Deals with the pricing strategy of a new product by a small manufacturer in an industry dominated by giant multinationals. The case examines how a small unit can enter and expand into the market. The issues related to relative role of price and non-price competition, use of brand names, expectations of counter strategies by other units, etc, are highlighted. The sequel to this case is Western India Pharmaceutical Company (M1) which depicts the reaction of this unit to the method of competition by still smaller units.