Extended Essay Manan-final

Extended Essay

Business and Management

Research Question:

How has BHARAT WIRE ROPES positioned itself effectively to compete with other

rope manufacturers in India?

________________________________________________________________________

Candidate Name: Manan Mittal

IB Candidate Number: 004733010

School Name: D.Y. Patil International School

School Number: 4733

Adviser: Mr Husien

Date Submitted: 6/3/2013

Word Count:3948

Manan Mittal 004733010

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Abstract

BWR is a 40-year-old company, which has been newly taken over by a set of

professionals who are the best in their fields. I have conducted this Extended Essay to see

how well has Bharat Wire Ropes(BWR) established itself in the market and are there any

immediate threats to the company. In this essay I have analyzed a few strategies adopted

by BWR and also have suggested new strategies, which BWR could use in order to

compete efficiently in the wire rope market. Hence my research question-“How has

BHARAT WIRE ROPES positioned itself effectively to compete with other rope

manufacturers in India?”

In order to conduct my analysis I have used tools like SWOT, Ansoff Matrix, Marketing

Mix and Market Mapping. Each tool helped me to analyze the company in an efficient

manner. The market positioning helped me efficiently position BWR along with other

companies on the basis of factors like Quality and Price these were then used as a base

for comparison with major competitors like Usha Martin , Mahavir Wire Rope and

Vikrant Wire rope. All the data for the Market Mapping was collected by conducting

secondary research on a number of websites and also by interviewing a number of clients

of wire rope companies.


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By conducting my research on BWR I finally concluded that the company had managed

to effectively establish in the market as compared to the other dominant players in the

market.

Word count-237


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TABLE OF CONTENTS:

1. Introduction……………………………………………………………………..…5

2. Rationale…………………………………………………………………….…….8

3. Methodology………………………………………………………………………9

4. SWOT………………..……………………………………………………………10

5. Ansoff Matrix……………………………………………………………….…….18

6. Market Mapping (Positioning)………………………………………...………….21

7. Analysis of Marketing Mix……………………………………………………….23

• Promotion

• Product

• Price

• Place

• Process

8. Conclusion…………………………………………………………………………30

9. Work sited………………………………………………………………………….31


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Introduction

Bharat Wire Ropes began its operations in the year 1986 as a partnership firm by the

Shah family. Over the years they expanded their operations significantly and today they

are a multi million-dollar enterprise.

“The company’s product portfolio covers ropes with a diameter of 6mm to 84mm, which

caters to a range of industries such as fishing, elevators, cranes, mining, construction,

shipping and offshore/onshore oil exploration. Bharat Wire Ropes Limited has a diverse

mix of clients ranging from Overseas Consumers, Private Players, the entire Indian

Defense Segment and Government and Semi – Government Organizations”1

“Some of their top clients are:

• Private Players: Suzlon, ABG Cranes, TATA, Kone Elevators, Bhushan, JSPL, MSL.

• Defense Segment: Ministry of Defense, Indian Army, Indian Naval Force, Material

Organization, Indian Air Force etc.

1 economic times. N.p., n.d. Web. 3 Oct. 2012. <http://m.economictimes.com/news/news-by-

industry/indl-goods/svs/engineering/bharat-wire-ropes-to-invest-rs-500-crore-in-new-plant-in-maharashtra/articleshow/17320504.cms>.


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• Government and Semi – Government Organizations: Indian Railways, Major Port

Trusts, Electricity Boards, Shipping Corporations, ONGC, ISRO, Coal India Limited

and its subsidiaries, BHEL, BEML etc.”2

“The quality management system(QMS) at Bharat Wire Ropes Limited has led to their

accreditation by reputed agencies such as the British Standard Institute and ANSI –

ASQNational Accreditation Board.”3

The company has also formulated its own rating scale to rate all the vendors that supply

material to them. The ratings are based on criteria’s such as – product quality, service

quality, responsiveness and customer service. The vendors are subjected to thorough

quality checks at periodic intervals &the ones who fall short of expected standards are

rejected. This procedure ensures that all products the company manufacturers are of the

highest quality, safe and reliable (this is extremely important keeping the end use of the

wire ropes in mind – elevators / mining / construction).

Mr. M.L. Mittal is presently the Managing Director at Bharat Wire Ropes Limited. He

has been a corporate Finance expert and has over two decade experience with the

2 bharat wire ropes. N.p., n.d. Web. 25 Nov. 2012. <http://bharatwireropes.com/About%20Us/M__12>.

