Zurin industries

Zurin industries

• 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: Switzerlandbased 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 andgas 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: Competitiveadvantages:  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 Metalworksincreased 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  Dumpingexisting 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 withEricsson 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