Student

Case Study :

Amara Raja Group (A) (Under Publication)

Abstract :

The first company under the Amara Raja Group was established in 1984, i.e. Amara Raja Electronics Limited (AREL) followed by Amara Raja Batteries Limited (ARBL), which is currently the major revenue earner of the group. Its founder leveraged the presence of his family in Renigunta, a rural village in South India, and choose to start the industry there. He had an intent of creating employment opportunities in rural areas by promoting rural, non- migratory employment opportunities. Preference is given to local population in all ARG enterprises. The establishment of a skill-development center also point to similar direction where unskilled labor is converted into skilled ones and absorbed in ARG. On a parallel note, the growth of group is intertwined deeply with values of Amara Raja is explicitly documented as the ‘The Amara Raja Way’. This is about the five core values, Innovation, Excellence, Entrepreneurship, Experiences, and Responsibility.

Even though the founders had strong people orientation, the HR department/function at ARG got strengthened after Mr B Jaikrisha (JK) and strived to become central to business. The departments’ evolution has been demarcated in three phases. The first and second phase saw few initatives, and during the third phase the HR department is structured according to the Dave Ulrich Strategic HR Model, where apart from the corporate HR, the HR function had Centers of Expertise (COE), Shared Services (SS) and the Business HR (BHR). While this structure had been successful until now, there are still doubts about its sustainability from CEO’s of businesses of ARG, and even members of the HRC (Human Resource Council) itself.

Keywords :

Strategic HRM, HR function/ department, Dave Ulrich Model, HR Business Partner (HRBP), Center of Excellence (COE), HR Shared Services (SS), formalisation of HRM, family business

Author(s):

Biju Varkkeyand Farheen Fathima Shaik

Case Center Name :

IIMA Case Center

URL :

https://cases.iima.ac.in/

Case Study :

Narayana Health: The Initial Public Offering Decision.

Abstract :

Narayana Health, an Indian private healthcare provider, was established with the aim of providing affordable healthcare services without compromising quality. Over the years, its growth and expansion was financed by private equity investors. In August 2015, private equity investors of the company decided to go public through the offer for sale route. Private equity investors had to decide the value of the initial public offering (IPO) and whether the time was appropriate for Narayana to go public. To do so, they needed to consider the company’s financial performance, the pros and cons of the company’s strategy and business model, the industry’s future growth potential, and macroeconomic factors.

Learning Objective:

This case was written to help students understand different motives behind going public. It discusses different choices for raising capital and documents the methods commonly used in the industry for valuing companies in order to arrive at an appropriate offer price band. The case requires students to arrive at a suitable share price by considering the financial performance of the company, pros and cons of the company’s strategy and business model, the industry’s future growth potential, and macroeconomic factors. It also provides insights about IPO underpricing, a commonly observed phenomenon across markets. After working through the case and assignment questions, students will be able to

• understand the process of equity issuance in India;
• understand the valuation of an initial public offering (IPO) using discounted cash flow (DCF) and multiples methods; and
• explore the concept of IPO underpricing and post-IPO stock performance.

Issues :

healthcare,initial public offering,discounted cash flow,valuation,stock market

Disciplines:

Finance, International

Industries:

Health Care Services

Setting:

India, Large, 2015

Intended Audience:

MBA/Postgraduate

Author(s):

Narendra Nath Kushwaha, Bipin Kumar Dixit, David J. Sharp

Publication:

Ivey Publishing

URL :

https://www.iveycases.com/ProductView.aspx?id=86962

Case Study :

Mannarkkad Rural Service Co-operative Bank: Innovating at the Edge

Abstract :

Mannarkkad Rural Service Co-operative Bank Ltd (MRSCB) is a Primary Agricultural Credit Society (PACS) providing short-term credit to rural borrowers. It operates in the three-tier Co-operative Structure in Kerala, India. A Primary Agricultural Credit Society (PACS) is the basic unit (in the lending/banking system) which deals with rural (agricultural) borrowers, disbursing and collecting repayments of agricultural and rural loans. MRSCB stands out from the rest of the PACS’ in Kerala by providing best in class banking services and constantly innovating to meet its vision of providing the ‘pleasure of personal banking’ to its customers. It is named as the only bank in India to provide 24*7, 365 days banking operations through its all-night counter. Currently, the Kerala Co-operative sector, known for its stellar performance and community support is experiencing turmoil in terms of credibility and regulatory issues post bank note demonetization in India (announced on 8th November 2016). The organizations in this sector are also apprehensive about the upcoming introduction of Kerala Bank (slated to launch 17th August 2018) aimed at restructuring the current three-tier system to a two-tier system equipped with total banking solutions. Will these developments affect the identity and autonomy of the PACS in Kerala? Would MRSCB weather the storm of external elements that compelled this change? The case presents an illustration of continuous radical innovation initiatives of a small bank which provides an appropriate context to teach the critical elements of innovation and change management. This is a real-life decision making case based on primary data collected through interviews, observation and perusal of secondary data.

Author(s):

Nidheesh Joseph,Prof. Abhishek Tottawar and Prof. Ranjeet Nambudiri

Recognition :

Shortlisted in the ‘honourable mention’ category in the prestigious ISB-Ivey Global Case Study Competition 2018.

Publishing Platform :

Will be published as ISB-Ivey Co-branded case by Ivey Publishing. Ivey Publishing along with Harvard Publishing are the leading global case publishers in the management field.