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Authors:
Gunjan Malhotra (Institute of Management Technology, Ghaziabad (IMT))
Published in:
2019
Version:
1-Mar-2019
Revision date:
01-May-2019
Length:
6 pages
Data source:
Published sources

Abstract

The case presents the dilemma of an entrepreneur who is just one year in operations of manufacturing brake-shoes and is experiencing very high demand. However, it's capacity is not sufficient enough to meet the demand. The owner has no experience in this sector, and due to limited financial support, he did not hire the consultancy firm to help him. Amit Kumar is under a loan obligation of INR2 crore, and banks are ready to lend him more on the condition of further infusion of equity by the owner. Based on the case, we will critically evaluate certain areas which an entrepreneur must dig while investing in a new venture. In addition to this, owing to low inventory, traditional, limited technology, and low-skilled labors, the uncertain production patterns lead to considerable wastage within the company. Kumar and his team realized that the limitations of their ad hoc management style, raw material cost and the fact that with traditional production practices they won't be able to meet the company's rapid growth. The case starts before the current challenges before Kumar with an excerpt of his discussion with the production manager. Then a brief history of AB Automotive is summarized with a special focus on the entrepreneur his educational and family background. Later on, the discussion on the Indian braking industry with latest trends, revenue, and cost structure of large, medium and small players. Finally, the case ends with current and future challenges before the firm.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Topics

Supply chain maangement; Strategy - business and marketing; General management; Entrepeneur

Setting

The events covered by this item took place in 2016.

Geographical setting

Region:
Asia
Country:
India
Location:
Delhi NCR

Featured companies

Company name:
Mehta Constructions
Employees:
2-10
Turnover:
INR 50 lakhs
Type:
Privately held
Industry:
Product, manufacturing
Company name:
Automotive
Turnover:
INR 2 crore
Type:
Privately held
Industry:
Automotive business
Company name:
Sarita Safetech
Employees:
51-200
Turnover:
INR 2 crore
Type:
Privately held
Industry:
Manufacturing (automotive)
Company name:
Nirmay
Employees:
2-10
Type:
Partnership
Industry:
Distribution and services

Featured protagonist

  • Amitt Malhotra (male), Director Sapphire SafeTech Ltd.

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