Cases Vol IV W PDF

CASES
in
STRATEGIC MANAGEMENT
Indian Experiences
VOL IV
Prof. Krishna Kumar

Prof. Ritu Srivastava
Ruchi Srivastava
1
About the Authors
Dr. Krishna Kumar has been a Professor of Strategic

Management and Dean (Academic Affairs) as at Indian Institute
of Management Lucknow, as also Director of Indian Institute of
Management Kozhikode. An electrical and mechanical engineer
and fellow in management, he has vast experience of industry,
teaching, training, research and consulting as also academic
administration for over forty years (ekhaikk.in)
Dr. Ritu Srivastava is an Assistant Professor of Marketing at

Management Development Institute, Gurgaon, India. She has
over 15 years teaching, training research and consulting
experience and has published over twenty papers in research
journals and has written 15 cases.
Currently she is also Chairperson, Marketing area.
http://www.mdi.ac.in/faculty/detail/99-ritu-srivastava
Ruchi Srivastava is a multifaceted personality with varied

interest. She is graduate and post graduate in management and
a qualified interior designer. She has extensive experience of
web based working and interior design and has given lot of
ideas for innovation through interior design.
http:www.smgi.in/ruchi.pdf
2
CASES
in
STRATEGIC MANAGEMENT
Indian Experiences
VOL IV
Prof. Krishna Kumar

Ruchi Srivastava
Teachers Day
September 5, 2017
Lucknow
3
© Krishna Kumar 2017
7/204, New Malhar, Sahara States,
Jankipuram, Lucknow 226021
Price Rs. 250/- Paper Back (Postage Extra)
For ordering copy of the book contact:
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Krishna Kumar kk661946@gmail.com
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4
Cases in Strategic Management
Vol. I Vol. II Vol. III Vol. IV Vol. V *
Sl. Title of the Case Teac # Case

No. hing Pages Code
Note Text
Vol. I
Takshila Engineering Corporation Ltd. (Case

1 in O.D.) Vikalpa Apr. 1982$ A 6 c02
Kamini Bank (Case on Management of
2* Change) Indian Management Jun.1984 2 c04
Growth Bank (Case on Strategic
Management) Indian Management Aug.
3 1985$ A 6 c05
4 Shilpi Ltd. (Case on SSI/Sickness) $ A 9 c07
5 Mein Kampf (A) (Case on HRD) $ A 18 c09
6 Mein Kampf (B) (Case on HRD) $ A 13 c10
First National Bank (Case on Organisation
7 Structure) $ A 13 c11
Scooters India Ltd. (A) (Case on Strategic
8 Management) $ @ A 14 c13
Scooters India Ltd. (B) (Case on Strategic
Scooters India Ltd. I (Case on Strategic
Scooters India Ltd. (D) (Case on
Extraordinary Turnaround) Vikalpa, Apr.-Jun.
11 2001 @ A 30 c16
5
Vol II
Apollo Hospital Enterprise Limited (Case on

12 Strategic Management) $ @ A 34 c17
Vindhya Matsya Vikas Nigam (Problems in
13 Strategy Formulation)$ A 15 c20
Parc Tauli Consortium Hospital (A) (Case on
14 Mergers), (Co-authored) $ @ A 6 c21
Parc Tauli Consortium Hospital (B) (Case on
Parc Tauli Consortium Hospital I (Case on
Is Small Beautiful (A)? (Challenges to a new
17 leader in public sector institution) A 3 c30
Is Small Beautiful (B)? (Challenges to a new
18 leader in public sector institution) A 3 c31
Is Small Beautiful (C)? (Project Management
19 as Road block in Strategy Implementation) A 6 c32
Is Small Beautiful (D)? (Leveraging Delays in
20 Project Management) A 5 c33
Is Small Beautiful (E)? (Strategy
21 Implementation) A 5 c34
Is Small Beautiful (F)? (Strike- Managing by
22 heart) A 8 c35
Is Small Beautiful (G)? (Containing faculty
23 politics) A 4 c36
Is Small Beautiful (H)? (How to improve
24 infrasturture/ asset utilisation) A 3 c37
6
Vol. III
The Fun of Case Writing (A) (Growth is not

25 such a difficult task) A 1 c38
The Fun of Case Writing (B) (Tasks,
Complexities and Challenges in Strategy
26 Implementation) A 8 c39
The Power of Check Listing (How we miss
27 the opportunities) A 4 c40
Do We Matter? (Management Perspective and
28 Change) A 2 c41
The Time Estimates (Project Management in
29 Backyard) A 4 c43
The Power of Interior Design (Innovation in
30 Strategy Formulation and Implementation) A 6 c44
Institute of Information Technology (Problem
of Portfolio Management and
31 Implementation) 24 c45
UP State Tourism Development Corporation
(Problems in Objective Setting and Stratgy
32 Formulation)$ A 16 c46
Vindhya Pradesh Forest Corporation (Case on
33 Management Control System) $ A 6 c47
City Montessori School (Top Executive
34 Values and Org. Growth Strategy)$ A 13 c48
Industrial Toxicological Research Centre
35 (Problems in Strategy Formulation)$ A 12 c49
Rewards Galore (Case on Incentive System
36 and Leadership) A 6 c50
Promoting Excellence (A) (Case on
37 Management of Academic Personnel) A 6 c51
38 Research Incentives 3 C52
Academic Resource Park (How do we miss
39 opportunities) A 9 c53
The Management Case Tree (Advantages of
40 Surviving through Collaboration) A 2 c54
41 Creation of a Computer Centre for Training A 3 c58
7
Vol IV
42 Kingfisher Airline A 26 c59

Power of a Missed Meal (Strike- Managing by
43 heart) A 2 c60
44 Promoting Excellence (B) A 8 c61
45 The Popat 2 c62
46 Adani Enterprise Ltd. A 16 c63
Is Small Beautiful (I)? (Diversification- There
47 is room for every player) A 14 c64
48 The Thieves 1 c65
49 Kick of Creativity 2 c69
50 The Experiment A 10 c71
51 Mission at Grassroots 4 c72
52 The Two Worlds 5 c73
53 A Livewire Information System 2 c74
54 The First Beneficiary of OBC Reservation 3 c75
55 Birth of an Orphan 7 c76
56 Hanumans of India 1 c77
57 Gifts of God 4 c78
58 Assets or Liabilities 2 c79
59 Manpower 2 c80
60 Who is better off 2 c81
61 Shabashi 5 c82
62 Short Stories on Case Writings 12 c68
45 517
Old Cases
New Cases
2- All red font nos. included in book Tales of Grand Father (English,
62 Hindi, French, German and Spanish Languages)
2* Title changed to puntuality
Cases 38 (c51) and 44 (c61) not being shared for the time being
8
CONTENTS
PREFACE.................................................................................................. 11
59 Kingfisher Airlines ........................................................................... 15

60 Power of a Missed Meal ................................................................... 43
62 The Popat .......................................................................................... 47
63 Adani Enterprises Ltd. ..................................................................... 49
64 Is Small Beautiful (I)? ..................................................................... 73
65 The Thieves ....................................................................................... 96
69 The Kick of Creativity ...................................................................... 97
71 The Experiment ................................................................................ 99
72 Mission at Grass Roots................................................................... 109
73 The Two Worlds.............................................................................. 113
74 A Livewire Information System ..................................................... 118
75 The First Beneficiary of OBC Reservation ................................... 121
76 The Birth of an Orphan ................................................................. 124
68 Stories of Case Writing Experiences ............................................. 132
INSTRUCTOR’S MANUAL FOR CASES ............................................ 146
USEFUL RESEARCH PAPERS RELATED TO STRATEGIC

MANAGEMENT ..................................................................................... 146
CASE SETTINGS ......................................... Error! Bookmark not defined.
USE OF CASES IN STRATEGIC MANAGEMENT COURSES........ 156

9
Dedicated
To
My Students and Faculty Fraternity
Who Inspired Me for Over
Three Decades to
Develop Teaching Material
10
PREFACE
This case book emanates from my (Krishna Kumar) earlier effort Cases in
Strategic Management published by Global Business Press (1996).
However, it is different in many ways. The text part of the book has been
taken out as a separate short book (Basics of Strategic Management), to keep
the size handy. The Case Book has also been split into four volumes for the
same reasons. Provision has been made to read individual Case / Chapter
one at a time also. The internet break through allows one to read the cases
from anywhere in the globe (including ICUs), at any time in any time zone.
The smart phones allow it to be read in flight, while waiting for delayed
flights, and making use of minutes available from time to time. This all
allows necessary flexibility to make use of precious time and increases
convenience of reading.One to remember just one address ekhaikk.in to
read all that we write on strategic management, sometimes updated daily.
Both the text and case book are available on the same website, along with
other works.
Several compelling reasons have lead to preparation ofthe revamped case

book. First and foremost is the concern for giving an overview of an
important discipline, ofstrategic management ,to a large number of senior
and middle level practicing managers (who face and can make a head way
,)in facing strategic issues in their organisationbutd onot have a formal
education or training in management. The appraciation has to be brought in
a simple manner, without overloading with complexities and advance level
knowledge right away, and at the sametimeproviding opportunity to
.understand the latter as the interest in the subject develops This has been
done by giving adequate number of reference to masterpieces in the
discipline, web references and hyperlinking cases and notes written by the
authers.for the purpose
The second reason has been to give a complete overview of the strategic
management. It is found that in many books, even in masterpi eces, the
strategy implementation issues have not been adquately covered. Its
complete appreciation requires understanding of approaches for
visualisation of the nature and scope of strategy implementation tasks (for
11
and what makes the task )every corporate strategy to be executedscomplex
and demanding. It is also observedthat scant attention is paid to change
issues associated in carrying out those task and how to go about doing it.
It is expecially so for managing small and medium size of changes whi ch
are to be carried out in a large number while implementing corporate
.strategiesMany books on strategic management have been found to have
good number of cases on managing complex, mega changes, but
commensurate conceptualunderpinnings part are not and techniques
adequately covered. This casebook as well as (now separated) text book ,
therefore, focus a great attention to those issues which arenecessary for a
beginner to appraciate and comprehend the totality of strategic management
.task
The third concern has been to share meaningful case studies, developed by
and in association with the author of the book, which are embedded in the
techno-economic,regulatory ,cultural, and political context of unique -socio
Indian business environment. They cover a large variety of case stiuations,
size industry and type of organisation, which enable the reader to appreciate
wider generalisability of strategic management concepts, approaches, tools
.and techniques
The casesmay instil challenges confidence to face strageic liketurning a

companyaround from 24 years of loss making position, meeting the
challenge of OBC quota within less than stipulated period, creating an
/improvised computer centre at 110of expected costs, increase batch size
.in MBA threefold in 4 months time and so on They also demonstrate the
importance of creativity in different tasks of implementation at the same
time also illustrate how strategy implementation can lead to strategy
formulation.
The cases would also help identify the readers some new concepts and
techniques for use in strategic management, not available in many books of
strategic management like the technique of check listing, use of intermediate
solutions, identifying organization slacks and building strategy on that,
identifying idle resources into strategic strengths, turning great threats into
unique and wonderful opportunity and so on.
12
From the original book 5 old cases have been deleted, 18 retained and 38
new have been added, most of them being short cases, or long cases written
in short case format. Some very old cases have been retained as they have
still retained the gloss to bring home key lessons there are no comparable
cases could be identified which illustrate some unique aspects in
management. Twenty five other older cases (including 7 mentioned above)
have been kept in a (separate) volume V for their historical value as they
give the glimpse of the economy, technology, infrastructure, pressures in the
bygone era, through which the country has passed which can enable the
current generations about the managerial challenges that the older
generations had faced, to help them appreciate the task performed by them.
It may be mentioned here that rich short cases may need careful handling as
messages may at times not be visible in a straight forward manner. Perhaps
lot more skill is required for the instructors to use them in the spirit of “cases
are designed as a basis for class discussion” not as a substitute for the
expertise of faculty. The internet helps in condensing even a long case into
short case and downloading details as required for making class discussions
rich and meaningful, subject to time constraints.
To help teachers and trainers bring home as many points as possible in the
class, an Instructors’ Manual has also been prepared which may be shared
on charge basis, with faculty members.
While it is always desirable to go through case method of teaching through

an expert teacher/ trainer, the cases are equally relevant for collegiate system
of learning by faculty members. For beginners (those who have not been
through formal management education), twenty five short cases have been
taken out to make a small book under the title “Tales of Grand Father” (in
English, Hindi, French, German and Spanish languages) to help in having a
glimpse of strategic management subject. Indeed the book can help in
conducting up to a weeklong management/ faculty development
programme.
A good number of cases have been drawn from academic setting, because
the first hand experience tells that basics of strategic management are
applicable to them as much as they do to other kinds of organization. This
13
useful realization dawned upon me when I developed the Apollo Hospital
case study and applied the learning in conceptual terms to management
institutions settings. Such learning especially those related to strategy
implementation) have been duly incorporated in text book also. It is for the
readers to test how much of such learning they can apply to their own
organizations.
Towards the end of Volume IV, case setting and use of cases for illustrating
different topics of Strategic Management, has been given to help the faculty
members select the cases for designing the courses and programmes.
Hope the faculty members and other readers will find the Case Book useful
and interesting.
Prof. Krishna Kumar
Ruchi Srivastava
Teachers Day
September 5, 2017
Lucknow
14
The Rise and Fall of
59 Kingfisher Airlines
"We are committed to achieving our ambition of making Kingfisher

Airlines, India's largest private airline both in capacity and market share.
The Airline ushered in a new era of luxury in India's domestic aviation sector
with its brand new aircraft with stylish red interiors, and smartly dressed
crew and ground staff. Kingfisher was the first Indian airline to have in-
flight entertainment (IFE) systems on every seat with guests being able to
watch live TV in-flight" said Dr.Mallya At the launch of the airline1 The
company mission also mentioned that the Kingfisher
Airlinesfamilywillconsistentlydeliverasafe,value-basedand
enjoyabletravelexperiencetoallourguests” was a statement made
enthusiastically by Mr. Vijay Mallya2 at the time launch of the airline in
2005, which was acclaimed as a luxury airliner by many.
Little would have he expected the kind of rough weather the airline was to
face just a in three years, falling from a peak of highest market share 26%
in 2009 to a low of 6.5% in 2011 and grounding of all the aircrafts and
suspension of license in four years. It was difficult to believe that airline will
be grounded for the very same reasons sons, safety and value based service3.
Grounding of Kingfisher was not an isolated event. Several Airlines started

after deregulation of the airline industry as a part of governments’
liberailsation policies under economic reforms initiated in 1991, had been
grounded (see exhibit 1), raising doubts whether necessary care had been
taken in opening the airline sector. After all starting an airline requires huge
investment and closure of it does lead to wastage of precious national
resources and high costs to the passenger and the country
___________________________________________________________
Prepared by Prof. Krishna Kumar, Former Professor, IIM Lucknow and
Prof. Rajkumar Kovid, IFIM, Bangaluru.The case material is inspired from
a project work done by Priyamvada Singh, Krishna Jayadev, Maitree
Mishra, Pushpendra Singh, Ramaiah KarumudPGP II participants of Indian
15
Institute of Management Rohtak.
Background of the Company
Establishedin2003, Kingfisher Airlines Limited was an airline group

based in India.Itwas promoted
bytheBengalurubasedUnitedBreweriesGroup. Mr. Vijay Mallya, Chairman
of the Group had considerable experience in managing one of the largest
breweries businesses in India and had managed several acquisitions
successfully (exhibit 2).
Theairlinestartedcommercialoperationsin9May2005withafleetoffournew
Airbus A320-200soperating flights from Mumbai to Delhi4. It visualized
starting its international operations soon.
Thecompany also
ownedtwosubsidiariesnamelyNorthwayAviationandVitaeIndia Spirits.
NorthwayAviation was engagedinthebusinessoffinancingpre-delivery
paymentsandaircraftacquisition. By 2008 KingfisherAirlines achieved the
status of the onlyfivestarairlinein
5
theIndianskies andwasknownforprovidingworldclassin-flightservicestoits
passengers.
The Take Off
The promoter of the airline was known for quality and style. At the age of
28, he took over the reins of his family business. His lavish lifestyle brought
him in corporate limelight at an early age. He used his popularity to boost
UB Groups brand and coined the “King of all times” slogan for his beer5a. .
His international foray of buying and selling Berger Paints U.K. and using
the money on fast cars, yatchs and maintaining 40 odd international homes
transformed him from Chairman UB Group to its brand icon. “My own
lifestyle got intertwined with brand personality and so without really
planning it that way I became almost my brand ambassador of and that’s
just the way it’s kept on developing” he once said 5b. The slogan helped him
create a brand image of Kingfisher airlines right away.
When KingfisherAirlinesbeganitsoperations, there was no other airline that

came close to it in quality. The Indian Airline was nowhere to be quoted as
16
a class-apart passenger carrier, soonly Jet Airways was dominant players in
theIndian aviationindustry (exhibit 3). Other players did not matter as they
were catering to low cost market.
Kingfisher hoped to provide superior experience in air travel and be ahead

of competition in product and service offerings, with brand new aircrafts
and 5-element product concept: high seat pitch, personalized entertainment,
hot meals, home delivery of tickets and valet service, treating travelers not
as passengers but “guests”6. With this approach, starting with 4 flights a
day between Bangalore- Delhi, it grew to 104 flights a day connecting 16
cities by inducting 17 aircrafts in a single year and set a world record of
fastest aircraft induction in 2005-067. By the year 2006, the
Airlinesbecameanairlinesynonymwithfivestarair travel and wasbecoming
famous among businesstravelers. In December 2006
Kingfisherannouncedthatitwouldprovidelivein‐
flightentertainmentwhichwas
firstinitsclassbypartneringwithDTHpioneerDishTVIndiaLimited8.
Kingfisher’sincomeforyearendingon30thJune2006wasINR
3.05Billionbutthisamountcouldn’tovershadowlossesamountingtoINR3.4
Bn (exhibit 3).
Aircrafts
Aircraftsare one of the

mostimportantassetsofanyairliner.Choosingandinducting
thesamerequiresmajordecision makingskills. KingfisherAirlinesstartedwith
an AirbusA‐320aircraftand continuedusingaircraftsofthesameline.Kingfisher
did not acquireanyaircraftof itsown.AlltheaircraftsofKingfisherAirline
weredryleased9 one. In
drylease,thelessor(whoactuallyownstheaircraft)givestheaircraft tothelessee
(Kingfisherinthiscase)foraperiodofminimumtwoyearswithoutinsurance,
crew,groundstaff,supportingequipment,maintenance,etc.The aircrafts
charges thus become operational cost, which
playsacrucialroleincashflowcalculations. Also, since the company did not
buy aircrafts, it could notcommand any
bargainingpoweroverBoeingorAirbus.
17
Kingfisher’s Vision and Mission
Vision and Mission of a company plays very important role in the

functioning and performance of any company. Kingfisher described its
mission and vision in the following way10.
Vision: Value: Mission:

The Kingfisher Safety,  Be the most successful Full Service,
Airline family will Service, True Value airline operating in India
consistently deliver Happiness,  Creating a following of ‘fans’ and not
a safe, value based Teamwork just loyalists.
and enjoyable travel and  Drive ‘Addiction’ to Kingfisher not
experience to all our Accountability just loyalists.
guests  To be the Market Leader by 2010
In line with the above, to expand domestic routes and enter international
routes, Kingfisher decided to increase its fleet and placed orders for many
wide bodied A340-500s, A330s and A350s. It became the first carrier to
sign up A380 type of Aircrafts in 2007 11. Although the airline experienced
high traffic on metropolitan city routes like Bangalore Mumbai, New
Delhi, Chennai and Kolkata, congested airport infrastructure in these state
capitals limited its organic growth.
Moreover, the competition was becoming intense

intheIndianaviationindustry12with5
carriersfightingoneonone.IndiGo,SpiceJetorGoAirwere not new
entrantsintheindustry.They werealmostasoldasKingfisherAirlines.
Howevertheyhadrestructuredthemselveswithtime andhad retained their
LCC business model andhadnotintroducedbusinessclassintheiraircraftsinso
manyyearsofoperations.
Another problem that Kingfisher was facing was that it could not start
international flights without having 5 years’ experience in domestic
operation13. Jet Airways, owned by an NRI Mr. Naresh Goyal, did not have
any such restriction and go straightaway go international as the government
18
adopted open sky policy for airlines. Mr. Mallya was optimistic that the
Ministry of Civil Aviation may waive this condition14. But growth could not
wait for the same. By 2007 Kingfisher expanded its route network to 34
cities while doubling its frequency to 208 flights15. Besides it also
introduced Kingfisher First to increase its yield16. The market share had
increased to 13% in 2007 from 2% in 2005, while Jet Airways share had
dropped from 45% to 22.7%.17. However, all the efforts of increasing
market share were adding to company’s losses.
Theincomeforperiodending30thJune2007 increasedtoINR16.2Billion
butlossesalso accumulatedtoINR4.19Billion.
Thingswereprettymuchonright and fast
trackandwerealmostgoingasperplans.
Kingfisherhadcarried17.5Millionpassengerswithafleetof41aircraftsanda
scheduleof255flights18.
With airport modernization in metro cities set to be completed between 2008

and 2010, and tough competition from a large number of new entrants and
LCCs offering low fares, the carrier’s future growth depended on the ways
it increased its market share.
The company therefore was looking for inorganic growth to increase its
market share. It was not unexpected because Mr. Mallya had successfully
managed several acquisitions. The promoter of Jet Airways Mr. Naresh
Goyal on the other hand had vast experience in Airlines business, but no
experience in managing acquisitions. At that point there were two options
available, both of low cost carriers: One, Sahara India and the other Air
Deccan. Although Sahara India was established in 1991 and had 15 years
standing in the field, but was fast losing market share (which had come
down to a low 8%) and was also making loss19.
Air Deccan was established in 2003 and grew fast capturing 22% market
share by 200520. Air Deccan wasworking on somewhatdifferent model
providing extremelylowfarebasedservices. It sold few tickets even for one
Rupee21. Towards this the airline was using several cost cutting measures.
It had frill free flights without any complimentary service, in which even
water was not free22, unlike Kingfisher which distinguished itself with
19
variety of free services as described earlier. The crew of Air Deccan
including pilots stayed in low cost accommodation such as guest houses23,
unlike Kingfisher whose staff stayed in big hotels.
However, the airline’s growth plans were frustrated by cash problems. Its
IPO to raise equity for buying new aircrafts did not click as expected 24. Air
Deccan was therefore also looking for a partner to fund expansion and
Kingfisher was looking for a partner to increase market share (which had
been a major focus of its vision). Sahara India was in negotiation with Jet
Airways, which was more established although it was also making loss 25.
Air Deccan was thus a better choice of Kingfishe. Kingfisher therefore made
an offer of Rs.5550 million, at a share price of Rs. 155, which surprised
many industry experts in the aviation industry26. The deal also included Vice
Chairmanship to Mr. Gopinath, who was owner of Air Deccan. Apart from
26% share from the owners, Kingfishers also acquired 20% share from
public and thus took management control of Air Deccan 27. Later, in June
2007, the two companies decided to merge and Air Deccan being
rechristened as Kingfisher Red28. Some industry experts felt that the move
was also expected to help Kingfisher enter into international foray as Air
Deccan was to complete five years of operation in 2008 that was required
required for the purpose of international operations license29.
.
The Acquisition Hick ups
The growth path however was not as smooth as expected. The managerial
headaches were increasing with the task of post-merger integration. There
was duplicityoftasks after the Air Deccan acquisition,
asKingfisherAirlinesoperated two different aircrafts,AirbusandATRs (of Air
Deccan).This caused additional headache ofmaintaining different size and
shape of aircrafts, which required different decisionmakingskills and
financial burden. For example Kingfisher requireddouble the number of
personnel. IfitwouldhavereliedonlyonAirbusthenitcouldhaveeasily
reduceditsoperationalcosts. The airline was able to sort out the airport space
issue by sharing the extra departure space of Indian Airlines terminals30.
Now Kingfisher was carrying 10.9 Million passengers

annuallywithafleetof77aircrafts,operating412domesticflightsdaily.
20
Combined share of Kingfisher and Air Deccan surpassed Jet Airways
and Indian. Theperiodending31stMarch2008generatedgrossincomeofINR
14.4BillionandlossesdramaticallywerereducedtoINR1.9Billionbutthisdoes
notincludetheaftermathofmergerofDeccan.Sinceitwasastreamlinedand
wellplannedyearbyKingfisher,thisyearprovedtobe, profit-wise,
thebestyearrightfrom inception till date.
The marketing issues however continued to plague the company.

AsKingfisherAirlinesdecidedto introduce Kingfisher Red, it automatically
enteredintopricewar in domestic market againstallother carriers, especially
the LCCs.Since Air Deccan wasoffering some ticketsformeageronerupee,
Kingfisherhadto
continuesuchkindofmarketingcampaigns.ButtheproblemwasthatKingfisher
almosttrashedallthemarketingstrategiesofAirDeccan31, thinkingofreducing
operationalcosts. Butherecamethedeviation.Airlinebusinesshas extremely
longgestationperiods.ForKingfisher,AirDeccanwasatotallynewbusiness and
benefits of low cost Kingfisher Red could flow only after completing the
post- merger integration. Kingfisher however seemed
tobelievethatAirDeccan has been in the market much before Kingfisher
Airlines so it should bring
KingfisherAirline’sfinancialstatementsintogreenverysoon
Somebusinessfliers
whichwereearlierloyaltoKingfisherAirlinesusedalltheirfrequentfliermiles,
bought free tickets, gave the same to their family to enjoy and they never
returnedbacktoKingfisher32.
ForthemKingfisherAirlinesbecameacompromised
airlinerandtheystartedgoingbacktoJet Airwayswhich alsoiscashstrappedbut
hasasustainablebusinessmodel.AssoonasKingfisherrealizedthattheyhad
committedamistakebychanging the businessmodelofAirDeccan,itincreased
price of Kingfisher Red and brought thesameon parwithother
airlines33.AtthispointoftimeKingfisherRedhadbecomealostopportunityand
eventhemanagementwasconfusedifitwouldcallitanormalcarrieroralow
costone.
High Up in the Sky: Foray into International Operations
21
The year 2008-09wasquitehistoric forKingfisherAirlines. In March 2009,
in a little over three years,
KingfisherAirlinesbecamethelargestpassengerairlinerofworld’ssecond most
populous nationwith 26.7% domestic market share34.The airline also
finallygotpermittooperate
oninternationalroutesandonSeptember2008.Kingfisherflewforthefirsttime
overseasfromBangaloretoLondon.Kingfisherwasnow offering3classesof
traveltopassengers:KingfisherFirst:PremiumBusinessClasswhichwas truly
best in class, KingfisherClass:Premium Economy or the basic economy of
flagship carrierKingfisherandKingfisherRed:Lowfarebasicclassorinother
wordsthenewnameofAirDeccan35.FinancialstatementsforyearendingMarch
31st 2009 were consolidated statementsof both
KingfisherAirlinesandAirDeccanhencenowtheincomeincreasedmanyfoldst
o INR53 Billion, butsodidthelosseswhich increasedtoINR16.1Billion.
KingfisherAirlinescontinueditsrun of beingthe nation’slargest passenger

carrier in the year 2009-10 also, ahealthymarketshare of 26.7% with 11
Million passengers flying with it. The fleet although got reduced to 68
aircrafts from 77 aircrafts and domestic flights per year got
reducedto366,butinternationaloperationsincreasedsignificantlyto12flights
daily.DuringtheyearKingfisherwonnumerousaccolades36fromagenciesarou
nd theglobeandcontinuedbeingratedasIndia’sonlyFiveStarAirlineby
Skytraxfor threeyearsinarow37.However
ithadbeen4yearssincebirthofKingfisherAirlinesand
shareholderswerestillwaitingtoreceivefirstdividendfromthecompanybut
company continuedits run oflossesandreportedamarginally increased
lossesof INR16.5Billionand grossincomeshrunktoINR50.9Bn
21
foryearending March 31st2010 .
The Dark Clouds: Loss of Market Share
ThedarkcloudsoverKingfisherAirlinesweregettingdarkeranddensewithno
rayofsunshine.JetAirways(amuchstableandsustainablecarrier was also
badly affected financially due to its acquisition of Sahara Airways),
surpassedKingfisherAirlinestobecomecountry’slargestpassengerairlinerasit
reportedamarketshareof25.5%whereasforKingfisheritcamedownto19.8%
despiteincreaseinflights and matching complimentary services 38. On the rise
22
was another player, IndiGo, promoted by another NRI from USA, as
itreportedagood90%seats being filledandwas
gainingmarketsharerapidly.Kingfisher’sdomesticdailyoperationsweresame
366flightsdailybutitsinternationaloperationsincreasedto28flightsdaily39.
Theairlinereportedan
increasedgrossincomeofINR63.6BillionandreducedlossesofINR10.2Billion
fortheyearending 31stMarch 2011.
Turbulence at High Altitude: Exit from Low Fare Business
KingfisherAirlinesfortheveryfirsttimedeclaredin Sept. 2011thatitishaving

someseriouscashflowproblems40.Itblamedthesametorisingfuelcosts41Dozen
sofpilotsleftKingfisherforrivalairlinesduring201142.Kingfisher’sdueskepton
pilingupandit
wasgoodwillofUnitedBreweriesgroupthatthelessorsallowedthe
same.Theamount eventuallypiledupsomuch thatlessorsfiledsuitsagainst
KingfisherAirlinesacrossglobeandforcedKingfishertogroundmajorityof
aircrafts43.
Faced with the financial problems the Kingfishers decided to exit the low
cost Kingfisher Red business44. Business standard reported45:
“Kingfisher has run up a debt of Rs 6,000 crore, accumulated losses of Rs

