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SUPARSHVA SWABS INDIA: GROWTH AFTER COVID-19

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Soumya Sarkar, Krishna DasGupta, and Baishali Sen wrote this case solely to provide material for class discussion. The authors do
not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names
and other identifying information to protect confidentiality.

This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveypublishing.ca. Our goal is to publish

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materials of the highest quality; submit any errata to publishcases@ivey.ca. i1v2e5y5pubs

Copyright © 2023, Ivey Business School Foundation Version: 2023-11-10

It was a sultry August day in 2022. The Delhi National Capital Region (NCR) and its outskirts were
sweltering in the heat and humidity of North India. After a very tiring workday, Rahul Jain, founding partner
of Suparshva Swabs India (SSI), retired into his room with a handful of office files. SSI had been a
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prominent manufacturer of cotton swabs in Southeast Asia for the past three decades. Since the onset of the
COVID-19 pandemic in 2020, SSI had become one of the largest suppliers of cotton swabs used in real-
time polymerase chain reaction (RT-PCR) COVID-19 testing. The pandemic had brought both
unprecedented demand and extensive shortages in the supply of testing swabs.

Fortunately, with the pharmaceutical industry’s rapid response, the pandemic was now under control after
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a string of waves, and case numbers were decreasing. However, so was the demand for testing swabs.
Within the next few months, SSI’s management had to come up with a robust plan for a sustainable future
for the company. Jain was meeting with a group of journalists, who were tracking the developments in his
company, the next day, and he knew they would search for insights into the company’s future.

Unsure about where to start, he picked up the first file on the table. It contained a report submitted by the
market research agency SSI had appointed and the notes he had made during his last meeting with the other
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partners about the report. The company had grown from a small facility manufacturing cotton swabs to
become a major player in the personal hygiene segment and beyond. Jain’s notes indicated that there were
three broad routes for diversification: SSI could leverage the relationship network it had built in the medical
supplies ecosystem during their venture into testing swabs. It could use its years of experience and reputation
in personal hygiene products and its well-entrenched distribution channels to pivot naturally into the personal
care segment. Or it could venture into the biomedical industry as a supplier of equipment required for the on-
site production of consumables. Unsure about the correct choice, Jain started scrutinizing the options.
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SUPARSHVA SWABS: THE INITIAL YEARS

The Jain family started manufacturing cotton swabs on a small scale in 1992. Armed with basic know-how,
SSI was formed as a partnership between Mr. Brij Mohan Jain and his sons Ajay, Rajeev, and Rahul. After
its incorporation in 1999, the company started producing high-quality cotton swabs (better known as cotton
buds) with fully automated production lines, the first of their kind in India. The initial investment of

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₹750,0001 had to be wholly arranged in house. Manufacturing equipment was imported under the Export

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Promotion Capital Goods (EPCG) scheme, the objective of which was to facilitate the import of duty-free
capital goods for the production of quality products and services and to enhance India’s manufacturing
competitiveness.2 The EPCG scheme allowed the import of capital goods—which included spares for the
pre-production, production, and post-production almost at zero duty subject to a condition. The seller had
to meet an export obligation six times the tax it could save under the scheme. This condition had to be met

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within six years from the date authorization was issued, in accordance with the current export policy.

The company had to control its costs to maintain a profit in the small domestic market while meeting its
export obligations under the EPCG scheme. Raw material costs had to be kept as low as possible. However,
there was no domestic supplier for good-quality bleached cotton sliver, the primary raw material for
producing cotton swabs. The nearest source was Thailand, but the import duties were too high. Thus, SSI
had no other alternative but to develop domestic suppliers of cotton sliver. It had to build the suppliers’

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capabilities from scratch by providing them with technical and financial support.

The company also had to maintain its state-of-the-art production line, which pushed up costs. Since there was
no market for such expensive swab-manufacturing equipment in India, there was no machinery support in India
and importing the spare parts was a costly proposition. To reduce this cost, SSI started developing its knowledge
of the machine parts and manufacturing some of the spares in house. Over time, SSI could indigenize many of
these machines, improve their functionalities, and in some cases, even automate their manual functions.
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While costs were going up, the rapid growth of cheap and highly subsidized Chinese swabs was pushing
SSI’s profit margin down, even to below 3 per cent. When SSI was planning its first round of expansion,
acquiring capital became a big challenge. Importing materials was also costly due to customs duties of 65–
70 per cent. SSI, a small family-owned enterprise with limited collateral for raising capital, had to think
differently for the expansion. Instead of acquiring new machines, which would have cost them about ₹10–
₹12 million, SSI bought used machinery from dead or dying overseas companies at prices as low as ₹0.5–
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₹1.0 million and refurbished them to suit its own purposes. This exercise of renovating and modernizing
old and used machines gave SSI a strong foundation in re-engineering and modifying its production lines—
a skill that would prove beneficial in its future ventures.

