Study on Manufacturing Sector

An Update on Our PGPM ProjectBY – Apoorva Yadav

Asmi A.NairInstitute of Business Management &

ResearchUniversity of Mysore

Introduction to Manufacturing Sector Global Scenario Indian Scenario Trends in Manufacturing Sector Past 10 Yrs

Study on Manufacturing Giants like: General Electric Company The L`Oreal Group Gowardhan Foods Kirloskar Brothers Limited

Product Offerings in Manufacturing Sector Competition Prevailing in Each Manufacturing

Sector

From the Birdseye View...

SWOT Analysis of Manufacturing Sector From Company`s Perception From Consumers Perception

Job Opportunity After MBA Initial Positions Remuneration Growth & Career Development

China ranked most competitive manufacturing nation in the world

China exports toys, apparel & electronic products

Germany is the 2nd & US is 3rd most competitive in this sector

India & Brazil moving up to capture 2nd & 3rd slot

The market in this sector demands Talent-driven Innovation

Japan has fallen down to the 10th position in this field once a leader.

Trends in Global Manufacturing Sector

According to India Brand Equity Foundation, India’s

manufacturing sector contributes about 16% to GDP

Nature of the sector has evolved from a public

sector dominated set-up to private enterprise-driven

India was ranked the 4th most competitive

manufacturing nation in Deloitte’s Global Index for

38 nations India`s manufacturing sector can reach US$ 1

trillion by 2025, as predicted by McKinsey & Co.

Indian Manufacturing Sector

CRI Pumps started a manufacturing unit in Tamil Nadu investing 30 Crores

Germany based Linnhoff set up Greenfield manufacturing unit investing 50 crores in Pune

Chennai based Tractors & Farm Equipment Ltd plans to invest 250 crore this year

Coca-Cola plans to establish Greenfield manufacturing unit in Nellore investing 1200 crore

India is also 3rd largest exporter of Chemicals in Asia

The HSBC Purchasing Managers Index touched 52.5 highest since March 2013

Investments in India

The Capital Good and Intermediate Goods (core investment for manufacturing) has decelerated at -4.0 % & -0.8 % in 2011-12

Central Statistical Office revised the base year of IIP from 1993-94 to 2004-05. It covers industries like- mining, manufacturing and electricity

Govt. plans to create 100 million skilled jobs by raising its share of GDP from 16% to 25%

Govt. has agreed 5 National Investment & Manufacturing zones outside Delhi-Mumbai Industrial Corridor

Hi-tech exports witnessed CAGR of 26%during 2007-11 period

Market Trends & Govt. Initiative

Manufacturing Sector encompasses innumerable amount of fields & business types

We have tried to project few fields of business, each different from the other

The study involves global and Indian companies in the ratio 2:5

Focus is on: Background of Business Company Owners Vision & Core Competencies of Business Size of Revenue & Profits Earned Corporate Affairs & Market Value

Company Profile

G E is an American multinational corporation in New York

Jeffrey Immelt is the Chairman of the Board & C.E.O. of GE 

Anish Shah is President & C.E.O. for GE Capital India GE's divisions include:

GE Power & Water GE Oil & Gas GE Aviation GE Transportation (& many non-manufacturing businesses

also) The annual revenue of the company is

US$146.045 billion (2013) The net income as of 2013 is US$13.057 billion

General Electric

There are about 305,000 employees working for the conglomerate

Vision - Building, Powering, Moving and Curing the world. Not just imagining. Doing.

Mission - To deliver quality and maintain standards. The best people & the best technologies taking on the toughest challenges

In the United States, GE common stock is listed on the NYSE, the London Stock Exchange & Frankfurt Stock Exchange

GE functions majorly in Electricity & Power Generation, Nuclear Energy, Wind Energy, Oil & Gas & Engine

manufacturing for aviation sector

L`Oreal is a French cosmetics & beauty company, registered in Paris

Jean-Paul Agon is the Chairman and CEO of the L`Oreal Group

Started by Eugène Schueller, a French chemist in 1909

It specializes in the field of: Cosmetics Hair & Skin Care Perfumes Dermatology Tissue Engineering

The L`Oreal Group

The company's markets its products through hair salons, perfumeries , supermarkets, health/beauty outlets, pharmacies & direct mail

