Final Welingkar

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Final Welingkar

  1. 1. DANDEKAR TROPHY COMPETITION: 2008-2009 BOMBAY MANAGEMENT ASSOCIATION by Abhinay Vishnoi Gaurav Choukasey Rajat Sahai
  2. 2. “ Is the glass half full, or half empty? It depends on whether you're pouring, or drinking.” - Bill Cosby <ul><li>Economic recession a caveat or opportunity for corrective pause </li></ul><ul><li>Attitude and point-of-view matters </li></ul><ul><li>Global business cycle – objectivity – challenging year ahead </li></ul><ul><li>Amidst problems lies the seed of opportunity </li></ul>
  3. 3. <ul><li>Started as subprime crisis in USA in 2007 </li></ul><ul><li>Jargons doing the round – securitized mortgages, CDO, CDS </li></ul><ul><li>Monster – credit crunch intensifies, housing bubble bursts </li></ul><ul><li>Victims – Lehman Brothers, WaMu, AIG, and many more </li></ul><ul><li>… wait for the sequel </li></ul>
  4. 4. &quot;We can't solve problems by using the same kind of thinking we used when we created them.&quot; - Albert Einstein <ul><li>Recession affects world economies – India, China, Japan, UK, etc </li></ul><ul><li>Governments & central banks firefighting – stimulus packages </li></ul><ul><li>Slowdown evident & definite – challenges open new horizons </li></ul>
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  7. 7. <ul><li>Silver lining – 50% of India’s GDP – from this sector </li></ul><ul><li>Addressable opportunity – global BPO – BFSI, Telecom, Govt. </li></ul>
  8. 8. <ul><li>Cement </li></ul><ul><li>Mining </li></ul><ul><li>Education </li></ul><ul><li>Agriculture </li></ul><ul><li>Tourism </li></ul><ul><li>Insurance esp. healthcare </li></ul><ul><li>IT and BPO </li></ul>
  9. 9. <ul><li>Global-Indian scenario </li></ul><ul><li>Flagship company of Sesa Group </li></ul><ul><li>Major stakeholder - Vedanta Group </li></ul><ul><li>Largest exporter of iron ore </li></ul><ul><li>Turnover - Rs. 1800 crores </li></ul><ul><li>Other endeavors -- 280,000 TPY metallurgical coke plant -- 250,000 TPY pig iron plant </li></ul>
  10. 10. <ul><li>Cost effectiveness & no-layoffs </li></ul><ul><li>Self-consumption & multiple revenue sources </li></ul><ul><li>Self-sufficiency </li></ul><ul><ul><li>Coke Production </li></ul></ul><ul><ul><li>Power Plant - 30MW </li></ul></ul><ul><ul><li>Pro-active strategy </li></ul></ul><ul><ul><li>Other cost cutting measures: River transport , etc </li></ul></ul><ul><ul><li>Green Mining Initiative </li></ul></ul><ul><ul><li>Corporate Social Responsibility </li></ul></ul>
  11. 11. Q3 Results Net profit of Rs. 607.60 crores Income from operations rose to Rs. 1,497.33 crores <ul><li>Conclusions </li></ul><ul><ul><ul><li>Innovative and flexible practices </li></ul></ul></ul><ul><ul><ul><li>Well informed firm </li></ul></ul></ul><ul><ul><ul><li>Objectivity </li></ul></ul></ul>
  12. 12. <ul><li>Travel for recreation or leisure </li></ul><ul><li>2007: 903 million tourist arrivals, $856b in revenue </li></ul><ul><li>2008: Growth of just 2% </li></ul><ul><li>2009: Growth expected to drop by 5.3% </li></ul><ul><li>2010: Growth expected to drop by 0.2% </li></ul>
  13. 13. <ul><li>Agra: 20-30% reduction in foreign tourist arrivals (FTA) </li></ul><ul><li>Goa: 20% decrease in FTA </li></ul><ul><li>Reduction in flights at Dabolim airport: 42 to 25 </li></ul><ul><li>Kashmir: 32% reduction in FTA </li></ul><ul><li>10-15% occupancy in Gulmarg and Kashmir </li></ul><ul><li>Kerala: 35% decrease in FTA </li></ul><ul><li>35% reduction in occupancy of house boats </li></ul>
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  16. 16. <ul><li>The new business model – focus on domestic tourists </li></ul><ul><li>Packages & Promotion </li></ul><ul><li>4 important considerations: </li></ul><ul><ul><li>Manage the costs </li></ul></ul><ul><ul><li>Keep the cash flowing </li></ul></ul><ul><ul><li>Focus on good customer service </li></ul></ul><ul><ul><li>Don’t stop marketing </li></ul></ul>
  17. 17. The forest is mysterious dark and deep I have many promises to keep And many miles to go before I sleep And many miles to go before I sleep - Robert Frost

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