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After reading the case, the students shall be able to explain the concept of insider trading and differentiate between illegal insider trading and legal insider trading, business ethics, financial institutions, financial markets and accounting; to interpret the legal framework for prevention of insider trading; to identify the role and significance of the market regulator, Securities and Exchange Board of India (SEBI), in detecting financial crimes such as insider trading; to demonstrate the association between information, stock trading and stock prices within the framework of efficient markets; and to appraise the ethical dilemma in a family-owned firm, where the family members of the promoter group are alleged to have indulged in a financial crime.

The case revolves around allegations of insider trading against the promoter and the promoter group of the family owned and controlled firm, Lux Industries Limited. On January 24, 2022, the SEBI, the regulator of securities markets in India, accused Udit Todi, the Executive Director of Lux Industries Limited, of engaging in insider trading through a chain of 14 connected parties. Udit Todi was also the son of the Managing Director, Pradip Kumar Todi, and the nephew of the Executive Chairman, Ashok Kumar Todi. In its interim order, SEBI alleged a breach of insider trading regulations by a group of 14 connected entities that had built up long positions starting from May 21, 2021, before the quarterly financial results (Q4) and the annual results of the financial year (FY) 2021 in the equity shares of Lux Industries Limited, with its registered office in Kolkata, India, were announced. Subsequently, they squared off the long positions to make a profit of ₹29.43m. To restore the confidence of the investors, the Executive Chairman, Ashok Kumar Todi, needed to review the matter expeditiously and impartially. Taking into consideration the family ties of the accused, it was not going to be an easy task, yet, it had to be done. The case highlights the role of the regulator, SEBI, in unearthing financial frauds such as insider trading in an emerging market such as India.

Postgraduate programs in management, Executive education programs.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance

The case on Moodcafe captures the journey of the start-up and its entrepreneurs from the beginning till the fund-raising stage. The case brings forth critical decisions that each entrepreneur or the team of co-founders have to address during their start-up journey. This short case gives opportunity to delve into two aspects mainly a) As a founder, which investor should one choose for seeking funds and what should be the terms and conditions of investment? and b) How can one review and assess the business model of a start-up?

The primary objectives of the case study are to get the participants exposed to the issues of working capital which even profitable companies face on a day-to-day basis; give the participants an understanding of how to balance the, at times, conflicting objectives of increasing profits and sales through favorable credit terms; and expose them to the impact of increase in inventory levels and average collection period on margins in a period of slow growth. They will also learn about the concept of factoring and its uses.

The case study is about a group of companies engaged in education, steel fabrication and oil businesses owned by a single proprietor. The company was based in Fatehnagar which was part of Hyderabad district in the state of Telangana, India, and the case study traces the origins of the group from 1960s to 2021. The group was invested the surplus cash flows from the oil business to initiate and expand other businesses during this period. The economic downturn due to the COVID-19 pandemic had hit the company, particularly its oldest business – Noble Chemical Agency. The oil business was facing issues related to its growth and profitability, and the uncertainty around COVID-19-related restrictions had only augmented the fears of the management. The case study looks at issues and the dilemma which the owner of the company faced. The case study highlights various issues related to working capital management, especially related to receivables management and inventory levels faced by businesses during the slow-growth phase. It demonstrates how working capital management issues, if not resolved in time, can lead to insolvency of even a successful company with a sound business model.

The case study is meant for teaching in postgraduate management programs (Master of Business Administration and Postgraduate Diploma in Management) in the following courses: corporate finance/financial management course in the first year (the case study should be taught towards the end of the course); and management accounting courses in first year (the case study should be positioned in the middle of these courses). The case study can also be used to highlight issues related to working capital and small business management in a Management Development Programme (MDP) course for “Finance fundamentals for non-finance executives”.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

The case is aimed at providing students with an opportunity to understand various aspects of corporate governance and the consequences of poor corporate governance. The case addresses the following objectives: The students need to assess the role of the board in implementing corporate governance. The students should be able to explain the conflicts experienced by various stakeholders in an organization. The students need to evaluate the balancing act of growth and governance in a startup. The students should be able to determine the current state of business sustainability of the high-growth startups in India.

