Product details

The case discusses the diverse strategies implemented by management of an Indian company involved in production of Tomato Puree. Soups, stews, spaghetti sauces, curries, and stews all include tomato puree as a vital component as the substitute good in place of fresh tomatoes. The case examines the issue of scarcity of tomatoes in India in the months of July-August 2023 and its impact on the food processing/serving industries in general. Indian tomato prices tripled in July 2023, rising from roughly INR30 per kg in June 2023 to INR210 per kg in the retail market by the end of July 2023. The rise in tomato prices in India generated global news, causing hardship for millions while providing windfall profits for few (in the Indian state of Maharashtra, some farmers became millionaires during the tomato crisis). In the month of June 2023, tomato inflation was reported as 64.46% month on month basis. The case presents the various underlying facts about the crisis and presents the dilemma of management of Tomato Puree. In order to make the right decisions, management of Tomato Puree must understand the evolving situation in depth and make decisions based on demand forecasting and previous experiences.