Potential of industrial storage systems; Godrej and Boyce MFG Company, Bombay

Abstract

The Industrial Systems and Workshop Equipments group is a part of the Office Equipments Division of Godrej & Boyce Mfg. Co., Bombay. It does around 13 crores of business every year and has around 18% of the market. The other major competitors are Vinar Systems of Calcutta, Mek of Bombay, PILCO of Delhi, Josts of Bombay and Accrow of Bombay. Being a low technology product there are quite a few players in the unorganised sector also concentrating on local markets. These markets where in certain cases found to be around 60-80 lakhs. Godrej was found to score over its customers on attributes like value for money, quality and installation expertise, However inability to meet delivery commitments and after sales service are areas of great concern. There have been instances of orders getting cancelled because of this. a large portion of the customers were ready to pay a premium of around 5-10%. However the Godrej price was around 30-40% higher. The market has been growing at the rate of around 20- 25% for the past three years. Areas where either new Industrial areas or major expansions are coming up have been identified. A couple of entirely new sectors have also been identified with a view to expand the market. All these data was collected through questionnaires administered in the four regions of the country. In order to ensure 4 homogenous sample 4-5 customers in each of the industries were visited. An aimost equal number of Godrej and competitors customers were met. The sample size of the study was around 400.