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Business Harvesting
Case Facts
Protagonist :
Mr. Rakesh Mathur and Mr Viswanathan Iyengar
The Occasion: Monthly Lecture Meeting, Mumbai Management Association (MMA) Date: 1st Nov, 2010
Time : 6pm
President : Rakesh Mathur, the guest speaker of the month; Viswanathan Iyengar, president MMA; Office- bearers and members of the MMA Agenda : Entrepreneurship,; Objectives of Developing a Business Harvesting Iyengar introducing Rakesh Mathur and tell that Mr. Mathur is going to speak on business harvesting as he is a qualified person to speak on this topic. Mr. Mathur said that he starts any business with a prime intension of selling them off in 5 years or 10 years time frame for his goals and works accordingly to fulfill it by working backwards by putting system, structures and staff in place as the means of getting there. Mr. Mathur thinks of Entry and Exit when he plans for a new business Iyengar disagrees with Mr. Mathur on his fundamental premise Mr. Mathur talks about the role of promoters and institutional investors in a business. And also explains his thinking. For decades Mathurs family has been a dealer of soaps and detergent. 70% of the Indian soap market is controlled by 3 player with a large capacity, extensive distribution network, and strong brand equity. Mr. Mathur decide not to go in the retail market instead go for a niche position by targeting the bulk buyers (1000 cr Market), with a goal of 20% market share. Arranged money for the business by pooling Rs. 60 lakh from the family sources and Rs. 1cr from NRI from Southeast Asia. Started Mathur Soaps Pvt. Ltd in 2000. Plant was set in Agra having a capacity of 10000 tonnes per annun. Mathur soaps company acquired 20% share of the bulk market.

Significance of a 20% market share:-
1) Enough business value to secure a good price from the market. 2) Size of operations becomes rather unwieldy.
3) You need funds to propel the firm to the next level of market dominance through...
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