Case Abstracts

A. N. Gandhi and Firm – Wealth Creation Challenges

Pervin Gandhi Variava
PhD Scholar
SD School of Commerce, Gujarat University
Surat
Sujo Thomas
Faculty
Amrut Mody School of Management, Ahmedabad University
Ahmedabad
Sanket Vatavwala
PhD Scholar
Indian Institute of Management
Indore
The case explores the fascinating entrepreneurial journey of Arzan Gandhi, 62 years old,  from a cotton mill worker to an owner of a reputed investment advisory firm, ‘A. N. Gandhi & firm’ in Ahmedabad, India. The case ponders upon ample instances of personal finance and wealth creation in the backdrop of entrepreneurial characteristics and opportunity recognition. Gandhi, a shares and stock investment enthusiast, shares his journey on how he ventured on the immensely difficult journey to kick start a risky business on his own, with almost no support and lack of profound field knowledge. Case highlights the business challenges faced by the protagonist (Gandhi) and throws light on various aspects of wealth creation. Gandhi had faced many bottlenecks but was every time determined to emerge as a winner, successfully handling the challenging situation and moving on towards his entrepreneurial path. He along with his younger daughter Friya, a chartered accountant and son Sarosh, an upcoming engineer made a successful trio to take ‘Gandhi & firm’ to further heights. However, Gandhi was left in a dilemma later as he had to sponsor his son who was going for post-graduate studies at the Imperial College London and his younger daughter, a major helping hand of the firm, was also going to move to new city post her marriage. He realized that his business had now reached a crossroads: Was it the right decision to sacrifice a corporate career for an entrepreneurial venture? How to lay down the right priorities and set grounds for further wealth creation? What to do with Gandhi & firm? Scale down, Sustain or Grow?
 
 
Keywords – Entrepreneurship, Family Business, Wealth Creation, Personal Finance, Stock-broking business, Portfolio management
Construction of Pillars for Successful Business


Shrinivas Gondhalekar
Dean, Operations and Entreprenuership Management Programme
Welingkar Institute of Management, Development and Research 
Mumbai
Tanvi Thakkar
Assistant Professor, General Management
Welingkar Institute of Management, Development and Research 
Mumbai
Rashmi Kamkar
Student PGDM BD
Welingkar Institute of Management, Development and Research 
Mumbai
 Mr.Miten Palan had started manufacturing of Tarpaulin at MIDC, Taloja, Panvel – Mumbai since 1988. Tarpaulin has always been a price sensitive market and people used it for various purposes like protecting it from rain and storms, advertisement printing etc. One common application for large tarpaulin covers is the protection of large stockpiles of materials susceptible to water damage or being blown by the wind. Miten has a Family managed business of Tarpaulin and was managing Human Resource Department, his younger brother was in Production and elder brother headed Marketing of the product. Finance was taken care by accountant staff. The major challenge in the company was attrition of the laborers and because of which the productivity was affected and also sales was trending down because of stiff competition and low profit margins with reasonable quality. It was a manufacturing unit with the strength of 25. Miten wanted to know the root cause of the problem so he tried socializing with the employees. He encountered the difficulty they faced at workplace and the reasons they leave in short time. After couple of month Miten and his brothers concluded that competition amongst employee was a major challenge to deal with. As employees compete to prove better than others which demotivate the one who fails to perform well at some point of time and this attitude disrupts the work culture. For sales, it was important to stand –out with quality at first. Trust, loyalty, persistence and patience are the major four pillars of any business. The case unfolds intervention of Self-Managed Team (SMT) technique applied by Miten, recently accepted in the context of Human Resource in India and “QUALITY FIRST –CUSTOMER ALWAYS” principle was adopted. The results are retention of employees and delivering concrete profit to business. Also, how trust issues get resolved in a family managed business and how you get rewarded with patience and persistence.
Hyundai Heavy Industries- All within the Family
Wallace Jacob
Senior Assistant Professor
Tolani Maritime Institute 

Pune

Chung Ju-yung established Hyundai and Hyundai Civil Industries in 1947. In 1973, Hyundai Shipyard & Heavy Industries was established. Hyundai Heavy Industries (HHI), in Ulsan, South Korea  – the world’s largest shipbuilder – has made forays into arts, culture, education, hospitals, hotels, and sports domains. HHI has built tankers, LNG/LPG Carriers, VLOO Carriers, Containerships, Pure Car Carriers, Bulk / OBO Carriers, Drillships as well as Passenger Ships. HHI has also designed naval vessels such as destroyers, Submarines and Landing Ship Tank. HHI provides engineering facilities for oil & gas plants, refineries, power plants. HHI has set up its own institutes: Advanced Technology Institute, Industrial Technology Institute. Frontier Technology Institute, Maritime Research Institute, Engine & Machinery Research Institute, Elecro Electric Systems Institute, Construction Equipment Research Institute, Green Energy Research Institute. HHI has set up its own college, own university, 3 kindergartens, 2 middle schools, 3 high schools, and adult educational schools for senior citizens and the spouses of its employees.
 
In 2013, the HHI’s shipyards in Hyundai town operated 24 hours a day and the workers were able to earn thrice as much as the other workers employed at the same posts elsewhere. Workers at HHI don Hyundai’s uniforms, live in Hyundai apartments, drive the cars manufactured by Hyundai, purchase commodities from Hyundai’s commodity stores, and avail medical services at Hyundai hospitals. The children of HHI’s workers attend Hyundai schools and universities.
 