THE DIFFICULT YEARS

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Around 2003, SSI started supplying its products to Family Dollar Stores in the United States. These stores
delivered low-priced good-quality generic products to their customers. In 2006, SSI shifted its production
from the family-owned building in Delhi to a special economic zone (SEZ) in Noida to facilitate the
company’s export business and reduce logistics costs. Noida, though a part of the NCR, was in an area of
Uttar Pradesh state that had low land and workforce costs. However, within a year of the shift, SSI lost its
US store account due to intense price competition from highly subsidized Chinese products, which also had
the benefit of a government-regulated currency.

The situation was exacerbated due to the US subprime crisis of 2008. On the one hand, SSI was losing
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accounts to its Chinese competitors; on the other, it could not add any new major accounts to its business
due to the economic downturn. Sales and profits faced a devastating blow.

1
₹ = INR = Indian rupee; ₹1 = 0.0125697 in August 2022; all currency amounts in ₹ unless specified otherwise.
2
Government of India, Directorate General of Foreign Trade, “What Is Export Promotion Capital Goods (EPCG) Scheme,”
Directorate General of Foreign Trade, accessed June 16, 2022, https://www.dgft.gov.in/CP/?opt=epcg.

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The company started processing fibre in house to drive its costs down even further. According to Jain, “The

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huge markup which we were paying to the vendor of sliver could alone fund the repayment of the loans and
interest.” In-house processing of sliver had the added benefit of reducing the waste generated by using non-
standard raw materials.

Around this time, SSI began focusing on the Indian market, where it had little presence. The Indian swab

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market was small and dominated by Johnson & Johnson (J&J). To acquire a toehold in the market, SSI had
to ensure its product was well differentiated from the J&J brand and make it fairly visible on retail shelves.

Since SSI did not have a well-established general trade channel in India, it focused on the modern trade
channel and conventional wholesale markets to promote its products. SSI offered attractive margins and
offtake schemes to wholesalers who could push their brand name Tulips swabs to retailers and pharmacists.
SSI also allowed its retailers big margins and a “no questions asked” return policy. It even delivered smaller-

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sized consignments on demand from the retailers.

Due to its export obligations, SSI had a robust quality management system for its products and packaging.
Good product quality and low prices soon attracted consumers to the Tulips products. Once the Tulips brand
name gained some recognition, SSI started introducing other quality personal hygiene products periodically
under the same brand name.

As its brand recognition increased, SSI started building a strong sales team and organizing their movement
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into the general trade routes. It also began advertising campaigns in radio, print, and digital media and
gradually launched more extensive campaigns, like sponsoring movies.

PRODUCT PORTFOLIO
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Starting with the cotton swabs, SSI had ventured into cotton- and wood-based personal hygiene products over
time, and its Tulips brand turned out to be one of the leading and fastest-growing brands in the market. According
to Jain, Tulips had a market share of almost 75 per cent in the cotton hygiene category in India in 2021.

Before COVID-19, SSI’s product portfolio consisted of cotton- and wood-based personal hygiene products,
the most popular being cotton swabs. Tulips cotton swabs were available in various package sizes, from 24
pieces up to 300 pieces. Besides swabs, SSI also sold other products like cotton pads, cotton balls, and
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cosmetic buds under its Tulips brand name. The company’s wood-based products mainly included toothpicks
and barbeque skewers. Intending to differentiate itself as an eco-friendly brand, SSI had moved into using 100
per cent biodegradable materials for manufacturing its products just before the pandemic struck.

With the pandemic engulfing the world, demand skyrocketed for two products: the polyester swabs needed
for viral sample collection and hand sanitizers. Sanitizers had hit the Indian market only a few years earlier,
but before the pandemic, production had been only one million litres per annum. COVID-19 led the demand
for sanitizer to grow by more than 1,000 times.3 Like most other firms capable of manufacturing, SSI was
quick to include sanitizers in its portfolio and made them available in 100 millilitre (ml) and 500 ml bottles
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in the market (see Exhibit 1).