The case presents the challenges faced by the CEO of BharatPe, Suhail Sameer. Beginning in 2022, Bharatpe was in deep trouble as there were allegations of financial mismanagement, toxic work culture and widening losses. Co-founder Ashneer Grover and his wife Madhuri had to leave the company following charges against them. As Grover was the face of the company, Sameer would have to quickly act on filling the void and reassuring investors. Because of the uncertainty, scores of employees had already quit or were looking for other jobs. Questions were also raised about the board’s inaction and lack of proactive measures. After a meteoric rise for three years, BharatPe was struggling to survive the whole episode and put its focus back on business.

The case is intended for MBA students in corporate governance, organizational behaviour, business ethics and strategic management areas. As the case reveals the impact of poor corporate governance, it can also be used for executive training purposes on corporate sustainability, governance and leadership with a special focus on Indian startups.

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CSS 11: Strategy.

After completion of the case study, the students will be able to understand the different risks associated with a business, focusing on price risk and the importance of price risk management in business; understand and evaluate the products available for hedging price risk through exchange-traded derivatives in the Indian scenario; and understand and evaluate the different strategies for price risk management through exchange-traded derivatives in the Indian scenario.

The case study pertains to a small business, M/s Sethi Jewellers. The enterprise is being run by Shri Charan Jeet Sethi and his son Tejinder Sethi. The business is located in Jain Bazar, Jammu, UT, in Northern India. The business was started in 1972 by Charan Jeet’s father. They deal in a wide range of jewelry products and are well-established jewelers known for selling quality ornaments. Tejinder (MBA in marketing) was instrumental in revamping his business recently. Under his leadership, the business has experienced rapid transformation. The business has grown from a one-room shop fully managed by Tejinder’s grandfather to a multistory showroom with several artisans, sales staff and security persons. Through his e-store, Tejinder has a bulk order from a client where the client requires him to accept the order with a small token at the current price and deliver the final product three months from now. Tejinder is in a dilemma about accepting or rejecting the large order. Second, if he accepts, should he buy the entire gold now or wait to buy it later at a lower price? He is also considering hedging the price risk through exchange-traded derivatives. However, he is not entirely sure, as he has a few apprehensions regarding the same, and he is also not fully aware of the process and the instruments he has to use for hedging the price risk on the exchange.

The case study is aimed to cater to undergraduate, postgraduate and MBA students in the field of finance. This case study can be used for students interested in commodity derivatives, risk management and market microstructure.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

After working through the case, the students should be able to understand Indian political economy and the brand building process of NaMo; identify the media mix strategies used to build the brand NaMo in India; evaluate possible future growth strategies for brand NaMo; and compare and contrast brand NaMo with business brands.

Narendra Modi popularly called as NaMo was the current Prime Minister of India. He belonged to Bhartiya Janata Party (BJP) which won India’s general elections in two consecutive terms 2014 and 2019. NaMo was recognised worldwide for his prudence in leading the country to greater heights of achievement. NaMo started his political journey as the worker of BJP at a tender age. His rise in political career was akin to flagship brand overtaking the parent brand. All the steps taken in the past to position himself as a cult brand, will it fortify to NaMo’s victory in 2024 general elections? Business firms may follow NaMo’s strategies. What can the business brands emulate from NaMo to market and position themselves? Can political success be transpired to business success?

This case is designed for use in a graduate-/postgraduate-level marketing course in segments on brand management, brand expansion and the marketing strategies of a market leader. The case can also be used in a brand management course to discuss brand management models (e.g. Keller’s brand resonance pyramid and brand value chain). This case has particular application for classes that focus on brand equity, STP for any brand (segmentation, targeting and positioning) and brand value chain. The case looks in detail at the Indian political market and brand building process of NaMo and examines competitive moves since its inception. This case can be used in brand management, media management courses. The dilemma can be explained as part of a marketing course for postgraduate and executive programmes.

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CSS 8: Marketing.

The case describes the structure of Infrastructure Investment Trusts (InvITs) created and launched in Indian markets in 2017. Besides introducing InvITs and their potential role in relaxing the financing constraint created by the lack of an active corporate debt market in India, the case can help in analysing why the market is discounting the IndiGrid unit price relative to its issue price. It also offers an opportunity to value IndiGrid's Patran acquisition.