From 2015, there has been a steady decline in ship building orders and almost 27,000 workers have been laid off. HHI has been selling its assets such as employees’ dormitory, a very large community centre. Although the remaining part of the country has witnessed growth in the population, even then in 2016 Ulsan registered a decrease in population for the first time in the past few decades. Several restaurants as well as uniform shops were uniforms were sewn for Hyundai workers are now closed. Ulsan University Hospital recorded 150 suicide attempts in 2017 and 182 suicide attempts in Jan – June 2018.
 
According to some experts the chaebols in South Korea have become complacent and risk-averse. Company executives attribute the decline in production due to high labour costs and strong unions. According to HHI’s CEO Kang Hwan-goo, Hyundai Heavy’s average monthly labor cost per person is about 5.2 million won while the cost of China’s labor cost per person is 1.69 million won and the cost of India’s labor cost is 8,00,000 won Other experts attribute the erosion in HHI’s profits to increasing competition from China. The competition from China is evident from the fact that the world’s first intelligent Very Large Ore Carrier (iVLOC) was delivered by Shanghai Waigaoqiao Shipyard.
 
The new era is characterized by global markets and cut-throat competition. What are the reasons for HHI’s downward trajectory?
Jaipur Rugs in Transition

Pankaj Jain
Associate Professor
Amity Business School
Amity University Rajasthan
Jaipur
 
Mamta Pankaj Jain
Associate Professor
Amity Business School
Amity University Rajasthan
Jaipur
 
Nand Kishore Chaudhary (NKC) established Jaipur Carpets (Later became JRCPL) in 1999. The company became the largest Indian exporter of handmade carpets. In the FY 17, the company revenue stood at Rs 133.49 Crores with profit Rs. 9.78 Crores. The company was exporting its products to more than 50 countries. NKC had five children, three daughter and two sons, and all of them joined family business. The unique business model of JRCPL ensured that not only it was able to pursue profit and growth but also established itself as social enterprise that help marginalized weavers to live with dignity. As the company grew in size and there were divergent focuses. So the business was restructured in three major subunits under the umbrella of Jaipur Rugs: JRCPL was primarily responsible for production of carpets; Jaipur Rugs Inc (JRI) was exporting carpets to USA markets and accounted for 60% of JRCPL exports; and Jaipur Rugs Foundation (JRF) was a non-profit arm of Jaipur Rugs - primarily responsible for sustainable engagement and development activities for weavers. At the age 64, NKC is at crossroads. He and his family members need to take several decisions regarding the company’s future direction and address divergent focuses and opposing views of family members
Polywood Industries – Creating New Road Map for Future


K Balakrishnan
Director
Amity Business School
Amity University Rajasthan
Jaipur
Shikha Sharma
Professor
Amity Business School
Amity University Rajasthan
Jaipur
Mr Digvijay Dhabriya is Chairman and Managing Director of Polywood Industries. He  founded Polywood in 1992 and today Polywood stands proudly with an annual turnover  of ₹ 1340 million and is a listed company in BSE. With its manufacturing units at Jaipur
and Coimbatore Polywood’s mission has been to “Save Trees” based on inspiration from Digvijay’s father and has been constantly striving to bring in the minds of people the use of PVC Profiles which, was only confined to European Countries earlier. Polywood was
first in India to launch first time in India some exquisite products like PVC Folding Doors, PVC Designer Doors, PVC Furniture, PVC Fencing, Wood Plastic Composite Panels and PVC Aluminium Composite Panels. The entire range being fire proof and biodegradable.
Digvijay believes to be fair and ethical in business and that business must function in a manner that it creates happiness for all and not prosperity for yourself. Digvijay with his visionary leadership has helped Polywood expand and grow rapidly. He credits his success
to the support he has received from his family and that his family has been his strength. He believes business is all about building strong relationship and retaining them. Recently Digvijay’s son Shreyansh, a graduate in Mechanical engineering has joined him in family
business. He has different plans for Polywood and ideas to take Polywood to new heights with altogether different strategic mapping. Shreyansh thinks differently from his father.He has inducted highly paid team and believes that that hiring management graduates for
sales promotion will boost sales as these graduates are better equipped to handle market challenges and opportunities. He has launched new range of tiles D’ Stona. While Digvijay now concentrates on production and R&D his son is involved in marketing and also taken
up the task of organisation restructuring. Shreyansh’s younger brother may join him in future.
‘Shubham’ - Trust, Competence & Legacy
Apeksha Bhatnagar 
Assistant Professor
Amity Business School
Amity University Rajasthan
Jaipur



Shubham operates in the textile B-C market in Udaipur a large city of Rajasthan, India. The protagonist Niranjan has established and developed Shubham into a respected business house. Shubham’s profitability has been fairly attractive historically. Niranjan also has another customer touch point named ‘Parinaya’. Niranjan has nurtured and nourished the business overtime with zeal & hard work. Niranjan had earlier worked as an employee to learn the ropes in another business. His first personal experience in operating a family business was as a minor partner with his brother. He subsequently left the partnership and Shubham.
 
After separation from the partnership Niranjan had to also deal with competition from his brother. This brother subsequently relinquished an active role and left it to his sons to carry on business. The two sons further separated and set up their on operations.
 
