1. Case Study-A Subsidiary Issue
Presented By Group :-
Surajeet singh
Sumit kumar maurya

2. INTRODUCTION
 KHL (Kenwa Hindustan Ltd.)is consumer durable and
electronics company
 KI is a parent company of KHL
 KI holds 40% of stakes in KHL
 Keshav Nagpal is the MD of KHL
 Ted Hunte is the VC of KI
 KI wants to increase equity stakes from 40% to 51%
 Keshav Nagpal is not in favor of increasing stakes .
But all the BOD are somehow in favor of increasing the
stakes.

3. STATEMENT OF PROBLEM
 There is an extra pressure from KI to increase
the stakes.
 Lack of support from the board of directors
 KHL is not at all interested in taking the risk.
 If they dilute 40% stakes then KHL might face
some problems .
 Central purchase of raw material.

4. KEY PLAYERS
1) Kenwa Hindustan Ltd.
2) Kenwa International.

5. Kenwa International
 German origin
 Parent of Kenwa Hindustan Ltd.
 Due to FERA, it was forced to retain it’s
stakes to 40%.
 In 1993,Ted Hunte ,vice-chairman threw a
proposal for taking 51% stakes in KHL.
 Got interested in having the stake of KHL
after looking at the growth of the company
in the indian market.

6. Kenwa Hindustan Limited
 It is an Indian subsidiary of Kenwa
International.
 Consumer durables & electronics company.
 Former name of Kenwa Hindustan Ltd. was
Kenwa co.
 In 1982 , Keshav Nagpal became MD of it.
 Mainly focused on R&D .
 More focused on creating loyalty &
brandname in the market.

7. Suggestions
 I won’t look forward for this deal.
 I would rather try to create the brand image
& a strong goodwill among the customers.
 I would focus on my product quality in the
market.
 I would look forward to enter into
collaboration with some other big players
interested in my company , which is already
running successfully.

8. Letter
To, Date-04/08/2011
The Vice President
Kenwa International
Ascon Tower
Germany
Sir,
I really appreciate your proposal of giving Kenwa Hindustan ltd. , a helping
hand to enter into the international market by providing a brand name of
Kenwa International .
At present Kenwa Hindustan ltd. Is at the stage where we are more
focused on exploring the Indian market and developing our Research and
development . Once we are able to have an upper hand in the Indian market,
Then we would look further at your amazing proposal.

9. I hope we will carry on our healthy relation in business .
Thanking you,
your faithfully
Keshav Nagpal