CIIE Project

Group 1

Agenda

Company Background Business Model Marketing Efforts by the company Major Challenges faced Recommendations What would make these ventures successful

ANTS Ceramics

Company Background

Started in 2006, manufacture ceramic components of Oxide of Silica, Alumina, Fused Silica, Zicron Key technologies Slip Casting, Gel Casting, Pressing Close Inter-academia tie-ups with IITs, Central Universities Better Quality but with competent prices, value proposition varies for trading purposes (B2C) price, for customized purposes (B2B) quality Customers from Private and Public Sector

Public Sector: IITs, Central Universities, NITs, IISC, CSIR (NPL, NCL) Private Sector: General Electric, Compton, Tata Steel, Tata Chemicals

Global market estimate: $24 billion, Indian Market share: 0.34 Globally ranked 36th in exports of traditional and advanced products As of now, 5000 tonnes per annum of advanced ceramics against total of 500000 globally CAGR: 12-14% after 2009, chiefly to come from cities and regional markets Untapped potential in case of advanced ceramics, ceramic tiles a more matured industry

Custom designs: higher margins (niche segment), marketing depth

Marketing

Three segments

Central Universities : Anna University, Jadhavpur University Research Labs: CSIR labs like NPL etc., IISC, Department of Atomic Energy Private Firms: Tata Steel, Tata Chemicals, Sterlite, Compton, GE etc. Word-of-mouth (referrals) Expo Conferences and individual contacts

Key promotion (order of effectiveness)

Owners come from manufacturing background, hence contact exist already

Value proposition

Into trading Price competency Customized design for DAE etc. price premium charged Quality a key differentiator for all segments process innovation, suppliers

Distribution Network
Inception Unknown product, no encouragement for dealers Limited Clients, so distribution easier Limited competition Successful Launch Dealers interested Policy not favorable for the dealers, very meager [sic] discount given Maturing product Increased market size Difficult for the company to handle all client themselves Establishing a dealer network a major challenge now

Conference/Expo Prospective Clients learn about the company at one of the promotion

Delivery No stock maintained, each ordered fulfilled from Nasik based factory Tied up capital important, hence inventory avoided

Feedback Personal visits from company people Quality issues resolved in the personal visit, most of the products are customized

Major Challenges

Expansion: National presence not feasible to handle Geographical Spread: the clients spread all over the country geographically while the production nuclear at Nasik Product familiarity: Relatively unknown product, difficult to sell, awareness needed Overdependence on some clients: One client (DAE) accounts for 25% of its revenues Issues in handling public sector units: Tied up capital, delayed payments

Recommendation

Diversification Product diversification as lab based equipment market is small More Corporate Sector Demand: Benefits like advance payment etc. is more likely for corporate sector. Formation of Dealer network: As the demand grows, the company cannot cater to all the clients. Strong dealer network is a must Quality control: Focus on quality for business growth More distribution centre: Distribution to the entire country is difficult from one distribution centre at Nasik.

Aspiration Energy

Company Background

Chennai based enterprise working for making solar energy affordable to the customers Pay Rs. 10 per KWH for first 10 years and get a solar installation with a useful life of 10-15 years Grid interactive systems without batteries

Business Model

Investment: Partially shouldered by company itself Subsidy: Approval of subsidy must for establishment Suitability to Indian Scenario: Risk assumed by the company Maintenance: Cost borne by the company Quality: Customer pays for 10-year time horizon, quality assured Installation: done under companys supervision

Marketing

Suited for B2B and B2C approach Relationship building important as a long time horizon for a single client Services distinguishing factor, price higher for solar energy than for coal-based energy Key marketing appears to be by Workshops and internet promotion Key Differentiators

Cost Savings Dependable Quality team(reliability) 24 hours response cycle

Major Challenges

Develop an awareness among users about the feasibility of solar energy based products, and then create a market for solar projects and devices. High CAPEX Urban housing scenario High powered appliances (TV, Refrigerator, AC etc.): Very expensive and technically difficult proposition Developing proper sales channel: Geographically difficult to install units everywhere

Recommendation

Segmentation based approach for marketing Better promotion strategy, more targeted campaigning Funds a problem, need to reduce operational expenses Geography restricted for solar energy by availability and season, need to diversify to other renewable sources of energy Online portal for information regarding installation and maintenance Referrals important as relationship is the key, referrals to be rewarded

Thank You