Kaveri Amma is a 40 yr old woman who has 2 daughters - 1 is married and the othe r is doing her 10th standard.

She works in a cooperative where 35 other women su pport her. She makes ropes in the cooperative and earns Rs.600/ month. She was l ooking for alternative ways of making a little more money. She knew how to make a special kind of pickle. She bought the required stuff - tomatoes 8kg at a tota l cost of Rs.30, 1.5 l of oil at Rs.90, 40, 200 gm bottles at Rs.20, miscellaneo us ingredients (ginger, garlic etc.) at Rs.57.

She had an earning of Rs.203 from this venture. She used to sell these bottles a t Rs. 10/bottle when market price for such pickle was Rs.16. Since she was handp icking her tomatoes her quality was also maintained. A friend told her that if s he did this exercise just 4 times a month then she would be able to earn more th an what she is presently earning with her rope trade. A young graduate Sheela heard about Kaveri Ammas business and offered her a loan of Rs.15000 to set up pickle making unit plus a Rs. 5000 grant. Should Kaveri Amma accept this offer??

frenticfilosferLet me share my Point of view. Though still am not qualified for GD-PI Yet would try in answering. 1.Kaveri Amma should not accept this offer Reason Already she is making 600 per Month and Now from this extra venture assum e she is making rs 203 per venture,so Min 4 times a month is 203*4=812 so in a Mon th she is earning approx 1412,per Month she earns,now instead of taking a loan f or rs 15000 she can continue this pickle venture for a while where she will earn max say 5000 per month and other side her job salary say let about 5 yrs it inc reases to few % and she is earning 1500 per month then her total income could be say 6500 per month and then she can think about taking this loan of rs 15000,no w if she takes this loan,it wud be loss for her and she wudnt be able to continu e her normal business so according to me kaveri amma shudnt accept this offer friends this is my 1st case study in my 27 yrs of life ,never even seen like thi s before so i may be wrong also so all your feedback and thoughts appreciated,which wud help me in improving mys elf. @meepal See I feel she should accept the offer Reasons: 1. she is looking for alternate ways to make more money ..this may be due to the fact that she needs money to fund her second daughter's education....n this poi nt must be taken into consideration else they could have omitted the first line.

2. The sole purpose of any business is profit........n d more expand d more u ma ke profit Now if she invests 15k in setting up the plant ....she still has 5000(grant) to purchase raw material... suppose she hires 5 people(for marketing, sales, operations) and pays them 600 s alary...still at the end of one round of pickle making n selling..she has earned 10000( 197 ka 400 mila tha ) nd she can do this 4 times in a month so at the end of the month she has earned 20000( we assume that plant has a capacity of making pickle worth rs 5000) so she can payback 5000 in a month ...pay salary of 3000...she is still left wit h 12000 now suppose Sheela( ooh....reminds me of smeone..) also wants some stake in the profits ..like say 50% still Amma is left with 6000 profit ......n next month th is wud be 6000+2500 after paying back the loan .....

SO this offer should be accepted by Amma...!!!!!!!!!!!!!

Let me share my Point of view. Though still am not qualified for GD-PI Yet would try in answering. 1.Kaveri Amma should not accept this offer Reason Already she is making 600 per Month and Now from this extra venture assum e she is making rs 203 per venture,so Min 4 times a month is 203*4=812 so in a Mon th she is earning approx 1412,per Month she earns,now instead of taking a loan f or rs 15000 she can continue this pickle venture for a while where she will earn max say 5000 per month and other side her job salary say let about 5 yrs it inc reases to few % and she is earning 1500 per month then her total income could be say 6500 per month and then she can think about taking this loan of rs 15000,no w if she takes this loan,it wud be loss for her and she wudnt be able to continu e her normal business so according to me kaveri amma shudnt accept this offer friends this is my 1st case study in my 27 yrs of life ,never even seen like thi s before so i may be wrong also so all your feedback and thoughts appreciated,which wud help me in improving mys elf.