Innovation-Driven Business Case of Hanuman Vitamin

Abstract

The proverbial saying – “to have mango at the coronel’s price” - fits exactly true in case of Hanuman Vitamin Foods Ltd., Khamgaon, a Public company established in the year 1966 which produced oil cake from the stone of the mango. This uniquely innovated venture went on to add production of Sal Seed oil, Kokum oil, Dhupa Seed oil, Illepe Nuts (from Indonesia) oil and Shea Nuts (from West African countries) oil through ultra modern plants/process manufacturing De Oiled Cake (DOC) and Cocoa Butter Equivalence (CBE) and exported them to Japan, Italy, Switzerland and all European countries except US. The company became number one Indian manufacturer and exporter of these products and grew in scale and expanded by setting up a new plant at Raipur in the State of Chattisgarh. However, in 2002 – 2003, Hanuman Vitamin Foods Ltd. had to apply to the then Board of Industrial and Financial Reconstruction (BIFR) – now National Company Law Tribunal (NCLT) - for being declared as sick unit and for obtaining government assistance under insolvency and bankruptcy code for its revival. And it finally stopped production in the year 2008 after which the financer banks took the possession of the company through Asset Management Company. The steep rise and fall of Hanuman Vitamin unfolds a host of significant management lessons in innovation and entrepreneurship.