Asoka Spintex: Case Analysis

In this issue, we are featuring three responses on the case by Pradip N Khandwalla, S Ramnarayan and Niti Pandey, and N Ravichandran.
Asoka Spintex, a Lalbhai group company, was set up in 1920 in Ahmedabad, Gujarat, to manufacture coarse and medium fabrics with a capacity of 13,000 spindles and 350 looms. Since its inception, the company did reasonably well. However, the balance sheet for the year 1987 showed cash loss for the first time in three decades. The company was on the verge of closure in 1991-92; however, subsequently, it started showing positive results. The case discusses the background of Asoka Spintex, the troubled times (1985-1990), the phase of uncertainties (mid 1990-mid 1992), the phase of struggles and challenges (1992-1995), and the phase of consolidation and growth (1995-1997). The case concludes with a discussion on the future plans of Asoka Spintex.