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The objective of writing this case study is to allow management students to engage with the complexities of mergers and acquisitions (M&As) in the insurance sector in an emerging economy like India. Upon completion of this case study, the students will be able to critically evaluate the business environment of the insurance sector of a developing economy like India, analyse the impact of M&As on the insurance industry of India, appraise the post-merger consequences and strategies to deal with these consequences, assess the applicability of market power and growth theories in the context of M&As and develop a strategic action plan for handling post-merger challenges.

On 3 September 2021, the Insurance Regulatory and Development Authority of India (IRDAI) approved the “Scheme” related to the merger of the non-life insurance division of Bharti AXA General Insurance Company Limited (“Bharti AXA”) with ICICI Lombard General Insurance Company Limited (“ICICI Lombard”). Earlier, on 21 August 2020, the boards of the companies had approved entering into definitive agreements through a scheme of arrangement. The merger received approvals from different regulatory bodies as mandated (Gandhi et al., 2023). Bhargav Dasgupta, managing director and Chief Executive Officer of ICICI Lombard, stated, “This is a landmark step in the journey of ICICI Lombard, and we are confident that this transaction would be value accretive for our shareholders” (FE Bureau, 2020). However, the merger posed a dilemma for Dasgupta and the management regarding crop insurance owing to its impact on profitability. Crop insurance historically had high claim ratios nearing 135% for ICICI Lombard for financial year 2018. The company ceased to underwrite this product from 2019 onwards (TNN, 2019). However, ICICI Lombard had to fulfil the three-year commitment made by Bharti AXA to the state governments of Maharashtra and Karnataka towards crop insurance. It was a scheme initiated by the Government of India, covering farmers against losses due to cyclonic rains, rainfall deficits and other unforeseen calamities. Dasgupta faced a challenge in managing the interests of the farmers and the company’s shareholders while balancing profitability, which had already been impacted by the COVID-19 pandemic. This case study delves into post-merger complexities in the financial sector non-life insurance industry in emerging countries like India.

This case study is suitable for undergraduate and post-graduate management students and executives from the insurance industry.

Teaching notes are available for educators only.

CSS 11: Strategy.

Greenko, a renewable power generating company investing in biomass, small and medium hydro power and wind power projects, had projected to achieve 1GW (Giga Watt = 1000 Mega Watt) of installed capacity by March 2015. The company had been financing its projects with debt from Indian banks and financial institutions on a project finance basis and it had to now decide whether to refinance the project finance debt with an international bond issue of USD 550 million. The case provides an opportunity to discuss the public policy and financing aspects of renewable energy in India.

In early 2017, after launching its successful “Greenhouse-in-a-Box” pilot project in India with fifteen smallholder farmers, Kheyti, a non-profit agricultural technology (AgTech) social enterprise, was struggling with several decisions in developing and growing its business. Kheyti was launched in 2015 to help smallholder farmers battle poverty and income variability by providing affordable technologies bundled with services. Over eighteen months, the team had developed a low-cost and modular greenhouse product to which it added financing, inputs, training, and market linkages to create a comprehensive “full-stack” solution for small farmers. The pilot project was a success in many ways, but Saumya, Kheyti's co-founder and head of product, was concerned that it revealed shortcomings that could severely affect the viability and scalability of Kheyti's solution.

Saumya had some important decisions to make. Should Kheyti redesign the product from scratch, or find other ways to reduce the cost for early adopters? Should it rely on upfront revenues from sales of the greenhouse, or consider developing an innovative financing or contract farming model? Kheyti's dwindling cash reserves meant that these decisions were urgent and critical. The path chosen now would determine whether the startup would move beyond the pilot stage and achieve its vision of serving 1 million farmers by 2025.

Public sector management, policy-making, sustainable development, post-Communism.

The case is designed to be used with undergraduate-level and MBA/MPA students. With undergraduate levels, the case can be used on the subject strategic management. In MBA/MPA programs, this case can be used in subjects such as strategic planning for public administration. Here, it can be stressed as being about the problems faced by a country on the long road toward democracy. Issues to be discussed in class include: environmental scanning, competitiveness, public policies and strategic agenda.

At the most general level, the case allows for the analysis and evaluation of the strategy and performance of the Albania from 1928 to 2014 along economic, political and social dimensions, using the techniques of country analysis (see Country Analysis Framework, HBS No. 389-080). Depending on time limitations and the particular objectives of the individual instructor, the case can be used to explore all phases of the nation's development or, alternatively, to focus on a specific era, such as Albania, in the way toward a free market economy. The case provides a setting in which to explore the diamond model as a tool for analyzing competitiveness and setting the economic policy agenda. In the Albania case, we highlight diamond analysis in an emerging economy. Albania also highlights the transition from a planned economy to a market economy, and the importance of a cross-border regional integration in competitiveness.

The case is written to serve a number of purposes: Understanding the problems and challenges to sustainable development, especially in a post-communist emerging economy like Albania. The transition/changes that all policymakers have to go through in their efforts for sustainable development of the country. To discuss production factors and the importance of a growth model based on the production factors.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

This case will enable students to develop an understanding of starting a single proprietorship business focusing on the real estate; understand the possible challenges that an entrepreneur faces in the beginning; apply ethical decision-making frame works when faced in ethically conflicting situation; andlook at the career anchoring theory.

