Pepsi-BASIX Partnership

Authors: Bajaj, Gita; Bhullar, Neelu
Source: Richard Ivey School of Business
Year: 2011
Company Name: BASIX; PepsiCo
Number of pages: 16

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BASIX was a microfinance company with livelihood promotion as its key agenda. It had a strong presence in the poverty-ridden state of Jharkhand, India, where marginal farmers were struggling to make ends meet. In 2005, PepsiCo India Holdings Pvt. Ltd (Pepsi) entered an agreement with BASIX for promoting contract farming of potatoes in Jharkhand. As per the agreement, Pepsi was to supply seeds and get an assured supply of chip-grade quality potatoes. BASIX was to provide micro-finance to the farmers and render training and consultancy for package of practices (POP). Farmers were to get assured buyback of the produce and also an opportunity to learn modern farming practices. The collaboration was successful in the first year and the project witnessed a very high growth in the second year. The second year results, however, were not as encouraging as the first year. The case is poised at this juncture, where the project manager has to present his view on how to move ahead with the agreement.

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This case is available for purchase from Ivey Publishing. Case #: 9B11M010, Teaching Note #: 8B11M010

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