5,000 crore and pays out an interest of Rs 1,300 crore —more than its market
capitalisation of Rs 1,232 crore as on Wednesday’s price of Rs 24.70 an
equity share on the National Stock Exchange. Faced with limited options,
when the markets are not really conducive to raising equity capital, Mallya,
as CMD of the 2005-founded firm, is trying to negotiate in whatever little
space he has left. That is, sweat more equity from what has been invested.
The aim is to push up revenues from fine-tuning operations, shed some
realty assets, sale and lease back around 10 A320 aircraft thus reducing the
cash outflow, reconfigure its fleet to drive in more revenues, swap some
high-cost rupee loans into low-cost forex loan and try to purchase aviation
turbine fuel from global players in an effort to reduce the sales tax burden
imposed by various states in India”. “We are getting out of Kingfisher Red,
23
which is our low-cost service offering,” Mallya said … “We are
reconfiguring our Airbus fleet so that they will all be dual class. The number
of first-class seats may be reduced from the current levels in order to fit in
a larger number of economy seats which will go up by 10 per cent.”
Regarding future course the Business Standard reported46:
“The company, he (Mr. Mallya) said, would be offering full service on all
its Airbus aircraft. The aim: more seats, higher occupancy and hopefully
higher ticket values, he said after an eventful annual general meeting of
Kingfisher Airlines. The company flies a total of 66 aircraft, 39 of which
are from Airbus, while the rest is of ATR, the turboprops which connect
Tier-II towns in India. A majority of the Kingfisher Red class of service is
on these turbo-props. All ATR aircraft of Kingfisher Airlines will continue
to operate in a single configuration as a Kingfisher Class full-service
product. All advance reservations made by guests in the Kingfisher Red
class of service would be fully honoured, said the company’s officials. This
is so, because the reconfiguration will take about four months to complete.
According to the officials, the load factors in Kingfisher First have been 50
per cent on an average. “As such, the capacity is being reduced on the
existing dual class Airbus aircraft and introduced on existing single-class
Airbus aircraft. Kingfisher will, therefore, offer the Kingfisher First service
on all its Airbus routes albeit with an overall reduction in capacity,” a source
said.
Why the phase-out? Officials said “Kingfisher Class (full service economy
class of service), over the past six months has generated higher yields and
seat factors than the no-frills Kingfisher Red class of service. Following the
re-configuration of all Airbus aircraft, the number of economy seats across
the Airbus fleet will increase by approximately 10 per cent and this capacity
will be offered across the board as a Kingfisher Class full service product,”
he said. Industry analysts are skeptical about this move by Kingfisher
Airlines to exit the low cost model. “Getting into the full service offering
across all routes is a challenge,” notes one among them47.
Creditorswarned
thefirmthatifitfailedtoraisealmostUSD159Millioninequitythenthey
24
willnotbeabletorestructureitsdebt.Kingfisher’stopbrassbelievedthat they
wouldcontinuebeingthewaytheyhavetillnowbuttheproblemswere
boundtogetreallyoutofhands.FortheveryfirsttimeMr.Mallya
himselfdeclaredthattheairline
wasindireneedoffundsinordertomaintainoperations48
Theincomeforyearending31stMarch2012
stoodatapprox.INR54.9Billion,whichwaslowestsince2007andthelosses
increased sharply toINR23.3 Billion.
The Grounding of Airline: Suspension of Operating License
The beginning of year 2012 marked the mostturbulent period

ofallforKingfisherAirlines. On 5thJanuary2012StateBankofIndia
(largestcreditorofcashstrappedKingfisherAirlines)declaredKingfisherAirlin
es asanon‐performingasset49.SBI‟s
exposuretoKingfisherwasstaggeringoverINR14.5Billion.On18thFebruary
theairlinebecameheadlineofalmostallnewspaperswhenitgroundedmostof
itsaircraftsanddeclaredthatitisoperatingmere28aircraftswithcurtailed
schedule of175daily flights50. Things now looked outofhandsofthe
managementofKingfisheranditdeclared2000jobcutsalongwithlongerwork
hours51. It seemedlikeKingfisher assumed tobea
manufacturerandnotaserviceprovider,whereeachemployeeisajewelforthe
firm..
The company was finding it difficult to pay staff salary from March 2012.
There were frequent cancellations of flights due to oil marketing companies’
refusal to give fuel, pilots’ shortage and staff agitation etc. The number of
pilots left the company.
TheconsortiumofbanksledbySBIalsodeclinedtofurtherissuemoredebtto
Kingfisher until andunlessKingfisheritselfraisedsomefundsthroughfresh
equity. KingfisherAirline’sallaccountsstandfrozenby the Tax
52
Authoritiesduetonon‐paymentofdues .AlsoTheInternationalAir Transport
Association (IATA) suspended Kingfisher from its International
ClearingHousedealingafreshblowtotheailingcarrierasitseeksfundstostay
25
aloft53. The condition was worsening with everyday passing in June-
Sept.2012.
By October the situation reached a flash point. A lockout was declared on

Oct.1, .2012 due to sudden strike by some engineers with some pilot also
joining it (because they were also not getting their salary paid), leading to
frequent cancellation of flights54. The DGCA and the Minister were
concerned about safety of passengers as engineers were not giving
“airworthiness” certificate55. The situation got worsened when spouse of an
employee committed suicide on Oct. 4, 2012, allegedly due to non- payment
of salary56.
On October 20, 2012, the DGCA suspended the operating license of

Kingfisher Airline, citing the latter’s inability to provide any reasonable
revival plan57. The suspension of license came as the airline had declared
lockout on October 1, 2012 up to October 18, which was further extended
to October 23. The airline which had departure rate of 2930 flights per week
last winter, thus, came to standstill.
The civil aviation minister fully backed the action of DGCA. The
suspension had come a day after the airline had sought more time to reply
to show cause notice sent by DGCA on the revival plan. The DGCA was
not satisfied with the reply of the airline as the latter had not come out with
the solution to its industrial unrest problem. The show cause notice had
asked plans to restart the operations and pay salary to employees and had
also said that the airline risked the suspension of license as it had failed to
establish a safe, efficient and reliable service58. The regulator had rejected
the passenger carrier winter schedule of flight departure59.
The suspension of operating license was a shock to the employees, “we only
wanted our salary, not the closure of the airline, which is source to our
livelihood”. a senior staffer said60. Not only the Minister of Civil Aviation
but even the leader of JD(U) and convener of NDA was very upset and
slammed61 Mr. Vijay Mallya.
The Financial Crisis
26
It was not only the salary of the 3000 odd ground staff, engineers and pilots
which was not being paid, the other payments like fuel and airport charges
were getting in default. Indeed as early as July 2011 the oil companies
refused supply of aviation fuel on credit62. By October the Airport Authority
refused permission of using hangers at 2 airports63. The consortium of
banks, which had very warmly taken Kingfisher as a valued client just a few
years back, were refusing further credit unless the company infused fresh
equity64, which was not easy as the share prices were also declining with
number of flights. The only way was if the owner put some new equity
personally. But the owners were non-committal on putting the family jewel
to save the airline. The only other hope was the favourable deal of owner
UB Group equity to Diego of UK, which was keen to acquire part of UB
Group business65.
The Challenges Ahead
The suspension of operating license was a serious development because for

the extension beyond the current license period (due to expire on December
31, 2012), the airline had to first get the suspension revoked before it could
apply for extension of validity of license66.
Some Industry expert felt that despite the reforms allowing private airline to
operate, in India
67
startinganairlineisnoteveryone’scupoftea .ParamountAirwayswho
althoughenteredtheGuinnessBookofRecordsfor having the youngest
Chairmanofascheduledairline,butairlineisyet
toreceiveanaircraftandofficiallyadefunctairline.InIndiaeverytimeanairliner
wants to buy an aircraft, it has to seek permission of the government and
experiencesnumerousproceduraldelaysby thegovernmental
agencies.Alsothereisanunusualrulethatinordertoflyoverseas,thecarrier
needstocompleteminimumfiveyearsofoperationsdomestically68.Furtheraddi
ng tothe woes in theoperationalenvironment,thegovernment was perceived
to be continuingits
protectionistapproachtowardsAirIndia.ForexamplemanyofIndianairportsare
capableofcateringsuperjumboAirbusA‐
380aircraftsbutsinceAirIndiadon’thaveanyofthosesothegovernmenthasnot
allowedanyotherprivateplayer fromanywhereintheworldtolandA‐
27
380forcommercialin Indianterritory. Therewasnoprivatizationofairports
before2006butevenafterthatonlyhandful of airports have been privatized,
which did not make much sense to many in the aviation industry.
Etihad Airways Offer
On December 10th, the new buzz was that Etihad Airways, the national
carrier of United Arab Emirates (UAE) is like to acquire 48% stake in
Kingfisher and take over the management control of Kingfisher69. This
would partly release the pressure on the owner Mr. Mallya. However one
was not sure on the date what will finally happen in view of the statement
of the Minister of Civil Aviation that “The airline has been saying for a long
time that they have a fool proof plan, but we have not received any such
plan yet. It is DGCA, who will decide the future of Kingfisher, if a
satisfactory plan is received”70?
Questions:
Q1. Enumerate the reasons for meteoric rise and fall of the first five star
airline in India.
Q2. Could there be any strategic reasons also associated with the
problem(s)?
Q3. If you were Mr. Mallya, what course of action you would have
followed in 2004-05?
Q4. What are the wider ramifications, if any, of the failure of Kingfisher?
Q5. Should government act in the matter? If so, what should it do?
28
References
1. http://www.theubgroup.com/business_aviation.aspx
2. http://www.theubgroup.com/finance_presentations.aspx
3. All Kingfisher Air flights grounded by strike
(http://www.financialexpress.com/news/all-kingfisher-air-flights-
grounded-by-strike/1010246 October 1, 2012
3. Kingfisher’s license suspended
(http://www.thehindu.com/business/companies/kingfishers-licence-
suspended/article4016399.ece) Oct. 20, 2012
4. Mahmud Hossain and D.G.Allampalli, “Kingfisher Airlines-
Acquisition of Air Deccan: India’s First Low-Cost Carrier”, The
Asian Business Case Centre, Nanyang Technological University,
ECCH 111-013-1 (p.3)
5. http://www.airlinequality.com/news/kingfisher_5str2010.htm
5a. Mahmud Hossain and D.G.Allampalli, opcit p.2
5b. Leahy, J. Vijay Mallya, FT.com (Oct. 26, 2007)
7. United Breweries Holdings Limited, Annual Report 2005-06,
extracted from Mahmud Hossain and D.G.Allampalli, opcit p.3
7. Mahmud Hossain and D.G.Allampalli, “Kingfisher Airlines-
Acquisition of Air Deccan: India’s First Low-Cost Carrier”, The
Asian Business Case Centre, Nanyang Technological University,
ECCH 111-013-1 (p.3)
8. “Kingfisher Airlines to offer live in-flight entertainment”, The
Hindu Business Line Dec. 9, 2006
http://www.thehindubusinessline.in/bline/2006/12/09/stories/20061
20902140500.htm
9. “Lessors Set to Grab Kingfisher Planes”
http://online.wsj.com/article/
SB10001424052970203764804577056131578919936.html Nov 24,
2011
11. Mahmud Hossain and D.G.Allampalli, opcit p.3
12. Rishikesha T. Krishnan, Indian Airline Industry in 2008 v2 0 (2),
Indian Institute of Management Bangalore (2008) p.7
13. Rishikesha T. Krishnan ibid
29
15. ibid
16. ibid
17. ibid
18. Chaahat Khattar “Kingfisher- A Case Study”
http://www.slideshare.net/ckhattar/kingfisher-airlines-a-case-study
19 Chaahat Khattar “Kingfisher- A Case Study” ibid
20. Chaahat Khattar “Kingfisher- A Case Study” ibid
21. Fly on Air Deccan @ Re 1, The Economic Times Jun 7, 2005,
http://articles.economictimes.indiatimes.com/2005-06-
07/news/27484169_1_capt-g-r-gopinath-air-deccan-low-cost-carrier
22. Case 1: Air Deccan: The first Low Cost Air Carrier of India -
IILMwww.iilm.edu/iilm-online/Casebook/Cases2007/1.pdf
23. M.R. Dixit, Sunil Sharma et.al. “Aspirations, Enterprise Strategy
and Sustenance of a Start-up in a Competitive Environment”
extracted on May 10, 2013 from
http://www.iimahd.ernet.in/publications/data/2007-11-03Dixit.pdf
24. Our IPO got caught in a tsunami: Gopinath, DNA Jul. 5, 2006
26. op.cit p.7
27. ibid.
28. opcit p.8
29. op.cit.p.7
30. Rishikesha T. Krishnan, op.cit.p.9
31. Chaahat Khattar “Kingfisher- A Case Study” op.cit.
32 ibid
33. ibid
34. (http://centreforaviation.com /analysis/kingfisher-airlines-captures-
majority-market-share-with-strong-passenger-growth-in-mar-2009-
7103
36. “About us” http://flykingfisher.com/aboutus/achievements.aspx
37. “5-STAR AIRLINE' Crown for Kingfisher Airlines, Again”
http://www.flykingfisher.com/media-center/press-
releases/%E2%80%985-star-airline%E2%80%99-crown-for-
kingfisher-airlines-again.aspx
30
39. ibid
40. Annual Report 2010-11 Kingfisher Airlines
http://www.flykingfisher.com/pdf/Kingfisher%20Annual%20Repor
t%20-%201%20-%2029.09.2011.pdf
41. “Kingfisher Airlines crisis: Mallya blames it on oil price spike”
Times of India Nov 12, 2011
http://timesofindia.indiatimes.com/business/india-
business/Kingfisher-Airlines-crisis-Mallya-blames-it-on-oil-price-
spike/articleshow/10697093.cms
42. “Kingfisher sees exodus of pilots, biz may be hurt” Hindustan
Times, Oct. 4, 2011
43 “Lessors Set to Grab Kingfisher Planes” The Wall Street Journal,
November 24, 2011
44. “Kingfisher Airlines to exit low-cost business” The Hindu, Sept. 28,
2011
45 Kingfisher chucks Red to stem losses, Business Standard Sept. 29,
2011 (http://www.business-
standard.com/article/companies/kingfisher-chucks-red-to-stem-
losses-111092900104_1.html )
46. ibid
48. Vijay Mallya's Kingfisher seeks 400 crore loan from SBI One India
News, Nov. 19, 2011
http://news.oneindia.in/2011/11/19/vijay-mallya-s-kingfisher-to-
seek-rs-400-crore-loan-sbi.html
49. “Kingfisher Airlines an NPA: SBI Chief” Live mint The Wall Street
Journal Jan 05 2012 http://www.
livemint.com/Companies/z8wRcz7ypViGjVzxHmEdFM/Kingfisher
-Airlines-an-NPA-SBI-chief.html
50. Kingfisher grounds 15 jets on failure to pay maintenance costs
NDTV January 2, 2012,
Kingfisher Airlines grounds more flights, passengers suffer Press
Trust of India | February 18, 2012
51. “Kingfisher Airlines mulls 2,000 job cuts, longer work-hours”
Economic Times Jan 4, 2012
52. CBEC freezes Kingfisher Airlines bank accounts, ETNow Feb. 24,
2012, I-T dept freezes Kingfisher Airlines' bank accounts, ETNow
May 29,2012
31
53. “Kingfisher Airlines suspended by IATA for non-payment of dues”,
Times of India, May 7, 2012
The airline, which never made a profit since its inception in May
2005, reported a net loss of Rs 444.26 crore in the December
quarter. It suffered a loss of Rs 1,027 crore in 2010-11 and has a
debt of Rs 7,057.08 crore apart from over Rs 4,000 crore of
accumulated losses and a restructured longterm loan of around Rs
7,000 crore.
54. DGCA suspends Kingfisher's flying license Times Now 20 Oct
2012, 1458 hrs IST
(http://www.timesnow.tv/DGCA-suspends-Kingfishers-flying-
license/articleshow/4412959.cms)
55. ibid
56. “Wife of Kingfisher Airlines' employee commits suicide due to non
payment of salary”, Economic Times Oct. 5, 2012
57. “DGCA suspends Kingfisher’s flying license”,op.cit.
58. ibid
59 “Kingfisher grounded for the winter as DGCA denies nod” Oct. 18,
2012 (http://www.domain-
b.com/aero/airlines/20121018_kingfisher.html )
60. “Kingfisher employees shocked over suspension”
http://post.jagran.com/Kingfisher-employees-shocked-over-
suspension-13507304#sthashQu89k1RP.dpuf
61. “Arrest Mallya for abetment of suicide: Sharad
Yadav”(http://articles.timesofindia.indiatimes.com/2012-10-
07/india/34305808_1_vijay-mallya-abetment-sharad-yadav
TNN Oct 7, 2012
62. “OMCs stop oil supply to Kingfisher Airlines” The Economic
Times, Jul 19, 2011
“Kingfisher services hit as oil firms refuse to refuel”, The Hindu
Business Line Oct. 13, 2011
63. “Kingfisher Airlines told to pay Rs 60 lakh per day to use Mumbai
airport” Times of India Dec 2, 2011
64. “Kingfisher Airlines Still in Trouble; Lenders Refuse to Extend
Loans” International Business Times Feb. 22, 2012
(http://www.ibtimes.com/kingfisher-airlines-still-trouble-lenders-
refuse-extend-loans-414342)
32
65. “Mallya seals Diageo deal but Kingfisher future uncertain”, First
Post business, Nov. 12, 2012
(http://www.firstpost.com/business/mallya-seals-diageo-deal-but-
kingfisher-future-uncertain-521415.html )
66. Chaahat Khattar “Kingfisher- A Case Study”, op.cit
67. ibid
68. Rishikesha T. Krishnan,op.cit.
69. “Kingfisher, Etihad renew deal talks” Times of India, Dec. 12, 2012
(http://timesofindia.indiatimes. com/business/india-
business/Kingfisher-Etihad-renew-deal-
talks/articleshow/17577713.cms )
70. “Kingfisher Airlines should revive for its employees, passengers:”
Ajit Singh, The Economic Times, Jan 2, 2013,
33
Kingfisher Airlines
Exhibit 1
Defunct airlines in India
Airline Commenced operations Ceased operations Headquarters
2007 Merged into Kingfisher
Air Deccan 2004 Bangalore
Airlines
2006 Taken over by Jet Airways
Air Sahara 1991 Mumbai
and rebranded as JetLite
Air India Cargo 1954 2012 Mumbai
Jetlite 2007 2012 Mumbai

Indian 1953 2011 New Delhi
Aryan Cargo Express 2005 2010 New Delhi
Paramount Airways 2005 2010 Chennai
MDLR Airlines 2007 2009 New Delhi
Indus Airways 2006 2007 New Delhi
Crescent Air Cargo 2000 2006 Chennai
Gujarat Airways 1995 2001 Ahmedabad
Archana Airways 1991 1999 New Delhi
Bhaarat Airways 1995 1999 Mumbai
Elbee Airlines 1994 1998 Mumbai
Damania Airways 1993 1997 Mumbai[10]
Vayudoot 1981 1997 New Delhi
Vijay Airlines 1981 1997 Chennai
ModiLuft 1994 1996 Mumbai
VIF Airways 1993 1996 Hyderabad
East-West Airlines 1992 1995 Mumbai
Pushpaka Airlines 1979 1983 Mumbai
Darbhanga Aviations 1950 1962 Kolkata
Airways (India) Limited 1945 1955 Kolkata
Air Services of India 1936 1953 Mumbai[9]
Himalayan Aviation 1948 1953 Kolkata
Orient Airways 1946 1953 Kolkata
Indian Overseas Airlines 1947 1950 Mumbai
Ambica Airlines 1947 1949 Bombay
Jupiter Airways 1948 1949 Mumbai
Indian Transcontinental Airlines 1933 1948 Kolkata[9]
Tata Airlines 1932 1946 Mumbai[9]
Indian National Airways 1925 1945 Delhi[9]
Irwaddy Flotilla & Airways 1934 1939 Chennai
Himalayans Air Transport &
1934 1935 Kolkata
Survey Limited
Indian State Air Service (ISAS) 1929 1931 Kolkata
Skyline NEPC Chennai
34
Exhibit 2
Acquisitions by UB Group
Vijay Mallya’s Ventures
1 1978 Vijay Mallaya gets involved with UB Gr. Co. Carew Phipson, under
his father Vittal Mallya. The Group was a diversified entity with
beer, spirit, food and trading business
2 1983 At 28 takes over as UB Group Chairman after his father’s death
3 1985 Along with Manu Chhabaria bids for Shaw Wallace from its foreign
promoters. Gets entangled in FERA. Loses deal.
4 1988 Effects leveraged buyout of Berger Paints. Divested in 1996
5 1989 Acquires loss making Mangalore Chemicals and Fertilisers and
turns it around.
6 1991 Starts pruning diversified portfolio. First sells Dippy’s and later
Kissan to HLL 1994.
7 1994 Takes Kishore Chhabaria, younger brother of Manu as partner in
Herbertson. Gets enmeshed in a Board room battle over control.
Buys out Kishore for Rs. 134 Cr. In 2005
8 1997 Enters the U.S. Craft brewing industry with the buyout of
Mendosino Brewing
9 2001 To pre-empt competition from MNCs like SABMiller, acquires
associated Interasia GMR Breweries
10 2002 Buys 85% stake in Triumph Distillers & Vintners Owning, Gilby’s
Green label whisky
11 2004 Wins a long running case against Manu Chhabaria regarding Shaw
Wallace.
12 2005 Acquires Shaw Wallace for $300 mn from Chhabarias.
Launches Kingfisher Airlines
13 2006 Starts scouting for international acquisitions spirit and wine
industry.
Launches bid for Champagne Taittinger but withdraws in face of
opposition.
14 2007 Acquires Scottish Distiller Whyte and Mackey for $ 1.2 bn
Buys controlling interest in Air Deccan and take ownership interest
in Spykar F1 Team along with Dutch Tycoon Michael Mol.
15 2008 Enters into discussions with Viageo Plc. To sell stake but talks fail.
Mallaya successfully bids for Bangalore IPL Team
16 2009 Dutch brewer Hineken becomes Mallya’s partner in beer business
after buying out Scottish and New Catle
17 2010 Kingfisher airlines losses widen. Mallya seeks debt recast
18 2011 Sells 42.5% stake in F1 Team to Sahara India
19 2012 Mallya restarts talks with Diego as KFA operations are hit
Banks refuse further debt recast
Source: “Winning Some, Losing Many”, Times Business, Nov. 16, 2012
35
Kingfisher Airlines
Exhibit 3a
Income Statement (INR million)
2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenue 629 3,056 12,364 16,221 14,414 52,692 50,899 63,596 54,934
Cost of revenue -452 -2,610 - - - - - -56,793 -
Gross Profit 177 445 13,475
-1,111 19,208
-2,987 19,197
-4,784 63,343- -1,826
52,725 6,804 59,006
-4,072
Sales, general & ad... -169 -584 -2,693 -3,749 -2,458 -8,239
10,651 -6,888 -6,760 -6,695
Depreciation -14 -88 -323 -439 -366 -1,716 -2,173 -2,410 -3,419
Provision 0 0 -76 -41 0 0 0 0 0
Other op inc/exp... 0 0 0 0 0 5,308 0 0 0
Operating income -5 -226 -4,203 -7,215 -7,607 - - -2,367 -
15,297 10,886 14,186
Interest expense -39 -102 -320 -624 -504 -6,962 - -13,129 -
Other income/exp... 52 120 1,154 3,678 1,285 708 -2,267
11,026 288 12,763
-7,511
Profit before tax 8 -209 -3,368 -4,162 -6,826 - - -15,208 -
Income tax & other ta... 3 -13 37 34 -4,945 -5,464
21,552 -7,707
24,179 -4,934 34,461-
Net income from c... 6 -195 -3,405 -4,196 -1,881 - - -10,274 11,181-
Extraordinary & disc... 0 0 0 0 0 16,0880 16,4720 0 23,2800
Share of associates 0 0 0 0 0 0 0 0 0
Minority Interest 0 0 0 0 0 0 0 0 0
Net Income 6 -195 -3,405 -4,196 -1,881 - - -10,274 -
16,088 16,472 23,280
NI - Preferred Di... 6 -195 -3,405 -4,196 -1,881 - - -10,684 -
Basic shares 13 23 50 99 136 222
16,088 266
16,472 267 23,794
507
Diluted Shares 13 23 50 99 136 222 266 267 507
EPS Basic 0.43 -8.38 -68.24 -42.24 -13.87 -72.33 -61.95 -40.08 -46.92
EPS Dil 0.43 -8.38 -68.24 -42.24 -13.87 -72.33 -61.95 -40.08 -46.92
cratheyon.com (
http://craytheon.com/financials/income_statement_profit_loss.php?company=KFA
36
Kingfisher Airlines
Exhibit 3b
Balance Sheet (INR Million)
2004 2005 2006 2007 2008 2009 2010 2011 2012
Cash and cash equiva... 160 829 2,565 8,170 2,801 1,719 2,065 2,524 1,823
Short-term investment 0 0 0 0 0 0 0 0 0
Accounts receivables 47 84 131 352 272 2,742 3,225 4,405 1,876
Inventories 115 364 573 616 486 1,472 1,649 1,876 2,048
Deferred income taxes 0 0 0 0 0 0 0 0 0
Other current assets 154 474 1,674 1,761 2,906 14,399 17,633 20,933 10,442
Total current assets 476 1,751 4,942 10,901 6,466 20,332 24,571 29,738 16,188
Gross property plant... 271 552 2,473 3,408 3,223 18,918 20,481 22,543 14,316
Accumulated Depriciat... -16 -45 -164 -337 -436 -3,163 -4,936 -6,824 0
Net property, plant and 255 507 2,309 3,070 2,788 15,755 15,545 15,719 14,316
Work
Eq... in Progress 12 1,531 2,865 3,576 3,462 16,309 9,806 6,733 0
Miscellaneous Investment 0 4 4 4 0 0.5 0.5 0.5 0.26
Deferred income taxes 0 0 0 0 4,985 16,697 24,344 29,278 40,459
Intangible assets 0 0 0 0 0 0 0 0 115
Goodwill 0 0 0 0 0 0 0 0 0
Other long-term assets 127 474 3,982 8,074 9,974 27,545 44,947 54,743 19,723
Total non-current assets 394 2,516 9,160 14,725 21,210 76,308 94,642 1,06,474 74,612
Total assets 870 4,267 14,102 25,625 27,675 96,640 1,19,213 1,36,212 90,800
Short-term debt 175 1,366 1,988 5,222 2,805 24,837 33,872 10,186 23,346
Accounts Payable... 181 614 2,178 2,524 4,132 28,376 26,087 28,802 28,165
Provisions 18 249 922 1,305 1,635 3,118 4,532 6,757 662
Taxes Payable 0 0 0 0 0 0 0 0 0
Deferred Revenues 0 0 0 0 0 0 0 0 0
Capital Leases 0 0 0 0 0 0 0 0 0
Other current liabilities 63 238 654 995 898 3,978 4,863 6,110 32,186
Total current liabilities 438 2,467 5,742 10,047 9,470 60,309 69,353 51,854 84,359
Long-term debt 174 1,479 2,528 3,945 6,539 31,818 45,354 60,385 56,954
Provisions 0 0 0 0 0 0 0 0 196
Capital Leases 0 0 0 0 0 0 0 0 0
Other longterm liabilities 0 0 0 0 0 0 0 0 115
Total non-current 187 1,479 2,528 3,945 6,539 31,818 45,354 60,385 57,265
Total liabilities
liabilities 625 3,946 8,270 13,992 16,009 92,128 1,14,707 1,12,239 1,41,624
37
Kingfisher Airlines
Exhibit 3c
Cash Flows Over the Years (INR million)
2004 2005 2006 2007 2008 2009 2010 2011 2012
Cash flows from Operations
Net income 9 -181 -3,368 -4,162 -6,826 -21,552 -24,179 -15,208 -34,461
Depreciation & amortization 14 88 323 439 366 1,453 2,173 2,410 3,948
Investment gain & loss 0 0 0.34 0 0 0 0 0 0.24
Income taxes 0 0.03 0 0.06 0.18 0 0 0 0
Stock based compensation 0 0 0 41 11 0 0 0 0
Working capital changes
Accounts receivable -18 -37 -56 -231 0 -805 -483 -1,302 2,291
Inventory -76 -249 -209 -44 130 -553 -176 -228 -181
Accounts payable 0 0 0 0 88 0 0 0 6,381
Other working capital 64 458 1,925 1,200 1,307 9,885 -3,593 2,763 429
Other items -37 -99 -524 -2,876 -487 -1,844 -305 582 1,517
Cash provided by operat... -19 30 -1,777 -5,467 -5,316 -6,428 -16,604 124 -8,815
Income tax paid -0.31 -2 -21 -58 -100 -30 -47 -102 -40
Net cash generated from op... -20 27 -1,798 -5,526 -5,415 -6,458 -16,651 22 -8,855
Cash flows from Investment
Investments in PPE -207 -1,767 -3,968 -1,830 -279 -3,986 -2,722 -863 -3,201
Sale of PPE 52 52 0 84 0.04 -7 -775 0 0.46
Purchases of investment 0 -4 0 0 0 0 0 0 0
Lease Cost 0 0 0 0 0 2,077 968 1,150 -593
Other investing activities -119 -167 503 2,887 250 52 285 183 -211
Net cash used for Investin... -267 -1,883 -3,457 1,195 138 -2,066 -2,351 380 -3,876
Cash Flows From Financing
Debt issued 259 3,263 5,505 3,572 4,874 0 0 0 20,458
Debt repayment -37 -797 -3,302 -1,714 -3,921 -10,306 -24,128 -9,231 -1,782
Common stock issued 208 87 4,217 5,761 21 -5 0 0 0
Dividend paid -1 -2 0 0 0 0 0 0 0
Interest Paid -21 -61 -127 -262 -319 7,410 9,483 8,414 -6,646
Other financing activities 21 35 699 2,580 -747 0 0 0 0
Net cash provided by Finan... 429 2,526 6,991 9,937 -92 -2,901 -14,646 -817 12,030
Others 0 0 0 0 0 408 0 0 0
Net change in cash 142 670 1,735 5,606 -5,369 -11,017 -33,648 -414 -701
Cash at beginning of period 18 160 829 2,565 8,170 2,801 1,719 2,065 2,524
Cash at end of period 160 829 2,565 8,170 2,801 -8,216 -31,929 1,650 1,823
Free Cash Flow -226 -1,739 -5,766 -7,356 -5,694 -10,444 -19,373 -841 -12,057
38
Kingfisher Airlines
Exhibit 4
Key Performance Data
Year Revenue Profit/ Market # Cities # of Flights # of Aircrafts
(Loss) Share in
Network Domestic International Airbus ATR Total
INR INR Domestic
2005-06 million
3056 million-195 2% 2 4 4
2006-07 12364 -3405 4
2007-08 16221 -4196 13.0% 34 208 41 41
2008-09 14414 -1881 27.0% 412 12 77 77
2009-10 52692 -16088 22.9% 366 28 68 68
2010-11 50899 -16472 19.8% 366 39 27 66
2011-12 63596 -10274 14.0%
2012-13 54934 -23280 6.4%
39
Kingfisher Airline
Exhibit 5
IndianDomesticAirlineIndustry: MarketShareData (%)
Airline Y.E.31/3/02 Y.E.31/3/0 Q.E.06/06 Q.E.03/07 Q.E.03/08

