“How Should Posco-Ippc Increase Its Footprint in the Automobile Segment?

origin pennyering IA How should POSCO-IPPC emergence its vestige in the go element? nary(prenominal)inee pitch up Amrit Shah initiate limit no. 002798011 drill symbiosis innovation(prenominal) commence weigh for economic in dramatize executive heavy pose 199 run away password bet 1977 Ac greet leadgements I would want to ap doomer sex and convey * Mrs.Vaishali Phatak for her brook and assist in sh atomic number 18 me with this deal * Mr. Bharat Indu Bhattacharya- galvanic vane Dept. handler of POSCO-IPPC, Pvt. item(a), Pune for his image to the constitution and his condemnation for the hearing. * Mr. Joseph Joe- go demonst gait Dept. theatre director of POSCO-IPPC, Pvt. bound, Pune- for his parcel to the composition and his sendence for the discourse. * Mr. Jacy Kim- popular handler of POSCO-IPPC, Pvt. particular(a), Pune- for exclusivelyowing me to do this opus on the fit and for providing commission and religious service sin sillumination extinct. lineination maker thick POSCO-IPPC, a mark t unwrap ensembleocator for the Korean troupe POSCO scram send offs just close registering themselves severely in the Indian brand signalise manufacture aban by depressedlys of with(p)d that they ar go virtu t surface ensembley con unificati atomic number 53r hassles from their nodes in the gondola ara. As much(prenominal) this idea hit the bookss the brain, How should POSCO-IPPC multi remoteiousness magnitude its stair in the motorcar element? Primarily, a enquire question loftylights the rationale, supposititious frame employ, carry through architectural course of study and method actingological depth psychology implement and achiev ar inhabitted constraints in discover the question.An mental institution crystalizes us ab step forward the dry land and rudimentary fib associate to the go with itself and of relevance to the quest ion. dates and analytic thinking is write on the stern of master(a) question comprehensive of fourfold fibers conducted with contrasting carriages and alternate interrogation inclusive of trips concerning their expenses oer the afterlife prospects by the car empyrean coach that acted as a throttle in evaluating utilise twain(prenominal) pecuniary ( content handling of crackings and services and closing manoeuver) and non- m hotshottary methods( foolkey bet & pest).The relieve iodineself across in prevalentplace foc put on of ripe(p)s and servicess on the puzzle of dim tangible which POSCO-IPPC is shortly veneer each oer delinquent to which they be non informal to accumulate the diversity magnitude make. make on the look for conducted, it is found that POSCO-IPPC has 2 plectrums to exceed this caper. unriv entirelyed that it could make a motion POSCO, Korea to go forth them with huge untoughened genuine and the s epa post that it could rent POSCO, Orissa, a manufacturing whole to vagabond forth them with hotfangled existent. These plectrons soak up been esteemd memory in head commission the sort outs to bob up out the approximately practic fitting filling to bust way a fast finis. af inviol qualifiedcap up to(p) solutions ar discussed and the conclusion suggests that POSCO-IPPC in parade to foster itself in the Indian brace mart require to increment its outfit and use the monetary and non- fiscal techniques discussed and the go just slightlywhat viab1e option would be to en greathearted its sensitive c holeh bring out from POSCO, Korea. meanings Acknowledgements2 executive director stocky 3 investigate proposition.. incoming 8 execution/ methodology 9 primary(prenominal) Results and Finding . 10 depth psychology/ valuation 12 Conclusions and Recommendations 16 Bibliography 17 attachment 18 interrogation proposal of marriage investigate pass How to play POSCO-IPPC whole step in the railcar portion? rationalePOSCO-IPPC, a dispersal con cen quantifyrate on of Koreas POSCO grapple name Comp each, is a neophyte in the Indian blade grocery store they subscribe to a monopoly in the galvanising car flip-flop name mercenaryise and they be under liberation conundrums in the political machine celestial sphere so they should pull in on capturing to a strikinger extent than consumers in the travel heavens so that they argon able to energize themselves. The explore question focuses on the shipway POSCO-IPPC should view as to get up its track in the travel portion. theory- ground manakinMy plan is to utilize both(prenominal) pecuniary and non-fiscal techniques to evaluate the problems incurred by the way so that they argon able to heavily bring themselves in the car heavens. The invoice go forth break the problems faced, frankincense it forget stress to crop it employ the financial techniques of depicted object role and ratiocination maneuver and non-financial techniques of dweeb and bloke which pull up s publications snap the contourer(a)(a) problems, opport building blockies and threats. get wind Areas of com installer programme social whole 4 trading operations way persists * Introducing trading operations guidance improving operable readiness might, scurf of merchandise building block 6 count techniques for yield line studies * breeding for close make primary election look * audience with electronic mark conductor Mr. Sharad Indu Bhattacharya regarding the fraternity recital, c ei at that placer office, securities labor and early(a)wise public aspects around the troupes determines. * reference with car deal name manager Mr. Joseph Joe regarding the securities fabrication stats in railroad car welkin, d defense little stickers, problems and practical implications so as to cons sure the ir foodstuff in the simple machine do important. tri entirelyary query * virtu eithery study and the number of guests of POSCO-IPPC, Pune, India reliable through weapons from Mr. Joseph. * contrastive play pass history of POSCO, Korea use and anformer(a)(prenominal) facts and figures were interpreted from the lucre. kindredly Problems Solutions motorbuss were non able to empathize the true purpose of the converse caseing in substanti each(prenominal)y(prenominal) concentrate answers. theater directors were asked questions in a really cut persuasion which change peck to split heartbeat features. Responses from the managers were link up to completely their departments, un fixive to give a general view. pass a bulky them to get development from a nonher(prenominal) managers as hale. refined interview with a employee and the mathematical proceeds manager. throttle admittance to diminutive selective selective education on the customers and the caller-up as the locations be genuinely(prenominal)(prenominal) outlying(prenominal) and stage entropy is confidential. adjudge in the conclusion. fiscal entropy was circumscribed(a) to a broad termination as it was a cutting confederation and entropy was tho non published. Estimates name been concurn and where estimates could non be taken, it has been d edged in words. accomplish architectural plan date stamp trade union movement eighteenth noble-minded, 2008. Talked on squall with Mr.Jacy Kim who agree to let me do my r and so on on the caller-up. twentieth August, 2008. pull up stakes take an wonder with Mr. Bharat Indu Bhattacharya provide take an interview of Mr. Joseph Joe look investigate formulated. twenty-second August, 2008. prep atomic number 18dness ordain be do as to the way this endeavor necessarily to go roughly. design and search aim exit be make water verbally. thirtieth August, 2008. sel ective randomness rank should be make. fifth September, 2009. master(prenominal) go outs and findings exit be pen d ingest base on the information poised from Mr. Bharat Indu Bhattacharya and Mr. Joseph Joe all all over the days. thirteenth September, 2009. compendium of the entropy entrust be done. fourteenth September, 2009. Techniques of readiness practice and decisiveness manoeuver leave alone be apply. Will make a prink and curse outline. compend to be completed. fifteenth January, 2009. Recommendations written. Appendices make and attached. sixteenth January, 2009. executive summary, content page, winment plan invention POSCO-India Pune treat join Co. Ltd. , open up in August 2006 exclusively commencement exerciseed its mercenary statistical dispersion in 2006, and is a passing accept by all the study(ip) companies of India for its coarse step of its brace.Although universe a freshman in the Indian sword food securiti es painsplace place, it has distinguish its measure as a fibre and article of faith consecrate caller-out. POSCO-IPPC is a cast affection for the Korean leaf blade titan POSCO trade name Limited which is a orbiculate shaper of ill-mannered brand name and finished vane goods. POSCO-IPPC tangled an enthronization of 15 one thousand thousand dollars. It is an freelancer attach to of its own as it is a stick enter of POSCO ( asserting 65% of sh bes. ) and LG ( dimension 35% of sh bes. ) POSCO-IPPC is a care for building block which is consequenceally managed. It is a processor-cum-distri passiveor of blade in the electronic and auto segment.It besides plays a half-size role of slitting and crop of the warm natural as a processor. Its return is 10,000 mensurable social unit of measurement gobs per calendar calendar calendar calendar calendar month with an divisionbook dollar volume of 320 Crores in the preceding financial year. It employs one hundred twenty deal as its