Zurin Industries is a Switzerland-based company that sells industrial products globally. It focuses on air compressors and industrial components, selling to industries like aerospace, automotive, and transportation. Zurin relies heavily on suppliers for engineering skills and new product development. It faces a major issue where its primary steel supplier Ericsson dramatically increased steel prices without warning. Zurin risks production delays if it cannot find a new supplier quickly. It is considering negotiating with Ericsson for a more gradual price increase or partnering with another supplier like Gordier to increase their production capacity.

1. ZURIN INDUSTRIES
AIR & COMPRESSORS
DIVISION
AKSHAY PANDEY 2014003
ANKUR MUKHERJEE 2014007
NITIN GAVISHTER 2014
ANUJ BHARGAVA 2014138
APURV GOSAIN 2014139
DIPANJALI BISWAS 2014143

2. About the company:
Switzerland based
industry
Sales office in 23
countries
Sales: 5.2 Billion SF
Profit: 426 Million SF
Industrial Plastics, diesel
engines, Air and gas
compression and
Industrial components
Mainly focuses on design
and development of
industrial components
Industries :aerospace,
automotive and
transportation vehicles

3. Product :
Air and gas compressors:
Use: Industrial plants
Purpose : Regulating the flow
of liquids and gases
throughout the
manufacturing plants and
power stations
Areas of sale: 40% Europe
and rest from Asia, Middle
East and other countries
Type : Standard or specialty
SUPPLIER
ZURIN
OEMs/
Others

4. Competitive advantage and
suppliers:
Competitive advantages:
 Ability to solve complex
technical problems
 Product quality
 Durability
Suppliers:
 Heavy dependencies on
engineering and
development skills of suppliers
 Huge time/ R &D to develop
products

5. Issue
 Ericsson Metalworks increased price of XK1000 steel by 3 times
1.Fixed
price
2.No
disclosure
of
productio
n cost
Zurin’s
primary
exclusive
supplier
Swedish:
Ericsson
Transpare
nt pricing
Not
enough
productio
n
capacity
to meet
Zurin’s
demand
French:
Gordier

6. Risks involved
 Dumping existing steel producer(Ericsson) and signing with someone else
is a very time consuming process
 Very few options
 Ericsson R&D unit is critical to success of Zurin

7. Recommendations
 Negotiate with Ericsson for a linear increase in price of steel(for current
pending order)
 Zurin can negotiate on price terms by promising a increase in orders for
XK1000 and XM5000 from Ericsson
 Lobby Gordier board to increase their capacity. If needed, offer special
partnership (R&D etc.), long term agreements
 Look at proposals of Hiromishi Steel, Viktor Tredzk (long term)
 Pay Ericsson for their R & D expenditure