In the early days Shubham faced its own share of business challenges but these are now a thing of the past. Niranjan like all fathers hoped that his son would take the legacy further. However not only his son, but also both his daughters showed disinterest in business. However one of his daughters Khushboo is more concerned at Shubham’s current customer profile rather then being a business itself. Niranjan’s manager Mukesh is the only non-family person whom Niranjan gradually began to trust. Currently, Niranjan, Khushboo & Mukesh together handle the business. Niranjan wishes to retire in 10 years, but is not sure about subsequent business continuity.
Banga Brothers at the Cross-Roads – Sibling Rivalry

Rahul Agarwal
Assistant Professor

Amity Business School
Amity University Rajasthan
Jaipur



‘Banga Brothers’, a sports shop dealing in sports equipment and sports consumables, was  founded in 1983 in Alwar (Rajasthan) by Late. Mr. Narayandas Banga. At this time there was  virtually no competition for the business and therefore the business grew at a satisfactory
pace considering small town and limited opportunities. His elder son Mr. Sanjay Banga joined  his father in business at a quiet young age of 20 and started learning the nuances of business.  But it could not continue for long as in 1993 Mr. Narayandas passed away, leaving the
responsibility of business to his two young unexperienced sons. Though the younger son, Mr. Rajesh Banga had to join the business at a tender age of 17, he completed his graduation while working full time on the business while Mr. Sanjay Banga could not complete his formal education. For a long period of time ‘Banga Brothers’ enjoyed the status of leading sports dealer in the town and was the preferred solution of all sports needs of the small town, credited to the hard work, behavior and lack of competition. However, with the changed time and business magnitude, the challenges of business grew, and technology added fuel to the fire. For an old school businessman in a relatively ‘behind the time’ market, it wasn’t easy to understand and leverage the growing intrusion of internet, e-business, digital marketing and electronic payments. Despite the wife of Mr. Rajesh now being an active member of the business, they are looking forward making the last adult member of the family, the wife of Mr. Sanjay, join and share responsibilities of business. At this time, the third generation of the family, sons of Mr. Sanjay, have started showing interest in the business, and despite of his young age, is already helping the business by
proposing and managing technology solutions for the business. Initially, for a long time, the Banga Brothers enjoyed the privilege of being ahead of the low competition in the town. But now, having e-commerce on the scene, they are competing directly with the bigger players who are not even physically present in the town and other newer branded players in the town. Being the brick-and-mortar business and subjected to limited family capital, they find it difficult to compete with the online stores and with ever increasing demands of the customers for quality, variety and prices. 

Issues:
 
Rajesh wants to take the risk for a planned business expansion in the city and to the nearby areas and towns, while the elder brother, being more conservative and skeptical wants to continue to operate the way they have been for many years and leverage upon the relationships they have built so far. He doesn’t want to jeopardize the family security by risking the capital they have accumulated in so many years.
The third generation of the family, being the millennials and techno-friendly, wants to take the e-business route to expand to new territories and product range, Rajesh and Sanjay have no clue how to handle the whole show seamlessly without disrupting the existing business.
Rajesh wonders how they can include and leverage technology into the business.

Achieving Higher Growth Trajectory through Emergent Leadership & Organisational Transformation: Jayanti Group


Arun Keshav 
Assistant Professor
Amity Business School
Amity University Rajasthan
Jaipur
 
D. S. Rathore 
Professor
Amity Business School
Amity University Rajasthan
Jaipur

The Jayanti Group(JG) was founded by Jayanti Prasad Jain (JPJ). It started with a small Paan1 shop in Alwar, Rajasthan in India. He also started making and selling of Gutkha2. As the market grew, it led to selling Gutkha in hand-packed paper pouches. In 1987, his second eldest son Tara Chand Jain decided to register this enterprise as a partnership firm. The Jayanti family tree is large. JPJ had six sons and four daughters. All his sons are part of business today and form the second generation of the family. Out of six sons, four sons have one son each and the remaining two have two sons each. These eight form the third generation of the family. Of these eight grandsons, six have already joined the business. Six sons and grandsons of JPJ thus actively participate in the Group. The entire family stays together and has full involvement in all the activities and decision making of the business.Since 1987 the group diversified considerably. Presently, the group includes five different firms. The first is Tara Chand Naresh Chand, which is into production and sales of Jayanti Gutkha, the second is Vardhman Polymers Pvt. Ltd. which is into the business of printing and production of polymer products, the third being Jayanti Cold Storage having a cold storage, an ice making factory and production and marketing of a range of aerated beverages, fourth is Jayanti Food Products, which manufacture and sells a  Betel leaf combined with betel nut, slaked lime and other ingredients which may include tobacco , Granular mixture made of tobacco mixed with betel nut and slaked lime range of snacks and Namkeens and the fifth is Jayanti Real Estate which constructs and rents shopping and office complexes. The JG is still evolving, it is also making a transition from its second generation to the third generation. This case thus illustrates the complexities associated with a family business undergoing transformations at various levels. Specifically, this highlights the issues associated with informal decision making process and generation gap, initiatives, and the dilemma of the professionalisation of business or keeping it within a close family group.