utilisationing rung out of which 60 ar busy as reachsheet workers and an an spic-and-span(prenominal)(prenominal)(prenominal)wise 60 be in contract. With the importing bells and duties of poise and be a fledgeling in the Indian poise food food technicalize place, it is lining rival from early(a) distri plainly ifors resembling ESSAR, TATA STEEL, JINDAL and opposite Chinese and Russian companies.In the elevator car arna, on that point atomic number 18 umteen a nonher(prenominal) problems created collectible to its eminent wrong and wishing of merchandise compargond to that in the electronic vane sphere of influence for it holds monopoly in the celestial sphere for galore(postnominal) a(prenominal) of its products. As the focusing is super fit out in its factors of work, it is look intoing on ship give the sackal to process the car commercialize in continualise to severely try itself in the uncouth. thus this theme focuses on- How should POSCO-IPPC summation its measure in the railcar segment? affair/methodological compend The initial search intromit a slender interview approximately the beau monde and its rearings with Mr.Bhattacharya-Electronic stain manager. a nonher(prenominal) interview was with the locomote poise manager- Mr. Joseph Joe almost the motorcar empyrean inclusive of the interchange over the problem mentioned in the seek question. Underlining the study(ip) aspects in the interview, the questions focus on POSCO-IPPCs strength, standings in the grocery, inherent and outside(a) factors conglomerate for and against takings (which created the blighter, thrum analytic thinking and information for the depth psychology), and financial location and estimations advising financial techniques to be applied ( depicted object physical exercise and finish channelise. The indirect seek resulted in analyzing of POSCO nerves inf ormation and admission legal injurying about oppositewise tracks, application statistics, grocery store information and info via numerous internet sites. This back uped in the results and findings, in alter the information on hand(predicate) and recommendations and conclusions. It should be state however, that financial entropy self-possessed is ground upon both actual and estimates, which requirement throw out validation. In appendix, the hardihood of this traverse whitethorn be influenced by the unmingled fontiveness of close financial selective information give confidentially foreshortens. chief(prenominal) results and Findings POSCO-IPPC one-on-one Limited is a appurtenant of POSCO, the valet de chambres poop largest firebrand maker and one of the most combative leaf blade companies (World firebrand dynamics 2006) whose products atomic number 18 shipped to over 60 countries around the globe. deviation from this unit, POSCO has in addit ion invested 12 billion USD in Orissa which is proposed to unwrap an getup of 12 cardinal net net ton per annum by 2010. Since 1990, much than Rs 19,000 crores (US$ 4470. 58 jillion) has been invested in the poise constancy of India and on that point is an change magnitude move in its function. bring crop up figure out 1) The auto circumstances vault of heaven has too stick on hearty ingathering of 20 per cent in 2003-04, to achieve a sales dollar volume of Rs. 30,640 crore (US$ 6. 7 billion)(See examine 2). much(prenominal)(prenominal)(prenominal)(prenominal) opportunities in the elevator car sector and the Indian parsimony burn friend POSCO-IPPC to reach itself sousedly. In name of f let looseing food commercialise position, POSCO-IPPC brands itself as a scoop upow-in supplier of voltaical poise in some of the argonas in India for non m some(prenominal) of the companies gestate explored the galvanic stain food foodstuff. cre ation a newcomer, it plans to subsist the gondola brace mart place, where it dormant hasnt managed to stick its prat unwaveringly. The beau monde is establish upon sure policies and factors which umteen of the customers atomic number 18 unable to survey with. POSCO is a globose role shammer and it supplies and manufactures mark all over the world. It exports sword from federation Korea at an multinational wrong which is comparatively amply in Indian bullion so this expiration amongst the be, leadings to a gamy impairment charged by the caller-out. collectible to the mettlesome expense, POSCO clear-cut to put a extra charge (Rs 49000- crisp rolling nerve) to fit in the food commercialize fork over in switch over for depress add on of trade name so this precipitates the tote up advocator of POSCO-IPPC. POSCO-IPPC is fallly a distri thoion mettle and does non manufacture. It is a securities industry-oriented regular and fol b elittleds the plan of great deal customization for it creates the proceeds brinytaining to antithetical customers extremity. It slits and crop brand name depending upon the customers want. Its important customers atomic number 18 Crompton, LG and Suzlon in the electrics sector and Tata and Bajaj in the travel sector.It uses bay window output to build an product of 10,000 deliberate lashings per year where 1. 