3bharat wire ropes. N.p., n.d. Web. 25 Nov. 2012. <http://bharatwireropes.com/About%20Us/M__12>.


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Welspun Group4. “In the year 2010, Mr. Mittal along with two other entrepreneurs

acquired Bharat Wire Ropes for INR 200 crore through a SPV (Special Purpose Vehicle)

Gaji Mercantile”.5

Post the takeover; a number of professional stalwarts were brought in the company to

head its different divisions.

“These professionals have held held top positions in flagship Companies of India in

different verticals such as pipes, terry towel, power, banking, finance and wire

ropes.Bharat Wire Ropes Limited with the amalgamation of the exceptional talent,

experience and resources aims to create a world-class organization that would provide

unmatched value for its customer’s and a platform for its people to dream & achieve

their goals.”6

4 welspun. N.p., n.d. Web. 17 Oct. 2012.

<http://www.welspun.com/content.asp?Submenu=Y&MenuID=1&SubmenuID=14>.

5The Economic Times. N.p., n.d. Web. 30 Dec. 2012.

<http://economictimes.indiatimes.com/%20news/news/by/industry/indl/goods/svs/engineering/bharat-wire-ropes-to-invest-rs-500-crore-in-new-plant-in-maharashtra/articleshow/17320504.cms/articleshow/17320504.cms>.

6bharat wire ropes. N.p., n.d. Web. 24 Dec. 2012. <Bharat Wire Ropes Ltd. "About Us." Bharatwireropes.com. N.p., n.d. Web. 24 Dec. 2012. <http://bharatwireropes.com/About%20Us/M__12>.>.


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Rationale

The vertical in which the company Bharat Wire Ropes (BWR) Limited operates in is a

very competitive one. It’s been two years since the new management has been running

the affairs of the company (post the takeover in 2010). Through this essay, I would like to

evaluate how have they have positioned themselves to effectively compete with other

rope manufacturers in the market.

The aim of the three individuals who got together to take over this company (in 2010)

was to transform this company and make it a global leading supplier of wire ropes. Since

its been two years post the takeover, this essay will analyze BWR’S performance in terms

of positioning themselves appropriately in the market and if not, what steps could they

take to ensure their vision & mission is achieved.

My father was part of the team that took over this company and the company’s line of

operations is of a great personal interest to me.


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Methodology

Primary research for this essay has been obtained from interviews of BWR director-

Mr. Mayank Mittal and interviews of some customers of BWR. Along with secondary

data (on quality) helped me position BWR and its competitors.

Secondary research for this essay has been obtained from the company website, news

websites and the company presentation.

Three tools have been used to conduct this research:

1. Market Mapping – This tool has assisted me in analyzing the current positioning

of all major wire rope manufacturers in India (including BWR)

2. Marketing mix- I have analyzed the marketing mix elements of BWR and also

compared the same with its competitors.

3. Ansoff matrix –The Company is now considering changing its strategy (in terms

of clients that it targets). This tool enabled me look at this strategy and also

evaluate the pros and cons of their new plan.

4. SWOT – SWOT Analysis helped me ascertain the company’s strengths and

weaknesses and also gauge the opportunities and threats it faces in this market.


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SWOT

SWOT stands for strength, weakness, opportunities and threats, strengths and weakness

are internal factors whiles as opportunities and threats are external. SWOT helps a

business to understand where it stands and helps to create aims and objectives for the

future.

Strengths

1. BWR holds 15 certifications and licenses7, which are basically to ensure the

quality of the product (“certifications include ISO, RDSO Approvals, BIS

Licenses, DGMS Approval, MMD Approval”4 to name a few). Its due to their

reputation of providing high quality products (that these certifications assure) they

have a strong client base. These certifications have been earned over a period of 4

decades. Each approval is not easily gained. It takes a long time for any new

entrant to get these approvals because of the bureaucracy and red tapism involved.

BWR is one of the few wire rope manufacturers that have these approvals in place

and this gives them a distinct competitive advantage.

2. BWR was established almost two decades ago. The company through the supply

of high quality wire ropes has built a strong image and reputation in the market. It

7bharat wire ropes. N.p., n.d. Web. 25 Nov. 2012.

<http://bharatwireropes.com/About%20Us/M__12>.


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has also developed a loyal customer base and this is their biggest strength as a

company.

3. Post the takeover of the company, the new management team brought in a number

of professional stalwarts to head different divisions of this company.8 This

increases specialization & professionalism in the company, making the company

run more efficiently.

