Business Strategy - Richardson Hindustan Limited
Upcoming SlideShare
Loading in...5
×
 

Business Strategy - Richardson Hindustan Limited

on

  • 2,205 views

 

Statistics

Views

Total Views
2,205
Views on SlideShare
2,204
Embed Views
1

Actions

Likes
0
Downloads
39
Comments
1

1 Embed 1

http://www.linkedin.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • Very nice presentation. I have worked with RHL in 1983 to 1988 and it was a most admirable company of that time. I have seen the turnaround of this company by Mr. Gurusharan Dass, the magician. That time Mr. Bharat Patel, Jayant Kapoor, Ravi Chaturvedi and Prakash Thakkar (Now Late) were the best managers I have ever seen. For me this was the fantastic and unforgettable experience I have ever enjoyed. I still have the price list of Vicks products of 1983 singed by Mr. Jayant Kapoor.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Business Strategy - Richardson Hindustan Limited Business Strategy - Richardson Hindustan Limited Presentation Transcript

  • Richardson Hindustan Limited- Subsidiary of RVI
    SP JAIN NETWORK OF CASE STUDIES : TALK SHOW
    Hosts- Nirupama & Stanlin
  • Vicks Commercial
  • Parent and its child
    RVI
    RHL
    Worldwide marketer whose product line is traced back to 1905.
    Company’s strategy – meeting distinct customer needs.
    Overseas market sales growing faster than domestic.
    One of the 30 subsidiaries founded in 1964.
    By 1965, 45% equity with Indians and by 1983, a record sales of $23 million.
  • Company in trouble – 1981
    Strategies to turnaround:
    Increase profitability
    New opportunities for
    future growth
    Labour Situation
    Managing People Strategy
    Gurucharan Das – Contribution to RHL
    Think Global
    Act Local
    ???
  • Managing People Strategy
  • Sources of Competitive advantage
  • PESTLE Analysis for external factors
  • PESTLE Analysis for external factors
  • RHL constituencies comprised 4 stakeholders.
    RHL’s role in maintaining stakeholders value
  • Complex and tough tax structure
    RHL paid effective income tax at rate of 76%.
    Company’s objective of reducing the tax burden by following means:
    Directing business investments for social and economic development
    Manufacturing products which excused RHL from the excise tax payment.
    Efforts directed to convince the government to eliminate advertising disallowance.
    Indian Government laws
  • Government regulations led to change in RHL’s shareholders structure.
    RHL came under FERA as a result of more than 40% RVI ownership.
    Outgrowing industrial licenses issued by the Indian government.
    Additional grant requests for increasing production capacity rejected
    Shareholders structure
  • Employees- Valuable assets
    RHL’s success attributed to the development of the employees.
    Creation of an environment which fosters innovativeness and excellence.
    Investing in the employees to help them grow.
    Adoption of a consultative and participative management style.
  • Financial objectives within 5 years
    • Double sales revenue
    • Triple profit
    • Decrease tax rate
    Medium for growth
    • 12 new products & 1 re-introduction
    • Ayurverdics
    • Dextromethorpan – Hydrobromide factory
    Optimistic or Realistic plan?
    Strategic Plan
  • Ansoff Matrix
    12
  • Financial Projection
    Sales CAGR 15%
    EBT Growth 9.2%
    Tax decrease approx. 48%
    Triple profit!!
  • Current tax rate of almost 76%
    Target to improve PAT
    PAT improved by decreasing tax rate
    Sales and earning growth means nothing without tax rate reduction
    PAT Improvement
  • Investment on DXM factory
    Duty drawback on imported materials
    Cash incentives on export
    No income tax for seven years
    Payback within 2 years
    Building satellite plant
    Tax holiday for 8 – 10 years
    Tax cut on almost 45% of the profit
    Cut from excise tax
    Tax Reduction
  • Investing in the manufacturing plant for development of hydro bromide.
    Launch of new products.
    Building on the R&D - ayurvedics as the base for new products.
    Building satellite plant to decrease tax rate.
    Strategic alliance with major players – strong in manufacturing division.
    Recommendations
  • Thank You !!!!!
    Stanlin
    Nirupama
    Erick
    Pratik.B
    Saurabh