Electro Steel Case

• Situation Fact o Corporate statement
 Aim to be world class -- Committed to customer satisfaction and demostrating strong leadership in design and manufacturing. o Internal
 Marketing
 Indian largest manufacturer DIP & CIP since 1965 -> indian market leader. 90% DIP and 60% CIP
 Export still small: 25K to Asia and Middle East
 Wide spread domestic market 28 state in India
 Domestic market growth so so as less international funding
 Q1 is order peak time and fall 30% in Q2

 Operation
 First DIP plant manufacture in 1994 located in Kardah with capacity 130K tonnes annualy and 15 standart size (2001)
 Using infrastructur of existing CIP plant and the service of trained staff.
 Simplified management control and engineering support.
 Overal production : 231K tonnes CIP & DIP - 2001
 Branch sales office in Spore, Lebanon
 Improved product quality means higher acceptance to market
 Financial
 Revenue : $ 124M (2001)
 Investment structured by casting and finishing
 Incremental addition of 50K tonnes / year capacity cost $ 40M
 Invest $ 2M to expang finishing capacity
 Invest $ 20M in blast furnace to provide better control quality of molten iron
 HR
 German consultant worked with skilled in house personel, inclide design engineer and civil contractor
 German technical knowledge was critical to start up
 Very loyal employee o Eksternal
 Competitor
 New domestic competitor started manufacturing DIP in 2001 with market share 5% DIP and 20% CIP. Need 2 years to be sorious threat
 Import market : 5% DIP and 20% CIP
 International competitor still wait an import duties policy
 Politic

 Economic
 Price competitor in domestic market as competition
 Social
 Technology
• TOWS
• BCG
• Strategy o Corporate strategy : growth
• Strategic Option o Opportunities
 Global
 Asias