2. Case Facts
• Plastic Technologies Inc. (PTI) was a leading manufacturer of extrusion
systems, and mold-making equipment in USA.
• PTIL was a joint venture between PTI and the Patel family, which
formerly managed India's leading domestic plastics machinery
manufacturer-Windsor.
• The new Indian manufacturing unit was strategically located at
Baroda (Gujarat)-the heart of India's plastic industry with the
availability of critical local vendors.
• PTIL had built the following two families of injection-molding
machines:
i. Sigma Range
ii. Magna Range
3. • PTI, USA, had recognized a swing in market demand towards electric
injection-molding machines (EIMM).
• To stay in the lead, PTI had formed a: new business unit, Keltron
Technologies, with its group.
• Keltron Technologies was dedicated solely to the development,
manufacture, and marketing of a new generation of EIMMs and
associated equipment.
Case Facts
5. Strengths
• Plastic Technologies Inc. (PTI) was a leading manufacturer of extrusion
systems, and mold-making equipment in USA.
• It had over 100 years of rich manufacturing experience.
• They were the first plastic machinery manufacturer in the world to
receive ISO 9001 certification for both machinery and ancillary
equipment.
• Company introduced "open loop" technology to reduce its costs and
offered competitive prices.
• It had positioned itself as a high technology manufacturer with
microprocessor controlled machinery.
6. Weakness
• Sales forecasting method adopted by PTIL was not good enough to
forecast the sales more accurately.
• General Manager submitted the sales forecast of 165 machines to
Vikram, actual sales was 131 machines, which was a vast deviation
between the forecasted and actual.
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8
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16
1989 1992 1998
Plastic consumption in India and in the World
India worldwide
7. Weakness
• Target audience of Indian operations:
I. Domestic sales to Indian manufactures (i.e. plastic processors) who
were interested to raise their productivity and product quality.
II. Export sales to new markets previously untapped by PTI, such as
African and Gulf countries.
• PTIL was a joint venture between PTI and the Patel family, this
relationship allowed fast-track introduction and market acceptance of
Indian made PTI machines.
• The new Indian manufacturing unit was strategically located at
Baroda (Gujarat)-the heart of India's plastic industry with the
availability of critical local vendors.
Opportunity
8. Threat
• An increase in local material cost on account of steep hike in
petroleum prices.
• The leader in injection-molding machines, in terms of numbers, was
DGP Windsor. Other major competitors were Battenfeld and L&T
• An increase in imported material cost because of an increase in US
dollar prices.
• An increase in cost of finance because of increased interest rates.
• A higher apportioned value of overheads due to lower volume of the
total sales than the original plan.
9. Market segments Some of the end-uses
1. Automotive Gear links, upholstery
2. Household consumers Chairs, buckets, PET bottles
3. Technology intensive Cassettes, switch-gears, con nectars
4. Packing Shampoo bottles, containers
5.Research and education Products required for training, seminars, and
scientific research.
Market Segmentation