4. The top management of BWR has a combined work experience of 200 man-years

and this experience aids them in running the company efficiently.

5. Bharat Wire Ropes has a diverse product mix9 which increases the customer base.

They not only manufacture wire ropes but also make slings and supply strands.

Diversified portfolio helps the company to not be dependent on any one customer

/ industry. Thus saving them from the cyclical downturn in any one industry at

any given time

6. BWR has been a recipient of several awards.10 This not only helps in building the

image of the company with customers but also with other stakeholders such as

8bharat wire ropes. N.p., n.d. Web. 25 Nov. 2012. <http://bharatwireropes.com/About%20Us/M__12>.

9Bharat wire ropes. N.p., n.d. Web. 8 Jan. 2013.

<http://bharatwireropes.com/Product%20Brochure%20by%20Application/M__38>. 9Refer to appendix 7

10Bharat wire ropes. N.p., n.d. Web. 30 Dec. 2012.

<http://bharatwireropes.com/Achievements%20and%20Awards/M__19>. 10Refer to appendix 4


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employees. There is a sense of pride that employees get by working for a

company that is recognized as a leader by external organizations like EEPC (that

confer the awards).11

7. BWR is one of the biggest wire rope companies in India. Their installed capacity

is 10,000 tonnes12. This ensures significant economies of scale for the company.

Weakness

1. Post the takeover of BWR, the company is now run in a very different way than

the erstwhile owners ran it. Earlier it was run more like a family owned business.

With professionals coming in, the functioning of the company has undergone a

change, along with the organizational structure. Workers have started feeling

insecure about their jobs.13 The main reason being that the new management

stresses a lot on quality and low rejections. Thus the feeling amongst a section of

11 Refer to Appendix 4 & 5 12The Economic Times. N.p., n.d. Web. 30 Dec. 2012.


13 Refer to Appendix 2


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workers is that the company or supervisors can ask them to leave if there are

rejections over and above the tolerance limit in the division they are working in.

2. BWR is a privately owned company. Raising resources is therefore a challenge

for the company. Raising funds is possible only through private sources or

through bank term loans. However, bank term loans are a very expensive source

of finance. BWR’s main competitor, Usha Martin is a public limited company14

giving it access to finance that is not available to BWR.

3. BWR relies on its network of suppliers for the raw materials required for

manufacturing the wire ropes. There have been several occasions in the past

where the suppliers have not been able to meet the timelines for delivery and this

has led to delays in productions and lost orders. Further, under some contracts

BWL has had to pay penalty charges to its customers for late delivery and This

eats into their margins

14Usha Martin. N.p., n.d. Web. 5 Jan. 2013. <http://www.ushamartin.com/>.


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4. BWR’s plant is located in Maharashtra. This state is presently the most expensive

state in India for the supply of electricity.15 Electricity prices therefore are very

high and some of their competitors are based in investor friendly states of India

wherein the charges for commercial usage of electricity are low. This again gives

them a significant cost advantage over BWR.

Opportunities

1. BWR’s plant is located near Mumbai (Maharashtra), a port city. This location has

a distinct advantage with respect to exports. Further, the distance from BWR to

Jawaharlal Nehru Port in Mumbai is around 94.6km16. Thus the transport cost

from its plant to the port is minimal.

2. BWR’s plant is located in an area that is identified by the local government as an

industrial zone. The company is eligible for various subsidies because of this

location and this helps them cut the cost of production.

3. The demand for wire rope has been increasing, especially “from leading

international players in oil& gas, mining, elevators and the infrastructure

15Mercindia. N.p., n.d. Web. 3 Jan. 2013. <http://www.mercindia.org.in/pdf/Order_SRParanjpe_62000142002.pdf>. 16 Refer to Appendix- 11


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sector,”17. In order to cater to such demand BWR is planning to open a new unit

in Chalisgaon, which will increase the production capacity from 10,000 tonnes to

76,000 tonnes.18

Threat

1. The wire rope market is very price sensitive. Chinese companies act as an

immediate threat cause their labor cost is equal to/less than the labor cost in India.

The Chinese government also offers many subsidies in order to promote their

domestic companies. This decreases the cost of production significantly for

Chinese companies.

