Case Analysis Bombay Oil Limited : Brief Idea

Brief Idea on Bombay Oil Industries Limited Case Analysis

Background :

• Kanji Moorarji came to Bombay from Kutch in 1962 and started a small trading business of spices and other goods.
• His nephew, Vallabhdas Mariwala, also joined him in business.
• Later the 4 sons of Vallabhdas Mariwala also joined the company.
• In 1980-81, three distinct profit centers were created, which were called :

            1) Consumer product Division

            2) fatty acids and chemical divisions

            3) spice extracts division

• Harsh, the son of Vallabhdas, headed Consumer product division.

Restructuring of Business in Bombay Oil

• In the 1980's, the third generation Mariwalas entered the business.
• They understood that each of the business of the Bombay Oil requires separate focus, then only Bombay Oil could develop as a whole.
• The third generation of the Mariwala family presented the plan to the elders and the board in 1989, in which they suggested that each of the division of the company may be spun off a separate business entity.
• Each of the separate business entity may be partially or fully owned subsidiary of Bombay Oil.
• Each of the cousins, i.e. of third generation, will head an identified business as chief executive.
• The board and the elders agreed to their plan and separate entities were formed.
  
  
  
  will keep updating this case... i have written this as per my understanding of this case ... if you feel, anything written above is wrong.. please comment below... we will discuss.. :)
  
  
  
   

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