Mahindra Reva: The Strategic Alliance

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After appearing the name Reva along with Mahindra looking nice and sounding trust and healthy. Yes, It is my opinion and consumers also when any new things comes with trusty and worthy name it looks good from all parameters. Recently M&M has acquired 55.2% stake in Reva car and now it will operate with full energy. In marketing terms it is called"Strategic Alliance. Reva is a car from great entrepreneur called Chetan Maini. Maini has done his engineering from Michigan.Maini started rolling out this car in market with support of Detroit's General Motors and Silicon valley VC fund draper Fisher Jurvetson (DFJ). In this post I will talk about great story of Mahindra Reva. Earlier Maini was supporting GM in terms of technology. As soon as alliance has announced GM snapped all tie-up with Reva. Marketers stated commenting on this even GM Representative also commented on this. They told that there is no any value for this alliance and other things.
First I will write about factor which derived for this alliance-According to Maini when he had talk with Economic times's journalist. They told that he has seen drastic change in market in terms of Electric vehicle space over one year. He told that when he was looking at Electric vehicle market they found immense opportunity over there. According to Maini he has attended various conference on Electric vehicle. He saw that Warren Buffet Invest $200 million in EV company, Bosch and Samsung has started producing Batteries for Electric car, General Motors has started rolling out cars with Electric Batteries. So, they thought that yes, there is market for this category. Than he thought that this market is not for small player so we need some sort of help for moving forward. Because he need huge amount of fund for moving forward along with great player which has great presence and who understand pulse of consumers. That' what he came along with M&M in the market.
Journey of Alliance- When Pawan Goenka President of M&M saw NXG a model of Reva they got impressed and they started talking about licencing for this technology. After that his moves changed and they started talking about for buyout. One day Maini and his brother met with Anand Mahindra and almost finalized the deal at same day and alliance has taken place.
Moving Forward- Now Maini will operate from technology point of view, In other word Maini will support only for technology and M&M will do all the remaining things for success of Mahindra Reva.

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