A joint venture (JV) is a business arrangement in which two or more independent parties — companies or individuals — agree to combine resources, expertise, capital, and risk to pursue a specific business objective or project, while remaining independent entities outside the JV. The JV may be structured as a separate legal entity (an incorporated JV company) or as a contractual arrangement without a separate entity (an unincorporated JV). Joint ventures are common in sectors requiring large capital, specialised technology, or local market knowledge — including infrastructure (PPP projects), energy (oil exploration blocks), automotive (international brands partnering with Indian companies), and real estate. For equity analysts and investors on Ventura Securities evaluating companies with significant JV structures, understanding the JV's financial performance, profit-sharing terms, management control, exit provisions, and potential for conflict between JV partners is important for correctly assessing the parent company's consolidated earnings, hidden liabilities, and strategic optionality embedded in JV stakes.
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