Material and Pioneer Trading Company
Case 25 Harimann International
Executive Summary: Harimann International was a Delhi-based manufacturer and exporter of finished textiles with sales in excess of 10 million Indian new rupees (INR). The company was launched in May 1990 by Vikram Dhawan after his graduation with a Bachelor of Arts degree. In May 1991, Dhawan added women’s blouses and skirts to his product line; however a particular embroidered cloth become very popular which has generated more sales and revenues. Harimann international was also supported by Indian government, and the government offered various rated incentives in an effort to reduce the country’s international deficit. Vikram was motivated by these government incentives and began to export his products to foreign countries such as Canada, France, and Japan. The company developed very well. The production had averaged 1,000 garments per day and the company had recently acquired the second manufacturing facility and now employed over 100 people. At the end of January 1992, Harimann International received an order of six styles of garments from Pioneer Trading Company which was a large importer of garments products with over 20 retail outlets in Japan and sourced many of its goods from India and Hong Kong to encourage competitive pricing. The pioneer Trading Company was one of Dhawan’s first customers and has been a regular customer ever since. This order was a very high profit margin but Mori Fuji, the founder and president of pioneer, limited Dhawan to ship on April 6. The order was provided two options for Dhawan. He perceived this deal as an important stepping point to establish the business relationship with such an important company. Dhawan prepared all materials for the production process and invested 188,400 INR for this deal. Harimann International will get a big profit if the company could deliver the products on time, but he will lose a big amount of money because of late shipment. After analyzing all
Executive Summary: Harimann International was a Delhi-based manufacturer and exporter of finished textiles with sales in excess of 10 million Indian new rupees (INR). The company was launched in May 1990 by Vikram Dhawan after his graduation with a Bachelor of Arts degree. In May 1991, Dhawan added women’s blouses and skirts to his product line; however a particular embroidered cloth become very popular which has generated more sales and revenues. Harimann international was also supported by Indian government, and the government offered various rated incentives in an effort to reduce the country’s international deficit. Vikram was motivated by these government incentives and began to export his products to foreign countries such as Canada, France, and Japan. The company developed very well. The production had averaged 1,000 garments per day and the company had recently acquired the second manufacturing facility and now employed over 100 people. At the end of January 1992, Harimann International received an order of six styles of garments from Pioneer Trading Company which was a large importer of garments products with over 20 retail outlets in Japan and sourced many of its goods from India and Hong Kong to encourage competitive pricing. The pioneer Trading Company was one of Dhawan’s first customers and has been a regular customer ever since. This order was a very high profit margin but Mori Fuji, the founder and president of pioneer, limited Dhawan to ship on April 6. The order was provided two options for Dhawan. He perceived this deal as an important stepping point to establish the business relationship with such an important company. Dhawan prepared all materials for the production process and invested 188,400 INR for this deal. Harimann International will get a big profit if the company could deliver the products on time, but he will lose a big amount of money because of late shipment. After analyzing all