Planet health: Case analysis I

Abstract

This case, set in early 2001, describes the situation facing Mr. Rohit Patel, MD of Sagar Group of Industries (SGI), an Indian business group engaged in the manufacture and marketing of bulk pharmaceuticals, intermediates, and formulations. SGI had achieved a turnover of Rs. 75 million in the year 2000 and has a comfortable net worth. The environment in SGI’s core business was likely to change for the worse in the coming years and therefore Mr. Patel was exploring new business opportunities that had better prospects. One of the new businesses considered was retailing of pharmacy and healthcare products. This area had appealed to Mr. Patel who had initiated two studies of business opportunities in pharmacy retail. The first study was carried out by SGI executives and the second by an external consultant. Mr. Patel had to now decide whether SGI should enter the retail pharmacy business or not. If he decided to enter, he would also need a retailing strategy and an operational plan.