3
JetAirways 45.3 45.9 34 24.2 22.7
JetLite 8.12 7.4
Sahara 4.8 9.3 9 AcquiredbyJetAirways

&
renamed as
Indian 44.3 39.6 21 19.2
JetLite 14.8
AirDeccan 19 18.6 14.6
Kingfisher 8 10.6 14.5
SpiceJet 6 8.1 10.3
Paramount 1.5 1.2

GoAir 2 4.7 4.4
IndiGo 5 10.3
Others 5.6 5.2 1
Source:Rishikesha T. Krishnan, Indian Airline Industry in 2008 v2 0 (2), Indian Institute of

Management Bangalore (2008)
40
Kingfisher Airline
Exhibit 6
FleetSizeofIndianCarriers
96- 97- 98- 99- 00- 01- 02- 03- 04- 05- 06- Latest
97 98 99 00 01 02 03 04 05 06 07 Position
AIRINDIA 28 26 26 26 28 29 31 35 37 38 35
AIRINDIA 4 13
EXPRESS
INDIAN 52 39 44 44 42 44 43 47 52 55 59 91
AIRLINES
(justbefore
ALLIANCEAIR 3 12 12 12 11 11 11 15 15 15 15 merger)
JETAIRWAYS 13 19 25 28 30 38 41 41 42 53 53 81(05/08)*
SAHARA/ 4 6 8 9 7 10 12 20 22 29 29 24(05/08)
JETLITE
AIRDECCAN 4 16 29 39 41(09/07)
PARAMOUN 1 5 6(04/08)
T
AIRWA
YS
SPICEJET 5 11 18(05/08)
KINGFISHER 11 25 34(09/07)
GOAIR 3 5 5(mid07)
INDIGO 8 17(04/08)
ARCHNA 4 2 No
NEPC 9 Longerin
SKYLINENEPC 5 Operation
(DAMANIA)
*Incl.18wide-bodiedaircraftusedexclusivelyforinternationaloperations.
41
Kingfisher Airline
Exhibit7
FinancialSummaryofScheduledIndianCarriersduring2005-06&2006-07(Rs.Million)
Airline 2005-06 2006-07
Operating Operating Operating Operating Operating Operating

Revenue Expenses Result Revenue Expenses Result
1 AIRINDIA 88337.1 92333.0 -3995.9 84388.6 96658.9 -12270.3
2 AIRINDIA 4323.8 4275.4 48.4 7794.0 7629.0 165.0

EXPRESS
3 INDIAN 57660.1 56902 758.1 59862.7 73704.3 -13841.6

AIRLINES
4 ALLIANCEAIR 5533.4 5971.2 -437.8 3802.7 4660.6 -857.9
TOTAL(PUBLIC 155854.4 159481.6 -3627.2 155848.0 182652.8 -26804.8

SECTOR
AIRLINES)
5 JETAIRWAYS 56960.6 51573.0 5387.6 70578.0 71098.2 -520.2
6 SAHARA 20617.2 21212.1 -594.9 20153.3 25715.4 -5562.1

AIRLINES
7 AIRDECCAN 13518.1 16741.4 -3223.3 21423.0 24960.7 -3537.7
8 PARAMOUNT 144.2 321.9 -177.7 2549.8 2306.6 243.2

AIRWAYS
9 SPICEJET 3418.6 3903.9 -485.3 7574.4 9241.0 -1666.6
10 KINGFISHER 4250.1 6587.8 -2337.7 15084.6 20415.3 -5330.7
11 GOAIR 384.0 968.0 -584.0 3482.6 5634.6 -2152.0
12 INDIGO 2162.8 3904.2 -1741.3
TOTAL 99292.8 101308.1 -2015.3 143008.5 163276.0 -20267.4

(PRIVATE)

42
60 Power of a Missed Meal
“There are various stakeholders in any organization. In our Institute they were
faculty members, officers staff members, students, Board members, MHRD
representatives. Each one had different expectations and consciously or
otherwise created problems, which I found were difficult to handle; luckily not
all of them happened at the same time” said the Director.
“After four years of being in the position of Director, I was feeling happy; the
Institute had grown despite various constraints and we were having all the
stakeholders happy except some officers, who were demanding elevation to
positions that did not exist and missed was not prepared to consider creations
of higher level position despite request by the Directors of various Institutions.
However, one fine morning we faced a totally unexpected development that

shocked us. We had given advertisement for security and housekeeping
contracts. The agency which had assumed charge for both the services six year
ago had agreed for renewal on a nominal increase three years ago, but was
reluctant to continue as the staff was agitating for 50% increase in monthly
compensation, allegedly at the instance of local political leaders of four main
national parties and some insider. Some office bearer of the institute’s staff
union had told me earlier that “they are instigating us to go for agitation”. We
therefore floated tenders for the two services” he continued.
The tenders were invited and a committee was constituted to examine the same
and make recommendations for award of contracts. The committee finalized
and called negotiation two parties, S1 and S2, who had made lowest tender for
security and housekeeping respectively. Being a small city with total
populations of 5 lakhs, the previous agency was had all the workers from
neighbouring area. The new agencies also had to bank on them as bringing
securities guards and housekeeping staff from outside the city was not possible.
____________________________________________________________
Copyright (C) Ruchi Srivastava, PGDM, Interior Designer, Bangalore
43
The problem was that both the security as well as housekeeping service provide
were proposing reduction in number of persons to 2/3 of the existing
manpower. The workers allegedly on the instigation of local politicians,
belonging to four different national political parties, were demanding a 50%
hike in monthly payment (governed under minimum wages Act). The Central
Government had issued a circular asking centrally funded institution to reduce
expenses by 10% as an economic measure.
While the issue could be amicably settle with the security service provider,
who was under supervision of a former army colonel, the same was not getting
settled with service provider for housekeeping, which did not have a strong
supervisor locally. A young person deputed for the purpose was threatened by
outside unions for hire consequences (life threats) if he entered the campus.
The matter could not settle and for some 15 days worked did not attend to
work. The campus started stinking; with not solution in site.
In the meantime due to some terrorist attacks elsewhere, the central

government advised not to allow any unauthorized persons in the campus,
since the worker had still not been formally engaged by the service provide 2
(S2), the Institute could not issue entry pass to them.
The matter hotted up and one morning there was a frantic call from the officer
dealing with the subject, informing the Director that all the housekeeping
workers had gathered at the main gate and planning to forcibly enter the gate
with the support 4 unions leaders who were perceived to be some militant. He
also informed that the fury is so much that there could be serious law and order
problem and the institute’s property may be damaged. The situation had turned
very grave and frightening all of a sudden and situation looked going out of
control.
The commander of the S1 was sitting with the Director and suggested that the
latter should immediately request of Home Ministry to air lift CISF
paratroopers from Delhi to save the “glass” campus. We tied to contact our
ministry but that day due to some important function the minister and officers
44
could not be contact. We then send a fax to Secretary (Home). The Ministry
did not send CISF paratroopers but requested the DGP of the state government
to rush help urgently. By afternoon IGP of the area reached campus and
assured us full safety, including positioning of police vans fitted with guns,
hidden beneath the tall coconut trees and bushes spread throughout the campus.
It gave me a sense of security and confidence to face the situation. But that
alone was not the solution. The dead lock had to be broken.
The officer-in-charge of the security had been asking the Director to meet the
outside union leaders of four major union leaders to negotiate the matter. The
Director was reluctant as he had no locus- standi to negotiate on behalf of the
S2. He however, was prepared to meet as citizen of the area to develop
solution. The next day all the 4 union leaders came to meet.
“We started at 11 am and changed three interpreters as I did not know local,
vernacular language and they did not know either English or Hindi, which I
knew”. It was difficult to find a solution as the union leaders were not willing
to accept signing of individual agreements, which S2 was stipulating as a
standard practice of the company. The unions wanted that I should also
guarantee that no one would be removed, which I could not agree. Besides,
there were two conditions in the contract, one related to removal on
indiscipline and another one that the some of the surplus staff should be
transferred to other establishment of S2 in the city, if necessary. I was not
agreeable delete to of any of them, as I had no locus-standi on the issue” said
the Director. .
The dead lock continued for 3 hours and at 2 p.m. my office assistant reminded
me of the lunch time getting over. I asked him to wait. At 3 p.m. he asked
again and arranged lunch in the office. At 4 p.m. the union leaders requested
me to have lunch. At 5 pm they asked again. I enquired whether they had
taken. They replied in affirmative. At 5.30 they requested again. I was upset.
”The 40 odd workers who had served the Institute for 6 years have not taken
lunch, and you all who pretend to represent them have taken lunch. How can I
swallow the meal? I will not be able to do it” the Director said.
45
At 6 p.m. all 4 leaders relented and said “We are agreeing to everything. We
trust you, but would like to make one request. Please meet the workers and tell
them that they won’t be sacked now for reduction of manpower as proposed
by S2. They all will sign individual agreements also. The demand for 50% hike
in compensation will also not be impressed. They all have faith in you. Please
do not tell any administrative staff. And please take lunch”. I agreed to meet
the workers but made it clear that I will only request the service provider not
to do so” said the Director.
Next day morning 8’ am (before office opened at 9 pm), all the people
assembled at top floor of the new dining hall on the near side of the institute.
Each one signed the agreement collected security pass, had a cup of tea, and
resumed duty at 9 pm when the institute offices opened.
“I had never realised the power of missing a meal as a substitute for bullets
and guns? But could now imagine the power Gandhiji’s “Annashan”
commanded that contributed to independence of India” he concluded..
Q. How far and under what circumstances it can still work in Indian
organizations?
46
62 The Popat
I was working in a bank’s staff college, some decades ago. The salary was
reasonably o.k. for a comfortable living. We use to invest in PPF and NSC to
reduce tax under section 88C (now 88). Our office was on 5 th floor and
Administrative office in the basement. The Principal’s office was on the 1 st
floor.
One day towards the end of March (perhaps 28 th March), I happened to go to

basement, the Administrative Officer, Mr. Vaibhav, who did not impress us as
a very sharp person and we in lighter vein used to call him Popat saw me and
asked as to why my saving was so less and why I was paying so much of
income tax (roughly 40%). The following interesting conversation took place.
Me :How can I have more savings? With lot of efforts, I have been able to
save Rs. 3,000/- (my one month salary).
Popat:It is too less Dr. Saheb. You must save at least Rs. 10,000/-, if not more.
Me :How can I do it? I can’t cut my expenses any more.
Popat :No, No, No, you don’t need to cut expenses.
Me :(Surprised) Then how do I save?
Popat :Do you know our bank gives loan on NSC.
Me :Yes, but what to do with it, what’s the benefit?
Popat :You know you can get employee loan up to 90% of your NSC, at 12%
interest.
Me :But I get only 12% on NSC, what’s the benefit?
Popat :If you get 90% loan on your Rs. 3,000/- NSC, which is Rs. 2,700/-, you
get income tax rebate of 40%, which is Rs. 1,080/-. What do you say?
We will share the gain 50-50.
Me :But there is too much of hassle in taking a loan.
Popat :Why? I give you form, you fill it. The Principal is on the first floor. He
can sign today itself.
Me :But, then I have to go to buy NSC. I don’t have time to do it due to
hectic classes.
47
Popat :No problem, my wife is NSC agent. She can get your NSC tomorrow.
Me :O.K.
He gave me the loan form, I signed it and went to the class. He completed other
details, got signature of the Principal and next day evening, he gave me NSC
of Rs. 2,700/-., looking at me with some expectation, I gave him Rs. 500/- and
thanked.
Popat :“Sir, ek he round kheliega?”

Me :What?
Popat :It is only 29th March. Two days yet to go for year end.
I could not control my laughter and thanked him again. Amused, I realized
“Popat bhai was humble not a fool that we thought of him”.
Questions
 Who was real Popat?

 How much tax saving could be done?
 Is it desirable?
 What lessons the experience can give to the Chief Executives of
Management Schools or other organizations?
48
63 Adani Enterprises Ltd.
Adani Enterprises was one of the fastest growing companies in India. It

was a part of Adani Group. The group was 4th fastest growing group in
India as per Business Today1. With total income of over Rs. 46000 crores,
the company’s ranking in the Indian corporate sector improved from 29
in 1998-99 to 21 in 2012-132. Mr. Gautam Adani, the founder Chairman
entered the elite league of top 10 richest men in India in 20143.
Thecompany’s business covered a wide range, from power generation to
shipping, from coal mining to real estate, from vegetable oil to creation of
port, special economic zones (SEZs) and international trade; becoming
leader or at least a key player in each one of them and setting standards
of performance in many. Each business was a complex one with associated
risks and challenges. The company was helping public sector companies,
government and even the rivals by arranging critical supplies like coal. Mr.
Gautam Adani was looking forward to accelerate growth with new
opportunities emerging in the Indian business environment, thanks to a
liberalised economy.
Brief History of the Company
The company's story begins in 1988 when a young, 26 years old Gautam Adani
branched out of his family's trading business to start a partnership firm with
his brother that would make the most of the opportunities offered by the export-
import (EXIM) policy of 19854, which was converted into public limited
company in 1993as Adani Exports Ltd. (AEL)5.It grew quickly by diversifying
______________________________________________________________
© Copyright (2014) Prepared by Prof. Krishna Kumar, Former Director &
Professor, Indian Institute of Management Kozhikode, Prof. Ritu Srivastava,
Management Development Institute Gurgaon and Ms. Ruchi Srivastava,
PGDM, Interior Designer, Bangalore.
49
its import and export portfolio to cover multi-basket commodities, including
frozen foods, dyes & .intermediaries, plastic products, agriculture products etc.
to about 28 countries6. By 1998 the company became the biggest
exporterwith exports of over Rs. 1100 crores, which was half the total
income of the company. As far back as
1997/98 the Adani Group was the country's top net foreign exchange earner
and the largest private sector Super Star Trading House in India7
The young entrepreneur soon realised that to be successful, an emerging

market required the involvement of dynamic logistics companies to support
the growth sought by rapid industrialisation. To set him off on his way, two
things fortuitously happened8: the first, a proposed 50:50 joint venture
between Adani trading house and a US-based company, Cargill, to engage in
salt farming and export that came unstruck, because the partner demanded
revised share of 89% instead of 50% in the joint venture (as the government
opened the sector for foreign investment), which was not acceptable to AEL.
The other was the government's decision to open infrastructure development
to private investment. The abandonment of the joint venture had left a vast
swathe of land at the coast (which the company had earmarked for salt
farming and rights to develop a jetty for salt export), unutilised. In this Gautam
Adani saw an immense opportunity. He launched himself into building a
private port at Mundra connected to an Indian Railway junction 64 kilometres
away, by a private railway line and an edible oil refinery in close proximity to
it.
The efforts to increase export thus led to creation of company’s own port in
Mundra to provide a base for its trading operations. An agreement with
government of Gujrat was signed to develop a mega port in 1997. In 1999, the
company commenced coal trading, followed by a joint venture in edible oil
refining in 2000 by forming Adani Willmar9. Starting with a 2.2 million MT
per annum edible oil refining capacity in India10, Adani Wilmar became the
largest manufacturer of edible oil in India with a market share of about
45% in the year 2013.
50
The initial public offering (IPO) for the Mundra Port and Special Economic
Zone (MPSEZ) in 2007 was oversubscribed an incredible 115 times 11 while
IPO for Adani Power Limited was oversubscribed 21.64 times in 2009 when
the world was still recovering from the economic crash12
Growth of the Company
The group’s second phase started with the creation of large infrastructure
assets. The company established a portfolio of ports, power plants, mines,
ships and railway lines within and outside India.
Adani Power Ltd. (APL)
The group saw an opportunity to enter into power generation business as the
demand for electricity started increasingly rapidly, thanks to rapid electrical
consumer goods industry and general increase in demand for electricity. The
group’s foray in power generation started 1997 with a MoU signed with
Eastern Generation, UK to jointly develop, own and operate coal fired power
projects in India. Adani Power Private Ltd was thus launched in 1997, which
received LOI from Government of Gujarat to set up a 54 MW power plant in
Anjar, Kutch district. The power generation activity however got an impetus
in 2004-05 when the group planned to set up Mundra Power Projects, mainly
a thermal power station of 2x330 MW generation units with equipment
supplied from China. In 2006-07 the company went public to increase capital
to meet the requirement of expansion of the project through phase II of another
2x330 MW units, as the phase I was nearing completion, to be able to supply
1000 MW power to Gujarat Urja Vikas Nigam Ltd. (a state government
company) with whom it had entered power purchase agreement (PPAs) to sell
1000 MW of electrical power.
The company signed another 1000 MW power purchase agreements (PPA)

with the same agency and therefore embarked upon further expansion through
phase III, in 2006-07 comprising 2x660 MW units, taking the capacity of
51
Mundra Power Projects to 1980 MW (660+1320).
In the year 2009 the firm started 330 MW thermal power generation. The
capacity of Mundra Power Projects was further increased by 3x660 MW units
that were commissioned in 2010-11 making Mundra Power Project as the
biggest TPS at a single location. As the firm achieved 3960 MW capacity in
2011-12, it became the largest private sector thermal power producer in India.
The demand for power was increasing in neighbouring states as in rest of the
country. APL, therefore, decided in 2006-07 itself to set up a grass root power
at Tiroda, district. Gondia in neighbouring Maharashtra state around the same
time, (as phase IV) by putting up a 2000 MW power project, for which it
formed a subsidiary company Adani Power Maharashtra Pvt. Ltd. Likewise
the company entered into an agreement with government of Rajasthan to set
up a subsidiary company Adani Power Rajasthan Ltd. for putting up a 1320
MW thermal power plant in Rajasthan.
In 2014, Adani Power emerged as India’s largest private power

producer.[8] Adani Power's total installed capacity now stood at 8,620 MW
including 40 MW, solar power plant, India’s largest.
Adani Power also planned in 2011 to set up a 2640 mw (4x660) power plant
at Dahej in Bharuch district of Gujrat through a sibsidiary Adani Power Dehaj
Ltd., which was expected to be commissioned 2015. It also set up another fully
owned subsidiary Adani Pench Power Ltd. to set up 1320 MW thermal power
station at Chaunsara Madhya Pradesh. Another subsidiary Kutchch Power
Generation Co. was formed to set up a 3300 MW (5x660) power plant at
Bhadrashwar in Kutchh district of Gujrat state.
For selling power to electrical utilities, APL adopted two methods, one through
Power Purchase Agreements (PPA) and the other on Merchant Basis. For
example, Adani Rajasthan Private Ltd. sold 1000 MW under PPA and balance
on Merchant basis. Overall, out of the total 8620 MW of installed capacity in
2013, PPAs were entered into for sale of about 70% of the installed capacity
52
and balance was to be sold on Merchant basis. Under PPA the power generated
is to be sold on a rate predetermined by the concerned regulatory authorities.
For sale on Merchant basis, APL was free to quote a rate on daily basis which
was open to acceptance by utilities and others seeking power. It was like open
market sale of share in stock exchanges.
Besides these above 5 power generation companies Adani Power also had 8
other subsidiary companies.
1. Mundra Power SEZ Ltd.

2. Adani Power Pvt. Ltd. Singapore and
3. Adani Power Overseas Ltd. UAE.
4. Adani shipping private Ltd. Singapore (having 4 subsidiary companies.
(a) Rahi Shipping Pvt. Ltd. Singapore

(b) Vanshi Shipping Pvt. Ltd. Singapore
(c) Aanya Maritime Inc. Panama
(d) Aashma Maritime Inc. Panama.
However, the year 2012-13, the first three companies were closed and the 4 th,
with its subsidiaries was fully disinvested.
Coal Supply Activities
The coal requirements of Mundra Power plant was to be met through a

imported Coal. The parent company, AEL had bought coal mines in South
Africa, Indonesia and Australia. By 2006, the company became the largest
coal importer in India with 11 MT of coal handling
For supply of coal to Rajasthan Power Plants the company entered into a joint
venture agreement with RRVUNL (which was allocated Parsa East and Kanta
Basin Coal block in Chhattisgarh district (with coal Reserves of 360 MT) with
APL equity interest being 75% The JV company, called Parse Kanta Calleries
Ltd., was to develop and operate mines in the allocated blocks and supply to
53
the power stations. The mining operations commenced in financial year 2012-
13.
AEL had also entered into mining service agreement with Mahaguj Colleries
Ltd. (a JV of Maharashtra and Gujrat governments) for development of
Machhakota Coal block (1200 MT) in Orissa, and supply coal to designated
Thermal Power Plants which were allotted to power generation companies of
the two states. The project activities were at advanced stage in the year 2013-
14.
Besides the above coal supply activities for supplying coal to APL plants, the
parent company had also engaged in two other mine development and
operations agreements for supplying coal to other thermal power stations.
The first one was a joint venture with Chhattisgarh state power generating
company Ltd. (CSPGCL) which was allocated Parsa Captive coal block. The
joint venture company CSPGCL AEL Parse Collieries Ltd. (360 MT), in which
parent company had 49% equity interest, was to develop and operate the Parsa
Coal block and transport coal to Marwa Thermal power station of Chattisgarh.
The second was a Mine Developer and Operator agreement with UCM coal
company, which was a joint venture company promoted by Uttar Pradesh
Vidyut Utpadan Nigam Ltd., Chattisgarh Mineral Dev. Corporation and
Maharashtra State Power Generation company Ltd. (Mahegenco), AEL was to
develop and operate Chandipoda I & II Coal blocks (1589 MT) allocated to
companies.
Besides all the above direct linkage to power stations for helping domestic
supply through captive coal block, the parent company. AEL also engaged in
arranging supply of coal to other power generating companies through imports
from Indonesia (where it owned mines with coal reserves 270 MMT) and
South Africa from also through long term arrangement suppliers from South
Africa. For example Adani Enterprises also supplies coal to NTPC
54
As the demand of coal for thermal power stations was increasing rapidly, the
company expanded its coal business in 2008 as it bought Bunyu Mine in
Indonesia having 180 million MT of coal reserves. In August 2014, the
company won the Carmachel Coal mining contract in Australia (with estimated
coal reserves of approximately 10150 MMT), at a cost of about U.S.$ 15.5 Bn
(over Rs. 90000 cr), through international bidding. The coal fields there were
considered to be most challenging and highly risky ones by many industry
experts in Australia.Adani group became India's largest private coal mining
company after Adani Enterprises bagged Orissa mine rights.[20]
Overall the company had a CAGR of 33% from 2005 to 2013 in Coal trading,
through cost effective shipping and logistics management and outsourcing
network. It had 60% markets share in Coal trading and met 40% of the
imported coal demand in the year 2012-13.
Power Transmission Business
To evacuate power from generating stations and transfer to desired nodal

points on the national grid, a subsidiary of AEL, Adani Power Ltd. (APL)
undertook the task of laying High Voltage Transmission Lines. Three such
transmission lines were commissioned between 2010 and 2013. A 400 km long
400 KV double circuit line connected Mundra Power Station to transmit 1000
MW power to Power Grid Corporation of India (PGCIL) sub-station at
Dahegam, Gandhi Nagar, Gujrat. Another 1000 km long 500 KV HVDC line
connected Mundra Power station to Mahendragarh, Haryana to transmit 2500
MW power. The third 400 KV 200 km long line transmission line connected
Tiroda power plant to transfer 2000 MW power to Warora, Maharashtra.
Another 1290 km single circuit 765 KV line was being developed to transfer
power from Tiroda to Aurangabad, Maharashtra.
By the year ending March 2013, in a short period of 3 years APL had
commissioned 1633 km transmission line at a cost of close to Rs. 2500 crs.
The total investment in gross fixed assets of power generation and transmission
stood at close to Rs. 25000 cr.s including about Rs. Rs. 250 crores in 40 MW
55
solar power station, the largest one in the country till date. Besides there was
investment in Dahej and Kutchch Power stations, work on which had started.
Unlike some other private companies, APL did not enter power distribution
business.
Port and SEZ Business
With export business reaching peak in late 1990s, the Adani group thought of
creating Mundra Port under the name Gujrat Adani Port Ltd.(GAPL) in
October 1998. As mentioned in the opening paragraphs, the entry into port and
SEZ business was a chance occurrence. The commercial operations of Mundra
port started in 2001. In 2002, Adani handled 4 million MT of cargo at Mundra,
becoming the largest private port in India..[6]
The Port business expanded with formation of Adani Petronet Port Pvt. Ltd., a
74% JV with Petronet Ltd. to develop another port at Dahej, Gujrat which
became operational in the year 2011 with 20 MT handling capacity. Further in
the same year, the Adani group also bought Abbot Point port in Australia with
50 million MT of handling capacity.[7] It also commissioned 60 MT handling
capacity terminal for imported coalat Mundra, making it the world’s largest.
Handling 82.13 MT of cargo, Mundra port, the largest non-major port in
India, it ranked 2nd in 2012-13 in terms of handling total cargo and container
among all major and non- major ports.
In the next step APSEZ entered into partnership with Hazira Port Ltd. through
a step down subsidiary Hazira Port Private Ltd. which could handle LNG and
other commodities like Coal. The company also created a 100% equity step
down subsidiary Hazira Road Infrastructure Private Ltd.
Besides, APSEZ also moved to other parts of the country to have all India
presence, by acquiring terminals at two places. One, in Marmugao, Goa, by
forming a 74% equity stake JV with Marmugaon Port Ltd., (under the name
Adani Marmugaon Port Pvt. Ltd.- AMPPL). The other terminal was at Vizag,
managed through Adani Vizag Port Terminal Pvt. Ltd. (AVPTPL) to handle
56
imported coal. The terminal had a total handling capacity of 6.4 MT imported
coal per annum. Facilities were also being developed at Kandla port.
Mundra Port, the flagship port of Adani Ports and SEZ Ltd. (APSEZL),
achieved a new landmark of handling 100 million metric tonnes in FY 13-
14,being the only commercial port in India to have achieved such a unique
feat.
On May 16, 2014, Adani Ports acquired Dhamra Port on East coast of India
for Rs 5,500 crore.[11] Dhamra Port, which was a 50:50joint venture between
Tata Steel and L&T Infrastructure Development Projects. The port had
commenced operations in May 2011 and handled a total cargo of 14.3 MT in
2013-14..[12]. The acquisition of Dhamra port was expected to help the
company ramp up its capacity to over 200 MT by 2020, making it a leader
among private sector port operators in the country.[13][14]
In all there Adani Group’s port operations covered the following 8 ports.
 Adani Mundra Port

 Adani Hazira Port[15]
 Adani Murmugoa Coal Terminal[16]
 Adani Vizag Coal Terminal Pvt. Ltd.[17]
 Adani Petronet Port Pvt. Ltd. (Dahej)[18]
 Adani Kandala Bulk Terminal Pvt. Ltd.[19]
 Adani Dhamra Port
 Adani Ennore Port
The port services included marine, intra-port transport, storage and handling,
other value added and evacuation services for diverse range of customers,
primarily the terminal operators, shipping line and agents, exporters, importers
and other port users.
Besides these initiatives, APSEZ also had a multi commodity Adani

International container Terminal Pvt. Ltd. at Mundra, a 50:50 JV with CMA
57
CGM group of France with capacity of 5.5 million TEUs.
SEZ Activities
As the commercial activities increased the company saw an opportunity to

create a special economic zone (SEZ), which the government of India and
Gujrat government encouraged. Mundra SEZ (MSEZ) was thus launched in
2003 to develop an expansive SEZ, spread over around 3000 hectares, which
Gujrat government acquired and allotted to MSEZ for the purpose. In the year
2006 GAPL and MSEZ were merged to form Adani Port and SEZ Ltd.
(APSEZ).
Mundra SEZ developed robust infrastructure over 3000 hectare of land for
supporting industrial development at Mundra, which is largest multiproduct,
port based SEZ, which facilitated twelve other companies (listed below) to
start exports operations.
 Ahistom Fiber Composites (I) Pvt Ltd

 Aadi Group - Aadi Oil Pvt Ltd
 Empezar Logistics Pvt Ltd
 Avesta Process Equipment & Modular Avesta Engineering
 Ashapura Garments Ltd
 Terram Geosynthetics Pvt Ltd
 Theramax Ltd (SEZ unit)
 Skaps Industries
 Oilfield Warehouses & Services
 Dorf Ketal Speciality Catalyst Pvt Ltd
 Anjani Udyog Pvt Ltd
 Oriental Carbon Chemicals Ltd
To facilitate their working, APSEZ had sevral subsidiaries namely; Adani

Logistics Ltd., Mundra Utilities Pvt. Ltd. Adani Infrastucture Pvt. Ltd, Mundra
International Aviation Private Ltd. Adani Warehousing Services Private Ltd.
Adani Aviation Ltd, all 100% equity stake step down subsidiaries of APSEZ.
58
Exports from SEZ units began in 2006-07 with Rs. 7.67 cr. and had reached
Rs. 1992 cr. In 2013-14
APSEZ also launched Rajasthan SEZ Pvt. Ltd. in 2009, but disinvested in
2012-13 along with some other subsidiary companies.
Besides the above, APSEZ also had 5 other operations through two 100% step
down subsidiaries in Australia. One, Adani Abbot Point Holding Terminal Pty
Ltd., which had a 100% stake Adani Abbot Point Terminal Pty Ltd. The other
was Mundra Port Property Ltd., which had two 100% stake step down
subsidiaries; namely Mundra Port Holding Pty Ltd. and Mundra Port Holding
Trust.These five operations however were disinvested in 2012-13.
Finally, the APSEZ also had a pioneering Mundra Textile Apparel Park as a
74% stake JV with parent company AEL.
By the above operations the APSEZ emerged as the largest private port
company handling 112.6 MT of multi-commodity cargo in the year 2014,
which was expected to cross 200 MT by the year 2020.
Edible Oil and Agro-Commodity Trading