Bringing Professional Culture in Family-Run Business


Ritu Vashistha
Assistant Professor
Amity Business School
Amity University Rajasthan
Jaipur
 
Ashish Kumar
Dy. Director
Amity Business School
Amity University Rajasthan
Jaipur

For Shri Ghewar Ram, owner of Shri Ram Marbles and Minerals, the journey of his business has not been a smooth one. Prior to the establishing marble business, his family has been in farming since 1983, but consistent crop failures over the years, made him realize that dependence only on farming may not be a sustainable approach as the income from farming was declining year on year basis and debts were mounting up. He felt that diversification into new venture was the only choice left and with this thought, the family shifted base to Abu Road, Jaipur from Barmer, Jaipur and established the marbles artifacts business “Shri Ram Articles” in 2000.

While business of Marble artifacts expanded but conflicts cropped in the family and the business was divided among the brothers and separate entities were established. Shri Ghewar Ram established the business of Marbles and Minerals as “Shree Ram Marbles and Minerals”. The business expanded soon and touched new heights. The business under Shri Ghewar Ram, being risk-averse, was limited to the local market. Though the business was expanding the product-lines aggressively but the market expansion was limited to local peripheries.

Family Business: Handling Unplanned Accession (Part A, B) - RN Dalmia Agencies Pvt Ltd

Vinita Agrawal
Professor
Amity Business School
Amity University Rajasthan
Jaipur


R. N. Dalmia Agencies (P) Ltd. (RND) was founded in the year 1984 by Ram Niwas Dalmia, who passed away in 2014. The business was subsequently taken over by his son Ramesh. RND is a leading importing and indenting agency dealing in carpet grade raw wool and mutilated textile waste. It sources wool from 20+ countries from across the globe and act as facilitators between suppliers and buyers, settling payments and claims, between them. Being a highly personalized business, there is little scope for inducting outside man-power; businesses of this nature are usually run by family members.

Ramesh’s son Aditya, a management graduate from a reputed business school, set up his own business as an empaneled distributor of world’s leading cotton and linen textile brands in the year 2009. The business was independent of the business run by his father. Pursuing his dream and driven by his vision and passion to excel, he enjoys a pan India reputation. The business is managed through hired manpower and turns over ₹10crore. Year 2016 came as a shock to Aditya when his father suddenly passed away. RND had earned a good reputation and did well until the occurrence of this unfortunate event. Considering his business a ‘traditional one’, Ramesh had never planned on his son joining him. Aditya enjoyed his textile business and never showed any interest in their family business. Aditya is confronted with a difficult question – whether to continue or close down their family business that was explored and built by his grand-father and father.   He knows how to do business but does not know anything about the wool business in particular. At the same time he already has his own business which is in the growing phase.

Aditya took over his family business in the year 2016, for the sentiments attached to their traditional business, and decided to take up the challenge to RND to the best of his ability. His professional skills, education and business experience helped him to learn the family business, build relationships, professionalize the business dealings & processes and take it on growth path. Today the business has its own success story and turns over ₹90cr. Adiyta is the only successor of Mr. Ramesh Dalmia. He is young with two small kids, a son and a daughter and is struggling to manage two businesses which leave him with very little time for the family. He is at a juncture where the market is favorable, promising, the scope is wider; and he is capable of doing more and expanding the family business. 
National Dyeing and Bleaching Works-Scaling up Challenges and Inter- Generational Tensions
 

Durgesh Bhatra
Associate Professor
Amity Business School
Amity University Rajasthan
Jaipur
 
Himanshu Shekhawat
Personnel Officer
JVNNL
Rajasthan

Sanganer(an area in the outskirts of Jaipur, Rajasthan) was once a very busy industrial suburbbut which has now been reduced to gloom and sluggishness. Sanganerwas well-known for producing the best and most delicate hand printed cloth over 150 years. Sanganer was burst of colour with long sheets of cloth hung to dry in the morning in front of every home. Exports werehigh and high demand kept the workers extremely busy. A gradual downfall resulted inartisans switching to substandard cloth. Gradually the industry started losing work. The few businesses left realized a huge need for change.

National Dyeing and Bleaching Works wasestablished in 1987 by Rafique Mohammed in Sanganer, Jaipur. Rafique established the company to support the local artisans addressingthe domestic market. The company had reached a point where it was generating a turnover of ₹30 lakhs by 2010.

The year 2010 then witnessed the downfall of the company to an extent where there were no orders with the company and they were sitting idle for almost six month. It was this point when Mr. Ashpak Mohammed., elder son amongst the three children of Mr. Rafique, entered the business with a new vision to extend the setup and purchase new machinery. The company revived with the efforts of Ashpak.
By 2018 NDBsaw considerable growth and turnover reached ₹1.5 cr. But the company has not been able to escape the drawbacks of family business including succession issues. The newer generation focuses on technology input, has a different vision on financial management, credit policy and on various aspects of exports.

With limited knowledge of Technology there was need for an expert. Thisgap was filled by Mr. Ishraj Khan, second son of Rafique, who entered the business in 2012.

Issues

With turnover increasing five fold in 8 years, a number of inter-generational issues emerged:

1. With the backing of the elder brother, the younger wanted to invest more in machinery both for modernization and for capability enhancement. However Rafique was of the opinion that further investment in plant and equipment was both risky and unnecessary.

2. Rafique’s approach to trade finance was to charge customers a higher margin to support longer credit periods. However Ashpak & Ishraj insisted on much lower pricing and tighter credit norms.

