3. Analyse the growth of the business divisions in Eureka Forbes and provide direction for each one of them in line with the changing environment and the competitive scenario.

Business divisions and growth Three Business divisions – Direct Sales Division, Retail sales division formerly

consumer division and Professional division.

Direct Sales – more than 80% share Hire and retain skilled Salesforce

High input cost (Making and procuring) thus high overall sale price

Retail sales and professional division strong growth over last few years but considered supplements

Retail sales division – initially to capture spillover sales, now allocated more resources to showcase new products. (AquaSure)

Market growing – retail channel witnessed high growth – 4 different focus areas formed

Retail existing, retail new, rural and franchise

Professional Division – growing at healthy rate with partnering and co-branding vacuum cleaners (Nilfisk and EFL) and indigenous water purifiers (Pureguard)

Trend in Business divisionsMarketing Channel 2004 2005 2006 2007 trend

Sales

Direct 89.9% 89.8% 88.2% 84.5% ↓Retail 6.6% 6.5% 7.8% 10.5% ↑

Industrial Division 3.5% 3.7% 4.0% 4.9% ↑

Service

Direct 90.9% 91.0% 89.7% 86.1% ↓Retail 6.0% 5.9% 7.2% 10.4% ↑

industrial Division 3.1% 3.1% 3.1% 3.6% ↑

Direction Focus on AquaSure – mass market through retail sales division Sharper positioning for AquaGuard for direct sales – AquaGuard Total