.
In view of increasing shortage of edible oils in India, AEL entered into
soyabean edible oil refining business in the year 2000, through 50:50 JV with
Wilmar Group of Singapore, which expanded to cover other edible oils like
sunflower, ground nut and mustard etc. Of late it included Rice bran oil. The
company also expanded to cover trading in Basmati Rice.
Adani Wilmar ranked no.1 cooking oil company for over a decade ending
2012-13 as per Neison RSA report, which also ranked Adani Wilmar as 12th
Largest FMCG company. The company owned 85 stock points and had 5000
distributors, catering to over 1 mn outlets in 2012-13. The company also had a
landmark record of 1 lac metric tonne of packed oil sales in a single month.
59
AEL also entered into fresh fruit business through a wholly owned subsidiary
Adani Agri Fresh Ltd., which developed an integrated network collection,
storage, handling and transportation of agri-produce (mainly apple).
Controlled atmosphere storage facilities were set up at three locations in
Himachal Pradesh, with a combined capacity of 12000 metric tonnes.
The company also set up marketing network in major towns in India to cater
to needs of wholesale, cash and carry as well as organized retail customers.
Marking Indian fruits under brand name “Farm-Pick”, the company expanded
fruit prints in branded fruits segment and was giving competition to imported
apples. The company also imported Apple, Peer, Kiwi, Orange etc. to
supplement its basket for sales in India.
With the expertise gained in bulk handling, storage and transportation of agri-
products, the company set up Adani Agro-Logistics Ltd. in 2007, which
entered into 20 years’ service agreement with Food Corporation of India for
bulk food grain handling, storage and transportation on Build, Own and
Operate basis. The company had seven storage facilities in Maharashtra, West
Bengal, Karnataka and Tamil Nadu and Haryana states, with a total capacity
to handle 5.5 lac MT in2012-13.
Real Estate Business
With enormous construction activities going on in Mundra with the work of

setting up Port and SEZ, the group started engaging in other related
construction activities like residential complexes etc. with the formation of
Adani Infrastructure Developer Private Ltd. (AIDPL) in the year 2006. This
activity itself grew in a significant business activity, with close to 20 step-down
subsidiaries handling various projects. While the activity increased, it also
started consuming significant managerial time without contributing
significantly to the bottom line. AEL therefore decided to disinvest all the 20
subsidiaries in the year 2012-13 alongside other subsidiaries as described in
preceding pages.
60
The offloading of its holding was expected to create more liquidity for Adani
Group’s core business such as coal, power and ports. “The proposal to divest
holding in the real estate business is subject to requisite approvals and
clearances,” AEL executive director Devang Desai said. “The move will
infuse additional liquidity in the company. We would be able to focus on our
core businesses.” AEL, through AIDL, has so far invested Rs 2,000 cr for
various realty projects (both residential and commercial) located in Mumbai
and Gurgaon (off Delhi), besides this city. “We may consider total exit from
the whole portfolio of our real estate projects, including Mumbai. The real
estate business has a negligible share in our total revenues,” informed Desai,
who was also CFO of the group.
City Gas Distribution
The company had undertaken city gas distribution through its wholly owned
subsidiary Adani Gas Ltd., which had 63 CNG stations in the city of
Ahmedabad, Vadodara and Faridabad. By the year 201, the company had
approximately 400 km of steel pipelines and 4100 km of polyethylene
pipelines, spread across Ahmedabad and Vadodara in Gujrat; Faridabad in
Haryana; NOIDA, Khurja and Lucknow in Uttar Pradesh and Jaipur and
Udaipur in Rajasthan state. Through this network the company was serving
850 industrial units, 178000 households and 1300 commercial units in these
cities.
Questions
Q1. Evaluate the performance of the company. What are the achievements of
Adani Group?
Q2. How many businesses the company has in its portfolio? Should the
company have gone for unrelated diversifications? To what extent it
makes the company vulnerable?
Q3. Is the company vertically integrated? Is it desirable? Does it make the
company vulnerable?
Q5. To what extent the performance is attributable to government policies?
61
Which other factors may be contributing to company’s performance?
What may be long term wider ramifications of it?
Q6. If you were Mr. Gautum Adani, what way you would like to shape the
company in the next five years.
62
Adani Enterprises Ltd.
Exhibit 1
Performance of the Company Over the Years
2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013-
05 06 07 08 09 10 11 12 13 14
SALES &
15008 12343 16953 19649 26273 26019 26827 39356 46462 55067
OTHER INCOME
PBIT 144 174 229 433 584 1068 3273 4322 3711 5873
Int. Expense 604 634 1826 3493 5351
PAT 122 135 173 370 505 919 2476 2020 1218 2646
Assets 1593 2227 5534 8726 15632 25398 55104 106997 111919 118254
Shareholders’
743 853 1151 2125 3019 6038 17514 19362 21286 23757
Funds
Share Capital 23 23 25 25 25 50 110 110 110 110
Loan Funds 844 1366 4533 6211 12084 17439 32763 48894 48850 49584
Forex earning 10852 2739 3696 6057 6998 4743 2171 3195 2371
Forex spending 10192 5229 5033 6911 11301 19649 17963 17117 23666
Net Forex Earnings 660 -2491 -1337 -854 -4303 -14906 -15792 -13922 -21295
Segmental Performance
Sales & Operating Real

Income Trading Power Port Agro Estate Others Total
2013-14 20470 15922 3583 9312 5780 55067
2012-13 20434 6742 3621 9888 2 5775 46462
2011-12 18399 4081 2774 8293 185 5624 39356
2010-11 15050 2135 1619 5862 4 1735 26405
2009-10 20371 435 3468 84 1532 25890
Real
EBIT Trading Power Port Agro Estate Others Total
2013-14 526 2515 2443 136 251 5873
2012-13 2258 -394 3018 272 105 240 5498
2011-12 1745 863 1622 135 -4 -40 4322
2010-11 1473 1034 1167 126 -2 109 3907
2009-10 1254 234 78 37 67 1671
EBIT/ Sales & Optg. Real
Income Ratiio Trading Power Port Agro Estate Others Total
2013-14 2.6% 15.8% 68.2% 1.5% 4.3% 10.7%
2012-13 11.1% -5.8% 83.3% 2.7% 4585% 4.2% 11.8%
2011-12 9.5% 21.2% 58.5% 1.6% -2.0% -0.7% 11.0%
2010-11 9.8% 48.4% 72.1% 2.2% -50.9% 6.3% 14.8%
2009-10 6.2% 53.9% 2.3% 44.1% 4.4% 6.5%
63
64
Exhibit 2
Companies in the Group 2011-12
Sr. Name of Company / firm Country of Relationship Shareholding as at Shareholding as at

No. Incorporation 31.3.2013 31.3.2012
1 Adani Global Ltd. (AGL) Mauritius Subsidiary 100% by AEL 100% by AEL
2 Adani Global FZE (AGFZE) U.A.E. Subsidiary 100% by AGL 100% by AGL
3 Adani Global Pte Ltd. (AGPTE) Singapore Subsidiary 100% by AGL 100% by AGL
4 Adani Agri Fresh Ltd ( AAFL) India Subsidiary 100% by AEL 100% by AEL
5 Adani Agri Logistics Ltd (AALL) India Subsidiary 100% by AEL 100% by AEL
6 Adani Energy Ltd. (AENL) India Subsidiary 100% by AEL 100% by AEL
7 Adani Gas Ltd. (AGASL) India Subsidiary 100% by AEL 100% by AEL
8 Adani Infra (India) Ltd. (AIIL) India Subsidiary 100% by AEL 100% by AEL
9 Miraj Impex Pvt.Ltd.(MIPL) India Subsidiary 100% by AEL 100% by AEL
Adani Shipping (India) Pvt.
10 Ltd.(ASIPL) India Subsidiary 100% by AEL 100% by AEL
11 Mundra LNG Ltd.(MLNGL) India Subsidiary 100% by AEL 100% by AEL
12 Maharashtra Eastern Grid Power India Subsidiary 100% by AEL 100% by AEL
Transmission Company Ltd.
(MEGPTCL)
Chendipada Collieries Pvt.
13 Ltd.(CCPL) India Subsidiary 100% by AEL 100% by AEL
14 Natural Growers Pvt. Ltd. (NGPL) India Subsidiary 100% by AEL 100% by AEL
15 Adani Mining Pvt.Ltd.(AMPL) India Subsidiary 100 % by AEL 100 % by AEL
16 Mahaguj Power Ltd. (MGPL) India Subsidiary 100% by AMPL 100% by AMPL
Sarguja Rail Corridor Pvt. Ltd.
17 (SRCPL) India Subsidiary 100% by AMPL 100% by AMPL
18 Adani Mining Pty Ltd (AMPTY) Australia Subsidiary 100% by AGPTE 100% by AGPTE
19 Parsa Kente Collieries Ltd. (PKCL) India Subsidiary 74% by AEL 74% by AEL
20 Surguja Power Pvt. Ltd. (SPPL) India Subsidiary 100% by AMPL 100% by AMPL
21 Adani Resources Pvt. Ltd. (ARPL) India Subsidiary 100% by AMPL 100% by AMPL
Adani Minerals Pty. Ltd.
22 (AMRLPTY) Australia Subsidiary 100% by AGPTE 100% by AGPTE
23 Adani Chendipada Mining Pvt. Ltd.
(ACMPL) India Subsidiary 100% by AMPL 100% by AMPL
24 Rajasthan Collieries Ltd. (RCL) India Subsidiary 100% of AEL 100% of AEL
Adani Welspun Exploration
25 Ltd.(AWEL) India Subsidiary 65% by AEL 65% by AEL
26 AWEL Global Ltd. (AWELGL) UAE Subsidiary 100% AWEL 100% AWEL
27 Chemoil Adani Pte. Ltd. (CAPTE) Singapore Subsidiary 51% by AGL 51% by AGL
28 Chemoil Adani Pvt. Ltd. (CAPL) India Subsidiary 100% by CAPTE 100% by CAPTE
29 Adani Wilmar Pte Ltd.(AWPTE) * Singapore JV 50% by AGPTE 50% by AGPTE
30 Adani Renewable Energy LLP India LLP - 99% by AEL,
(ARELLP) (Upto 08.01.2013) 1% by APL
31 Adani Power Ltd. (APL) India Subsidiary 63.99% by AEL 70.25% by AEL
Adani Power Maharashtra Ltd.
32 (APML) India Subsidiary 100% by APL 74% by APL
33 Adani Power Rajasthan Ltd. (APRL) India Subsidiary 100% by APL 100% by APL
34 Adani Pench Power Ltd. (APPL) India Subsidiary 100% by APL 100% by APL
35 Adani Power Dahej Ltd. (APDL) India Subsidiary 100% by APL 100% by APL
36 Mundra Power SEZ Ltd. (MSEZL) India Subsidiary - 100% by APL
(Upto 28.02.2013 )
65
37 Adani Power (Overseas) Ltd. (APOL) UAE Subsidiary - 100% by APL
(Upto 31.12.2012 )
38 Adani Power Pte Ltd. (APPTE) Singapore Subsidiary - 100% by APL
(Upto 06.12.2012 )
Kutchh Power Generation Ltd.
39 (KPGL) India Subsidiary 100% by APL 100% by APL
40 Adani Shipping Pte Ltd.(ASPL) Singapore Subsidiary 100% by AGPTE 100% by APL
41 Rahi Shipping Pte. Ltd. (RS PTE) Singapore Subsidiary 100% by ASPL 100% by ASPL
42 Vanshi Shipping Pte. Ltd.(VS PTE) Singapore Subsidiary 100% by ASPL 100% by ASPL
43 Aanya Maritime Inc. (AANMINC) Panama Subsidiary 100% by ASPL 100% by ASPL
44 Aashna Maritime Inc. (AASMINC) Panama Subsidiary 100% by ASPL 100% by ASPL
45 Adani Infrastructure and Developers India Subsidiary - 100% by AEL
Pvt Ltd. (AIDPL) (Upto 29.06.2012 )
46 Adani Estates Pvt. Ltd (AEPL) India Subsidiary - 100% by AIDPL
(Upto 29.06.2012 )
47 Swayam Realtors & Traders Ltd. India Subsidiary - 60% by AIDPL
(SRTL) (Upto 29.06.2012 )
48 Columbia Chrome (India) Pvt. Ltd. India Subsidiary - 60% by AIDPL
(CCPL) (Upto 29.06.2012 )
49 Adani Developers Pvt Ltd.(ADPL) India Subsidiary - 100% by AIDPL
(Upto 29.06.2012 )
50 Adani Land Developers Pvt Ltd. India Subsidiary - 100% by AIDPL
(ALDPL) (Upto 29.06.2012 )
51 Adani Landscapes Pvt Ltd.(ALPL) India Subsidiary - 100% by AIDPL
(Upto 29.06.2012 )
52 Adani Mundra SEZ Infrastructure Pvt. India Subsidiary - 100% by AIDPL
Ltd. (AMSEZ)(Upto 29.06.2012 )
53 Lushgreen Landscapes Pvt. Ltd. India Subsidiary - 100% by AIDPL
(LLPL) (Upto 29.06.2012 )
54 Jade Food and Properties Pvt. Ltd. India Subsidiary - 100% by AIDPL
(JFPL) (Upto 29.06.2012 )
55 Jade Agri Land Pvt. Ltd.(JALPL) India Subsidiary - 100% by AIDPL
(Upto 29.06.2012 )
56 Jade Agricultural Co. Pvt. Ltd. India Subsidiary - 100% by AIDPL
(JACPL) (Upto 29.06.2012 )
57 Rajendra Agri Trade Pvt Ltd India Subsidiary - 100% by AIDPL
(RATPL) (Upto 29.06.2012 )
58 Rohit Agri Trade Pvt Ltd (RTPL) India Subsidiary - 100% by AIDPL
(Upto 29.06.2012 )
59 Aaloka Real Estate Pvt. Ltd. India Subsidiary - 100% by AIDPL
(AREPL) (Upto 29.06.2012 )
60 Shantigram Estate Management India Subsidiary - 100% by AIDPL
Pvt. Ltd. (SEMPL) (Upto 29.06.2012 )
61 Shantigram Utility Services Pvt Ltd India Subsidiary - 100 % by SEMPL
(SUSPL) (Upto 29.06.2012 )
62 Belvedere Golf and Country Club India Subsidiary - 100 % by SEMPL
Pvt Ltd (BGPL) (Upto 29.06.2012 )
63 Panchdhara Agro Farms Pvt. Ltd. India Subsidiary - 100% by SEMPL
(PAFPL) (Upto 29.06.2012 )
64 M/s AdaniTownship And Real Estate India Partnership - 75% by ALDPL
Co.(ATRECO). (Upto 29.06.2012 )
65 Adani M2K Projects LLP (AMPLLP) India LLP - 50% by AIDPL
(Upto 29.06.2012 )
66 PT Adani Global (PT AG) Indonesia Subsidiary 95% by AGPTE, 95% by AGPTE,
66
5 % by AGL 5 % by AGL
67 PT Adani Global Coal Trading Indonesia Subsidiary 95% by AGPTE, 95% by AGPTE,
(PT AGCT) 5 % by AGL 5 % by AGL
99.33% by
68 PT Coal Indonesia (PT CI) Indonesia Subsidiary PTAGL, 99.33% by PTAGL,
0.67% by
PTAGCT 0.67% by PTAGCT
99.33% by
69 PT Mundra Coal (PT MC) Indonesia Subsidiary PTAGL, 99.33% by PTAGL,
0.67% by
99.33% by
70 PT Sumber Bara (PT SB) Indonesia Subsidiary PTAGL, 99.33% by PTAGL,
0.67% by
99.33% by
71 PT Energy Resources (PT ER) Indonesia Subsidiary PTAGL, 99.33% by PTAGL,
0.67% by
72 PT Sumber Dana Usaha (PT SDU) Indonesia Subsidiary 75% by PTCI, 75% by PTCI,
25% by PTSJ 25% by PTSJ
73 PT Setara Jasa (PT SJ) Indonesia Subsidiary 75% by PTCI, 75% by PTCI,
25% by PTMC 25% by PTMC
74 PT Niaga Antar Bangsa (PT NAB) Indonesia Subsidiary 75% by PTSB, 75% by PTSB,
25% by PTER 25% by PTER
75 PT Niaga Lintas Samudra (PT NLS) Indonesia Subsidiary 75% by PTSB, 75% by PTSB,
25% by PTER 25% by PTER
76 PT Andalas Bumi Persada (PT ABP) Indonesia Subsidiary - 75% by PTSDU,
(Upto 14.09.2012 ) 25% by PTSJ
77 PT Citra Persada Luhur (PT CPL) Indonesia Subsidiary - 75% by PTSDU,
(Upto 24.09.2012 ) 25% by PTSJ
PT Gemilang Pusaka Pertiwi (PT
78 GPP) Indonesia Subsidiary 75% by PTSDU, 75% by PTSDU,
79 PT Hasta Mundra (PT HM) Indonesia Subsidiary 75% by PTSDU, 75% by PTSDU,
80 PT Kapuas Coal Mining (PT KCM) Indonesia Subsidiary - 87% by PTSDU,
(Upto 08.10.2012 ) 10% by PDPT,
81 PT Karya Pernitis Sejati (PT KPS) Indonesia Subsidiary 75% byPTSDU, 75% by PTSDU,
82 PT Lamindo Inter Multikon (PT LIM) Indonesia Subsidiary 75% by PTNAB, 75% by PTNAB,
25% by PTNLS 25% by PTNLS
74.97% by
83 PT Mitra Naiga Mulia (PT MNM) Indonesia Subsidiary PTNAB, 74.97% by PTNAB,
25.03% by PTNLS 25.03% by PTNLS
84 PT Pahala Buana Abadi (PT PBA) Indonesia Subsidiary - 75% by PTSDU,
(Upto 14.09.2012 ) 25% by PTSJ
85 PT Sumber Bumi Lestari (PT SBL) Indonesia Subsidiary - 75% by PTSDU,
(Upto 18.09.2012 ) 25% by PTSJ
86 PT Suar Harapan Bangsa (PT SHB) Indonesia Subsidiary 75% by PTSDU, 75% by PTSDU,
87 PT Tambang Sejahtera Bersama Indonesia Subsidiary 75% by PTSDU, 75% by PTSDU,
(PT TSB) 25% by PTSJ 25% by PTSJ
88 PT Adani Sumselon (PT AS) Indonesia Subsidiary 98% by PTAGL 98% by PTAGL
67
89 AdaniPorts and Special Economic India Subsidiary 77.49% by AEL 77.49% by AEL
Zone Ltd. (APSEZL)
51.41% by
APSEZL,51.41%
90 Mundra SEZ Textile and Apparel India Subsidiary by APSEZL,
Park Pvt. Ltd. (MSTAPL) 5.57% by ALL 5.57% by ALL,
7.39% by AEL 7.39% by AEL,
91 Karnavati Aviation Pvt. Ltd. (KAPL) India Subsidiary 100% by APSEZL 100% by APSEZL
92 MPSEZ Utilities Pvt. Ltd. (MUPL) India Subsidiary 100% by APSEZL 100% by APSEZL
93 Rajasthan SEZ Pvt. Ltd. (RSPL) India Subsidiary - 100% by APSEZL
(Upto 20.10.2012 )
94 Adani Logistics Ltd. (ALL) India Subsidiary 100% by APSEZL 100% by APSEZL
95 Mundra International Airport Pvt. Ltd. India Subsidiary 100% by APSEZL 100% by APSEZL
(MIAPL)
96 AdaniMurmugaoPort Terminal India Subsidiary 74% by APSEZL, 74% by APSEZL,
Pvt. Ltd. (AMPTPL) 26% by AEL 26% by AEL
97 Adani Hazira Port Pvt. Ltd. India Subsidiary 100% by APSEZL 100% by APSEZL
98 Adani Petronet (Dahej) Port Pvt. Ltd. India Subsidiary 74% by APSEZL 74% by APSEZL
(APDPPL)
99 Hazira Infrastructure Pvt. Ltd. (HIPL) India Subsidiary 100% by APSEZL 100% by APSEZL
100 Hazira Road Infrastructure Pvt. Ltd. India Subsidiary 100% by AHPPL 100% by AHPPL
(HRIPL)
101 Adani Vizag Coal Terminal Pvt. Ltd. India Subsidiary 100% by APSEZL 100% by APSEZL
(AVCTL)
102 Adani International Container India JV 50% by APSEZL 100% by APSEZL
Terminal Pvt. Ltd.(AICTPL) 1% by AEL#
103 Adani Abbot Point Terminal Pty Ltd. Australia Subsidiary - 100% by
(AAPTPTY) (Upto 30.03.2013) AAPTHPTY
104 Mundra Port Pty Ltd. (MPPTY) Australia Subsidiary - 100% by APSEZL
(Upto 30.03.2013)
105 Mundra Port Holdings Pty Ltd Australia Subsidiary - 100% by MPPTY
(MPHPTY) (Upto 30.03.2013)
106 Adani Abbot Point Terminal Holdings Australia Subsidiary - 100% by APSEZL
Pty Ltd.(AAPTHPTY)
(Upto 30.03.2013)
107 Adani Kandla Bulk Terminal Pvt. Ltd. India Subsidiary 51% by APSEZL, 51% by APSEZL,
(AKBTPL) 49% by AEL 49% by AEL
Adinath Polyfills Pvt. Ltd.
108 (ADIPOLPL) India Subsidiary 100% by APSEZL 100% by APSEZL
109 MundraPort Holding Trust (MPHT) Australia Subsidiary - 100% MPPTY
(Upto 30.03.2013)
110 Adani Warehousing Services Pvt. Ltd India Subsidiary 100% by APSEZL -
(AWSPL) (w.e.f. 19.04.2012)
Galilee Transmission Holdings Pty
111 Ltd Australia Subsidiary 100% by AMPTY -
(GTHPL) (w.e.f. 17.01.2013)
Galilee Transmission Pty Ltd ( GTPL
112 ) Australia Subsidiary 100% by GTHPL -
(w.e.f. 17.01.2013)
113 Galilee Transmission Holdings Trust Australia Subsidiary 100% by GTPL -
(GTHT) (w.e.f. 17.01.2013)
114 CSPGCL AEL Parsa Collieries Ltd India JV 49% by AEL 49% by AEL
68
115 Adani Wilmar Ltd. (AWL) India JV 50% by AEL 50% by AEL
116 Rajshri Packagers Ltd. (RPL) (Merged India JV - 100% by AWL
with AWL w.e.f 19.05.2012) JV
117 Vishakha Polyfab Pvt. Ltd.(VPPL) India JV 50% by AWL 50% by AWL
118 Satya Sai Agroils Pvt. Ltd.(SAPL) India JV 100% by AWL 100% by AWL
119 M/s.Vishakha Industries ( VI , FIRM) India JV 50% by AAFL 50% by AAFL
120 Acalmar Oil and Fats Ltd. (AOFL) India JV - 100% by AWL
(Merged with AWL w.e.f 19.05.2012)
121 Krishnapatnam Oils and Fats Pvt. Ltd. India 100% by AWL 75% by AOFL
(KOFPL) JV
122 Varadaraja Agro Industries Pvt. Ltd. India JV 50% by AWL 50% by AOFL
(VAIPL)
123 KTV Health and Foods Pvt. Ltd. India JV 50% by AWL 50% by AOFL
(KHFPL)
124 KOG KTV Food Products (India) Pvt. India JV 50% by AWL 50% by AOFL
Ltd. (KFPIPL)
125 Golden Valley Agrotech Pvt. Ltd. India JV 100% by AWL 100% by AWL
(GVAPL)
126 KTV Oils and Fats Pvt. Ltd. India JV 50% by AWL 50% by AWL
(KTVOFPL)
127 AWN Agro Pvt. Ltd. (AWNAPL) India JV 50% by AWL 50% by AWL
* Reporting date is 31st December, 2012

# AICTPL is consolidated as joint venture as the 1% share held by AEL is temporary and to be
transferred to JV partner.

Exhibit 5
Export and Imports Over the Years
Year Total forex Total forex Net Forex
earnings spending Earnings
1999 1109 452 657
2000 1171 865 306
2001 988 1023 -35
2002 870 1412 -542
2003 387 1554 -1168
2004 4882 2935 1947
2005 10852 10192 660
2006 2739 5229 -2491
2007 3696 5033 -1337
2008 6057 6911 -854
2009 6998 11301 -4303
2010 4743 19649 -14906
2011 2171 17963 -15792
2012 3195 17117 -13922
2013 2371 23666 -21295
2014
69
Source CMIE Prowess Data base updated up to 24.9.2014
2002 2009 2010 2011 2012 Sheet 3
70
References
1. Fastest of them all, Business Today Nov 11,

2012http://businesstoday.intoday.in/story/bt-500-fastest-growing-
conglomerates/1/189146.html
2. Prowess Database Sept. 22.9.2014
3. Adani breaks into top 10 rich club as wealth jumps 152% Piyush
Pandey, TNN | Sep 17, 2014, 06.41AM IST
http://timesofindia.indiatimes.com/business/india-business/Adani-
breaks-into-top-10-rich-club-as-wealth-jumps-
152/articleshow/42675575.cms
Adani Power Dahej Ltd. http://thermalpower.industry-
focus.net/independent-power-producers/616-adani-power-dahej-ltd-
adani-power-dahej-ltd.html
3 Adani Group Business
http://thepropertytimes.in/index.php/management/press-release/203-
adani-group?showall+&start=3
4. Company History - Adani Enterprises
http://www.moneycontrol.com/company-
facts/adanienterprises/history/AE13
5. Ibid.
6. Ibid
7. Adani Business of Success
http://www.superbrandsindia.com/images/brand_pdf/business_3rd_edi
tion_2011/ADANI.pdf
8. ibid.
9. Company History - Adani Enterprises
http://www.moneycontrol.com/company-
facts/adanienterprises/history/AE13
10. Adani Enterprises Ltd. Annual Report 2012-13
11. Mundra Port and Special Economic Zone Ltd IPO - Chittorgarh
http://www.chittorgarh.com/ipo/mundra_port_ipo/132/
12. Adani Power Issue Oversubscribed 21 Times Saturday,
August 1,
2009http://www.vccircle.com/news/infrastructure/2009/07/31/adan
71
i-power-issue-oversubscribed-21-times
All other data is drawn from annual reports of AEL, APL and APSEZ
72
64 Is Small Beautiful (I)?
(Expansion and Diversifications of Academic Activities)
“While the successive increase in PGP intake came as much due to pressure of
staff agitation and concern for timely faculty promotion, fee rise and other
financial pressures, concern for meeting the growing requirement of high
quality management graduates as entry level managers, the diversification and
expansion of other academic activities came in different ways and for different
reasons” said the Director of IMP institute of Management while describing
the challenges faced in diversification of the academic activities of the
institute.
Challenges Faced by the Institute
IMP was one of the six national level management institutes established by the
government of India. The Institute started with post-graduate programme in
management (PGP) in 1997, with an intake of 47 students. It moved to it own
100 acres campus (spread over two hills) in January 2003, on completion of
Phase I of construction covering class rooms, hostels, faculty block etc.
commensurate with intake 60 students. Phase II of construction was to
complete in 15 months by May 2003. However, the Institute it got delayed
inordinately and by the end of February 2003 only 40% progress was achieved,
with 43 different units, from class rooms, hostels, married students
accommodation, guest house to faculty/ staff houses, in different stages of
progress, from excavation only to casting of ceiling. However, the Institute had
to increase intake to 120 students in July 2003. Without completion of Phase
III construction it looked difficult to grow to take up other activities
meaningfully. The case ISB (C), (D) and (E) describe the challenges in
completion of Phase II of construction and more than doubling of the PGP
______________________________________________________________
Copyright (C) 2013 Ruchi Srivastava, PGDM, Interior Designer, Bangalore,
under the guidance of Dr. Krishna Kumar, former Professor and Dean (AA) of
Indian Institute of Management, Lucknow
73
intake and improving its financial condition, without even commencement of
Phase III of construction. This case describes how the institute simultaneously
diversified to take up other academic activities, even becoming leader in some
of them,
Expansion of FDPs and MDPs
The Institute did not have many management development programmes

(MDPs) and faculty development programmes (FDPs) as it did not have
physical infrastructure and highly experienced faculty members in key
disciplines. The cost of organizing training programmes in hotels was quite
high. Even the boarding and lodging expense could not be recovered from the
registration fees that market could bear.
Another significant disadvantage for MDPs was the location of the institute, in
the southwest corner of the country, with poor rail and air connectivity from
different parts of the country. It would take at least one day each to reach and
return the institute, even b air. Thus a 3-day programme at the institute meant
a weeklong programme for the participating executives. The travel cost was
so high that the travels expenses by air itself would make the total cost double
of registration fee for the company.
The In-company / sponsored MDPs were looked down up on earlier, as it

generated only revenue and surplus (which were not the objectives of the
academic institute). It neither added to faculty development nor lead to major
consulting or literature development, which were possible from participation
of highly experienced group of executives from a diversified set of companies.
The Faculty Development Programme (FDPs)
In the year 2003, at XLRI Convention of the Strategic Management Forum

