zurin industries

ZURIN INDUSTRIESAIR & COMPRESSORS DIVISION AKSHAY PANDEY 2014003

ANKUR MUKHERJEE 2014007NITIN GAVISHTER 2014ANUJ BHARGAVA 2014138APURV GOSAIN 2014139DIPANJALI BISWAS 2014143

About the company:

Switzerland based industry

Sales office in 23 countries

Sales: 5.2 Billion SFProfit: 426 Million SF

Industrial Plastics, diesel engines, Air and gas

compression and Industrial components

Mainly focuses on design and

development of industrial components

Industries :aerospace, automotive and

transportation vehicles

Product :

Air and gas compressors:Use: Industrial plants

Purpose : Regulating the flow of liquids and gases throughout the manufacturing plants and power stations

Areas of sale: 40% Europe and rest from Asia, Middle East and other countries

Type : Standard or specialty

SUPPLIER

ZURIN

OEMs/Others

Competitive advantage and suppliers:

Competitive advantages: Ability to solve complex

technical problems Product quality Durability

Suppliers:

Heavy dependencies on engineering and development skills of suppliers

Huge time/ R &D to develop products

Issue

Ericsson Metalworks increased price of XK1000 steel by 3 times

1.Fixed price

2.No disclosure of production cost

Zurin’s primary exclusive supplier

Swedish:Ericsson

Transparent pricing

Not enough production capacity to meet Zurin’s demand

French:Gordier

Risks involved

Dumping existing steel producer(Ericsson) and signing with someone else is a very time consuming process

Very few options Ericsson R&D unit is critical to success of Zurin

Recommendations

Negotiate with Ericsson for a linear increase in price of steel(for current pending order)

Zurin can negotiate on price terms by promising a increase in orders for XK1000 and XM5000 from Ericsson

Lobby Gordier board to increase their capacity. If needed, offer special partnership (R&D etc.), long term agreements

Look at proposals of Hiromishi Steel, Viktor Tredzk (long term) Pay Ericsson for their R & D expenditure