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

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

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

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  1. Group #6Cleber Hamada, RaghavMalhotra, Alejandro ChinchillaMayankMittal & 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

  6. Overall Strategyof Entry • Exporting • Small scaleofentry – lessrisk • Use it’s expertise withtheheavycompetitionand know-how • Atleastkeeponthebreak-evenpoint • Face oneofthebiggestmarkets in the world • Achievetheexperience curve • Find a local company’spartnership in day-to-dayoperation

  7. ConsumerChannel / Distribution • Concentrated systems • Short distributionchannel • Transportationbysea to the top tenChineseseaports • Thentransport it byland – Local partner • Analyseallthepossibilitiesoftransportation

  8. 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

  9. 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 • CustomerService: Get Feedback and improve overall

  10. Financial situation • Acquired company, hence is a financial analysis essential • Family’s holding company - funding • The company has done restructuring adjustments last year • Huge potential to gain from increasing their exports

  11. 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)

  12. Shift in Customer Base

  13. Future Target

  14. 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

  15. Guys, in the future, ifyou are in needofwireropes, youknowwho to call! Thankyou

  16. Specialthanks to Dr. S. K. Shardha

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