A case study asked during ICICI GD.
Kaveri Amma is a 40 yr old woman who has 2 daughters - 1 is married and the other is doing her 10th standard. She works in a cooperative where 35 other women support her. She makes ropes in the cooperative and earns Rs.600/ month. She was looking for alternative ways of making a little more money. She knew how to make a special kind of pickle. She bought the required stuff - tomatoes 8kg at a total cost of Rs.30, 1.5 l of oil at Rs.90, 40, 200 gm bottles at Rs.20, miscellaneous ingredients (ginger, garlic etc.) at Rs.57.
She had an earning of Rs.203 from this venture. She used to sell these bottles at Rs. 10/bottle when market price for such pickle was Rs.16. Since she was handpicking her tomatoes her quality was also maintained. A friend told her that if she did this exercise just 4 times a month then she would be able to earn more than what she is presently earning with her rope trade. A young graduate Sheela heard about Kaveri Amma €™s business and offered her a loan of Rs.15000 to set up pickle making unit plus a Rs. 5000 grant. Should Kaveri accept this offer?