3. OWNER - Vinay Sehgal
BOD - Naveen Shroff
TOP EXECUTIVE - Nishigandha
Das Gupta
BOD - Mukesh Tyagi
Senior vice president - Ritesh Sahani
4. SITUATIONS OF ETHICAL CONCERN:
• Auction of the Maharashtra Bottling and
confectionary
• Launch of mint based soft drink (Industrial
Espionage)
• Releasing stock of “JUST CHILL” containing
pesticides.
• The DEAL.
5. AUCTION OF MBC ::
SEHGAL GROUP:
• SEHGAL group offered Gulab Rao 5% of the
value of the PSU.
• SEHGAL GROUP convinced Jhunjhunvala and
Ruhiya by giving them offers.
6. AUCTION OF MBC ::
MARWAH GROUP :
• MARWAH group of industries offered 8%
share to Gulab Roa with 40 Crore of advance
payment to attain the PSU.
• Gulab Rao Ingle- state level third party
minister.
7. MARWAH GROUP ATTAINED THE PSU.
MARWAH group stated that they
were going to produce MINERAL
WATER in this factory.
Reality - They were going to
produce a mint based soft
drink named FIZZY.
8. BUT HOW DID SEHGAL GOT TO KNOW
ABOUT IT?
Nishigandha Das Gupta opted for Industrial Espionage
Industrial espionage is the covert and sometimes illegal
practice of investigating competitors to gain a business
advantage. The target of investigation might be a trade
secret such as a proprietary product specification or
formula, or information about business plans.
10. LAUNCH OF JUST CHILL
• VINAY SEHGAL wanted to get the first mover
advantage.
• SEHGAL Group decided to launch JUST CHILL
within 4 months.
• Project leader-
11. ISSUE :
Large amount of traces of pesticides were found in the
drink by the quality control department.
12. Solution-
Shifting of bottling plant but this would result in delaying
the launch by 2 months.
DECISION TAKEN-
• Launching the stock containing pesticides. (Decision taken by
Vinay)
• Bribing FDI officials to get the license.
CONSEQUENCES -
• Vinay brainwashes nishigandha and ritesh to go ahead with
the project.
• Naveen Feels that it is unethical therefore decides to RESIGN.
13. THE BETRAYAL
• MUKESH betrayed SEHGAL.
• Told MARWAH the reason behind Naveen
Shroff’s resignation.
14. MARWAH’s unethical intentions :
• Suspension of the 3 FDI officials.
• Raid at SEHGAL’s panvael plant.
• Sending just chill samples for testing.
• Initiated protests through NGOs.
• Finalizing deal with Ruhiya group to attain
SEHGAL’S Management control.
16. THE DEAL ::
• Vinay will get the management control of the
group.
• Marwah will retain the shares.
• All the court case will be withdrawn.
• Just chill will get clearance from the state FDI.
• The old stock will be sold again with new batch
numbers.
• Nishi will have to stay in lockup till the state
election takes place.
17. CONCLUSION ::
Both the industrial giants opted for unethical
practices to get ahead of one another.