Sahaj e-Village Limited, an initiative of SREI Infrastructure Finance Ltd, hoped to answer the need of the Indian government's National e-Governance Plan (NeGP) to set up 100,000 Common Service Centres (CSCs) across rural India in 2006. This figure was subsequently revised to 250,000 CSCs in 2009. Sahaj aimed to bridge the digital divide between urban and rural India and set up one of the largest brick and mortar --and human --networks in rural India. With close to 27,000 IT-backed centers in villages with a population of less than 10,000 and 50 critical services in the domains of microinsurance, education, utility and government-to-citizen (G2C) services to over 300,000,000 rural people, Sahaj e-Village was literally taking urban services to the remotest nooks of rural India. Sahaj CSCs would provide rural consumers with direct access to modern, state-of-the-art technological facilities and computer education, thus dovetailing with its long-term plans of providing Internet connectivity across rural India. Case A, set in July 2010, presents the tough challenge that the top management at Sahaj e-Village Ltd had on its hands. It was serving a virtually untouched rural market through a greenfield project with a jittery workforce in place and was justifiably concerned about the viability and sustainability of the business.
Sahaj e-Village Limited, an initiative of SREI Infrastructure Finance Ltd, hoped to answer the need of the Indian government's National e-Governance Plan (NeGP) to set up 100,000 Common Service Centres (CSCs) across rural India in 2006. This figure was subsequently revised to 250,000 CSCs in 2009. Sahaj aimed to bridge the digital divide between urban and rural India and set up one of the largest brick and mortar --and human --networks in rural India. With close to 27,000 IT-backed centers in villages with a population of less than 10,000 and 50 critical services in the domains of microinsurance, education, utility and government-to-citizen (G2C) services to over 300,000,000 rural people, Sahaj e-Village was literally taking urban services to the remotest nooks of rural India. Sahaj CSCs would provide rural consumers with direct access to modern, state-of-the-art technological facilities and computer education, thus dovetailing with its long-term plans of providing Internet connectivity across rural India. Case B moves ahead from the challenge described in Case A and outlines Sahaj's transformation process. Starting August 2010, Sahaj guided its troops through an ideological transformation that would take the organization from being primarily a government service provider to an enterprising business entity capable of fending for itself. In order to achieve this goal, Sahaj took the important first step of understanding the intricacies and dynamics of the relationships among the various stakeholders involved in the project. This, in a sense, proved to be a breakthrough in the organization's transformation process.
Microcredit made a dramatic entry into the banking lexicon when Nobel laureate Muhammad Yunus ushered in a new era of social banking with his Grameen Bank. BASIX, the Indian replicator of the Nobel laureate's ideology, (albeit with a different methodology of livelihood promotion), had established itself as an effective microfinance institution (MFI) in India. It had successfully convinced the government of the need for, and feasibility of, setting up financial institutions such as "local banks" in rural areas to mobilize rural savings and provide meaningful livelihoods for the poor, especially women. KBSLAB, a local bank established by BASIX, had performed very well initially, but had reached a critical juncture in its journey in 2011. The Reserve Bank of India's (RBI) guidelines were similar for the commercial banks and the Local Area Banks in many aspects like the statutory liquidity ratio and the cash reserve ratio requirements. But the geographical restrictions on the local area banks were making it difficult to expand and meet the compliance and monitoring mechanisms. The case looks at the journey of this unique microfinance banking institution over a decade of its existence and contemplates its future. It raises questions about what actually plagues local area banks in general and KBS in particular, the justifiability of the RBI guidelines and the viability of microcredit banks in the future.
International Oncology Services Private Limited initially had plans to start operations as a stand-alone facility offering cancer care to patients in Delhi, India, but escalating real estate costs combined with the capital intensive nature of the business were a big barrier. Moreover, the high gestation period in a greenfield project led the company founders to think of an alternative business model: a collaborative arrangement on a hub and spoke basis with an established healthcare provider in the city of Jaipur. This was a success. The company could leverage the infrastructure and in-patient facilities of the partner hospital, while adding its own medical, technological and research expertise to offer services at a cost-effective price. Though the company grew rapidly in its initial years, continued success was by no means assured. The management has to decide whether to expand with a single partner or adopt a multi-partner approach to take the business to the next level of growth.
This case highlights the impact of currency rate fluctuations on the profitability of an export-oriented textile manufacturing firm, TT Textiles. Against the backdrop of the economic crisis of 2007-08, when the Indian rupee (INR) was expected to appreciate to an unprecedented high of 35 INR per U.S. dollar (US$), the company had entered into a swap deal based on the historical stability of the Swiss franc (CHF) against the US$. At the time of making it, the deal had looked relatively safe and very lucrative. But once the global financial crisis struck in 2008, it started making sizable mark-to-market losses. The unexpected behaviour of the supposedly steady exchange rate between the US$ and the CHF was perplexing. Fortunately, things turned around in 2009 and TT Textiles was no longer in the red. Yet, there was uncertainty about the future. In March 2009, with three months left on the contract, Sanjay Jain, the managing director, was faced with the dilemma of whether to quit then and there or hold the deal till maturity.
A young man in India follows his passion through to near-bankruptcy. Equipped with an MBA from IIM Ahmedabad, he avoids a high-paying corporate job and instead starts a stockbroking firm. After ups and downs in several businesses, he finally decides his real fulfilment will come from producing a full-length movie — Ashta Chamma, based on the Oscar Wilde play The Importance of Being Ernest. The case chronicles the various issues he faces: funding the production, choosing the director, choosing a story that will satisfy his requirement of family entertainment, casting the principal characters, and creating a team that can bring the production to the movie theatres. The case goes behind the scenes of the film world in Tollywood, the Teluga film industry in Andhra Pradesh, and highlights the pressures faced by an entrepreneur in the industry. A rare combination of creativity, professionalism, and good business sense bring about success for the entrepreneur. Part B of the case presents the outcome after the release of the movie.
A young man follows his passion through near bankruptcy. Armed with an MBA from IIM Ahmedabad, he shuns the path of a high-paying corporate job and instead stars a stock-broking firm. After ups and downs in several businesses, he finally decides his real fulfillment will come from producing a full-length movie - Ashta Chamma, based on the Oscar Wilde play, The Importance of Being Ernest. The case chronicles the various issues he faces: funding the production, choosing the director; choosing a story that will satisfy his requirement of family entertainment, casting the principal characters and creating a team that can bring the production to the movie theatres. The case goes behind the scenes of the film world in "Tollywood," the Teluga film industry in Andhra Pradesh, and highlights the pressures faced by an entrepreneur in the industry. Eventually, a rare combination of creativity, professionalism and good business sense bring about success for the entrepreneur. Part B of the case presents the outcome after the release of the movie.