Suparshva Swabs India: Growth after Covid-19

Suparshva Swabs India (SSI), a family-owned firm started by Brij Mohan Jain and his sons in 1992, when India was going through liberalization, began its journey in the personal-hygiene category by launching high-quality cotton swabs (also known as cotton buds). SSI had steadfastly managed environmental challenges on the regulatory, economic, financial, and competitive fronts to offer good-quality products in India at an affordable price. In early 2020, as COVID-19 struck the whole world and the Government of India was under pressure to increase the number of COVID-19 tests conducted per day, the high costs of importing cotton swabs from the United States, Italy, and China exacerbated the crisis, making real-time polymerase chain reaction (RT-PCR) tests unaffordable for the average Indian and reducing the number of tests conducted per day. SSI identified the opportunity to produce swabs indigenously in India and substantially bring down the costs. With very little time to respond to the challenge and meet the government’s demand with a price acceptable to all stakeholders, SSI worked within severe time and cost constraints to make this possible. In August 2022, as the intensity of COVID-19 tapered off and a slew of substitute consumer-friendly methods for testing were arriving in the pipeline, SSI needed to determine what strategic alternatives were available for growth from this point.

This case can be used to teach strategic management and the ways in which small-scale manufacturers recognize and exploit market opportunities and operate in highly uncertain and constrained conditions. It helps students understand how entrepreneurs manage environmental factors, take quick decisions, and implement them with speed. The case will also be helpful in a strategic marketing course, wherein the students will understand the linkages of external factors with the overall marketing strategy. This case traces the journey of a start-up trying to make its mark in the personal-hygiene market of the fast moving consumer goods (FMCG) sector; reaching a crossroads owing to a highly challenging environmental situation; and developing strengths in manufacturing, product and process innovation, frugal value chain operations, channel management, and human resources in the process of dealing with these circumstances. The case also presents possible future paths this firm might traverse. After studying the case and working on the assignment questions, students will be able to do the following:<br><br><ul><li>Explain how a first-generation entrepreneur can be resilient in facing challenges and continuously staying competitive in the market.</li><li>Describe how entrepreneurs execute an idea with frugal innovation.</li><li>Describe the uncertain and highly regulated business environment surrounding small and medium family-owned businesses.</li><li>Explain how an entrepreneur can identify and exploit a market opportunity.</li><li>Identify the entrepreneurial qualities needed to respond to market forces.</li><li>Outline the role of time pressure in enhancing a firm’s innovation capability.</li></ul>

• COVID-19
• Frugal Innovation
• Opportunity recognition
• Personal health & hygieneindustry