Showing posts with label MNC. Show all posts
Showing posts with label MNC. Show all posts

Thursday, January 10, 2013

" We want to be no. 1”

B&E: What was the vision of Hyundai India when you started off?

HSL: We clearly wanted to be the number one passenger car manufacturer in the country (when we arrived) and today we are at the second spot with a 20% market share (passenger cars), which we are planning to take forward to 22% by the next year.

B&E: Any key learnings you would like to talk about from the Indian market?

HSL: When we entered India, we never realised that the Indian consumer is very focused on the family and looks for a family car; but after some time, we launched products on the same lines and the result is in front of everyone.

B&E: What will be your one line suggestion for a MNC entering the Indian market?

HSL: India is a market with a very high potential, you just need to focus on your target segment.

B&E: What are your future plans?

HSL: We are the largest exporters of passenger cars in the country and going forward, we want to make India a small car hub.

B&E: Hyundai still lags in the SUV segment; how are you going to address that?

HSL: We are doing a feasibility study right now and most probably, one new SUV will be introduced by next year.

B&E: How are the work conditions now at your plant after the strike?

HSL: It was just a small labour dispute, which has been taken care of. We are looking at competitive pricing for the i20 and will shift some portion of its production next year. While India will remain as the main production hub, the European orders for the car will be met from the new facility.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
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Thursday, October 18, 2012

MNCS IN INDIA: SELF INFLICTED WOUNDS

Post liberalisation, MNCs gatecrashed without the due diligence

Titan-Timex, TVS-Whirlpool, British Telecom-Bharti, Escorts-Yamaha and Lufthansa-Modi Group are just few examples of clashes. In fact, Lufthansa is a classic example of tying up with a partner, who was not only a misfit in their work culture, but was also totally new in the field of aviation. And within three years of this deal, Lufthansa broke off with the Modis and filed a suit against them.

There are also cases where MNCs suffered when they did not Indianise their strategies. Electrolux was a perfect example, whose decline aided the rise of Samsung & LG. Apart from McDonald’s, all QSR giants perfectly fit in this bill, of companies who pay the price for not following the time-honoured management strategy of ‘Go global, act local.’ Stalwarts like Yum! Brands, in fact, have had to shut shop after launching their flagship brand, KFC in India. “We made certain mistakes and we had our lessons to learn. We stuck it out with Pizza Hut and we made sure we were relevant to Indian consumers,” explains Niren Chaudhary, MD, Yum! Restaurants India Pvt. Ltd. Domino’s and Kelloggs also made the same blunder of not Indianising their product and prices. As a result, their initial ventures were browbeaten by the Indian market. Electrolux went down miserably due to the aggressive product, pricing and marketing strategies of Korean chaebols. Many of these players learned their lessons and came back with a strategy suitable for the Indian market. But they chose to learn it the hard way, when they could have easily taken the freeway.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Monday, September 10, 2012

MOBILE MANUFACTURING: CRITICAL MASS

Mobile handset production in India has seriously lagged the Telecom Services Revolution. Current trends provide an opportunity to rectify this anomaly. Can India take it up when it matters? 

They are likely to follow the trail of the MNC giants before them and get into full fledged manufacturing. Sure enough, Micromax is expected to invest half of the money raised through its upcoming IPO to set up manufacturing in Chennai. Other players like Videocon, Lava, Wyncomm and Karbonn are planning to start manufacturing operations, while Spice has commenced trial production. In fact, even Chinese players like ZTE and Huawei feel that the 5-10% of benefit on shipping from China is attractive enough to set up operations here. “With most local companies including ourselves seriously considering manufacturing in India, the country seems to be emerging not only as the second biggest EMS location but also a mobile manufacturing hub,” says Arvind Vohra, Co-Founder & MD, Wynn Telecom Ltd.

There are major reasons for visualising India as a global manufacturing hub or production factory. Firstly, the cost effectiveness of manufacturing in India. Ganesh Ramamoorthy, Analyst, Gartner, states, “The opportunity is very high to set up manufacturing base in india. Two factors are involved for decision (to manufacture) – volume targetted by companies and business model used.” Mobile connections in India will grow by 27.3% in 2010 to reach above 660 million with revenue of $19.8 billion to be generated (mobile services). Along with this, mobile penetration for 2010 is projected at 55.9%, which is expected to reach 82% by 2014. Mobile production revenue in India is expected to grow from $10.14 billion to $28 billion at a CAGR of 18.1% (Gartner). According to Pankaj Mohindroo, President, ICA, “Around 135 million phones were manufactured in India last year, which is 11% of total global manufacturing. Out of this number, around 70 million were exported.” The plan is to take the share to 20%. There are people who contest these figures, saying that manufacturing in India is actually more of assembling.

S. N. Rai, Co-founder & Director, Lava International Ltd. admits, “In the long-run China will not be too competitive as compared to India. In order to get the ball rolling for manufacturing in India the players need to achieve a ‘Critical Mass Production and Market Base’ which will make manufacturing here profitable.” Now it’s up to the government to seize the opportunity and ensure that the local handset industry gets the required force and capability to meet the demands in future. One of the key demands of the industry is to be provided STPI as was done for the IT industry. For a manufacturing sector to grow, the most vital aspect is the ecosystem and supply chain, where China has a huge advantage. Presently, very little component sourcing is happening in India. Only electrical and mechanical parts are made here whereas electronic components are all imported. Just as handset manufacturers are showing interest, the government needs to attract component vendors to set up production here, which will help keep the handsets competitive. A thrust at this critical time can do wonders for mobile handset manufacturing in India. It is a bus we can ill afford to miss.


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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