Bangalore: Time was when an Indian PC user could not do away without the name “Moser Baer”. The drawers and CD holders was stuffed with Moser Baer’s CDs and DVDs. But today the brand is rarely talked about. Once a Compact Disc giant, the company is on the verge of closing down. According to Forbes India, Moser Baer is in debt and is in no position to pay back. The production at manufacturing plants and hence the business has slowed down.

Founded in 1983 and hailed as a promising startup, Moser Baer went on to become the world's 2nd largest optical storage media manufacturer. But the recent onset of many Chinese brands has hurt the company to the extent of it standing ready to shut shop.

If looked closely on what went wrong, there are some lessons to be learnt for the new startups and their founders.

5. Stay Ahead of Change and React Quickly

Deepak Puri, the founder of Moser Baer was quick in understanding the change happening in personal computer and consumer storage business. In 1998, he took a great risk and started with optical media, a business which was about to take off. This worked well for the company.