Presentatioon on Case Study - SOLID PLASTICS LTD

1. SOLIDS PLASTIC INDIA LIMITED
A CASE STUDY

2. AT A GLANCE
 SPIL Consumption = 250t(Virgin)+120t(Scrap)
 SPIL Capacity = 1.2 tons / day
 SPIL Capacity = Rs. 75mn / Year
 SPIL Sales in 2002 = Rs. 60mn
 SPIL Total Secured Loan = Rs. 30 mn
 SPIL Losses=Rs. 30 Mn

3. SURVIVAL STRATEGY
 Focused Market Segmentation.
 Proper Product Orientation towards each
Segment.
 Product Positioning.
 Pricing for different segments.
 Product Distribution channels
 After Sales Service

4. TARGETTED SEGMENTS
Bottling Plant & Conveying Industries
Paper Plant
Railways
General Engineering

5. POTENTIAL Vs PENETRATION
0
5
10
15
20
25
30
B&C PAP GE RLY
TOTAL
POTENTIAL
MARKET
PENETRATION

6. BOTTLING PLANT & CONVEYING
 Customized product leads to High Margin.
 High market share would provide references
to penetrate further.
 Value addition can be done to create the
barriers for the competitors.
 North region would be the focus point to
generate the business primarily.

7. Railways
 Small press & dies for moulding of rings will
be procured .
 Scrap to be used for manufacturing the
product – hence cost of the product can be
minimized.
 ARC to be made with Railway with a price of
Rs.95/- - Rs. 100/- per pcs.

8. Contd…… ROI on M/C Procurement &
loss recovery
 Price of the Ring @ Rs95/- for 20,000 nos. of
rings
 Than total price =Rs19,00,000/-
 Contribution/gross profit = Rs7,00,000/-
 In the span of 2 yrs profit will be Rs14L
 The M/c cost will in 2 years.& the profits will
be 3L in the same year.

9. PAPER INDUSTRIES UTILITIES
 Considering potential wise as lots of potential to be
addressed so an aggressive strategy to be develop
for new brand i.e Solid-PAP, chemical resistant
UHMWPE with a new appearance.
 New product catalogue to be streamlined.
 Cost Economics to be given with offers.
 Scrap Material will be used to low down the cost.
 Present in trade fairs.

10. GENERAL ENGINEERING
 Value Proposition leads to high mark up.
 Dealer service network should be used as
service back up to the customer.
 Generation of enquires by dealer.

11. INTERNAL REQUIRMENTS
 High Motivational programme to be
organized for the employees so that there
best effort to be utilized .
 Response lead time should be minimized.
 System to be developed the minimized the
error in estimation.
 Mktg & Sales training to be given to sales
force.

12. Contd.
 Dealer motivational scheme to be developed
for successful completion of target.
 Gatekeepers/champions to be developed.
 The major market of UHMP (40%)i.e. liner
material for bulk material handling to be
addressed with value addition i.e. it would be
clubbed with air blaster for better
performance.

13. Contd…
 The as usual dealer business in other
segments , will be praised without
interruption.
 Dealers will be supported from the HO after
the receipt the order.
 The SM will now exclusively look the
responsibility of Dealer & development.

14. THANK YOU