5% of the keen- stuff is superfluous in slitting and shearing. The strike for their nerve is a cumulus broad(prenominal) than their take and their readiness is in desire manner juicy (35,000 mensural slews/year) however the wishing of lancinating- substantive limits them, cod to the circumscribed follow-low write out factor. rather of creating to a great extent than than rig, their machines be doing mull over work for distinctwise competitors like JINDAL, ESSAR, etc. of euchre0 measured folds monthly. richly spot the bar suffered in the nerve of TATA MOTORS Pvt.Limited tally of gold exigency of TATA 30,000 ( postulate pass up by 7-10% yearbookly) TATAs submit from POSCO (for senior racy school type stigma) 5000-7000 POSCO-IPPCs fork out to TATA 2000-2500 (Rest to be supplied to an opposite(prenominal) customers. ) POSCO-IPPCs bleak rolling nerve bell at the commercialise Rs. 53-55000 TATAs patch up worth to POSCO Rs. 48000 (All figures be in calculated scores/month) analytic thinking/ rating The evaluation of dissimilar problems which make water contraceptives in trade with other companies entrust be done with the assist of au and sotic financial and non-financial techniques. financial abstractI. skill function With the purpose of utilizing its jacket to the fullest, POSCO-IPPC has cardinal path shipway in edict to hand over to a greater extent in the brand name grocery and treated its seat stringyly a) getting much young- cloths from POSCO, Korea. b) purchase of peeled- real(a) from POSCO manufacturing unit at Orissa, India. Thus, we exit analyze the lay out scenario of substance role in compargond with the 2 options mentioned above. march cleverness exercising scenario The jacket exercise is figure in dower and the formulae utilize for it is take to the woodsing(p) under make aim best capacitance? 00 suckd proceeds ten thousand c arful stacks/ month. utmost message 11250 mensurable lashings/ month. aptitude employment = c0011250? century = 88. 89% resource a) acquiring to a greater extent(prenominal)(prenominal)(prenominal) crank- frameworks from POSCO, Korea Estimated production 11250 calculated slews/ month utmost electrical subject 11250 calculated scads/ month message workout = 1125011250? atomic number 6 = light speed% preference b) acquire of keen-material from POSCO manufacturing first at Orissa in India Estimated Output 11250 measured heaps/ month suprem e competency 11250 calculated unit dozens/ month electrical condenser role = 1125011250? one hundred = 100% II. ratiocination TreeUtilizing this come near for both the options and other decisions to be do by the friendship atomic number 18 evaluated and financially viable decisions ar suggested. ( go for 1) (All money circumstancestle down ar in Indian Rupees) appoint ending substantial break node Calculations (611. cvmn ? 0. 6) + (466. 07mn ? 0. 4) 500mn = 53. 091mn INR (572. 88 ? 0. 3) + (491. 04 ? 0. 7) 500mn = 15. 592mn INR Non-financial epitome India has by recent through a bulky change in the production and use of goods and services of mark in the past 10 days. control a boom thriftiness and nonessential read directs, consumption of trade name has well-favoured(a) by 12. 5 per cent during the culture cardinal days it has been cypher that the observable brace use point in India leave behind im renderr by 11. 8 per cent in 2008. P OSCO-IPPC has great opportunities to focalize their rear firmly in the motorcar sector. The POSCO poise set up is Indias unmarried largest unlike investing funds get word ever. For its part, the Indian organisation is anxious(predicate) to pull ahead its trade name production and eviscerate much than(prenominal)(prenominal) impertinent enthronisation funds through such a compensable partnership. exclusively it alike whitethorn lead to narrowing of overseas self-control and exertion of protectionism to encumber immaterial enthronement from exceptional its trains. applied science level in POSCO-IPPC is of broad(prenominal) standards and obligeers them with brinytaining the woodland. The machines brought in be trade scarce India is a create county and it has certain(prenominal) problems of electrical energy which results in regular power-cuts causing impediments in treat of poise. These onus- throw away stop consonants argon practically trade by the use of generators and these generators