Company Profile Bharat Wire Ropes Ltd. is located in Mumbai, India. Founded 37 years ago Products: 30 varieties of Wire Ropes Wire Rope Assemblies Defense products. Operates in one plant with 450 employees.
Steel Wire Rope Industry in India Established in India in the 1920s Remarkable progress Various types of high carbon Alloy steel Special steel wires The Industry has grown about 6% 5% of the total steel consumed in India
Chinese Market China's economy changed from a centrally planned system to a more market-oriented economy. Rapidly growing private sector and is a major player in the global economy. China in 2009 stood as the second-largest economy in the world after the US.
Product Description Wires that form the strand Multi-wire strand: laid helically around a core The Core
Overall Strategy of Entry Exporting Small scale of entry – less risk Use its expertise with the heavy competition and know-how At least keep on the break-even point Face one of the biggest markets in the world Achieve the experience curve Find a local companys partnership in day-to-day operation
Consumer Channel / Distribution Concentrated systems Short distribution channel Transportation by sea to the top ten Chinese sea ports Then transport it by land – Local partner Analyse all the possibilities of transportation
Pricing/Strategic choices Product sourcing- Raw materials procured domestically machines imported Barriers to Entry-Chinese laws for setting up operations, piracy issues Problems anticipated after entry: Bureaucracy and Red tape to secure orders from state run companies
Low Cost Approach: Product differentiation is hard low cost can give BWRL an edge Value Creation Activities Logistic Management : Availability adds value Operation Management: Streamline to lower the cost Customer Service: Get Feedback and improve overall
Financial situation Acquired company, hence is a financial analysis essential Familys holding company - funding The company has done restructuring adjustments last year Huge potential to gain from increasing their exports
DuPont Approach to analyze a firm by evaluating inters relationships among many of the performance measures Operating efficiency – profit margin Asset use efficiency – asset turnover Financial leverage – equity multiplier ROE (return on equity)
Shift in Customer Base
Conclusion Attractive market Government issues Competitiveness of the market Company's capabilities Conservative approach – kick back commission's to wholesalers More aggressive approach – localization strategy
Guys, in the future, if you are in need of wire ropes, you know who to call! Thank you