Hari Industries - The Dilemma of New Business Opportunity

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Srinivas Kumar, one of the founders of Hari Industries, was faced with a dilemma. 'What should I do?' he wondered as he looked at the notes and tables he had drawn up over the last fortnight. All these years he had been looking to match excess capacity to poor demand coupled with fluctuating payment conditions in the business of ‘Panels for electrical power switches'. All these years he had dealt with a total of not more than ten clients.

For maximum utilization of the capacity, Srinivas Kumar was weighing the options of the new opportunity. However, he was not sure over the overall organizational commitment and also was unable to decide the sales management focus.

The Opportunity: To Consider or Not? Six months ago, one of his classmates, Mahesh, a B School Professor, had asked him if his company could fabricate and supply 'vertically spilt & movable' classroom writing boards. The idea was to double the writing space without increasing the wall area on which the board was to be mounted. Srinivas Kumar, a mechanical engineer himself, worked with his works manager, Rammurthy, and came up with a design. Mahesh and his boss (Director of the B School) held a series of discussions with the duo from Hari Industries and a unit with four independent writing boards was finalized...

Srinivas Kumar was in charge of Hari Industries' Hyderabad operations. Hari Industries was a fabrication and engineering organization. It had manufacturing units in Chennai and Hyderabad, capitals of the two south Indian states of Tamil Nadu and Andhra Pradesh respectively. Established in the year 2003, Hari Industries, was engaged in manufacturing, supplying, and exporting a wide range of electrical switchgear panels, panels for power supply switches, and Steel 'Dwelling-Cabins'. Certified panel manufacturers, Hari Industries' range encompassed EB (Electrical Board) Metering Panels, Motor Control Centers, and MCCB (Moulded Case Circuit Breakers) Distribution Boards. In response to the specific demand of clients, Hari Industries also offered MCB Distribution Boards, Sub Main Distribution Boards (SMDB), and Power Distribution Panels (LVMDB)...

The experience at the B School where Srinivas Kumar installed a demo board gave him confidence. He pondered over the possibility of supplying these boards to other schools and colleges as well. An initial study of the Hyderabad Education Institute market revealed the following facts. There were about 60 engineering colleges and an equal number of B Schools in and around Hyderabad. These engineering colleges could be grouped into three categories based largely on the placement record and quality of infrastructure...

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