This case describes the situation faced by the management of Torrent Gujarat Biotech Limited (TGBL), a company that was set up to manufacture Penecillin G, an antibiotic, in mitigating unexpected developments in the policy and competitive environment. The economics of the penicillin project changed drastically when the government liberalized the import of penicillin and the prices fell by one third. While Torrent Gujarat Biotech Limited (TGBL) had reached a new high of capacity utilization, the marketing of its products was a critical issue. The management of TGBL could not retrace its steps as it had already made commitments in fixed assets. The participants are required to take charge of the situation and find a way of overcoming the crisis.