3. The business traditionally suffered from high labor turnover. Believing that this resulted in loss of skills, the sons advocated that welfare measures be introduced to retain skills. Here again, Rafique did not agree with his sons’ approach

Case Design

This is a non-directed teaching case based on data collected through interviews with relevant stakeholders. The case will be accompanied by a Teaching Note and is expected to be suitable for teaching at graduate levels in a family business or management programme.
Bhagat Mishthan Bhandar: Growth Strategies under the regime of Third Generation


Ashish Kumar
Dy. Director
Amity Business School
Amity University Rajasthan
Jaipur
 
Ritu Vashishta
Assistant Professor
Amity Business School
Amity University Rajasthan
Jaipur

Bhagat Mishthan Bhandar (BMB), 60+ years old renowned sweets and namkeen shop in Jaipur, is famous for its traditional boondi ladoos and doodh ladoos. Although Bhagat family is into sweets and namkeen business for last five generation, but the business under the brand BMB was established in 1957 by Kanhaiya Lal Bhagat with the first store in Kishan Pole Baazar.

Over the years, BMB has undergone a change in its format from shop-cum-restaurant to only shop during second generation, Ramesh Bhagat. Under the guidance of Ramesh Bhagat, the brand was established as high quality makers of sweets and namkeen and expanded the popularity of traditional sweet, ladoos. 

In 2000, the third generation entered the business with the entry of Amit Bhagat, grandson of Kanhaiya Lal Bhagat. Being young and having new vision for business, Amit Bhagat, expanded the digital and social media presence of BMB with a dedicated website and Face book page. During 2000-2014, Amit Bhagat had hard time in getting his father’s approval for new business ideas for expanding digital presence and establishing ERP as Ramesh Bhagat had traditional business approach and didn’t believe in benefits of these new ideas.
In 2014, Ramesh Bhagat handed over the operational charge to Amit Bhagat and took over the role of a mentor and was only involved in capital expenditure decisions. Having relatively more operational freedom, Amit Bhagat set on the path to expand the business further. BMB opened two new stores – MI Road in 2014 and Vaishali Nagar in 2017 to capture the geographically expanding Jaipur. Also in 2017 In 2017, BMB introduced new product range of premium chocolates and beverages to capture the gift market. The opening of new stores as well as introduction of new product line proved to be profitable. In 2018, Amit Bhagat was contemplating various expansion options – should new stores be opened in Jaipur to capture expanding city boundaries or to expand in other cities either using franchise model or to introduce new packaging to increase shelf life of products to expand delivery city or national boundaries. Apart from having financial feasibility, Amit Bhagat knew he has to clearly identify risks as well as future growth options to convince his father as these steps involved huge capital expenditure.

Kalaneri-Professional Entrepreneurs in Family Business


Shikha Sharma
Professor
Amity Business School
Amity University Rajasthan
Jaipur
K Balakrishnan
Director
Amity Business School
Amity University Rajasthan
Jaipur

Kalaneri was founded in 2010 by Saumya Sharma, then a young lady entrepreneur and professional in fine arts. The business has now grown to include an art gallery and event  promotion in allied areas such as theatre and storytelling and more importantly identifying, promoting and reviving traditional art forms and artists. Meanwhile the teaching academy established simultaneously offers a larger bouquet of art classes as well as coaching students for entrance exams to design courses. In 8 years Kalaneri now touches the lives of a large number of persons. While Saumya drives business operations in terms of identification of business lines, managing day to day operations and product/market development, her lawyer-husband, was co-opted into the business to drive innovation as well as manage financial accounting and regulatory
compliance. Recently Saumya’s son (Shrey) who has a master’s in management from UK started showing interest in the by now family business. He is now involved full- time and exhibits an impatient vision that is much more global than Saumya’s. Shrey is also more process oriented and is efficiency-driven. Shrey has a greater orientation to interdisciplinary art forms and ecommerce in art. Saumya’s daughter is currently in college but has started involving herself in the business in project mode and is already exhibiting strong leadership skills. Saumya and her husband have been working closely for years and have helped artist and art reach people and at the same time provide a platform to artists and students realise their dreams.

Diffusion of Innovation in Promoting Family Business

Manish Verma
Professor and Director, Amity School of Communication
Amity University Rajasthan
Jaipur
Komal VermaAssociate
Professor, Amity Institute of Behavioral and Allied Sciences
Amity University Rajasthan
Jaipur
Mansi Vijay 
Student, Amity School of Communication
Amity University Rajasthan
Jaipur

Amidst the bustling multicultural society in Rajasthan, L.K. jewellers was established in the     golden year 1950, with a retail outlet in the most happening vicinity of Jaipur at Tripolia Bazar. Since then the list of their esteemed kept on growing by leaps and bounds. Over the passage of time they have gained immense momentum and today they have a strong foothold over the market. Seeing the dynamic market and demand for exquisite designer jewellery they came up with a new firm ​ JS Jewelers- Jamnalal Shrinarayan Jewelers.
 
 With a varied range of : ​American Diamond jewelry, Bridal jewelry, Rajputi Jewelry, Custom jewelry, Fashion jewelry, Kundan jewelry, Lac jewelry, Silver jewelry, Oxidized jewelry, Gold Jewelry, Bead Jewelry and many more. ​JS Jewelers have everything a customer can ask for!
 
