Tanishq, owned by Titan Company Limited (Titan), was one of India’s largest and most iconic jewellery brands. Founded in 1994, Tanishq had become a household name, having instilled trust by certifying the quality of its gold and offering exquisite jewellery designs catering to consumers of all economic classes. As of the end of March 2023, Titan operated 763 jewellery retail stores covering its major brands. Despite its success in India, Tanishq had faced significant challenges in its first foray into international markets. In 2008, it attempted to enter the United States by launching two retail stores; both had to be closed, due to the global financial crisis and a lack of suitable investors in its US operations. In 2023, Titan, a Tata Group company, launched Tanishq’s first brick-and-mortar store in the United States and was aggressively aspiring to expand into Gulf Cooperation Council regions such as the United Arab Emirates and Qatar. Why did Titan, a company that had a strong jewellery brand in India with a record of fast-growing sales, want to take Tanishq and its other jewellery brands global? Did the company’s resources support international expansion? If so, had it chosen the right countries to target? What should be the mode of entry?
In January 2019, the Competition Commission of India approved a significant merger in India's fast-moving consumer goods industry. The merger between Hindustan Unilever Limited (HUL) and GlaxoSmithKline Consumer Healthcare Limited (GSKCONS) took place in April 2020. The deal helped HUL strengthen its food and refreshments business and diversify into the health food drinks market. The hefty purchase price paid for the merger led HUL to record massive goodwill and other intangible assets that had previously not been recorded on GSKCONS financial statements. An investor researching the merger noticed these drastically increased values and wondered how a product company could have such high intangible assets on its balance sheet. What was HUL's strategic motive in the merger? Had it acquired some right-to-use assets from GSKCONS that had led to an increase in other intangible assets? What were the potential sources of value from the merger? Would the merger benefit HUL in the long run?
Tata Motors Limited (Tata Motors), an Indian automobile major with a consolidated annual turnover of more than ₹2,497 billion in fiscal year (FY) 2021, was struggling to turn profitable and reinstate dividend payments to its investors. The case discusses the dividend policy of Tata Motors, comparing it with the dividend policies of the company’s peers and examining its relevance to the investor community at large. With Tata Motors’ long history as a dividend-paying company, its sudden withdrawal of dividends in FY 2016, with no payouts in the following five years, has made investors jittery. The company was working on the turnaround plan and internal reorganization that would allow it to provide a differentiated focus on its three business verticals—the commercial vehicle segment, the passenger vehicle segment, and the electric vehicle segment. Tata Motors had already communicated its decision to conserve cash to reduce its leverage and become debt-free by FY 2024. However, with an increase in pressure from a certain section of investors, Natarajan Chandrasekaran, chair of Tata Motors, was considering when to reinstate dividends. What signal would doing so send to the market? Would the ownership structure of the company have an impact on its dividend policy? Did the company’s cash flows support the dividend payment at this stage?
Tata Motors Limited (Tata Motors), an Indian automobile major with a consolidated annual turnover of more than ₹2,497 billion in fiscal year (FY) 2021, was struggling to turn profitable and reinstate dividend payments to its investors. The case discusses the dividend policy of Tata Motors, comparing it with the dividend policies of the company's peers and examining its relevance to the investor community at large. With Tata Motors' long history as a dividend-paying company, its sudden withdrawal of dividends in FY 2016, with no payouts in the following five years, has made investors jittery. The company was working on the turnaround plan and internal reorganization that would allow it to provide a differentiated focus on its three business verticals-the commercial vehicle segment, the passenger vehicle segment, and the electric vehicle segment. Tata Motors had already communicated its decision to conserve cash to reduce its leverage and become debt-free by FY 2024. However, with an increase in pressure from a certain section of investors, Natarajan Chandrasekaran, chair of Tata Motors, was considering when to reinstate dividends. What signal would doing so send to the market? Would the ownership structure of the company have an impact on its dividend policy? Did the company's cash flows support the dividend payment at this stage?
