Godrej Agrovet Ltd (GAVL)

Jose B. Alvarez; Anjali  Raina; Rachna  Chawla

Case | HBS Case Collection | November 2016 (Revised March 2017)

Godrej Agrovet Ltd (GAVL)

by Jose B. Alvarez, Anjali Raina and Rachna Chawla

Abstract

Nadir Godrej, chairman, and B. Yadav, managing director of Godrej Agrovet Ltd (GAVL), grapple with the challenge of growing their cattle feed business—should they integrate vertically despite the challenges of the dairy industry and risk the profitability of the current business? The ban on cow slaughter in India adds to the dilemma.

Keywords: Agribusiness; Animal-Based Agribusiness; Vertical Integration; Agriculture and Agribusiness Industry; India;

Language: English

Format: Print

41 pages

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Citation:

Alvarez, Jose B., Anjali Raina, and Rachna Chawla. "Godrej Agrovet Ltd (GAVL)." Harvard Business School Case 517-014, November 2016. (Revised March 2017.)

Case | HBS Case Collection | December 2019

CME Group in 2019

José B. Alvarez, Forest Reinhardt and Natalie Kindred

Chicago-based CME Group is the world’s largest futures and options marketplace, with annual trading volume of over 4.8 billion contracts in 2018. This case is set in late 2019, as heightened perceptions of risk stemming from the U.S.-China trade war are driving record trading volumes of agricultural futures. CME Group leads the agricultural futures market, but changing global dynamics are raising new questions about the security of its competitive position. With roots dating to the 1850s, CME Group became the market leader by developing liquid markets for reliable products tied to U.S. agricultural production. But the U.S. no longer dominates global grain and oilseed production and trade, raising questions about whether U.S.-domiciled futures and options will remain relevant globally. Other pressures on CME Group include the U.S. political environment—there is talk of taxing futures trades—and potential competition from Chinese futures exchanges. How should the management team adjust their strategy? While this case focuses on CME Group’s agricultural products business, some of the questions at play—e.g., about the role of speculators, the usefulness of a financial transactions tax, and the positioning of price discovery in commodity source markets versus destination markets—apply to other lines of business such as foreign exchange or precious metals.

Keywords: Financial Markets; Risk Management; Futures and Commodity Futures; Trade; Price; Competition; Risk and Uncertainty; Competitive Strategy; United States; China; Brazil;