Strategy

FENESTA BUILDING SYSTEMS –

GROWTH STRATEGY ANALYSIS

Group II
 Members – Group II

• N-012 Amit Yadav

• N-013 Amrish Gupta
• N-014 Anand Prakash
• N-015 Anisha Ganguli
• N-016 Ankit Gupta
• N-017 Anupam Attri
• N-018 Anupama
• N-019 Arun Sharma
 COMPANY PROFILE

• Fenesta Building Systems, is a Business Unit of

Rs.3,500 Crore DSCL group .
• Largest uPVC windows solutions provider
• Specializing in the design, manufacture,
installation and service of precision-engineered
made-to-order uPVC window and door systems.
• End to end service provider right from extrusion of
uPVC profiles to installation of windows.
• Present in 40 cities, Number of showrooms 30
• Presently southern markets contribute more than
50% of the company's turnover
 INDIAN WINDOWS AND DOOR
MARKET
• Windows and doors in India - Wood, Steel,
Aluminum. The net worth of the industry is $ 3,190
million as on 2009
• Due to extreme weather conditions preferences
varies across regions.
– North : Aluminum and Wood,
– West :Aluminum
– South: Wood
– East: Wood
• However preferences are shifting for aesthetic,
energy efficient, maintenance free and superior
insulating material. Today, UPVC is widely
accepted as a preferred material for windows and
doors by architects, developers and end-users
across the country.
FENESTA : MARKET SEGMENTS
• The strategic intent of the company is to provide high
quality product and turnkey solutions for the consumer.
• BUSINESS TO BUSINESS (B2B)
- Residential- The net worth of this segment as on 2009 is
138.3 MUSD
- Builders
- FY 2009-10 witnessed the launch of residential projects
with some price rationalization.
- The correction in prices cuts in bank interest rates and
smaller unit sizes per apartment - owing to a shift from
luxury to mid segment housing - led to increased
affordability for homebuyers.
- Non Residential- The net worth of this segment as on 2009
is 143.2 MUSD
- Hotels
- Hospitals
- Institutes
- Offices
• BUSINESS TO CUSTOMER (B2C)
- Individual Homeowners
- Changing home windows is a hot new idea in home
improvement and renovation
 Fenesta and Counterparts
Company Profile Range of products Performance for Product
Service and characteristics &
maintenance differentiation
Fanesta is India's largest It has wide range of Provides service in: Sound-proof, monsoon-
windows and doors uPVC windows and Blending, Extrusion, proof, termite-proof,
company. doors that are able to Design, Site Survey dust-proof and energy-
Fenesta It has headquarters in withstand India's Manufacturing, saving.
Gurgaon. The company extreme climate Installation
has own sales and condition at various Thereafter, skilled
service presence in geographic locations. teams control every
nearly 50 cities with subsequent function
nearly 100 marketing
associates, 16 sales
offices, 6 factories and
30 showrooms.
(A part of DSCL Group)

It is a German Aluplast has a wide At the time of sales the aluplast U-PVC windows
company which has range of uPVC windows engineers of Aluplast and doors profile comes
manufacturing plants and doors i.e. helps in selecting and with eco-friendly
Aluplast in Germany. It has Casement Windows technically designing UNLEADED stabilizers.
established a sales Tilt and Turn Windows the customized product Their frames never
office in Delhi, India. French Windows for the customers. need painting or
Residential Doors Aluplast believe that staining. These products
French Doors their product requires have excellent weather
Tilt and Slide Patio Minimal Maintenance resistance and will
Doors and occasional greasing comply with relevant BS
Sliding Windows is sufficient for their standard. Also these are
Sliding Balcony Doors products. combustion resistant.
 Fenesta and Counterparts
Company Profile Range of products Performance for Product
Service and characteristics &
maintenance differentiation

Window & door expert Slider Window, Glass, Service has been the Long Life, Maintenance
Magnus specializing in the Doors, Hardware differentiating factor Free, Acoustics
design, manufacture, between Mangnus and Insulator, Thermal
installation and service others. Insulator, Eco-Friendly,
of UPVC window & door Resists Combustion,
systems. Design Freedom, Anti-
Location: Headquartered termite, Burglar Proof
in Hyderabad, India with Energy Saving, Superb
a strong presence in 3 aesthetics, Flawless
cities across India,the finish
largest UPVC windows
manufacturer in the
country.