2. Usha Martin is BWR’s biggest competitor in India. Usha Martin is backward

integrated as it not only manufactures wire rope but also extracts raw materials,

which contribute in making these ropes.19They are into power, coal, iron and steel



18 The Economic Times. N.p., n.d. Web. 30 Dec. 2012. <http://economictimes.indiatimes.com/%20news/news/by/industry/indl/goods/svs/engineering/bharat-wire-ropes-to-invest-rs-500-crore-in-new-plant-in-maharashtra/articleshow/17320504.cms/articleshow/17320504.cms>. 19Usha Martin. N.p., n.d. Web. 2 Jan. 2013. <http://www.ushamartin.com/>.


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mining that are the main raw materials for wire strands which in turn is the main

raw material for wire ropes. This gives Usha Martin a competitive advantage, as

they are not dependent on suppliers for raw materials. Deliveries are on time and

hence they are able to manufacture and supply ropes to their clients on time.

3. The German wire rope companies are more advanced and have better quality of

ropes therefore they are a threat in an international market, where buyers are very

quality conscious. BWR is looking at increasing their supplies to overseas

markets, and to do so it must ensure that it competes on quality than on price.

Evaluation:

“India will lead the global economy in real GDP growth in 2013, outpacing neighboring

China, according to the Rapid Growth Market (RGM). Forecast released on Monday by

Ernst & Young (E&Y).”20 Further, “the Planning Commission of India has projected that

investment in infrastructure would almost double at US$ 1,025 billion in the Twelfth Five

Year Plan (2012-17), compared to US$ 514 billion in the Eleventh Plan.”21

These factors coupled together will ensure that demand for wire ropes will continue to

increase. BWR has been operating in this market for over two decades now and they have

202point6billion. N.p., n.d. Web. 1 Feb. 2013.

<http://www.2point6billion.com/news/2011/10/27/report-india-to-be-world%E2%80%99s-fastest-growing-economy-after-all-10351.html>.

21http://www.oifc.in/secrs/infrastructure


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a very good understanding of the market and customers needs and wants. A diversified

portfolio enables them to meet the needs to different types of consumers/industries.

Further, with their investment of Rs 500 crore in a new plant in Maharashtra, their

installed capacity will increase significantly (from 10,000 tonnes to 76,000 tonnes)22

Keeping the infrastructure growth of the country in mind, the increase in capacity will

enable BWR to meet demand effectively. With professionals being brought in to head the

different divisions, in the long run the company will start seeing the benefits with

improved quality and lower rejections. This will also enable them increase their supplies

to export markets.

Under the new management, the company has started to show positive signs in terms of

growth and investment (the Rs 500 crore investment to increase capacity).




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Ansoff Matrix

Existing Product New Product

Existing Market Market Penetration Product Development

New Market Market Development Diversification

The Ansoff Matrix is an analytical tool that helps the managers to strategize their product

according to the market growth. The reason I’m using this analytical tool is to see which

business strategy is adopted by Bharat wire ropes .BWR uses the market development as

the product already exists but BWR is entering new markets in order to increase their

customer base.

Market development

“Market development is the medium risk growth strategy where the businesses sell

existing products in a new market.”23Post the takeover BWR is shifting its customer’s

base from government orders to private orders

BWR entering new market with existing products.

• BWR will significantly increase its market share

23 Hoang, Paul. Business And Management. Melton: IBID, n.d. Print.


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• This medium risk strategy of entering new market will be beneficial to BWR as

BWR can focus on efficiency and attracting private customers thereby making the

business more profitable. At present, the company mainly focuses on government

orders. However, with increased bureaucracy and red tapism and low margins,

they are contemplating targeting private customers in a big way. Though, they

presently supply products to this market, the share is miniscule compared to

government orders.

• New markets would translate into spreading the risk for BWR. Thus, any

slowdown or lack of funding from government orders can still be offset from the

diversified customer portfolio

Evaluation

There is a change in BWR’s clientele, before the take over in 2009 70% of orders were

government orders and over time there has been an increase in the private orders from

20% to 32% and exports from 10% to 24%. Currently BWR is taking orders from small

private companies and few big private companies, however now BWR is aiming to take

orders from big private companies since they place bulk order, which would lead to

higher profits for BWR.

BWR can target more private customers in a variety of ways:


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Geographical Diversification-BWR could increase their customer base by initially

appointing distributors / agents in areas where the demand is substantial. This (i.e.

demand) could be determined with the help of Google analytics24 as BWR can pinpoint

where their potential customers are. Further, since wire ropes aren’t sold in retail stores,

appointing distributors is very important if private customers are to be targeted.

Pricing strategies- The domestic wire rope market is a highly price sensitive market.