3
T.V. Jayan, “India’s Hand Sanitizer Production Capacity Grew 1,000 Times during Covid-19 Pandemic,” Hindu Businessline,
July 9, 2021, https://www.thehindubusinessline.com/markets/commodities/indias-hand-sanitizer-production-capacity-grew-
1000-times-during-covid-19-pandemic/article34832010.ece.

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SARS-COV-2 OUTBREAK

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Coronavirus disease 2019 (COVID-19) was first reported in Wuhan, China in 2019. Initially, an epidemic
in China, the disease spread worldwide, prompting the World Health Organization (WHO) to declare
COVID-19 a pandemic on March 11, 2020. The genome sequencing of the virus showed that it was
genetically related to the coronavirus responsible for the SARS outbreak of 2003, and it was consequently

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named SARS-COV-2 by the International Committee on Taxonomy of Viruses.4

SARS-COV-2 could be transmitted from human to human through respiratory droplets, close contact with
diseased patients, and aerosol contact. However, airborne transmission represented the most dominant route
for the spread of the infection.5

According to the WHO’s COVID-19 dashboard dated June 16, 2022, about 535 million cases of COVID-

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19 had been reported worldwide, and about 6.3 million lives had been lost. The most affected countries
were the United States, India, and Brazil.6

SARS-COV-2 TESTING

The foremost requirement for combating the rapid spread of the disease was speedy and accurate detection
of the virus. The most widely used test for identifying the presence of SARS-COV-2 was the real-time
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reverse transcription–polymerase chain reaction (RT-PCR) test. RT-PCR tests detected the presence of
SARS-COV-2 nucleic acids in the nasopharyngeal fluid of patients.

A typical sample collection kit for the RT-PCR test consisted of a plastic container; buffer protein; viral
transport medium (Hanks Balanced Salt Solution, or HBSS); and two sample collection swabs.7 Viral samples
were collected from the patients’ homes or test centres: samples were taken from the nasal and pharyngeal
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cavities of the patient with the help of the two swabs and placed in the plastic container, which contained the
buffer protein and the viral transport medium. The sample was then transported to a testing laboratory for
testing. During the RT-PCR test, the ribonucleic acid (RNA) in the collected samples reacted with reverse
transcriptase to produce complementary deoxyribonucleic acid (cDNA). This cDNA was then amplified with
the help of a polymerase chain reaction to identify the presence of the viral RNA of SARS-COV-2.8
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THE TESTING-SWAB MARKET

The bacterial and viral sample collection market was valued at US$13.6 billion in 2019, with viral specimen
collection dominating at around 42 per cent. This market had grown to US$26.1 billion in 2020 and was

4
Wagner Gouvea dos Santos, “Natural History of COVID-19 and Current Knowledge on Treatment Therapeutic Options,”
Biomedicine & Pharmacotherapy 129 (September 2020): 110493, https://doi.org/10.1016/j.biopha.2020.110493.
5
Renyi Zhang, Yixin Li, Annie L. Zhang, Yuan Wang, and Mario J. Molina, “Identifying Airborne Transmission as the Dominant
Route for the Spread of COVID-19,” Proceedings of the National Academy of Sciences 117, no. 26 (2020): 14857–63,
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https://doi.org/10.1073/pnas.2009637117.
6
World Health Organization, “WHO Coronavirus (COVID-19) Dashboard,” WHO, accessed June 16, 2022,
https://covid19.who.int.
7
Kenneth P. Smith, Annie Cheng, Amber Chopelas, Sarah DuBois-Coyne, Ikram Mezghani, Shade Rodriguez, Mustafa Talay,
and James E. Kirby, “Large-Scale, In-House Production of Viral Transport Media to Support SARS-CoV-2 PCR Testing in a
Multihospital Health Care Network during the COVID-19 Pandemic,” Journal of Clinical Microbiology 58, no. 8 (2020): e00913–
20, https://doi.org/10.1128/JCM.00913-20.
8
S.A. Bustin, “Quantification of mRNA Using Real-Time Reverse Transcription PCR (RT-PCR): Trends and Problems,” Journal
of Molecular Endocrinology 29, no. 1 (2002): 23–39, https://doi.org/10.1677/jme.0.0290023.

