Ketan Logistics: Charting The Next Route
By Navneet Bhatnagar, Kavil Ramachandran
Harvard Business Publishing | July 2016
Harvard Business Publishing | July 2016
Citation
Bhatnagar, Navneet., Ramachandran, Kavil. (2015). Ketan Logistics: Charting The Next Route Harvard Business Publishing .
Copyright
Harvard Business Publishing, 2015
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Abstract
This case is about the dilemma faced by a next generation member whether to continue working for his family business or venture out on his own. Both alternatives have strong positive and negative implications. Rohit was a third generation member who jointly headed the western India unit of his family business, Ketan Logistics Limited (KLL). Rohit’s grandfather, had setup KLL in 1986. Over the years, the company expanded its fleet, acquired license to operate freight trains, diversified into ocean freight and transportation of large industrial equipment and food products. By 2014, it had become an integrated, multimodal logistics provider to business customers.
KLL’s operations were divided into four geographic zones, each headed by a senior family member. KLL took several measures to professionalize operations, like: deployment of enterprise resource planning (ERP) software, adoption of a code of conduct and organization of employee training and workshops. After completing their studies, all next generation members except one joined KLL. Some of them like Rohit had high aspirations and wanted changes at KLL but often faced strong resistance from seniors. Accumulated frustration in the next generation led some to consider venturing out at different points in time. For Rohit, his close friend had recently come up with an attractive proposal to fund the entire new business that Rohit had in mind with 50% sweat equity for Rohit. He was emotionally connected to his father and other family members and did not want KLL to suffer but was worried about his own future as well. He would not get such an opportunity again easily. For Rohit, it was a tough choice to make.
KLL’s operations were divided into four geographic zones, each headed by a senior family member. KLL took several measures to professionalize operations, like: deployment of enterprise resource planning (ERP) software, adoption of a code of conduct and organization of employee training and workshops. After completing their studies, all next generation members except one joined KLL. Some of them like Rohit had high aspirations and wanted changes at KLL but often faced strong resistance from seniors. Accumulated frustration in the next generation led some to consider venturing out at different points in time. For Rohit, his close friend had recently come up with an attractive proposal to fund the entire new business that Rohit had in mind with 50% sweat equity for Rohit. He was emotionally connected to his father and other family members and did not want KLL to suffer but was worried about his own future as well. He would not get such an opportunity again easily. For Rohit, it was a tough choice to make.