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India Welding Market Sales. India Welding Market Share. Indian Market Considerations. India Market is not a “Zero Sum Game” LE’s global presence will allow for aggressive entry Market is highly fragmented with small firms Market growth will present major opportunity
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Indian Market Considerations • India Market is not a “Zero Sum Game” • LE’s global presence will allow for aggressive entry • Market is highly fragmented with small firms • Market growth will present major opportunity • Most of LE’s future growth will come from India/China • HR policies in India similar to US • LE can use its Competitive HR practices • Few adjustments need to be made
Indian Market Considerations • The Indian Welding market is growing faster than GDP • Due to massive infrastructure spending • Thousands of miles of new pipeline are also being planned • Construction demand will continue to increase via urbanization • Heavy manufacturing increases will also require welding equipment and consumables
Implementation Strategy • Implementation will utilize a two prong entry • Strategic Alliance with Ador Welding • Will allow immediate production of consumables • LE will have 30% ownership in major player • Construction of Greenfield Plant in Silvassa • Access to India & Western China • R&D to resolve India specific equipment issues • Alliance will build demand that plant will supply
Strategic Alliance Details Ador Welding Details
Strategic Alliance Details Acquisition Options and Costs
Strategic Alliance Details Appreciation of Lincoln Electric’s Ador Welding Ownership
Greenfield Plant Details Cash Flow Projections