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expected to grow at a compounded annual growth rate (CAGR) of 14 per cent, to attain US$38.8 billion,

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by the end of 2027.9

The worldwide spread of COVID-19 had created a sudden and unprecedented demand for viral specimen
collection swabs and viral transport media. To cater to the market demands, the swab manufacturers, with
the aid and involvement of the governments of the affected countries, started expanding their production

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capacities. Further, since vaccines were being developed rapidly, the swabs and viral transport media were
expected to be in considerable demand in academic and research applications.10

The global COVID-19 sample collection kit market was estimated at US$6.48 billion in 2021 and was
expected to grow at an 8.7 per cent CAGR between 2022 and 2030. The swab segment led the sample
collection market with a revenue share exceeding 40 per cent. The diagnostics sector accounted for over 65
per cent of the revenue share in 2021; over 90 per cent (by revenue) of the samples were collected at

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hospitals and clinics. North America dominated the COVID-19 sample collection kit market with an
estimated revenue share of 36.1 per cent. The United States was one of the largest users of kits, conducting
about 1 million tests daily.11

As of July 10, 2022, India had completed about 866 million COVID-19-diagnosis tests and was conducting a daily
average of 1.0 million tests..12The unprecedented growth in the number of tests conducted during the peak periods
of COVID-19 led to a high demand for sample collection swabs. As time progressed, there was a decrease in the
number of tests, signalling containment of the pandemic, but the absolute numbers were still very high.
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VENTURING INTO TESTING SWABS

When the H1N1 influenza (swine flu) struck India around 2009–10, some diagnostic centres approached SSI
to produce testing swabs. SSI tried modifying its production lines to manufacture testing swabs in 2009 but
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did not succeed in its effort. SSI did not take this initiative further at that time since the demand for testing
swabs was low and converting the company’s existing cotton-based lines for this segment of synthetic
products would not be lucrative. The company’s rationale was its product lines focused more toward the
consumer side of the market. However, Jain observed that they had analyzed this failure and learned from it.

The 2020 surge of SARS-COV-2 prompted the Government of India to increase the number of daily virus
tests. Before the onset of the COVID-19 crisis, all viral sample collection swabs had been imported from
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either the United States, Italy, or China. But at the onset of the crisis, importing the same became difficult
due to unprecedented worldwide demand for sample collection swabs. Due to the increase in the number
of cases in their own countries, the United States and Italy banned exports, making China—selling at high
prices and with two months of lead time—the only exporter of speciality swabs. The high cost of the

9
Grand View Research, Bacterial & Viral Specimen Collection Market Size, Share & Trends Analysis Report by Product
(Swabs, Blood Collection Kits, VTM), by Application (Diagnostics, Research), by End-Use, by Region, and Segment Forecasts,
2020–2027, Grand View Research, accessed May 11, 2022, https://www.grandviewresearch.com/industry-analysis/bacterial-
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viral-specimen-collection-market.
10
Mohammad Behnam, Arnav Dey, Tony Gambell, and Vaibhav Talwar, “COVID-19: Overcoming Supply Shortages for
Diagnostic Testing,” McKinsey & Company, July 15, 2020, https://www.mckinsey.com/industries/life-sciences/our-
insights/covid-19-overcoming-supply-shortages-for-diagnostic-testing.
11
Grand View Research, COVID-19 Sample Collection Kits Market Size, Share & Trends Analysis Report by Product (Swabs, Viral
Transport Media),by Application, by Site of Collection, by Region, and Segment Forecasts, 2022–2030, Grand View Research,
accessed May 11, 2022, https://www.grandviewresearch.com/industry-analysis/covid-19-sample-collection-kits-market.
12
Statista, “Cumulative Number of Samples Tested for the Coronavirus (COVID-19) across India from April 2020 to March 2023,”
Statista, accessed May 15, 2023, https://www.statista.com/statistics/1113465/india-coronavirus-covid-19-tests-cumulative/.

