Introduction about Grasim industry

Grasim Industries Limited, a flagship company of the US$ 48.3 Billion Aditya Birla
Group, ranks amongst the top publicly listed companies in India. Incorporated in
1947, it started as a textiles manufacturer in India. Today, it has evolved into a
leading diversified player with leadership presence across many sectors. It is a
leading global producer of Viscose Staple Fibre, the largest Chlor-Alkali, Linen and
Insulators player in India. Through its subsidiaries, UltraTech Cement and Aditya
Birla Capital, it is also India’s largest cement producer and a leading diversified
financial services player. At Grasim, there is an endeavour to create sustainable
value for 21,000+ employees, 230,000+ shareholders, society and customers. It has
consolidated net revenue of over US$ 10 Billion and an EBITDA of over US$ 1.8
Billion in FY 2019.

 https://www.grasim.com/about-us/who-we-are
 Scenario of Grasim industries in world and Gujarat

Grasim Reported excellent financial results for Q2FY19 recording all-round growth.

 Consolidated Revenue: Rs. 16,795 Cr. EBITDA: Rs. 2,854 Cr.

 Standalone Revenue: Rs. 5,118 Cr. - up 26% YoY
 Standalone EBITDA: Rs. 1,352 Cr. - up 28% YoY
 Standalone PAT Before exceptional item: Rs. 817 Cr. - up 30% YoY

Rupees in crore
Standalone Consolidated
Q2 Q2 Q2 Q2 FY18
FY19 FY18 FY19
26% 5,118 4,059 Net Revenue 16,795 13,570 24%
28% 1,352 1,054 EBITDA 2,854 2,817 1%
32% 1,113 845 PBT 1,636 1,592 3%
30% 817 628 PAT 626 613 2%
(Before Exceptional
Items)

The Standalone cash profit for the quarter was Rs. 1,041 Cr. up by 29% YoY

The Standalone PAT (after exceptional item) was (-) Rs. 1,187 Cr. after considering
a one-time non-cash exceptional item of Rs. 2,003 Cr. The Consolidated PAT (after
exceptional items) was (-) Rs. 1,446 Cr. With the merger of Vodafone India Ltd. with
Idea Cellular Ltd., the Company’s shareholding in the merged entity, Vodafone Idea
Ltd. (VIL) now stands at 11.55%. Consequently, VIL ceased to be an ‘Associate’ of
the Company with effect from 31st August 2018. Accordingly, the share in PAT of
VIL has not been consolidated with effect from 31st August 2018. The exceptional
item of Rs. 2,003 Cr. represents the difference between Book Value and Fair Value
of VIL as on 30th August 2018. This has been charged to the Profit and Loss
Account, consequent to VIL ceasing to be an ‘Associate’.
 About major companies in industry

Rank Company Leadership CEO Employees Total Revenue

SCORE funding

72/100 24,286 $0 $9.3B

Dilip Gaur,
Managing
Director
1 78/100 6,488 - $2.7B

Stefan
Doboczky,
CEO
2 79/100 20,000 - $8.1B

Jun
Suzuki,
President
& CEO
3 - 62 - Input

CEO
4 69/100 166 - $12M

A.J.
Nassar
CEO
5 - Input - Input

CEO
6 - Input - Input

CEO
7 73/100 1,311 $60M $295M

Atul Jain
Chairman
& CEO
8 80/100 1,87,729 - $81.3B

Mukesh
Ambani
Managing
Director
9 54/100 580 $105.4M $89.4M

Sadashiv
Nayak
Interim-
CEO
10 68/100 150 $28.9M Input

Charlie
Thomas
CEO
Porter’s five forces model of Grasim/Textile industry
  Bargaining Power of Buyers (Low):

• High demand for apparels and home textiles in USA and European markets.
• Product differences and brand identity are quite high.
• Buyer concentration is very low.
• Buyer volume is generally low.
• Buyer information is high.
• Ability to backward integrate is very low.
• Thus the bargaining powers of buyers are low

 Bargaining Power of Suppliers (Low) :

• High availability of cotton.

• Low cost of labour.
• Differentiation of input is pretty low.
• Presence of substitute inputs to cotton like polyester, Wool, Lycia etc are present.
• Importance of volume to suppliers is very high.
• Cost relative to total purchases in industry is low.
• Thus bargaining power of suppliers is low.

 Threat of New Entrants (Moderate):

• Low barriers in the domestic market.

• Economies of scale are high.
• Brand identity of a company in this industry is high.
• Capital requirements to establish a regional or a national level operation are high.
• This industry is not lucrative.
• The companies operating at the national level do manage to make economic profit
but entry barriers at this stage are very high.
• High capital requirement is not an issue for the international players and thus the
entry of strong international brands in the domestic market is inevitable.
• Thus the threat of new entrants is moderate.
  Threat of Substitutes (High):

• Competition from low cost producing nations like Pakistan and Bangladesh.
• The threat of substitution from the garments provided by the unorganized sector is
high.

 The Degree of Rivalry (High):

• Fixed costs are high in this industry.

