ELP 070 - Pennar Industries - Philippines

7/18/2019 ELP 070 - Pennar Industries - Philippines

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Project under the International ELP : ELP

- 070

Client Organization: Pennar Industries Limited (PIL)

Brie !ac"ground o the organization:

Pennar Industries (PIL) www.pennarindia.com is an precision engineered

manufacturing and services company based out of India. The company has

capabilities in the manufacture of hydraulics, automotive components, pre

engineered buildings, water treatment, specialty chemicals and

infrastructure products. PIL also provides services in the design and detailing

of structurals to our customers.

!eginning in "#$$, with the setting up of the %rst manufacturing plant near

&yderabad with an installed capacity of ', TP* to manufacture +old

olled -teel -trips (+--) and the company has grown at a rapid pace.

PIL embared on a series of strategic ac/uisitions and e0pansion plans, most

notably among them being ac/uisition of 1agar2una -teel Ltd.3 Press etal, a

unit of Tube Investment (TI) near umbai and the more recently the assets of

4ayne !urt Petrochemicals, 5-* (erstwhile !ailey &ydro), for venturing into

&ydraulic +ylinders segment. They also established a new manufacturingfacility at +hennai and set up an assembly unit at &osur, near !angalore to

meet the re/uirements of *uto +omponents.

Today, with an annual production capacity of more than ', TP*,

Pennar is a multilocation, multiproduct company manufacturing precision

engineering products such as: +old olled -teel -trips, Precision Tubes,

ailway wagons 6 +oaches, Pre7ngineered !uilding -ystems, -heet etal

+omponents, oad -afety -ystems ,etc. ecently we have also

added &ydraulics and 4arehousing solutions as two new products in their

portfolio. PIL has a panIndia presence with si0 manufacturing facilitiessituated across the country. These facilities include laser cutting, plasma

cutting, transfer presses and +1+ machines that enable it to mae products

of very high /uality. *ll the plants are I-8 certi%ed.

http://www.pennarindia.com/

http://www.pennarindia.com/



PIL9s products have a signi%cant presence in sectors lie Infrastructure,

*utomobiles, Power, eneral 7ngineering, and !uilding ; +onstruction

among others. The customers are spread across India, 5*7, and 5-*

Pennar has set up two subsidiaries Pennar 7ngineered !uilding -ystems

(P7!-) and Pennar 7nviro Limited (P7L).

Pennar Engineered Building #$stems (PEB#) - www.pebspennar.com is

engaged in the design, manufacture, supply and installation of pre

engineered steel buildings and building components. P7!- factory was the

%rst in India to receive a gold rating from the Indian reen !uilding +ouncil

and thus is at the forefront of the movement for a sustainable future.

P7!- is a onestopsolution for all building re/uirements of varied customers !uilding +omponents, !uilding *ccessories, !uilding *dditions, !uilding-ystems, and <esign -ervices. The preengineered steel buildings areuni/uely designed and fabricated to suit customi=ed re/uirements, builtstrictly following the international standards,

P7!- cater to industrial, commercial and institutional re/uirements andprovide enhanced speed in delivery and erection and also provide >e0ibilityin e0pansion and withstand severest weather conditions to deliver the bestof preengineered solutions. These buildings are available in largemultidimensional spans3 lean to roof at all re/uired heights and sidecladdings. They feature a structural steel framewor of primary andsecondary members (rigid frame, beams, purlins and grits, trusses and

columns) on to which cladding and roo%ng components are attached

Pennar En%iro Limited (PEL) www.pennarenviro.com deals with 4ater

and 7nvironment Infrastructure business to provide turney solutions vi=.,

4ater Treatment Plants (4TPs), -ewage Treatment Plants (-TPs), 7?uent

Treatment Plants (7TPs), 7?uent ecycling Plants (7Ps), @ero Li/uid

<ischarge Plants (@L<Ps) etc, thus providing environmental friendly

technologies for Industrial ; unicipal segments. Plans are afoot to enter

into -ea6!racish 4ater <esalination besides

Pennar 7nviro Limited also has an e0tensive range of high performance

-pecialty 4ater Treatment +hemicals under the brand name of AP711T7*TB

for treatment of !oiler 4ater, +ooling 4ater, aw and 7?uent 4ater. Product

capabilities e0tend into all aspects of industrial water management such as

cooling water treatment, boiler Ceed water treatment, raw water6waste water

treatment, reverse osmosis membrane treatment, apart from specialty

process additives for various process re/uirements

http://www.pebspennar.com/

http://www.pennarenviro.com/

http://www.pebspennar.com/

http://www.pennarenviro.com/



P7L is also a pioneer in the %eld of additives, supplying speci%c premium

high technology additives based on fuel characteristic re/uirements and

speci%c performance enhancements. It is the authori=ed manufacturer and

mareter of 7lf Cuel 8il *dditives, having a technical collaboration with

T8T*L, Crance (fourth largest petroleum company in the world).

