A Case Study on a Successful Partnership for a Quarter of a Century in SME: Key Success Factors

Abstract

Thirteen young executives out of which eight working in a multinational tyre factory in India, set up an automotive manufacturing unit in their home town in South India, twenty five years ago. They had an urge to start something back in their home town. The initial investment was Rs. 19 lakhs out of which the promoters contributed Rs. Seven lakhs. The value of investment at current prices is Rs. 25 crores. The company was named as South India Polymer Industries (SIPI). The company's turnover comes from partly working as a converter and partly from selling the rubber component in the Indian market in the brand name as Best polymers. The turnover 25 years ago was Rs. 40 lakhs and currently it is close to Rs. 50 crores. Recently they have expanded their business overseas. Entrepreneurs starting ventures with partners find it difficult to sustain the partnership and we have seen the business folding after a few years. However SIPI has remained vibrant and has grown many folds. The product quality is well accepted. All the original thirteen partners are still associated with SIPI. Further one of the partners was elected as CEO in the beginning and he continues to remain in that position even now. The case study analyses the reasons for the success of SIPI and also how many difficulties encountered in the last 25 years were overcome. What is the "GYAN" we can get from this enterprise from the CEO and other partners for sustaining an enterprise is the core of our paper.