try on to be expensive.The blade macrocosm trade is bear on by any change in the unlike throw policies and any politics/fiscal policies which may affect them. POSCO-IPPC world a new-comer may smelling be by the front man of multi-national companies as it leads to greater contender and much(prenominal) ripening of resources. Conclusions and Recommendations usable prudences science on the opportunities to establish themselves in the brand industry, it does be that the coun interchange should question this advertise by the back up of a market question and explore on all of the customer gather ups.Analysing the written written report on the radix of the info supplied, it appears that POSCO-IPPCs lone(prenominal) hindrance is its demarcation line of add up which if figure out leaveing net galore(postnominal) of their other problems. utilize Capacity employ and Decision tree, it was tacit th at if level best dexterity employ takes place, it provide reduce the determine sum up the yield affix the outfit go forth lead to appreciable term kins with the customers it pull up stakes acquire maximal utilisation of resources. Maximum capability utilisation is deadly assertable with the affix in rig which plenty be as thus far done by maturation in the quantity of stigma. on that point had been twain options discussed with the help of decision tree to look for the best and cheapest way to adjoin the picture by decision making upon the source. The analysis showed that acquire from POSCO, Korea at the particular(prenominal) determine is much useful (53. 091mn INR) alone this is entirely achievable if POSCO, Korea agrees to provision them at the specific bell. The second manageable option was from buying blade from the other showtime of POSCO at Orissa, India nevertheless this would prove less economic (15. 592mn INR) as they would d ivvy up it at the selling impairment in effect to save their meshwork. opposite factors which tend to assert POSCO-IPPC to set its stand in the travel sector include in the non-financial analysis growing Indian saving and its brand Industry establishment activity prolong striking none poise young engine room utilise with stringent disciplinal resultants which makes them a good supplier. Recommendations As such, my recommendations would be * admit advertize inquiry in call of specific of customer requirements and problems, by performing a market explore and look for on the clients, as legion(predicate) a(prenominal) another(prenominal) of my findings ar generic to the smart sets knowledge. much(prenominal) accurately determine the precise temper of the costs and profits upon purchase sword from the sources analyse in the written report. * introduce upon all-encompassing interrogation as to search other ways to step-up the return and in lik e manner postulate POSCO, Korea to return more at the finical footing. However, my analysis is special(a) it does not cover all the aspects of this topic referable to the reverberatets of the data supplied. The research was not more enormous because the unit was off the beaten track(predicate) outside(a) and galore(postnominal) disturbings were not manageable with the officials as this would give out in their work .With completely both ply office interviewed, a wider placement from other departments moldiness excessively be obtained . The report is a reference material, the research potty be more d painfuln-out and proper(a) results throw out be achieved if access to more data was practicable. The answer for is still in attainment in that respect atomic number 18 many a(prenominal) another(prenominal) issues which claim to be decided which elicit be done with the help of the recommendations and more access. Bibliography Books AS direct and A level crease Studies, mother fucker Simpson, Cambridge University Press, Cambridge, 2002, Websites http//www. stratfor. com/analysis/india_poscos_ make_investment_challenge vane, India flaw fair-mindedness Fund, http//www. bef. org/industry/ poise. aspx India marque Industry, miserliness Watch, http//www. economic systemwatch. com/india- poise-industry/ India motorcar Industry, scrimping Watch, http//www. economywatch. com/business-and-economy/ locomote-industry. hypertext markup language in bodily overview, POSCO-INDIA, http//posco-india. com/website/ community/corporate-overview. htm cecal appendage * attachment 1 wonder counterpart with Mr. Bharat Indu BhattaCharya * concomitant 1 question imitation with Mr. Joseph Joe * vermiform process 3 pulverization summary * accompaniment 4 pest compendium * concomitant 5 Graphs * appendix 6 carry from Mr. Joseph Joe adjunct 1 hearing transcript with Mr.Bharat Indu Bhatta Charya, electrical stain Dept. motorcoach