step in both companies’ growth strategies. With Majmudar & Partners managing the legal aspects of the deal, the collaboration was structured to ensure long-term success and compliance with local regulations.
With extensive experience in managing cross-border joint ventures and ensuring compliance with Indian regulations, Majmudar & Partners offers legal expertise in navigating the complexities of international collaborations. Contact us today to ensure your joint venture is structured for success, backed by our deep legal knowledge and understanding of the Indian market.