Thus, BWR should use predatory pricing in order to capture a customer base. BWR could

use this strategy as their cost of production is low (as they enjoy significant economies of

scale due to their large installed capacity which will be further increased with their new

plant).

24 Google analytics is a software offered by Google which helps a company to have detailed statistics about website traffic with its location


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MARKET MAPPING

The above market mapping displays how the major companies in the wire rope market in

India are positioned. The criteria’s used for positioning of the said companies are Quality

and Price as these are the two most important criteria’s that customers in this market use

for placing orders with companies. The positioning of each firm represented above is

determined mainly on feedback from customers and awards received (as awards would be


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one of the main indicators of the quality of the products of a particular firm).25 Based on

this mapping, it is evident that Bharat Wire Rope is perceived by customers as being a

company that supplies high quality products at low prices. Keeping the price sensitive

Indian customer in mind, this positioning is apt for the Indian market. Also the customers

perceive the quality of BWR’s ropes to be better than Usha Martin (its biggest

competitor). This again highlights that the changes in the management have had a

positive impact and the company’s internal quality control system is to be credited for the

same.

Usha Martin though is positioned very close to BWR and given their size and installed

capacity (both being bigger than BWR), they do pose a significant threat to BWR’s

position in the market. The SWOT analysis, showed that the company faces delivery lags

from its suppliers that results in delayed production and hence imposition of penalties by

customers. This is an area that requires immediate attention by the BWR management to

maintain their dominant position in the Indian Rope Market. This also will ensure that the

company’s margins are not under pressure (due to payment of penalties for late

deliveries).

25 Please refer to appendix 1 for customer responses and appendix 16 for list of awards obtained by each company


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Marketing Mix

The marketing mix is an integral part of a firm’s positioning strategy. The way in which a

consumer perceives a company depends greatly on the way the marketing mix of a

company is designed. Keeping the positioning of the company in mind (from the market

mapping analysis), the company’s existing marketing mix is analyzed and changes are

suggested to ensure they continue maintaining their dominant position in the Indian wire

rope market.

Promotion

The current promotional strategies used by BWR are:

1) Website - BWR has just redesigned their website making it more user friendly

and having a more appealing interface. The interface also enables potential

customers to know about the company, facilities, products etc very easily.

Keeping in mind the export market, the website also has options where all the text

can be translated into different languages. Customers can also download BWR’s

Product Brochure26 thereby giving them all the information they need with a

single download..

26Bharat wire ropes. N.p., n.d. Web. 8 Jan. 2013.

<http://bharatwireropes.com/Product%20Brochure%20by%20Application/M__38>.


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2) Compact Disc – Every year BWR releases a specially designed CD that has

information on the company, latest developments, details of awards they have

received, marquee client list etc. This is sent to potential customers to increase

awareness about BWR. This is a very cost effective way of spreading awareness

amongst the target market.

In addition to the above, BWR could incorporate the following promotional strategies to

continue to maintain their position in the market:

1) Google ads 27- BWR should subscribe to Google’s advertising service wherein if a

customer types wire rope manufacturer in India in Google’s search engine their

(BWR’s) listing will be in the top three to four hits. This will enable them

generate more inquiries.

2) Exhibition28- “Messe Düsseldorf is an organizer who hosts a wire rope exhibition

in Mumbai and across the globe”29 BWR should register and actively participate in

such exhibitions, as this is an excellent platform to build networks with potential

clients (especially private ones) and also enhance brand awareness. These exhibitions

27 Refer to Appendix 2 28 Refer to Appendix 2 29Tradefairdates. N.p., n.d. Web. 9 Jan. 2013. <http://www.tradefairdates.com/Wire-Cable-India-

M1903/Mumbai.html>.


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are very cost effective compared to advertisements, which are very expensive.

Further, the former is attended by BWR’s target market, making it much more

effective

3) Free samples 30– Prior to the takeover of the company, BWR had a bulk of

government orders and very few private orders. Post the takeover, the company is

actively considering to increase their sales in the private sector. To enter this

competitive segment, it is essential customers get an idea on the quality and the

value proposition offered by BWR. They should provide free samples of their

ropes to customers to let them test the quality of the product and once they are

satisfied, come back and place an order. BWR’s biggest competitor uses this

strategy too. 31

Product

• BWR’s product portfolio comprises of different types of ropes that cater to different

industries such as mining, oil and gas, etc. Each industry has their own specification and

requirements. BWR presently has the facilities to make over 3000 different kinds of ropes

and on an average they make 50-60 different types of ropes in a month. 32Not many

