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CASE STUDY
The Case Of Contract ManufacturingSYNOPSIS: Roadmaster Tyres had managed to
climb to the No. 2 spot in the replacement market for truck tyres. But the company's foray
into passenger-car tyres was in hot water, with an OEM contract with the country's largest
car-manufacturer not being renewed. Chintan Bakshi, the CEO of the company, found himself
caught in a quandary. Roadmaster Tyres could continue to focus on the truck-tyres segment
and be profitable, but, essentially, be a commodity company. Or it could leverage its
presence in the OEM market for passenger-car tyres, invest in brand-building, and go the
retail way. Both had their merits. And demerits.Cummins India's Y.S. Joshi, modi Xerox's
K. Swethanarayan, SAS Institute's Gourish Hosangady, and John Fowler (India)'s R.L. Kumar
debate Roadmaster's ideal course of action. A BT Case Study.
As his new Mercedes-Benz E-Class-perhaps the
only vehicle of its kind in the world that ran on Roadmaster-T5 radials-swung into the
private two-lane metalled track that led to Roadmaster Tyres Limited's huge
manufacturing-facility on the outskirts of Baroda, the thoughts of Chintan Bakshi, its
51-year-old Chairman and Managing Director, kept returning to something his father, Raman
Bakshi, the founder of the company, had once told him. ''There's something peculiar about
our business,'' Bakshi Sr had said. ''Every one of our successes, no matter how large or
small, is immediately followed by failure.'' He c |