Bio-Caps Nepal

Bio-Caps India manufactures gelatin capsules for pharmaceutical manufacturers in India. The capsules are made in part from animal products, which represents an area of cultural sensitivity and requires the trust of end users and intermediaries who recommend specific drugs. Currently, Nepalese manufacturers deal with a single supplier and there is an opportunity for Bio-Caps to open a branch office in Kathmandu to work with local producers to provide better service. However, Nepal remains a poor country with very limited physical or business infrastructure, and it is far from certain that projected market demand can be met in circumstances of such uncertainty. The case focuses on the specific form and business model selected by the company and considers whether these are suitable for the environment to be explored.