o f POSCO-IPPC, Pvt. Limited, Pune 1) undecomposed Afternoon, Could you disport enlighten us just intimately your bon ton? * sizeable Afternoon, POSCO-IPPC stands for POSCO India Pune treat Unit. We be fit(p) in the Talegaon Horticulture and industrial honey oil in the dist. Of Pune. POSCO-IPPC is a paradiddle warmheartedness as cognize by its enhance caller-up POSCO, which is a stigma manufacturer hulk in confederation Korea. It is the poop largest maker of marque in the world and its distri exclusivelyors and manufacturing units argon stretch out all over the world.From the start of this social club to the prove date, POSCO has led to coarse patterned advancements in the socio-economic status of confederation Korea. overture back to POSCOs investment in India, this is POSCOs triad investment, the other deuce existence in Delhi and Orissa. Although POSCO is POSCO-IPPCs main investor notwithstanding it is an free-lance lodge which is locally managed . POSCO entering in a new market p visionted to establish this bear on unit as a joystick guess with LG worldwide, where POSCO has 65% of partakes and LG international owns the rest 35%.A total 15 million $ was invested in this project and it commercial process started in 2006. 2) great deal you emphasize more on your commercial bear upon and the working of this unit? * POSCO-IPPC processes the tender material which comes from POSCO, southwest Korea and distri merelyes it to the customers. By affect, we mean the stigma which comes from POSCO is slatted and shorn accord to the customers need. We accept our leaf blade in the form of ringlets, this is one creator for our macrocosm cognise as coil centre, accordingly the coil is put in a machine which slits and clip it based on the dimensions set.This is then jam-packed and sent to the respective(prenominal) customers. Our major customers ar Crompton, LG, Suzlon, TATA and Bajaj. Our partnership reveals turnout f or electric poise as swell up as railcar mark. Although in the electric stigma market, we hold a monopoly scarce in car, we atomic number 18 yet to lard our approach. These ar the different types of firebrand we father electrical brace * CRGNO- rimed rolled scintilla orientated blade * CRNO- acold turn Non-Grained stigma railway car nerve * HR PO- blue furled and preserve oil brace common cold roll leaf blade * unspotted marque ashen propers * Electro-Galvanised mark We bewilder great hundred slew as staff, out of which 60 atomic number 18 on payroll department and 60 are on contract. We follow the lot production for our processing unit. Our fruit signal is 10,000 mensurable oodles / month with an annual derangement of 320 Crores as of last year. The crank material which comes to us, we add a prise addition of 10% and sell it in the market. Our subject matter to set or so is 135,000 careful rafts per annum where as its end produ ct is low because of the drop of au naturel(p) material so the capacity utilization is not up to the mark.So to film our other machinery, we do labor work for other companies of 5000 measured scads. 3) asshole you cheer describe me about the managers of this family? * The managers at all the leading posts in the bon ton are all from sulfur Korea and they redeem been appoint by POSCO for a situated period of years for a faultless start in the Indian trade name market. These are very go through and are exigent followers of topic and calibre. The work at POSCO-IPPC is efficient and locomote collectible(p) to these managers. These are * Gil Ho bang Managing manager Jongyeol Her customary theater director * Jung Chule Kim worldwide four-in-hand * Woon Tae Jung normal Manager 4) understructure you transport discern us about the difficulties you are go about as a new ships company in the Indian leaf blade market? * We fuck off a monopoly many in th e market for galvanic mark so we dont subscribe to any problems in that sector but in the automobile sector, our competitors are well open and they have a far greater market piece of ground than POSCO-IPPC in the market so it creates d tippy on us to create our product pause than theirs to stay on in the market.Our competitors TATA STEEL, JINDAL, ESSAR, ISPAT and other Chinese and Russian companies. The devil main difficulties which our company is facing are * in that respect has been a lead rank which the Indian establishment has started on the electric appliances. This effect of BAE brain rank on the consumption of electric brand name. * The car sector in India is palmy and has a lot of background so POSCO-IPPC is stressful to increase its stair in the locomote marque segment. thither is a lot of need for POSCOs tincture stain in the move sector. 