Research by: Dominique Turpin, Sandeep Puri, Jamil Paolo Francisco, Geeta Mishra &Sujata Khandai
Eco Tasar Silk Private Limited is an India-based, socially responsible organization working with natural and sustainable fibers. The company’s mission is to create large-scale wage opportunities for tribal producers of silk cocoons, women yarn makers, weavers and other small producers, artisans and service providers in the textile value chain in a commercially sustainable and viable manner. In May 2019, Khitish Pandya, chief executive officer of Eco Tasar, received three new orders from his major key account, West Elm in the US. This order volume almost doubled the orders received from West Elm in the previous year. West Elm wanted delivery of the first two orders by September 2019, and it asked for confirmation of the delivery schedule within 15 days. This order put pressure on the production capacity of Eco Tasar as it already faced high demand and low production. The company reported revenue of INR167.4 million (with a profit of INR12.5 million in 2018), and Pandya wanted to achieve revenue of INR250 million by the end of 2021. The critical constraint was that unless Eco Tasar scaled up production, it could not meet the increasing demand of its customers. Pandya considered possible growth and customer retention strategies as competitors were targeting Eco Tasar’s customers with low price variants. He was also thinking about potential scalability issues for Eco Tasar.
How to reconcile marketing and financial objectives with social responsibility.
Subjects: Corporate social responsibility, Environmental sustainability, Marketing, Organizational values, Social responsibility, Sustainability
Geography: Asia; India
To cite this case: Turpin, D., Puri, S., Francisco, J. P. S., Mishra, G. & Khandai, S. (2019). Eco Tasar Silk Private Limited: Moving beyond business. IMD ID-7-2131. Lausanne, Switzerland: IMD.