Sundaram Multi Pap Ltd.: Reviving Fortunes
(6 pages of text)
Sundaram Multi Pap Ltd. (Sundaram), based in Maharashtra, India, was in the business of school and office stationery and e-learning. The company had been in the business successfully for more than two decades, backed by some innovative and cost-effective marketing strategies and excellent labour management. However, by 2017, the situation had changed. Losses had accrued in the core business in its subsidiary digital education business. The company had not announced any dividends since fiscal year 2014/15, after having an unbroken track record of profits and dividends over a decade. High interest cost, low sales, and high fixed expenses had caused mounting losses for the company. Changing market dynamics were also challenging, with a shortage of raw materials, low margins, and an increase in competition. In 2017, with the company’s stock plunging in value, management had to decide how to revive this ailing company.
This case can be used effectively for senior undergraduate students and first year students in a graduate program as a way to introduce management principles, fundamentals of management, and business environments. The case can also be used for an introductory class on analyzing financial statements. Using the case, students will undertake the following tasks:
- Evaluate a business from the perspective of opportunities and threats in its operating environment.
- Analyze financial statements to identify issues that could impact a company’s profitability and liquidity.
- Diagnose the decision dilemma faced by a business in the midst of crisis.
India, Small, 2017
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