Answer: Richard found these government meetings frustrating. Even though he always phoned to make firm appointments, the bureaucrats usually kept him waiting for half an hour or more. Not only that, his meetings would be continuously interrupted by phone calls and unannounced visitors as well as by clerks bringing in stacks of letters and documents to be signed. Because of all the waiting and the constant interruptions, it regularly took him half a day or more to accomplish something that could have been done back home in 20 minutes. What went wrong with the joint venture? Why did it break up within four years of its formation? Answer: The major points to end the Joint Venture are as follows. 1. P&GG would become a fully owned subsidiary of P&G with Godrej selling it’s 49% stake to P&G. 2. P&G would retain most of the sales force and the distribution network which most of the sales force and distribution network which P&GG acquired from Godrej soaps. 3. The soap brands of Godrej which had been licensed to P&G would revert to Godrej soaps. 4. P&G would retain the detergent and scourer brands it had brought from Godrej.
Godrej gave the following explanations for the breakup of the joint venture. It would enable both the companies to pursue the business opportunities thrown open by liberalization. Strangely, the reasoning given for the alliance when it had been formed about four years ago was that it would enable them to exploit better the opportunities provided by liberalization.