30 Refer to Appendix 2 31 Refer to Appendix 2 32 Refer to Appendix 2


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company’s in this market can boast of the same. This (product portfolio) enables them to

maintain a competitive advantage. Further, quality is very essential as human life is at

stake here. At BWR, their quality control processes ensure that wire ropes manufactured

meet the highest quality and safety standards. They have been awarded the following

awards in the past w.r.t. their quality:

“

o Awarded by DRDO for indigenization of Missile Loaders, Armored

Cables.

o ISO 9001 / 2008

o Award for Highest export performance by EEPC in 2003-2004.

o Award for Highest export performance by EEPC in 2008-2009.

o Recognized as a Life Member of Friends of Environment. ”33

The above list of awards is a testimony to their firm commitment to their consumers of

supplying the highest quality product at the most competitive price.

33Bharat wire ropes. N.p., n.d. Web. 30 Dec. 2012.

<http://bharatwireropes.com/Achievements%20and%20Awards/M__19>.


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PLACE

As BWR was catering more towards government orders, they do not have a very

effective distribution strategy in place. Since, the focus is now more on private

consumers, it is very essential for BWR to have an effective distribution strategy in place.

Keeping the nature of this product in mind, the best way to distribute would be in the way

to appoint agents and distributors. The advantage with agents / distributors is that they

know the needs and wants of consumers, they have a ready rapport with them. Through

their network, BWR can target many more private consumers. Though the commissions

to be paid would reduce the margins, the volumes generated would more than

compensate for this.

Price

BWR has been following penetration-pricing strategy. This was because with

government orders, the tender is given to the company that bids the lowest and hence

price is the most important determinant for getting an order. Since BWR is looking at

moving away from this segment to the more lucrative private consumer segment, they

must continue their pricing strategy, Pricing depends on few important factors such as:


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Competition- the number of suppliers of wire rope ropes with established consumer base

is very high and therefore the wire market is very price sensitive. BWR should therefore

keep prices low and the quality high to establish themselves in this segment (private

orders).

Cost of production- the cost of production is one of the only factors that can help BWR to

reach profit maximization. Since the company is considering opening a new unit in

Chalisgaon, which will increase the production capacity from 10,000 tonnes to 76,000

34tonnes. This will help them to achieve greater economies of scale hence reduce cost of

production and thus improve margins and profitability

Process

BWR has a consumer feedback system in place to gauge consumer experience. Feedback

plays a very important role in improving systems and processes and also ensures repeat

orders from clients (if feedback is acted upon). Though the system is in place, feedback is

not actively pursued and sometimes once it is received it is not passed on in a timely

manner to the supervisor / managers. The company needs to have a consumer feedback

34 The Economic Times. N.p., n.d. Web. 30 Dec. 2012.



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cell wherein feedback is monitored and also tracked (to ensure that feedback received is

acted upon by respective manager / plant supervisor). The consumer feedback cell in-

charge should report directly to the Director to ensure everyone understands the

importance of the same. This will also ensure rejections are minimized.


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Conclusion

After analyzing BWR’s positioning aided with different tools, I have come to the

conclusion that BWR is positioned appropriately in the market. The customer perception

also is a testimony to this fact.

Usha Martin act as a immediate threat to the company as it is positioned very close to

BWR. BWR need to enhance their distribution channels since they are now considering

changing their target market. The new plant in Chalisgaon is again a step in the right

direction keeping the immense growth this sector is witnessing. With increased capacity,

effective distribution channels and penetration pricing strategy they should be able to

attract private customers that will enable them to maintain this dominate position in the

market.


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Bharat wire ropes. N.p., n.d. Web. 8 Jan. 2013.

<http://bharatwireropes.com/Product%20Brochure%20by%20Application/M__38

>.

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<http://economictimes.indiatimes.com/%20news/news/by/industry/indl/goods/svs

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maharashtra/articleshow/17320504.cms/articleshow/17320504.cms>.

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in-new-plant-in-maharashtra/articleshow/17320504.cms>.

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<https://accounts.google.com/ServiceLogin?service=analytics&userexp=signup&

hl=en>.

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Mittal, Myank, comp. Approvals Earned by BWR. Rep. Mumbai: BWR, 2011.


33

Mittal, Myank, comp. Awards Earned by BWR. Rep. Mumbai: BWR, 2011.

Mittal, Myank, comp. BWR's Top Clients. Rep. Mumbai: BWR, 2011.

