Hungunda Horticulture Farmer Producer Company Limited (HHFPCL), based in Bagalkot district in Karnataka, India, had confronted significant challenges amid shifts in policy and the environment. An abrupt ban on onion exports from India, coupled with severe drought, had jeopardized the company's growth trajectory, necessitating a strategic reassessment. Despite its innovative operational model and successful market penetration, HHFPCL had contended with declining commodity prices and agricultural-market volatility, which had threatened the company’s ambitious expansion plans and gender-inclusive policies. In January 2024, a member of HHFPCL’s board of directors had to devise strategic initiatives to help the company combat the drought while advancing its business-to-consumer branding and expanding its farmer network to fortify supply-chain resilience.
In December 2015, the new government in Argentina lifted capital controls, leading to a sudden drop in the value of the Argentine peso. This depreciation of the peso had the potential to significantly affect companies that exported goods to Argentina. One such company was Bajaj Auto Limited (Bajaj Auto), an Indian exporter of motorcycles to Argentina. On December 18, 2015, Bajaj Auto’s shares dropped 2.43 per cent and lost over US$212 million in market capitalization. The market was reacting to concerns that exports from the world’s fourth-largest manufacturer of two-wheelers, Bajaj Auto, might be hurt in Argentina, where it was the market leader with over 30 per cent of the market share.<br>Following the 30 per cent decline of the peso on December 16, 2015, there was uncertainty about the future of the currency. What caused Argentina to lift currency controls and float the peso? Why had the Argentine peso depreciated so sharply, and what was its future course? Moreover, how would this affect Bajaj Auto and how could it handle such a crisis?
The U.S. Federal Reserve System's decision to taper its quantitative easing program triggered large capital outflows from India, and the rupee depreciated by 13.7 per cent from June to August of 2013. Firms dependent on imports complained of rising costs, but exporters stood to benefit from the depreciation. On a macro level, economic growth dropped and inflation remained high, raising concerns that the much-touted “India growth story” was over. India's central bank, the Reserve Bank of India, faced the difficult task of fighting inflation and stopping the rupee's decline once the economic growth had slowed down. Expectations were high for an appropriate action from the bank, even as room for policy maneuverability appeared limited.