Key Issues:
 
 The primary issue was to preserve the practice values as it is said that ancestors establish business with an ideology and values and it becomes very tough for further generations to align the same. There are chances of value clash. And the secondary issue is differences in management styles and to expand the business despite these differences and taking the company to next level, especially with context to innovative promotion strategy for the brand on online platform.
So, challenge was how to make JS Jeweler’s business model different from others by overcoming differences in management philosophy and taking the family along. And the long-term plan is of using e-tailing platforms like Amazon and Flipkart to grow globally and give back the family philanthropy.
 
Case Design: 
 This case uses mixed method investigative paradigm approach of data collection and analysis and is a non-directed teaching case . This case will be useful reflective tool of discussion for Family Business Management Students.
Lanco Infratech Limited


Vishwanatha SR
Professor 
School of Management and Entrepreneurship
Shiv Nadar University
Uttar Pradesh
Jaskiran Arora
Professor
BML Munjal University
BML Munjal University
New Delhi
Durga Prasad
Associate Professor (Finance)
T A Pai Management Institute
Manipal
Kulbir Singh
Associate Professor (Finance)
Institute of Management Technology
Nagpur

The case highlights the ambitious growth strategy of Lanco Infratech Ltd., one of the top infrastructure and energy companies in India. The company grew aggressively by setting up power projects and bidding for infrastructure projects all over India. This expansion was funded by a mix of secured loans and foreign currency term loans. Due to deteriorating business and economic conditions the company experienced a sharp decline in profitability and stock price resulting in financial distress. The company had to restructure to escape bankruptcy. The case asks students to analyze the company’s operating and financial strategy and assess whether the proposed restructuring is sustainable. The case can be used to teach factors that drive restructuring initiatives, the dangers of unhedged foreign currency exposures and the design of capital structure in utilities.

Revolutionary Retailer Retires: A case of Big Kids Kemp


Satya Nandini A
Professor, Department of Management Studies and Research Centre
BMS College of Engineering
Bangalore
Sridhar H R
Assistant Professor
Department of Management Studies and
Research Centre
BMS College of Engineering
Bangalore

 
Ganesh Kumar R
Assistant Professor
Department of Management Studies and Research Centre
BMS College of Engineering
Bangalore
The landmark on MG Road in the silicon city of Bangalore has closed its doors. The employees with cartoon costumes waving at children has become the thing of past. The favourite shopping destination of many erstwhile celebrities and politicians is no more open. The Big Kids Kemp (BKK) that revolutionized retailing in India has recently pulled down shutters disappointing loyal customers who drowned in nostalgia. The founders of BKK, the Melwanis have always embraced innovation and strategically driven their business into huge profits and the brand is still alive. 

This case study examines a family business in the modern retailing sector, the expansion path, quick growth, its uniqueness in giving a shopping experience with entertainment, focus towards the niche market of high street customer and making BKK an aspirational brand for middle-income customers. In spite of all these, the founders wanted to pursue their passion. The founder Vashi J Melwani (VJM) was contemplating the closure since four years, to retire, relax and travel. His son Ravi V Melwani (RVM) who was associated with him in the journey of BKK had an orientation towards philanthropy. This change in the mindset of RVM drove him to think beyond business to achieve his self-actualization needs and finally took the call to close BKK. The owner has changed his mind at the cost of the brand. What would be the impact on the stakeholders? The owner of the family business may be right in pursuing his passion and decided to retire. What could have been the alternatives he could have considered to keep the business operational?

Key words: Retail, Philanthropy, Family Business, Brand, Transformation       
Between a Rock and a Hard Place A Succession Dilemma of Two Generations in a Family Business

Mita Dixit
Co-founder & Family Business Advisor
Equations Advisors Pvt. Ltd. 
Mumbai
Poornima Charantimath
Professor, Co-ordinator 
Centre for Entrepreneurship Development & Research Centre
KLS- Institute of Management Education 
Belagavi

Jay Bajaj, the second generation scion of the Bajaj family joined his family business after completing his Masters in Polymer technology. The business of manufacturing plastic carry bags was founded by his father Ameet with financial help of his grandfather. A few years later, uncle Sumeet joined the business.
 
After a 20 years of successful journey, Ameet and Sumeet were waiting for their sons to join the business and take it to a new height. Being the eldest and the brightest of the cousins, Jay was expected to lead the business in future.   
 
While studying in Germany, Jay also got trained in a plastics company. When he returned to India, he was beaming with ideas to professionalize his family business. To his dismay, he found that the business was run in traditional manner with a tight control of his father. Jay wanted to computerize systems, processes and wanted to recruit young, qualified executives. But unlike the German boss, his father used to doubt his suggestions and reject all those which required monetary inputs.
 
Both the seniors used to find Jay’s approach shallow and impractical.  They felt that having spent only a year in the business and not having a complete grip on operations, Jay wanted to change methods which were evolved over years of experiments and trials. They knew that change was inevitable, but it could not be done in a hurry. Jay had to first learn the ropes of the business, be disciplined and accountable. He had to suggest changes backed by a sound logic and a budget, not based on the impressions of what other companies do in the advanced countries.
 
With frequent arguments and flare-ups with father, Jay’s exasperation increased. His brother and one cousin had joined the business and were getting trained. They had adjusted with the father and uncle’s ways of working. Jay was losing interest in working in the family business and had started contemplating for another career.
 
