Balrampur Chini Mills: Moving into Branded Sugar|Business Strategy|Case Study|Case Studies

Balrampur Chini Mills: Moving into Branded Sugar

            
 
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Case Details:

Case Code : BSTA129
Case Length : 19 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : India
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

Background Note

Balrampur Chini Mills was established in 1975 in Calcutta by Vivek's grandfather. Balrampur emerged from the crumbling British India Corporation's sugar mills scattered all over Uttar Pradesh. The Saraogis had just one sugar unit but had interests in coal mining, real estate and tea plantations. The sugar business was losing money. In 1979 when the family business headed for a split, Meenakshi Saraogi's (Meenakshi) husband, Kamal Nayan Saraogi (Kamal) was advised to sell the loss-making Balrampur sugar plant...

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The Indian Sugar Industry

With a record production of 201 lakh tonnes and consumption of 184 lakh tonnes in 2002-03, India was the largest producer and consumer of sugar in the world. Due to its politically sensitive nature, sugar was one of the few industries in India that continued to be under the control of the government, which regulated sugar releases, sugarcane procurement and sugarcane pricing...

Balrampur's Business Model

In a country, where diversification was common, Balrampur had decided to stick to its core competency. Over the years, Balrampur had scaled up its operations through both capacity expansion and acquisition.

Balrampur's timely supplies and consistent good quality helped it command a premium in the market and serve large institutional consumers like Pepsi, Coke, Parle and some pharmaceutical companies. In recent times, the company had been attempting to reduce risk by focusing on by-products...

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