R.N. Food Products: Challenges of Entrepreneurship

Abstract

M/S R.N. Food Products came into existence in November 1997. Starting with manufacturing basic spice powders; the firm’s products were available throughout Karnataka and Goa. They were available in convenient pack sizes ranging from 50 grams to 10 kgs. In the year 2002, R N. Foods started manufacturing mixed spice powders like garam masala, chicken masala, and sambar powder. In the year 2004, R.N. Foods added pickles to its portfolio producing according to FPO standards. Pickles were sold in two different brand names, namely P&P (premium brand) and KrsnA (a regular brand). The case outlines the way the entrepreneur started the business, the challenges he faced and what ultimately happened. The period from 1996 to 2008, was a period of intense turmoil for the entrepreneur, leading to severe financial and personal (health) problems. In 2008, the entrepreneur Raj decided to come out of the business completely because of health , personal and financial problems and planned a well-defined exit strategy. Between 2009 and 2010, all stocks were cleared, vehicles were sold and some loans were cleared. By March 2011, all physical assets like machinery and equipment were disposed off, and final returns were submitted to concerned Government offices. In April 2011, the premises were rented out to two different firms fetching a rent of Rs. 78,000 per month.Why did R N Food Products fail? Was closure, the only exit strategy, Raj could opt for? Did he have any other choice? This case can be used by Students of MBA, PGDM, PGDM (Family Business) and any course where Entrepreneurship Development/Small Enterprise Management is being taught as a course paper/subject.Students of Strategic Management can also make use of this case. It can also be used for an executive education programme.