Two generations, especially the father – son conflict is a classical situation in family business domain. Different personalities and perspectives of members create friction. Generational transition is difficult when the vision of the family is not unified and goals of working members are not specified. Two generations often find their communication a challenge leading to stress in interpersonal relationships. The case discusses dilemma of the successor – ambitions versus acumen; and senior generation’s challenges of mentoring the younger generation. The case provides an insight into the mind-set of the Gen-next in the family business.
Business Diversification

D P Sahoo
Associate Professor, HR & OB
IMT Ghaziabad


Maa Bhaghabati Gudakhu Factory had been manufacturing about 500 to 600 quintals of a local toothpaste call Gudakhu, while the business was at its peak, for the tribal markets of the state of Odisha. The product is a tobacco based product, which forced its consumer to be addicted of the same. The manufacturing of such a product was started by a local businessman named Abakash Sahoo, in 1958 from a remote village called Itamati, in Odisha. At the initial days the production was about one quintal per day. The factory was engaging about 7 to 10 people and all the operation were done manually in single shift working.
 
With mechanization during the 60’s the manpower went up to 40 and the factory started manufacturing 500 to 600 quintals per month in double shift working. The product was sold in the tribal districts and villages of Vanganagar, Ashaka, Fulbani, Raikia, Bauda, Mayurbhanj, areas.
 
Abaksh Sahoo left behind a big business empire of grocery, Gudaakhu, handmade chocolates, and handloom products. Other than the grocery, all other products were under threat due to either consumer shifting their preferences or technological threat with better and cheaper alternatives available in the market. The businesses like handmade chocolates, and handloom products were closed down, and the business of Gudakhu, was getting extinct from the market.
 
The three sons of Abakash Sahoo, who joined the business one after another completing their studies found it difficult to carry on with the businesses of Gudakhu.  Mr Sharat Kr. Sahoo, Mr Rabindra Kr. Sahoo, and Mr. Alok Kr Sahoo, with time faced the challenge of the stringent Government policies, reduced consumer preference for the products. In the competition for reduction of the prices for enhancing the sales the company could not was not also feasible for no compromise could be made on quality.
Asian Paints: From a family-run decorative past to a professionally-managed lustrous future


Akanksha Jaiswal
Research Assocaite 
Loyola Institute of Business Administration
Chennai
Richa Pande
Adjunct faculty HR/OB
 Loyola Institute of Business Administration
Chennai
Kirti Deshpande
Senior Manager, International Business HR
Asian Paints Ltd
Mumbai
 S. Sabhanathan
Manager - HR
Asian Paints Ltd
Mumbai

Asian Paints headquartered in Mumbai, ranks ninth amongst the top paint companies in the world.  Since its inception in 1942, Asian Paints has witnessed a steady growth. It manufactures a wide variety of paints and related products and maintains market leadership in decorative paints since the past five decades. This pinnacle was achieved through strong customer orientation and innovative drive among employees who were considered at the epicentre of Asian Paints business.

Asian Paints was founded by four friends with immense entrepreneurial skills and business acumen. As the company expanded and industry environment changed, the founders decided to induct management professionals. This confluence of entrepreneurial and professional mind-set, inevitably, posed challenges in various processes of the company. Nevertheless, the objective was to leverage professional capabilities towards becoming forerunners in the indigenous and global markets.

With increasing business footprint and dynamic industry environment, there was a need felt to safeguard and build the human asset by having a common language for all people decisions and processes. Foreseeing the need to standardize people practices, he set out to design a competency framework by defining key leadership skills needed for employees across managerial and staff cadres. This framework had to be contemporary, at the same time, imbibe the rich culture of three generations on which Asian Paints was fabricated.
We divide the journey of Asian Paints into three eras: Era of family, era of transition and era of professionals. While we describe people practices at Asian Paints across the three eras, the last era of professionalism delves deeper into people processes, challenges and practices, thus, culminating into a competency model guiding contemporary and future leaders.
Woman centered Family Business in Rural India: Prospects and Challenges


D Revanth Reddy
Faculty 
Shree Institute of Technical Education
Tirupati
Varsha Kasthrui
Freelance Researcher and Entrepreneur.
General Manager, Visiting Faculty
Sri Varsha Foods/ Shree Institute of Technical Education
Tirupati
Venkata HRD (Harshavardhan Reddy Dornadula)
Professor / Head, Family Business Advisory Council and Incubation Center Project
Shree Institute of Technical Education
Tirupati
Gnanasree T
Student
SV College of Engineering
Tirupati
Sri Varsha Foods is a brainchild of a rural based entrepreneur and a gift for his beloved daughter, Ms. Varsha, with a dream to provide employment to rural based women.  The motivation and freedom extended to the girl child tuned Ms. Varsha to be a technocrat with an excellent education from USA.  Before she completed her education and entered into family business, this factory proved as the biggest mango pulp extracting unit in the state of Andhra Pradesh at a particular point of time. The directors of this business unit designated Ms. Varsha to be the general manager to manage the entire unit with ambitious plans. The new line of subject with a significant deviation from the line of studies, male dominated business, dealing with labour intensive process, underutilization of unit in the off-season, stiff competition from the nearby units, price sensitive markets, massive related diversification plans prepared by the family members, working with parents in the business, grooming and synchronizing with the male sibling are some of the challenges served to Ms. Varsha’s business dinner or business career at an early age. Some of the research studies considered and processes executed by Ms. Varsha along with their “Family Business Strategist and Advisor” are discussed in depth. This case study may be helpful to prepare a roadmap to rural based business women in India, especially in the area of Family Business.
Naturals Icecream : Professionalising a Family Business
Tulsi Jayakumar
Professor-Economics & Chairperson, Family Managed Business
S.P. Jain Institute of Management & Research
Mumbai


