Ferro Industries –

Exporting
challenge in a
small firm
Group – 7
Manvi Varshney - 143025
Nehal Parashar - 143026
Rishab Nag - 143038
Vipul Chahal - 143059
Introduction
Problem Statement

   How can Ferro collect now that it has released

the machines, and what steps needed to be taken
to manage Ferro's exports in the future to limit its
account payment risk?
  
   •  Inadequate Payment Terms
   •  Lax accounts receivable terms
 Entered steel industry in the year 1995.

Manufacturing facility located in Sahibabad Industrial

area.

Backgroun Received best technology award in 2009 from NSSIC.

d of the Quality driven, 100% satisfaction to customers, & had

company
erected 100+ plants worldwide.

Garima joined Ferro in 2005 as head of exports.

Ferro received its first foreign enquiry from Mhmd Al

Yusuf (middlemen to Metal Star).
 About the Company

Product Best quality advanced Technology customization as per

different country client requirements.

Price 10% in advance; 35% after dispatching the B/L;

remaining at the time of delivery flexible pricing.

Promotion Exhibitions- IITF & NSIC

Significant Growth 75 to 80 per cent of the company’s

Growth & Export revenue could be attributed to exports.
 • Ferro's growth in sales and exports

• Exports = 80% of business in 09/10

• India liberalized trade policy in 1991: No longer

Qualitativ government protection if a customer doesn't pay

e Analysis • Ferro's weak financial condition

• Competition from China and other Indian companies

• Cheaper supplier options in China, competitors in India

also have better track records with delivering on time
 Increased turnaround time

Challenges Delays in shipment

Yusuf's financial issues

 Regular assurances to Yusuf

Machines ready by first week of May

Action B/L sent to Yusuf's manager by 6th May

taken (35% pre-payment)

Yusuf agreed to pay 17%

Shipment release email sent to WSO on

7th July