Cronos Industries Pvt Ltd: Strategic Alliance Essential to Grow?

On April 10, 2021, Mr Siddharth Iyer, Chairman and Managing Director of Cronos Industries Pvt Ltd, had to decide whether he should accept the offer of Mr Subodh Sahay, who was from Delhi and had been trading in FMCG products for 20 years. Cronos had been in the business of manufacturing sanitizer and home cleaning products since 2016 in Ahmedabad. Siddharth studied Master of Business Administration (MBA) in his post-graduation in 2015. Siddharth wanted to expand sales of Cronos, but understanding all the limitations of product demand estimation, he referred to Mr Ranjit Kayga, the super stockist of Chandigarh. If Cronos found the alliance profitable and had the potential to improve its liquidity and strengthen its market, it would be interested in implementing this agreement. Siddharth was unsure about the alliance due to his experiences with Bharat in 2017 and Star International Pvt Ltd in 2018.