Case study a subsidiary issue


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Case study a subsidiary issue

  1. 1. Case Study-A Subsidiary IssuePresented By Group :-Surajeet singhSumit kumar maurya
  2. 2. INTRODUCTION KHL (Kenwa Hindustan Ltd.)is consumer durable and electronics company KI is a parent company of KHL KI holds 40% of stakes in KHL Keshav Nagpal is the MD of KHL Ted Hunte is the VC of KI KI wants to increase equity stakes from 40% to 51% Keshav Nagpal is not in favor of increasing stakes . But all the BOD are somehow in favor of increasing the stakes.
  3. 3. STATEMENT OF PROBLEM There is an extra pressure from KI to increase the stakes. Lack of support from the board of directors KHL is not at all interested in taking the risk. If they dilute 40% stakes then KHL might face some problems . Central purchase of raw material.
  4. 4. KEY PLAYERS1) Kenwa Hindustan Ltd.2) Kenwa International.
  5. 5. Kenwa International German origin Parent of Kenwa Hindustan Ltd. Due to FERA, it was forced to retain it’s stakes to 40%. In 1993,Ted Hunte ,vice-chairman threw a proposal for taking 51% stakes in KHL. Got interested in having the stake of KHL after looking at the growth of the company in the indian market.
  6. 6. Kenwa Hindustan Limited It is an Indian subsidiary of Kenwa International. Consumer durables & electronics company. Former name of Kenwa Hindustan Ltd. was Kenwa co. In 1982 , Keshav Nagpal became MD of it. Mainly focused on R&D . More focused on creating loyalty & brandname in the market.
  7. 7. Suggestions I won’t look forward for this deal. I would rather try to create the brand image & a strong goodwill among the customers. I would focus on my product quality in the market. I would look forward to enter into collaboration with some other big players interested in my company , which is already running successfully.
  8. 8. LetterTo, Date-04/08/2011The Vice PresidentKenwa InternationalAscon TowerGermanySir, I really appreciate your proposal of giving Kenwa Hindustan ltd. , a helpinghand to enter into the international market by providing a brand name ofKenwa International . At present Kenwa Hindustan ltd. Is at the stage where we are morefocused on exploring the Indian market and developing our Research anddevelopment . Once we are able to have an upper hand in the Indian market,Then we would look further at your amazing proposal.
  9. 9. I hope we will carry on our healthy relation in business . Thanking you, your faithfully Keshav Nagpal