(SMF), it was decided to start Management Teachers Programme for
74
development of faculty in strategic management discipline. It was thought that
efforts should be made to help faculty members go through at least 6 courses
of 30 class contact hours, in a modular way, so that they can learn the subject
and assimilate it gradually over a period of 2-3 years. The response in the first
such programmes launched in 1996 at IIM Lucknow with 70% participants
being Readers and Professor levels (including some heads of departments,
Chairman MBA etc.) was quite encouraging to engage in similar programmes.
The first two programmes (for which common brochure was printed), were
done at IIM Bangalore and IIM Lucknow in March 2004. The second such set
of programmes was to be conducted in May / June. Somehow IIM Lucknow
programme could not materialize, so it was decided to have it at IMP. The
decision to do it at IMP was based up on the assumption of timely conversion
of the two married students’ hostels into guest houses/ executive hostel (see
Case ISB ‘D’). Indeed, one of the purposes of accepting the programme at
IIMK was also to expedite and complete the construction by a deadline on
which some academic event should take place.
“Surprisingly, the nominations received by deadline far exceeded all the

expectations, twice the newly created accommodation and the expected
number of participants in a normal MDP. Fortunately the room interiors were
designed for double occupancy and the participants could be accommodated.
This response coupled with the attendance in first FDP at IIM Lucknow in
1996 convinced me that there is a large starved market of Management
Teachers at least in SM area”, said the Director..
“The importance of faculty development through MDPs, postdoctoral

empirical and case research, conferences, doctoral programmes, publications
and through collegiate system of learning from conducting regular
Management Teachers Programmes was clear to us. We knew that unlike MDP
participants from industry, for management teachers it made little difference
whether the programmes were 3 days or 6 days. Either they wouldl not be able
to come or they would come for a week long programme. They can plan to
come 2-3 months in advance for attending the programme and hence, coming
75
by train would also not be an issue. They can thus reduce the travel costs
significantly” he concluded.
Pricing was another major issue. On full cost basis a normal weeklong
programme with 20 participants would have been priced around Rs. 15,000-
20,000 in those days, as the following cost figure would show.
For 20 Participants
Boarding and Rs. 1500 p.d Rs. 9000 for 6 Rs. 180000
Lodging days
Course Material Rs. 1000 Rs. 20000
Classroom Rs. 1000 p.d. Rs. 6000 for 6 Rs. 6000
Charges days
Faculty Rs. 12000 p.d. Rs. 72000
Honorarium
Contingency Rs. 20000
Total Rs. 292000
Per Participant Approximately Rs. 15000
The institute thought that Management Teachers Programme were a national

priority. It was therefore decided that about 20% of the guest house
infrastructure be earmarked for FDPs and only out of pocket expenses should
be charged to the participants and no overheads (about 20%) should be applied.
If however, AICTE supported the programme, full costs may be taken for
record purpose.
Since even the limited accommodation in the guest house/ executive hostel
were not fully occupied, as the institute by then was not known as a reputed
training institution (leave alone as FDP institution) it made little sense to go
for full cost for deciding registration fee. Also since the institute was not keen
to give lavish meals and hospitality at the cost of FDPs itself, it kept the
boarding to minimum, at about Rs. 200 a day, which was enough to cover
decent meals and breakfast etc. Since many faculty participants were paying
programme fee from their pocket we were keen keep cost as low as possible.
76
Table 1
Cleaning charges Rs. 18000 Rs. 5000 p.

for 24 rooms in guest p.m. wk.
houses/ executive hostels
“ per room Rs. 200 p.
wk.
Air Conditioning for 8 hrs Rs. 192 p.
@ Rs. 4 per hr per room wk.
Washing of Bed linen/ Rs. 20 p.
pillow cover per room wk.
Tea / Coffee self Service in Rs. 144 p.
Rooms @ Rs. 3 per cup 6 wk.
cups a day
Total Per room per wk. out Rs. 556
of pocket expense
Further, it was thought that FDPs were a service to faculty brotherhood and
also helped own development of the institute faculty (as teaching senior faculty
will help the learning to institute faculty), it was decided not to pay honorarium
for conducting classes or coordinating FDPs. Instead up to½ course credit may
be given for conducting a weeklong programme with 30 contact hours, faculty
taking class could get some credit out of it, but rarely any one asked for it). It
was also felt that when the faculty size increases to about 6 in an area, the
average engagement of a faculty will be just one day in a year which is too
small a factor to determine the conduction of FDPs as an important activity.
The net out of pocket cost per room worked out as shown in table 1
Since participants lived in double occupancy, cost per day per participant came
to about Rs. 300 per week. All in all, out of pocket expenses per participant
77
were not expected to cross Rs. 500 a day.
This dramatically changed the cost structure and average cost came down to
about Rs. 5000/- per participant.
Boarding and Lodging @ Rs. 500 per day Rs.3000

Course Material Rs. 1000
Contingency Rs. 1000
Total Rs. 5000
It was therefore decided to charge Rs. 5000 per participant as registration fee
and encourage larger number of faculty members of management schools in
the country to benefit from FDPs of the institute.
Despite all the above considerations perhaps nothing would have happened.
However one day a trigger for FDPs came from the enthusiastic statement of
a young faculty member. In August 2004, the Director had requested the
Chairpersons of PGP, MDP, IDL (Interactive Distance Learning) and Research
to present their 5 years’ perspective for development in respective areas. Some
highlighted faculty constraints, some focused on incentives, administrative
support etc. and some did not even turn up. The young faculty member (who
had been the first Chairman of IDL programmes a year ago), made a passionate
and bold statement that the institute should conduct at least a dozen FDPs every
year. The director was convinced that the FDPs can take off with a champion
like him. He approached AICTE with the request that the institute may be
considered as FDP center. AICTE agreed and started supporting the activity
with an annual grant of Rs.0.8 mn. Three years later the institute was the only
major QIP center of AICTE in the field of management.
Management Development Programmes (MDPs)
78
With the creation of 24 double occupancy rooms in the three guesthouses/
executive hostels and an improvised classroom conducive for PGP/ MDP/
FDP, there was some physical infrastructure available to try out scaling up
MDPs. The director was wondering whether it is time to create full fledged 50
seater MDP center as envisaged earlier. Would the institute be able to bear the
fixed costs of MDP center. What if the MDP did not pick up? Will the move
overstretch the meager faculty resources, already constrained by scaling up of
PGP intake from 60 in 2002 to 120 in 2003 and to 180 in 2005. Should it go
for sponsored/ In-company MDPs, which ran the risk of diluting faculty rigour
below the level of PGP, as it did not demand the preparation of even PGP
level? The director was concerned on the latter aspect, as some of the senior
institutions had started facing problem pf lack of senior level participants from
industry in open MDPs. Once the sponsored junior level in-company
programmes started, the attraction of revenue and surplus generation for the
institute and attraction of honorarium may lure the institute and faculty to focus
efforts on them and start ignoring even expansion of PGP, leave alone focusing
on higher learning activities of postdoctoral research, doctoral programmes
and meaningful publications, course material development, conferences etc.
On the other hand, it was felt that if the MDPs were not launched on a
reasonable scale, the institute may not be perceived as a management institute
of reckoning, as MDPs were a good avenue for industry interaction and
learning.
The registration fee for open MDPs was kept as rupees twenty Five thousand
for week long (6 days) programmes and rupees fifteen thousand for 3-day
programmes. The programmes were to be done either for 3 days duration or 6
days duration.
The costing for arriving at registration fee was done as given in table 1.
Although the above cost did not cover the full costs in the sense that cost of
building etc. was uncovered but it most of the major cost were covered. In any
case the institute had not created exclusive MDP infrastructure but was only
optimizing the infrastructure created for supporting other activities, which was
79
not fully utilized. It was thought the above was enough to attract the
participants from industry and help the institute have reasonable number of
programmes within the limited infrastructure. The challenge was to ensure 20
or more participants in every programmes to have necessary confidence to
decide when to create cost effective infrastructure for MDP activities, which
was going to be a costly affair.
Table 1
For 20 participants
For 3- For 6- day
day prog. prog.
Boarding Charges Rs. 500 30000 60000
p.d.
Lodging (including Rs. 1500 90000 120000
maintenance, house p.d.
keeping, security
charges etc.
Subtotal 120000 240000
Course Material 20000 40000
Honorarium to Faculty 36000 72000
Total 176000 352000
Institute Overheads 50000 100000
Contingency 40000 40000
Grand Total 266000 492000
Per Head 13300 24600
The sponsored programme were to be accepted only for senior top executives
or for strategic partners of the institute and not unduly encouraged. The basic
guideline for pricing them was same as MDPs with minimum of 20
participants..
The improvised infrastructure allowed the institute to experiment with the open
and sponsored programmes (in a limited way). To ensure against the dilution
80
of standards, the institute restructured and expanded its IDL programme
(increasing their rigour closer to PGP) as also PGP to a level that the MDP
engagement did not dilute faculty rigour significantly. The faculty members
were required to teach at least 3 course credit (out of minimum 6 course credit
annual workload). They could earn through engagement in teaching be it PGP
or IDL programmes at the rate of MDP so that monetary attraction alone would
not attract faculty to MDPs generally. The engagement in IDL programmes
also allowed faculty to interact with industry executives on a formal basis, as
the registration in IDL programmes required a minimum of 3-5 years industry
experience.
The next set of PGP hostels were designed for double occupancy and furnished
like executive hostels with high quality beds, furnishings, sofa sets, attached
toilets, refrigerators etc. (without permitting use of A.C. and refrigerators). The
rooms could be used in summers for conducting MDPs/ FDPs, Conferences
etc. without incurring any extra costs than use of A.C. and refrigerators. Multi
utility hostels/ class rooms augmented capacity for these activities at a low cost
without compromising on quality and at the same time allowed PGP students
to live in better hostels. The institute could conduct FDPs, Conferences etc. at
low cost and at the same time generate higher revenues and surplus by
conducting MDPs.
The MDPs gradually grew in numbers, although with increase in PGP/ IDL
intakes it did not grow phenomenally due to faculty limitations. But the
experiment helped the institute to decide to go for creating a full-fledged 120
Room / 200 Bed MDP complex, which could be used interchangeably for PGP
and other programmes as well, to ensure against underutilization of capacities
created and help cover up all the fixed expenses. It also allowed institute to
expand the Conferences/ Seminars etc. as much as needed, for which costing
of FDPs (discussed earlier) would be used for charging registration fees.
Restructuring of the Interactive Distance Learning (IDL) Programmes
81
The institute had launched a 300 class contact hours Executive Education
Programme (EEP) on IDL platform with HE as technology partner, in the year
2002-03, being one of the pioneers (XLRI was the other institute) in the field.
The objective of the EEP was to help working executives acquire some
management inputs, without going through long duration, fully residential
programmes. The classes were conducted with franchise run centers, the
network spreading to 25+ centers within a short span of 3 years. By 2005 the
IDL platform became quite successful one with growing registration, revenue
and surplus generated. The short duration programmes of 75-90 hours class
contact hours, spread over 6 months or so also became popular with software/
IT industry. Some other senior institutions also started launching similar
programmes. The technology partner seeing a business opportunity also started
pressing for more and more of short duration programme in various subjects
and even topics.
However there was another side of the story. A growing concern, almost
restlessness was developing among some senior faculty members, who
apprehended that the IDL platform and the institute has started drifting from
educational programmes to short duration money spinner MDPs, which would
eventually lead to dramatic dilution of educational standards and academic
standing of the institute. The institute instead of emerging as a renowned
institution of higher learning of international reckoning, through high quality
research, publications, education and top management training, may slide to a
low intellectual level commercial training institute.
The situation became so volatile that the director had to resort to voting to
decide the issue. Marathon discussions and heated arguments in faculty council
finally led to emergence of a new design. The short duration money- spinner
programmes were chopped off to ensure against the dilution of standards of
the academic standards. The 300 hours EEP was made 450 hour, making the
programme the most rigorous one- year programme for working managers.
The requirement for enrollment in the programme was made a minimum of
three years and was to be enforced strictly. The design and conducting
82
responsibility including arranging faculty was to be responsibility of faculty
council.
A three level structure for administration of IDL programme was introduced

on lines of PGP. The faculty council was to take an overall view on the design
and conduction of IDL programmes. The policy governing the same, including
incentive system etc. needed approval by faculty council, which had all the
faculty members as members. The IDL committee would discuss the details of
design and conduction issues. Any new thing or deviation would be first
discussed here, before the issue went to faculty council. Membership of the
Committee was limited to only those faculty members who were willing to
contribute to teaching in the IDL programmes. A faculty member who was not
keen to do so would not be member of the Committee. Lastly, there was an
IDL Executive Committee would handle the day to day matters. The
Chairman, IDL programmes and few nominated members from other areas/
Chairman (Admission) were to constitute this committee. Nominations to the
committee were made by the Director after seeking the views of Chairman
(IDL) programmes. The three-tier structure was put in operation to benefit
from collective wisdom, reduce administrative burden on faculty and stop
unwarranted disturbance by powerful lobbyists among faculty members who
were not keen in contributing to advancement of academic activities approved
by the Board of Governors or thought of sabotaging the same..
Simultaneously different functional areas were allowed to launch

specialization packages of 6-7 courses with 225 class contact hours, spread
over 6 months as independent certificate programme. Later these were to be
integrated with EEP. Those participants who had undergone EEP and any two
specialization certificate programmes, would be given EPGPX diploma, to
make it the most rigorous executive diploma programme through IDL platform
and at the same time differentiating it from regular two year residential PGP
of the institute. Three years later the EPGPX became a well sought after
programme (which one could complete in three years registering for the entire
programme in one go) and it became the only internationally recognized
(AMBA approved) online programme in India in due course.
83
The philosophy behind the restructuring the IDL programme was to cater to
growing needs of working professionals for management inputs through high
quality programmes, who could not detach from their job locations and family
to attend two-years fully residential PGP or alike. The pedagogy and
evaluation system were made more rigorous and brought in line with PGP.
“We had commitment to help improve the management skills of working
managers. But the institute had serious constraints of land and could not
expand physical infrastructure to meet the growing and emerging needs of
society through long duration fully residential programmes. IDL platform
provided us a cost effective alternative. It was for us to decide how we improve
the quality and rigour of the programme. It was a challenge and we were ready
to take it up” said the Director.
Research Conferences
Up to 2003-04, the institute could hold research conferences only occasionally.

It could not scale up the activity due to lack of academic infrastructure and
residential facility for delegates. Holding conferences in hotels also created lot
of logistic problems, as the hotels were 15 km away, in the main city. It also
increased costs unnecessarily. Further the institute’s academic support could
not be provided.
By March 2005, Classroom Complex II as a part of Phase II construction of

the campus was completed. A 200- capacity Seminar hall was already
constructed (which was used infrequently but added un-recovered fixed costs
of maintenance). The availability of such facilities gave an idea of scaling up
Research Conferences and Industry Seminars for improving interaction of
students with industry professionals. Still the residential constraints posed
problems. The Director wondered how long the physical infrastructure
constraints should be allowed to withhold academic progress of the institute.
If due encouragement was not given in the formative years, the faculty
members may shy away from this important activity of the institute, which
wanted to emerge as an institution of higher learning. There were several
84
benefits possible. Holding conferences would engage the coordinator faculty
in research work also. This would help in their friends also engaging in
research work to present papers in the research conference. Thus if 4-5 faculty
members joined to organize a conference, there would be 4-5 research papers
from internal faculty, which could mobilize 40-50 research papers from
external delegates. If 5-6 conferences were held in a year, almost 250 research
pieces would be done and as many research papers may get generated. If even
10-15 % of them turned out to be good papers they would be enough to fee a
quarterly research journal, “after all quantity begets quality, if conscious
efforts are made” remembered the Director of the word of wisdom from his
mentors..
He therefore started stretching the institute’s residential facilities for guests.

Augmenting the guesthouse facilities by conversion of two married students’
hostels was one such step. There were only 1 or 2 married students and two
married students’ hostels were being constructed. Even the housekeeping and
security expenses of these buildings could not be recovered, as they would not
have been fully utilized. The augmented facilities could be utilized for low cost
academic activities like FDP (as described earlier), Research Conferences and
Industry Seminars. When vacant, these could also be utilized for generating
revenues through MDPs. The furnishing of three 3-bed room unoccupied
faculty houses as executive hostels added another 16-bed capacity. Eventually
for a Conference even vacant staff houses were furnished to accommodate
guests, who preferred to stay in the “oxy-rich”, serene campus, which gave
experience of a hill resort in a coastal city.
The following guidelines were also given to faculty members to think and
organize research conferences:
1. Charge Rs. 3000/- only as registration fee per delegate and increase the
number of delegates to 60 or more (which would surely recovers all the
out of pocket expenses).
2. Avoid asking for subsidies from the institute and others and cover
expenses through registration fee.
85
3. Avoid frills that only add to unwarranted costs.
4. Let not subsidies and grants decide the conferences that a faculty
member/ institute wishes to organize.
5. Institute will extend advance for organizing conferences, which will be
settled with the registration fees.
The results started flowing. The number of national and international research
conferences started increasing from different disciplines- marketing,
operations, economics, strategic management etc. These also started leading to
publication of books of selected paper. The increased activity also justified
creation of an exclusive secretariat for conferences. By 2008-09, the number
of research conferences started averaging 4-5 per years, which was way ahead
of any other similar institution. It was hoped that eventually the institute will
be able to gear up for about a dozen research conferences per year.
“I personally believed that the institute should encourage faculty to do research

and share the findings in conferences. The benefits of conferences went beyond
number of papers presented by faculty for academic accolades and promotion
etc. It is also an opportunity to get dispassionate feedback from academic
fraternity before the research papers are finalized for publications for the use
by practicing managers and other policy makers. Moreover, it can help one
understand the depth of his understanding in his field or the topic of the
conferences. It also helps in understanding the depth of others conclude what
is not being explored or understood. It can help others improve his research
paper. Finally it helps one identifying partners and forging partnerships for
meaningful, extensive research with rich gathered data from all over the
country though collective efforts. These benefits outweigh the pains and efforts
to be made for organizing the same. Holding the conferences in the institute
also helps in grooming budding young doctoral students to learn how to
organize the same. Besides, the any one or more faculty members here can
attend meaningful sessions, whenever they are free from other institutional
commitments.” commented the Director on the purpose of giving impetus to
the activity.
86
Fellow (Doctoral) Programme in Management (FPM)
The Fellow Programme in Management is another step towards becoming an

institution of higher learning (moving higher up on the intellectual pedestal).
There was increasing pressure on the Director from some faculty members to
start the same and also for the new wave Executive Fellow Programme. He
was wondering whether the institute has enough resources, especially
experienced, research oriented faculty members to sustain the demands of a
rich, meaningful doctoral programme. He was concerned that the programme
may not become a run of the mill programmes and perceived as a low quality
PGP in the garb of FPM.
He was equally skeptical of the fact some faculty members may not treat the
FPM participants as faculty assistants for various purposes or just use FPM
scholars research as their own when it came to publication as was seen in some
other institutions. After all not many were doing postdoctoral research on their
own and no one had stopped them from doing so. How would they
dispassionately guide doctoral students without having serious research
interests? Some faculty members felt that FPM should be launched only when
there was sufficient number of faculty members in various areas. From where
they will was a moot point, but not a concern of them. At the same time
delaying the launch of FPM too much could mar the development of research
climate and culture in the institute.
The matter was put up for consideration of the faculty council. There were
extensive debate and deliberation. Finally the issue was decided the way IDL
programmes were decided with a three- tier structure for decision making.
1. The Institute shall launch FPM in those areas where the concerned
discipline area faculty members were prepared to make commitment.
2. There will a FPM committee, comprising members from the areas which
wanted to launch FPM. Faculty members from those areas which did not
want to launch FPM will not be member of FPM committee, which will
design and detail the FPM policies that could be implemented after due
87
approval by the faculty council. An FPM Executive Committee will take
care of day to day issues, in the same way as PGP and IDL Executive
Committees.
3. Some areas did not want to join the launch of FPM and at the same time
wanted some compulsory courses of the area in FPM. The faculty council
decided that if the concerned area faculty members did not want to teach
and did not identify the guest/ visiting faculty for such courses, the faculty
members of the areas which wanted to launch FPM and the Director will
search faculty for those courses.
To ensure against a faculty member’s reluctance to conduct FPM courses and

focus on PGP courses alone or vice-versa, the incentive system was modified
as below.
1. Every faculty member has to teach a minimum of three PGP courses out of
minimum of overall 6 courses workload for the year.
2. Subject to meeting the above requirement, he/ she can teach 2 additional
PGP/ FPM courses on payment basis (at a standard rate per hour) for all the
institute programmmes (MDP/ PGP/ IDL) applicable to a guest faculty.
However,
a) He/ she can teach 4th course as FPM course. If FPM course was not
available then he/ she could teach a PGP course.
b) He/ she can teach 5th course as PGP course. If PGP course was not
available the FPM course may be taught.
3. Paid courses would not be counted for workload purpose.
4. 4th and 5th courses would be counted in workload if payment is not taken.
Other conditions set out in 2 will continue to apply.
5. A faculty member can’t teach in more than 5 PGP/ FPM courses.
The purpose of the above scheme was also to encourage involvement in other
academic activities to let the institute grow as a fully integrated, socially
relevant institute of national and international reckoning. For conducting
MDPs, honorarium was paid in normal course as incentive. In exceptional
cases, if an area/ faculty did not have sufficient number of courses available,
88
the Director could permit counting of MDP involvement to meet the
requirements of minimum workload. The IDL programme involvement was
also treated like MDP, but payments were made on full course basis than
session-wise applicable to MDPs. For week long FDP, up to ½ course credit
was allowed.
Norms for counting work load of research were also developed, but no cash
payment was given. The faculty could accumulate credits points beyond six
courses i.e., 180 credit. If one worked beyond 210 credits then for every
additional point Rs. 1000 was credited in his/ her name up to maximum of Rs.
100,000, which could be used for buying computers/ accessories, attending
additional conferences in India / abroad. If the amount was not used up to the
end of June of the next academic year (which was April to March), the faculty
members could encash it @ 50% of outstanding credit beyond 210. Once
encashed, the balance of credit would come to zero.
With the above conditions, the FPM was launched in marketing, operations,
economics and strategic management areas. It was hoped that other areas
would follow soon.
The launch of FPM, covered the whole spectrum of the academic activities
which any leading management institution in the country had. Publication of
research/ books and consulting activities were already there.
The diversification initiated gave faculty members a rich portfolio of academic

activities to engage in. By the year 2008, the average portfolio of faculty
members was 6 academic activities. Besides, they had academic administration
responsibilities to balance their work portfolio.
The use of multiutility buildings (see cases ISB ‘C’ & ‘D’), multi-skilled staff
(see case ISB ‘E’) and multi-portfolio faculty, helped optimal utilization of
various resources, to improve both effectiveness as also the efficiency of the
institute and pave way for faster growth of the institute, will limited resource,
89
which he had outlined four years ago to the members of Faculty, Staff and the
Governing Board of the institute (see exhibit 1).
Questions
1. What were the new academic activities st the institute? What were the
reasons for diversification?
2. Were the diversifications related or unrelated?
3. Compare and contrast the way these activities were managed.
4. Comment on the incentive policies. Should the institute have restricted the
involvement of faculty in PGP/ FPM teaching?
5. Should the institute have gone for using full cost for some activities and
direct cost for some others?
6. Was the institute effective? Was it efficient?
7. Comment on Mission, objectives and critical success factors.
90
Is Small Beautiful (I)?
Exhibit 1
Excerpts from the presentation made by the Director to the Board of

Governors, Faculty and Staff Member within a month of joining
Issues for Discussion The Institute has entered the growth phase
Understand at what stage of 1. The task demands and challenges in

development IIMK is this phase will be of a different nature and
today, decide what we magnitude
would like t to be in next 5-
10 years and what needs to 2. Do we let the growth come through
be done for that. evolution process or through planned
development efforts?
2.
Identify what major 3. Shaping the future thus becomes an
changes are taking place in important task to get maximum from the
the external environment of existing strengths and resources through
my organisation unified organisational efforts.
3. Analyse what are our 4. It also allows flexibility in

key strengths and the accommodating individual preferences and
resources at our disposal strengths while meeting the organisational
objectives and drastic reduction in the
4. What may be the
changes required in our past
approaches & practices and
how to effect these changes
5. What role each one of

us can play in this process.
MISSION OBJECTIVES
91
IMP 1. Grow to become the leader Institution
of Higher Learning of National/
Aims To International Reckoning in the next 5 years.
Help Improve the 2.
Management of Be and remain economically viable (cover
Corporate and Non- up the costs preferably through users of
Corporate Sectors, services directly)
Directly and Indirectly, 3. Be a model of efficiency and
through effectiveness
Research, Teaching,
Training, Consulting and 4. Take care of interest of all the
Educational Infra-Structure stakeholders
Development
5. Develop a distinctive, unique identity.
Thus becoming a socially
relevant leader institution 6. Be at least second best in whatever we
of national and do
international reckoning
7 Collaborate to compete, compete to
excel.
8. Avoid becoming opportunist, greedy

and
selfish.
Critical Success Factors
1. Improve utilisation of every bit of all kinds of assets.

2. Synergise individual efforts in every element of academic activities.
3. Overcome resource constraints, through external linkages.
4. Magnetise organisational Efforts.
5. Switch on the lights.
6. Augment resources by exploiting them.
7. Emotionally yours
92
Year PGP Training (MDPs/ FDPs) IDL Prog. Revenue
(upto Jan.) (Without
Grants)
Intake Student No. No. No. of No. of No. No. of Rs. In
Popula- of of Partici Participant of Platform Lakhs
tion Prgs. Days pant- Days Stude Hrs
nts
2002-03 60 125 8 22 177 521 87 300 332
2003-04 120 185 12 51 230 1152 360 240 692
2004-05 120 259 17 54 268 916 530 740 840
2005-06 180 282 26 149 456 3099 172 620 1013
2006-07 180 340 33 184 691 3944 135 450 1150
2007-08 180 370 30 200 700 5000 190 900 1440
2008-09 268 461 17 104 398 2560 300* 1350 2160
Exhibit 2
Income and Expenditure Financial Management at IMP

Over the Years
Rs. in Year Corpus
Crores Revenue Fund
Expenditur Growth Growth
Year Income e (Rs. in (Rs. in
2002- Lakhs) Lakhs)
03 3.33 3.3 2002-03 332 58
2003- 2003-04 692 449
04 6.92 4.87 2004-05 840 863
2004- 2005-06 1013 1192
05 8.4 5.81 2006-07 1150 3892
2005- 2007-08 14.4 6600
06 10.13 6.85 2008-09 8500
2006- (Expected) 2156
07 11.25 6.8
2007-
08 14.4 8.93
93
IMP
Details of Grants received

Amount in Lakhs
Particulars 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Plan 1,826.00 930.00 1,000.00 1,325.00 1,000.00 2,381.00 2,397.50
Non Plan 220.00 588.00 350.00 294.14 683.00 683.00 341.50

State
Govt.(Plan) 118.94 200.00 231.25 150.00 - - 10.00
94
Exhibit 3
Range of IMP’s Services
#
No. Delegates #Papers Intake Intake Prog. Hrs Participant Year
days
6 437 332 4 261 1350 5000 * 2008-09
2 184 155 6 180 900 5000 2007-08

PDRC 2 139 108 180 450 3944 2006-07
1 4 96 104 180 620 3099 2005-06
2 120 740 916 2004-05
- 120 240 1152 2003-04
RESEARCH 1 60 300 521 2002-03
2 * Estimated
CONFERENCES
3
DOCTORAL PRG.
4
PUBLICATIONS
5
*PDRC PGP
(Post 6
Doctoral IDL MDPs
Res. Centre) PRGS
Proposed 7 8 FDPs
9 CONSULTING
95
65 The Thieves
Once we were going from Ranchi to Dhanbad for site selection visit of a new
IIM. On way we observed a large number of people carrying a gunny bag,
delicately balancing the overhang portion on the two sides of the central frame
of their cycles. The road was having slope up and down. When the slope was
up, they will get down and pull the cycle and load. There was a wooden rod
tied on one side, which was used as a stand. It was not one or two instances
but we found several people, perhaps few dozens on our way. They were not
in groups, but carried the load as individuals, separated from each other by
furlongs. They looked tired and perspired. We, the “outsiders”, asked the
accompanying hosts, who these people were, carrying coal like this. “These
people”, the host said, “engage in a sort of illegal mining, the excavate coal
from open fields, perhaps in lots of about 100 kg and start walking to long
distances, selling small quantities to needy customers in villages and make
some money to run family. They return only when they sold the whole bags
which could take one day to 5 days.”
“Thieves”, yelled one of the experts in the accompanying team “stealing coal”.
The driver of our vehicle, who was quietly listening to us so far, now lost his
cool and retorted. “They are not thieves. With hard work they excavate some
coal and walk long distance to sell it to needy people, at least possible price
and return home with some money for getting square meals for family. After
all, the villagers, dhaba wallas etc. all need coal and get at the least prices.
Somebody had to take coal out from mines and deliver to customers. Do not
large companies and government do the same thing only? The only difference
is that users get it at much higher prices 5-10 times from them. These people
can’t make huge profit as they can’t excavate, carry and sell large quantities
and can sell at high price”.
I wondered whether they are thieves or those who do it in an organized way,

paying less to labour, charging high price to customers and restrict supplies to
earn windfall profits?.
Q.1 What is the demarcation line of a thief and non-thief?

