ABSTRACT
Vasuki Chemicals was set up in 1995 by three friends. Soon there were disagreements and fights among them. The firm was operating in a highly competitive environment with excess capacity in the industry. While the big buyers played one producer against another, manufacturing companies competed on the basis of prices, since differentiation was very difficult to achieve. Vasuki’s costs were much higher than that of the industry. Though efficiency was apparently the basis of contention among the partners, they found it impossible to reach a common ground and, by 2006, decided to part ways.
