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Group #6 Cleber Hamada, Raghav Malhotra, Alejandro Chinchilla Mayank Mittal & Kristoffer Sletten.

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Presentation on theme: "Group #6 Cleber Hamada, Raghav Malhotra, Alejandro Chinchilla Mayank Mittal & Kristoffer Sletten."— Presentation transcript:

1 Group #6 Cleber Hamada, Raghav Malhotra, Alejandro Chinchilla Mayank Mittal & Kristoffer Sletten

2 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.

3 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

4 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.

5 Product Description Wires that form the strand Multi-wire strand: laid helically around a core The Core


7 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

8 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


10 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

11 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

12 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

13 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)

14 Shift in Customer Base

15 Future Target

16 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

17 Guys, in the future, if you are in need of wire ropes, you know who to call! Thank you

18 Special thanks to Dr. S. K. Shardha

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