ACRJ
Adani Wilmar Limited (AWL)
This case study was prepared by Sarang Deo, Sanjay Kumar Singh, G. Raghuram and Sanjay Choudhari. Sarang Deo and Sanjay Singh were PGP II students during 1999–2001 at Indian Institute of Management, Ahmedabad (IIMA). Presently, Sarang Deo is on the Faculty at Kellogg School of Management, Northwestern University, USA. Sanjay Kumar Singh runs a healthcare services company named SWAS Healthcare from Ahmedabad. G. Raghuram is an Indian Railway Chair Professor at IIMA. Sanjay Choudhari is PhD student at the Indian Institute of Technology, Bombay and associated with National Institute of Construction Management & Research Pune as a Faculty. This case is prepared solely to provide material for classroom discussion. It is not designed to present illustrations of either correct or incorrect handling of administrative problems. Authors acknowledge the help and contribution provided by Mr. Pakarashi, Logistic Manager of Adani Wilmar Limited. Please address all correspondence to Sanjay Choudhari, Shailesh J. Mehta School of Management, Indian Institute of Technology, Bombay, Powai, Mumbai 400076, India. E-mail: sanjayc@iitb.ac.in.
It was one hazy morning in August 2000. Sitting in his cabin, the Logistics Manager of Adani Wilmar Limited (AWL), Mr. Pakarashi, was working on the distribution network for the new brand of edible oil to be launched by the company. Edible oil was still a commodity in India. Since there was little difference in the raw material and processing cost for different companies, one of the major areas where one could get a competitive advantage was in managing the supply chain. Transportation accounted for approximately 70% of the total supply chain cost. This meant that setting up of an optimal distribution network focused on transportation costs was important for success in this business. AWL was setting up a refinery of 600 tons per day (tpd) capacity at
References: 1. Web site: www.indiancommodities.com. 2. Web site: The Hindu on Indiaserver.com, 2nd August 1999. 3. Web site: Rakesh Jain, background paper on the Edible Oil Industry in India, at www.madhyabharat.com/sopa/theme. 4. Web site: www.expressindia.com, 25th January 2000. 5. Web site: http://www.mpopc.org.my/newsapril2000.htm. 6. Web site: http://www.indiancommodities.com/shb.htm. 7. Web site: http://fcamin.nic.in/sugar_edbl.htm#Consumption Pattern. Case Abstract Suggested Case Questions