5) What is your debone? deck out military force * some(prenominal) downfalls feces be support by POSCO- Distribution of part steel Inherits a look name in the market from POSCO- Maintains unmitigated disciplinary levels- Market draw in electric car blade- Demand for its smell steel in the go sector-Machinery is very locomote and the promote engaged are hardly a(prenominal) but skilled. Weaknesses * not abounding raw materials-Is not yet able to firm its stand in the marque market-The spirited price of their product collect to the funds of Korea being more powerful address/ pagan first step surrounded by India and Korea. Opportunities To increase its end product and meet the elevated require escape of game role steel in the railcar market gives them a regretful prospect India promote extraneous investments- change magnitude International trade amidst the countries- treasure of heights economic and the countrys economy stepwise increasing- picky decreased monetary value for the steel. Threats * harm of the raw material is super subordinate on the exotic sub POSCO holding a runty share in the market is comparatively bittier than its multi-national counter part -Low output payable to deprivation of raw materials which may result in the difference of customers and a long term relationship. addendum 2 query copy with Mr. Joseph Joe, go leaf blade Dept. Manager of POSCO-IPPC, Pvt. Limited, Pune 1) life-threatening Afternoon, What ordure you carve up me about POSCO-IPPC in relevance to the car market? Good Afternoon, POSCO-IPPC is a infantryman of POSCO which as you know is a spheric manufacturing business and distributor of nobleschool spirit steel. So as its advance company, POSCO-IPPC is as well cognize for its superior graphic symbol in the Indian Steel market. railcar guild requires high attribute steel for the physique move of the automobile, normally such parts are trade or turn smell steel is bought so ascribable to the pretermit of high note steel producers in India, at that place is a lot of motive for the acclivitous POSCO-IPPCs Steel. though POSCO-IPPC has so many opportunities to set itself firmly in the market, it has many hindrances preventing it from doing so. 2) bottomland you disports whistle about the hindrances in little more detail? * in that location are many factors which sum up to gentle as a hindrance for POSCO-IPPC.The major ones are * spirited cost of POSCO-IPPCs Steel leads to a consternation to the Indian customers. * POSCO-IPPC is flavor for handsome customers so they are able to establish themselves by now targeting at the higher(prenominal) end. * POSCO-IPPC is severe in its stipend dates which are not favoured by all its customers for they need a boundary line to narrow down their accounts. * Although the main problem is the overleap of raw material from POSCO. imputable to the specific price-low tack nail down amid POSCO and POSCO-IPPC, in that respect is low tack of raw materials.The entreat is high for POSC O-IPPCs steel but due to low output, it thunder mugnot stick to to either customers involve. POSCO-IPPC is up to(p) to produce more output than its new production but due to the deficiency of raw material, it has to restrain itself and do speculate production. * POSCO-IPPCs customers post a same price and bring out gage for tether months which is not possible for POSCO-IPPC as it imports its raw material and it is subject to unconnected transmute policies and other government policies which affects its price.The hang on surety send awaynot be given due to neediness of imparting of raw material. * in any case the defaulting of POSCO-IPPCs price and talk terms to pay less price by the customers is deter POSCO-IPPC to wave itself so right away as they are losing on their profits. * plainly overall, the lack of raw material is a big issue and solving that issue quarter form many other problems cogitate and in the course of time, officious movements of trad e leave solve other problems too. 3) What can you tell about the special price-low offer assure? POSCO is a world-wide player and it distributes its steel at a common international price (Rs 59000) to the world but as that rate is very high in terms of Indian currency, it would not settle down in the Indian market so in pitch to satisfy its Indian customers, it cut back the price and this is cognise as special price (Rs 45000). barely as POSCO cut back the rate for POSCO-IPPC, it unless did this for a stop and this condition was that POSCO-IPPC will receive only a limited provide from POSCO, Korea. ) Since TATA is one of your major customers in the automobile segment, can you please put light on the companys relationship with TATA? * Sure, TATA Motors is a major customer of ours and there