In January 2018, Srinivas Kamath, the second-generation scion and director of Kamath Ourtimes Ice Cream Private Ltd. (Natural Icecream)  , an Indian family-managed business, prepares himself for a meeting with Kishore Sharma, general manager, India Operations Retail, Natural. The company, set up by Srinivas’ father Mulky Raghunandan Kamath in 1984, is known for its handmade, artisanal ice cream brand , Natural Ice cream. Srinivas, upon his induction into the family managed business in 2009, had insisted on professionalizing the company as a means of achieving their vision of growth, as also surviving in the increasingly competitive space. Consequently, Sharma, the 34 - year old general manager, is the first professional to be hired by the company in 2014, almost 30 years after the establishment of the business.

While professionalisation has brought about a two-and-half-fold increase in turnover over the period 2012-2018, Srinivas senses a change in the culture of the company- a change he is not very comfortable with. He wonders whether it is not a case of too big, too fast?

The case looks at the need for professionalisation of family businesses, the process of professionalisation and the challenges inherent in such professionalisation through studying the case of Natural Ice Cream. It gets students to deliberate on questions such as: Is professionalisation critical to a company pursuing a growth strategy? If so, is the present path to professionalisation the right one? In particular, while professionalisation entails recruitment of people for their business values, what is the role of moral and social values in family businesses? What are the challenges inherent in professionalisation of family firms?
Case study on Communal Funding for Family Business in India

Venkata HRD  (Harshavardhan Reddy Dornadula)
Professor / Head, Family Business Advisory Council and Incubation Center Project
Shree Institute of Technical Education

Tirupati
Rekha Rao Subraveti
Research Scholar
Bharthiar University
Coimbatore
Kanooru Mounika
Student
Shree Institute of Technical Education
Tirupati
Hemavathi
Student
S V University
Tirupati

This show ‘case’ tries to bring light on the age-old tradition of many communities of ancient civilizations and many Indian community’s (not just communities) which supports Family Businesses of their community.  It tries to draw lines between “Community Funding” and “Communal Funding”.  This case is projected to eliminate the negative opinions or the social stigma attached to the word “Communal” while coining the word “Communal Funding”.  Moreover, it focuses much on communal funding related to promote family business, but not just business in general.  In this regard, there are no published materials on this funding process in India but not in the world.  Despite being hard to find written policies and legal governance in this specific community’s funding process, these methods are well known and popular through word of mouth among different walks of life.  “Jewish Communal Fund”, popular in western countries can be correlated with Indian Communal Funding process. Though this process appears to be “crowd funding”, this case clearly segregates the differences between “Crowd Funding”, “Community Funding” and “Communal Funding”.  This case further elucidates the similarities and differences among the ancient communal funding models and the Indian.  It also coins both successful stories and the consequences of failures of Communal Funding.  Existing funding systems by the government and banks with the schemes like Mudra, PMRY have funded many entrepreneurs in India with a significant portion to the area of Family Businesses but still left the room for many Indian budding entrepreneurs with a note that they didn’t get the support from the same, but from the communal funding. Finally, this case tries to leave a road map to the researchers to take it further, to refine, make models and apply state-of-art technologies to “viralize” the same.

Transitioning and Succession Planning Issues at Mahavir Traders
 
Susmita Suggala
Assistant Professor
L J Institute of Management Studies- 5year Integrated MBA (LJIMBA)
Ahmedabad
Yash Shah
Assistant Professor
L J Institute of Management Studies- 5year Integrated MBA (LJIMBA)
Ahmedabad

The case revolves around Mahavir Traders and its succession issues on the 100th year of its inception as Fulchand Kalidas Shah and Co.  This case is about an emblematic cloth trading business house of Ahmedabad, India, where the forefather Mr. Fulchand Kalidas Shah had the insight to recognize opportunities as cloth traders and flourished in their trade as exclusive distributors of a well- known and prestigious brand. Mr. Swetal Shah the proprietor of Mahavir Trading Company shares the details of the entrepreneurial journey of his father and forefathers.  The case will reflect the strategic and tactical operations of a trading company and its success mantras. This case will also throw light on a typical family business evolving with every generation, and the growing prejudices over unequal terms of succession. Yet all generation successors have successfully safeguarded the honour of their family name by avoiding family feuds or taking the legal recourse over succession issues. This case will discuss the different types of business structures and the terms and conditions to be drawn in favour of partnership firms to enhance easy succession and mitigate risk. Besides, the case will also discuss the possible involvement of the next generation and opportunities for expansion in the line of trade. Mr. Shah, after his last separation from his blood brother finds himself alone with depleting financials despite running his business in the usual fervour but lacking a futuristic goal. He is however a little hopeful, though far-fetched, in finding a successor in his to be daughter in law. The case will also share the implications of women as successors.  The lack of his next generation’s involvement and his age-related health issues, has put him in a dilemma to either sell his company to his partners, make the business self-sustainable or to dissolve it.
 
Keywords: Succession management, Family business, Cloth traders, Partnership firm, Proprietorship, Women entrepreneurs.