Ppt eveready 23 aug


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  • Key Messages The focus of all our key initiatives is the customer - whether it is people, technology or processes Six Sigma, Innovation and Knowledge Management methodologies continuously research customer need and establish processes that deliver customer satisfaction Our Technology focus looks at using tools that we use and technology that we deploy to enhance Customer Satisfaction PCMM and other people processes include sensitising employees to customer needs Employee and partner compensation linked to customer satisfaction Customer Relationship assessment feedback and discussions by senior management On-going Customer Touch point/transaction quality assessment : a sample of each and every kind of Touch point - be it order acquisition, order fulfillment and After sales support
  • Key Messages Wipro Technologies is the first company in the world to get the SEI CMM level 5 rating for software and system integration services… Level 5 is the highest rating for any software solution provider in the world...Currently there are only 15 odd companies in the world who have this rating 65% of revenue comes from North America, 25% from Europe, 10% from Japan and APAC
  • Ppt eveready 23 aug

    1. 1. EVEREADY INDUSTRIES LIMITED Performance Study: An Economic Perspective GROUP B Abhishek Raj (08EP-001) Amit Manchanda (08EP-006) Ravi Purwat (08EP-046) Pallavi Sen (08EP-038) Siddhartha Madra (08EP-053) Tanvir Zaheer (08EP-059)
    2. 2. Objective <ul><li>To understand the various economic factors affecting profitability of Eveready Industries Ltd. </li></ul><ul><li>To suggest measures for economic viability. </li></ul>
    3. 3. Company Profile <ul><li>formerly known as Union Carbide India, Limited is the flagship company of the B.M. Khaitan Group. </li></ul><ul><li>Established in 1905 . </li></ul><ul><li>Manufacture and market of batteries , flashlight cases, electrolytic manganese dioxide and arc carbons . </li></ul><ul><li>Also manufactures photo-engravers plates/strips for printing, castings, hard facing and tube rods, carbon electrodes and other related products. </li></ul><ul><li>Produces and markets tea (tez) and mosquito coils (Poweron). </li></ul>
    4. 4. Business Segments
    5. 5. Battery Industry Basics Battery Primary (non rechargeable) DRY CELL Secondary (Rechargeable) UMI (D Segment, large sized) UM2 (middle sized AA) UM3 (small AAA)
    6. 6. Major Players <ul><li>EVEREADY </li></ul><ul><li>INDO NATIONAL – NIPPO </li></ul><ul><li>MATUSHITA LAKHANPAL – NOVINO PANASONIC </li></ul><ul><li>GILLETTE- DURACELL </li></ul><ul><li>SHERAVANI INDUSTRIAL SYNDICATE- GEEP </li></ul>
    7. 7. Dry Cell Battery : Market share
    8. 8. Dry Cell Battery : The UM1 segment <ul><li>Basic demand of UMI the large sized from rural areas </li></ul><ul><li>With electrification retard in growth of UMI batteries </li></ul><ul><li>Growth of cheaper led batteries in this demand category </li></ul><ul><li>Weightage of UM1 declined from 87% in 1996-97 to 59% presently However potential huge that cannot be ignored in Indian market </li></ul>
    9. 9. Dry Cell Battery <ul><li>UM2 Segment almost non existent </li></ul><ul><li>UM3/AAA batteries demand grown from 4% in 1996-97 to 38% now </li></ul><ul><li>Attributed to growth of remote control device, quartz wall clock and other such low drain equipment </li></ul>
    10. 10. Cost Escalation <ul><li>Zinc is the primary raw material </li></ul><ul><li>Prices of zinc have increased substantially in the last 3 years </li></ul><ul><li>Zinc consumption in Indian increased in last few years </li></ul><ul><li>Prices of zinc determined by London stock metal exchange </li></ul><ul><li>Raw material costs account 50% of the sales </li></ul><ul><li>Zinc accounts for 335 of input costs </li></ul><ul><li>International zinc prices raised from about $1,010 a tone in 1998-99 to $ 2784 in 2007-08 </li></ul>
    11. 11. Zinc Price Movement Source: London Metal Exchange
    12. 12. Alkaline Batteries With growth in demand for high energy drain products alkaline batteries will be the future India is in a transition stage of battery consumption Alkaline batteries account for only 2% of battery market share While 90% in developed countries However price premium is high
    13. 13. Alkaline Batteries <ul><li>growth in demand for high energy drain products </li></ul><ul><li>alkaline batteries will be the future </li></ul><ul><li>India is in a transition stage of battery consumption </li></ul><ul><li>Alkaline batteries account for only 2% of battery market share </li></ul><ul><li>While 90% in developed countries </li></ul><ul><li>However price premium is high </li></ul>
    14. 14. Future: Alkaline Batteries <ul><li>With growth in demand for high energy drain </li></ul><ul><li>India is in a transition stage of battery consumption </li></ul><ul><li>Alkaline batteries account for only 2% of battery market share </li></ul><ul><li>While 90% in developed countries </li></ul><ul><li>However price premium is high </li></ul>
    15. 15. Research Gaps Contd-- <ul><li>Consumption and manufacturing of alkaline batteries not well documented </li></ul><ul><li>No industry association issues documentation </li></ul><ul><li>Neither the company website nor the various data sources illustrate decline in sales </li></ul><ul><li>It is from the company website and news reports the decline in sales in batteries has been brought out. </li></ul><ul><li>As company’s income and expenses has been clubbed from various product categories the battery analysis is difficult to do </li></ul>
    16. 16. Research Gaps <ul><li>Main data source </li></ul><ul><li>CMIE </li></ul><ul><li>Company website </li></ul><ul><li>New Reports </li></ul><ul><li>Financial analysis website </li></ul>
    17. 17. Decline in Profits: an Economic Perspective <ul><li>Increase in the Total Variable Cost & Decline in Total Revenue </li></ul><ul><li>The Total variable cost of the company has increased leading to fall in total revenues due to rise in cost of inputs i.e. zinc </li></ul><ul><li>Decline in Demand with rise in prices of batteries </li></ul><ul><li>As the cost of inputs increased company went for a price increase which led to fall in demand of UM1 batte%ries. </li></ul><ul><li>Demand of the product is price sensitive </li></ul>
    18. 18. Data Analysis Net Profit
    19. 19. Operating Expenses
    20. 20. Input Costs Escalation
    21. 21. Problem Area <ul><li>The revenue of the company is inversely proportional to the cost of inputs. However these factors are external to the company and beyond its control. The company however needs to take measures to improve its profitability. For the last two years the company has been running in losses. </li></ul>
    22. 22. The Road Ahead: Suggestions <ul><ul><li>Steps to capitalize on growth of alkaline batteries and set up latest manufacturing facility for it. </li></ul></ul><ul><ul><li>Good real estate valuations can be unlocked. </li></ul></ul><ul><ul><li>manufacturing units should be set up in new tax free zones like Uttaranchal </li></ul></ul><ul><ul><li>The company can also diversify into other battery segments catering to automobiles UPS, CFLs, lighting equipment and other electrical energy products. </li></ul></ul>
    23. 23. Thank You