SHARMA INDUSTRIES

INTRODUCTION
■ Sharma Industries started in 1970 by Rammanohar Sharma
■ In 1990 opening of Indian economy SI focused on international expansion and
acquired small companies in different countries
■ Most products sold in local brand name or were partners with major industries
■ SI subsidiaries are autonomous in nature, central department control –
– corporate relations and public affairs
– finance and acquisitions
– legal and administrative
■ Other functions remained under individual subsidiaries
■ Company manufactured in 3 category
– Industry Product
– Consumer Product
– Electronics
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PROBLEM
■ As Subsidiaries worked independently, collaboration, adaptability and decentralised
power became a problem
■ Problems started to arise in three areas
1) Independence made difficult to make consolidate financial reports worldwide
&gain the efficiencies of uniform information and reporting systems
2)Each subsidiary's major decisions were concentrated in their regional area rather
than worldwide, most of time and resource spent on local projects
3) There is no transfer of technology, ideas or innovation between different regional
subsidiaries around globe
■ There is a constant increase in Materials & consumables, Salaries & wages and also
others costs which are driving profits down. Trend observed in sales is more cyclic in
nature.

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SOLUTION
■ Glocalization will be adopted so that the essence of regional play is not
reduced
■ Financial Reporting will be done with 2 methods one as per required local
law and another as per IFRS so a consistent approach is used for financial
reporting through IFRS
■ We will go with first and second option combined to create a international
department at headquarter, directors and their respective teams will
coordinate with business managers with clearly defined duties, as per the
need of department power distribution of business managers will change
■ Training and technology transfer will also take place at the international
department
■ Saved cost through this measures will be used in research and development
to stay with updated technology, to prevent high cost of buying a technology
if market changes

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Thank you