P7L has diversi%ed its product range into %ve diDerent segments *dditivesfor &eavy Cuels, -torage -tability *dditives, *dditives for Light 8ils, *dditivesfor -olid Cuels, and Industrial and *gro Products

Project &itle:

<evelop entry strategy into Philippines for two of the subsidiaries of Pennar

Industries

• PEB# Pennar (P7!-) in the business of custom designed building

systems

• Pennar En%iro Limited (PEL), in the business of providing solutions

for water treatment, including desalini=ation plants

Primar$ ocus o the stud$:

The pro2ect is of high strategic importance to PIL and hence the study should

focus on:

• aret *ssessment E maret structure, competition, growth

opportunities

• aret 7ntry -trategy E a way forward for P7!- and P7L

• egulatory framewor6 re/uirements of Philippines in this sectors

• Foint Genture or ac/uisition options

• 8verall roadmap for entry of PIL group into the Philippines

Project descri'tion:

PEB# provides turney design engineering, manufacture and site erection of

preengineered buildings to our customers in India. The company would lie

to diversify its base of operations internationally and see out marets in

-outh 7ast *sia.

The company has strong engineering, technical, operational and pro2ect

management capabilities. The pro2ect would entail evaluation of the

opportunities for our products and services in these geographies by



evaluating the maret and growth rates and to assist in building a

customi=ed entry strategy for P7!-. The pro2ect can cover a sales entry

followed by build of large scale manufacturing assets in the target

geographies over a period of a few years

Pennar En%iro provides solutions for water treatment for industrial waterand waste water. The company also has strong capabilities in specialty

chemicals.

P7L would lie to evaluate the opportunities in the -outh 7ast *sian

geographies, speci%cally the Philippines for our products and services.



Project o!jecti%es:

To develop a strategy for P7!- and P7L (subsidiary companies of PIL) to enter

into the Philippines maret

Cor P7!-:

• 7valuation of maret si=e and growth rates for preengineered

construction.

• 5nderstanding the local construction industry broadly to evaluate the

potential for our solutions.

• *n entry strategy that covers a sales entry followed by development of

production, engineering and pro2ect management capabilities.

Cor P7L:

• 7valuation of maret si=e and growth rates for water treatment and

specialty additives.

• 8verview of municipal and industrial water usage in these

geographies.

• *n entry strategy for these geographies.

Project deli%era!les:

This pro2ect will help us decide whether to invest in these geographies. *good understanding of the maret si=e along with a broad understanding of

our entry strategy will help us shape our plans for these countries

The ob2ective is to develop eDective and implementable recommendations

that serve to support as well as augment our business potential. To this end,

the i7LP team will plan Ao *headB activities such as introductions to

potential customers, channel partners and consultants to help in the

e0ecution of pro2ect recommendations by the +lient

*.Project Charter Pro'osal

8verview of the pro2ect ob2ectives, timeframe, scope and deliverables, as also detailed wor plan. (Fuly6 *ugustH")

!. Interim Progress e'ort E -ummary of the progress made on thestudy and the i7LP Team9s %ndings (-eptember H")

+. *inal e'ort E Presentation to the top management of PIL, of amareting approach and service roadmap that is strategically soundand fact based. (1ovember H")





+ature o e,'ected recommendations

* full scale business plan, covering

• The structure of the maret in Philippines

• aret opportunity and si=ing• Initial set of potential customers and their pro%ling

• egulatory framewor6 restrictions in Philippines covering these two

sectors

• is assessment

• ecommendations for FG opportunity

• ough estimate of investment re/uirements and returns

• oto!usiness oadmap

Project Im'act

*n entry by P7!- could result in a rapid e0pansion of our maret share in

these countries which would drive revenue and pro%t growth

P7L is a new venture and has grown /uicly over the past year. The division

is currently the smallest business unit within PIL, with revenues of a little

over ' illion 5-< in the last %scal. 7ntry into new geographies will have a

powerful impact on the division9s revenue and pro%tability

&eam com'osition

The study is to be conducted by a team (of J !* students) from theIndian -chool of !usiness, &yderabad6 ohali, India and a team (of J !*

students) from *sian Institute of anagement, anila, the Philippines, under

the guidance of a faculty member from each -chool.

The team should have some members with prior e0perience in the

construction6 infrastructure industry. &aving one member with wor

e0perience in the water treatment industry would be immensely helpful.

Team members who have previously wored on maret surveys and entry

strategies will de%nitely be helpful.

esources that ill !e a%aila!le

". *ccess to ey management personnelH. *ccess to the company9s data ban'. 5se of company resources such as oKce space and other incidentals. 8ne company person to attend calls between the teams, at least once

a fortnight

Documents

ELP 070 - Pennar Industries - Philippines