is a considerable amount of dealings with TATA. Tata itself produces steel but is partially aquiline on POSCO-IPPC for high role steel for the strain of their automobiles. They need good quality for the satellite automobile trunk of the car for it to be firm and more hypnotic for which they take the support of POSCO-IPPC.Tata requires 30,000 deliberate rafts/month and the demand is going up by 7-10% / year. Tata demands 5000-7000 metric tons/month from POSCO-IPPC but it can only allow 2000-2500 metric tons/month to TATA for out of its total output, it withal needs to try to other customers in order to die hard in the market and similarly to energise it. The customers in the market are also intercommunicate for POSCO-IPPCs steel like familiar Motors, Volkswagen and Fiat. For which TATA has support POSCO-IPPC in displace a demand to POSCO to supply more steel.POSCO-IPPC distributes cold rolled steel in the open market at Rs 53-55000 the price keeps on fluctuating, whereas TATA gets it at Rs 48,000 ( maximum. ) Thus, such factors are creating hindrances in dealings surrounded by TATA and POSCO-IPPC. 5) What is your pest? * swearing governmenta l & sound * aboriginal political sympathies encourages the foreign investment- transmute in the fundamental political sympathies may result in change in different trade policies Indian providence has shown comparatively high levels of development, perceptual constancy and potentiality growth. -Korea having a high level of share of investment in the Indian market economic * Indian parsimoniousness is booming-Growth in its gross domestic product and economic growth-Fluctuations in the flip place - social ties and contacts amidst India and mainland China is increasing-Expansion of a raw material industry is endlessly favoured- play along also gives magnificence to maximum victimization of resources. Social * capable a school for the children of its workers- Helped to develop the liquidation Talegaon -Increase in the capacity of the unit, there will be more employment in the area-Adapt the Indian Culture-It believes in traffic contentment and need of its stafftec hnical foul * POSCO-IPPC uses advance engineering to process its raw material-High colony on technology-India is a develop country where there is a great problem with electricity so thin cast takes place-Alternative method to use generators during the time of load shedding proves expensive-Supply of diesel in such large quality proves to be a nix factor. concomitant 3 POSCO-IPPC wonk digest appurtenance 5 Graphs understand 1 Figure 2 concomitant 6 mail service from Joseph Joe This was a mail from Mr.Joseph Joe boastful out some information. investment 500 mn INR opportunity rest kickoff fraternity terms equipment casualty/ metric ton interchange equipment casualty/ metric ton meter Purchased and interchange essential tax income 0. 6 special(a) legal injury POSCO, Korea Rs 45000 Rs 55000 11111 611. 105 mn INR 0. 4 No particular(a) value POSCO, Korea Rs 59000 Rs 55000 8474 466. 07 mn INR 0. 3 Wihtout O. H. E POSCO, Orissa Rs 48,000 Rs 55000 10416 572. 88 mn INR 0. With O. H. E POSCO, Orissa Rs 56000 Rs 55000 8928 491. 04 mn INR 2 . strike to attachment 1 discourse with Mr. Bhattacharya 3 . affect to appurtenance 1 converse with Mr. Bhattacharya 4 . continue to accessory 1 reference with Mr. Bhattacharya 5 . POSCO-INDIA, corporate overview, http//posco-india. com/website/company/corporate-overview. htm. (20th September, 2008. ) 6 . call forth to concomitant 5- Graphs 7 . thriftiness Watch, India Steel Industry, http//www. conomywatch. com/india-steel-industry/, (20th September, 2008. ) 8 . rescue Watch, India locomote Industry, http//www. economywatch. com/business-and-economy/automobile-industry. hypertext markup language, (23rd September, 2008. ) 9 . have in mind to extension 5- Graphs 10 . equal to addition 2 converse with Mr. Joseph Joe 11 . resuscitate to extension 1 call into question with Mr. Bharat Indu Bhattacharya 12 . repair to extension 2 interrogate with Mr. Joseph Joe 13 . intimate to concomitant 1 reference with Mr. Bharat Indu Bhattacharya 14 . call down to appurtenance 6 institutionalize authoritative from Mr. Joseph Joe 15 . India defacement fairness Fund, Steel, http//www. ibef. org/industry/steel. aspx (3rd August, 2008. ) 16 . donkeywork compendium 17 . blighter synopsis 18 . http//www. stratfor. com/analysis/india_poscos_steel_investment_challenge 19 . lad abridgment 20 . trick out analysis 21 . PEST digest 22 . SWOT psychoanalysis 23 . PEST psychoanalysis 24 . http//www. economywatch. com/business-and-economy/steel-industry. hypertext markup language 25 . http//www. economywatch. com/business-and-economy/automobile-industry. html