The case study takes a look at the ways and means of starting a small business depending on the owner managers experience, capabilities and skills including networking which are germane to success. It also highlights the ethical issues that small business proprietors have to face in order to make money and grow. The setting of the case is a town in Sindh province of Pakistan, which setting generally represent the arena where such business (Single Proprietorship) develop and get involved in the economic development of a backward area. Finally, the case study highlights the significant but realistic expose of career anchor theory, which stipulates that people normally start with a job but switch jobs over their working life.

Graduate and undergraduate.

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CSS 3: Entrepreneurship.

▪ Students learn how an educational institute impacts water resources on the campus and its surrounding community.

▪ Students acquire knowledge on how decision-making, related to natural resources, is influenced by the institute’s obligations towards surrounding communities and the long-term sustainability of the resources.

▪ Students become acquainted with the decision-making process adopted by an educational institute for achieving resource-efficient development on the campus.

▪ Students learn how to design evaluation methods for investments related to water conservation at an educational institute.

▪ Students become proficient with the payback method specifically when evaluating water-enhancing projects at an educational campus.

Dr Ajit Parulekar, Director at Goa Institute of Management (GIM), Goa, India, was evaluating options to improve the sources of water at GIM at the beginning of 2021. He was reviewing the projects proposed to meet the water requirement at the campus for the next five years (2021–2025). The projects were recommended by consultants (ENV Consultants Pvt Ltd) who proposed a total expenditure of US$68,667 which involved storage enhancement and water table upgradation (See Case Exhibit 11). The maintenance department had studied the plans but their projections showed that the execution of these projects and initiatives would still lead to a deficit of water in the future. Dr Parulekar reviewed the reports and weighed the expected tangible and intangible benefits from the proposed projects. The projects had to be carefully selected, keeping in mind the multiple objectives to be met: an increase in water supply within a short time, a financially optimum investment and a minimum impact on the surrounding community. The selected projects had to meet the long-term sustainability objective of resource efficiency at the campus.

Students studying finance, project appraisal, campus sustainability at graduate or postgraduate management programs.

Teaching notes are available for educators only.

CSS 4: Environmental Management.

Hindustan Gum is an agro-processor in Jodhpur, Rajasthan. It is primarily in the business of processing guar gum. The market volatility in demand and prices have shot up due to the need of guar gum in the new and growing shale gas fracking, primarily in the US. Hindustan Gum has been trying to respond to this by considering options like expansion in processing, and contract farming for guar seed sourcing.

Human Resource Management and Business Strategy.

Postgraduate.

The case provides a holistic perspective of organizational transformation, management of change impact on employees and leader behavior. The challenge at Govind Milk and Milk Products Pvt. Ltd. a mid-size company, in the dairy industry was to transform itself into a pan India and global company from a regional organization. The case study outlines how the organization took on the transformation journey under a strong leadership and managed change by focusing on creating a brand, implementing technology and creating a culture of meritocracy. Having made the successful transition from being a family run business to a professionally managed company and having built significant internal capacity the big question is – Can the company strive and thrive in the VUCA business environment?

To highlight the process and management of organizational change. To highlight the role of leadership in the process of organizational change. To understand how the environmental factors or the VUCA environment impacts the performance of an organization. To highlight internal capacity building as a strategy to deal with the VUCA environment.

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CSS: 6: Human Resource Management.

The case provides an opportunity for participants to step into the shoes of Doshi and plan a way to expand Vardhman Envirotech (VE) business by either entering the government segment or by undertaking international market expansion. In doing so, participants should understand the existing strategy by taking into consideration the aspects regarding the manner in which VE’s Injection Recharge Well differs from the existing recharge well solutions. VE lack of experience in government segment, as well as international markets provides an interesting context for the case discussion wherein participants have to examine the positives and challenges of both expansion opportunities and decide the way forward.

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CSS3: Entrepreneurship.

This case was a real-life situation faced by the author. Names were changed, so students would not know that the author was the protagonist. The case had been developed over several years as a capstone to the capital budgeting section of an MBA finance course and an advanced undergraduate course.

Trey and Lauren Gallo were considering the purchase of a vacation condo that also generated rental income. The current owners were willing to sell at a lowball offer of $605,000 as the pandemic entered its 13th month. The Gallos felt they needed to act fast to get this deal. However, the risks were extraordinary, as the pandemic had reduced rental income by 50% and borders had just recently closed. The case provides all data needed to compute rental revenues, capital expenditure, operational expenditures and financing costs. Students are expected to compute the NPV and IRR of free cashflows. Students will compute and evaluate the cost of capital using the condo’s projected debt structure, a choice of several proxy betas and a project risk premium. The case also uses extensive sensitivity analysis. This case differs from corporate capital budgeting problems because it evaluates both levered and unlevered cashflows, and the cashflows include savings from personal use. The case has been successfully used in MBA finance courses and advanced undergraduate finance courses. The case can be used as a capstone case for capital budgeting or a comprehensive exam in undergraduate, MBA and executive programs. The case questions can also be spread throughout a course to cover the topics of financial statement forecasting, free cash flows, capital budgeting, cost of capital and sensitivity analysis.

Earlier versions of this case have been used in an advanced undergraduate corporate finance course and MBA finance courses. The case is generally used as a capstone to the material on capital budgeting. Students should have already covered material on financial statements, loan cashflows, levered and unlevered cashflows, CAPM, proxy betas, weighted average cost of capital, NPV and IRR. This case is also appropriate for courses in real estate finance and personal finance.