Mittal, Myank, comp. Increasing Global Demand. Rep. Mumbai: BWR, 2011.

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BWR, 2011.

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4>.


34

Appendix

Appendix- 1- Interviews with customers – Draft

Name:___________________

Company working for:__________________

Position in the company:________________________

(a) What purpose do you buy wire ropes for?

(b) Which company/supplier do you purchase wire ropes from?


35

(c) What factors are important for you in deciding from which supplier to procure wire

ropes from

❏ Quality

❏ Delivery as per timeline committed

❏ Price

❏ Reputation of supplier

❏ Diverse product portfolio (with availability of a wide variety of wire ropes

(d) What would you rate the following wire rope companies in terms of Quality? (scale

ranging from 1-5)

• Bharat wire ropes (BWR)

• Usha Martin

• Vikant wire ropes

• Mahavi wire ropes


36

(e) How would you rate the following wire rope companies in terms of Price?

• Bharat wire ropes (BWR)

• Usha Martin

• Vikant wire ropes

• Mahavi wire ropes

(f) Reason for not choosing BWR (if not client)/Reason for choosing BWR (if client)


37

Client 1

Name: Ram Tarneja was interviewed on 2/02/2013

Company working for: Otis Elevator Company (India)

Position in the company: Director


OTIS is one of the largest manufactures of moving products such as elevators and wire

ropes acts as one of the major components used in an elevator making Otis one of the

biggest clients in wire rope market


We purchase most of our wires from Usha martin as they are established worldwide


38

(c) What factors are important for you in deciding from which supplier to procure wire

ropes from

❏ Quality


❏ Price



(d) What would you rate the following wire rope companies in terms of Quality? (scale ranging from 1-5)

• Bharat wire ropes (BWR) – 4

• Usha Martin - 4

• Vikant wire ropes - 3

• Mahavi wire ropes - 2


39


• Bharat wire ropes (BWR) – low priced

• Usha Martin – low priced

• Vikant wire ropes- competitive

• Mahavi wire ropes – high price

(f) Reason for not choosing BWR (if not client)

The main reason we are not clients of BWR is because we have been placing orders to

their competitor Usha Martin and are satisfied with their service, also BWR is only

positioned in India, making it difficult to transport every order from India. Being clients

of Usha Martin gives us an advantage as we save on the transportation cost as Usha

martin is located world wide also huge orders helps us to get discounts.


40

Client 2

Name: Amit Rao was interviewed on 13/02/2013

Company working for: Ministry of Defense- all government segments

Position in the company: contractor


Indian government require wire ropes to transport heavy military gear and also helps in flights take off.


We are currently customers of BWR for most of the wire ropes required for military purposes

(c) What factors are important for you in deciding from which supplier to procure wire ropes from

❏ Quality


❏ Price




41


• Bharat wire ropes (BWR) -4

• Usha Martin -4


• Mahavi wire ropes -3


• Bharat wire ropes (BWR) – lowest price in Indian market

• Usha Martin – relatively low price

• Vikant wire ropes- high priced

• Mahavi wire ropes –highly priced


42

Reason for choosing BWR? (if client)

Being a government order it works on a tendor system. The order goes to the company who quotes the lowest price

Client 3

Name:Sreelakshmi Menon was interviewed on 25/02/2013

Company working for KONE Elevators

Position in the company: Director Marketing & Communications


KONE Elevators is one of the largest manufactures of elevators and a wire rope is one of the major components used in an elevator.


BWR is our current supplier


43

(c) What factors are important for you in deciding from which supplier to procure wire ropes from

❏ Quality


❏ Price




• Bharat wire ropes (BWR) - 4

• Usha Martin- 4


• Mahavi wire ropes- 2


44


• Bharat wire ropes (BWR) – low price (very competitive)

• Usha Martin - low price (very competitive)

• Vikant wire ropes – highly priced

• Mahavi wire ropes –highly priced

(f) Reason for choosing BWR (if client)

BWR uslike Usha martin and Vikant has comparatively less late deliveries and the wire ropes don’t break/rust in the case of BWR as their packaging is very efficient.


45

Appendix- 2 - Interview with BWR director Mayank Mittal

Could you provide me with some company background?

Bharat Wire Ropes began its operations in the year 1986 as a partnership firm by the

Shah family.In the year 2010, Mr. Mittal along with two other entrepreneurs acquired

Bharat Wire Ropes for INR 200 crore through a SPV (Special Purpose Vehicle) Gaji

Mercantile.

