GROWTH STRATEGIES OF SIL

Prakhar Gopal Bhatnagar Sagar Sahai Shashank Dikshit Shivam Saraogi Shubhla Mathur

INTRODUCTION
Established in 1985 in Bhilwara town. Primarily into weaving operations. P/V constitutes 5% of the total Indian textile industry. Largest Indian manufacturer, with 20% market share.

Reasons for growth Manufacturing at Bhilwara town. Old machinery replaced by newer Sulzor machines from Switzerland therefore, Shifted from coarse count yarn to fine count yarn

INTRODUCTION CONTD.
Procured raw material from Reliance Industries Limited and Grasim Industries Limited.

Proper classification of the segment wise sales of the product.

SIL took advantage of the removal of international quota regime. Began to target the US and Euro markets. Rs 400 crores invested in various schemes which High demand for cotton yarn in the export as well as booming domestic market Incompatible tax structure made the textile product costlier

Another hurdle was the increasing competition from China.

SWOT ANALYSIS

STRENGTHS WEAKNESSESS * Market leader * Expertise in taking strategic decisions * Cheap labor and raw material

* Unable to cope up with the govt.s cost structure

OPPORTUNITY * High demand of cotton * Removal of Quota Regime

THREATS * China as a competitor * Incompatible tax structures

QUESTION NO.1
Analyze the performance of SIL and relate it to the BCG matrix. Indicate the current and future positions of the company in the matrix and give reasons for the same. Market leader and largest manufacturer of P/V dyed yarn. Is into B2B trade with world class manufacturers and corporate buyers. In the present scenario, SIL has high market share and high growth rate, hence it is a STAR In the near future, they plan to invest RS 400 crores in capacity expansion and introduction of higher value products, considering the increasing competition. Hence in the near future they are expected to be cash cows, only if this decision will help them to sustain their position as market leader

QUESTION NO.2
Discuss the changes in the export environment of the Indian textile industry in general and that of SIL in particular. What strategies can SIL adopt to overcome the Chinese competition in the global textile export market? Contribution of the Indian Textiles industry to export earnings is 12% and as of April March 2010-11, total textile exports stood at US$ 12.5 bio.

Export promotion council organizes garment fairs, mega shows, buyer seller meets, trade delegations and provides assistance to its members in various areas.
Around 13% exported to African and middle east countries and post January 2005, SIL started to target US and European markets. In order to overcome the competition from China, SIL can adopt HOLD AND MAINTAIN the quality of their products SIL can look into market penetration strategy i.e. maintaining their expertise

CONCLUSION & SUMMARY

The case focuses on the company's success story in the P/V dyed yarn market in India.
It highlights the growth strategies adopted by SIL that led to economies of scale, increase in market share and profitability.

The case focuses on the measures adopted by the company to manage the changes in the economic and legal environment and emerge as a leader in the textile industry in India.
Sangam India exploring strategic alliances with international fashion brands to launch premium product lines.

THANK YOU