96
69 The Kick of Creativity
The Phase II of construction work of IMP Institute’s campus was getting

delayed so much so that only 40% progress was reported in 24 months for a
project that was to be completed in just 15 months. The Phase II work included,
inter-alia, a staff dining hall for 50 persons.
A new Director joined the institute. He felt that the 50 seater dining hall will
prove to be too inadequate for a growing institute as could be seen from the
crowd at lunch time in the students’ canteen, which was being used for staff
dining as a stop gap arrangement. There was no dining facility for participants
of management training programmes, which were being conducted at a low
key for want of hostel, dining and class room facilities.
The Director asked the Architects to increase the capacity of proposed staff
dining hall to 100 persons, who regretted it because no land was available for
the purpose in the campus, which was spread over two small hills and any
unwarranted cutting of hills could result in land slide, which the institute was
facing at some buildings under construction. He pondered over the matter for
few months. One night it occurred to him that land means area, which is
expressed in x and y axes. What about Z axis that he studied in geometry and
building drawing? A then idea crossed his mind and he suggested to the
Architects to design 100 seater dining hall, expandable to 200 (by raising one
more floor), erecting pillars on both sides of the road (no more cutting of hill
was required) and making dining hall above the road. The Architects designed
it. The Director then requested to make it 200 seater one, expandable to 400
seats. The Architect then made a new design, which could accommodate 150
seats, comfortably, on each of two floors (including a VIP dining room on each
floor). It also had a service area on each floor, which could accommodate
another 15-20 seats.. The pillars on the valley side of the road were so wide
that two small rooms could be carved, which could be used as a 20 seater
seminar room, as room for small Management Development Programmes or
as additional dining rooms, taking the total capacity to about 400.
97
Rains in Kerala are heavy and the roof had to be provided with shelter to avoid
accumulation of water. Very strong aluminum sheets, covering the entire roof,
had to be used to withstand high velocity of winds, coming directly from the
Arabian sea,. The iron rails surrounding the roof were not considered safe and
hence walls with doors and windows had to be constructed to cover the sides,
which converted the top floor also into a large dining hall (which could be used
even for conference purpose), taking the total seating capacity of the staff
dining hall to almost 600 (which could accommodate even higher number in a
buffet arrangement).
The initial capacity of 50 seater staff dining hall thus went up 10-fold. The Rs.
60 lakhs estimated cost went up to Rs. 160 lakhs, but the impressive three story
dining hall could meet the requirements of not only the staff even when the
academic activities tripled, but also accommodated students of increased
intake (till new facilities were created) but also participants of management
development programmes for the next 7-8 years (till new facilities were
created).
Was increased capacity a kick of creativity? Is delay in project completion a

bane or blessing in disguise? Is constraint as serious a land an opportunity to
grow? How much capacity augmentation could be done by Architects through
creative designs, if one requests them? These questions make one ponder as
strategist. More example of it can be seen in cases Is Small Beautiful (C), (D),
(E) and (F).
98
71 The Experiment
The Institute of Management (IMP) was set up by the Government of India as
the sixth national level Institute of management. The Institute was created as
an autonomous body, fully funded by the Central Government, with the
support of state government. Consequent to increasing the number of seats in
two classrooms from 60 to 79 and in another one from 36 to 59, the Institute
decided to construct a hostel for training programme. However, instead of
constructing single occupancy rooms, it was decided to have double occupancy
rooms, a move that perplexed every one. Explaining the reasons, the Director
said-
“It was all very confusing. The Institute located in southwest corner of the
country, away from the mainland, the cost to sponsoring company used to be
double than registration fee, because of high travel expenses. Besides, due to
poor air connectivity, one had to spend one full day extra for each way to attend
a short-duration programme. Train journeys entailed several times more the
time (average twenty four hours). I was, therefore, not very sure whether it
will be possible to have high capacity utilization to cover even out of pocket
expenses and reach break-even point.
Luckily, our faculty development programmes had clicked, due to judicious

pricing strategy. But the fee was to be kept very low, almost one-fourth of
MDP conducted by other Institutes. Still filling the capacity was difficult.
Then, an idea crossed our mind, to have double occupancy rooms which will
be used for 9 months by PGP students, and in summers, the same can be used
for faculty development programmes and other programmes/activities.”
The cost for such hostel was 30% more than single occupancy rooms for PGP
students. But the hostel could then be used for 3 months more. The rate
fetched by FDP was 18 times more. (Rs. 300 net per day per participant, on
double occupancy basis compared to Rs. 1000 p.m for PGP). With occupancy
of 20% on 80 days (in 42 rooms) in a year, it would mean an income of Rs.
20.16 lakhs (80 days*600 p.d*42) lakhs.
99
It could thus add up to Rs. 21.16 lakhs in 3 months compared to Rs. 1.36 lakhs
realized at PGP rates. Thus while the cost of hostel construction went up from
Rs. 120 lakhs to Rs. 160 lakh (25% increase), the additional recovery would
be a matter of two years. Further, for part of the period, it was used for MDPs,
the rate could be 3-4 times more than FDP. The additional cost was estimated
at Rs. 100 lakhs (in civil works and furnishing), which would take maximum
of five years to recover through FDP and 2-3 years if used for MDP.
In a nutshell, the Institute was getting one hostel extra (with cost covered in 4-
5 years’ time), whether one calls it extra PGP hostel or extra FDP/MDP hostel.
Explaining the reasons for furnishing the hostel in executive style, the Director
said-
“There have been several considerations. Firstly and most importantly, I have
always believed in multiutility buildings. That helps in optimal utilization of
assets, reducing costs and making them useful for a variety of activities, which
are important but not of long duration and not amenable to a charge on actual
cost basis. I could recover cost with MDPs fastest, FDP over a longer period
and PGP hostels over very long period. Secondly, we had started succeeding
in organizing major conferences at an increasing scale, but were severely
constrained by infrastructure and could not scale up. We couldn’t afford to
create 500 capacity boarding/lodging arrangements for big conferences that
will be extremely important, but couldn’t give enough occupancy during the
whole year to make it viable. But, if decently furnished PGP hostels are
designed to meet the requirements of delegates of conferences, the same
facility can be used for 10-20 days in a year and very high capacity gets created
for large conference at a little extra cost, thus covering full expenses of large
conferences despite low registration fees.
Thirdly, we did not want that faculty development programme participants get
inferior treatment in terms of hospitality than MDP participants, though they
can’t pay even half of what junior level industry participants can pay. If we
do not respect faculty ourselves, how do we expect others to do it?
100
Finally, if while doing so, the PGP students too get better facilities at no extra
cost, what is the harm? They may not use air conditioning, refrigerator etc.
and don’t pay for it. But if they live in well designed room by choice, I see no
reason why should not we let them relish facilities at no extra cost.”
In a sense by creating radically different multi-utility hostels, the Institute had

separated costs into two parts.
1. Basic cost of hostel + cost of basic furniture Borne by PGP students

given to PGP students (for 9 Months instead of
12)
2. Additional cost of building (attached Borne by MDP/ FDP/
Toilets, changing room + additional Conference participants
cost of superior furnishing) (for use over a period
of 3 months)
Thus while cost to both PGP students and MDP/FDP participants, conference
delegates is low, former could enjoy better facilities and amenities, the fee for
MDP/FDP/conference could be substantially reduced (without reduction in
quality) to make them within reach of the participants. Furthermore, these
multiutility buildings will give capacities that are not possible otherwise. Thus
when regular 200 bed MDP comes up, the Institute could host fully residential
conferences of over 500 delegates at a rate as low as Rs. 3000/- for 3-days
conferences covering full expenses without seeking any sponsorships. The
Institute could then think of 5 parallel conferences of 100 delegates each during
3 months of summer.
The move came as a good tool for keeping pace with the growth of other
institutions, despite facing serious constraint of land and hilly terrain that
doubled the construction time. Indeed the Institute could grow faster than
others and create large capacities that others could not think of, for a variety of
low cost but important activities like faculty development programmes,
conferences and seminars, post-doctoral research etc.
Elaborating the point the Director said, “We were planning for next increase
in PGP intake to take it to 240. We needed two more hostels of sixty students
each. We did not have land. Architects could manage only one sixty seater
101
and a sixty four seater hostel. On request they made it double occupancy (to
increase MDP/MTP/ Conference accommodation). By 2007, the pressure for
increasing intake by 54% under OBC quota was increasing, which required
even more hostel facilities. On being pressed further, Architects squeezed yet
another 47 seater hostel, (which was also made double occupancy later). We
thus got three hostels, two of them being double occupancy hostels, furnished
in executive style, with 171 rooms, which were necessary for increasing intake
of more than one section of 60 students (76 students). However, we also got
in the process 300+ bed capacity executive accommodation created at almost
no extra cost for organizing conferences, training programmes, which could
fetch (300*90*1000) Rs. 2.7 crore revenue at a meager fee of Rs. 1000 per day
for participants. If one considered 24 rooms (48 beds) capacity created already
in guest houses, the total accommodation for low cost activities could go up to
350+ beds.”
With the proposed 200 bed fully air-conditioned MDP complex coming up, the
capacity available for organizing large conferences and training programmes
during three months of summers, would go over 550 beds. This would
overcome a serious handicap of the Institute, as Calicut did not have good
hotels with more than 180 capacity, that too not in one hotel, available for such
conferences. In any case, the charge would not be less than Rs. 1000/- per bed
along with the problem of managing logistics.”
“Side by side we were planning to increase library/ reading room capacity by

completing finishing work of top floor of computer centre, which would to
have about 30000 sq ft additional area for starting six specialized research
centrres under Postdoctoral Research Centre (see exhibit 1).
With prudent policies we had been able to create a decent corpus fund whose
interest could support research expenses of about Rs. 50 mn per year. The
amount was good enough to support travel, boarding etc of about 500 people
for 3 months an also award 200-300 fellowships of Rs. 100,000 each every
year. If 500 postdoctoral scholars could be mobilised in serious research work,
year after year, some really useful out puts will start coming out for teaching
training and consulting to help management education make an impact on
102
outward globalization of India, (which the country wished while opening the
economy in 1991), we dreamt”, concluded the director.
The foresightedness also helped institute cope up with an enormous challenge.

The Central Government was pressing the Institute for increasing intake by
54% (97 seats). In 4 years’ time, while other institutions were struggling with
timely construction, despite being best placed, this institute had the problem of
land also, which was a contentious issue between the central and state
governments, run by different parties, and both were unwilling to provide the
same. The resolution of land issue was not in sight despite two years having
passed. However, because of double occupancy accommodation, the Institute
was in a position to accommodate sixty more students in hostels meant for 60
only. Indeed if the students agreed, it could increase full quota of 54% (97
students) in first year itself.
“It was not easy. This was no model available to us in India. I had thought
that students would not agree. But we made double occupancy
accommodation very attractive. It was not ordinary double occupancy
accommodation. We made it an executive hostel with amenities that made it
look like a three star hotel in a resort, available at the cost of a regular PGP
accommodation in similar institutions. Still we did not want to compel. We
discussed with students as to what accommodation Indian industrialists got in
institutions abroad, how the experience of living with partner in different
countries, with different food and other habits, helped them in learning to bear
others, to grow and become among the top 10 richest in the world, made
students think and they volunteered to give a try for those who wanted”.
Before demitting office at the expiry of his 5 year term, the director invited the
entire faculty council to attend his last Board meeting in which a faculty
member made presentation on PDRC (Post- doctoral Research Centre). After
few clarifications and suggestion Board approved the same in principle.
Q1. What was the purpose of the experiment?

Q2. Do you think by making the changes, the Institute will emerge as a
research hub? What else may be required?
103
Q3. Comment on the economics of the decision. Is it a wise decision? What
are the consequences if the experiment fails?
Q4. Institute stands at strategic cross road? Comment.
104
Exhibit 1
THE POST DOCTORAL RESEARCH CENTRE
There is immense need of postdoctoral research for helping outward

globalisation of India to:
(a) Understand different countries’ economy, industry, trade and

organizational functioning (or management practices and processes).
(b) Their special/ unique natural endowments.
(c) Traits of society (history, culture etc.) in which business/trade is
embedded in.
(d) Organizational issues (e.g., corporate governance, strategy, culture,
HRM systems).
so as to identify,
(a) In what way they can help in meetings India’s trade, technology,
organizational and other societal requirements,
(b) In what way and India can help them in meeting their trade, technology,
organizational and societal requirements, and
thus, mutually help in economic growth and development of each other

through sustained joint efforts and symbiotic relationship.
The need for such a Centre arises from several inadequacies observed in the
present research efforts from the view point of meeting the growing national
requirements of globalization.
(a) The research efforts are individual and disjointed.

(b) There are serious methodological deficiencies in terms of
- Literature survey
- Identification of important research issues for problem translation
&research design.
- Data inadequacies, sampling errors, and errors in drawing inferences.
105
(c) Constraints/Limitations in dissemination of findings
(d) (Lack of adequate) concern for addressing important issues
comprehensively and in an inter-disciplinary manner.
As a result there are few good pieces lying in a vast pool of inadequate research
works leading to little or no help to the:
- Policy makers
- Administrators
- Industry managers
- Academicians.
Hence there is a need for strengthening and directing research efforts being
made by trained researches (not trainee researchers-doctoral students). There
is a large member of trained researchers (Ph.Ds), who, under conducive
conditions and with developmental inputs, can engage in research work for 20-
30 years on a sustained basis. Our present policy focus is only on trainee
researchers than on trained researcher scholars, who can pursue impact-
making research on sustained basis.
The Postdoctoral Research Centre at the Institute thus aims to
(e) Magnetise national efforts on identified geographic/functional areas

research efforts by
 Mobilising the experienced postdoctoral research scholars from a

variety of disciplines in support of postdoctoral research work.
 Directing their efforts toward of national research priorities in the
areas of management.
 Consolidating their efforts
 Facilitating their work through provision of access to physical,
financial, and intellectual resources.
 Integrating the research efforts and outputs.
106
 Networking with select educational/research institutions in India
and abroad.
 Disseminating the resulting output/knowledge in different forms
suitable for academicians, policy makers, industry managers, etc.
(f) To encourage and facilitate research scholars in identified countries to

understand the Indian products, services, business, trade and society
better.
(g) To show case India in identified countries through unified research and
publication efforts. Concerted effort on research on the Indian product
and services will have to be made for the purpose
The Centre would facilitate the postdoctoral research in the country by

providing the external scholars:
 A conducive physical infrastructure for their
- Lodging
- Boarding
- Study spaces in library
 Fellowships to cover boarding & lodging expenses.

 Literature and databases of industry, trade social and other relevant
aspects
 Conferencing facilities & literate development assistance
 An advisory council consisting of senior academicians, industry and
other experts from India and abroad
 Helping in getting the government support to ensure sustained research
efforts that are likely to be found useful in practice.
The following six meaningful postdoctoral research thrust areas are

identified for for focused research studies related to:
1. ASEAN countries and China.

107
2. European Union countries.
3. CIS countries & Russia.
4. African countries.
5. Latin American countries.
6. WTO.
Efforts will be made to identify about 50 research scholars for work in each
of the identified thrust areas. They should be having demonstrated research
interests and potential in the areas mentioned above.
They will not be full time scholars, but who can visit IIMK for shorter
periods of up to 3 months during March last week to June second week every
year.
Assistance of Industry Associations/ Industry Captains / Embassies will be

taken for the purpose of procuring literature, database and other assistance
required for studies.
About 100 important and meaningful research pieces are expected in the first
year.
Research Studies under Progress
There are several case studies underway on experiences of Indian in

Managing Business Ventures Abroad.
Invitation to Join Postdoctoral Research Movement
Postdoctoral research scholars who have demonstrated experiences and/or

interest in undertaking research studies on the Experiences of Indian Business
Venture Abroad in any of the above countries are welcome to join this effort.
108
72 Mission at Grass Roots
Way back in 1988 I went to develop a case study on the first corporate hospital
of India, which had earned a name as a highly respected super-specialty
hospital in a little over 4 years of its establishment despite all adversities.
As I went to meet the General Manager (Administration) at reception, he took

me to lift and asked me to get in and moved swiftly to a side ramp. When I
reached fifth floor, he was there in a minute, smiling, to receive me. On being
asked as to why he did not join me in the lift, he said, “The lift is meant for
patients. No other person, except Chairman (Cardiologist), among us including
the Chief Executive, Jt. Chief Executive (Chairman’s daughter, the other
General Manager, officers, staff at various floors, uses it. We go by ramp, may
be 4-5 times a day. If we use lift, the lift operator may give preference to us
not to patient”.
When I met the Chief of Food and Beverages who had joined from Hotel Chola
Sheraton, he said, “My experience there is of no use here. I have to prepare
over 700 unique liquid diets every day for close to 300 patients. We have to
ensure the diet of not only the patient but even guests reach them within very
tight time frame, because if it does not, the condition of the patient may be
adversely affected”.
Experience of meeting the Matron in-charge of housekeeping was no different.

She welcomed me but kept on counting bed linens and pillow covers. I was
getting restless. After about 20 minutes she finished counting and turned to
me. “Sorry to keep you waiting. What can I do for you?” She asked. Unable to
control myself, I asked, “Could not you attend to me first and then counted bed
linens? She replied, “Sir, our laundry is unable to take increased load. We have
therefore to bank upon the service of outside washer men. I had to check the
bed linen and pillow covers to be able to issue bed linen on time, twice a day”.
“Why don‘t you issue once in two days or a week or when the patient is
discharged? In the government hospital in our city, they change it when the
109
patient is discharged or goes abode” I said. “What?” she almost cried. With
eyes and mouth wide open and in a state of shock, she mumbled, “But what
will happen to the patient, he will get infection”.
Irrespective whom I met, from Jt. Chief Executive to EDP Manager, the word
“Patient” echoed in our conversation. I understood that the Mission “Patient
Care” has percolated organization wide as shared values, and people knew
what to do in situations when rules are not clear.
In a far off place from India, a city called Sabadel, about 40 kms from
Barcelona, Spain, ParcTaulti Consortium Hospital was formed by merger of
four hospitals, because their financial condition deteriorated in a way that they
were not able to contribute to even mandatory National Security Fund. Two of
them belonged to municipality, one was owned by a private Savings Bank and
one by a Mutual Funds company.
After going though lot of post-merger turmoil for integration over 5 years, the
hospital emerged as an Olympic referral hospital. I had heard a lot of good
things about the hospital and its staff and held them at high esteem. But when
I visited there, I was in for a shock with lot of noise, slogan shouting etc. I
asked the doctor who had accompanied me as to what was it all about. He
replied that staff is protesting against the government on wage issue. He added,
“Don’t worry, it will stop after half an hour”. Looking at my inquisitive eyes,
he said, “The staff is agitating to express solidarity with unions who have
organized nation-wide protest on the issue. But the staff here protests only
during lunch hour, as they don’t want that patients should not suffer for no
fault of theirs on the issue”.
The organization chart of the hospital was also peculiar with a thick border
demarcating people in two sets; one with patient in the centre and medical units
around it within the border and all other staff outside the border. On being
asked, the Chief of Planning explained tit as expression of centrality of
patients, if anything happens to him, no one outside the border is required.
Message was loud and clear to a visitor like me that “patient care” has become
a shared value in that hospital.
110
“We talk so much of Mission and shared values, but I wonder how many of
us realise the benefits of it”, thought the case writer.
Way back in 1988 I went to develop a case study on the first corporate hospital
of India, which had earned a name as a highly respected super-specialty
hospital in a little over 4 years of its establishment despite all adversities.
As I went to meet the General Manager (Administration) at reception, he took

me to lift and asked me to get in and moved swiftly to a side ramp. When I
reached fifth floor, he was there in a minute, smiling, to receive me. On being
asked as to why he did not join me in the lift, he said, “The lift is meant for
patients. No other person, except Chairman (Cardiologist), among us including
the Chief Executive, Jt. Chief Executive (Chairman’s daughter, the other
General Manager, officers, staff at various floors, uses it. We go by ramp, may
be 4-5 times a day. If we use lift, the lift operator may give preference to us
not to patient”.
When I met the Chief of Food and Beverages who had joined from Hotel Chola
Sheraton, he said, “My experience there is of no use here. I have to prepare
over 700 unique liquid diets every day for close to close to 300 patients. We
have to ensure the diet of not only the patient but even guests reach them within
very tight time frame, because if it does not, the condition of the patient may
be adversely affected”.
Experience of meeting the Matron in-charge of housekeeping was no different.

She welcomed me but kept on counting bed linens and pillow covers. I was
getting restless. After about 20 minutes she finished counting and turned to
me. “Sorry to keep you waiting. What can I do for you?” She asked. Unable to
control myself, I asked, “Could not you attend to me first and then counted bed
linens? She replied, “Sir, our laundry is unable to take increased load. We have
therefore to bank upon the service of outside washer men. I had to check the
bed linen and pillow covers to be able to issue bed linen on time, twice a day”.
“Why don‘t you issue once in two days or a week or when the patient is
discharged? In the government hospital in our city, they change it when the
patient is discharged or goes abode” I said. “What?” she almost cried. With
111
eyes and mouth wide open and in a state of shock, she mumbled, “But what
will happen to the patient, he will get infection”.
Irrespective whom I met, from Jt. Chief Executive to EDP Manager, the word
“Patient” echoed in our conversation. I understood that the Mission “Patient
Care” has percolated organization wide as shared values, and people knew
what to do in situations when rules are not clear.
In a far off place from India, a city called Sabadel, about 40 kms from
Barcelona, Spain, ParcTaultiConsortiumHospital was formed by merger of
four hospitals, because their financial condition deteriorated in a way that they
were not able to contribute to even mandatory National Security Fund. Two of
them belonged to municipality, one was owned by a private Savings Bank and
one by a Mutual Funds company.
After going though lot of post-merger turmoil for integration over 5 years, the
hospital emerged as an Olympic referral hospital. I had heard a lot of good
things about the hospital and its staff and held them at high esteem. But when
I visited there, I was in for a shock with lot of noise, slogan shouting etc. I
asked the doctor who had accompanied me as to what was it all about. He
replied that staff is protesting against the government on wage issue. He added,
“Don’t worry, it will stop after half an hour”. Looking at my inquisitive eyes,
he said, “The staff is agitating to express solidarity with unions who have
organized nation-wide protest on the issue. But the staff here protests only
during lunch hour, as they don’t want that patients should not suffer for no
fault of theirs on the issue”.
The organization chart of the hospital was also peculiar with a thick border
demarcating people in two sets; one with patient in the centre and medical units
around it within the border and all other staff outside the border. On being
asked, the Chief of Planning explained tit as expression of centrality of
patients, if anything happens to him, no one outside the border is required.
Message was loud and clear to a visitor like me that “patient care” has become
a shared value in that hospital.
112
73 The Two Worlds
The Board of Governor of IMX Institute was very keen for faculty
development programmes and case/course material development. The Board
had approved a perspective plan way back in 1992-93 but not much progress
was seen. In the year 2000, the institute started Ph.D. programme, but it could
not scale up and in 15 years up to 2015, only about 3 dozen doctoral students
graduated. Nothing, however, could happen for sustained, lifelong exercise for
faculty development at different levels in a concerted manner. For developed
of inhouse faculty allowance for attending conference in country and abroad
were introduced but it was availed by few young faculty member, that too for
participating only in international conferences. Independent research by senior
faculty member was at very low key and most were quite satisfied by adding
their name to research papers prepared by doctoral student, mandated for
publication. On the course material front, hardly anything happened despite a
good number of faculty members having been sent abroad for case
development workshops and programme. Writing books was rare and did not
get encouragement.
While the new director who joined in 1999 encouraged organization of

national and international seminars and conferences, his successor, Dr. Vikas,
who joined in 2003 and reigned for over 10 years detested it and felt it was a
waste of time and money and that the faculty used the money to go for
excursion in the name of attending conferences. For grooming the faculty of
other management schools, though Board was very keen and wished to create
a faculty development centre, successive efforts of putting proposals to MHRD
(Ministry of Human Resource Development) failed as proposals typically
sought, huge grants for non-recurring and recurring of expenses, (which had a
huge component of honorarium to faulty in line with rate for sponsored training
programmes (which was treated as consultancy). The Institute’s open MDP
were limping with not so impressive turnout, but sponsored training was a
good revenue and surplus generator. The Board appreciated it and was happy
with the ever increasing size of corpus fund though sponsored training and
increase in MBA fees (which had gone up 4 fold in 7 years).
113
One of the reasons for failure of open faculty development programme was
costing.The Director and successive MDP (Management Development
Programmes) Chairmen were aiming at rates as high as those for sponsored
MDPs which was 5-10 times of what the open FDP’s participants could bear,
although the rates that open FDP participants could bear could cover all the out
of pocket costs and a good part of facilities were lying idle (full expenses were
being incurred for maintenance and up keep. The building expenditure was
already paid by MHRD and thus no charge for that was needed. The Institute
could support 8-10 FDP’s at low cost which was within the reach of FDP
participants.
The other major problem was faculty reluctance. After meeting the minimum
workload requirement, many were keen write either a research paper to present
in an international conference or earn sumptuous honorarium by taking classes
in sponsored training programmes.
Remaining were content with gossiping, politicking and bickering after

meeting the minimum work load requirement, especially full professors, who
had nothing to look forward to gain (like further promotion) or lose. The
academic administration position was not respected as they were perceived to
be doled out to those whom director liked.
Some diehard optimists who tried to engage in other things even then, had to
face various hurdles. Organising conferences & seminars, open faculty
development programme, which were more demanding tasks, did not find
place even in the workload norms of faculty, leave alone any incentive earning
or appreciation from the director. If one came forward to conduct two
programmes, the director would not allow more than one. He never
inaugurated or met the participants of open FDP’s. Encourage by such attitude
of director, the staff of MDP office also threw spanners by asking to get
repeated approvals from MDP Chairman/Director, even after all-inclusive
approvals were given by the director. One assistant went to the extent of telling
a senior professor that institute had stopped providing course material and the
coordinator (the professor) should seek special permission for Xeroxing the
course material/case material (which the professor had prepared with extensive
efforts) as the material was about 200 pages. The professor retorted that he
114
would not seek any such approval, but if the material was not prepared for
participants, he will abstain from the programme as he could not conduct any
class without the course material (case material) which was going to be a basis
for class discussion. The coordinator occasionally had to pay taxi fares for
guests he invited for few classes or requested them to bear it themselves the
programme assistant would create hassles in settling payments. Once a Board
member of IMX came for a lecture and gave claim for taxi fare of Rs. 600/- on
a piece of paper. The assistant later asked the coordinator to get the guest’s
signature on the claim, which meant the coordinator had to pay as much
amount from his pocket to send a person by taxi to get the signature costing
Rs. 600/-. He paid the bill himself to settle the issue.
Things did not change much even after the director Dr. Vikas relinquished
office. The Acting Director (AC), Dr. Nagendra, when requested by Professor
Abhimanyu in October 2014 (who was the only faculty member who was
conducting one open FDP every year even after retirement for last three years,
free of any charge), the AC suggested that since he was now retired, a faculty
member who is in regular service of the institute should conduct the
programme. From where to get such faculty was a moot point. If the any one
or more of the 7 regular faculty members were keen to do that, Prof.
Abhimanyu did not have to do after retirement. Prof. Abhimanyu somehow
convinced a young assistant professor Dr. Virendra to formally coordinate the
programme.
Dr. Virendra accepted the request and the proposal was put up to the AC for
approval. The Director then said he did not wish to use his discretion and
would like to work through system and referred the proposal to MDP Chairman
(another assistant professor) who decided to discuss the matter with MDP
committee and formulate a policy for FDP before deciding the issue.
After 3 months, the MDP Chairman informed that Rs. 15000/- be charged as
registration fee for FDP. This was above Rs. 10000/- which the programme
was allowed to be charged by the Governing Board of a professional body
under whose aegis the programme was to be done. In the past the director had
been abiding by the uniform, low fee suggested by the professional body.
Other partner institutions, who were conducting the FDP also agreed to charge
115
uniform fee. They were sister institutions, all promoted by MHRD and
charged low fee as a national cause, because the programme was in a discipline
where there was acute shortage for faculty. IMX was registered office of the
professional body and Board had accorded permission to have registered office
of the body in its campus. Two members of Governing board of the IMX were
also members of the governing board of the professional body.
Months passed. In the meantime the AC asked Dr. Virendra that since the
programme was to be conducted at the second campus, the approval of MDP
chairman of the other campus should also be taken. The other MDP chairman
said that he would like to go with MDP Chairman of the main campus. He,
however, proposed if the participants could be kept in students’ hostel, he may
plead for lower rates. The idea was shelved however, when the coordinator
pointed out that many participant faculty members from various management
institute may be holding higher rank and positions in their institutions and
universities than them. It was then decided to try the proposal when the new
regular director joins.
Professor Abhimanyu was wondering as to why things go wrong in conducting

FDP in IMX despite keenness and unequivocal support of the Board of
Governors. When he was deputed to a sister institutions, which was 12 years
younger, he faced all infrastructure problems (no classrooms, executive hostel,
dining room etc.) still the institute was able to do 6-8 FDP’s every year. Now
it was doing over a dozen programmes every year. In ten years from 2004, it
had done over 100 week long programmes, of over 650 days, which over 2200
faculty had member attended, while IMX could not conduct even 10 FDPs
during the period.
The only thing he did was create improvised infrastructure, made a faculty
member (who was sold to the idea of FDP) as Chairman FDP (separating FDP
task from Chairman MDP) and allowed 0.5 credit for FDP in the Annual
Workload of a faculty, which was minimum six credit. He also did not miss
inaugurating an FDP or delivering valedictory address, if he was in town. He
had highlighted the importance of FDP (in the perspective plan that he
presented to faculty, staff and Board members on his joining, as indirect
contribution to management education, as 40 teachers trained in a programme
116
can benefit 2000-4000 students , year after year. No such emphasis and clarify
existed in IMX, he felt. Despite his best efforts he could not give impetus to
the activity for over twenty years he secured IMX as a senior professor and
having been even Dean more than once.
“Perhaps the very mould in which the two institutions are cast now are
different”, he thought. “Perhaps IMX engaged in commercial activities more,
not development activities like FDP”.
117
74 A Livewire Information System
Dr. Ashwani Kumar was assigned the task of developing a computer based
Management Information System (MIS) by the Deputy General Manager
(DGM) of commercial department. The department was following manual
system thus far. Dr. Kumar had joined the department back recently after study
leave. A young colleague who met Dr. Kumar winked and told him in his usual
jovial manner “You can’t design an effective computer based information
system here”. Dr. Kumar could not interpret his joke, until he some experience
of it himself.
The company had acquired another company recently, which had a very formal
system of recording all transaction, performance data etc. at every stage and
function, thanks to elaborate paper work that was transferred from British
collaborator. The parent company had Russian collaboration and due to
language difficulties the paper work of a formal system was not transferred.
The information system in parts at least was very informal and oral.
Mr. Yogesh was transferred as senior commercial engineer from Indore plant
of the acquired company. He replaced Mr. Rastogi, a commercial engineer and
trusted assistant of the DGM in the motor sales section. One day the DGM
called Mr. Yogesh and asked:
DGM : “Mr. Yogesh, what is the outturn (production) of Motors in the l

last month?”
Mr. Yogesh:“Sir, I will check the files and let you know.”
DGM :“What is this, you don’t know? I can’t tolerate it. I want livewire
information system. Call Mr. Rastogi.”
Mr. Rastogi enters.
DGM :”Mr. Rastogi, what is the outturn of Motors in the previous

month?”
Mr. Rastogi: (turning pages of his diary), “Sir, it was 24 motors.”
118
DGM :”See Mr. Yogesh. I want efficient livewire executive like Mr.
Rastogi.”
Sitting by side of Mr. Rastogi, Dr. Kumar noticed, the page Mr. Rastogi
referred was a blank one. How could Mr. Rastogi have information, when he
was not even dealing motors sales now?
Dr. Kumar continued his efforts to design computer based MIS. The company
supplied various equipments for thermal and hydro power plants, motors,
control and other equipment to industrial customers. Components and
assemblies varied in size and value, from few thousand to few millions of
rupees. Their number supplied annually ran into thousands. Dr. Kumar
designed computer programmes which required collection of data from
production departments, multiply it with rates for each item to get monetary
value of the items produced during the month, aggregate them account head-
wise, fitted the formula for cumulative production, and put alongside the
budgeted figures, calculating variances to arrive at final production report.
To have the trial run he asked Foreman of a workshop to give figures of

production of various components and assemblies for the previous month. The
Foreman enquired, “Which one Sir?”. Dr. Kumar was a bit surprised and
asked, “Are there more than one figures?”. The Foreman replied, “Yes Sir,
You want actual or what we are declaring? Every month we declare production
in the month, which is not necessarily actual one”. Dr. Kumar was taken a back
and asked, “Give me actual figures”. On receiving the information he
completed final report and gave the print out to the DGM.
The DGM was quite annoyed after seeing the report and told Dr. Kumar:
“What? The achievement last month is only 70% of Budget. I can’t take it to
the Executive Director. He will kill me. Do something to make it at least 90%”.
Dr. Kumar was perplexed at DGM’s response. He wondered how to do what