This case is designed to facilitate students to comprehend the challenges an e-commerce firm faces when it attempts to monetize data network effects. The challenges faced by Zomato are ideal for in-class debate and discussion. The following learning objectives can be fulfilled through this case: understanding the promises and issues raised by data network effects; comprehending the problems an e-commerce firm faces in re-configuration; illustrating the responsibility of an established e-commerce firm towards its stakeholders; and discussing how a firm should navigate its relationship with its stakeholders.

Zomato.com, the largest Indian food aggregator and delivery platform, was contemplating the launch of Zomato Instant, a 10-min food delivery. Currently, the company’s delivery model pivoted around delivering food within 30 min. Recently, Zomato acquired Blinkit, an online grocery shopping app that was positioned to deliver groceries in 10 min. Deepinder Goyal of Zomato felt that customers would soon be more discriminant in demanding quicker services, as they might not be comfortable with 30-min deliveries. Hence, Zomato’s business model must also be re-configured to provide 10-min deliveries. Armed with access to customer data, Goyal predicted items that could be prepared and delivered within 10 min from its dark stores and automated kitchens. Although the model seemed promising and the company was upbeat about it, Zomato Instant faced challenges on several fronts. From the human angle, the decision was criticized on social media, mainly around the violation of road regulations, road safety issues and pressure on the delivery personnel to perform. Many delivery personnel had fled this gig work to join their pre-COVID jobs. Even the Competition Commission of India had established an inquiry into Zomato’s anti-competitive practices using customer data.

This case is best taught as part of a curriculum in management programmes at the post-graduate level, in courses such as e-commerce, e-retailing, business models for electronic commerce and online entrepreneurship/new age entrepreneurship. In terms of the positioning in the course, this case could be used to demonstrate the challenges of re-configuration of an online platform.

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CSS 3: Entrepreneurship.

Razorpay is a four-year-old Indian B2B fintech startup in digital payments which is venturing into digital lending. It aims to simplify digital payment flows involved in acceptance, processing, and disbursement of payments through superior technology and automation. This case details how Razorpay creates value for businesses by offering service convenience in B2B space. Razorpay started as a payment solutions provider, primarily known for their payment gateway. Over time the market for digital payment in India has matured, with multiple providers offering similar products making it difficult for Razorpay to sustain its growth by using technological leadership and service differentiation. To maintain its growth trajectory, Razorpay has launched multiple new products in the digital payment space as well as announced a foray into creating a marketplace for digital lending through launch of Razorpay Capital. The case provides details of the growth of Razorpay and its move from its core strength of payment gateway

The case is written on the basis of published sources only.

Doodlage, a start-up incorporated in 2012 by Kriti Tula, Paras Arora and Vaibhav Kapoor, used discarded waste to create sustainable fashion products. It had a first-mover advantage in recycled fashion goods in the first 10 years of its existence. The company contributed to sustainable fashion by providing an alternative to fast fashion production, creating enormous clothing waste and environmental degradation. In the first quarter of 2022, it saved and reused 15,000 m of fabric waste. From 2018 to 2021, the company grew 150% annually, targeting the right customers and regions to expand its business. It ensured that postproduction industrial waste and postconsumption garments were used to produce clothes. It also confirmed that the waste generated in its fabric screening process was used to create stationery items and other valuable accessories.

However, the sustainable fashion model that gave the company a competitive advantage became obsolete in 2022 due to increasing competition in the industry as various players using unique ideas entered the market. The company is encountering operational and logistical challenges that are affecting its performance. The demand for its products was also subdued due to high prices of upcycled and recycled clothes and less consumer spending post-COVID pandemic. The competitors of Doodlage offered multiple products produced using environmentally friendly farming and manufacturing techniques, attracting sustainable purchasers. What should be the new portfolio of products for the company to explore future growth opportunities? Considering their vast price, can consumers be encouraged to buy upcycled clothes? How should the company ride the winds of change in the industry?

The instructor should initiate the class discussion by asking questions such as how frequently do you shop for clothes? Do you care about the fabric of your apparel? After you discard your clothes, do you think about where these goods finally end up? Data on the amount of total waste generated in the fashion industry should be communicated to students to connect it with the importance of the concept of circular economy. Post this, the instructor should introduce the business model of Doodlage to bring the discussion into the context of the fashion industry before going ahead to discuss the company’s dilemma.