israel swot analysis for watts

Watts Water Technologies Inc.

Investment Proposal

- Israel

AGENDA

Industry Introduction

About the Company

Financial highlights

SWOT Analysis

Proposal

WATER

INDUSTRY Scarcity of water lead to the development of efficient water

technologies.

Desalination of sea water

Recycling of Waste Water

Israel nicknamed as the ‘Silicon Valley’ of water technologies.

Huge amount in R&D invested

Targeting to become the exporter in coming years

ABOUT

Experienced business unit- 1985 in Delaware

Manufactures and sells water safety and control products

Plumbing and Heating industry – Leader, in a transition to be

lead free

Capital spending of $18.3 million on new foundry and

machinery in the U.S. to produce lead free products- In response

to the U.S. Federal Reduction of Lead in Drinking Water Act.

FINANCIALS

REVENUE

SOURCES

OPPORTUNITY

50% grant on Research and Development expenditure by Israel

government

Highly Skilled and Productive labour force

Excess polluted water available for purification, due to presence

of industries

Hi Tech Atmosphere

Equal treatment to local and foreign investors

THREATS

Environmental approval of plant

Political instability

High Labour costs; $18.1 avg wage per hour

High Tax rates Corp Tax – 25%, VAT – 18%

STRENGTHS

Geographically diverse business

Niche market leader

Competitive and Extensive global sourcing capabilities

Application of Six Sigma and Kaizan principles

STRENGTHS

CONTD…

Manufacturing facilities are ISO 9000, 9001 or 9001 certified

Pursues comprehensive Research and Development programmes

WEAKNESS

High Operational costs

Delay in finishing of products

Backlog of 84.5 millions worth of stock

Reduced Margins due to improper allocation of cost

PROPOSAL

Investment required - $ 150 Million

16,500 cubic meters per day

Expected Revenue - $ 100 Million

Ref: Recent plant installed

QUESTIONS PLEASE…