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imported sample collection kits significantly affected the test cost, which the government was desperately

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trying to push down. The government began a search for indigenous producers of sample collection swabs.13

Suparshva and J&J were the two companies with the necessary infrastructure to produce this kind of swabs.
SSI had an edge over its competitor: The in-depth knowledge of the production equipment developed over
time during its days of struggle helped SSI make all the modifications on its production line in house. Being

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backward integrated also meant that SSI did not have to tie up with other suppliers or technology partners
for raw materials or technical assistance. SSI converted its 100 per cent cotton swab lines to polyester and
developed its design (see Exhibit 2) for testing swabs within a week. On the other hand, the competitors
had to enter into contracts for raw materials.14

Within ten days, the design of the swabs was validated by the National Institute of Virology, Pune (NIV
Pune) with the help of the Indian Council of Medical Research (ICMR). The final validation from ICMR

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came on May 5, 2020, and SSI began production that very night as the first Indian company to develop the
COVID-19 test swabs.15 The solution SSI developed was not a prototype that would need long periods to
set up and convert into high production numbers but was instead based on high-speed production lines that
were ready to produce high volumes almost immediately. SSI started production at a rate of 0.2 million
swabs per day, with the capacity to increase this to 1.0 million swabs. “The company has the largest installed
capacity of cotton buds in Asia and possesses the capability of taking the COVID-19 swab production to
over 30 million swabs per week,” a senior executive said.
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Indigenous production of testing swabs not only helped India drastically increase the number of tests being
conducted but also helped reduce the cost of each test. About 25–33 per cent of the total cost of testing was
attributable to the sample collection kits. With the imported swabs costing around ₹30 per piece, the
production cost of a viral transport media (VTM) kit was between ₹180 and ₹190. SSI and J&J initially priced
their swabs at around ₹2.50 per piece, but with process improvements, were able to bring this down to below
₹0.50. Along with a reduction in the cost of other components, the production cost of a single VTM kit was
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driven down to about ₹20 by October 2020, and later to even less than ₹10. SSI could take credit for ensuring
the free availability of swabs, thereby not letting any VTM kit producer charge a premium. As more VTM kit
producers came up due to the freely available swabs, the prices continued to drop.16 By September 2021, SSI
had supplied more than 60 million viral sample collection swabs to the Indian market.
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13
Leroy Leo, “TULIPS Covid-19 Test Swab Production to Be Scaled Up to 5 Million/Week by May-End,” Mint, May 21, 2020,
https://www.livemint.com/companies/news/tulips-covid-19-test-swab-production-to-be-scaled-up-to-5-million-week-by-may-
end-11590002512862.html.
14
Leo, “TULIPS Covid-19 Test Swab Production to Be Scaled Up.”
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15
Priya Sheth, “How Ear Bud Manufacturers in India Are Working to Create Swabs for COVID-19 Testing,” CNBC TV18, May 7,
2020, https://www.cnbctv18.com/healthcare/how-ear-bud-manufacturers-are-working-to-create-swabs-for-covid-19-testing-
5864371.htm; Migrator, “How Team Smriti Irani, RIL, J and J, NIV got COVID-19 Testing Swab in 10 Days at 10 pc Cost of China
Make,” DT Next, May 17, 2020, https://www.dtnext.in/national/2020/05/16/how-team-smriti-irani-ril-j-and-j-niv-got-covid19-testing-
swab-in-10-days-at-10-pc-cost-of-china-make; Press Trust of India, “Suparshva Swabs to Produce 50 Lakh Swabs per Week for
COVID-19 Tests by May-End,” Business Standard, May 20, 2020, https://www.business-standard.com/article/pti-stories/suparshva-
swabs-to-produce-50-lakh-swabs-per-week-for-covid-19-tests-by-may-end-120052000702_1.html.
16
Arunabh Saikia, “Special Report: Why Does the Coronavirus Test Cost Rs 4,500 in India?,” Scroll.in, May 5, 2020,
https://scroll.in/article/961002/why-does-the-coronavirus-test-cost-rs-4500-in-india.

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KEY FACTORS TO THE SUCCESS OF SSI IN THE TESTING-SWAB MARKET

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Jain knew that SSI’s success during the COVID-19 years was not by chance. The leadership of Rajeev
Jain—the senior partner responsible for all technical work, people management, and coordination of the
efforts of the development team to create solutions—had paid off.

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The top management’s market intelligence had helped the company promptly identify the opportunity
presented by the spread of COVID-19 in India and get in touch with ICMR and the Ministry of Health and
Family Welfare (MoHFW) to get the necessary clearances for production at the appropriate time. The
assistance of ICMR and MoHFW helped them arrange transportation of their swab samples to Pune amid
an ongoing, harsh lockdown and get the necessary approvals within ten days.

SSI had invested in constantly upgrading knowledge through both higher education and constant experimentation.