What different types of ropes you can manufacture?

BWR presently has the facilities to make over 3000 different kinds of ropes and on an

average they make 50-60 different types of ropes in a month

Who are you major competitors?

Our major competitors are Usha martin, Vikrant wire ropes, Mahavir wire ropes

Who are your major clientele?

• Our major clientele Suzlon, ABG Cranes, TATA, Kone Elevators, Bhushan, JSPL,

MSL etc. until the change in management BWR catered to mostly the government

companies like Defense Segment: Ministry of Defense, Indian Army, Indian Naval

Force, Indian Railways, Major Port Trusts, Electricity Boards, Shipping Corporations.


46

However now we have private clienteles like TATA, Kone Elevators and also

increased export orders. Now we are aiming to increase our private clientele bigger

companies like OTIS because they place bulk order giving us the benefit of

economies to scale.

How does BWR price its products?

Before our main focus was on government orders so we used penetrating pricing to

price the products, looking at the private markets we need to increasing the quality of

the product at low prices

How has the workers responded to the change in management?

After the change in management, the workers were a bit rebellious, there were a

number of stakes in the beginning but now they have adjusted to the working of the

new management.

What kind of promotional strategies do you use?

We have recently redesigned our website so that customers from all over the world can

see what we are offering, also we have come up with a new compact disc which we send

to all our current and potential clients to let them know about the current working of the

company and the progress of the company.


47

What kind of below the line promotion strategies do your competitors use?

Our biggest competitor Usha Martin uses strategy like free samples, Exhibition, Google

ads, which is an effective way to promote a product at minimal costs

Could you tell me about your new plant?

We are establishing a Rs500 crore plant in Maharashtra, which will significantly increase

the production capacity from 10,000 tonnes to 76,000 tonnes. This plant will be the 3th

largest in asia and the 5th largest in the world when it comes to the wire rope market.the

quality of a product will significantly increase as all the machines will be imported from

Germany.


48

Appendix- 3 -The industry size of Indian wire rope companies35

35 Mittal, Myank, ed. The Industry Size of Wire Rope Market. Rep. Mumbai: BWR, 2011.


49

Appendix 4 – Awards earned my BWR36

36 Mittal, Myank, comp. Awards Earned by BWR. Rep. Mumbai: BWR, 2011.


50

Appendix 5 – Certificates/ Approvals earned BWR 37

37 Mittal, Myank, comp. Approvals Earned by BWR. Rep. Mumbai: BWR, 2011.


51

Appendix- 6 -‐ the Increasing global demand38

38 Mittal, Myank, comp. Increasing Global Demand. Rep. Mumbai: BWR, 2011.


52

Appendix- 7 - Product mix of BWR39

39 Mittal, Myank, comp. Product Mix of BWR. Rep. Mumbai: BWR, 2011


53

Appendix- 8 - location of new plant to the location of the existing40

40 Mittal, Myank, comp. Location of New Plant to Location of the Existing. Rep.

Mumbai: BWR, 2011.


54

Appendix- 9 -‐ BWR’s Top Clients41

41 Mittal, Myank, comp. BWR's Top Clients. Rep. Mumbai: BWR, 2011.


55

Appendix- 10 -‐ Approvals earned by BWR 42

42 Mittal, Myank, comp. Approvals Earned by BWR. Rep. Mumbai: BWR, 2011


56

Appendix- 11 - Distance of the current plant for the port in Mumbai43

4.6

43 google maps. N.p., n.d. Web. 10 Feb. 2013.

<https://maps.google.co.in/maps?hl=en&authuser=0&tab=wl>.


57

Appendix- 12 - the certification earned by Vikrat ropes44

44 <http://www.vikrantropes.com/vrweb/index.php?catagory=about>. welspun. N.p., n.d. Web. 17 Oct. 2012.


58

Appendix- 13 - awards and certificates earn by Usha Martin45

45 bangkokpost. N.p., n.d. Web. 6 Feb. 2013. <http://www.bangkokpost.com/58years/usha.html>


59

Appendix 14- Google analytics based on city 46

46 google analytics. N.p., n.d. Web. 10 Nov. 2012.

<https://accounts.google.com/ServiceLogin?service=analytics&userexp=signup&hl=en>.


60

Appendix 15 – Google analytics based on country 47

46google analytics. N.p., n.d. Web. 10 Nov. 2012.

<https://accounts.google.com/ServiceLogin?service=analytics&userexp=signup&hl=en>.

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