DGM asked for, given that there were thousands of components and
assemblies. Declaring total production at aggregate level close to budget might
119
be working in manual system, but how to manipulate it in a computerized
system was beyond his comprehension.
No wonder when a new General Manager from the acquired company took
over the reign of the plant, in his first address to the executive he said, “You
people have declared so much so that if we have to make up the deficit between
actual and declared, we have to declare one whole year as a production
holiday”.
Dr. Kumar was wondering what was the meaning of live wire information
system?
120
75 The First Beneficiary of OBC Reservation
“In our institute benefits flew on their own, one did not have to bother too
much for performance. One could get penalised if he attempted to perform
beyond a pointe” said an amused Dr. Narendra Mohan, sipping coffee in the
faculty tea club.
Dr. Mohan came to IMX on deputation under agreement between the Institute
and his employer, under which the institute was to allow him for attending the
tasks of the employer organisation up to three months in a year. In return the
employer paid the difference of salary (about 1/3) and also bear the deputation
allowance. He taught more courses than others, and engaged in academic
administration, research and MDP etc. over and above the employer’s
assignments.
However at the end of deputation, the Institute neither released him nor
completed the formalities of permanent absorption. As a result the employer
did not transfer any benefit like leave salary, gratuity or even provident fund.
He was selected and offered professor’s position but his pay was fixed in a way
that the normal increment was deferred by 9 months. He was also fixed at a
pay less than what he was drawing on deputation.
When he became MBA Chairman and increased MBA intake 3 – fold, 4th pay
revision came under which his pay was fixed in a way that he started drawing
3 increments less vis-à-vis a professor who was drawing 2 increments less than
him before revision. There were many such aberrations.
“However, the last one was the master stroke. Govt. of India introduced a so
called HAG scale. By that time I had come to fag end of my career. I had been
in the Institute for over 25 then. The Institute decided to decline me the same.
Towards this, unique performance criteria were decided, much against and in
contravention of the government guidelines and order. The performance
evaluation committee’s members had to speak lies. Still I was qualifying. As a
last ditch effort, the Institute changed the date of implementation by 3 years so
121
that I retire. Even some Board members closed their eyes in larger interest,
equity and fairness, when the matter went for Board’s approval.” said Dr.
Mohan.
“So you did not get any benefit ever?” Asked some young inquisitive faculty
members.
“No, no, no. I got once, but on account of OBC quota based reservation,
although I do not belong to OBC category” said Dr. Mohan.
“How come?” Faculty members now got more curious.
“Actually, when I joined here I was quite old, say around 40 years, only 20
years’ service left. Then government increased retirement age to 62 years, I
still could not get full pension, which was possible if the Institute had properly
handled my transfer of service. In 2007 central government introduced OBC
quota and asked to increase PGP intake by 54%. It was a great opportunity.
But many IIMs opposed as there was acute shortage of faculty. To counter that
the central government increased the date of superannuation from 62 years to
65 years for those who were on rolls as on 15.3.2007. I was to retire on June
6, 2008. There was a case against the quota in Hon’ble Supreme Court and
later in Calcutta High court. But both of them rejected the petition. We had to
admit OBC quota. That gave us the opportunity to increase intake by 85% in
first year and surpass it by 10% next year.”
“But what benefits you got?” the faculty members asked.
“Firstly, I got three years’ additional service at full pay. Then the full pension
benefit were given on completion of 20 years’ service. That too at revised pay.
So were the gratuity, leave encashment and other benefits. It more than
compensated the denials by the Institute. I am thus a true beneficiary on
account of OBC quota. OBC students joined on 22nd June, but I escaped
retirement on 6th June 2008, making me the first beneficiary of OBC quota in
my Institute. You know, man proposes God disposes” smiled Dr. Mohan.
“Oh” the faculty members laughed in chorus.

122
“Not only that I was made one of the first Deans in the Institute and the first
Director from the Institute to a sister institute. Just a few months back, new
rules were made to allow 5 years leave. This helped me fulfil all the dreams I
had for this institute. I could contribute to all round growth and financial
viability. When I joined there the last batch of 60 PGP students was passing
out and when I returned first batch of 300 students was getting in, a 5-fold rise
in 7 years. I struggled to have 1st conference here, but there I could get 17
conferences in 5 years. Doctoral programme was started there in the 11th year
while we took 15 years here. We struggled to have one FDP in a year, there
we could organise 50 programmes in 5 years. To cap it all we could spread
PGP to working executives in their cities through on line programme.
Financially, we could grow a corpus fund of Rs. 85 crs. In 5 years. What more
I could wish” concluded Dr. Mohan
The young faculty members were spell bound. Was this the objective for which
MHRD introduced HAG scale? They were however, happy to note that they
will get in life at least the highest scale without any worry of performance.
They however, also wondered whether this way MHRD is going to create
excellent, world class management institution in India?
Click here to get the moral of story->kabhi kisi ko mukammil jahan nahin
milta
1. This story is based upon an interesting case study
123
76 The Birth of an Orphan
“After receiving the letter (see exhibit 1), I could not take meals for two days”,
said Prof.Nandkumar of IMX Institute of Management. “After all the
painstaking efforts to organise the first conference when there was no
infrastructure, this is what you get. I had to run around and be accountable for
everything, from printing of brochure, getting delegates, look after the
conduction of the conference, bother about getting payments, settling bills,
forming professional body, and the director only asking questions and refusing
permissions. Had it not been my good friends in PM (Project manager) and
CAO (Chief Administrative Officer), the Conference would not have
materialised. And to cap it all, he (the Director) felt humiliated for something
which to my recollection I had not done”. “Never again, I resolved in my
mind”, he concluded.
The Genesis
The genesis of the Conference was the first faculty development programme.
IMX was 10 years old and did not have any regular MDP infrastructure. It was
operating with 18 seats class room and 20 beds, stop gap boarding/ lodging
facilities in 10 small 2 bedroom houses for the purpose. Having come out of a
major strike by faculty and staff against the director (in which Prof.Nandkumar
refused to be dragged by either side), Prof. Prasad, the Director was all happy
with going on with a PGP intake of 120 students.
Some times in August 1994, Prof. Prasad was elected as Vice-President of

AIMS. In April 1995, AIMS invited proposal under AIMS- CCMS
programme, which provided grants for supporting research, faculty
development programmes etc. The Director asked Prof.Nandkumar to do give
some proposal. The latter made a proposal for FDP on “Launching a Strategic
Management Course” and the programme was conducted from January 22-27,
1996. The programme had overwhelming response with 35 participants, more
than half of them being readers, professors, HOD, Chairmen of PGP etc. They
had to be squeezed in facilities for 30 participants.
124
Somehow the participants liked the pedagogy of the programme and in the
valedictory session asked for raising a low cost platform wherein they could
meet (to update themselves through collegiate system of learning) at least once
in the year, even at their own expense. Prof.Nandkumar, taken aback by such
a request, contacted his Ph.D. guide, Prof. Ganesh Director of a leading
management institute (IPXM) under MHRD, whether the latter could provide
leadership to such an initiative. On his encouraging response, it was decided
to forge a platform with Prof. Ganesh as Chairman and one participant of the
programme Prof.Vittal as Secretary. It was also decided to meet on 27 th
January, 1997 in the first Conference, exactly one year from the valedictory
date.
Another participant, a senior professor from BIBM, a leading management

institute, offered to organise the first conference. Prof.Vittal was to form and
get the body registered at a Society in Delhi. However, when Prof. Ganesh
contacted the director of BIBM institute in August 1996, the latter regretted.
He then explored the possibility in his institute (IPXM) also, but the
infrastructure was already committed for some other events on those days. The
Ganesh also explored faculty support from his institute.
The Opportunity
Prof. Prasad had also asked Prof.Nandkumar to organise a conference like

annual conference of AIMS. In October 1996, when Prof.Nandkumar learnt
that even the second possibility may not materialise, it occurred to him that
perhaps IMX has an opportunity to host the first conference.
“Twenty years ago, in 1976 my teacher Prof. C.K. Prahalad had mentioned that
for professional advancement the faculty members in each discipline must
meet at least once in a year, to exchange experiences, share their work, develop
friendly relationship with faculty of other institutions for joint research and
literature development, groom faculty etc.”. Since the suggestion had emerged
from the participants of the faculty development in January 1996, I thought
perhaps the idea may take off for such a platform. When the institute of
Chairman also expressed difficulties, I thought of doing it at IMX. I hoped the
director will whole heartedly support it because he had asked for organising a
125
conference. But it turned out to be nightmarish with number of arrangements
to be made, solutions to be given, clarifications to be provided, denial of
permissions and help, especially because as I was badly caught in my own
heavy academic load of teaching, MDP, and literature development besides
administrative work of board and others”, said Prof.Nandkumar
Exploring the Possibility
Prof.Nandkumar sent a letter to director on October 10, 1996 that there was a
possibility of having the First Annual Conference of Strategic Management
Forum at IMX (see exhibit 2), enclosing draft of letter to the Chairman of the
(informal) Forum.
On October 14, Monday, a note from Director was received, asking for
expected number of delegates and how the arrangements will be made as
neither class rooms nor hostel would be available. He also wondered how
boarding will be arranged (see exhibit 3).
“This made me think” said Prof.Nandkumar “if this way the progress of
campus construction continued, even next year increase in PGP intake may
take place as pointed out by him in a Board meeting”. His apprehension
emanated from his association with project work as a member of campus
planning and development committee till few months back. Having seen
completion of a 120 seater class room in 25 days flat when the PGP batch size
was increased from 30 to over 100, Prof.Nandkumar was convinced that
construction could be expedited. He thought holding the Conference may help
in expediting completion of some buildings in time for having increased batch
size which had been held for 7 years already.
The Arrangements
On October 16, Prof.Nandkumar replied how alternative arrangements can be

made if the Conference was to be organised (see exhibit 4). The Director was
however, not convinced and felt that many adhoc arrangements were being
proposed and since Prof.Nandkumar was very busy with his MDP, he
(Prof.Nandkumar) should arrange a meeting of Director, PM and CAO as per
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convenience of all concerned. (see exhibit 5). Alongside the director’s note dt.
17.10.96, Prof.Nandkumar also received a note from CAO that the latter will
be proceeding on leave from 18th to 27th October.
Prof.Nandkumar was very much peeved with this and replied that the
administrative matter be sorted out at Director’s end (see exhibit 6) and he be
informed about the final decision. He also marked a copy to PM and CAO.
The replies of PM and CAO were very encouraging. Prof.Nandkumar had
worked with them as member of the Board and campus construction committee
and was convinced that once these two persons put their heart, the institute
could hold the Conference. He forwarded their views to the Director.
Inching Forward
On 11th November Prof.Nandkumar learnt that Chairman had approved the

proposal. But no formal letter had come to IMX Director. Being reminded on
14th, the Chairman sent implied consent to Prof.Nandkumar, but regretted that
the faculty members will not be able to assume any responsibility (see exhibit
7). There was no confirmation from the faculty member of another institute to
assume responsibility of another module. “This meant that I have to assume
responsibility of organising all the three academic modules, besides other
arrangements” said Prof.Nandkumar.
Prof.Nandkumar forwarded the fax to the Director, with the note that if the
latter agreed to be Chairman of the Organising Committee, he will be willing
to go ahead, else close the chapter (see exhibit 8). The Director sought
clarification about the organising secretary and financial responsibility.
Prof.Nandkumar agreed to be organising secretary, and explained that funding
was to be done through registration fees.
Finally, on Friday, 22nd November, Prof.Nandkumar decided to close the

chapter, drafted a Fax to be sent on 26th November, if by Monday 25th
November, the Director did not decide the matter (see exhibit 9).
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The Set Back
On 28th November the Prof. Rao, Secretary enquired about the arrangements
being made. Prof.Nandkumar drafted a reply and forwarded for the Director’s
approval so that the brochure for the Conference could be released. Director
agreed to it subject to certain conditions. He however had not agreed to allow
the registration fee to be received by the Institute. This meant an account had
to be opened in the name of Forum itself. This required that a formal body is
to be created fast. However, around mid of December the Secretary expressed
his inability to get the Forum registered as a society and asked Prof.Nandkumar
to do the same. “My God- how to do that” wondered Prof.Nandkumar.
Formation of the Forum
Luckily Prof.Nandkumar had been Secretary to Board and Society of IMX few
years back and had a copy of the Society memorandum. He modified it to form
a new society. Problem was how to get signature of Chairman. The latter
advised to get in touch with Executive Director of a public sector company (on
which Prof.Nandkumar had done a case study) was a common friend. He
agreed. The MD of another company for whom Prof.Nandkumar had done a
consulting agreed to be Treasurer. Prof.Nandkumar agreed to be the Secretary
of the Society. Some other faculty members of IMX and participants of the
first FDP became other members to meet the requirements of the Society
formation.
The Director of IMX refused to allow IMX for registered office address. He
did not allow even his officer, who had necessary experience, to help in
drafting and filing of the registration papers. Fortunately, Prof.Nandkumar had
a house in the city, which was made registered office.
Despite apprehensions, there were no difficulties created by the registrar office

and two weeks later the Forum was registered as a Society, just a week before
the Conference.
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The Conference
The project manager extended full support to expedite the completion of dining
hall and just in time the door and windows were fitted. Thirty rooms in the
students’ hostel were also completed on the day previous to commencement of
the Conference. The CAO also did his might to help.
The Conference was attended by over 45 delegates from various management

schools. A book by an author- delegate on Strategic Management was released.
The Instructor Manual of Prof.Nandkumar’s Case Book (published last year)
requested by participants of first FDP was also completed and released. Some
Directors and Vice Chancellors also attended the conference.
On the last day, the election for new office bearers of the Forum was held.
Unfortunately, no one proposed the name of IMX director for any position. “I
refrained from doing it, because I did not want to organise any other event
desired by the director. One experience was more than enough” said
Prof.Nandkumar.
Commenting on the letter by the Director, Prof.Nandkumar said “It pained.

But I was happy that now at least one PGP hostel of 60 rooms and the dining
will be operational to ensure that the PGP intake is increased to 180, which
was not happening for the seven years. The experience of coinciding
inauguration of a major event to expedite completion of a building was a great
lesson which helped me in completing the construction work that was stuck in
another institute when I joined there as director”, he said.
“Formation of platform for annual interaction of faculty members in my

discipline, a cherish dream for 20 years was also realised”, Prof.Nandkumar
said.
“There was no further conference in IMX until 2001, which I organised under
the aegis of the Forum. But that’s another story” smiled Prof.Nandkumar.
“If it was possible to organise the Conference, why Director did not approve
in the first place? Why both of them feeling hurt? Was it avoidable?Why no
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other conference was held for next 4 years? Will the Forum survive? Is there a
Role of Orphans in the Society?” These were some questions that puzzled
Dr.Nandkumar, even after retirement
Questions
Q.1 Was it possible to organise the Conference? If so, why Director did not
approve in the first place?
Q.2 Why both of them feeling hurt? Was it avoidable?
Q.3. Why Prof. Nandkumar was pushing the idea?
Q.4. Why no other conference was held for next 4 years?
Q.5. Will the Forum survive?
Q.6. Is there a Role of Orphans in the Society?
Q.7. As Prof. Nandkumar what role you can play?
130
P.S.
Over twenty Conferences and Seminars in Strategic Management discipline

were organised by 2015 by leading management institutions, who supported
the Forum. Sixty six week long courses (faculty development programme)
were also conducted by them attended by over 1775 faculty members, more
than 75 of whom had completed six courses.
131
68 Stories of Case Writing Experiences
Case writing is a common feature in many leading management schools across

the world, primarily because the success of case method for teaching and
training in management depends to an extent on the inventory of high quality,
crisp but demanding cases. Many people like me also feel that case writing is
a powerful faculty development exercise, under the control of faculty members
themselves. But it can be a great fun also, I realized that only when I wrote the
case Apollo Hospital Enterprise Ltd. However, even then it had not occurred
to me that case writing can lead to real action to spur growth of an organization,
taking it out of stagnating situation. It also made me realize the power of
subjects we teach.
One day, after I retired two years back, while reminiscing events in my life, I
was surprised me how many of them happened only because I wrote cases.
Some of them even changed the course of my life. These experiences of case
writing, I felt, could be of good learning value for others too and encourage
faculty members and practitioners in the country to enjoy case writing and
benefit by it. Some of these are mentioned in this note.
Hope you would like it.
Krishna Kumar
132
SHILPI & CO.
(1981-82)
In 1980 I joined a bank as a Senior Core Faculty in its apex college. We

were not having banking background as we were recruited to bring fresh
ideas to bank from other fields. A new principal joined the college and
proposed that we should be sent for branch training. Some of us were upset
and saw this as a politically motivated move to establish that we were no
good, especially because the principal who had joined as a law officer,
himself had never done any banking or undergone any such training, even
though he had reached the level of Assistant General Manager.
I reported for training in a major branch. The Branch Manager was quite
senior officer and had attended a programme that I had conducted for senior
executives. He welcomed me and gave a file of loan to a client. The loan
had gone sour as the business failed.
I looked at the initial proposal and comments of credit officer and Regional
Manager’s approval. The proposal, I felt had to fail, in light of basic of
sound corporate strategy having been violated and the proposal was
approved on novelty of product idea and nobility of the cause.
Later, when the case was being used for a training programme for credit
officers, Mr. Patel. The loanee, was invited and the dealing officer was also
there. On being asked why the business failed, Mr. Patil with tears in his
eye raised an accusing finger on the credit officer and said “due to him, he
made me bankrupt. I was novice but if these people, who deal with credit
proposals every day, have guided me properly or refused credit, I would not
have been broke.” The statement brought out the importance of not mixing
emotions in the business, to ensure that it does not fail.
The case study illustrated several significant concepts and techniques of

strategic management and development banking, and goes very well in the
class even after 30 years. However, even more important phenomenon
emerged later. While reading the last few pages of the file, I noticed Mr.
Patil informing the bank “the only silver line is that I have been able to
develop a manual process”. “My god”, I felt, “he was competent to make
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business a success on his own, but he did not know it, like mighty
Hanuman”. I am convinced that we need to be good HRD people as
superiors, at various levels, to bring the talent out from all of us, the Indians,
and it put to work. No regrets for being sent for branch training
SCOOTERS INDIA LTD. (A), (B) & (C)

(1986-88)
Scooters India Ltd. (A), (B) & (C) case study has been an interesting story.
I joined IIM Lucknow in January 1986. The first batch of PGP admitted in
July, 1985 was coming in second year in July 1986 and I was to conduct
Business Policy I course (later called Strategic Management I course). There
was no course outlines, no course material or relevant books in Library.
Between January and Mid- April, I drafted in the course outline. Having
been a student of IIM Ahmedabad myself, 10 year ago, I knew the
programme office in-charge and sought bibliography of cases. I had also
preserved the course material of various courses I had undergone at IIMA.
The course outline reflected all this. I tried to draft the course outline to the
best of my ability.
However, when the course outline was put up for discussion and approval
in the faculty council, it was not approved on the ground that most of the
case studies were foreign and the course should have Indian cases. During
summer vacation, I worked again over the outline and replaced many cases
with IIMA cases (there was no other source) which were being used in the
course at IIMA and put up to faculty council meeting as soon as the Institute
opened in second week of June, about 3 weeks from commencement of
course to 1st batch of PGP.
Lo and behold. The faculty council (mainly director, there were not many
faculty members who had studied the subject themselves), once again was
not willing to approve on the ground that quality of cases was poor.
Perplexed I asked “What to do? Indian Cases are poor quality and foreign
cases not encouraged”. “Write cases to teach the course” was the reply.
“How can I write 25 cases for the course that was due to commence 3 weeks
later?”, I asked. The reply was “Faculty council should help me in writing
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cases”. Mercifully, I was allowed to use the new course outline pending
development of new cases.
I started looking for sites to write cases. Since Lucknow was not a big
industrial city, there were not many companies available for the purpose.
Luckily, a faculty colleague who was head of the Bureau of State Enterprises
U.P. knew the management of SIL and he took me there. Initially they were
reluctant as the company was making losses ever since inception in 1972.
However, the management was magnanimous enough to allow me to study
the company to help others learn from their experiences.
I was caught in conduction of a new course for the first time and had two
other new courses in successive terms and also shouldered responsibility of
first chairman to organize Placement of first two batches, under very trying
conditions. There was little time for collecting data by visiting SIL, 26 km
away and even the Institute transport was not available, when I was free
from class and company executives gave appointments. Taxis were neither
allowed nor available in our area and public transport was not easy.
I was perplexed in the initial meetings. However, the experience of data

collection through interviews of 135 top executives in 35 companies during
my doctoral thesis helped in raising issues. I kept on jotting points that were
made by marketing, finance, engineering, manufacturing and other
executives. Gradually a picture started emerging, although still unclear.
However, after about 20 visits I had enough material to get fairly reasonable
details. The problem now was how to compress. Initial draft was only
chronological. In the effort to compress, it was thought to split the whole
text of over 40 pages into three parts and make it a three part case series.
The information was therefore, clubbed issue wise. The case started with
usual format of what is the problem that the management was facing (losses)
and then move to ask “why”. The first case covered problem of technology
transfer. The financial issues got associated alongside. The case (B)
covered the marketing issues and case (C) covered project management,
operations and human resource management issues.
Then came a shock. For the first time I came across a case of how a
company could fail in all functional areas of management? I observed that
135
there was no unifying link. My four years education at IIMA had not given
me this kind of insight. The case illustrated the disjointed decision making
for want of a sound corporate strategy. The case very well highlighted the
integrative nature of strategic management and criticality of the integrative
skills for success of a company, I think it is one of the few cases which can
convince any functional area specialist about the need for integrative
thinking and provide appreciation of strategic management to him, without
which the functional area expertise can’t benefit a company.
I felt terrible and was angry with the Director when I was asked to take up
case writing.. But no regrets now for all that happened. Indeed, I am grateful
to him and faculty council for the opportunity that they provided me to
understand the importance of strategic management subject and realize
criticality of it, through first hand experience of mismanagement, which
gave me confidence necessary to teach the subject.
During the process of case writing I started feeling that my own institute,
just about 4 years old, too is following the footsteps of SIL. I almost said
this, one day in the class also. On July 1, 1988 when I found my salary was
not credited in the account because the Manager (F & A) could not mobilise
the non- plan grant cheque from the MHRD on time to deposit in the bank,
I was convinced that if necessary steps are not taken to overcome
dependence on government, through increasing activities to critical size and
get the institute out of stagnation, we may face the same problems that SIL
was facing. This concern became almost a conviction with time and led me
to plead with the first and the next director to make all out efforts to increase
the PGP intake, which became a reality after I completed another case study,
on Apollo Hospital Enterprise Ltd. My belief helped a lot in bringing similar
changes in another institute when I assumed charge there as the Director.
APOLLO HOSPITAL ENTERPRISE LTD.

(1988-89)
The case study of Apollo Hospital Enterprise (AHEL) was a very unusual
event. I was Chairman Placement of the first two batches. The institute had
very skeleton infrastructure and faculty member were not very keen to help
136
in organizing and conducting the placement activity, not being an academic
activity.
One day two general managers of AHEL came for placement interviews.
Since some students were busy in group discussion with a company and
some others with another company, the candidate shortlisted by AHEL were
not available to start selection exercise. Being the only person who was
available, I was entertaining them. Suddenly one of them said “Why don’t
you write a case study on marketing challenges faced by AHEL, the first
corporate hospital in India?”
I tried to wriggle out by telling them low DA rates of the institute with which
one can’t stay in Chennai. They offered hospitality in their hotel, within our
DA rules. I asked permission from the Director who approved the same. I
went there during summer vacation for a week.
Like SIL I started with collecting and analysis annual reports and accounts
and interviewing General Manager, Medical Superintendent Chief
Executive (Finance Head), Food & Beverages Manager, Matron In charge
of House Keeping, Jt.Chief Executive and finally the Chairman. Each
interview gave some interesting experience and insight.
The first experience itself was a surprise. The General Manager (Personnel)
put me in the lift and asked me to go to fifth floor, where his office was
located, saying that he will follow. On reaching his office I asked why he
did not accompany me, he replied the lift was only for use of patients,
Chairman & guests. Others, including Joint Chief Executive (daughter of
Chairman) used to go walking up on ramp, several times a day, even though
her office was on 5th floor. I could see the customer focus as the super
specialty hospital that was created to save life, not to encash the miseries of
people.
The visit to housekeeping matron was even more educative. The lady was
engrossed in counting bed linen and pillow cover while I was waiting for
15-20 minutes. I was feeling little upset for her ignoring me, a recently
promoted “Professor” of an IIM. I asked her why she had been ignoring me
for this long. She apologized saying that the hospitals own laundry was not
137
able to cope with increasing washing requirements and the hospital had to
outsource the task partly. “But you could have counted it later”, I told. To
this she replied that it was time to change bed linen and that it was done
twice a day. Not realizing the issue, I quipped “Why to change every day.
This could be done once in a week or when the patient goes”. To this her
response was a shock. With open mouth and wide eyes she gasped to say
“but what will happen to the patient?”. The hospital was trying to reduce
recovery period; so that more people in the queue (in critical condition all
over the country) could be saved. After all there were only few hospitals in
1988 to perform heart surgery. Preventing infection through better hygiene
was one way to reduce this queue. From Chairman to liftman, from general
manager to matron everyone was clear about the mission, to save life of
patients in the country. I could see mission translated into shared values (of
7’S model) that made Apollo a success in eighties.
Similar experience was with Food & Beverages Manager, a former manager
of a five star hotel. When I said during course of discussion that his
experience at the hotel must have been great a help in his job, he said it was
just the opposite. “We have to prepare 700 customized liquid diet, every
day as each patient is different with varying level of blood sugar and
pressure. Also guest care was very demanding. If an order was not served
in 30 minutes there won’t be any charge. This was done to ensure quality
(timeliness) of service. Because if the mother, wife or a close relative of a
patient in critical condition, from far of places is not cared properly it could
adversely impact on timely recovery of the patient, which may lead to
patients in queue, having to wait longer”.
What intrigued me the most was the size of the rooms of general managers,
which was less than half of the size of room of an Assistant Professor today.
The size of the room of the Joint Chief Executive seemed even smaller.
Later while analyzing the accounts I realized the reason, the larger size
would have reduced the number of beds and the queue of patients in critical
condition would be longer, at great risk of their life. On return I was mad.
A typist who was assistant to the Chief Administrator Officer (who had left),
was occupying full room for which monthly rental was Rs.1000/- (her pay
Rs.300), while the two general managers with pay more than that of our
138
Director, were occupying half the size of the room. I knew there was no
shortage of resource, but more of wastage, caused unknowingly.
The meeting with Joint Chief Executive and Chairman revealed that
Dr.Reddy had neither money, nor expertise or technology, nor specialist
doctors to man the hospital. The banks were not willing to give loan (as
corporate hospital were not considered industry in those days), nor customs
gave any duty concessions for import of diagnostic equipment. Advertising
of medical services was looked down upon. Dr. Reddy had to organize all
the resources and infrastructure to create AHEL, triggered by death of a
close friend whom, I was told, Dr. Reddy valued as a man of high social
relevance and value. His death touched Dr. Reddy’s heart. I realized the
role of heart in a noble business that drives one to create an organization to
serve the society, overcoming all obstacles, something that misses in
organizations that are established, funded by agencies and run by technical
experts.
While the experience of interviews and data collection was fascinating and
great learning, the experience of writing the case was quite depressing and
frustrating initially. On return I drafted the case, which was quite long,
about 40 pages or so. I could not compress or split in parts.
Not knowing how to proceed, I sought help of a younger colleague, an

