Abstract
Hindustan Gum is an agro-processor in Jodhpur, Rajasthan. It is primarily in the business of processing guar gum. The market volatility in demand and prices have shot up due to the need of guar gum in the new and growing shale gas fracking, primarily in the US. Hindustan Gum has been trying to respond to this by considering options like expansion in processing, and contract farming for guar seed sourcing.
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | CMA0818 |
| Title | Hindustan Gum, Jodhpur |
| Pages | 15 |
| Published on | Oct 13, 2017 |
| Authors | Rana, R.; Nachiappan, G.; Raghuram, G; |
| Area | Centre for Management in Agriculture (CMA) |
| Discipline | Management Education , Operations Management, Strategic Management |
| Sector | Agriculture and Animal Husbandry, Manufacturing |
| Learning Objective | To enable students to appreciate how a high-growing demand due to disruptive technology (fracking) creates uncertainties in prices and quantities traded of a food item. To understand how futures trading can multiply these uncertainties further; and how regulators can step in to address the issues. |
| Keywords | Contract Farming; Capacity Planning; Commodities Futures; Guar Gum; Shale Gas; Fracking |
| Country | India |
| State | Rajasthan |
| City | Jodhpur |
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