“Jute Cottage” at crossroads: succession dilemma

What is it about?

The case is about a teacher turned entrepreneur, Nasreen, who hailed from Kolkata. The business idea came to her in 1993 when she was working as a teacher in Bangalore. She used to carry jute bags purchased from Kolkata to work. These bags were liked by her colleagues and they requested her to buy some for them whenever she visited Kolkata. As more people wanted these bags Nasreen could recognise the business opportunity and she began to sell these bags in a small counter at home during evening hours. She gradually included Kolkata sarees and ethnic jewellery to her home shop. During that time, her husband, Bilal, who was involved in the business of trading jute packaging material, had a setback and the family was thinking of identifying alternate sources of income. With Nasreen’s experience of selling jute bags, she built confidence in Bilal and they decided to open-up a store to sell jute bags and accessories. They named it ‘Jute Cottage’. Though it was a struggle initially, the business took off and ‘Jute Cottage’ became known for its quality and unique designs. Currently, they have four company-owned and 10 franchise outlets. Grooming the business for more than two decades, Nasreen and Bilal are now planning to retire and are wondering how to successfully pass on the baton to someone who could sustain and further grow their dream company because their only son Ataullah is not interested to take over the business. The duo is contemplating various succession planning options to sustain the brand ‘Jute Cottage’.

Featured Image