Business Case Studies & Business Publications

Agrawal's 420: Challenges of Establishin...

Jain, Abhinandan, ...

Case

Agrawal's 420: Challenges of Establishing and Growing a Traditional Business

Jain, Abhinandan; Sureka, KK

IIMA-MAR0510 | Published November 7, 2019 | 27 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

Agrawal's 420, a cottage industry started in 1962 in Indore, Madhya Pradesh, setup several companies by 2016. Papad business revenues were at INR 70 crores plus. The reasons for setting up the company, its guiding values, facing intensive competitive rivalry, journey of growth, manual manufacturing process, mechanising the process, product portfolio and development, setting up and managing sales distribution system, and challenges of growth to go national are featured here. The case can be used for exploring the factors that impact entrepreneurial motivation to sustain a small business in a highly competitive market, and growing from a small single brand one product local business to a large multi-product multiple brand national one.

Role of passion for family and business values in setting up and growing businesses particularly in food category. In capital constrained family situation, managing the transition from a commodity to a branded product business particularly in ready to cook traditional and competitive categories like papads and namkeens (snacks). Challenges faced in growing a successful local business to national level. Preparing a blue print to set up a national business including marketing and distribution system.