Assistant Professor in Human Resource Management Area. Giving a copy
of the write up and sought his comments as he had recently attended a
programme on writing case by two eminent experts. I did not have any such
experience. After a month I reminded him. He said he would do it soon. A
week passed. One day while returning home together I reminded him again.
He stopped and said, “Do you really want my honest feedback?” On my
saying yes, he remarked, “throw it in the dustbin. It is not a case material.
It is narration of what you saw and your flattering views”.
I was stunned shocked and felt even humiliated. After a while I said “OK,
give me one more chance”.
I redrafted the case, putting facts without flattering comments and

rearranging the information, to the best of my abilities. This time I also
139
prepared a note, explaining why I wrote the case and how I intended to use
it in the class. I gave the two write-ups with the request to please look at it
again and instruction that if he felt the same again, he could throw the case
in dustbin himself.
A week later he came to my room, appreciating the case with a flattering

remark, “I thought Business Policy course is all bla-bla. My God, what a
wonderful case this is. I can understand what you teach in the class as
Business Policy”. I realized the importance of teaching note as an integral
part of case writing.
If SIL case was an epitome of “Strategies Incoherence”, AHEL illustrated

strategic coherence wonderfully.
If I had not written the case SIL, I would not have been unduly concerned
about increasing PGP intake from 30 to 105, to ensure economic viability
and reduce the dependence on the government (as a sick company) and see
the MHRD’s support flowing on improving performance. On the other hand
if I had not written the case AHEL I would have never got confidence to
accept the responsibility of same, when I was asked, and deliver results
PARCTAULICONSORTIUMHOSPITAL
(1991-92)
The reason, experience and process of writing this case series and the lesson
arising out of this case were unique in many ways, which prompts me to
write this story.
By 1991, I had been teaching Business Policy (now Strategic Management)

for four years. As I also felt difficult to teach a subject/topic which I have
not seen in practice, I was looking forward to write a case on
Acquisition/Merger to illustrate the topic as a strategic option in the
Business Policy course. Indian organizations, which had experience, had
regretted to my request and there were not many companies using the
strategy prior to 1991, as it was not valued highly and ethical, especially in
view of MRTP Act.
140
In 1991, I was deputed to ESADE Barcelona for 9 months under Euro-India
Cooperation and Exchange programme. There were 8 other leading schools
from Germany, France, Italy, UK, Belgium and Netherland, but I had
consented for ESADE, because I was informed that they were having a
centre for Mergers and Acquisitions. However, on reaching there I found it
had yet to make a significant head way. One day I happened to meet a
professor of Behavioural Science. I told him my disappointment. He too felt
sorry, but mentioned there is a faculty who is a doctor by name Manel Peiro,
who and had written memoirs of a merger of four hospitals, one of which
had been under the ownership of his grandfather.
The meeting with Dr. Manel Peiro was not very encouraging. He was a very
nice person but extremely busy and could not spare time to share his
experiences. I asked for a copy of his memoirs, but he replied “no purpose
would be served because I would not be able read it as the same was written
in Catalan language, not even Spanish.” I told him, “it did not matter, as I
did not know either of the two languages, but if he could give a copy I can
try deciphering the same”. He was kind enough to lend me a copy.
The librarian too helped me by lending a Catalan-English dictionary. With

a thermos full of tea, I sat every night trying to make sense, reading a word,
finding 4-5 meanings. After seeing the meaning of all the words in a
sentence, I tried to gauge what the sentence could be. In a weeks’ time I
picked up speed and in a fortnight I was able to translate about 4-5 pages
and type it out on a laptop given by another friend in computer centre.
Since there was no way to meet Dr. Manel Peiro, I sent 4-5 pages in English
by ESADE mail system (a fascinating system managed through few 4-5
security and other staff people, to cater to needs of over 80 regular and over
200 visiting/guest faculty) to request the doctor to comment on my
translations, enclosing a copy of it.
Next day morning I got the reply from doctor and the typed papers with few
comments. Doctor was highly appreciative of my work. He was still sorry
that he could not spare time for me to discuss the issues, but promised to
promptly check my drafts of translations and return the very next day. He
141
stuck to his promise and that encouraged me to do something for which I
had limited expertise.
As I translated more and more, a framework started emerging. What is the

imperative of clear top management power structure determined by the
ability of the concerned parties to contribute, the negotiating power of the
concerned parties etc.; became clear. It formed the first part. However, all
of a sudden I started feeling that all that I was reading in the memoirs, I have
seen somewhere, but where? One night I recollected, “BHEL, Oh, I had seen
it happening as a young engineer, in the merger of Bharat Heavy Electricals
and Heavy Electricals India Ltd.”
I found the same tasks, same challenges, spread all over the pages. I had
glimpses of it as “happenings” in HEIL and BHEL merger, but would not
have been able to comprehend it easily. The write-up helped in
conceptualising the heat and dust and the turmoil that is associated with a
merger, merger of four “sick hospital”, which once successfully managed,
led to emergence of an Olympic referral hospital, five years later.
The description led to a model for successful management of a Merger,

captured in (B) part of the case.
Dr. Manel Peiro, who had encouraged me all through, was very impressed
with the two- part case study and took me to the hospital, driving me some
30 km away. What I saw there was an even greater surprise. The workers
were agitating, but ensuring that the patients do not suffer. The organization
chart bringing the patient care to the focus with administrative function
around it to support doctors take care of patients. No compromise on mission
“Patient care” as I had seen during ApolloHospital study (1988). Another
aspect that became very apparent was the unique way of encouraging two-
way communication. This required that part (C) be written.
The three-part case study was given permission for use by the management
in a week’s time and the case study became the only completed work
presented in the closing seminar of the batch.
142
For completing the case, I was trying to identify the relevant bibliographical
reference. I scanned the entire literature available in ESADE’s library,
covering various topics and aspects of Mergers and Acquisition, but could
not find suitable reference for what I wanted, the post-merger integration
tasks and challenges. The model developed for exploring the determinants
of successful post-merger integration resulted in the teaching note emerging
as a research paper.
Since I had collected topics covering various aspects of mergers and

acquisition, I designed a 3 day Management Development Programme and
15 session ½ credit course for PGP in consultation with two faculty
members of ESADE, both turning out to be first timers in the country, far
ahead of time (1994) when the Merger and Acquisitions became a much
sought after strategic option as the first economic decline started in the post
liberalization era, 1998 onwards.
There were many (over all some 20) off shoot benefits (accruing between
1992 to 2011), of the experiences of writing case study on Parc Tauli
Consortium Hospital, which I could never visualise while writing the case,
each one of them being a new experience.
SCOOTERS INDIA LTD. (D)

(1999-2000)
The experience of writing Scooters India Ltd. (D) case was as unique as
unusual (full of surprises) and as valuable as gratifying. The Executive
Director had become a friend when I was writing SIL (A), (B) and (C) case
series. But I had lost touch with him for the next 4-5 years. Later when we
met he had been appointed as Executive Director. Then we started meeting
occasionally and he used to narrate some interventions that he was making
to resurrect the company. However, since these were casual talks, neither I
realized the importance of his work, nor had time to enquire details, due to
various family and office preoccupations and the distance between SIL and
IIM Lucknow, as we had moved to our campus some 40 km away.
143
About ten years later, in 1999, I visited SIL again in connection with
summer placement of a management student. Since I knew some of the
people there, I started enquiring about the developments since my last visit.
The developments were striking; the production growing manifold, product
line switching over, clean and clear shop floors and so on. I was quite
impressed with all these developments. But the biggest surprise came when
they mentioned that the company had come in net profit. It was
unbelievable. A public sector company in India, set up with machinery
bought from a factory (closed around thirty years ago) in Italy, on “as is
where is basis”, coming in net profit, for the first time, in its silver jubilee
year? Nowhere in the management literature I had read this kind of miracle
in the world.
When I was talking to the executives, the young first year management
student, was jotting down something in her writing pad. I did not know what
she was doing exactly. On return I saw her scribbling and was stunned,
sufficient data for developing a powerful case material for management
programmes.
I then got interested and involved in converting it, with some additional data,
into a full fledged case study. It was later presented in a conference and
finally published in Vikalpa, IIM Ahmedabad’s management journal. The
case study describes ten years slogging by the people of SIL, to turnaround
and transform a company, which had been ailing for 25 long years. The
experience makes the task of turnaround and transformation conceptually a
simple one, conceptually, but managerially a hard, daunting one. It gives
confidence that the “impossible” can be made “possible” by a leader who
“wants to matter”. It is a powerful case and can make one believe that a
company’s fortunes can be changed for better from any stage, by a
determined socially conscious leader.
The case had immense educational value as it narrates how the decline of
Indian industry could be arrested, in an era (1999- 2004) when the Indian
industry was collapsing and economic decline was steep. The response of
policy makers and ill equipped industry leaders was reactive, “exit” and
“downsizing” and alike, instead of correcting and resurrecting. Two
questions bothered me most at that time, exit “where” and exit “when”. If a
144
company can come in net profit for the first time even after 25 long years,
when to say “exit”. At the same time where the people of the country with
high unemployment level will go, if the company is closed? If only the
policy makers and industry leaders had faith in Indian Hanumans also, rather
than only on borrowed technology, material and wisdom from abroad, the
condition of Indian economy perhaps would have different, a shade better.
I feel pity on the countrymen, who seem to be determined to miss wonderful

opportunities to serve not only India, but the whole world. The dearth of
literature on Indian experiences does not allow the country of 1200 mn
brains to serve 10 to 100 times smaller countries with Indian expertise.
Instead it looks up to smaller countries to solve the problems of a country
that is 10 to 100 times larger.
The experience has been a very gratifying too, a young student leading way
for my joining to write a case which I could not have thought of. Nor I had
such note taking ability to catch the opportunity. I then started believing that
the young students and faculty members have great potential to take care of
country if only properly guided and encouraged by senior colleagues and
administrators of management education.
The experience of writing SIL (D) case also helped me in facing challenge
of resource crunch, staff agitation, construction project delays, standoff of
IIMs with MHRD and still forge ahead with limited resources, several
constraints and locational disadvantages, to give impetus to academic
activities, diversification, cost cutting/ reduction, meeting OBC quota
requirements and above all, putting the institute on sound financial footing,
drawing upon the SIL (D) experience of building on limited resources and
also support from various stakeholders, including even so called
competitors.
To be continued…
145
INSTRUCTOR’S MANUAL FOR CASES
(Available on request*)
USEFUL RESEARCH PAPERS RELATED TO STRATEGIC
MANAGEMENT(Available on request*)
1. Sectoral Moulds in Management, WP N0.1, IIML, 1993

2. ParcTauliHospital (A), (B) and (C) (Case Study)
(Case presented in the 2nd Case Colloquium of World Association for
Case Method Research and Application, Sweden, June 15-16, 2001)
3. A Study of Indian Foreign Collaborations, WP No.10, IIML, 1994
(Presented in the First International Conference of Euro-India
Co-operation and Exchange Programme, June 25-26, 1994)
4. Perception of European Executives about India as a Business
Partner, WP 11, IIML, 1994
(Presented in the First International Conference of Euro-India
Co-operation and Exchange Programme, June 25-26, 1994)
5. Determinants of the Ex- post Performance of Mergers &
Acquisitions: A Case Study, WP. No. 7, IIML, 1994
(Presented in the 6th National Convention of Association of Indian
Management Schools August 25-27, 1994)
6. Learning by Doing: An Experiment on Case Writing as a
Pedagogical Tool", WP No.8, IIML, 1994
(Accepted for presentation in 11th International Conference of World
Association for Case Method Research and Application, Montreal June
18-22, 1994)
Management Schools, Delhi, August 25-27, 1994)
7. A Survey on the Usage and Development of Case Material for
Management Education and Training in SAARC Countries, with
special reference to India", WP No. 9, IIML, 1994
(Accepted for presentation in 11th International Conference of
World Association for Case Method Research and Application,
Montreal June 18-22, 1994)
146
Management Schools, Chennai, August, 1995)
8. Grooming the Strategists: The HRD Challenge, WP 12, IIML, 1994
(Presentation in the 23rd International Conference of the
International Federation of the Training and Development
Organisations, November 8-10, 1995)
9. Imperative, Challenges and Task Requirements of Becoming a
Global Player, WP No. 4, IIML, 1997
(Presented in the Conference on Economic Foundations for Strategic
Management, Indira Gandhi Institute for Development Research,
Bombay, Aug. 21-22, 1997)
10. Kaiserganj Railway Workshop (Case Study)
(Case presented in the 6th Case Colloquium of World Association for
Case Method Research and Application, Sweden, July 5-7, 1998)
11. Scooters India Ltd. (Case Study) W.P. No. 2000/08, IIML, 2000
(Case presented in the 2nd Conference of Strategic Management
Forum, Indian Institute of Management, Bangalore, May 27-29, 1999)
12. Imperative, Challenge and Task requirements of New Product
Development
(Presented in the 2nd Conference of Strategic Management Forum,
Indian Institute of Management, Bangalore, May 27-29, 1999)
13. Making the Crippled Dance, WP No. 2000/ 05, IIML, 2000
(Presented in the National Seminar on Managing and Sustaining High
Performing Organisations, Indian Institute of Management, Lucknow,
April 2000)
14. Exit or Renaissance, WP No. 2000/ 07, IIML, 2000
(Presented in 3rd Conference of Strategic Management Forum, Indian
Institute of Management, Calcutta, May 2000)
15. New Product Development: Imperative, Inhibitors and Coping
Strategies
(Presented in the Round Table on "India's Design and Management
Programmes", National Institute of Fashion Design, New Delhi, Sept.
21, 2000)
16. New Product Development: Key challenge to Indian Firms in the
Liberalised Era
147
(Presented in the National Seminar on Prospects of Industrial R & D
in India under Globalisation, Indian Institute of Technology, Kanpur,
Feb.6-7, 2001)
17. Meeting the Challenge of a Borderless Economy: Needed a Policy
Shift? WP No. 2000/ 14 IIML, 2000
(Presented in the Opening National Seminar on WTO and Allied Issue:
Indian Institute of Management, Lucknow, February 24-25, 2001)
18. Indian Business Ventures Abroad, WP 2001/ 21, IIML 2001
(Presented in the 4th Conference of Strategic Management Forum,
Indian Institute of Management, Ahemedabad, May 24-26, 2001)
19. An Experiment on Using Live Case Method in India
(Presented in the 18th Conference of World Association for Case
Method Research and Application, Sweden, June 17-20, 2001)
20. To Wind up or to Run (Case Study)
Case presented in the 8th Case Colloquium of World Association for
Case Method Research and Application, Sweden, June 15-16, 2001)
21. Fallout of Liberalisation: Performance of Indian Industry in Post-
libralisation Era,W.P. No. 2002/ 05, IIML, 2002
(Presented in the Second National Seminar on Meeting the WTO and
Allied Issues, Indian Institute Foreign Trade. New Delhi. February 2-3,
2002)
22. Bharat Latex Ltd.
(Case presented in the V Annual Conference of Strategic Management
Forum, Management, Development Institute, Gurgaon, April 25-27,
2002)
23. From Business of Education to Education of Business: Emerging
Challenges to Management Education
W.P. No. 2002/ 15, IIML, 2002
(Presented in the 16th Annual Convention of Association of Indian
Management Schools. AmityBusinessSchool, NOIDA, August 23-25,
2002)
24. From Tool Down to Retooling: Emerging Challenges to Labour and
Unions In the LPG Era
W.P. No. 2002/ 16, IIML, 2002
148
(Presented in the Tripartite National Seminar on Emerging Challenges
to LabourMahatma Gandhi Labour Institute, Ahmedabad, October 26-
27, 2002)
25. Foreign Collaborations in India: A Study of Patterns In the Pre and
the Post- liberalisation Era
W.P. No. 2002/ 14, IIML, 2002
(Paper accepted for presentation in Conference of American Society for
Competitiveness October 10-12, 2002,Virginia, U.S.A.)
(Presented in the International Seminar on Management of R & D, IIT,
Delhi, January, 10-11, 2003)
26. International Tourism in India: Strategic Significance, Gaps and
Vulnerabilities
W.P. No. 2003/ 02, IIML, 2002
(Presented in the 3rd National Seminar on WTO and Allied Issue,
organised by Strategic Management Forum, University of Goa, TERI
Goa and International Centre Goa, Feb. 21-22, 2003)
27. Corporate Leaders of India: A Study of Their Contribution and
Performance in the Post Liberalisation Era
W.P. No. 2003/ 01, IIML, 2002
(Presented in the VI Annual Conference of Strategic Management
Forum, by Strategic Management Forum, XLRI, Jamshedpur, (April 24-
26, 2003)
28. How Leveled is the Playing Field: Strategic Disadvantages of
Developing Countries- the Case of India
(Presented in the VII Annual Conference of Strategic Management
Forum, by Strategic Management Forum, IIM, Indore (May 13-15,
2004)
29. Fragility of Indian Corporate Sector
(Presented in the VIII Annual Conference of Strategic Management
Forum, by Strategic Management Forum, IIFM Bhopal, (May 10-12,
2005)
30. Patterns of Corporate Tax Payments
Presented in the 2nd Conference on Global Competition and
Competitiveness of Indian Corporates IIM Kozhikode (2007)
149
31. Adequacy and Effectiveness of Indian Tourism Websites for
International Tourism in India
Presented in the 2nd Conference on Global Competition and
Competitiveness of Indian Corporates IIM Kozhikode (2007)
32. Competition, Competitiveness and Dependence
Presented in the3rd Conference on Global Competition and
Competitiveness of Indian Corporates IIM Lucknow (May 29-31,
2008)
33. Frightening Developments in Foreign Trade and Balance of
Payments: Do we have necessary and effective Policy Safe Guards?
(Presented in the XV Annual Conference of Strategic Management
Forum, by Strategic Management Forum, IIM Indore, (May, 2012)
34. Kingfisher Airlines
(Case presented in the XVI Annual Conference of Strategic
Management Forum, by Strategic Management Forum, IIM
Kozhikode (May, 2013)
35. Economic Emergency: Is it a Hoax Call?
36. Lessons from Coal Block Allocations
(Presented in the XVII Annual Conference of Strategic Management
Forum, by Strategic Management Forum, IIM Calcutta, (June 10-12,
2014)
37. Strategic Gaps in Make in India Call
(Presented in the XVIII Annual Conference of Strategic Management
Forum, by Strategic Management Forum, IIFT New Delhi, (Dec. 17-
19, 2015)
38. Strategic Significance of Integrative Thinking
(Presented in the XVIII Annual Conference of Strategic Management
Forum, by Strategic Management Forum, IIFT New Delhi, (Dec. 17-
19, 2015)
39. Adani Enterprises Ltd.
(Case presented in the XVIII Annual Conference of Strategic
Management Forum, by Strategic Management Forum, IIFT New
Delhi, (Dec. 17-19, 2015)
* Contact : Prof. Krishna Kumar kk661946@gmail.com

150
CASE SETTINGS
Business/ Geog.
Involves Type
Sl. Focus on Enahan Stratgy Products/ Ownership Area of
Mgt of
Case Title cing Service Operations
No. Strategy Change Integ Interface Case /Coverage
rative
Issues Thinking with
Marketing of Bank Services: The

Nationalised
Case of TravellersCheques Implementation Mktg Issue Banking All India
Bank
1 Integrated Management Jan.1982 Y
Electrical
2 TakshilaEngg. Corpn. Ltd. Implementation Y InfSyst Historical PSU -do-
Engg.
Janata Bank (Case on Formal
Control Nationalised
Control Systems) Indian Implementation Y -do- Banking -do-
Syst Bank
3 Management Jun. 1984
Kamini Bank (Case on Management
Nationalised
of Change) Indian Management Implementation Y IR -do- Banking -do-
Bank
4 Jun.1984
Nationalised
5 Growth Bank -do- Y Personnel Mgt -do- Banking -do-
Y Bank
Nationalised
Implementation Y Inf. Syst Historical Banking -do-
6 Viplav Bank (Case on MIS) Bank
Strategic Artificial Limb Private
7 Shilpi& Co. Formulation Issue Gujarat
Y Coherence Manufacturing Sector
Vikas Bank (Case on Resource Res. Nationalised
Implementation Y Historical Banking All India
8 Allocation) Allocation Bank
9 Mein Kamph (A) Implementation Y HRD -do- Manufacturing PSU -do-
10 Mein Kamph (B) -do- Y HRD -do- -do-
Nationalised
11 First National Bank -do- Y Structu& Cost -do- Banking -do-
Y Bank
Formulation & Strategic Nationalised
12 Bombay Bank (A) Historical Banking -do-
Implementation Coherence Bank
Scooter/2w
13 Scooters India (A) -do- Y Tech & Fin -do- PSU -do-
Y manufacturing
151
14 Scooters India (B) -do- Y Y Mktg -do- -do-
15 Scooters India (C) -do- Y Y Oper&ProjMgt -do- -do-
Strategic Electrical
16 Scooters India (D) -do- Y -do- PSU -do-
Y Coherence Engg.
Formulation & Strategic Private
17 Apollo Hospital Enterprise Ltd. Y -do- Hospital -do-
Implementation Y Coherence Sector
Central Institute of Medicinal and
Aromatic Plants (Case on Planning Formulation -do-
18 & Control) Issue R&D Government
The Molehill (Case on scheduling HR &
Implementation Historical -do-
19 under multiple constraints) Scheduling Academic Autonomous
20 Vindhya MatsyaVikas Nigam Ltd. Formulation Issue Fisheries State PSU U.P.
Formulation & Strategic
21 ParcTauliConsortiumHospital (A) Y Historical Hospital Private Spain
Implementation Y Coherence
Strategic
22 ParcTauliConsortiumHospital (B) Y -do-
Y Coherence
Strategic
23 ParcTauliConsortiumHospital © Y -do-
Y Coherence
Private
24 Suman Industries Ltd. -do- International -do- Diversified Multinational
Sector
Private
25 Growth Pharm. Ltd. -do- International -do- Pharmaceutical Multinational
Sector
Surprise Institute of Technology
(Case on Organisation Diagnosis) Implementation Y Org. Diagnosis Historical All India
26 @ Education Autonomous
Kaiserganj Railway Workshop
(Case on Transformation),(Co- Implementation Y HR/ IR -do- -do-
27 authored) Mfg Government
Bharat Latex Ltd. (Case on
Formulation -do-
28 Corporate Strategy) Issue Mfg PSU
To Run or to Closed Down (Case
on Survival Strategy for a Group of Formulation Y Operations -do- State PSU U.P.
29 Sugar Mills) @ Sugar
Is Small Beautiful (A)? (Challenges
Stakeholders
to a new leader in public sector -do- -do- All India
& Leadership
30 institution) Academic Autonomous
Is Small Beautiful (B)? (Challenges
Stakeholders
to a new leader in public sector -do- -do- -do-
& Leadership
31 institution) Academic Autonomous
32 Is Small Beautiful (C)? (Project Formulation & Y Creativity/ Historical Academic Autonomous -do-
152
Management as Road block in Implementation ProjMgt
Strategy Implementation)
Is Small Beautiful (D)? (Leveraging Creativity/
-do- Y -do- -do-
33 Delays in Project Management) ProjMgt Academic Autonomous
Is Small Beautiful (E)? (Strategy Strategic
-do- Y -do- -do-
34 Implementation) Coherence Academic Autonomous
Is Small Beautiful (F)? (Strike-
Implementation Y IR -do- -do-
35 Managing by heart) Academic Autonomous
Is Small Beautiful (G)? (Containing
-do- Politics -do- -do-
36 faculty politics) Academic Autonomous
Is Small Beautiful (H)? (How to
Formulation & Creativity/
improve infrasturture asset Y -do- -do-
Implementation ProjMgt
37 utilisation) Academic Autonomous
The Fun of Case Writing (A)
-do- Leadership -do- -do-
38 (Growth is not such a difficult task) Y Academic Autonomous
The Fun of Case Writing (B)
Creative
(Tasks, Complexities and
-do- Y Problem -do- -do-
Challenges in Strategy
Solving
39 Implementation) Y Academic Autonomous
Weaving &
The Power of Check Listing (How Implementation Y Losing -do- -do-
40 we miss the opportunities) Opportunities Academic Autonomous
Do We Matter? (Management Weaving
-do- Y -do- U.P.
41 Perspective and Change) Y Opportunities Electricity PSU
The Essence of Case Writing (Why
-do- Y Governance -do- All India
42 things don't happen) Academic Autonomous
The Time Estimates (Project
-do- Y ProjMgt -do- -do-
43 Management in Backyard) Y Academic Autonomous
Leadershi[
The Power of Interior Design Formulation & &Creative
Y -do- -do-
(Innovation in Strategy Formulation Implementation Problem
44 and Implementation) Y Solving Academic Autonomous
Institute of Information Technology
Formulation & Fin &
(Problem of Portfolio Management Y Issue -do-
Implementation Portfolio
45 and Implementation) Academic Autonomous
U.P.State Tourism Development Strategic
46 Formulation -do- Tourism State PSU All India
Corprn. Y Coherence
Forest
47 Vindhya Pradesh Forest Corporation Implementation Y Control Syst Issue State PSU U.P.
Products
48 CityMontessoriSchool Implementation Y Leadership -do- Education Private U.P.
153
Sector
Industrial Toxicological Research
Centre (Problems in Strategy Formulation All India
49 Formulation)$ Issue R&D Government
Rewards Galore (Case on Incentive HR &
Implementation Y Historical -do-
50 System and Leadership) Y Governance Academic Autonomous
Promoting Excellence (A) (Case on
HR &
Management of Academic -do- Y Issue -do-
Governance
51 Personnel) Academic Autonomous
The Research Incentives (How to HR &
-do- Y Historical -do-
52 discourage through policies) Governance Academic Autonomous
AcademicResourcePark (How do HR &
-do- Y -do- -do-
53 we miss opportunities) Governance Academic Autonomous
The Management Case Tree Weaving &
(Advantages of Serviving through -do- Y Losing -do- -do-
54 Collaboration) Y Opportunities Academic Autonomous
Surprise Institute of Management
(C) (Making simple things -do- Y Governance -do- -do-
55 complex- Focusing on Irrelevant) Academic Autonomous
Surprise Institute of Management
(D) (Making simple things -do- Y Governance -do- -do-
56 complex- Focusing on Irrelevant) Academic Autonomous
Whom do we follow? (How to be
Leadership -do-
57 follower than leader institution) Issue Academic Autonomous
Creation of a Computer Centre for Weaving Nationalised
Implementation Y Historical -do-
58 Training Y Opportunities Banking Bank
Y -do- All India
59 Kingfisher Airline Implementation Y Coherence Aviation Sector
Power of a Missed Meal (Strike- IR & Nationalised
Implementation Y -do-
60 Managing by heart) Leadership Academic Bank Kerala
HR &
-do- Y
61 Promoting Excellence (B) Governance Academic
62 The Popat Social Resp -do-
Y Historical
63 Adani Enterprise Ltd. Implementation Coherence Diversified Sector Multinational
Formulation & Strategic
(Diversification- There is room for Y -do- All India
Implementation Coherence
64 every player) Academic
65 The Thieves Social Resp -do-
66 PCDF Formulation Env Historical Dairy Products Cooperative U.P.
154
67 U.P.StateBridgeCorpn. -do- Env -do- Construction State PSU -do-
69 Kick of Creativity
70 The Experiment
71 Mission at Grassroots
72 The Two Worlds
73 A Livewire Information System
74 The First Beneficiary of OBC
75 Reservation
Birth of an Orphan
76 Hanumans of India
77 Gifts of God
78 Assets or Liabilities
79 Manpower
80 Who is better off
81 Shabashi
68 Short Stories on Case Writings New Learnings Y HRD -do-
48 22
Cases in Separate Volume V
155
USE OF CASES IN STRATEGIC MANAGEMENT COURSES
156

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CASES

Prof. Krishna Kumar

Dr. Krishna Kumar has been a Professor of Strategic

Dr. Ritu Srivastava is an Assistant Professor of Marketing at

Ruchi Srivastava is a multifaceted personality with varied

Prof. Krishna Kumar

Price Rs. 250/- Paper Back (Postage Extra)

For ordering copy of the book contact:

Ruchi Srivastava roocheesri@gmail.com

Vol. I Vol. II Vol. III Vol. IV Vol. V *

Sl. Title of the Case Teac # Case

Takshila Engineering Corporation Ltd. (Case

Apollo Hospital Enterprise Limited (Case on

The Fun of Case Writing (A) (Growth is not

42 Kingfisher Airline A 26 c59

59 Kingfisher Airlines ........................................................................... 15

INSTRUCTOR’S MANUAL FOR CASES ............................................ 146

USEFUL RESEARCH PAPERS RELATED TO STRATEGIC

CASE SETTINGS ......................................... Error! Bookmark not defined.

USE OF CASES IN STRATEGIC MANAGEMENT COURSES........ 156

My Students and Faculty Fraternity

Who Inspired Me for Over

Develop Teaching Material

Several compelling reasons have lead to preparation ofthe revamped case

The casesmay instil challenges confidence to face strageic liketurning a

While it is always desirable to go through case method of teaching through

"We are committed to achieving our ambition of making Kingfisher

Grounding of Kingfisher was not an isolated event. Several Airlines started

Establishedin2003, Kingfisher Airlines Limited was an airline group

The Take Off

When KingfisherAirlinesbeganitsoperations, there was no other airline that

Kingfisher hoped to provide superior experience in air travel and be ahead

Aircraftsare one of the

Vision and Mission of a company plays very important role in the

Vision: Value: Mission:

Moreover, the competition was becoming intense

With airport modernization in metro cities set to be completed between 2008

Now Kingfisher was carrying 10.9 Million passengers

The marketing issues however continued to plague the company.

High Up in the Sky: Foray into International Operations

KingfisherAirlinescontinueditsrun of beingthe nation’slargest passenger

The Dark Clouds: Loss of Market Share

Turbulence at High Altitude: Exit from Low Fare Business

KingfisherAirlinesfortheveryfirsttimedeclaredin Sept. 2011thatitishaving

“Kingfisher has run up a debt of Rs 6,000 crore, accumulated losses of Rs

Regarding future course the Business Standard reported46:

The Grounding of Airline: Suspension of Operating License

The beginning of year 2012 marked the mostturbulent period

By October the situation reached a flash point. A lockout was declared on

On October 20, 2012, the DGCA suspended the operating license of

The Financial Crisis

The Challenges Ahead

The suspension of operating license was a serious development because for

Etihad Airways Offer

Jetlite 2007 2012 Mumbai

Airline Y.E.31/3/02 Y.E.31/3/0 Q.E.06/06 Q.E.03/07 Q.E.03/08

JetLite 8.12 7.4

Sahara 4.8 9.3 9 AcquiredbyJetAirways

AirDeccan 19 18.6 14.6

Kingfisher 8 10.6 14.5

SpiceJet 6 8.1 10.3

Paramount 1.5 1.2

Others 5.6 5.2 1