World's largest German uPVC window and door Veka has the “after sales Eco Friendliness-through
manufacturer in high profile systems service” for its products. to recycling of discarded
Veka quality uPVC window synthetic windows.
and door profile systems PVC provides decisive
Location: Warehouse in advantages beginning
Mumbai with environmentally
In India: more than 5 friendly production,
years energy saving
processing, Durability,
Sound Insulation, Heat
Protection
 INTERNAL OPERATIONS
• Fenesta controls the entire supply chain from
manufacture of PVC resin to extrusion, fabrication,
installation and service.
• All extrusion takes place at its Kota manufacturing
facility
• Fenesta has technological arrangements with
Greiner, Austria, and Spectus, UK
• Considerable investment in R&D to innovate
products that are best suited for Indian conditions
• Backward Integrated Use resin obtained from
another DSCL business byproduct as an input
material.
• High Attrition – 40%- New entrants are eating up
the trained manpower
• Dealer Development is a challenge.
 KEY ISSUES: EXISTING
FENESTA CUSTOMERS
• Expensive as compared to wooden fixtures

• Wooden fixtures have a better look and give a

royal feel
Customer would prefer rich look rather than UPVC
look ,hence chances of losing a customer are high

• Poor customer service:

Poor TAT( 2 weeks to answer customer query,
high delivery time- 45 days and that too is not
met). Move to competitors who provide better,
faster and cheaper service

• Take full amount before installation:

 SURVEY ANALYSIS
• Lack of Knowledge : 60% of the sample were
unaware about the product.
• High Cost: 30% of sample strongly agreed that
high cost deters them to purchase UPVC product.
• Looks: 25% of sample agreed that looks deters
them.
• Quality: 15% of sample agreed that quality deters
them.
• Availability: 5% of sample agreed that availability
deters them
• Durability: 10% of sample agreed that durability
deters them.
• Customer Service: 10% of the sample marked
agreed that this deters them.
 SWOT ANALYSIS

STRENGTHS WEAKNESS
•Own Extrusion facility •Expensive
•Backward Integrated •Relatively new concept
•Product scores over •Unable to give timely
conventional options delivery

OPPORTUNITIES THREATS
•High growth in real •Very competitive
estate market. landscape
•Low range products. •Low cost players from
China
•High Attrition
 SUCCESS STORY: UK MARKET
2nd largest consumer of UPVC Windows after Germany
(Source:WWF-UK Report By. Christian Thompon)

• 12 Million windows sold/ year

• 50% i.e. 6 Million are made of UPVC.
• 25% i.e. 3 Million are made of Timber.
• 25% made of other materials( Aluminimum, Fiber
Glass etc.)

PVC
TIMBER
OTHERS
SUCCESS STORY: UK MARKET
• Extensive UPVC campaign in1990 to promote it
as a better alternative than wood.
• This is in spite wood windows cheaper by 14-
25% than UPVC
TIMER SHARE

100

90

80

70

60

50 TIMER SHARE

40

30

20

10

0
1960 1983 1994 2005
SUCCESS STORY: UK MARKET

• In 2001 5.7Million UPVC Windows were sold

- 67%- Private Sector
- 33%- Public Sector
• And
- 83% for Refurbishment Purposes
- 17% for new building applications.
 SUCCESS STORY: CHINA
MARKET

• Demand for windows and doors in China is

forecast to rise 7.7 percent annually to ¥364.5
billion in 2014.
• Gains are primarily be driven by strong building
construction activity, spurred by further
industrialization and urbanization in China.
• Demand for plastic doors and windows will
continue to exceed metal and wooden doors and
windows and by 2011 the demand will increase at
the rate of 13.9% every year.
• Huge subsidy in plastic & related materials from
Chinese government.
 SO-WHATS???
• Extensive Advertising : Highlight the USP vis a vis
wooden & Power coated Aluminum products. Use more
skilled people along with references of the existing
customers.

• Introduce new LOW RANGE PRODUCTS along with

existing premium products to increase sales &
acceptability of the product & leverage existing 16 sales
offices & marketing network.

• EXPORTS Explore new markets outside India in Middle

East.

• Target REFURBISHMENT CLIENTS

• Timely & Better response/service to Customer queries

& complaints and ensure timely delivery of orders.

• Better compensation & benefits to RETAIN EMPLOYEES

and better distribution of Manpower.
THANK YOU