2012 - L'Oréal launched its factory in the Jababeka Industrial Park, Indonesia, with an investment of USD$100 million

Brands under the L`Oreal Group: Lancôme

YSL Giorgio Armani

Biotherm Diesel

Ralph Lauren Kiehl's

The Body Shop Shu Uemura

Stella McCartney

Gowardhan, founded by Parag Milk Foods Pvt. Ltd. in 1992, is one of India's largest private dairies, output capacity of 1Lakh lt/day

Mahesh Israni is the CMO of Parag Milk Foods The dairy plant in Manchar, Pune is fully automated

of international standards & equipped with European technology

Their product portfolio includes: Skim Milk Powder Whole Milk Powder Ghee Processed Cheese Butter, Dahi Dairy Whitener & Gulab Jamun Mix powder

Gowardhan

Mission - Commitment to quality & innovation has resulted in huge investments in infrastructure & technology

The Bhagyalaxmi farm about 35 acres, is India's largest cow farm, houses up to 2500 cows

Primarily 2 brands - Gowardhan & Go Gowardhan is a traditional Indian housewife brand Go is targeted towards youthful, young, urban

consumers

Kirloskar Brothers Ltd is the holding company of the Kirloskar Group & includes subsidiaries like: Kirloskar Construction & Engineers Ltd SPP Pumps (UK) Kirloskar Ebara Pumps Ltd Braybar pumps Ltd (South Africa) The Kolhapur Steels Ltd.

India's largest pump manufacturer company Sanjay Kirloskar - Chairman &MD Annual Revenue - $700 Million USD (2011) Present in 70 countries & has manufacturing

plants in the UK, South Africa, USA & Thailand

Kirloskar Brothers Ltd.

SWOT Analysis

StrengthsWeaknessesOpportunities

Threat

We have taken into consideration competitors from each sector individually

The Competitors taken into consideration are: Amul – Gowardhan ABB Ltd. – General Electric

The analysis is done on the basis of Product Offerings Location of the Business Marketing & Media Strategies Target Customers

A. Competitor Analysis

ABB is a multinational corporation headquatered in Zurich, Switzerland

Chairman –Hubertus von Grunberg & C.E.O.- Ulrich Spiesshofer

Operates mainly into: Robotics Industrial Automation Power Generation Power Products – Transformers, Switchgears etc…

ABB has operations in 100 countries with 150,000 employees

Their annual revenue reached US$ 39.337 billion in 2012

Worlds largest builder of Electricity Grids

ABB Ltd.

Biggest competitor to Gowardhan, Strong in Northen and Western India

Headquatered in Gujarat, Founded by DR. Verghese Kurien

Amul is a cooperative which is jointly owned by 3 million milk producers in Gujarat

The annual revenue for the 2013-14 has been US$ 3.1 billion

Amul also has a plant in New Jersey from where it will export to Canada, Europe & US

Initial investment was 20 billion spread over 20 yrs which is now giving an ROI of 400 billion annually!

Amul – Anand Milk Union Ltd

It is a challenge to get a job in manufacturing sector because: The sector provides employment majorly for low-skilled labour Service sector is growing at faster speed than Manufacturing

sector Most of the manufacturing industries are set up in remote

areas/tier II cities There is huge inflation pressure still over the economy

However now the sector is picking up due to: Rise in Import Export, especially, from the Middle-East, Europe

& US Reduction in Macroeconomic uncertainty Consumer goods are performing at their best Engineering and transportation based goods are fastest

growing sectors in the economy

Job Oppurtunities for MBA Freshers

     

ONGC

6 Aug

Anywhere in India Scholarship MSc(Geology), MBBS,

MBA/PGDM,

BE/B.Tech

 Rs 4.50 lakhs p.a.

       

NEPA Limited

14 Aug

Madhya Pradesh Deputy Manager

/Project Officer

/Assistant Officer

MCA, MBA/PGDM,

BE/B.Tech, PG

Diploma, BA

Rs.10750–16750/-pm

IBM

14 Aug

Hyderabad Fresher MBA/PGDM,

BE/B.Tech

Rs.47000/- pm

Wikipedia.org Aranca Research

Moneycontrol.com profit.ndtv.com

Campaignindia.com Gowardhanindia.com

Freshersworld.com Images – Google.com

References

BMW Manufacturing Plant Thank You