Honda Siel February, 2008, Honda Siel saw its first quarter net profit slump 19% due

to jump in prices of components and loss of markets. Siel, in May 2009, reported a 31% growth in profits. This growth was achieved by the market it captured. It now has a share in the rural markets and an increasing share in the south. This growth in profits helped it invest in capital intensive production methods and hence end highly paid contractual labour contracts. Siel managed to tone down the effect of inflationary price hikes in the costs of components as prices of steel and iron increased as they did not give in to supplier demands of raising prices, instead settling for higher volumes. They implemented a key business factor grooming strategy in May 2008 that helped them produce the results mentioned above in the financial statements of 2008-2009. In order to increase business grooming, Siel undertook various technical measures that ensured cost cutting in the factory itself, like Electronic Data Interchange with suppliers for Quantitative Just In Time supply of goods. They also pushed goods at rural markets without increasing much of its sales costs with the help of farmers with dormant capital. They controlled their logistics costs with the help of an initiative whereby nationwide distributors would get a discount of a certain amount if they collected the shipment from the facility themselves. However, this discount was less than half of what Siel itself paid for moving their goods to the distributors. This was a win-win situation. Han Woo Park said recently that they look forward to increasing shareholder value by making better use of plant capacity and less labour in regions where this is a possibility.