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The company paid 75 per cent of the course fees for any employee who opted for higher education or wanted to
pick up new skills, and it documented the learnings from all its efforts, including those that failed. This gave SSI
the expertise to swiftly design the sample collection swabs and modify its production line.

SSI had always taken care of its employees, even during the uncertain times of the pandemic. When other
manufacturers were downsizing and reducing salaries, SSI paid all of its employees a full salary in advance
and assured them job security. The employees paid this back with their total effort and time during the
modification of the production lines.
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PRESENT SITUATION

Two years after the onset of COVID-19, the hard work of scientists and entrepreneurs had led to new
knowledge and the development of appropriate infrastructure to contain the deadly virus. Things were
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returning to normalcy. However, the situation was tricky as it had produced both opportunity and threat.

With support from the “self-reliant India” initiative of the Government of India, numerous players of varying
sizes and capacities had already entered the test-swab market, increasing the competition. Advancements in
three-dimensional (3D) printing technology also posed a threat to testing-swab manufacturers:
stereolithography-printed nasopharyngeal swabs had shown promising results during laboratory testing.
However, the manufacturing costs of 3D-printed nasopharyngeal swabs were two to three times higher than
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those of conventional swabs.17 If 3D-printed swabs could be made commercially viable, they might pose a threat.

Moreover, although RT-PCR tests were “the primary assay for detection of SARS-CoV-2,” researchers
noted that “the sensitivities of these tests remain low for oropharyngeal (32%) and nasal (63%) swab
samples.”18 Scientists were in search of alternatives. The serological study of blood samples showed
promise in detecting the SARS-COV-2 antibody, as did rapid diagnostic tests (RDTs) based on antigen
detection in respiratory tract samples, testing to identify the presence of viral RNA in human saliva (sputum
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17
Aluri Manoj, Monami Bhuyan, Swarup Raj Banik, and Mamilla Ravi Shankar, “3D Printing of Nasopharyngeal Swabs for
COVID-19 Diagnose: Past and Current Trends,” Materials Today: Proceedings 44, no. 1 (2021): 1361–68,
https://doi.org/10.1016/j.matpr.2020.11.505.
18
Bhavesh D. Kevadiya, Jatin Machhi, Jonathan Herskovitz, Maxim D. Oleynikov, Wilson R. Blomberg, Neha Bajwa,
Dhruvkumar Soni, Srijanee Das, Mahmudul Hasan, Milankumar Patel et al., “Diagnostics for SARS-CoV-2 Infections,” Nature
Materials 20, no. 5 (2021): 593–605, https://doi.org/10.1038/s41563-020-00906-z.

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samples), radiographic testing, molecular and antigen-based assays, magnetic resonance imaging (MRI),

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and computed tomography (CT) scans of the chest.19

New application-based self-testing kits for preliminary identification of COVID-19 infection had also come
up. On May 20, 2021, ICMR approved the first home-based self-use rapid antigen test (RAT) kit. As non-
invasive testing procedures to identify the presence of the SARS-COV-2 virus gained traction, the demand

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for viral sample collection swabs could plummet, leaving an overcapacity in an already competitive market.20

THE DILEMMA

By August 2022, although COVID-19 was here to stay, the crisis it had created was deemed to be over. The
testing-swab market was growing increasingly competitive with the entry of new players and the advent of

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newer technologies for testing for the presence of the SARS-COV-2 virus.

Jain understood that he would have to find a swift answer—not only for the journalists he would be facing
the next day but also for the employees and other stakeholders whose tireless efforts had made SSI’s venture
a success. The environment was changing fast, and SSI needed to align its strategies accordingly. Sticking
with its existing strategy was no longer an option.

SSI’s venture into the testing-swab market had provided the company with crucial financial resources that
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it needed to extend its hold on the existing personal hygiene market, and Tulips was now an established
brand. Years of struggle had also helped SSI set up strong and loyal distribution channels all over India. A
few months earlier, SSI had started experimenting in the personal care market, and it was about to launch
phthalate-free homemade soaps under the Tulips brand. However, this product line was highly vulnerable
to external conditions.
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The swab venture, on the other hand, had also opened a new avenue of business in the medical supply market.
A dentist friend’s suggestion about domestic production of dental micro-applicators brought an opportunity.
If this were successful, SSI would be the first company to domestically manufacture yet another highly sought-
after medical consumable. But Jain was skeptical. Although SSI had earned a good reputation in the medical
supply market, its expertise in the field was limited. Besides, once the market for domestically manufactured
micro-applicators opened up, as in the case of testing swabs, the returns would wear off.
No