• Product differences are high.
• Brand identity is high.
• Exit barriers are also high for the national level
 Introduction of Aditya Birla Group Company

Aditya Birla Group is an Indian multinational conglomerate, headquartered

in Worli, Mumbai, Maharashtra, India. It operates in 34 countries with more than
120,000 employees worldwide. The group was founded by Seth Shiv Narayan Birla
in 1857. The group has interests in viscose staple fibre, metals, cement (largest
in India), and viscose filament yarn, branded apparel, carbon black, chemicals,
fertilisers, insulators, financial services, and telecom.

The group had a revenue of approximately ₹3, 42,930 crore (US$48.3 billion) in year
2019. It is the third-largest Indian private sector conglomerate behind Tata
Group with revenue of just over US$110 billion and RIL with revenue of US$90
billion.

Founded 1857, 162 years ago

Founder Seth Shiv Narayan Birla

Main Headquarter Mumbai Maharashtra , India

No. of Employees 1,20,000 (2015)

Revenue $48.3B (2019)

Website www.adityabirla.com

 https://en.wikipedia.org/wiki/Aditya_Birla_Group
 Product Profile (Major products)

PRODUCTS OF INDIAN RAYON (ADITYA BIRLA):

Indian Rayon (A Unit Of Aditya Birla NUVO Ltd.) situated at Veraval, Saurashtra.
Indian Rayon is manufacturing Rayon, sulphuric Acid, Carbon Di-sulphide, caustic
lye & flakes, chlorine, hypo chlorite, HCL etc. Company also produces power for their
Own consumption.

Following products are manufactured on more than 100% of their

capacities.
Sr Name of product Installed capacity
no. ( Mt/Month)
1 Viscose filament rayon 1650
yarn
2 Sulphuric acid 3600
3 Carbon di-sulphide 1000
4 Anhydrous sodium 2050
sulphate
5 Sodium sulphide 100
6 Caustic soda 12000
7 Liquid chlorine 10560
8 Hydro chloric acid 1800
9 Sodium hypo chlorite 3750
10 Compressed hydrogen 650000Nm3
Nm3
11 Power plant 34.5MW
SWOT Analysis of Grasim industries/Aditya Birla Company
  Strengths:

1. The company is a subsidiary of Aditya Birla Group, which operates over 40

companies in 10+ countries

2. Grasim is the world's second largest producer of viscose rayon fibre with a
significant market share

3. Strong brand equity of Aditya Birla Group

4. Birla Group having operations in diverse sectors helps its subsidiaries to grow in
all aspects

5. Grasim has a workforce of around 7000 efficient employees

6. Grasim Industries deals in production of Fibre and pulp, chemicals, cement and
textiles

 Weakness:

1. Grasim industries have fluctuating sales which can affect profitability

2.Input costs have risen for Grasim industries which has resulted in reduced profits

 Opportunity:

1. Grasim Industries should focus on increasing branding activities, this can result
into higher sales and in turn it can gain its lost shares back
2.Aditya Birla Group has a huge brand equity attached with it, being a part of such a
group is something the company should take leverage of and build its operations
around
3. It can expand its operations to other countries
4. With increase in construction activities, demand for cement is rising, this a huge
opportunity for Grasim Industries to push their products
  Threat:

1. Grasim Industries is facing a huge competition from other key players in the
respected segments

2. Cheaper local brands are increasing their hold in the country, so it might impact
top players like Grasim Industries

 https://www.mbaskool.com/brandguide/real-estate-and-construction/10070-
grasim-industries.html
 Introduction of topic

In today’s world of marketing, everywhere you go you are being marketed to in one
form or another. Marketing is with you each second of your walking life. From
morning to night you are exposed to thousands of marketing messages every day.
So the topic of market scope is to predict the potential customer of Grasim industries
products those are presently using the products of competitor’s brand, so this topic
will help us to know how we can capture the potential market share of saurashtra
region. Marketing scope is the process of planning and executing the competition,
pricing, promotion and distribution of ideas, goods and services to create exchanges
that satisfy individual and organizational goals.

So before conducting the research on marketing scope following points should keep
in mind.

1. Study of consumer wants and needs

Goods are produced to satisfy consumer wants. Therefore, study is done to identify
consumer needs and wants. These needs and wants motivates consumer to
purchase.

2. Study of consumer behaviour

Marketers perform study of consumer behaviour. Analysis of buyer behaviour helps
marketer in market segmentation and targeting.

3. Production planning and development

Product planning and development starts with generation of product idea and ends
with the product development and commercialization. Product planning includes
everything from branding and packaging to product line expansion and contraction.

4. Pricing policies
Marketer has to determine pricing policies for their products. Pricing policies differs
from product to product. It depends on the level of competition, product life cycle,
marketing goals and objectives etc.
5. Distribution
Study of distribution channel is important in marketing. For maximum sales and profit
goods are required to be distributed to the maximum consumers at minimum cost.

6. Consumer satisfaction
The product or service offered must satisfy consumer. Consumer satisfaction is the
major objective of marketing

7. Marketing Control
Marketing audit is done to control the marketing activities.
Literature review