In January 2019, the Competition Commission of India approved a significant merger in India’s fast-moving consumer goods industry. The merger between Hindustan Unilever Limited (HUL) and GlaxoSmithKline Consumer Healthcare Limited (GSKCONS) took place in April 2020. The deal helped HUL strengthen its food and refreshments business and diversify into the health food drinks market. The hefty purchase price paid for the merger led HUL to record massive goodwill and other intangible assets that had previously not been recorded on GSKCONS financial statements. An investor researching the merger noticed these drastically increased values and wondered how a product company could have such high intangible assets on its balance sheet. What was HUL’s strategic motive in the merger? Had it acquired some right-to-use assets from GSKCONS that had led to an increase in other intangible assets? What were the potential sources of value from the merger? Would the merger benefit HUL in the long run?
The RealReal Inc. (Real), a San Francisco, California-based start-up engaged in the trade of used luxury goods, experienced significant growth in its revenue and customer base in fiscal year (FY) 2018, but it was yet to turn profitable after nine years in the business. The reported accumulated losses until the quarter ended March 2019 were US$280.98 million. On June 27, 2019, Real launched its initial public offering (IPO) at US$20 per share. Would investing in the company be worthwhile for investors? What parameters would realistically indicate the future prospects of an emerging growth company like Real?
The RealReal Inc. (Real), a San Francisco, California-based start-up engaged in the trade of used luxury goods, experienced significant growth in its revenue and customer base in fiscal year (FY) 2018, but it was yet to turn profitable after nine years in the business. The reported accumulated losses until the quarter ended March 2019 were US$280.98 million. On June 27, 2019, Real launched its initial public offering (IPO) at US$20 per share. Would investing in the company be worthwhile for investors? What parameters would realistically indicate the future prospects of an emerging growth company like Real?
Tata Motors Limited, an Indian automobile manufacturer, had been struggling with decreasing market share and profitability, which was affecting the company's share price. After the appointment of a new chief executive officer in 2016, the company undertook several reorganization programs to revive its financial health and improve its market share. However, it still registered heavy losses in the first nine months of fiscal year 2018–19. Was there more that the company could do to improve the company's position and regain lost investor confidence?
Tata Motors Limited, an Indian automobile manufacturer, had been struggling with decreasing market share and profitability, which was affecting the company's share price. After the appointment of a new chief executive officer in 2016, the company undertook several reorganization programs to revive its financial health and improve its market share. However, it still registered heavy losses in the first nine months of fiscal year 2018-19. Was there more that the company could do to improve the company's position and regain lost investor confidence?
Paytm Payments Bank Limited (Paytm) was the leading firm in the digital wallet (also known as the “mobile wallet” or “e-wallet”) industry in India; yet, the company had reported a loss of more than INR15,485 million for fiscal year 2016. Paytm’s resources were stretched further when, on May 23, 2017, it started its long-awaited payments bank operation. There were also doubts about the viability and sustainability of the online payments industry in general as a result of; India’s demonetization exercise in 2016; the introduction of the uniform Goods and Services Tax in 2017; and a general slowdown in the economy’s growth rate. In the highly competitive and crowded banking sector, how could Paytm survive, grow, and achieve continued success in this complex business landscape?
Paytm Payments Bank Limited (Paytm) was the leading firm in the digital wallet (also known as the "mobile wallet" or "e-wallet") industry in India; yet, the company had reported a loss of more than INR15,485 million for fiscal year 2016. Paytm's resources were stretched further when, on May 23, 2017, it started its long-awaited payments bank operation. There were also doubts about the viability and sustainability of the online payments industry in general as a result of; India's demonetization exercise in 2016; the introduction of the uniform Goods and Services Tax in 2017; and a general slowdown in the economy's growth rate. In the highly competitive and crowded banking sector, how could Paytm survive, grow, and achieve continued success in this complex business landscape?