Years of experience in running and maintaining production machinery had helped SSI engineers master the
intricacy of designing machines rather than swabs. Thus, some of the senior managers had suggested
exploring this expertise further and moving into manufacturing portable, on-site swab-production
machines. On-site swab production utilizing 3D printing was still in the research stage and could be a good
avenue for entering the biomedical industry. Jain, however, was not convinced of this possibility since
neither the technology nor the market was established. Jain sat on the sofa, intently mulling over all possible
options SSI could pursue in the near and distant future.
Do

19
Kevadiya, Machhi, Herskovitz, Oleynikov, Blomberg, Bajwa Soni, Das, Hasan, Patel et al., “Diagnostics for SARS-CoV-2
Infections.”
20
Sohini Das, “Self-Use Covid-19 Testing Kits to Be Available at Stores for Rs 250,” Business Standard, May 21, 2021,
https://www.business-standard.com/article/current-affairs/company-gets-approval-for-india-s-first-self-use-test-kit-for-covid-
19-121052000292_1.html.

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 Page 9 W31120

t
EXHIBIT 1: PRODUCT PORTFOLIO OF SUPARSHVA SWABS

os
Product SKUs MRP/unit Unit Pack Inner Outer
Pack Pack
Cotton Buds 100s Bag 33.00 100 pcs 12 units 480 units
100s Jar 45.00 100 pcs 6 units 120 units
200s Jar 75.00 200 pcs 6 units 120 units

rP
300s Jar 109.00 300 pcs 6 units 60 units
24 Travel Case 21.00 24 pcs 12 units 360 units
Premium Paper Stick 80s Bag 45.00 80 pcs 12 units 240 units
Premium 100s Jar 56.00 100 pcs 12 units 120 units
Eco Jar 65.00 100 pcs 6 units 48 units
Safety Swab 75.00 50 pcs 6 units 60 units
Cotton Pads 50s Pouch 80.00 50 pcs 6 units 48 units

yo
Cotton Balls White & Colour 49.00 50 pcs 6 units 72 units
Premium 70.00 50 pcs 6 units 90 units
Cosmetic Buds Travel Case 24.00 24 pcs 12 units 360 units
Jar 45.00 80 pcs 6 units 120 units
Absorbent Wool 50 g Wool 60.00 50 g NA 24 units
& Pleats 100 g Wool 105.00 100 g NA 24 units
100 g Roll 90.00 100 g NA 24 units
400 g Roll 275.00 400 g NA 20 units
op
100 g Pleats 105.00 100 g NA 24 units
Wet Wipes & Dry 20s Baby Wet Wipes 52.00 20 wipes NA 48 units
Tissues 72s Baby Wet Wipes 139.00 72 wipes NA 24 units
Refreshing Wet Wipes 60.00 20 wipes 12 units 96 units
Germ Protection Wipes 75.00 20 wipes NA 48 units
Facial Tissues 75.00 100 wipes NA 54 units
Sanitizer 100 ml Fliptop Cap 50.00 100 ml NA 72 units
tC

500 ml Fliptop Cap 250.00 500 ml NA 20 units

500 ml Pump Cap 250.00 500 ml NA 20 units
Wooden Sticks Toothpicks 38.00 250 sticks 10 units 700 units
Premium Toothpick 45.00 250 sticks 10 units 100 units
Barbeque Skewer 98.00 100 sticks NA 24 units

Notes: SKUs = stock-keeping units; MRP = manufacturer’s recommended price; g = grams; ml = millilitres.
No

Source: Compiled by case authors based on data from Suparshva Swabs, Tulips Store (website), accessed July 10, 2022,
https://www.tulipshygiene.store/shop.
Do

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 Page 10 W31120

t
EXHIBIT 2: NYLON FLOCKED AND POLYESTER SPUN SWAB DESIGN

os
rP
yo
op
tC
No
Do

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 Page 11 W31120

t
EXHIBIT 2 (CONTINUED)

os
rP
yo
op
tC
No

Source: Company documents.

Do

This document is authorized for educator review use only by Amrutha Hippalgaonkar, Savitribai Phule Pune University until Jan 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860