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Focus on Quality and the Desire for Control of Value Chain

Autor:   •  March 18, 2015  •  Case Study  •  374 Words (2 Pages)  •  611 Views

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Focus on quality and the desire for control of value chain: expenses on the spinning mill in Naroda was approximately 1/10th the cost of competitor’s mill.

Effectively implemented vertical integration

Focused on adopting the best technology at the quickest pace possible i.e. focus on operational efficiency and power of scale.

Only mill which warranted the stamp of excellence based on developed country standards.

Relationship and trust formed the foundation of their growth.

Did not favor joint venture to secure the needed technology. For Patalganga plant, it approached DuPont for the acquisition of the technology.

7) Believed in executing the project ahead of schedule: completed Patalganga project in 18 months instead of 26 months which other developed country would have taken

8) Believed in gathering excess resources

9) Became one of the 1st Indian companies to secure capital beyond the country’s border

10) In Shell’s benchmarking survey, it topped the charts in terms of best operating costs, manpower costs, maintenance costs, and plant utilization

Issuing nonconvertible debentures and later converting them into shares

Raising money from banks through its front companies against debentures instead of shares

Raising money outside India through GDRs

Using latest technology with fast pace of execution

Highly cost effective manufacturing

Launching new business at a global scale with eyes on global market


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