• Hemant Anant Deshmukh

Blends India Limited (BIL), one of India’s leading conglomerates, engaged in multiple businesses such as tobacco & cigarettes, paper & paperboards, packaging, hotels and agricultural exports faced a typical situation in the decade of 90’s. Although the group’s turnover was more that Rs. 9000 crore, eighty percent of it was contributed by the tobacco division alone. BIL, with a history of existence for more than 100 years, enjoyed a supernormal market share in India’s cigarettes market. Overall, its market share was around 85% and in some parts of the country it was almost a monopoly with more than 95% market share. However, 90’s was the period when regulations on the cigarettes business were becoming more and more stringent all over the world and situation in India was no different. World Health Organisation (WHO) was pushing forward its ant-tobacco agenda very strongly. All countries had started formulating and implementing stringent ant-tobacco regulatory frameworks. India had also formulated laws restricting the sales and promotion of tobacco products in general and cigarettes in particular. For Blends India Limited, the situation was becoming a serious concern. Slowing down of growth in cigarette sales presented a bleak future for its business and a probable ban on sale of cigarettes was not being ruled out. Facing a challenge for survival, BIL had to take decisions for reducing its dependence on the cigarettes business. However compensating for the sales lost in the cigarettes business through growth in its other existing businesses was almost impossible. BIL had to change its strategy and invest and new businesses. A complete makeover of its business and image was on the agenda. This case presents a detailed analysis of the situation faced by BIL and poses pertinent questions to reinforce the key concepts in the domains of Strategic Management, Marketing and Human Resources Management.

Diversification, Regulatory affairs, Leveraging Distribution Network, Cigarettes Business, FMCG.

"TRANSFORMING FOR SURVIVAL A Case Study", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 5, page no.421-426, May-2019, Available :http://www.jetir.org/papers/JETIRCE06053.pdf

"TRANSFORMING FOR SURVIVAL A Case Study", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 5, page no. pp421-426, May-2019, Available at : http://www.jetir.org/papers/JETIRCE06053.pdf