captive unit

{{Short description|Offshore business entity}}

{{Refimprove|date=September 2020}}

A captive unit is a business unit of a company functioning offshore as an entity of its own while retaining the work and close operational tie ups within the parent company.{{Cite book|last=Oshri|first=Ilan|title=Offshoring Strategies: Evolving Captive Center Models|publisher=The MIT Press|year=2011|isbn=978-0-262-01560-8|location=Cambridge, Massachusetts|pages=xv}}

Captive unit is one way of establishing presence in cheap labour markets such as China and India rather than outsourcing work to third party companies established offshore.{{Cite journal|last1=Parida|first1=Vinit|last2=Wincent|first2=Joakim|last3=Kohtamäki|first3=Marko|date=August 2013|title=Offshoring and Improvisational Learning: Empirical Insights into Developing Global R&D Capabilities|url=http://dx.doi.org/10.1080/13662716.2013.833373|journal=Industry & Innovation|volume=20|issue=6|pages=544–562|doi=10.1080/13662716.2013.833373|s2cid=153798908|issn=1366-2716|url-access=subscription}}

Captive Generating plant means a power plant set up by any person to generate electricity primarily for his or her own use and includes a power plant set up by any co-operative society or association of persons for generating electricity primarily for use of members of such co-operative society or association. Note that the word primarily is not defined anywhere. Also note that by this definition, a group of industries can set up a big generating station for their groups use and sell excess power.