A growth plan for Mayura steels pvt. Ltd.

Abstract

Economic liberalization since 1991 has changed the face of the Indian business environment. It has altered fundamentally the way Indian companies do business and the way they look at the markets. In the good old days they simply had to produce. Now suddenly they discovered that they had to sell too! The Indian foundry Industry is in the transition stage, after having grown both in the domestic and export market in the last few years. It has a large diversified export market for quality castings and has a tremendous growth potential The year 97-98 and 98-99 has seen a recession and demand stagnation because of global recession. MAYURA STEELS PVT. LTD. a steel foundry presently catering to the domestic market with a turnover of 5.5 crores (1997-98), is growing in a highly competitive industry. Hence a study of strategic planning will help in formulating a long and short term growth path that will facilitate MSPL, to better understand its capabilities, competitors, market segments and the major policies needed to achieve the objectives for exogenous growth of the organization. To make the strategic planning for the organization the following methodology was adopted. Firstly, the business analysis was done. The SWOT analysis laid down. The strategic position of MSPL was analyzed after looking at the competitors summary and Porters model. Trends of foundry industry growth, exports, classification and distribution of Indian foundries was tabulated to see the potential and prospects of growth. At present there are about 200 units manufacturing plain carbon and alloy steel castings in the organized sector It is estimated that the demand-supply gap for steel and alloy steel casting will be about3 lakh tonnes by 1998There is a very good potential for exports of steel and alloy steel castings from India, as foundries in Europe are facing tough times of closure because of the environmental pollution control issues. Secondly, the vision, mission and goals were laid down for next five years, considering the SWOT and the gap analysis. Thirdly, the strategies for growth formulated. The long term and the short term objectives were recommended to conclude. The following points were concluded after the strategic planning:.MSPL to be a 20 crore company in coming five years, New customers to be developed, Addition of new products to the present, Explore new markets to the related products, Upgradation of technology, Enter exports, Go for expansion