Assignment – 1
Group – 5
1. What are the key success factors for Electrosteel? Is international expansion a good idea?
India had policies that protected local industry, and that combined with complicated government bureaucracy, complex duties, and convoluted tax structures that made it difficult for multinationals to conduct business there. Electrosteel being the local player could enjoy the protectionism provided by the local state and central governments. As the state and the central governments were investing highly on the infrastructural projects, Electrosteel was growing at a rapid speed owing to these new infrastructural projects across the domestic market.
Biggest producer of CIP and DIP:Being the biggest producer of CIP and DIP in the domestic market Electrosteel they have a Well Established brand in India and maintained an extensive local network of agents and a team of sales professionals.
Operational Cost is very Low: In India the operational costs are very low and the labour is available at cheaper cost than those used by competitors. The skilled labour is available in India at fairly low wages and the employees at Electrosteel are loyal.
Huge market: The market for Electrosteel was huge not only in India but also in International market. As they were the best amongst the production of DIP and CIP pipes they had a huge market available in front of them to cover.
Well planned manufacturing, production and finishing line: Setting up a plant in Kardah, near Kolkata offer them infrastructure support of the existing CIP and the services of the existing staff. It also provides simplified Management control and engineering support.
Early entry into market in 1965 gave it