The LML-Piaggio Break-Up


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BSTR006 For delivery in electronic format: Rs. 200;
For delivery through courier (within India): Rs. 200 + Rs. 25 for Shipping & Handling Charges

Themes

Joint ventures strategic alliances
Case Length : 7 Pages
Period : 1998-1999
Pub. Date : 2002
Teaching Note : Available
Organization : LML, Piaggio
Industry : Automobile & Automotive
Countries : India

Abstract:

The case focuses on the break up of the joint venture agreement between LML Ltd., and the Italian automobile major, Piaggio. The case deals with the various developments that led to the break-up, and claims and counter-claims made by LML and Piaggio. After a yearlong bitter dispute with petitions pending in the ICA, CLB, and the Kanpur Civil Court, the companies finally opted for a 'good-faith out of court' settlement in November 1999. The case is intended for MBA/PGDBM level students as part of the Business Environment curriculum. At the end of the discussion, the students are expected to give their opinion on whether Singhania did right to break up the joint venture. They are also expected to discuss the future of both the companies after the break up.

Issues:

Working of Joint Venture, influence of external and internal environments in the Joint venture, Personal relationships influence on the venture

Contents:

  Page No.
Introduction 1
Piaggio -LML - A Profile 1
The Building of a Relationship 2
Marriage of Convenience? 3
The Breakup 4
The Settlement 5

Keywords:

Joint venture, LML Ltd., Italian automobile, Piaggio, break-up, yearlong, petitions, ICA, CLB, Kanpur Civil Court, good-faith out of court, November 1999, Business Environment, Singhania

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